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KENTUCKY STATE UNIVERSITY BIENNIAL BUDGET REQUEST FY2020-2022

2020-2022 BIENNIAL BUDGET REQUEST

• Submittal Letter
• Overview Narrative
• Form C-1/C-2
• Form C-3
• Form A-1/A-2
• Form A-3
• Form A-4
• Form A-5
• Form A-6
• Postsecondary Ed E Form Substitute
• Operating Budget Summary Record F
• Summary Record P
• Form B-1/B-2 Priority 1
• Form B-3 Priority 1
• Form B-1/B-2 Priority 2
• Form B-3 Priority 2
• Form B-4
• Exhibit 3A-p1
• Exhibit 3B-p1

• Capital Budget Record CBR-01
• Capital Project Record CBR-02 - Asset Preservation
• Capital Project Record CBR-02 - Academic & Student Success Center
• Capital Project Record CBR-02 - New Residence Hall
• Capital Project Record CBR-02 - Health Sciences Center
• Capital Project Record CBR-02 - Business and Tech Center
• Capital Info. Tech. System CBR-04 - Upgrade Infrastructure
• Capital Info. Tech. System CBR-04 - Enterprise Resource Planning
• Capital Info. Tech. System CBR-04 - Expand Campus Communications

OFFICE OF THE PRESIDENT

November 12, 2019

Mr. John E. Chilton State Budget Director Office of the State Budget Director 702 Capitol Avenue, Room 284 Frankfort, Kentucky 40601

Mr. Jay D. Hartz, Director Legislative Research Commission 700 Capital Avenue, Room 300 Frankfort, Kentucky 40601

Dear Mr. Chilton and Mr. Hartz:

Please find enclosed the 2020-2022 biennial budget request submission for Kentucky State University. The submission includes:

• A budget submission overview which delineates the dollar amounts requested by the University and the purpose of the request.
• The required printed copies of the budget request including forms and information required by the 2020-2022 Branch Budget Request Manual.
• A priority ranking of the operating and capital budget requests.

Kentucky State University thanks you for your continued strong support of higher education for the Commonwealth. Sincerely,

Sincerely,

M. Christopher Brown II, Ph.D. Eighteenth President

Enclosures

president@kysu.edu • 502.597.6260 • Hume Hall, Suite 201 400 E. Main Street • Frankfort, KY 40601 • kysu.edu

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Kentucky State University 2020-2022 Biennial Budget Request

Budget Overview

The 2020-22 Biennial Recommendation of the Kentucky Council on Postsecondary Education (CPE) was approved October 31, 2019. The CPE budget recommendation included funding requests for all Kentucky higher education institutions for continuing operations and for strategic investments in statewide priority areas.

Kentucky State University (KSU) is currently engaged in a strategic planning process that will guide the transformation of the University. This process is closely aligned with the CPE’s current statewide strategic planning initiative. The University’s 2020-2022 Biennial Budget request is structured to address three primary needs that have emerged from both the internal strategic planning process and from intensive discussions with CPE:

• oRecruitment and retention of students
• oAcademic Quality
• oAsset Preservation

Another significant issue addressed in the University’s budget request is full funding for the Land Grant Match for the University. KSU receives funds from the National Institute of Food and Agriculture, United States Department of Agriculture to support agricultural research (Evans-Allen Research Program) and extension programs. These funds are specifically designated for 1890 Land Grant institutions and require that the federal award be matched by the state on a one to one basis.

KSU does not currently receive enough funding from the Commonwealth to support the match. While the Department of Agriculture can grant a waiver, there is no guarantee from year to year that they will.

The major components for Kentucky State University in the context of the overall request for postsecondary education in the Commonwealth are summarized in the following narrative:

KSU Land Grant Match

Kentucky State University is an 1890 land grant institution. As such, it is eligible to receive federal grant funds appropriated by Congress each year to support land grant program activities and services. The federal funds must be matched dollar-for-dollar by the state, from non-federal sources, to ensure that KSU will continue to receive its full allotment of federal grant funds. Meeting the land grant funding matching requirement is an obligation of the state, not Kentucky State University. Other sources of federal funds and tuition and fee revenue cannot be used to meet the match.

