Regents approve new budget with emphasis on serving more students and patients, conducting more research

In unanimous support of the 14 UT institutions’ plans to serve more students, provide more health care and increase research activities, the UT System Board of Regents authorized a $21.1 billion expense budget for fiscal year 2020.

The new budget takes effect Sept. 1 and represents an increase of almost 7.4 percent, or $1.4 billion, over the previous fiscal year. Budgeted expenses will include $6.7 billion for UT’s eight academic institutions and $14 billion for its six health institutions.

The UT System is one of the largest systems of higher education in the nation, educating nearly 240,000 students and awarding more than one-third of the state’s undergraduate degrees and more than half of its health professional degrees annually. UT institutions produced more than 62,000 graduates in the 2017-18 academic year, an increase of almost 35 percent over the last five years.

The UT health enterprise accounts for two-thirds of the overall UT System budget and provides medical education, research and extensive clinical care across the state. Collectively, UT-owned and affiliated hospitals and clinics provided more than 8.2 million outpatient visits and 1.6 million hospital days last year. 

The UT System is ranked No. 1 in Texas and No. 2 in the nation in federal research expenditures. Moreover, Reuters consistently ranks the UT System among the top 10 “World’s Most Innovative Universities” as a result of life-changing research and invention of new technologies across its institutions. 

While the budget to support the educational, research and clinical missions of UT institutions will increase, the operating budget and personnel count at the UT System Administration will decrease significantly. The FY 2020 systemwide operations budget will be reduced by 9 percent and fund 107 fewer positions.

“The impact of UT institutions on the people of Texas and beyond is extraordinary and growing,” Board of Regents Chairman Kevin Eltife said. “The board is dedicated to advancing our institutions with resources necessary to serve more Texans, whether it’s increasing access to a top-quality education and world-class health care or expanding capacity to conduct life-changing research. And, by identifying efficiencies and cost-savings opportunities at the UT System Administration, we are able to pass along those savings to campuses to directly benefit students. We are firmly committed to ensuring that Texans get the most for their investments in this exceptional university system.”

Eltife thanked Chancellor James B. Milliken and the System’s administrative leadership for developing a budget that advances the Regents’ goals of maximizing investment in education, research and health care, and reducing administrative costs.

“The UT System is clearly one of the state’s most important assets, and a key to the success of Texas in the future,” Milliken said. “Our institutions must offer high quality educational opportunities to a rapidly growing population, train the next generation of health care professionals, provide the best patient care, and expand research that drives innovation and economic growth. We’re grateful to the people of Texas and their political leadership for the investments that make this possible.”

Revenue for the UT System, projected at $21.7 billion for FY 2020, will come from a variety of sources. At the eight academic institutions, the largest sources of funding will include tuition and fees at 27.2 percent; federal, state, local and private sponsored programs at 24.5 percent; and state appropriations at 17.5 percent. At the six health institutions, almost 65 percent of revenue will be derived from hospitals, clinics, and professional fees, with sponsored research programs accounting for 16.3 percent and state appropriations contributing 8.7 percent of revenue.  Tuition and fees at health institutions will account for slightly over 1 percent of revenues. 

In the new budget, regents also allocated $35 million to continue the highly successful STARs (Science and Technology Acquisition and Retention) program to recruit and retain exceptional faculty, and $35 million to support library, equipment, repair and rehabilitation needs across all campuses.

About The University of Texas System
For more than 130 years, The University of Texas System has been committed to improving the lives of Texans and people all over the world through education, research and health care. With 14 institutions, an enrollment of nearly 240,000 students and an operating budget of $21.1 billion (FY 2020), the UT System is one of the largest public university systems in the United States. UT institutions produce more than 60,000 graduates annually and award more than one-third of the state’s undergraduate degrees and more than half of its health professional degrees. Collectively, UT-owned and affiliated hospitals and clinics accounted for more than 8.2 million outpatient visits and 1.6 million hospital days last year. Across UT institutions, research and development expenditures total $2.9 billion – the second highest among U.S. public higher education systems – and the UT System is regularly ranked among the top 10 most innovative universities in the world. The UT System also is one of the largest employers in Texas, with more than 21,000 faculty – including Nobel laureates and members of the National Academies – and more than 83,000 health care professionals, researchers and support staff.