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 $8.6 billion budget for the University of Kentucky in Fiscal Year (FY) 2025-26 is a testament to how the university intends to “advance Kentucky” in the coming year.

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.

Key highlights of the budget include:

Students and their success

• The budget includes a modest increase of 3% as authorized by the Council on Postsecondary Education (CPE) in tuition and mandatory fees, designed to hold down prices and increase access. The Fall 2025 tuition and mandatory fee rate for undergraduate students from Kentucky will be $6,953.50, up from $6,751 in Fall 2024.
• At UK, for six years, the rolling, four-year average for tuition and fee increases has been under 3%.
• The percentage of UK students graduating without debt is now over 50%, backed by continually increasing levels of financial aid.
• More than 90% of resident undergraduate students at UK receive financial aid, comprised of university, federal and state resources, that doesn’t have to be repaid.
• The result of those efforts is the preliminary projection of a record number of more than 6,800 first-time, first-year students this fall — what would be the fourth straight class of more than 6,000 students, even as six-year graduation rates continue to climb with a historic high of more than 70%, placing us among the top 100 institutions in the country.

Caring for the people who care for the mission

• The budget includes a 1.5% increase in compensation for all eligible UK and UK HealthCare employees, with a minimum raise of $750.
• It’s the 12th time in 13 years UK will have provided compensation increases.
• In this budget, UK is investing more than $80 million in additional compensation and benefits.
• The university is also expanding parental leave and elder care leave — from two weeks to four weeks for parental leave and from one week to two weeks for elder care leave.

Prudent investments in discovery, health and growth

• UK’s budget anticipates a record level of more than $500 million in research funding and expenditures in the year ending June 30, 2025.
• So much of that research is funded by the federal government and focused on the diseases, maladies and challenges that most confront the state.
• UK is projecting an approximate 10% decline — what Capilouto said is a prudent approach — given the uncertainty of funding streams and the current federal research agenda.
• The health care enterprise, which cares for people in every region of the state and beyond Kentucky’s borders, has a more than $5.1 billion budget for FY 2025-26.
• Over the last 15 years, the university has initiated more than $7 billion in new construction — classrooms and labs, living and learning spaces, health care and athletics facilities.
• Yet, in FY 2025-26, debt service as a percentage of the total budget will remain below 2%.
• This budget also details potential investments by UK Athletics of up to $110 million in their facilities over the next few years, part of a new governing model and operating structure for UK Athletics, designed to grow revenues to ensure long-term financial stability and a capacity to grow. You can read more about those investments here: UK Board considers more than $100 million in investments in future of UK Athletics | UKNow.

The University of Kentucky’s budget is comprised of three fund groups: general (designated and undesignated), auxiliary and restricted. Each fund group includes specific revenues, expenses and transfers and is budgeted so that it has a zero balance: Revenues + Transfers In – Transfers-Out = Expenses.

Designated General Funds are received directly by the colleges and units that generate or earn the funds. The colleges and units use the funds in accordance with their missions and to maintain self-sustaining activities. 

Undesignated General Funds are received and managed centrally and the associated expenditure authority is allocated to the colleges and units as base support for education, research, creative work and service. The budget decisions related to the university’s educational and general activities are based on the availability of these undesignated funds.

Auxiliary Fund revenues are generated from the sale of goods and services to faculty, staff and students. Revenues are expected to cover the operating expenses of each auxiliary enterprise.

Restricted Funds are provided by governmental agencies, corporations and private donors, these funds are accepted by the university with explicit restrictions imposed by the external entity. The primary sources of Restricted Funds are sponsored projects, such as grants and contracts, gifts that must be spent in support of a specific program and federal and state student financial aid. As a steward of the funds, the university has a legal obligation to abide by the fund restrictions.