Budget Breakdown: Where Does It All Go?

The University of Vermont is the economic hub of the Burlington area, generating thousands of jobs within the university and in the community. Many businesses would have no market without the clientele the university brings to the area. The tuition paid by each student at this university one of the main sources of money flow within this economic hub. UVM’s out-of-state tuition is $20,100 and the in-state tuition is $8,040. The out-of-state tuition will be broken down to show in dollar amounts how much of your tuition funds specific department, programs, and even personnel. Revenue from net tuition totals $101,480,000 and makes up 59 percent of UVM’s $172,000,000 General Fund Revenue Budget. The revenue generated from net undergrad tuition is $84,280,000, totaling 49 percent of the General Revenue Fund Budget with 8 percent coming from in-state tuition and 41 percent from out-of-state tuition. As a side note, state appropriation totals $36,120,000, 21% of the General Fund Revenue Budget, the state legislature has just proposed a 2% increase in state appropriation to the university. The General Fund Expenditure Budget totals $172,350,591. The budget is proposed by the administration to the Board of Trustees who must approve it. UVM’s Board of Trustees consists of 25 members; 9 legislative, 9 self-perpetuating, 3 gubernatorial, 2 student, along with the Governor of Vermont and the President of UVM. Professor James F. Gatti, PhD, of the School of Business Administration is the faculty representative on the Board of Trustees’ Finance and Budget Committee. Gatti said the main concerns in creating a budget are, A. “Generating adequate revenue to provide a high quality education to students.” and B. “Keeping tuition to a level that does not drive students away.” A rough breakdown of the General Fund Expenditure Budget shows that around 69 percent goes to the compensation of university employees, 18 percent of which funds employee benefits and 50.7 percent funds employee salaries and wages. 2.6 percent funds library acquisitions, 25 percent funds operating and equipment costs, and 3.7 percent funds the university’s energy costs. Now for the break down of UVM’s out-of-state tuition to show the specific allocation of funds in dollar amounts. $9,575.64 of the out-of-state tuition is allocated to the university’s colleges, schools, and other educational programs. The College of Arts and Sciences takes the largest percent of that figure with $3,109.47; of that $17.28 pays A&S Dean, Joan Smith. Breaking down this amount school by school: College of Engineering and Mathematics ($884.40), School of Business Administration ($369.84), College of Natural Resources ($319.59), College of Nursing and Health Service ($486.42), College Educating and Social Science ($722.59), and College of Agriculture and Life Sciences ($562.80). $365.72 is allocated to Agriculture Research and Related Services, making up 1.919 percent of total expenditures. The UVM Farm falls under this category with $33.76. $428.13 funds the Extension System, 2.13 percent of the General Fund Expenditure Budget. $2,128.59 goes toward Academic Support; within Academic Support are the university’s libraries, $1,137.66, and the Fleming Museum, $46.03. $1,115.55 of the out-of-state tuition is allocated to Student Services; that consists of Student Affairs ($208.84), Academic Support Program ($58.29), Athletics ($355.77), Admissions and Financial Aid ($359.79), Registrar ($104.52), ALANA Students Services ($28.86). The Men’s and Women’s Hockey Teams are the varsity sports that are most funded by the university with $24.65 of out-of-state tuition allocated to them, with a total budge of $210,941. The Men’s and Woman’s Basketball teams are a close second with $24.53, with a total budget of $209,945. $3,471.27 of the out-of-state tuition funds Institutional Support; under the category of Institutional Support $487.02 funds Executive Support. Within Executive Support $126.02 goes to the President’s Office and $30.38 goes toward paying President Fogel’s base salary of $260,000, also within the Executive Support $20.72 base Provost John Bramley’s base salary of $177,284. Also within the Institutional Support category $1,784.88 is allocated to General Administrative Services consisting of Police Services – $144.92, Computing Information and Technology – $538.68, and Human Resources – $393.56. Closing out the Institutional Support category $818.67 goes toward Community Relations. $2,424.06 goes toward the Operation and Maintenance of the Plant. $291.25 falls in the category of Debt Service, Transfer, Other. $259.29 is allocated under the Central Funds category, $237.18 of which is unallocated which makes up 1.18 percent of the General Fund Expenditure Budget. UVM’s out-of-state tuition ranks among the highest for public universities, yet the rate of increase for tuition and fees is significantly less than the national average. Between the years of 1993 and 2003 the national average for the total increase in tuition and fees for public and private universities are 74.9 percent, increasing 5.7 percent, while the in-state tuition and fees at UVM is 45.9 percent and 45.5 percent for out-of-state tuition and fees.