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doc14071 Financial_Exigency_Policy.pdf
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"text": "KENTUCKY STATE UNIVERSITY",
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"text": "Policies and Regulations",
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"text": "POLICY TITLE:\nFinancial Exigency"
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"text": "APPLIES TO:\nAll Departments and Units\nFaculty, Staff, and Students"
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"text": "ADMINISTRATIVE AUTHORITY:\nKentucky State University Board of Regents\nOffice of the President"
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"text": "APPROVED BY:\nKentucky State University Board of Regents"
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"text": "EFFECTIVE DATE:\nAugust 8, 2025"
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"text": "NEXT REVIEW DATE:\nAugust 8, 2028"
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"text": "Kentucky State University (KSU) recognizes that declaring financial exigency is an extreme and serious measure. It is to be taken solely when essential to preserve KSU's institutional integrity, ensure its long-term financial stability and viability, and enable it to continue fulfilling its core educational mission during severe financial circumstances. This policy is invoked only as a last resort after all other feasible cost-saving and revenue-generating measures have been explored and implemented, or have been determined to be insufficient to alleviate the financial crisis."
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"text": "The authority to declare financial exigency resides exclusively with the KSU Board of Regents, upon recommendation of the President or by the Board's own initiative. This policy ensures due diligence, robust consultation, and transparency throughout the process of considering, declaring, implementing, and terminating financial exigency, and outlines the steps for managing such a declaration."
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"text": "A process of seeking information, advice, and recommendations from designated individuals or groups. Consultation involves providing access to relevant information, allowing adequate time for review and response, and giving good-faith consideration to the input received before making a decision. It does not necessarily imply that agreement must be reached."
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"text": "A severe financial crisis that imminently threatens the sustainability of KSU's core educational mission and its ability to operate as a viable institution. Such a condition is determined to exist exclusively by the Board of Regents pursuant to KRS Chapter 164 and applicable laws. Indicators that might lead to an assessment of financial exigency include, but are not limited to:"
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"text": "Significant, structural, and recurring operational deficits over multiple fiscal years that deplete reserves and cannot be eliminated through standard budgetary adjustments.",
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"text": "External factors, such as catastrophic events or drastic, unforeseen reduction in funding, that render the current financial model unsustainable."
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"text": "It should be understood that these are indicators, and the presence of one or more does not automatically trigger financial exigency."
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"text": "An ad hoc committee, with representation from key university constituencies, convened by the President to thoroughly assess KSU's financial condition. The advisory committee is responsible for reviewing all relevant financial data, evaluating the effectiveness of prior resource management efforts, exploring all viable alternatives to exigency, soliciting campus-wide feedback, and making a formal recommendation to the President regarding a potential declaration of financial exigency."
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"text": "The Board of Regents may independently initiate consideration of financial exigency following its own assessment of KSU's financial status."
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"text": "The Board, through its statutory authority, may declare that KSU is in a state of financial exigency without the input of the administration, faculty, staff, or students."
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"text": "Alternatively, the Board may discuss the possibility of financial exigency with the President and other administrators at a regular or special meeting, providing its rationale and any supporting financial data, and may direct the President to undertake specific assessments or convene the FEAC as outlined below.",
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"text": "The Vice President of Finance & Administration, based on ongoing financial monitoring, budget projections, analysis of key financial indicators, and the insufficiency of implemented retrenchment measures, shall formally advise the President in writing if financial conditions may warrant the declaration of financial exigency. This advice shall include a summary of the financial situation and relevant data."
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"text": "The President must submit the complete financial exigency plan to the Board of Regents for its review and formal approval before implementation of actions that are irreversible or have significant long-term impact."
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"text": "Financial exigency may only be terminated when the Board of Regents, after reviewing relevant data and petitions, formally declares by vote in an open public session that the state of financial exigency no longer exists due to the significant and sustained improvement of KSU's financial conditions."
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"text": "Following the formal termination of financial exigency, KSU shall prioritize the strategic restoration of resources, programs, and positions that support KSU's core educational mission and strategic priorities. These decisions will be made through KSU's regular strategic planning and budgeting processes, with appropriate consultation and input from relevant university constituencies."
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"text": "- Academic programs or administrative units that were eliminated or substantially reduced during financial\n exigency may be considered for reinstatement or enhancement only through the normal institutional\n approval processes for new programs or significant program modifications. There is no automatic\n reinstatement."
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"text": "To the extent feasible and consistent with university needs and policies, KSU will give good-faith consideration to qualified individuals whose positions were eliminated or who were laid off due to financial exigency should similar positions for which they are qualified become available within one year post-termination of exigency."
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"text": "Throughout all phases of considering, declaring, implementing, or terminating financial exigency, KSU is committed to ongoing, transparent, and timely communication with the KSU community through university channels. This includes providing updates on the financial situation, processes being followed, decisions made, and the rationale behind those decisions, to the extent possible and appropriate."
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"text": "If any part of this policy is found to be in conflict with applicable laws, regulations, or other governing KSU policies, the conflicting part of this policy will be considered invalid, but the remaining parts will stay in effect. The policy shall be interpreted to be consistent with all applicable legal requirements."
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