University of Kentucky board approves largest budget in school’s history
The University of Kentucky board of trustees has approved the largest budget in the school’s history.
In total, the budget is $5.6 billion and includes a 2% tuition and mandatory fees increase, more than $17 million in raises for employees and millions for new facilities on campus. The budget is about $537 million larger than it was last year, with much of the growth generated by UK HealthCare.
The board of trustees met on Friday, where it approved the budget for the next school year.
“This budget is an expression of our values and our ambitions,” UK President Eli Capilouto said at the board meeting. “It is a demonstration of faith that we are poised and positioned to advance our state when it needs us most.”
Tuition and fees
Tuition and mandatory fees for in-state undergraduate students will increase to $6,429 per semester for the upcoming school year. That is an increase of $124, up from $6,305 last school year, according to UK.
The Kentucky Council on Postsecondary Education sets tuition increase limits for universities in the state. For the 2021-22 and 2022-23 academic years, tuition cannot increase by more than 3% over those two years, and cannot increase by more than 2% in a single academic year.
UK has increased tuition by an average of 1.6% over the last four years, Capilouto said Friday.
The university is planning for a record-setting class of freshmen this fall of 6,000 students, resulting in nearly $50 million in the budget from tuition and fees. UK has also budgeted nearly $162 million in scholarships and grants for students, up $14 million from what was budgeted last year.
Raises, health care for employees
UK will have $17.3 million available for employee raises next fiscal year. Eligible employees will receive at least a $1,000 raise, but could potentially receive a higher raise, said Angie Martin, UK’s vice president for financial planning and chief budget officer.
“It’s critical to our faculty and staff, and in complete alignment with our strategic plan of supporting our employees,” Martin told the Herald-Leader earlier this month.
The $17.3 million has been allocated proportionally across campus, with flexibility given to supervisors to determine how to best distribute the money for raises, Martin said.
Additionally, employees will again be allowed to carry over their leftover vacation leave. UK has also worked to keep increases in health care costs low: most plans will see no increase in monthly costs, and plans that do see an increase will be between $4 and $12 each month, said Eric Monday, UK’s executive vice president for finance and administration.
Buildings, capital investment
Over the next three years, UK expects to invest $1 billion in its campus infrastructure, Capilouto said. Also included in the budget are several major capital projects, including a new health education facility that will have space for four different colleges.
The building will “significantly increase the number of health professionals who will serve our state,” Capilouto said. The building is estimated to cost $380 million, $250 million of which comes from state bonds.
UK has also budgeted for a new cancer and ambulatory facility to expand UK HealthCare. The building is estimated to cost $450 million and will come from university funds.
UK also received $9 million in the state budget to rebuild the Grain and Forage Center of Excellence in Princeton, which took a direct hit in the December 2021 tornadoes. The center conducts research impacting grain and beef farmers, and was nearly completely destroyed in the tornadoes.