University of South Carolina

2009-10 Budget Fact Sheet

As a major research and teaching institution, the University of South Carolina has a large and complex operating budget with multiple sources of revenue and a variety of operating costs.

The following Q&A will serve to provide a better understanding of the University's budget and how the institution is addressing major reductions in state appropriations to higher education.

  1. What are the University's major sources of revenue and
    the percentage of the institution's budget they comprise?

  2. What are the University's major expenditures?

  3. How much was the University's 2008-09 budget cut
    by reductions in state appropriations?

  4. How much will tuition increase in 2009-10?

  5. What will USC Columbia do with the revenue derived from the tuition increase?

  6. How much stimulus funding will the University receive?

What are the University's major sources of revenue and what percentage of the institution's budget do they comprise?

Tuition and fees, grants, contracts, and gifts, and state appropriations are the major sources of University revenue.

The total University system budget, approved by the Board of Trustees for fiscal year
2009-10 is $1.08 billion.

State appropriations account for 16.3 percent of the University's system revenue. That percentage varies among the individual campuses, ranging from a high of 31.5 percent for the School of Medicine to 11.7 percent at USC Beaufort. Note that state appropriations make up a larger percentage of the University's operating budget, which does not include sponsored grants and contracts, student financial aid, and auxiliary enterprises.

Tuition and fees account for 40.3 percent of the University's system revenue. Again, that percentage varies at each campus with USC Beaufort deriving the most, 55.6 percent, of its revenue from that source and the School of Medicine deriving the least, 14.9 percent.

Grants, contracts, and private gifts from fund raising make up 26.8 percent of the University's revenue.

The remaining sources of University revenue include sales and service educational activities, 3 percent; and sales and service auxiliary enterprises, 13.6 percent. An auxiliary enterprise is an entity that exists primarily to furnish services to students, faculty, and staff. Examples include the student health centers, housing, parking, and athletics. By state law, auxiliary operations must cover their own costs.

USC System State Appropriations and Tuition & Fees

State Appropriations


What are the University's major expenditures?

Carolina reports expenditures based on the following categories that support the primary mission of the University to educate the state's diverse citizens through teaching, research and creative activity, and service. These activities include both unrestricted and restricted expenses normally categorized as: instruction; research; public service; academic support; student services; institutional support; operation and maintenance of plant; scholarships and fellowships and auxiliary enterprises.

FY2009-10 Expenditures

Expenditures


How much was the University's 2008-09 budget cut
by reductions in state appropriations?

As of June 11, 2009, the University's state appropriations have been reduced by $55.4 million since last June. The percentage reduction varies by campus and is apportioned as follows:

  Total Reductions
Since FY2008
Percentage Reduction
USC Columbia ($39,762,495) -24.73%
School of Medicine ($5,673,845) -24.71%
USC Columbia and SOM Total ($45,436,340) -24.72%
     
USC Aiken ($2,789,301) -24.91%
USC Beaufort ($884,937) -30.78%
USC Upstate ($3,706,998) -25.29%
USC Lancaster ($677,166) -24.44%
USC Salkehatchie ($587,115) -24.72%
USC Sumter ($1,093,119) -24.79%
USC Union ($262,517) -24.52%
     
USC System Total ($55,437,493) -24.85%

Change in State Appropriations

USC System

Budget FY2001 Base Budget FY2009 Base Budget FY2010
State Appropriations $250,561,700 $223,310,213 $169,763,896
Percent of Total Current Fund Revenue 40% 21% 16.3%
USC System Operating Budget Total State Approriations

Total State Appropriations

Although the total system budget covering eight campuses exceeds $1 billion, the operating budget of the University system is a smaller but critically important piece of the budget picture. The operating budget is the University's unrestricted funds that can be used based on strategic needs and priorities.

The operating budget deals with the general day-to-day activities and expenses of the institution. For USC Columbia, the operating budget revenue is approximately $437 million. Operating budgets of all University campuses account for about 54 percent of the total University budget. As a percentage of the operating budget, state appropriations make up a relatively large slice of the pie, making reductions of this magnitude difficult to manage.

All state budget cuts are to recurring or "base" funds. State appropriations reductions reduce permanently the amount of revenue allocated to the University of South Carolina system from the state. To put this in perspective, on the Columbia campus, a tuition increase of 16.5 percent would have been required to restore the university's base budget to the fiscal year 2008-09 level.


How much will tuition increase in 2009-10?

With student tuition being the primary source of operating revenue, the University seeks to balance the need for additional revenue with a commitment to ensure that Carolina remains accessible and affordable.

The tuition adjustment for undergraduates on the Columbia campus will raise tuition and required fees for in-state students by 3.6 percent, or $159 per semester, to $4,578 per semester. Non-resident tuition and required fees will increase to $11,866 per semester.

In-state graduate student tuition and required fees will increase by $176 for a semester total of $5,094. Non-resident graduate student tuition and required fees will increase by $372 for a semester total of $10,740.

Students in the School of Law, the School of Medicine, the S.C. College of Pharmacy, and the Moore School of Business graduate programs also will have different tuition increases. For in-state students, law school tuition and required fees will increase by 6.6 percent; medical school tuition will increase by 9.9 percent, and pharmacy students will seen an increase of 10 percent. Tuition increases for Moore School graduate students will vary by program.

Required tuition and fee increases for the system campuses are 3.6 percent for USC Beaufort and USC Upstate and 4.9 percent for USC Aiken.

For the regional campuses (Lancaster, Salkehatchie, Sumter, and Union), students with less than 75 credit hours will see tuition and required fees increase by 5 percent. For students with 75 or more credit hours, tuition and required fees increase by 5.8 percent.

USC Columbia In-State Undergraduate Tuition and Required Fees

Tuition Fees


What will USC Columbia do with the revenue derived from the tuition increase?

Increased tuition is expected to raise $7,740,000 in new funds for strategic allocation as follows:

Academic Programs and Services  
Faculty Excellence Initiative $1,250,000
Academic Enhancement $1,365,000
University Libraries $ 340,000
Undergraduate Research $ 110,000
   
Academic Support and Student Affairs Programs  
4 percent fee waivers $ 772,414
Student Affairs $ 250,000
Research computing $ 150,000
   
General Institutional Costs and Central Operations  
Utilities $1,779,788
Law enforcement and safety $ 250,000
Environmental health and safety $ 100,000
Facilities $ 562,200
Board of Trustees, general counsel, and finance operations $ 648,630
Student activities $ 161,968

How much stimulus funding will the University receive?

Federal Stimulus funding, part of the State Fiscal Stabilization Fund Program in the American Recovery and Reinvestment Act, is expected to be $29,237,161 for the University system. These are non-recurring funds available for a period of two years that will be allocated as follows:

USC Columbia and SOM $23,945,887
USC Aiken $ 1,469,806
USC Beaufort $ 481,777
USC Upstate $ 1,959,567
USC Lancaster $ 356,295
USC Salkehatchie $ 310,271
USC Sumter $ 575,463
USC Union $ 138,095
   
Total System Federal Stimulus Funding $29,237,161

Stimulus funds will be distributed strategically to the campuses and will be used generally for one-time expenses that support our core mission of teaching, research, and service and for initiatives that will spur economic development.