About the Budget

The annual budget of The University of Texas at Austin is roughly $3 billion.

For a more detailed view, download A Primer on The University Budget for Fiscal Year 2018-19 »

22% - Tuition

Tuition covers less than half of the cost of a student's education. In the past, it was set by the Legislature but now is set by the UT System Board of Regents. UT’s tuition ranks 6th among public universities in Texas. Due to extensive scholarships, fewer than half of UT students pay full tuition, and significant financial support comes in the form of grants and scholarships that do not need to be repaid.

24% Public Support

11% - State Support

This amount is determined every other year during each legislative session. There are two categories within this: General Appropriations constitute the main flow of recurring funding and is based on formulas that include student enrollment. The other category is known as Non-Formula Items and covers funding for unique properties such as the McDonald Observatory in the Davis Mountains and the Marine Science Institute in Port Aransas. These funds must be requested, justified and approved during each legislative session.

12% - State Endowment

In 1839, when Texas was still a republic, its congress set aside 221,400 acres to fund higher education. In the state’s constitution of 1876, this land allocation was increased and dedicated to The University of Texas. Today this land encompasses 2.1 million acres of West Texas. This land is then leased to oil and gas companies, cattle ranchers and wind farms to generate income. A portion of this income is ultimately distributed to the UT System and the A&M System, 2/3 and 1/3 respectively, including for the support and maintenance of UT Austin. The exact amount that can be distributed — known as the Available University Fund — is set by the UT System Board of Regents.

1% - County Support

Property owners of Travis County also contribute to the university in the form of property tax to support the creation of the Dell Medical School. This tax of $0.129 per $100 valuation, approved by voters in a 2012 referendum, currently generates $35 million a year. This funding goes through the county’s hospital district, Central Health. The medical school is also funded by the state, as described above, and by philanthropy.

9% - Gifts

About $281 million from tens of thousands of alumni, friends, foundations, and corporations provide a critical margin of excellence for the university every year. The university may collect more than $281 million in gift commitments annually including long-term pledges, but this amount reflects continuing gift distributions over time. Regardless of the level of funding the university receives from the state, philanthropy will play an ever-larger role in UT’s well-being.

18% - Grants and Contracts

UT brings in more than $560 million a year in research grants and contracts. In 2017, it won the largest contract in its history when the U.S. Navy awarded Applied Research Laboratories at UT a contract worth as much as $1.1 billion over ten years to improve national security. The National Science Foundation has awarded UT more than $100 million for a wide variety of projects, most recently the development of a series of open-science supercomputers.

16% - Self-Supporting Units

Self-supporting units, also known as “Auxiliary Enterprises,” fund themselves entirely, and therefore are not supported by tuition or public funds. These areas include Athletics, Housing and Dining Services, The Erwin Center, Parking and Transportation, and Recreational Sports. Intercollegiate Athletics, not only supports itself but makes an annual donation to support UT academics.

5% - Enhanced Academic Experience

Beyond the core academic and research programs, the university offers enhanced experiences through programs like Executive MBA, Study Abroad, International Office Programs and the UT Elementary School. These programs generate programmatic tuition and fees that offset their costs, and a portion of these funds pay for the central support provided by the institution.

3% - Indirect Cost on Sponsored Projects

Externally funded research and other sponsored projects generate funding for the indirect costs of administering these projects.

3% - Other Funding

The remainder of funding in the university’s budget includes things like intellectual property income, administrative fees from self-supporting units, and balances carried forward from previous fiscal years.

51% - Salaries and Benefits

As in virtually every organization, the largest cost is people. This is especially true in higher education, where everything from the quality of teaching and research to the institution’s reputation (which bestows much of a degree’s value) is a function of the faculty and the staff that supports students. Faculty, research and assistant instructor salaries make up 39% of this slice, while staff salaries make up 37%. The sharply increasing cost of health insurance in recent years has also driven this cost up significantly. Benefits currently make up 24% of this slice.

10% - Scholarships & Financial Aid

The university awards nearly $323 million a year in scholarships based on merit and need. Major categories of university-wide scholarships include Endowed Scholarships, the Presidential Scholars Program, the University Leadership Network, Undergraduate Awards, and Study Abroad Scholarships. In addition, there are numerous scholarships available through UT’s 18 colleges and schools. The Office of Financial Aid administers many scholarships as well.

12% - Academics and Research Development

The university invests in its academic and research priorities with seed money for starting up new programs. In addition, this part of university expenditures includes our investment in resources for the institution’s libraries.

13% - University Operating Expenses

The University of Texas at Austin currently comprises a main campus of more than 460 acres, featuring historic buildings dating back to the 19th century, state-of-the-art facilities, and picturesque grounds. All require maintenance, custodial services, equipment, safety and security, and upkeep. Among the hundreds of functions making up operations are administrative services provided through the President’s Office, Vice President and Dean of Students, Executive Vice President and Provost, Senior Vice President and Chief Financial Officer, Vice President for Research, and Vice President for Diversity and Community Engagement. In addition to the main campus, UT is also the Pickle Research Campus in North Austin, the McDonald Observatory in the Davis Mountains, the Marine Science Institute in Port Aransas, the Ladybird Johnson Wildflower Center in South Austin, and other scientific, historic and cultural treasures across the state. This part of the budget is significant and still does not begin to account for the funding needed to keep up with deferred maintenance of UT's historic properties and the basic administrative and operational needs to support the university’s mission.

7% - Self-Supporting and Auxiliary Unit Operating Expenses

The university’s auxiliary units (e.g., Athletics, Housing and Dining Services, etc.) manage facilities that need maintenance, custodial services, equipment, safety and security, and upkeep, as well. Some of the funds they contribute to the institution’s overall budget are used for these purposes.

7% - Facilities - Capital, Debt, and Utilities

As the university grows to meet academic and research needs on a global scale, new facilities and renovations become necessary. This portion of the budget also funds utilities for all of UT Austin’s campuses.