University Of Texas System Approves $17.9 Billion Budget For Fiscal Year 2017

AUSTIN, TX -- The University of Texas board of regents on Thursday approved an operating budget of $17.9 billion for fiscal year 2017 -- a 5.4 percent increase over last year.

University officials said the bolstered budget reflects growing enrollment at University of Texas institutions coupled with expanded health care services provided for a growing number of patients. The UT system contains 14 learning institutions throughout Texas that serves more than 221,000 students, six medical schools and is responsible for $3 billion in annual research, officials said.

“One of the most critically important responsibilities of the Board of Regents is ensuring that our academic and health institutions have the resources they need to fulfill UT’s mission to Texas and the world,” said Regents Chairman Paul L. Foster in a prepared statement. “We are committed to supporting world-class education and research and to providing the best health care possible for our patients, and those commitments are reflected in this year’s budget.”

This year’s budget includes an additional $280 million for instruction and academic support activities and $381 million more for hospitals and clinics, officials said.

The UT system’s revenue derives from myriad sources, with tuition and fees making up 9.3 percent, officials said. State appropriations this year account for $2.3 billion, or 12.7 percent; hospitals, clinics and professional fees bring in the largest share of revenue, $7.8 billion, or more than 42 percent of the total funding sources, officials added.

UT System-owned and affiliated hospitals and clinics have nearly 7 million outpatient visits and approximately 1.4 million in-patient hospital stays annually, officials noted.
In presenting the budget to the Board of Regents, UT System Chancellor William H. McRaven highlighted upcoming changes for UT System Administration centered on job reductions.

"The number of employees at System Administration has increased over the past few years as employees were shifted from academic campuses to UT System’s payroll to free up revenue for campuses, while offsetting proposed tuition increases," officials explained.

Plans call for the university to cut 130 positions for a net reduction of at least 10 percent by the end of fiscal year 2017, officials said in an advisory. As of Thursday, 81 UT System Administration employees have signed notices of intent for a voluntary separation incentive program, officials noted.

McRaven has also implemented a soft hiring freeze and will explore outsourcing opportunities and a possible reduction in force.

“We are one of the nation’s largest systems of higher education — only behind California in terms of annual research expenditures — and unlike any system in Texas in terms of scale and impact,” McRaven said. “As we educate more students, train more doctors, treat more patients and pioneer more world-changing breakthroughs, we need a System Administration that can support and drive that important work. However, we also understand that we are stewards of the resources of the state of Texas and are committed to smart efficiency and ensuring that we are investing every dollar possible into programs that directly benefit our students and all of Texas.”

Along with endorsing 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 exceptional professors and researchers, adding to the caliber of UT faculty and ultimately to the strength of UT undergraduate and graduate students," UT officials said.

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