jay blanton

UK Budget Tops $3 Billion for First Time in History

Published: Jun 10, 2014

LEXINGTON, Ky. (June 10, 2014) — Fueled by continued growth in health care and student enrollment, the University of Kentucky's budget for 2014-2015 is expected to exceed $3 billion for the first time ever, President Eli Capilouto announced Tuesday.

 

At the same time, the percentage of the university's budget funded by the state will, for the first time, fall below 10 percent, to about 9.3 percent — a reflection, Capilouto said, of the growth of other revenues, even as state support has declined by about $55 million on a recurring basis since 2008.

           

"We are growing as an institution because the best and brightest students in the region, along with their families, see UK as the right investment for their futures," Capilouto said. "And, most significantly, we have a health-care enterprise that is the region's source for the highest-quality care in the cases where the need is most acute. With the leadership of the Board of Trustees, we are charting an aggressive path toward a bright future, but we still need the state as a partner in that journey, if we are to honor our mission as the source of answers to the Commonwealth's most intractable challenges."

 

“This budget reflects the fact that the institution’s resources are going directly to our top priorities — investing in the mission of the University of Kentucky to provide the best education, research, service and health care for the Commonwealth we serve,” said Britt Brockman, chair of the UK Board of Trustees. “It also reflects that through the leadership of our board and President Capilouto, and the efforts of donors, partners and alumni, we are finding innovative and creative ways to fund our future. However, we still need the partnership of the Commonwealth to continue to make progress in creating the educational and research environment necessary to achieve our ambitions and move Kentucky forward.”

 

Even as revenue sources have shifted in recent years, Capilouto said that state funds continue to be of vital importance to the university’s academic enterprise — representing almost 50 percent of the General Fund budget for colleges and libraries.

 

The consolidated budget — being considered Tuesday by the UK Board of Trustees — is expected to increase about $300 million over 2013-2014 and to have doubled since 2004-2005, university officials said. The growth from last year — and over the last decade — is largely the result of three factors, Capilouto told trustees:

 

  • Growth in the student population over the last decade from 26,545 to 29,385. The last three years UK has experienced record first-year classes, and this coming year the university is budgeting for a record 4,800 first-year students.
  • At the same time, the percentage of out-of-state students has increased from about 25 percent among first-year students to more than 30 percent last year.
     
  • A nearly $175 million increase in revenues from last year for the UK HealthCare system — from $987.8 million to more than $1.1 billion, a 17.6 percent increase. In the last 10 years, UK HealthCare revenues have grown to more than $1 billion from about $300 million as patient volumes have nearly doubled.

 

In fact, UK HealthCare now accounts for about 40 percent of the university's budget, up from 24 percent just a decade ago. A decade ago, tuition and fees represented about 12.5 percent of the university's budget; this coming year that figure will have increased slightly, to 14.3 percent. However, as state support has declined, the university has relied more heavily on tuition and fees, which this coming year will represent about $432 million of the institution's budget, while state support is about $280 million. Ten years ago, state support accounted for $296 million of the university's budget while tuition and fees were about $186 million.

 

Other key elements of the proposed budget include:

 

  • A capital budget of active construction projects totaling about $1.1 billion. The 27 projects include the continued fit-out of Chandler Hospital, the Gatton College of Business and Economics, Commonwealth Stadium and the new Academic Science Building, about two-thirds of which is being funded by UK Athletics.
  • Capilouto noted that even with the large amount of construction occurring, the level of debt service as a percentage of the university's budget remains small and is, in fact, declining this coming year, from 3.33 percent to 3.23 percent. "It underscores the strong financial management of the institution and the capacity to grow to meet the needs of the state, particularly by adding more research space, which we increasingly need," Capilouto said.
  • A merit salary pool of 2 percent for faculty and staff, a continuation of salary increases, which Capilouto and the Board of Trustees have indicated as a top priority in retaining top teachers, researchers and staff. This budget would mark the first time since 2007-08 that campus employees will have received merit salary increases two years in a row. Last year, the university funded a 5 percent merit pool.
  • UK will continue to hold the cost on employee premiums for health benefits.  Most health plans will increase by only 2 percent.

