The University of Texas System is governed by a board of nine regents, selected from different areas of the state, nominated by the governor, and appointed with the advice and consent of the senate. Subject to supervision of the Board of Regents and the authority it has vested in administrative officers, the General Faculty play a major role in the governance of the University of Texas at Austin, as outlined in Regents Rule 40101. A complete statement of the duties of the officers and a description of the organization and authority of the General Faculty, the faculties of the colleges and schools, divisions, and departments, is published in the Rules and Regulations of the Board of Regents.
As a public institution, the University receives part of its income directly from the state. The state constitution prohibits any appropriation from the general revenue for the construction of buildings, but appropriations for equipment and operating expenses have been made by each legislature since 1889. An additional source of income is the Permanent University Fund, which consists of revenue from the two million acres of land in west Texas granted to the University and its branches in 1876 and 1883. The land has been leased since 1884 for grazing and other purposes; since oil production began there in 1923, income from mineral leases and royalties has also been added to the fund. Income earned by the Permanent University Fund is called the Available University Fund. One-third of the Available Fund is dedicated to the support of the Texas A&M University System; two-thirds are dedicated to The University of Texas System for operating expenses and permanent improvements.
Tuition paid by students is a third source of income, and the proceeds of endowment funds donated by individuals and organizations provide important additional support to research and teaching at the University.