Noncapital financing activities included state appropriations from the Commonwealth of Kentucky of $27.9 million, and a $23.0 million zero in stabilization funds from the Council on Postsecondary Education (the Council) as described in Note 8.
Capital and related financing activities include purchases and payments of $14.6 million expended for construction and acquisition of capital assets and for principal and interest payments on the retirement of the University's bonds and other capital related debt.
State appropriations represent approximately 35.0% of all operating and nonoperating revenues. The level of state support is a key factor influencing the University's overall financial condition. State appropriation is unrestricted to revenue and is included as nonoperating 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, 2022 and 2021.
Commonwealth appropriations 27,885,600 25,869,200
2022 2021
The following table details the University's grant and contract revenue for fiscal years ended June 30, 2022 and 2021.
| 2022 | 2021 | |
| Federal grants and contracts, operating | $ 24,969,290 | $ 22,544,984 |
| Federal grants and contracts, non-operating | 5,452,298 | 5,440,604 |
| State grants and contracts | 1,342,450 | 1,868,726 |
| Capital grants | 155,200 | -0- |
| Total grants and contracts | $ 31,919,238 | $ 29,854,314 |
The University continues to face financial challenges to maintain and upgrade its capital assets including its infrastructure, buildings, and grounds. A combination of revenue sources fund the University's investment in capital improvements. Those include appropriations provided by the Commonwealth of Kentucky as well as $58.0 million in financing from sale of certificates of participation as described in Note 2. Construction in progress consists primarily of renovations to Hunter Hall, repairing and paving of farm roads, replacement of exterior stairs at the Bell
14.