UK approves largest budget in school’s history. It comes with tuition increase
The University of Kentucky board of trustees approved the largest budget in the university’s history Friday.
The budget totals $6.8 billion and includes a 2.75% tuition increase for in-state students. It also includes raises for employees and student employees, and creates baseline graduate stipends for graduate student employees.
The budget is 21% larger than last year’s $5.6 billion budget, fueled by growth in UK HealthCare, the acquisition of the King’s Daughters Medical Health System and enrollment growth, said President Eli Capilouto.
“We were created nearly 160 years ago with an essential mission and singular focus — to advance Kentucky — its health, its economy and its quality of life. With this budget, we demonstrate how we are honoring that mission today and how we are preparing to continue to honor our promise to the commonwealth for the future,” Capilouto said Friday.
Tuition increases for 2023-24
Students at the University of Kentucky will see a 2.75% tuition increase for the next school year, the university’s board of trustees voted Friday. Saying he represented UK students, and the majority did not want a tuition increase, outgoing student trustee Andrew Laws was the only board member to vote against the tuition increase.
Tuition and fees for in-state students will increase to $6,606 for the upcoming school year, up $177 from last school year. Out-of-state students will have a tuition and fee increase of 3.5%, with tuition and fees set at $16,703. While tuition is increasing, mandatory fees did not increase for students next year.
The Council on Postsecondary Education sets statewide tuition increase caps for universities. Earlier this year, the council determined that universities cannot increase tuition by more than 5% in the next two years, and cannot increase tuition by more than 3% in a single academic year for in-state students.
UK has increased tuition at an average of 1.7% each year over the last four years, the university said.
UK is anticipating another record-setting class of freshmen, projecting nearly 6,400 first-year students in the fall and the largest-ever enrollment for the university. Also included in the budget is $285 million towards scholarships and grants for students.
Raises for employees, building projects on campus
UK is putting $12.5 million from undesignated general funds toward salary increases and nearly $200 million for health care coverage for employees. Money towards raises has been allocated across departments at UK, with flexibility given to supervisors and managers about how it will be distributed to employees, said Angie Martin, vice president for financial planning and chief budget officer.
Additionally, UK will increase the minimum wage for students enrolled in the Federal Work Study program to $12 an hour this fall. The Office for Student Success will also increase its minimum wage for student employees to the same amount.
For the first time, UK will implement baseline graduate stipends for graduate student employees.
UK has a host of capital projects underway and funded in the budget, including improvements to academic, health care and community facilities.
Capital projects budgeted include a new Health Education Building, which will be the home to UK’s four health care colleges, the expansion of Albert B. Chandler Hospital, and four new health care facilities in and around Lexington. It also includes investment in modernizing current campus facilities, including Memorial Coliseum and the Reynolds Building.