Restricted Funds Budget Narrative

The FY 2018 Restricted Fund budget is based upon revenue and expenditure projections for each of the funds.  The Restricted Fund includes the Organized Activities Fund, the Auxiliary Enterprise Fund, the Current Restricted Fund and the Plant Fund and involves virtually every department on campus in revenue and expenditure planning.  Revenues are derived from federal and non-federal support for sponsored programs, sales and services, reimbursed indirect costs, tuition and fees, bond proceeds, transfers from current unrestricted funds, and appropriations.  The expenditure plan provides for salary adjustments, meets certain non-discretionary cost increases, reflects the University’s best efforts at planning to meet its most critical needs, and provides essential services within the limits of available resources.

The Organized Activities Fund includes Medicine and Dentistry Practice Plan funds, sports camp activities, Conferences and Institute and mandatory fees (partial).  It also includes various tuition and program specific fees, publications, and workshops related to academic departments.

The Auxiliary Enterprise Fund includes Intercollegiate Athletics, University Residence System, Iowa Memorial Union operations, Student Health, Recreational Services, Hancher Auditorium, Parking and Transportation, Cambus, and various smaller enterprises serving faculty, staff, students and the public.

The Current Restricted Fund includes sponsored activities, predominately research and student financial aid funded from federal and non-federal sources.  It also includes funds allocated from the Board Office for the Iowa Regents Resource Centers.  These Centers serve the educational needs of students in northwest and southwest Iowa.  The Centers are part of the Regent Enterprise and include the University of Iowa, Iowa State University, and the University of Northern Iowa.

Breakdown of Other Income

Other income includes non-federal gifts, grants and contracts of $172.1 million, commissions and royalties of $6.7 million, parking fines of $1.6 million, and Other Miscellaneous Revenue of $22.6 million.

Bond Sales/Debt Service

The Bonds and Loans line includes the following potential bond sales for FY 2018 subject to the refinement of schedules and final approval by the Board:

Athletics Kinnick Stadium $    65.0 million
UI Hospitals & Clinics $    62.5 million
   

In addition to FY 2018 projected debt service on existing issues ($104.0 million), an estimate of $4.0 million has been included for the issues listed above.

Tuition Replacement

The budget contains $14.0 million for Tuition Replacement which has been appropriated to address the FY 2018 debt service on Academic Building Revenue Bond issues.

Capital

A total of $64.3 million in new capital was appropriated by the General Assembly during the 2014 legislative session for a new Pharmacy Building.  The funding schedule was modified during the 2017 session to the following:

 

FY 2016 $13.0 million
FY 2017 $23.0 million
FY 2018 $22.8 million
FY 2019 $  5.5 million

 

The overall cost of the project is estimated to be $96.3 million with the remaining amount to come from private gifts and College and University earnings.

Innovation Fund

The University of Iowa has received a recurring allocation of $1.05 million from the Skilled Worker and Job Creation Fund for the development of technology commercialization, marketing and business development efforts in areas related to technology commercialization, entrepreneurship, and business growth.  

The University will leverage these funds from the Innovation Fund with matching funds dollar for dollar to:

  1. To support the development of innovations with commercial potential, with the result that more University of Iowa technology reaches the marketplace.
  2. Build effective partnerships for economic development between the private sector and the University of Iowa.
  3. To provide dry-lab and wet-lab space for researchers, and biomedical and electronics prototyping facilities for medical device and startup development.
  4. To increase the effectiveness of University of Iowa resources in aiding existing state and regional economic development initiatives.