Budget Approval

The $1.8 billion budget plan, which went into effect on July 1, prioritizes funding outlined in the university’s strategic plan, including student success, retention and well-being; faculty and staff compensation and retention; and the university’s research enterprise.

Uncertain federal support, the loss of some research funding and transformative changes in athletics presented challenges in this year’s budget, which include an increase in student tuition as well as a student fee to support student-athlete services and student experiences.

“These were difficult decisions for us, understanding that finances remain the main obstacle to students pursuing higher education,” said President Gerry Bradley. “That is why in FY26, additional general funds for student financial aid will total $14.1 million, and we will continue to support the Cardinal Commitment, Global Cardinal Scholarship and Border Benefit programs.”

Other budget highlights include:

• Current employee retirement contributions will continue (7.5 percent automatic, plus 2.5 percent match) as well as 75 percent employer coverage of health insurance and 100 percent tuition remission for eligible employees and dependents.
• Upgrades to research performance computing capacity and creation of a cybersecurity center through a state appropriation of $10 million.
• Investments from the over $300 million from the Kentucky General Assembly for asset preservation and new construction projects will continue to focus on updating classrooms and labs in high-use areas, making safety improvements to roofs, development of the Health Sciences Campus Simulation Center and Collaboration Hub and more.

Read the complete fiscal year 2026 budget on the .

House Bill 4 implementation

Trustees approved measures to implement provisions of Kentucky House Bill 4, which relates to initiatives regarding diversity, equity and inclusion at public colleges and universities in the state. The bill was signed into law as and required implementation by July 1.

After House Bill 4 was introduced, a Board of Trustees Ad Hoc Committee along with four workgroups assessed compliance tasks in position analysis; policy analysis; admissions, financial aid and scholarships; and athletics.

“In a year when there are several other major university-wide changes under way, this effort has placed an extraordinary demand on our priorities,” said Bradley. “My appreciation for the many people who committed so much extra time to this difficult work cannot be overstated.”

See for details on implementation measures, updates and FAQs.

In other news …

Graduate certificates in holistic sports coaching education, classroom reading (p-12), instructional computer technology and elementary mathematics specialist were approved.

Macy Waddle was introduced as the new Board of Trustees student constituency representative. Waddle was recently elected as UofL’s Student Government Association (SGA) president. She is majoring in political science, Spanish and political marketing. She previously served as the SGA academic vice president (2024-2025), student government assistant to the academic vice president (2023-2024) and McConnell Scholar’s Program outreach chair (2023-2024).

The next meeting of the University of Louisville Board of Trustees will take place Thursday, July 17, at 1 p.m., in the Jefferson Room, Grawemeyer Hall. Board meeting minutes, schedules and other information are available on .

The budget, approved during the board’s June 27 meeting, goes into effect July 1, the start of the 2025 fiscal year.

Among the highlights of the budget is a $4.1 million investment in research computing to expand productivity and external funding.

“Creating knowledge is something only a research university like ours can do,” said UofL President Kim Schatzel. “Investment in our research infrastructure and in our faculty is part of a recommitment to our mission-critical pillar of being a research and innovation powerhouse. This is a landmark investment for the university, advancing us to be the institution we should and can be.”

Additional research computing capacity will enhance university researchers’ ability to conduct in-depth data analyses and solve complex problems. This includes creating detailed simulations and modeling real-world systems for applications such as testing the effects of new drugs and tracking the potential spread of diseases, as well as high-performance computing for complex calculations such as particle physics simulations or genomic sequencing. Further, this will provide a secure computing environment with support for all the compliance rules of the federal funding agencies.

“This effort to re-envision and grow our research computing further advances our researchers’ capacities to create and apply knowledge that makes lasting – and, often, life-saving – impacts on society,” Schatzel said. “This will be a game changer for public health and will allow the university to leapfrog our peers and put it on the leading edge of artificial intelligence research.”

