UI reports more total revenue in general education fund than expected in fiscal year 2021
At the state Board of Regents meeting on Wednesday, the UI reported that they generated more revenue than expected, being 1.7 percent above the estimated budget. Most of the revenue is generated by undergraduate student tuition.
Board of Regents Office member Mark Braun, President Michael Richards, and President Pro Tem Sherry Bates listen to a speaker during the state of Iowa Board of Regents meeting in Reiman Ballroom at the Alumni Center in Ames, Iowa, on Thursday, Sept. 16, 2021.
November 3, 2021
The University of Iowa General Education Fund revenue is up 1.7 percent above the estimated budget, the UI reported at the state Board of Regents meeting on Wednesday.
Rod Lehnertz, senior vice president for Finance and Operations, presented the Comprehensive Fiscal Report for Fiscal Year 2021 to the regents, where he said the UI generated $757.1 million in revenues for the year.
In 2020, the fiscal year reported revenue up 1 percent over 2019. The 2020 Fiscal Report estimated fiscal year 2021 project revenues will decrease $18.9 million compared to fiscal year 2020.
The Fiscal Report for fiscal year 2021 also outlined that the revenue generated from tuition was more than originally budgeted.
“Tuition totals $468.5 million, or $5.5 million over the budget,” Lehnertz said. “It should be recognized. It’s good to perform above the budget on these revenue targets.”
Lehnertz said 44 percent of the revenue generated by tuition comes from resident tuition in the state of Iowa, while 56 percent comes from non-resident tuition. Most of the UI’s revenue comes from undergraduate students’ tuition dollars.
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“At roughly a little more than $120 million from residents who are undergraduate, and $225 million for non-residents,” Lehnertz said. “Despite the fact that we have almost 60 percent resident students compared to a little more than 40 percent non-resident.”
The document also summarized that the UI has seen a decline in enrollment from 2016 to 2021 by 3,211 students.
“We have seen that primarily based on a decrease in undergraduate, non-resident students, more Iowans than non-residents in our current mix,” Lehnertz said.
Lehnertz said the UI is also above the budget by $6.8 million in reimbursed indirect costs from the general operation fund, a direct tie to increased research activities at the university.
Student finances were under budget by 0.9 percent at $140 million, Lehnertz said. Additionally, utility expenses were also under budget. The UI for the past three years has frozen their utility increase rates.
“This has been done through a concerted effort on efficiencies, modernized systems and investments that can keep our utility cost increases in tow,” Lehnertz said. “We have worked hard to have the past three years not go up. We’re proud of our utility work that we’ve done and [it] has been a benefit to the institution during these tight times.”