Kansas University’s budget has begun showing the effects of federal cuts to research, with state cuts to higher education poised to do damage down the road.

Federal grants and contracts at KU decreased $23.4 million, or 11.3 percent, from the 2012 school year to 2013, according to KU’s recently released 2013 annual financial report.

That largely reflects the completion of university projects funded by federal economic stimulus dollars. However, some of the drop was due to the shrunken budgets of the National Science Foundation and National Institute of Health, including automatic sequestration cuts that went into effect in March 2013.

Kevin Boatright, a spokesman for the KU Office of Research, said the university began seeing effects of sequestration early last year, and next year’s financial report will show more sequestration effects felt through the latter part of 2013.

At the same time KU’s revenues rose in several areas. Tuition revenue went up 5 percent on price increases. Housing revenue increased 12.7 percent as rental rates rose by 2.5 percent and Gertrude Sellards Pearson Hall was re-opened to students after renovations.

Athletics revenue increased by almost $20 million, or 26.7 percent, and private gifts rose by $11.2 million, more than 25 percent, over 2012.

State appropriations, the third largest revenue source for KU, increased slightly, by $617,000, from 2012. That figure doesn’t reflect state cuts to higher education, including $13.5 million in cuts at KU over two years, passed by the state legislature last year. The cuts began rolling out in 2013, after the close of KU’s fiscal year, and will show up in next year’s financial report.

KU spokesman Jack Martin said the administration is watching both federal research funding and cuts in state appropriations, which will be most deeply felt at the KU Medical Center.

Both topics have been at the forefront of the university’s lobbying and outreach strategy in recent months.