Budgets for Iowa's three public universities are rising with additional tuition revenue

Universal tuition hikes at each of Iowa's three public universities have sparked a rise in operating budgets.

The Iowa Board of Regents approved budget increases for fiscal year 2025 at Iowa State University, the University of Iowa, and the University of Northern Iowa during its July meeting on Wednesday.

Each school anticipates a significant bump in tuition revenue, which sparked the request for beefier budgets.

Iowa State's budget is rising the most ― its $725.5 million operating budget is a 5% increase over last year, while the University of Iowa's was approved for a 2.6% increase to $822.8 million. UNI's operating budget grew to $174.2 million, a 4% rise over fiscal year 2024.

The board approved a tuition hike for undergraduate and grad students during its May and June meetings, which initiated a 3% increase at Iowa and Iowa State, while UNI raised its tuition by 2%.

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What is Iowa State University's budget next year?

Iowa State expects to bring in an additional $27.8 million in tuition, contributing heavily to the university's $34.4 million total revenue increase.

ISU's 2024 fiscal year budget was $691.1 million.

Its student financial aid budget increased by $9.5 million as well.

Citing a need to recruit and retain faculty, Iowa State's 2025 fiscal year budget includes a 3% salary increase for faculty and staff.

Last year, Iowa State received an extra $2.8 million from the state to support its agriculture innovation and science, technology, engineering and mathematics programs. Iowa State President Wendy Wintersteen said those funds have helped the university invest in 26 faculty and staff while supporting six initiatives.

"Workforce and innovation are core to Iowa State's mission," Wintersteen said. "As the state's only land grand institution, we really appreciate this additional support from the state."

Tuition fuels University of Iowa's budget increase

The University of Iowa expects to bring in an additional $16.8 million from tuition, aiding its $20.8 million increase in revenue for the upcoming fiscal year.

The University of Iowa's 2024 operating budget was $802 million.

The university anticipates a slightly larger incoming freshman class with a higher percentage of nonresident students this year. The student aid budget is also expected to increase by $2.8 million.

Additionally, the University of Iowa expects its utility expenses to increase by roughly 5%.

University of Iowa President Barbara Wilson said academic spending has doubled in the past two decades while administrative costs have been cut by about 30%.

"One of the things we focus on at Iowa is how do we become more and more efficient, so we can put more and more money into the academic side of our operations," Wilson said. "We're going to continue to drive those trends forward as much as we can as we look to the fiscal year 2025 budget, as well as future budgets."

How will the University of Northern Iowa's budget increase next year?

UNI anticipates a $7.1 million revenue increase, $4.5 million will come from tuition. The school's 2024 fiscal year budget was $167.1 million.

With an expected enrollment increase, the university has raised its student aid budget by $1.2 million. The $174.2 million accounts for 3% raises for UNI faculty as well as a 2% raise for merit employees.

UNI President Mark Nook said the university's priorities are student success and its long-term health when making decisions about its budget.

"We are really focusing on making strategic decisions and investments that make it easier for our students to get and complete an education at Northern Iowa," Nook said.

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Iowa's universities project additional athletic revenue

The Iowa Capital Dispatch reported last week that both Iowa and Iowa State are expected to experience significant boosts in athletic revenue thanks to the success of women's sports. The University of Iowa is projecting a total income of more than $150 million for fiscal year 2025, just over a 7% increase from last year.

ISU is expecting to generate roughly $114.2 million in revenue for fiscal year 2025, $2.7 million more than last year.

The University of Northern Iowa expects a slight drop in athletic revenue, down $100,000 from $14.8 million to $14.7 million.

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Celia Brocker is a government, crime, political and education reporter for the Ames Tribune. She can be reached at CBrocker@gannett.com.

This article originally appeared on Ames Tribune: Budgets for Iowa's three public universities are rising with additional tuition revenue