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In 2018-19, KSU received $6,953,205 in U.S. Department of Agriculture administered federal grants to support its land grant program. That same year, after increasing the General Fund appropriation for Land Grant match by $290,000, the Council on Postsecondary Education staff and campus officials agreed that the university had $6,941,400 in its net General Fund base to meet the match, so the funding gap that year was -$11,805.

As the analysis above demonstrates, the Commonwealth of Kentucky is not meeting the required federal match for KSU's land grant program. Under conditions of the grants, the university is authorized to receive and expend federal funds to support land grant program activities and services, provided those funds are either matched by the state, or KSU receives a waiver absolving it of that requirement. In previous years, the university has requested and received a waiver, but there is no guarantee that waivers will be granted going forward.

The Council on Postsecondary Education recommends appropriations of $7,148,800 in 2020-21 and $7,148,800 in 2021-22 to provide a sufficient amount of recurring state funds to meet federal match requirements for Kentucky State University's land grant program.

These funds will help sustain the effectiveness and impact of outreach, service, and applied research at KSU's land grant program.

Performance Funding

The Council on Postsecondary Education requested Performance Funding as part of the 2012-14, 2014-16, and 2018-2020 biennial budget submissions. For the upcoming 2020-22 biennium, the Council is once again recommending appropriations for performance funding.

Kentucky's public colleges and universities have experienced seven operating budget cuts over the past ten years. The Council and campus officials strongly encourage the General Assembly to finance the proposed performance funding approach with new appropriations, instead of carving funds out of existing base operating funds of the postsecondary institutions.

For the upcoming biennium, both university and two-year college sectors shall include a stop-loss provision for fiscal year 2020-2021 limiting the reduction in funding to any institution to two percent (2%) of that institution's formula base amount. Kentucky State University and CPE staff believe this requirement should be addressed in the 2020-2022 budget bill in the same manner as the 1.0% stop loss was handled last biennium; namely, by reducing each institution's fiscal year 2020-21 regular appropriation by two percent of its 2019-20 adjusted net General Fund and transferring the resulting $14,997,800 total to the PEPF. This will result in a -$372,200 cut to the FY2021 KSU regular appropriation.

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Asset Preservation

Kentucky State University, like all universities, has invested millions of unmatched dollars in maintaining our facilities. In fiscal year 2019, KSU spent approximately $2.1 million on asset preservation and maintenance. For the 2020-22 biennium budget, CPE has requested $400 million, $200 million each year, for asset preservation. Based on the VFA study, it was projected that Kentucky universities would need approximately $7.3 billion to maintain and preserve capital assets. During the past 6 biennium, since 2008, the state has funded approximately 3.6% of the projected need.

Of the $200 million in asset preservation funding requested, Kentucky State University will receive approximately $10.7 million, of which 50% will need to be matched using tuition and fee restricted funds or state bonds. The $16 million in asset preservation funding will only address 14% of the $113 million in renovation and renewal funding that is needed. If awarded, these funds will be spend on replacing and repairing roofs for many of our buildings, and updating classrooms and residence halls. Many of our residence halls are 30-40 years old hand have not been properly maintained due to lack of funding.

KSU Student Recruitment and Retention

Over the past 6 years, Kentucky State University has experienced a steep decline in both its student headcount and full-time equivalent (FTE) student enrollment. Between fall semesters 2012 and 2018, KSU's student headcount enrollment decreased by 806 students, or 23.4 percent, and its FTE student enrollment decreased by 946 students, or 39.5 percent. While, several economic factor may have caused the decline in enrollment, fiscal dedication to recruitment and retention may have contributed as well.

The loss in student enrollment resulted in marked declines in both gross billable tuition and fee revenue and total public funds during this period. In fact, between fiscal years 2011-12 and 2017-18, KSU's gross billable tuition and fee revenue decreased by $7.4 million, or 39.2 percent (CPE, Comprehensive Database).

Among institutions in the comprehensive sector, the set of circumstances described above is unique to Kentucky State University. During the same period, the average increase in gross tuition and fee revenue among comprehensive universities other than KSU was $28.6 million, or 20.5 percent, and the average increase in total public funds revenue was $22.3 million, or 10.4 percent (CPE, Comprehensive Database).

