This portion of the book will provide a framework towards understanding state appropriations at Indiana University.

State appropriations refer to funds allocated by the state legislature to public institutions such as IU. These funds are typically used to cover a portion of the institution’s daily operating expenses or student financial aid. State appropriations are classified as non-operating revenue on the income statement. Properly accounting for state appropriations ensures that the university’s financial statements accurately reflect the funding received from the state government and how it is utilized. Understanding state appropriations also helps IU properly budget, aids with financial planning, and demonstrates accountability to stakeholders, including state legislatures and taxpayers.