Tuition and state appropriations combine to pay for the core operational costs of The University of Texas at Austin. Tuition plays an integral part in the university’s mission by making it possible to hire additional faculty to maintain reasonable class sizes, retain faculty and staff through merit pay increases and expand existing academic programs and initiate new ones.
Endowments & Philanthropy
The Permanent University Fund (PUF) was established in 1876 by the Texas Constitution to provide resources to the university. The PUF is funded by the sale of oil, gas, sulfur and water royalties and rentals on mineral and grazing leases. These proceeds are invested and the return on that investment is known as the Available University Fund (AUF). Over many years the fund has been diluted and is now disbursed to 18 institutions and six agencies.
The university also has many other endowments, thanks to the generosity of donors. Most of these endowments are dedicated to specific purposes such as scholarships and the support of faculty studying particular disciplines. Other gifts are made for specific purposes, such as the construction of new buildings.
In the 1984-85 fiscal year, the State of Texas provided 47 percent of the university’s total budget. However, since the financial crisis of 2009, the state and tuition revenue sources of the university have either declined or remained flat.