The loss in total public funds revenue has placed considerable stress on KSU's operating budget. Campus officials responded by implementing a number of cost savings and cost avoidance strategies, including personnel layoffs, a voluntary separation program, and elimination of vacant positions. Actions to stabilize university finances resulted in a balanced budget for Fiscal Year 2019, but due to lack of funding for asset preservation and increased pension costs projections indicate that, absent external intervention, KSU will be in an untenable financial position within the next two years.

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These funds will support student recruitment and retention activities at Kentucky State University, including maintaining retention and persistence program staff, implementing an academic advising and contact system and a warning and probation system, expanding academic support programs, and expanding student financial aid programs. While not included specifically in the current biennium request, requests for additional funding in future biennia will be reviewed on an as needed basis.

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• Postsecondary Ed Performance Fund 0 0 0 -372,200
• Special Appropriation 0 290,000 0 0
• Budget Reduction-General Fund -267,300 0 0 0

General Fund

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• Postsecondary Ed Performance Fund 0 0 0 -372,200
• Special Appropriation 0 290,000 0 0
• Budget Reduction-General Fund -267,300 0 0 0

General Fund

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2020-2022 Kentucky Branch Budget Baseline Budget Request: Expenditure Detail Summary Record All requested columns rounded to nearest $100

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KENTUCKY STATE UNIVERSITY

FORM A-4

Mission

Kentucky State University is a public, comprehensive, historically black land-grant university committed to advancing the Commonwealth of Kentucky, enhancing society, and impacting individuals by providing quality teaching with a foundation in liberal studies, scholarly research, and public service to enable productive lives within the diverse global economy.

University Profile

As it is delineated, the three-pronged mission of Kentucky State University (KSU) includes being a land grant HBCU that provides a liberal arts education in the tradition of developing productive, engaged citizens who are problem-solvers.

Kentucky State University is the most diverse of the public institutions of higher education in the Commonwealth of Kentucky. KSU values the importance of diversity on the University campus. KSU has a diversity plan consistent with the diversity policy requirements of the Kentucky Council on Postsecondary Education. A commitment to diversity helps create an atmosphere that encourages openness to differences and a respect for choices. KSU strives to represent the diverse world in which we live, with a diversity of opinions and cultures.

As an HBCU, Kentucky State University has a mission of providing opportunity to those who otherwise would not have been granted access to higher education. As a Kentucky Council on Postsecondary Education affiliated comprehensive university, it has an obligation to increase baccalaureate degrees.

Research has shown that African-American students attending HBCU's are more likely than their counterparts at other institutions to pursue a postgraduate education and become professionals. KSU has a special role to play in developing a diverse work force within the Commonwealth.

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FORM A-4 (CONT.)

For the upcoming biennium, subsection (9)(a)3 of the Performance Funding statute (KRS 164.092) stipulates that the funding formulas for both university and two-year college sectors shall include a “stop-loss provision for fiscal year 2020-2021 limiting the reduction in funding to any institution to two percent (2%) of that institution's formula base amount” (KRS 164.092). CPE staff believes this requirement should be addressed in the 2020-2022 budget bill in the same manner as the 1.0% stop loss was handled last biennium; namely, by reducing each institution's fiscal year 2020-21 regular appropriation by two percent of its 2019-20 adjusted net General Fund and transferring the resulting $14,997,800 total to the PEPF.

Subsection (9)(b) of KRS 164.092 reads that “[f]or fiscal year 2021-2022 and thereafter, hold-harmless and stop-loss provisions shall not be included in the funding formulas except by enactment of the General Assembly.” The clear meaning of this subsection is that, unless action is taken by the legislature in construction of the 2020-2022 Budget of the Commonwealth through bill language and appropriation amounts, all hold harmless and stop loss provisions will sunset in the second year of the upcoming biennium.

For 2020-21, funding for Mandated Programs and institutional operations less 2% of the adjusted net General Fund is requested on this “A form.” The “2%” represents the stop-loss and is transferred to the PEPF and is subject to redistribution according to the statute.

