Budget at a Glance
Planning for the future
The university’s strategic plan, The UK-Purpose (Plan for Unprecedented Research, Purposeful and Optimal Service and Education) is framed by five principles:
Putting Students First: They are why we are here. Whether it is maintaining and enhancing a modern curriculum that prepares all our students for success, providing appropriate support for graduate students or ensuring that doctoral students start and complete their programs successfully, we must put students first.
Taking Care of Our People: We will only accomplish our mission of advancing Kentucky when our people — those who work with us and those we serve — are cared for holistically: their health, their safety, their well-being and their ability to prosper.
Inspiring Ingenuity: How do we embed innovation and discovery into every aspect of our institution? The breadth and depth of programming and offerings available on one campus makes us distinctive in higher education. How do we incentivize the spark of ingenuity throughout our campus?
Ensuring Greater Trust, Transparency and Accountability: We are Kentucky’s institution. And that mantle holds with it heightened responsibilities of accountability and transparency. But we need to do more to instill a sense of trust in each other in everything that we do.
Bringing Together Many People, One Community: UK is among the most diverse communities in the Commonwealth. Our students will enter a world riven by divisions, but more interdependent than ever before. How do we model unity amidst diversity for our state?
As used for many years and in alignment with the strategic plan, the following principles guided the development of the Fiscal Year (FY) 2023-24 budget:
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
Budget reaches $8.4 billion
The president is responsible for the preparation of an annual budget for consideration and approval by the Board of Trustees (Board). The consolidated budget is generally presented to the Board in June, preceding the start of the fiscal year (July 1 through June 30). Budget revisions may be recommended to, and considered by, the Board throughout the fiscal year.
The University’s recommended Fiscal Year 2024-25 consolidated operating budget totals $8,369,418,200, an increase of $1,589,095,300 (23.4 percent) over the prior fiscal year original budget. Over the past 10 years, the University’s original operating budget will have increased 178.0 percent, from $3.0 billion to $8.4 billion.
Each of the University’s numerous activities is included in one of three enterprises. The Higher Education enterprise includes the typical activities related to the University’s academic, research and public service missions such as instruction, student support services, grants and contracts, and the cooperative extension service.
The Athletics enterprise is considered an auxiliary and includes all activities related to intercollegiate athletics. An auxiliary is generally self-supporting —earning sufficient revenues by charging fees to fully support its activities. The FY 2024-25 budget for the UK HealthCare - Hospital System includes the Albert B. Chandler Hospital, Eastern State Hospital, Kentucky Children’s Hospital, St. Clarie HealthCare, UK Good Samaritan Hospital, and UK King’s Daughters Health System.
Each enterprise manages its financial resources, including budget processes, to effectively and efficiently carry out its activities. The budget methods may, accordingly, vary by enterprise.
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 as Undesignated General Funds or Designated General Funds.
Undesignated General Funds
Undesignated General Funds (UDGF) include state appropriations, student tuition, and other income. These revenues are received and managed centrally with the associated expenditure authority allocated to colleges and departments. For FY 2024-25, UDGF comprise 13.0 percent of the University’s total budget.
Designated General Funds
Designated General Funds (DGF) are received directly by the colleges, departments and enterprises that receive or earn the revenue. Units use the funds in accordance with the stated purpose of the funds and the units’ missions. For FY 2024-25, DGF comprise 68.5 percent of the University’s total budget. At a projected budget of $5.1 billion, the University’s largest revenue source, classified as DGF, is from the UK HealthCare (UKHC) Hospital System. The FY 2024-25 budget reflects a $1.1 billion increase in the UKHC Hospital System revenues partially due to the pending acquisition of the St. Claire Medical Center which is anticipated to occur on July 1, 2024.
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. UK Athletics, UK Campus Housing, UK Dining, Transportation Services, service centers and recharge operations generate the majority of Auxiliary Funds. For FY 2024-25, Auxiliary Funds comprise 3.3 percent of the University’s consolidated budget.
Restricted Funds
Restricted Funds are accepted by the University with explicit constraints imposed by external entities or donors. The primary sources of Restricted Funds are sponsored projects such as grants and contracts, gifts that must be spent in support of specific programs, and federal and state student financial aid. 2.
The University has a legal obligation to abide by the restrictions. For FY 2024-25, Restricted Funds constitute 7.7 percent of the University’s total budget.
Fund Balances
The University’s operating budget includes expenditure authority for prior-year unspent funds (i.e., Fund Balances) accumulated within each of the primary fund groups (UDGF, DGF, Auxiliary Funds and Restricted Funds). Fund balances are considered non- recurring or one-time funds. For FY 2024-25, Fund Balances account for 7.5 percent of the University’s consolidated budget.