<p>Tuition money does go towards running the school. But relative to a private university, students of public institutions pay a lot less tuition. Universities cost a LOT to run, MORE than the UCs collect via tuition.</p>
<p>Money comes from public donations, tuition, alumni, grants, and (these days, not so much) from the state of CA.</p>
<p>Professors/upper level administrative staff get paid a lot, and they have to be recruited. Plus you also have the general admin staff, housing staff, janitors, gardeners, etc…</p>
<p>Add to that the cost of keeping the campus powered (electricity, natural gas, utilities), and the fact that many UC students receive financial aid, either from the university itself and/or from the state of CA/federal government.</p>
<p>It’s all very expensive. Go check out the UC budget if you’re curious.</p>
<p>I mean, think about the sheer magnitude: All of the UCs combined have ~159,000 undergrads divided among 9 campuses, for an avg of 17.6k undergrad students per campus.</p>
<p>So, each UC campus has to provide resources for on the order of 10^4 undergrads. The campus also collects tuition (theoretically, ignoring financial aid) of ~13k from each student, coming out to a total of 230 million dollars from tuition per campus, and ~2 billion for the whole UC system</p>
<p>The operating budget for the UCs is on the order of 10s of billions. So… 10^9/10^10 - undergrad tuition makes up like ~10% of the UC’s operating budget.</p>
<p><a href=“Budget Analysis and Planning | UCOP”>Budget Analysis and Planning | UCOP;
<p>Here’s a pdf with charts showing their source of funds and what they spend money on:</p>
<p><a href=“Budget Analysis and Planning | UCOP”>Budget Analysis and Planning | UCOP;
<p>13% of UC income comes from student fees, but 14% of UC expenditures go towards financial aid.</p>