Tarleton State University's operating budget for the 2011-12 fiscal year was approved Monday during a special called meeting of The Texas A&M University System Board of Regents. The approved budget for the upcoming fiscal year totals $126.9 million, which reflects a 9.6 percent increase over the 2010-11 budget.?University officials say the 2012 budget, which rose by approximately $12.2 million, will cover slight increases in personnel costs, scholarship funding and utility costs, as well as the establishment of the Midlothian Higher Education Center. The operational budget approved by regents this week represents the largest in Tarleton's 112-year history.?"Tarleton is making incredible moves forward while facing difficult budgetary challenges and opportunities presented by state budget reductions and enrollment growth," said Dr. F. Dominic Dottavio, president of Tarleton. "What we're accomplishing with less is quite remarkable, thanks to careful planning by faculty and staff across the entire campus. Through their hard work, we were able to economize Tarleton's operations and more closely align the budget with our mission and strategic goals."?The new budget includes an increase in revenues for Tarleton of just over 8 percent, or $11.9 million, from $123.7 million in 2011 to $135.6 million in 2012. The university's 2011-12 budget includes approximately $36 million appropriated by the 82nd Texas Legislature, representing a 9 percent decrease in state funding compared to the previous year.?University officials say reductions in state appropriations have been offset by increases in other revenues, primarily through tuition and fees. As a result of Tarleton's enrollment growth, the budget reflects an increase of approximately $6.7 million generated from tuition and fees compared to 2011.?Revenues outlined in the budget include: $55.4 million generated from student tuition and fees, $33.6 million from contracts, grants and gifts, $20.6 million from sales and services and an additional $2.7 million from investment income.?The budget also reflects an approximate $3.5 million increase in revenues from sales and services, largely due to activity associated with two new residential living and learning complexes, including Legacy Hall and Bosque Crossing Apartments. Contract and grant revenues also increased by $7.8 million, primarily due to increases in estimated Pell grant awards.?The budget outlines a total of $135.5 million in expenditures and transfers, as well as funding to service the university's debt during the upcoming fiscal year, an overall 8.9 percent increase, which includes $66.3 million for personnel costs, $37 million for maintenance and operations, $30 million for scholarships and grants, and approximately $4.7 million for utilities.