Glossary and frequently asked questions

Funds generated through fees, grants or other designated activities that are generally limited to specific purposes based on how the funds are earned or awarded. RU funds must be used in alignment with those purposes, but may support institutional operations or priorities when allowable under the associated restrictions.

Funds primarily generated through tuition revenue and state appropriations that are available to support the university’s general operating and mission-related activities, including academic, administrative and institutional support functions.

These three terms are similar in meaning. Costs on sponsored projects are divided into two major categories: direct costs and Facilities and Administrative, or F&A, costs.

Direct costs are those costs that can be readily and specifically attributed to the scope of work of a particular program or project.

F&A costs — sometimes referred to as “Indirect Costs” or “Sponsored Research Overhead” — are project costs that cannot be readily and specifically credited on a project-specific basis. F&A costs include, for example, the personnel costs associated with purchasing supplies and equipment for sponsored project administration and compliance activities, accounting for project expenditures and providing laboratory custodial services. In addition, utilities (lights, heat, etc.), telephone and fax usage, computing resources, email, general office supplies, copying charges and similar items are necessary components of sponsored projects. These indirect costs must also be borne by various elements of the institution.

In budget communications, K-State will generally use F&A, or Facilities and Administration costs, to describe these costs.

Budget Transformation is a universitywide effort to modernize how K-State plans, allocates and stewards resources so we can deliver on our mission with greater clarity and resilience. It’s designed to build financial frameworks that stimulate growth, support excellence, ensure accountability and keep K-State nimble enough to seize tomorrow’s opportunities.

Over the next several years, K-State faces a set of real, shared financial pressures across higher education, but they also represent an opportunity to lead. The university has identified recurring annual pressures that could exceed $100 million, alongside significant one-time investments to address aging and antiquated technology and facilities. 

Budget Transformation is a proactive strategy to address these needs while protecting our mission and people. We are choosing to act while we can plan strategically rather than waiting for a crisis that forces across-the-board cuts. The goal is to lessen the short-term impact of broad cuts on colleges and units by using targeted levers that better align resources to priorities.

We are choosing to plan, to lead and to invest because that is what it means to be a next-generation land-grant university.

The intent is to reduce reliance on across-the-board cuts by combining growth, reinvestment and operational efficiency levers — so we can build capacity in areas where K-State has strength and opportunity, and deliver on our next-generation land-grant vision.

We are aligning our budgeting with who we are becoming.

This work is a stewardship strategy that supports K-State’s vision to lead as the next-generation land-grant university: taking care of our people, modernizing infrastructure, strengthening research competitiveness and improving how we operate as One K-State.

Planning and initial implementation for the Budget Transformation Initiative has been occurring in four phases:

Phase 1: Discovery and Planning, September 2025-January 2026

Phase 2: Design and Validation, February-July 2026

Phase 3: Comprehensive Training and Launch, August-October 2026

Phase 4: Measurement and Optimization, November 2026 and beyond

A detailed timeline is available on the Budget Transformation Initiative website.

To lead and support the Budget Transformation Initiative, two governance committees were charged in early 2026 to advance the work forward.

The Executive Budget Committee, or EBC, is responsible for final decision-making related to major budget levers, sequencing, implementation and alignment with institutional priorities, external obligations and the Next-Gen K-State strategic plan. The EBC is committed to timely, transparent and institutionally aligned outcomes.

The Advisory Budget Committee, or ABC, focuses on the development, testing and refinement of budget models and performance metrics; monitors implementation impacts; and provides data-informed recommendations to the EBC. Transparency, consistency and attention to major unit-level implications are central to this committee's charge.

See a complete list of Budget Transformation committee members on the Budget Transformation Initiative website.

Phase 1:

During the Discovery/Planning phase of the initiative from September 2025-January 2026, the Budget Transformation Initiative was led by a senior leadership team and five functional working groups. The working groups identified opportunities within their areas of focus with an eye toward maximizing resource flexibility and utilization and made recommendations to align financial resources with our Next-Gen K-State strategic plan.

See a complete list of Phase 1 working group members on the Budget Transformation Initiative website.

Yes. The initiative engages established governance groups and consults colleges and units through targeted subcommittee work on key design elements, including performance metrics and implementation. Input from these groups will directly inform recommendations before final decisions.

A core commitment is transparent communication — clarifying what is changing, why it matters and how it supports our shared future. Though in-progress committee work will remain in confidence, we will share details as decisions are made, with clarity about what is changing, why it matters, how it supports our shared future and how implementation will be achieved successfully.

Communications also are archived on the Budget Transformation Initiative website, so K-Staters can stay updated.

If projected revenues are not realized or external funding levels change, the university would reassess performance and financial assumptions and revisit available levers within the model.

Because this is a universitywide effort, it includes several levers — some focused on growth, some on reinvestment and some on operational efficiency.

From a 50,000-foot view, the Budget Transformation Initiative will produce a framework that leverages several factors to:

• Reward growth and performance in line with our strategic plan.

• Invest in people — especially compensation — through a planned, phased approach.

• Modernize systems and infrastructure to operate as a next-generation land-grant university.

• Pursue operational excellence as One K-State.

• Strengthen research competitiveness and stability.