UT System Board of Regents doles out additional $20 million

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Regent Alex M. Cranberg gives his opinion regarding budgeting for additional university structures during a Board of Regents meeting Thursday afternoon.

Photo Credit: Anastasia Garcia | Daily Texan Staff

The UT System Board of Regents allocated an additional $20 million to UT from the Permanent University Fund during their meeting Thursday.

This one-time increase will be an addition to the $168 million the University received last year from the endowment, said Chief Financial Officer Kevin Hegarty.

“We haven’t decided how we are going to use it yet,” Hegarty said.

The endowment is made up of lands the University owns and leases to oil companies and other industries for grazing purposes, he said. The money generated is invested by the University of Texas Investment Management Company and split between UT and Texas A&M University.

The money will not be used for recurring needs because it is only a one-time endowment, but the University budget office will decide how to move forward with the money, Hegarty said.

“[The endowment] will provide UT with additional money that does not cover the shortfall but will certainly assist,” said the board’s chairman Gene Powell during the meeting.

He said revenue generated from the lands was more than expected this year, and the Regents have decided to help UT and Texas A&M with extra money that will pay for students services and other needs.

Printed on 07/18/2011 as: Regents approve additional funding for University