Some California residents assume that University of California campuses are primarily funded by the state. That has not been true for many years.
A major financial strength for UCLA is a diverse source of revenues that has become increasingly important over the past several years following the significant decrease in state funding in 2008. UCLA has realized growth in most revenue categories, including federal contracts and grants, medical professional fees and private gifts, as well as fees from out-of-state students.
UCLA’s fiscal management and operational efficiencies have helped the campus maintain positive net income. Assuming inflationary-like adjustments in state support, modest and predictable tuition increases and sustained current levels of enrollment by out-of-state students, UCLA anticipates maintaining positive financial results through realizing new revenues, carefully managing expenses and capturing additional efficiencies.
The largest percentage of UCLA revenues comes from the UCLA Health System (about 50 percent). Auxiliary enterprises such as student housing, food service and parking supply another large portion (25 percent). Research funding — primarily federal — contributes about 14 percent, while private giving contributes 4 percent. Total operating and nonoperating revenues amount to almost $6.8 billion annually.2016 revenue is $6.8 billion; $2264 million medical centers, $1767 million educational activities & auxiliary enterprises, $187 million other operating revenues, $747 million student tuition & fees, $468 million state educational appropriations, $931 million grants & contracts, $314 million private gifts and $137 million other non-operating revenues.
Figures on this page reflect preliminary, unaudited data as of October 2016. The Annual Financial Report for 2015–16 is in preparation and will be published in late fall.
Student tuition and the scholarship allowance
The pie chart above shows the net budget impact of student tuition and fee payments. The table below provides more detailed information. A portion of the student fees received by UCLA is set aside for scholarship assistance. In this way, tuition payments — especially from international and out-of-state students, who pay a considerable supplemental tuition — help to subsidize California students. The scholarship allowance is one of many ways UCLA acts to preserve access and affordability.2016: tuition and fees paid is $855 million, summer sessions is $49 million, university extension is $92 million and scholarship allowance is negative $249 million; total is $747 million. 2015: tuition and fees paid is $822 million, summer sessions is $49 million, university extension is $91 million and scholarship allowance is negative $246 million; total is $716 million. 2014: tuition and fees paid is $782 million, summer sessions is $48 million, university extension is $83 million and scholarship allowance is negative $214 million; total is $699 million.