Step 1: How the PUF and AUF Work
The Permanent University Fund (PUF) is a public endowment established to support institutions in The University of Texas System and the Texas A&M System. The income is generated from more than two million oil and gas producing acres in West Texas.
While the endowment is substantial, the investment income is shared by 18 universities and six agencies in the two educational systems.
The University of Texas System receives two-thirds of the investment income of the PUF, known as the Available University Fund (AUF). The University of Texas at Austin receives only about 30 percent of these funds.
Step 2: Where the Money Comes From
State General Revenue
In addition to the AUF, the university receives some state funding through appropriations from the Texas Legislature.
Self-supporting units are those that produce enough revenue to maintain their own budgets. These include Housing and Food Service, Continuing Education, Parking and Transportation, McDonald Observatory, the Lady Bird Johnson Wildflower Center and the Frank Erwin Center.
Funds in the Academic Enhancement budget come from contracts and grants, gifts, and income collected for specific academic purposes such as library fees, field trips and orientation.
Indirect costs are fees associated with overhead (utilities, office supplies, computers, administrative staff) on sponsored research. The income comes from an assessment on some contracts and grants received for research.
Other academic core income comes from budget balances, interest, intellectual property and administrative fees.
Tuition & Fees
The university continues to offer tuition and fees that are lower than many peer institutions.
Step 3: Where the Money Goes
Salaries & Benefits: More than half of the university’s total operating budget is spent on salaries and benefits, which includes salaries for faculty and staff, teaching assistants, wages and fringe benefits, such as group insurance, retirement contributions and workers’ compensation.
Maintenance & Operations: Almost one-fifth of the university’s operating expenses are marked for repair and renovation of existing buildings and facilities, as well as to supplement major capital construction projects.
Scholarships: The university’s budget supports non-endowed scholarships and fellowships for students in the form of grants.