Resources on the Incentive-Based Budget Model for Undergraduate Tuition

The Undergraduate Tuition Revenue (UGTR) budget model allocates a pool of tuition revenue composed of:

• The net tuition paid by undergraduates (excludes approx. 30% used for financial aid) and
• About 20% of the Nonresident Supplemental Tuition (NRST) paid by undergraduates.

Since 2012-13, the UGTR model has allocated 30% of new revenue net of aid to the central campus to fund administrative units, provide supplemental funding to all units, and support central initiatives.  The other 70% has been allocated to academic units based on a workload metric made up 60% of student credit hours (the higher of pay or course basis for each unit), 30% majors, and 10% degrees awarded.   Academic units use these funds for a variety of things, including faculty and TA salaries, instruction, advising, and student academic support.

Starting with allocations made in 2020-21, the UGTR budget model allocates UGTR funding to the academic units at the amount allocated through 2019-20, about $180 million, on the same basis of these three metrics:  the existing pool is held flat but redistributed among the colleges and schools based on their workload metrics. Increased revenue above 2019-20 funding, however, is split 30%/70%.  The 30% is held centrally for the same uses described above.  The remaining 70% is dedicated to a pool to fund student success initiatives, which could include increased tutoring, writing support, technology to support better planning and advising, and investments in college-specific needs. 

Allocations are made as permanent base budget increments to bring units to their current year metric share. For 2023-24, this pool was allocated as shown in Table 1 below:

Table 1.  2022-23 UGTR Allocations 

Note: totals may not tie due to rounding

For more information, contact the Budget Office.

Resources (PDFs):

• Undergraduate Tuition Allocations - June 2023
• Provost message to Deans about Undergraduate Tuition Revenue methodology - June 2020
• Undergraduate Tuition Allocation, Version 3 – January 2012