It is the position of the Board of Trustees of Auburn University that primary responsibility for provision of adequate teaching and research facilities for Auburn University resides with the State of Alabama. Such capital support should come from State underwritten bond issues or direct appropriations. Historically, the University has received inadequate State funding to meet totally either regular operating requirements or physical facilities renovation and construction needs. Therefore, Auburn must rely upon its other primary source of revenue -- student tuition and fees -- to underwrite capital projects and to support operating expenditures.

     In the absence of sufficient continuing capital funding from State sources, Auburn University has found it necessary to incur debt, and to pledge increasing amounts of tuition and fees income to underwrite such obligations. Recognizing that there must be some balance between tuition revenues available for general University operations and those reserved for debt service, it is the policy of the Board of Trustees that no more than 25 percent of the University's annual tuition and fees income shall be committed to amortization of debt.

ADOPTED: 12/1/89