March 6, 2009
  Feature Story

 

Where our money comes from

Right now, the Texas Legislature is in session hashing out the state’s budget for the next two years. And just a few weeks ago, Texas Lt. Governor David Dewhurst and Speaker of the House Joe Straus asked the Health Science Center and other state institutions to prepare for a possible two-and-a-half percent budget cut because of the sluggish economy.  With all of this talk of funding, this seems like a good time to explain where the Health Science Center gets its funding and how it is spent.

FY 2009 Operating Budget

Operating revenue sources:
State Funds
Educational and General State Support
, which makes up the largest portion of our revenue, is set by the Texas Legislature during its legislative sessions every two years. It is composed of the General Revenue Fund and the General Revenue – Dedicated Fund.

The General Revenue Fund, which makes up 32 percent of our total operating revenue, comes from state taxes and some state fees. General Revenue is determined by formula funding (based on the number of students, infrastructure and research generated at UNTHSC) and non-formula funding. The health science center’s non-formula funding is used to support the institution’s special item activities, such as our DNA Laboratory and Alzheimer’s Treatment Center.  General Revenue supports UNTHSC’s education and operational missions, and includes salaries for faculty and staff, and general operating costs (including maintenance and operation, sometimes called M & O, for things such as travel and supplies). The fund also pays for tuition revenue bonds that cover the cost of new buildings like Building A.

General Revenue – Dedicated, which makes up six percent of our total operating revenue, is generated by tuition. These funds are designated for purposes specified in the state’s General Appropriations Act. For example, part of this fund is dedicated to providing Texas Public Education Grants and Medical Education Loans for our students.  This fund is also known as Other Educational and General Income.


For more on the state budget process and the UNT Health Science Center’s annual budget, visit the Office of Financial Planning and Institutional Budget Web site.

Other appropriated funds
Roughly seven percent of the Health Science Center’s operating revenues comes from other appropriated funds from the state.  These include the Higher Education Assistance Fund (HEAF) and Tobacco Settlement funds.

UNT Health
Money generated by UNT Health goes into the Health Science Center’s Medical Services, Research and Development Plan Fund, which makes up 37 percent of our total operating revenue. This fund supports UNT Health’s salary and compensation for clinical faculty members, as well as general operating costs for the physician plan.

For more on our physician plan, visit the UNT Health Web site.

Research
Money generated by research grants, which makes up 18 percent of our total operating revenues, covers research costs including personnel and equipment. Most of the Health Science Center’s research is federally funded by the National Institutes of Health (NIH). UNTHSC also receives grants from non-NIH federal sources including the Department of Justice, charitable foundations, state agencies and pharmaceutical and biotechnology companies.

Along with covering the cost of personnel and equipment for research, these grants also support the overall operational costs of the Health Science Center. Some grants receive indirect funds that can be used for administrative support or utilities. Some grants cover portions of researchers’ salaries, which frees up state funds for other areas.

For more on the Health Science Center’s research efforts, visit the UNTHSC Center for Research Management Web site.

Foundation revenue sources:
Private donations
to the UNTHSC Foundation totaled $6 million last year. Although private donations don’t cover the Health Science Center’s operational costs, they do support its mission by enhancing research, providing student scholarships and helping recruit the best researchers and physicians. Some private donations are made as endowments—like saving accounts that grow over time—and some donations are designated to specific research programs or scholarships over time. However, some donations are made as expendable funds that can be spent immediately, some of which are unrestricted and can be spent in ways that state funds cannot.

Most of the Health Science Center’s private donations come from these sources: Grants from charitable foundations that support our research efforts, major gifts from private donors that support a variety of areas, annual gifts from private donors including our annual Campus Pride campaign, and fundraising events such as the annual gala and the President’s Invitational Golf Tournament.

For more on the Health Science Center’s fundraising efforts visit the Institutional Advancement Web site.

Watch future issues of Campus Connection for more on the Health Science Center’s funding. UNTHSC logo


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University of North Texas Health Science Center
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