Contact: Monty Jones, (512) 499-4363

Date: August 7, 2003

UT System News Release

$7.8 billion operating budget approved by Board of Regents

SAN ANTONIO - A $7.8 billion operating budget for fiscal year 2004 for the 15-campus University of Texas System was approved Thursday (August 7) by the Board of Regents.

Expenditures in the new budget are projected to be 7.6 percent higher than in FY 2003, with most of the growth resulting from increases in health care services and federally sponsored research. The new fiscal year begins September 1.

The budget reflects a 6 percent cut in general revenue appropriations (state tax dollars) as well as a decline of 3.9 percent in investment income. General revenue also decreased as a percent of total expenditures from 23.4 percent in FY 2003 to 20.4 percent in FY 2004.

Income from health care activities increased 19.6 percent, to $2.5 billion. Sponsored research and services (the majority of which is funded through federal grants and contracts) increased 10.9 percent, to $1.8 billion.

Campus budgets reflect a statutory increase in tuition totaling $4 per semester hour passed by the Legislature. No tuition increases under the newly approved tuition deregulation measure are included. Several U. T. System campuses are expected this fall to ask the Board of Regents for tuition increases effective in January.

Of the total expenditures, $4.5 billion (58.1 percent) is for personnel costs (salaries and benefits); $2.8 billion (36.2 percent) is for maintenance, operations, and equipment; and $447 million (5.7 percent) is for capital outlay and debt service.

The System's six health science institutions continue to account for the majority of the total operating budget (about 65 percent of the total of $7.8 billion). M. D. Anderson Cancer Center has the largest budget of the System's 15 institutions, followed by U. T. Austin and the U. T. Medical Branch at Galveston.

The portion of the budget for the U. T. System administration funded from state appropriations (mostly from public endowment income that goes into the Available University Fund) declined 5.7 percent, from $30.7 million to $28.9 million. These expenditures represent 0.37 percent of the total System-wide expenditures, down from 0.42 percent in FY 2003.

The number of full-time-equivalent employees is down by 26.9 for that portion of the System administration budget, as a result of a hiring freeze implemented at the System last November as well as shifting some positions to self-supporting operations. The System is now 16.1 FTE employees below the statutory limit set by the Legislature.

The hiring freeze will continue at the System administration in the new fiscal year, but each campus will decide what to do locally.

The System budget includes merit raises averaging 2 percent, effective in January.

FY 2004 Budget presentation to the Board (PowerPoint || PDF)

Recent budget news

FY 2003 Budget News (from the August 2002 meeting of the Board)

Other news and presentations from August 2003 meeting