University of Kentucky president Eli Capilouto announced Monday that the budget cuts for the fiscal year 2013-2014 will be softer than what was first planned, owing to the increased enrollment and high tuition revenue.

Tuition revenues for the year are projected to be about $11.9 million more than originally budgeted.

The university had estimated that about 4500 students will be in the first-years class, but fortunately for the university, the enrolment number has crossed 4,600 and a high proportion of them are not from the state who need to pay double the in-state tuition fee.

Though it is good news for the university, Capilouto was quick to point out the institution must more aggressively tackle retention and graduation rates, which have stalled.

Among the budget measures put forward Monday, a tentative budget cut for academic units was pared from 4.2 to 2.1 percent, and for administrative units the budget cut of 6.4 percent was reduced to 5 percent.

Other measures were also announced by Capilouto, who said that the university is the first choice for the Kentucky Community for both graduate and undergraduate studies and the institution had the responsibility to keep it that way by maintaining the graduation and retention rates.

"We must act now to put in place the strategies to improve our retention and graduation rates," he said. "That is something we all ‒ faculty, staff and current students ‒ play an important role in improving as we move forward together."

Capilouto said the modifications to the budget are also the result of feedback he's received as part of an extensive budget process he outlined earlier this year. Thus far this school year, Capilouto has met with faculty and staff from more than half of the UK's 16 colleges, a process he will complete before the end of the fall semester.

He also said he has already met with the university's deans and academic chairs to discuss budget planning. He emphasized that he has continued to meet regularly with small groups of faculty, students and staff, and engaged in extensive dialogue with the University Senate and Senate Council regarding the budget measures.