For 2021-22, at the advice of LRC budget review and OSBD, state General Fund is included on this A form for just the mandated programs. Please note that the Council, Council staff, and all institutional presidents and chief budget officers strongly recommend that the Governor and General Assembly keep a 2% stop-loss in place for 2021-22. To make that policy a reality, the funding in the institution's Performance Funding 2% Stop Loss "B forms" should be added to the institution's funding for 2021-22. Please note that there is a corresponding decrease in the budget request for the PEPF appropriation unit (requested by CPE), clearly showing that this transfer requires no additional state funding.

Justification to Extend the 2% Stop Loss in 2021-22

The impact of losing these provisions would be immediate and severe for Kentucky's two smallest universities, Kentucky State University (KSU) and Morehead State University (MoSU). For example, in the 2019-20 iteration of the university performance funding model, KSU's hold harmless allocation was $6,867,800 or 36.9% of its adjusted net General Fund appropriation in fiscal year 2019-20 and MoSU's hold harmless amount was $2,814,900 or 7.9% of its adjusted net General Fund that same year. Absent an infusion of new operating funds for the institutions—appropriated to the PEPF and distributed using the funding models—and barring any unanticipated large gains in performance at these institutions, it is estimated that KSU would lose more than a third of its funding that is available for educating students and MoSU would lose almost 8.0% of its similar funding. Six community and technical colleges (Ashland, Big Sandy, Hazard, Henderson, Madisonville, and Southeast) stand to lose a significant

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portion, on average over 20%, of their state General Fund support should the stop loss and hold harmless provisions be allowed to sunset. Other KCTCS institutions could also be negatively affected.

It was not the intention of Postsecondary Education Working Group (PEWG) members for Kentucky institutions to have to contend with fiscal cliffs like the ones facing KSU and MoSU. In fact, in a Goal and Guiding Principles document produced by a Funding Strategy Steering Committee of the working group, committee members agreed to a set of principles to guide funding model development, which included an imperative for the distribution mechanism to be “Reasonably Stable” and “not permit large annual shifts in funding to occur” (Report of the Postsecondary Education Working Group to the Governor and Interim Joint Committee on Education, Appendix B, December 2016).

In their final report to the Governor and Interim Joint Committee on Education, working group members did not recommend that hold harmless and stop loss provisions should sunset after the three-year phase-in period. In fact, there was discussion in work group meetings regarding whether or not to establish a perpetual stop loss provision, but members decided the issue could be addressed three years down the road, when the working group was scheduled to reconvene.

In summary, unless the General Assembly takes action during the 2020 budget session to extend the stop loss provision in fiscal 2021-22, KSU, MoSU, six KCTCS institutions and potentially other institutions could lose more than 2.0% of their adjusted net General Fund. For this reason, there is unanimous support among Council members, campus presidents, chief budget officers, and CPE senior staff for the Governor and General Assembly to take action and extend the stop loss provision.

2021-22 Mandated Programs

As indicated above, at the advice of LRC Budget Review and OSBD staff, only funding for mandated programs has been included on the A-Forms for 2021-22, though the institutions and the Council strongly recommend that the Governor and General Assembly continue a 2% stop-loss into the second year of the biennium.

The Council defines mandated programs as research or public service activities that have an external legal mandate—through statute, resolution, budget bill language, or executive order—and receive appropriations greater than $450,000 per program at the research universities or greater than $200,000 per program at the comprehensive universities and Kentucky Community and Technical College System institutions. Programs must also meet additional criteria to achieve mandated program status, including that the program or activity is not integral to the “instructional” mission of the institution, is relatively unique among institutions, is “program-funded” or line-itemed in appropriations bills, could be operated by an agency or organization other than a college or university, and is funded primarily with state General Fund appropriations.

Most mandated programs receive the lion's share of funding they need to conduct research or support service activities through direct General Fund appropriations to postsecondary institutions. Program funds are typically imbedded in an institution's

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regular appropriation and the amount supporting a given mandated program is not always specified in budget bill language. Going forward, to ensure proper functioning of the performance funding models, CPE requests that budget bill language identify the amount of mandated program funding included in each institution's appropriation. Information on individual mandated programs is available upon request.

