Welcome from the Provost and the EVPFA
We extend our deepest appreciation for your commitment to the financial success and sustainability of our great University.
As a $2.7 billion enterprise, UK requires a budget system that maximizes the ability of our colleges, departments, and units to make decisions on how best to serve our education, research and health care missions. As an institutional community, we have faced a decade’s worth of level-to-declining state appropriations, both in real terms and as a percentage of our overall resources. At the same time, we have experienced unprecedented growth in sponsored research.
Currently, we are facing a period of diminishing resources. Federal grant funding is more competitive, swings in the markets have affected our endowment performance, and state appropriations will continue to, at best, remain constant.
Our situation is not unique among other public universities. In response to these pressures, many institutions have become ever more dependent on tuition revenues. Although partial reliance on tuition revenues is inevitable, UK’s commitment to maintain affordability and to continue to be a gateway for Kentucky students to access higher education must prevail. We know that the economics of higher education are changing, and we know that we must proactively change to meet this challenge. Therefore, finding a solution to balance our resources while accomplishing our strategic priorities is paramount.
One of the critical components in achieving this goal is the implementation of a resource allocation model that reinforces our academic mission, aligning authority and responsibility at the College level to enhance financial stewardship and to help promote innovative and entrepreneurial activities. A key part of how a budget model helps achieve these goals is by creating transparency around our financial planning and decisions. The new budget model is designed to:
- Foster an information-rich conversation on the budget
- Promote informed and robust decision-making by enhancing the understanding of the financial, instructional, and research impacts of potential decisions
- Create a more elegant system of funding flows and cross-subsidies
This enriched environment of transparency extends to the support and resource units of the University as well. Under the new model, support and resource units will become more efficient, effective, and communicative – thereby empowering the institution to make more informed decisions.
As you explore this website, please remember that our Finance and Operations team is committed to being a valuable resource for you. We are here to answer your questions, to provide assistance, and to help ensure that accountability, quality and excellence, collaboration, coordination, and transparency are incorporated every step of the way.
Our mission – the Kentucky promise - deserves a model for resource allocation that is centered on our core principles and that will help us continue to build on our powerful sense of momentum. The value-based model starts and ends with our mission.
Yours in service to the Commonwealth,