<p>The state legislature sets the budget, including the amount charged for tuition. </p>
<p>At a high level, UA’s revenue comes from the following sources:</p>
<p>State Appropriation: $142 Million
Other State Funds: $23 Million
Federal Funds: $87 Million
Tuition and Fees: $422 Million
Other Sources: $55 Million</p>
<p>It’s out of this pool of money, that the $120 million for scholarships get funded. Many sources of revenue are “dedicated” to certain expenses (like the Federal funds), so the university doesn’t have complete flexibility when it comes to allocating out resources. The bulk of the funding for scholarships comes from Tuition and state appropriations. Lower either one, and you’ll need to lower scholarship funding (or do cuts in other areas). </p>
<p><a href=“http://budget.alabama.gov/pdf/buddoc/BudDoc2014.pdf”>http://budget.alabama.gov/pdf/buddoc/BudDoc2014.pdf</a></p>
<p>I guess it goes without saying that being a major land grant university, UA is an important state (and Alabama resident) asset. I’m sure Alabama tax payers are willing to be flexible, and balance improving the university vs. serving in-state students.However, at some point, as more and more in-state students get rejected for OOS students, they may decide UA has gone to far (as other states have done in the past), which will lead the the state legislature setting a % limit on OOS students. </p>
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<p><a href=“http://www.washingtonpost.com/local/education/loudoun-supervisors-push-to-limit-out-of-state-students-in-virginia-universities/2013/11/22/76748438-51f9-11e3-9fe0-fd2ca728e67c_story.html”>http://www.washingtonpost.com/local/education/loudoun-supervisors-push-to-limit-out-of-state-students-in-virginia-universities/2013/11/22/76748438-51f9-11e3-9fe0-fd2ca728e67c_story.html</a></p>