Project Kitty Hawk is designed to be a self-supporting initiative beyond the initial $97 million investment that was requested from the General Assembly. By 2026-27, the nonprofit organization will be expected to cover its operating costs with the revenue generated through its partnerships with UNC System institutions, and without an additional investment from the state.
The financial model suggests that Project Kitty Hawk may generate revenue beyond its costs in subsequent years. This would create an opportunity to reinvest surplus in improving services, lowering participation costs, and keeping tuition and fees affordable for students. Additionally, the model assumes no enrollment growth funding from the state for credit hours supported by Project Kitty Hawk. Instead, a special provision calls for tuition revenue generated by Project Kitty Hawk to be treated as an institutional trust fund. Tuition and fees will be competitive with other online providers.