7.8.1 Operating Budget
The operating budget includes all funds used by the University for operations other than foundation funds. Fund sources include:
General Revenue Funds
General revenue funds are comprised of:
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State Appropriated Funds, which are appropriated annually by the State of Illinois to the University for operational expenses; and the
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University Income Fund, which is income primarily derived from annual tuition revenue and some instructional fees.
General revenue funds are budgeted centrally and allocated by permanent budget allocations to campus departments. Within each departmental budget, fiscal managers review and adjust allocations among line items; such as personal services, contractual, commodities, to meet operating needs within a given year. Permanent allocations are adjusted centrally each year to cover university-wide salary increases or by executive management to meet University priorities.
Restricted Funds
Restricted Funds are collected revenues that can only be used for specific purposes, including:
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State College and University Trust Fund, which is revenue from the sale of collegiate license plates for the purpose of scholarship awards to Illinois Students;
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Bond Revenue (Auxiliary Facilities System, or AFS) Funds that are derived from the operation of facilities constructed with proceeds from debt issued by the University, such as residence halls and dining centers, as well as specific fees assessed to students for constructing facilities and providing student services;
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Grants and Contracts from federal, state or local grant agencies including awards to individual faculty or staff members for research projects or institutional improvement. Also included are federal and state financial aid funds granted to the University to be distributed to students; and
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Other Local (Agency) Funds, which are revenue generated by self-supporting units, such as Athletics, as well as student charges, such as mandatory student fees and course material fees.
Restricted funds budgets are set according to the legal parameters of the fund type.