Research and innovation move beyond the laboratory and into the community. UofL Health is building a regional cancer center in Bullitt County, and UofL is committing, through , $12.5 toward cancer research and rural cancer care. Also through state appropriations, a $1.5 million investment will establish an Immigration Law Clinic to provide critical legal services to the public, teach students the necessary skills to practice law and develop a pipeline of immigration law attorneys. An allocation of $5.3 million to the Kentucky Manufacturing Extension Partnership will support and solve problems for manufacturers across the commonwealth and ignite innovative growth.

Although there were no changes in mandatory student fees, a tuition increase of 2.44% for resident undergraduates and 5% for resident graduate students was approved. To help mitigate rising tuition costs, scholarship support was increased by $5.7 million for a total scholarship pool of nearly $78 million. The Cardinal Commitment program, UofL Health collaboration the Border Benefit program and graduate stipends all received additional funding. Tuition rates for active-duty military and members of the Reserves and National Guard remain unchanged.

“UofL has made every effort to keep these increases as small as possible,” said Schatzel. “We understand tuition costs are a concern. To ensure students get the most from their education, we’re investing in several areas including academic advising, engaged learning opportunities and online classes. Keeping higher education affordable remains a university priority.”

The budget also includes a 5% housing rate increase to maintain current programming and for facility maintenance; a 3% student and employee parking permit rate increase to support capital improvements and transportation services; and a 5% increase in dining services to enhance dining options and support capital improvements in dining facilities.

Recommendations for FY 25 tuition rates and fees were made to university leadership by the tuition taskforce, which includes representatives from faculty, staff and students.

Employee compensation remains a priority for FY 25 with an investment of $17.8 million to increase salaries and wages. That investment supports a 2.5% general wage increase for eligible faculty and staff as well as $10.5 million toward the faculty and staff compensation study. The university will continue to absorb 75% of health insurance expenses for FY 25. The 7.5% retirement contribution from the university will remain the same, with the option to participate in the employer 2.5% match.

Finally, as noted in Schatzel’s , the state is making significant investments in UofL. FY 25 state appropriations to UofL total $176.5 million. Increases in the state performance funding pool will generate an additional $1.2 million in 2024-25 over UofL’s current allocation of $17.6 million for a total of $18.8 million.

Interim President Lori Gonzalez provided senators with current student enrollment and retention figures. A decline in undergraduate enrollment compared to last year was reported. Gonzalez said that administration anticipated this decrease and despite the current dip in student enrollment, current figures for the fall 2022 term show promise. Figures for the fall 2022 semester include a 6% increase in student applications, 14% increase in admissions and 30% increase in deposits.

Gonzalez further reported an increase in student retention rate of 91% from the fall 2021 to spring 2022 semester, improving upon the 86% student retention rate reported the previous year.

“Our fall to spring retention for first-year students is back to pre-pandemic levels, which is pretty amazing,” Gonzalez said. “Getting back in class and having the right kind of experience, I think, has made a big difference.”

Dan Durbin, executive vice president for finance and administration, and Keith Sherman, executive director and chief operating officer of the , presented information on the university budget and available funding currently offered through the foundation. Durbin provided an overview of the university’s $1.3 billion budget for fiscal year 2022. General or unrestricted funds are used to cover the unrestricted operating expenses incurred by the university; this funding accounts for about 40% of the institution’s total budget.

“Our unrestricted funding is made up of tuition, fees and state appropriations. Tuition and fees are influenced by external and internal factors, so we have very limited latitude when it comes to increasing unrestricted operating funds from tuition and fees,” Durbin said. “Our state appropriation is about $130 million a year; $127 million of that is base, and we have to earn the other $3 million through the Performance Funding model, so that $3 million is always at risk.”

Performance funding is reallocated each year based on each university’s performance relative to other institutions in the state. UofL performed better than the sector average in seven of the 11 performance metrics used to determine state performance funding. Despite a slight increase in 2022, state funding for the university has generally declined over the past decade.

The university’s general fund budget will soon face several significant challenges, including inflation, employee compensation increases and the 2025 demographic cliff projected to impact higher education enrollment and institutional aide nationwide. As neither state allocation nor tuition increases can meet these financial obstacles fully, units have been encouraged to take advantage of the $82 million that is currently available through the University of Louisville Foundation.