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2020-2022 Kentucky Branch Budget Baseline Budget Request: Expenditure Detail Summary Record All requested columns rounded to nearest $100

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2020-2-22 Kentucky Branch Budget Request Operating Budget Record A-6 Agency: Kentucky State University

(0)

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2020-22 Kentucky Branch Budget Operating Budget Request: Postsecondary Education Substitute for the Restricted Fund Record

This form is intended to match this institution's A1/A2/A3 and B1/B2/B3 numbers.

FD reports are also included in this budget submission and contain information on actual and budgeted current funds

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FD-1A CONSOLIDATED CURRENT FUNDS REVENUE ACTUAL FISCAL YEAR 2017-18 DUE DATE: November 1 INSTITUTION: Kentucky State University

Are affiliated corporation funds included? yes___ no X

If yes, are the affiliated corporations those listed in Table 25? yes___ no___ If no, provide explanation.

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FD-1A CONSOLIDATED CURRENT FUNDS REVENUE ACTUAL FISCAL YEAR 2018-19 DUE DATE: November 1 INSTITUTION: Kentucky State University

Are affiliated corporation funds included? yes___ no X

If yes, are the affiliated corporations those listed in Table 25? yes no If no, provide explanation.

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FD-1B CONSOLIDATED CURRENT FUNDS REVENUE BUDGETED FISCAL YEAR 2019-20 DUE DATE: November 1 INSTITUTION: Kentucky State University

Are affiliated corporation funds included? yes___ no x

If yes, are the affiliated corporations those listed in Table 25? yes___ no___

If no, provide explanation.

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FD-1B CONSOLIDATED CURRENT FUNDS REVENUE BUDGETED FISCAL YEAR 2020-21 DUE DATE: November 1 INSTITUTION: Kentucky State University

Are affiliated corporation funds included? yes___ no x

If yes, are the affiliated corporations those listed in Table 25? yes___ no___

If no, provide explanation.

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FD-1B CONSOLIDATED CURRENT FUNDS REVENUE BUDGETED FISCAL YEAR 2021-22 DUE DATE: November 1 INSTITUTION: Kentucky State University

Are affiliated corporation funds included? yes___ no x

If yes, are the affiliated corporations those listed in Table 25? yes___ no___

If no, provide explanation.

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FD-2A CONSOLIDATED CURRENT FUNDS EXPENSES AND TRANSFERS BY FUNCTIONAL NATURAL OBJECT CODE ACTUAL FISCAL YEAR 2017-18 DUE DATE: November 1 INSTITUTION: Kentucky State University

Are affiliated corporation funds included? yes___ no X

Are affiliated corporation funds included? yes___ no X If yes, are the affiliated corporations those included in Table 25? yes___ no If no, provide explanation.

*See Reporting Supplement

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FD-2A CONSOLIDATED CURRENT FUNDS EXPENSES AND TRANSFERS BY FUNCTIONAL NATURAL OBJECT CODE ACTUAL FISCAL YEAR 2018-19 DUE DATE: November 1 INSTITUTION:

Are affiliated corporation funds included? yes___ no X

If yes, are the affiliated corporations those included in Table 25? yes___ no If no, provide explanation.

*See Reporting Supplement

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FD-2B CONSOLIDATED CURRENT FUNDS EXPENSES AND TRANSFERS BY FUNCTIONAL NATURAL OBJECT CODE BUDGETED FISCAL YEAR 2019-20 DUE DATE: November 1 INSTITUTION: Kentucky State University

Are affiliated corporation funds included? yes___ no x

Are affiliated corporation funds included? yes___ no x If yes, are the affiliated corporations those included in Table 25? yes___ no If no, provide explanation.

*See Reporting Supplement

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FD-2B CONSOLIDATED CURRENT FUNDS EXPENSES AND TRANSFERS BY FUNCTIONAL NATURAL OBJECT CODE BUDGETED FISCAL YEAR 2020-21 DUE DATE: November 1 INSTITUTION: Kentucky State University

Are affiliated corporation funds included? yes___ no x

Are affiliated corporation funds included? yes___ no x If yes, are the affiliated corporations those included in Table 25? yes___ no If no, provide explanation.