 

"We are growing even in the midst of what remain challenging times economically," Capilouto said. "That is a direct result of our people — the faculty, staff and students who are transforming UK into one of the top public residential research campuses in America. Importantly, we are funding much of that growth through our resourcefulness and the generosity of donors who know how special this place is and who know the return on investment is high.

 

But even our own internal capacity, as significant as it is, has limits. To take the next step, to grow the research capacity we need for both faculty and students, will require additional investment with — and partnership from — the state. We can and will be making that case strongly over the next several months. We believe — we know — we can show the investment will more than pay off for the Commonwealth we serve."

 

The budget presentation made to the UK Board of Trustees is attached as a PowerPoint below or available here.

 

front_gate_flowers.jpg
File Downloads
October
 
 
 
1
Internship Info Session
LNFS Presents: Dallas Buyers Club
College of Law Welcomes Trevor Potter
Wed
2
Dancing at Lughnasa
LNFS Presents: Notes on Marie Menken
LNFS Presents: Edge of Tomorrow
UK Jazz Ensemble/ UK Lab Band
Earth & Environmental Science Student Open House
"Nerd Night" Exhibit and Concert
"Anne Braden: Southern Patriot" Film Screening and Discussion
Thu
3
Dancing at Lughnasa
LNFS Presents: My Neighbor Totoro
LNFS Presents: (500) Days of Summer
Men's Soccer vs. Old Dominion
Kentucky Volleyball vs. Alabama
Fri
4
Dancing at Lughnasa
Kentucky Football vs. South Carolina
Free Saturday Swing Dance Lessons
Rock Climbing @ Red River Gorge
Cross Cultural Workshop 2014
Swing Dancing!
Sat
5
Dancing at Lughnasa
Cross Cultural Workshop 2014
UK Children's Hospital/Birthing Center Annual Perinatal Loss "Walk To Remember"
Kentucky Volleyball vs. Texas A&M
Sun
6
Dancing at Lughnasa
Murals of Baltimore
Resumes and Cover Letters
Mon
7
Dancing at Lughnasa
Murals of Baltimore
Networking and Job Search
UK Choristers
Rock Star Professionalism Series
Stillness in Motion: The Essence of Symmetry - presented by Dr. Carl Lee, Mathematics
Tue
8
Dancing at Lughnasa
Murals of Baltimore
LNFS Presents: Night of the Living Dead
UK Law Day
Wed
9
Dancing at Lughnasa
Murals of Baltimore
LNFS Presents: Dawn of the Planet of the Apes
Mark Berry, Guest Percussion Recital
National Depression Screening Day
LNFS Presents: Torch Song Trilogy
Thu
10
Dancing at Lughnasa
LNFS Presents: Shut Up and Play the Hits
LNFS Presents: Watchmen
KLJ Data Privacy Symposium
Family Weekend Check-in
Big Blue Pantry Food Drive #1
Kentucky Women's Soccer vs. South Carolina
Family Weekend: Derek Hughes
Fri
11
Dancing at Lughnasa
Kentucky Football vs. ULM
Free Saturday Swing Dance Lessons
UK International Tent/ Tailgate Party
CT Surgery Symposium: Advances in the Surgical Management of Cardiothoracic Diseases:
Family Weekend Tent Party
Sat
12
Dancing at Lughnasa
DNT 101: A Taste of the Kentucky Doughnut Trail
Big Blue Pantry Food Drive #2
Kentucky Volleyball vs. Auburn
Sunday Lunch at Historic Spindletop Hall
Men's Soccer vs. Marshall
Sun
13
 
