State and Tuition Fund The State and Tuition Fund represents 58 percent of the total operating budget. Because it is where most of the core instruction and administrative support occurs, it is the most often- discussed group of funds on campus. As discussed already, the main revenue sources are net tuition revenue and the state allotment, which are nearly equal in size. Of course, wages and benefits account for 70 percent of all operating expenses, and so employee FTE and wage-and- benefit increases have the greatest impact on total expenses. State Allotment - State funding had certainly stabilized since the dramatic swings following the Great Recession and with advent of the new tuition law, dubbed the “College Affordability Program (CAP).” The new policy reduced tuition by 20 percent in FY16 and FY17 but backfilled most of the lost revenue. In FY22 we expect over $12M in backfilled tuition from the state, representing 17 percent of the total state allotment. For 2022 the state allotment remains relatively flat compared to FY21, with a slight increase for specific policy initiatives. As has been the case since the CAP went into effect in FY16, state policy is to fund only about half of the compensation increases authorized in the biennium. The state funded half of the increase lawmakers approved from the state general fund and directed universities to cover the balance with tuition—which by law cannot increase fast enough to cover state-approved wage increases. Tuition is capped at the rate of historic wage inflation (currently 2.8 percent) and wages and benefits have been increasing at 3-4 percent until FY21. The university has had to manage cost increases and grow to overcome the deficit created by the state policy.
Following is a chart showing historical state funding, and the proportionate share of total revenue over time.
State Allotment (Operating Funds) (000's) FY17
FY19
FY20
FY21
FY22
FY18
Net Tuition State Allotment
54,009 58,565
56,250 60,845
57,402 63,356
59,376 68,718
56,718 71,708
58,541 72,694
Total
112,574 117,095 120,757 128,093 128,426 131,235
% of Total Revenue
52.0% 52.0% 52.5% 53.6% 55.8% 55.4%
State Allotment per Capita
5,163
5,255
5,446
5,875
6,434
6,794
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