The board that oversees the state's public universities has unanimously approved a $1.8 billion operating budget for the University of Arizona and its medical facilities next year, a 10 percent increase over this year's budget.

The plan will give the UA about $172 million more to work with in the 2014 fiscal year, which starts July 1.

About $8 million of that will go toward further developing the UA College of Medicine in Phoenix.

The UA also plans to improve online education, make critical building repairs and shore up programs to improve retention and graduation rates.

The bulk of the UA's revenue, about $666 million, will come from student tuition and fees in the spending plan approved Thursday by the Arizona Board of Regents at a meeting in Flagstaff.

The budget includes a 3 percent increase in tuition and fees for most UA students. The annual tab for a typical undergraduate at the main campus will come in at about $10,400.

The UA also will receive about $267 million from state general fund, about 5 percent more than last year but still nowhere near what the Legislature used to provide before the recent recession prompted drastic cuts to higher-education spending.

Most of the UA's spending - more than $1 billion - will go toward wages, salaries and benefits for the university's workforce.

UA employees, whose pay has been frozen since 2007, are expected to receive raises of between 1 percent and 4 percent.

About $480 million of UA's spending will go toward rent, utilities, office supplies and equipment and other operating costs, about $66 million - or 16 percent - more than this year.

The regents also approved a $399 million UA capital budget, which covers several previously approved projects.

They include a new $63 million engineering building, a $79 million chemical sciences building and renovations to Old Main, Bear Down Gym and McKale Memorial Center.

Plans call for the sports-related projects to be funded in large part by UA donors.

Contact reporter Carol Ann Alaimo at or at 573-4138.