UNIVERSITY OF KENTUCKY

2010-11 Operating Budget Calendar
Fall: Budget development process began with collecting revenue estimates; fixed cost increases; and programmatic budget requests
January 5: 2010 General Assembly convened
Winter/Spring: President’s Cabinet reviewed preliminary incremental revenues and expenses and set priorities; Provost held discussions with
UCAPP
April 15: 2010 General Assembly adjourns without passing budget
April 23: CPE sets 2010-11 tuition and mandatory fees parameters
April 27: Board of Trustees approves 2010-11 tuition and mandatory fees
May 29: General Assembly passes biennial budget in Extraordinary Session
June 8: Board of Trustees considers recommended University budget

Where the money comes from and what it pays for
2010-11 Operating Budget - $2.5 Billion
Undesignated General Funds
Money comes from:
• State appropriations
• Tuition
• Investment income
• Service assessments
Pays for:
• Instruction
• Public service
• Administrative support
• Scholarships
Designated General
Funds
Money comes from:
• UK HealthCare
• County appropriations
• Mandatory fees
• Course and program fees
Pays for:
• Public service
• Instruction
24%
49%

Where the money comes from and what it pays for
2010-11 Operating Budget - $2.5 Billion )
5%
Auxiliary Funds
Money comes from:
• UK Athletics
• Housing
• Dining
• Parking
Pays for:
• Self-supporting auxiliary units pay all their expenses and receive no taxpayer or tuition support
Restricted Funds
Money comes from:
• Research grants and contracts
• Endowment income
• Gifts
• Federal and state student aid
Pays for:
• Research
• Scholarships
• Public service
15%
7%
Fund Balance
Money comes from:
• Savings from prior years
Pays for:
• Capital projects
• Faculty start-up packages
• Pilot programs

UK’s Operating Budget (in billions)
$2,5
$2,47
$2,20
$2,43
$2,07
$2,0
$1,66
$1,84
$1,5
$1,17
$1,26
$1,31
$1,36
$1,48
Since FY 2000-01, UK's operating budget has more than doubled. During the same time period, gross state support has decreased from 25.6% to 12.5%.
$1,0
00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11

2010-11
Budget at a Glance
• Little Change – minor changes since April tuition and fees presentation
• Little Growth - increase of only $38.5 million (1.6 percent) over 2009-10
• Less State Support Again – decrease of $4.4 million from
2009-10 and $28.6 million since December 2007
• Critical Investments – General Education, “Fighting Fund”,
Employee Benefits
• Concern About “What’s Next”

2010-11 Operating Budget Revenue
2009-10 2010-11 Change
Recurring:
• Undesignated General Funds $ 577,073,900 $ 585,952,700 $ 8,878,800
• Designated General Funds
• Auxiliary Funds
• Restricted Funds
1,205,097,800
125,154,500
358,807,300
1,210,977,300
133,591,800
368,876,300
5,879,500
8,437,300
10,069,000
Non-recurring:
• Fund Balances 164,509,100 169,717,100 5,208,000
Total $2,430,642,600 $2,469,115,200 $38,472,600

Commonwealth of Kentucky
2010-12 Budget (HB 1)
State Support for Operations
• 2010-11 o $4.4 million (1.4%) reduction o Includes $17.2 million of federal State Fiscal
Stabilization Funds (SFSF)
• 2011-12 o $3.3 million (1.0%) additional reduction o No SFSF

Kentucky State Budget Reshaped by Cut after Cut*
Percentage Change in State Support for Select Agencies
July 2007 to July 2011
37,9%
35,0%
25,0%
15,0%
5,0%
-5,0%
-15,0%
-9,1% -1,0%
-25,0%
Source: Courier Journal, June 5, 2010
-22,0%
7,7%
30,2%

$340
State Support - net of debt service (in millions)
Original budget
Mid-year cut
Actual = Budget
$335,1
$330
$320
$310
$303.0
$300
$290
$280
$306,3
$280,2
Federal Stimulus Funds
$289.3
$306,5
For FY 2009-10, the state replaced $21.1 million in state appropriations with federal stimulus funds.
For FY 2010-11, the state will replace $17.2 million in state appropriations with federal stimulus funds.

Tuition and Mandatory Fee Revenue and
Net State Support
(actual in millions)
$350
$300
$250
$200
$150
$100
$50
01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10* 10-11*
State support net of debt service and mandated programs. Includes stimulus funds.
*Projected

Undesignated General Funds
Estimated Fixed Cost Increase - FY 2010-11
Personnel:
• Faculty Promotions/Fighting Funds
• Benefits
Operating Expenses:
• Livestock Disease Diagnostic Center
• Student Financial Aid
• Implementation of General Education Curriculum
• Utilities
• Other Operating Expenses
$937,700
7,281,900 $8,219,600
392,000
2,851,000
2,689,200
1,000,000
722,000
Total Fixed Cost Increase $15,873,800

FY 2010-11 Funding Sources - Operating
State Appropriations (1.4% budget cut)
Livestock Disease Diagnostic Center
Tuition Revenue
Other Revenues
Total Source Increment - Operating
($4,395,700)
392,000
14,670,900
(1,788,400)
$8,878,800

FY 2010-11 Funding Gap - Operating
Total Fixed Costs Increases
Total Revenue Decreases
Funding Gap – Operating
$15,873,800
8,878,800
($6,995,000)

Operating Budget Revenue Changes
2007-08 Thru 2010-11
State Support
(Excluding
Earmarks)
Fixed Costs and
Investments
(including Student
Financial Aid)
Tuition and
Other
Revenue
Total Shortfall
FY 2007-08 $ 19,595,700 $ (53,013,000) $ 33,417,300 $ -
FY 2008-09 $ (19,817,500) $ (8,214,500) $ 9,139,300 $ (18,892,700)
FY 2009-10 $ (6,365,400) $ (15,778,500) $ 14,805,200 $ (7,338,800)
FY 2010-11 $ (4,395,700) $ (15,481,800) $ 12,882,500 $ (6,995,000)
FY 2011-12 $ (3,318,500) ?
?
?

Faculty and Staff

One-time Payment Recommendation

Faculty and Staff (excluding UK HealthCare):
 $1,000 one-time payment for eligible faculty and staff earning less than $70,000
 One-time payment will be phased-out for faculty and staff earning $70,000 or more but less than $75,000 (minimum
$200)
 Eligible part-time faculty and staff will receive proportionate amount

Faculty and Staff*
Estimated One-Time Payment
Faculty
Staff
Total
Number
1,770
6,450
8,220
Number of
Recipients Percentage
735 42%
5,975
6,710
93%
82%
Cost
Including
Benefits
$ 750,000
6,600,000
$7,350,000
Source of Funds:
Undesignated General Funds
Other
*Excluding UK HealthCare
$5,450,000
$1,900,000

Commonwealth of Kentucky
2010-12 Budget (HB 1)
Capital Projects – Agency Bond Authorizations
Construct New Housing $30,000,000
Guaranteed Energy Savings Performance Contract $25,000,000
Upgrade Student Center Infrastructure
Dentistry Clinical Projects
$17,805,000
$10,990,000
Construct Data Center
Purchase Pollution Controls
Construct Building Elevator Systems
$40,000,000
$22,600,000
$5,000,000

2010-11 Capital Budget
• The 2010-11 Capital Budget includes: o 18 active projects totaling $845 million o 28 potential projects totaling $409 million
• All projects have legislative authorization.
• UK Board of Trustees will continue to review and approve capital projects prior to initiation.

UNIVERSITY OF KENTUCKY