The University of Houston will see a 6.9 percent increase in overall state funding for the next two years to support many of its key strategic objectives such as research and capital improvements.

The 80th Texas Legislature has allocated $436 million to UH for fiscal years 2008 and 2009 compared to $408 million the university received for fiscal years 2006 and 2007. The recent appropriation includes funding for such items as UH’s wind energy alliance and the Diesel Vehicle Research and Testing Facility.

The Legislature gave a boost to UH’s research efforts as it appropriated $5 million to the university to help fund the new federal wind energy initiative. With state funding in place, the U.S. Department of Energy granted the UH-led Lone Star Wind Alliance $2 million to construct a large turbine-testing facility in Ingleside, Texas, north of Corpus Christi.

The Legislature allocated to UH $7.5 million per year for 2008 and 2009 from the Research Development Fund, which supports research infrastructure. State lawmakers also granted UH $4.1 million a year for the next biennium from the Texas Competitive Knowledge Fund, which supports research faculty at UH, The University of Texas at Austin and Texas A&M and Texas Tech universities.

Additionally, legislators facilitated the transfer of $1.5 million for UH’s Diesel Vehicle Research and Testing Facility. The university launched the project last year to test new technologies that will reduce emissions from the city of Houston’s 2,800-vehicle fleet.

As part of the overall funding, UH received monies from the Higher Education Fund (HEF), which is used to maintain and improve facilities and purchase equipment and library books.

“This vital funding helps us to provide our students with the tools they need to succeed in their classes and our faculty with the well-equipped facilities they need for their research,” said John Rudley, UH interim president.

UH’s portion of HEF went from $23.5 million in fiscal year 2007 to $35.3 million for the next two fiscal years, an increase of $11.8 million annually. Other funding successes include the appropriation of $2.5 million to cover some of the costs incurred in 2005 when UH enrolled students from New Orleans universities affected by Hurricane Katrina.

“The Legislature also funded tuition revenue bonds, which we will use to refurbish and enhance many of the university’s older science labs,” Rudley said.

In other areas that will affect UH, the Legislature increased by $93 million the Toward Excellence, Access and Success grant program, which provides financial awards to help eligible students attend a public institution of higher education in the state. UH’s share of the grant program is expected to increase from $9 million in fiscal year 2007 to $14 million in fiscal year 2008. The Legislature also raised funding for work-study programs from $10 million to $15 million statewide.

“This additional funding from the Legislature helps us keep tuition rates low, which helps to ensure access to a college education for all of our students,” Rudley said.

Lawmakers also appropriated $100 million statewide for performance incentive funding. The program will reward public universities for the number of graduating students, especially in critical fields such as computer science and nursing. Legislators also created the Cancer Research Institute of Texas, through which UH will be eligible for research funding.

“We are grateful not only for the support of our legislators, especially the members of the Gulf Coast delegation, but also to the leadership of Gov. Rick Perry, Lt. Gov. David Dewhurst and Speaker of the House Tom Craddick,” Rudley said.

Staff Reports