Budget at a Glance

 

Consolidated Budget

The President is responsible for the preparation of an annual budget for consideration and approval by the Board of Trustees (Board). A balanced budget is generally recommended to the Board in June, preceding the start of the fiscal year (July 1 through June 30). Budget revisions are considered by the Board throughout the fiscal year. 
The annual budget only includes Current Funds (excludes Endowed Funds, Plant Funds and Loan Funds) and establishes the operating expenditure authority for each area, college and department. The university’s executive leadership (President, Provost, Executive Vice President for Finance and Administration and Executive Vice President for Health Affairs) is responsible for the programmatic and fiscal management of the various areas of the university, including preparing, deploying and managing the operating budgets. 
The Fiscal Year (FY) 2021-22 budget was developed using principles in place for many years:


Enduring Budget Development Principles

  • Student access and affordability 
  • Competitive pay for faculty and staff 
  • Strategically plan to prevent across-the-board cuts and  maintain and enhance academic quality
  • Building a community of belonging

The university’s recommended Fiscal Year (FY) 2021-22 consolidated operating budget totals $5,078,502,700, an increase of  $649,113,200 (14.6 percent) over the prior fiscal year original budget. Over the last ten years, the university’s original operating budget will have increased 89.9 percent from $2.7 billion to $5.1 billion.

 

Revenues


The University’s revenues and fund balances are shown grouped into eight broad categories. Budgeted revenues from patient care, including the Hospital System and Clinical Services, show the greatest percentage change over the past ten years, followed by Fund Balances and Tuition and Fees. These increases are primarily due to more volume (number of patients served and students enrolled) and higher prices.

 

Operating Budget by Fund Group


General Funds
General Funds are unrestricted resources that comprise the majority of the university’s operating budget. The activities supported with General Funds constitute the core instructional, service, student support and administrative functions of the university. General Funds are further classified, for management purposes, as Undesignated General Funds or Designated General Funds.


Undesignated General Funds

Undesignated General Funds (UGF) include state appropriations, student tuition and other income. These revenues are received and managed centrally and the associated expenditure authority is allocated to the colleges and departments as base support for education, research and creative work, and service. The budget decisions related to the university’s educational and general activities are based on the availability of UGF. For FY 2021-22, UGF comprise 16.6 percent of the university’s total budget – a decrease of 1.6 percentage points from the FY 2020-21 original budget.


Designated General Funds

Designated General Funds (DGF) are received directly by the colleges and departments that generate or earn the income. The colleges and departments use the funds in accordance with their missions and to maintain self-sustaining activities. For FY 2021-22, DGF comprise 61.8 percent of the university’s total budget – an increase of 3.1 percentage points from the FY 2020-21 original budget.


 

Auxiliary Funds

Auxiliary Funds are generated from the sale of goods and services to faculty, staff, students and the community. Revenues are expected to cover the operating expenses of each auxiliary enterprise. For FY 2021-22, Auxiliary Funds comprise 4.7 percent of the university’s total budget – about the same percentage as the FY 2020-21 original budget.


Restricted Funds

Restricted Funds are accepted by the university with explicit restrictions imposed by an external entity or donor. The primary sources of Restricted Funds are sponsored projects, such as grants and contracts; gifts that must be spent in support of a specific program; and federal and state student financial aid. The university has a legal obligation to abide by the fund restrictions. For FY 2021-22, Restricted Funds constitute 9.3 percent of the university’s total budget – a decrease of 1.0 percentage point from the FY 2020-21 original budget.


Fund Balances

The university’s operating budget includes expenditure authority for prior-year unspent funds (i.e., Fund Balances) accumulated from the fund groups (General Funds, Auxiliary Funds and Restricted Funds). Fund balances are considered non-recurring in that they may or may not be replenished. For FY 2021-22, Fund Balances account for 7.6 percent of the university’s total budget – a decrease of 0.4 percentage point from the FY 2020-21 original budget.