Budget

Our budget reflects our momentum and our steadfast commitment to the success of our people and the future of our state.

Our ability to provide raises, to expand leave options, to keep tuition increases to the lowest levels in a generation, to reduce students’ unmet financial need, and to expand efficiency and effectiveness is the result of the tireless work of so many people within the budget office and other areas in Finance and Administration, as well as in the Office of the Provost.

We begin a new fiscal year with a budget that embodies our community’s distinctive characteristics: an unwavering commitment to service and support, as well as a fierce determination to expand what’s possible for the University of Kentucky.

The $6.8 billion budget is 21% larger than last year’s $5.6 billion original budget, a reflection of the acquisition and integration of King’s Daughters Medical Health System in Ashland into the university.

The budget’s growth continues to be driven by the ongoing expansion of the university’s academic health system, its commitment to strategic growth of the student body and a thriving research enterprise.

A Promise to Enroll and Graduate More Students

• UK welcomed a record first-year class of approximately 6,400 students this fall and an overall enrollment of about 33,000. It’s the second year in a row first-year enrollment exceeded 6,000 students.
• Even with the growth, UK hit a record, six-year graduation rate of 70% and a five-year graduation rate that almost matches that milestone, underscoring successful efforts to accelerate retention levels.
• UK will hold tuition increases, under the proposed budget, to 2.75% for Kentucky undergraduates — part of a continued commitment to ensuring access and affordability. Tuition for fall 2023 would be $6,606.00, up from $6,429.50 in Fall 2022.
• The tuition rate for Kentucky undergraduates will mean that the four-year average annual increase would be 1.7%, the third year in a row that the rolling average for increases is under 2%.
• Financial aid in the form of grants and scholarships that students do not have to repay will hit $285 million, including $165 million from institutional funds. More than 90% of full-time, resident undergraduates receive such aid. Last fall, those students paid, on average, less than $500 out-of-pocket for tuition and mandatory fees.
• About 25% of Kentucky undergraduates come from families where the median family annual income is less than $25,000. Those students last fall paid no tuition and mandatory fees and received an additional, average amount of $3,171 in aid.

A Promise to Expand Health Care to More Kentuckians

• The academic health system now represents approximately $4 billion of the institution’s budget — a 300% increase from a decade ago.
• UK is in the design phases for approximately $2.4 billion in construction over the next several years, including expansion of the Albert B. Chandler Hospital footprint, an advanced cancer and ambulatory center and four ambulatory clinics throughout the region to provide greater access to care.

A Promise to Pursue Discovery and Answers

• The budget projects $494 million in revenue from research grants and contracts — the third straight year the research enterprise would top $400 million.
• Much of that revenue is directed toward Research Priority Areas — a focused attempt to address Kentucky’s biggest challenges around cancer and diabetes, substance misuse and neuroscience, heart disease and energy as well as systemic issues around race and equity.

A Promise to Take Care of the People Who Advance UK and the State

• For the 10th time in 11 years, the budget includes compensation increases for UK employees.
• Nearly $30 million has been invested from central sources over the last two years (not including UK HealthCare) and represent the largest such investments in pay raises over a two-year period in more than 15 years.
• UK will invest $12 million more in health care in the coming year, some $200 million for health coverage in 2023-24.
• The university will increase the starting hourly rate for Federal Work Study student employees to $12 an hour. The Office of Student Success will implement the same starting hourly rates for its student employees.
• UK is also implementing baseline graduate stipends, using national benchmarking data by academic discipline.