Sherman reported the total foundation funding, which includes both endowment and current use funds, is available to each UofL school and college. Senators were also provided with a recommended order of spending for all funding, both restricted and nonrestricted, to reduce general fund spending and maximize UofL’s budgetary efficiency.

“Grant monies typically need to be returned to the grantor if you don’t spend them, so you should spend those funds first. Then go to your restricted endowments and your restricted non-endowed gifts [before spending] your unrestricted money. Your unrestricted money is gold because you can do anything you want with it. We recommend spending unrestricted gifts before your unrestricted endowments because non-endowed gifts don’t grow.” said Sherman.

Committee reports and a of the meeting can be accessed on the . The next Faculty Senate meeting is scheduled for Feb. 8 and will take place remotely via Microsoft Teams.

“We continue to be very impressed by and grateful for Neeli’s leadership of the University of Louisville,” said Mary Nixon, chair of the UofL Board of Trustees.

Nixon enumerated some of the accomplishments that have occurred on Bendapudi’s watch:

• Stabilizing UofL’s financial position, improving its credit outlook and shifting resources to advance the strategic plan
• Setting a record of $170 million for research funding and articulating the Grand Challenges that will further focus the university’s energy
• Attaining the highest UofL enrollment in decades in the fall 2020 semester
• Building a strong internal leadership team including two recent hires, Provost Lori Gonzalez and General Counsel Angela Curry
• Attaining steady progress on the strategic plan with the creation and expansion of services in the Employee Success Center, the launch of a brand campaign and web improvement project, a concerted focus on experiential learning and more.
• Successfully implementing the acquisition of the former KentuckyOne Health assets to create UofL Health, leaving the university in a stronger financial position and expanding health care services into more areas than before including the medically underserved area of West Louisville
• And in response to the single greatest public health crisis of our lifetimes, the global COVID-19 pandemic, UofL under Dr. Bendapudi’s leadership:
  • Transitioned seamlessly from in-person to online instruction in a matter of days
  • Took care of the on-campus population with continued housing and dining services for thousands of students
  • Provided COVID-19 testing, vaccinations to our UofL community and more broadly to Kentuckiana through UofL Health

As a result of the positive evaluation, the board recommended approval of a new compensation structure that effectively combines Bendapudi’s current salary and bonus. Her proposed five-year contract, which would begin July 1 of this year, provides for an annual salary of $875,000 and includes other terms that are on par with presidential contracts at other research universities throughout the U.S., including life insurance, athletic tickets and other items. Bendapudi also would receive a one-time payment of $150,000 on or before Sept. 15 as an adjustment to her base salary for services rendered between July 1, 2020, and June 30, 2021. Bendapudi earned $725,000 in salary in 2020-21.

The trustees also proposed a five-year retention plan that will pay Bendapudi $200,000 per year if she remains with the university. The annual payments will begin at the conclusion of each year, beginning July 1, 2022.

“When she became president in 2018, Neeli accepted a smaller salary than her predecessors and many of her peers, saying she felt she needed to earn the compensation,” Nixon said. “While she did not approach us about a raise, she has clearly earned it.”

The board voted to delegate authority to its executive committee to complete Bendapudi’s new contract by the end of July.

“This compensation structure does not increase her base salary but merely transitions contingent items to her base salary. The retention tool and the other items also put her on par with other university presidents,” said Nixon, stressing that Bendapudi’s growing national reputation makes her an attractive candidate for other jobs across the country.

“Neeli is a superb leader, and we value her. We want to keep her at the helm of UofL for years to come.”

In other action, the board:

• Elected the following officers for 2021-22: Mary Nixon, chair; Raymond Burse, vice chair; Diane Medley, treasurer; Scott Brinkman, secretary; and Jake Beamer, assistant secretary. In addition, the board appointed Jim Rogers and Ugonna Okorie, Student Government Association president, to the Executive and Compensation Committee.
• Ratified the Executive and Compensation Committee approval of the
• Approved the president’s recommendation to award a one-time $1,000 bonus to full-time faculty and staff and a one-time $500 bonus to part-time faculty and staff