June 30, 2011
State appropriations represent approximately 31.8% of all operating and non-operating revenues. The level of state support is a key factor influencing the University's overall financial condition. State appropriations are unrestricted to revenue and is included as non-operating revenue. State appropriations are used to support payroll and benefits for University employees.
The following details the net Commonwealth appropriations received by the University for fiscal years ending June 30, 2011, 2010 and 2009.
| 2011 | 2010 | 2009 | |
| Commonwealth appropriations | $ 25,363,422 | $ 24,630,377 | $ 26,435,199 |
| Federal appropriations | $ 5,042,652 | $ 6,507,463 | $ 4,977,599 |
| Total appropriations | $ 30,406,074 | $ 31,137,840 | $ 31,412,798 |
The University faces financial challenges to maintain and upgrade its capital assets including its infrastructure, buildings and grounds. A combination of revenue sources funds the University's investment in capital improvements, including appropriations provided by the Commonwealth of Kentucky. In fiscal year 2011, the Commonwealth provided no capital appropriations to the University. State capital appropriations plus federal sources play an important role in the University's efforts to address deferred maintenance projects.
The following table details the University's operating grant and contract revenue for fiscal years ended June 30, 2011, 2010 and 2009.
| 2011 | 2010 | 2009 | |
| Federal grants and contracts | $ 18,818,044 | $ 18,890,125 | $ 11,941,053 |
| State grants and contracts | 2,311,744 | 2,210,849 | 2,689,092 |
| Nongovernmental grants and contracts | - | 45,798 | 59,782 |
| Total grants and contracts | $ 21,129,788 | $ 21,146,772 | $ 14,689,927 |