Operating Budget Funding Sources
State Appropriations - General Revenue
Formula Funding, Special Items, Benefit Cost Sharing
THECB Transfers TX Grant, Work-study
Statutory Tuition & Lab Fees
State Funds
Also referred to as
E&G: Educational
& General budgets
General Revenue-Dedicated
(considered a revenue source for formula funding)
Designated Tuition, Fees & Misc. Revenue
F&A - Indirect Cost Recovery
Facilities & Administrative Overhead
Auxiliary Enterprise Funds
Athletics, Bookstore, Recreation Center,
University Center, Food Service, Housing, Parking
Restricted Funds
Gifts, Financial Aid & Grants/Contracts
Plant Funds
Buildings and Capital Improvements
Designated
Funds
aka Local funds
Operating Budget Fiscal Year 2016
Revenue Sources $550.0 Million
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State Funds - Statutory Tuition
 Rates established by Texas Education Code 54.051
Rate has remained at $50/SCH since Fall 2005 for resident undergraduate students
 Graduate students pay 2 times undergraduate rate, referred to as Graduate
Incremental Tuition
Rate has remained at $100/SCH since Fall 2005
 Non-resident students pay rates equal to the average non-resident tuition
at the 5 most populous U.S. states
Rates are determined by The Higher Education Coordinating Board (THECB) and
listed under Texas Ed Code §54.051(d). The current non-resident student rate is
$440/SCH for Undergraduate and $880/SCH for Graduate.
 Statutory Tuition is a revenue source for the Instructional & Operation (I/O)
Formula, an amount estimated in the General Appropriations Act
 Institution bears the impact of any over or under collection of budgeted
revenue – worse for campuses with declined enrollment
Designated Funds - Designated Tuition
Back in 2003, the legislature ‘deregulated’ designated
tuition rates to counteract declining state revenue.
 Rates are set by the UT System Board of Regents
FY 2014
FY2015
FY2016
U/G – Resident
$149.51
$149.51
$149.51
U/G – Non Resident
$152.65
$164.50
$164.50
Graduate – Resident
$159.50
$159.50
$159.50
Graduate – Non Resident
$159.50
$177.20
$177.20
Note: Reflects updated presentation based on non-resident rate increase
 Rate has remained constant for past 3 years for resident students.
 Provides a source of revenue in 2nd year of the biennium to fund
merit for retaining top faculty and staff; providing scholarships (i.e.
Presidential scholarships) and Strategic Initiatives (i.e. GRIP), etc.
Operating Budget Fiscal Year 2016
Total Mandatory Fees= $71.8 Million
Auxiliary Fees=$27.3 million
Designated Fees=$44.5 million
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NACUBO Expenditure Classifications (1 of 2)
Instruction & Academic Support
Expenditures for salaries, wages, and all other costs related to those engaged in the teaching
function including the operating costs of instructional departments. This would include the salaries
of faculty, teaching assistants, lecturers and teaching equipment. Library materials and related
salaries are also included.
Student Services
Expenditures for offices of admissions and of the registrar and activities with the primary purpose
of contributing to students’ emotional and physical well-being and intellectual, cultural, and social
development outside the context of the formal instruction program.
Institutional Support
Expenditures for central activities concerned with administration and long-range planning for the
entire institution. Expenditures related to:
• Executive direction, planning, programming, and legal operations
• Activities to maintain relations with the community, alumni, or other constituents;
development and fund raising
• Fiscal operations (accounting office, financial services, budget office)
• Activities related to general administrative operations and services (human resources
office, purchasing office, etc)
NACUBO Expenditure Classifications (2 of 2)
O&M of Plant
Expenditures of current operating funds for the operation and maintenance of the physical plant.
This includes all expenditures for operations established to provide services and maintenance
related to grounds and facilities. Also included are utilities, fire protection, property insurance, and
similar items.
• Campus Police
• Environmental Health & Safety
• Facilities
Debt Service
Interest and principal payments from borrowed funds for Capital Projects approved by the Board of
Regents such as construction of a building or renovation of existing facilities.
Capital Outlay
Acquisition of a long-lived assets.
Operating Budget Fiscal Year 2016
Expenditures $550.0 Million
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Uses of Discretionary Funds
 Faculty hiring and retention of top faculty; promotion & tenure;
Instructional Technology
 Student Success Initiatives such as Graduation Improvement Plan,
Graduate Student Scholarly Activities
 Instructional Support for additional sections and courses (not covered by
fees collected)
 Campus Police staffing and security related initiatives, such as Early Alert
System
 Expansion of Annual Giving Call Center, Library, New Classroom Space
 Research core facilities and cloud computing
 Research related to promote access, advancement and excellence in
Undergraduate research and scholarly activities
 Scholarships, Fellowships & Financial Aid including Presidential
Scholarships, Graduate Scholarship Program, Transfer Scholarships, etc.
 Operations & Maintenance of Buildings including utilities
 Payment of debt related to new and existing buildings
 Technology, software and related Infrastructure to support operations
and secure data
 Personnel and Departmental operating expenses
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