Mon
14
Job Club - Social Media and Your Career
Massage on the Go
Tue
15
LNFS Presents: The Last Samurai
UK Symphony Band Concert
Women's Forum Conference 2014
#TrendingTopics: Pornography vs. Morality
Wed
16
Career Assessment Workshop
LNFS Presents: The Tree of Life
LNFS Presents: Guardians of the Galaxy
UK Wind Symphony
Thu
17
LNFS Presents: Princess Mononoke
LNFS Presents: The Hitchhiker's Guide to the Galaxy
Kentucky Women's Soccer vs. Ole Miss
Berlin Philharmonic Wind Quintet
Fri
18
Paint the Town Blue
Free Kaplan Entrance Practice Exams
4th Annual Big Blue Soccer Tournament
Men's Soccer vs. New Mexico
Swing Dancing and Costumes?
Sat
19
Paint the Town Blue
UK Men's Chorus and acoUstiKats
Jazz Spectacular
UK Student Pajama Party
Kentucky Volleyball vs. LSU
Kentucky Women's Soccer vs. Florida
Sun
20
Paint the Town Blue
Midterm of 2014 Fall Semester
Returning to Work and Breastfeeding
Open Access Week Kickoff Event (Webcast)
Grad School 101
Royalty Showcase
Mon
21
Graduate and Professional School Prep Week: Preparing for Law School
Graduate and Professional School Prep Week: Grad School Panel: Surviving Your 1st Year
Film & Panel Discussion: Be Like Others
Graduate and Professional School Showcase
Your Publication, Your Choice: Choosing the Right Open Access Journal
Graduate and Professional School Prep Week
Graduate and Professional School Prep Week
Kitty Karnival
Tue
22
Study Tips for Medical School
LNFS Presents: Eternal Sunshine of the Spotless Mind
Thank-A-Donor Day
Campus Sustainability Day
Electronic Thesis and Dissertation Information Session
Getting Into Medical School
Wed
23
Writing a Winning Personal Statement
Career Assessment Workshop
LNFS Presents: Marimbas From Hell
LNFS Presents: The Fault in Our Stars
Generation Open: Researchers' Roles in the Age of Openness
Homecoming Street Fair
Thu
24
LNFS Presents: Kiki's Delivery Service
LNFS Presents: The Secret Life of Walter Mitty
"see blue." Day at Keeneland
Peanut Butter Drive
Pumpkin Carving Tournament
Fri
25
Kentucky Football vs. Mississippi State
Free Saturday Swing Dance Lessons
Sat
26
UK Women's Choir and Paws and Listen
Bill Cooper Faculty Recital
What Makes You "YOU: with Brett T. Spear
Sun
27
UK Trumpet Ensemble
Undergraduate Research Information Session "How to Find A Mentor"
Kentucky Men's Basketball Blue/White Scrimmage
Mon
28
Job Club - How To Get A Job at UK: Updates on IES Applicant Tracking System
Common Reading Experience Author Lecture: Presenting Ishmael Beah
Screening of the documentary Teached
Tue
29
Internship Info Session
LNFS Presents: The Shining
Pinterest Party
UK Lab Safety Fair
Leadership Assessment
"see boo." Halloween Party
Society for the Promotion of Undergraduate Research (SPUR) Meeting
#UKEDTALKS: Design Thinking with Dr. John Nash
Kentucky Volleyball vs. Tennessee
Wed
30
Career Assessment Workshop
LNFS Presents: Lucy
Film Viewing and Discussion of The Other Boleyn Girl
LNFS Presents: Papirosen
Kentucky Women's Soccer vs. Alabama
Thu
31
LNFS Presents: ParaNorman
LNFS Presents: Carrie
All Hallow's Eve Concert (UK Symphony Orchestra)
Work-Life Retirement Conference
PEIK Seminar: Jim Rogers
Fri
 
Oct 30
Career Assessment Workshop 10/30/2014
Reset Page