Regents approve $16.9 billion operating budget for UT System

AUSTIN – The University of Texas System Board of Regents today approved a $16.9 billion operating budget for the 2016 fiscal year to fund operations at UT’s 14 academic and health institutions around the state.

The new budget represents an 8.1 percent increase, or $1.3 billion, over the previous fiscal year, including an additional $530 million for instruction and academic support activities; $412 million more for hospitals and clinics; and a $161 million increased investment in research.

“Providing the appropriate resources for our institutions to produce skilled graduates, create an environment for world-class teaching, conduct life-transforming research, and deliver exceptional health care is this board’s chief priority,” said Regents Chairman Paul Foster. “We are entrusted with ensuring that our students, patients, and all whom we serve have access to the highest quality learning and health care experiences, and we are steadfast in our commitment to do so.” 

For the first time, Texas’ newest public university, UT Rio Grande Valley, is included in the UT System budget. With a projected enrollment of 28,000 students, UT Rio Grande Valley’s $478 million budget is guided by four priorities: promoting student success; providing educational opportunity; establishing quality medical education; and pursuing research on the issues that impact the region.

UT System’s revenue comes from a variety of sources, with tuition and fees making up one of the smallest pieces of the pie – only 9.4 percent. State appropriations this year account for $2.2 billion, or 13.2 percent, demonstrating an increased investment in higher education by the 2015 Texas Legislature. Hospitals, clinics and professional fees fund the largest share of revenue, representing $6.9 billion, or more than 40 percent of the total funding sources.

“We appreciate the leadership of state lawmakers and Gov. Greg Abbott, who clearly demonstrated their support for the mission of public higher education during the 2015 legislative session,” said UT System Chancellor William H. McRaven. “The future of our state — its health, economy and place as a global leader in innovation, technology and business — is dependent upon the strength of our universities.”

Along with the operating budget, Regents approved $30 million of Permanent University Fund bond proceeds for the highly successful STARs (Science and Technology Acquisition and Retention) program, designed to attract and retain the highest quality faculty. The STARs program is widely credited with helping UT institutions recruit and retain elite professors and researchers, adding to the caliber of UT faculty and ultimately to the strength of UT undergraduate and graduate students.

About The University of Texas System

Educating students, providing care for patients, conducting groundbreaking basic, applied and clinical research and serving the needs of Texans and the nation for more than 130 years, The University of Texas System is one of the largest public university systems in the United States. With nine academic universities, six health institutions and an enrollment of more than 217,000, the UT System confers more than one-third of the state’s undergraduate degrees, educates almost two-thirds of the state’s health care professionals annually and accounts for almost 70 percent of all research funds awarded to public institutions in Texas. The UT System has an annual operating budget of $15.6 billion (FY 2015) including $3 billion in sponsored programs funded by federal, state, local and private sources. With about 20,000 faculty – including Nobel laureates – and more than 70,000 health care professionals, researchers, student advisors and support staff, the UT System is one of the largest employers in the state.