CPE approves $17.5 million disbursement to KSU
May 03, 2022
At its April 15 meeting, the Council on Postsecondary Education took actions to address financial instability at Kentucky State University as specified in HB 250, enacted in April.
Topping the list was approval of Kentucky State University’s request for a disbursement of $17.5 million to address the current year budget shortfall through June 15.
“Getting KSU resources to address immediate needs was a priority,” said CPE President Aaron Thompson. “The next step will be to develop a plan of action to execute the responsibilities outlined in HB 250, working with KSU and its newly appointed board of regents. Together, we can move the institution forward to financial stability and overall success for the benefit of the students and the community it serves.”
Before the June Council meeting, CPE staff will work with KSU staff and its board of regents to develop a final funding request for FY 2022. The time will be used to determine final payroll amounts, evaluate cash flow needs for transition from FY 2022 to 2023 and year-end closeout expenses.
Getting KSU resources to address immediate needs was a priority. The next step will be to develop a plan of action to execute the responsibilities outlined in HB 250, working with KSU and its newly appointed board of regents. Together, we can move the institution forward to financial stability and overall success for the benefit of the students and the community it serves. - CPE President Aaron Thompson
House Bill 250 appropriated $23 million to KSU in fiscal year 2021-2022 and created the KSU loan repayment trust fund. It requires CPE to create and oversee a management improvement plan for KSU and declares a state of financial exigency at KSU. The bill appropriates an additional $5 million in 2022-2023 and $10 million in 2023-2024 to CPE for distribution to KSU upon meeting goals and benchmarks contained in the management improvement plan.
In compliance with the plan outlined in the bill, KSU will conduct a review of all departments and academic programs and eliminate those that are no longer serving the goals of the university and its students. Per the bill, CPE will contract with an independent third party to make recommendations on the university's structure and evaluate performance.
The Council also approved an expenditure approval policy for KSU that sets the process for approving KSU expenditures in accordance with the legislation. HB 250 states CPE approval is required for any expenditure greater than $5,000 and requires the university to provide a monthly report of finances to CPE, which will provide a monthly update on the financial status of the university to the governor and the Legislative Research Commission.
The Council’s financial oversight will continue until it reports to the governor and the Legislative Research Commission that the university's finances are stable.
Last Updated: 5/4/2022