*See Reporting Supplement

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FD-2B CONSOLIDATED CURRENT FUNDS EXPENSES AND TRANSFERS BY FUNCTIONAL NATURAL OBJECT CODE BUDGETED FISCAL YEAR 2021-22 DUE DATE: November 1 INSTITUTION: Kentucky State University

Are affiliated corporation funds included? yes___ no x

Are affiliated corporation funds included? yes___ no x If yes, are the affiliated corporations those included in Table 25? yes___ no If no, provide explanation.

*See Reporting Supplement

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GRAND TOTAL

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OPERATING BUDGET SUMMARY RECORD P Governmental Branch: Executive Branch Cabinet: Postsecondary Education Agency: Postsecondary Education Institutions Appropriation: Kentucky State University

FY 2019-20 Budgeted FY 2020-21 Requested FY 2021-22 Requested

1 Defined Calculations 0 0

1 Special Circumstances KSU Operating Funds 0 0

2 Growth KSU Land Grant Match 497,400 497,400

Total Additional Budget Request 497,400 497,400 18,732,900

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PRIORITY Cabinet #: 1 Agency #: 1

Governmental Branch: Executive Branch Cabinet: Postsecondary Education Agency: Postsecondary Education Institute Appropriation: Kentucky State University Program/Service Unit: Sub Program: Posting Unit:

Agency: Postsecondary Education Institutions Appropriation: Kentucky State University Program/Service Unit: Sub Program: Posting Unit: REQUEST TITLE: KSU Operating Funds

REQUEST TITLE: KSU Operating Funds

OPERATING BUDGET RECORD B-1/B-2

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2020-2022 Kentucky Branch Budget Additional Budget Request: Expenditure Detail Summary Record All requested columns rounded to nearest $100

OPERATING BUDGET RECORD B-3

Governmental Branch: Executive Branch Cabinet: Postsecondary Education Appropriation: Kentucky State University

PRIORITY Cabinet #: 1 Agency #: 1

Agency: Postsecondary Education Institutions

Appropriation: Kentucky State University

Program/Service Unit:

Sub Program:

Posting Unit:

REQUEST TITLE: KSU Operating Funds

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PRIORITY Cabinet #: Agency #: 2

OPERATING BUDGET RECORD B-1/B-2

Governmental Branch: Executive Branch Cabinet: Postsecondary Education Agency: Postsecondary Education Institutions Appropriation: Kentucky State University Program/Service Unit: Sub Program: Posting Unit:

Agency: Postsecondary Education Institutions Appropriation: Kentucky State University Program/Service Unit: Sub Program: Posting Unit: REQUEST TITLE: KSU Land Grant Match

REQUEST TITLE: KSU Land Grant Match

• Full Time Positions - FILLED 6 6
• Part Time Positions - FILLED 2 2
• GRAND TOTAL - Number of Positions 8 8

Number of Positions

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2020-2022 Kentucky Branch Budget Additional Budget Request: Expenditure Detail Summary Record All requested columns rounded to nearest $100

PRIORITY Cabinet #: 2 Agency #: 2

OPERATING BUDGET RECORD B-3

Governmental Branch: Executive Branch Cabinet: Postsecondary Education Appropriation: Kentucky State University

Agency: Postsecondary Education Institutions

Appropriation: Kentucky State University

Program/Service Unit:

Sub Program:

Posting Unit:

REQUEST TITLE: KSU Land Grant Match

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PROGRAM NARRATIVE/DOCUMENTATION RECORD KENTUCKY STATE UNIVERSITY FORM B-4

Subsection (9)(b) of KRS 164.092 reads that “[f]or fiscal year 2021-2022 and thereafter, hold-harmless and stop-loss provisions shall not be included in the funding formulas except by enactment of the General Assembly.” The clear meaning of this subsection is that, unless action is taken by the legislature in construction of the 2020-2022 Budget of the Commonwealth through bill language and appropriation amounts, all hold harmless and stop loss provisions will sunset in the second year of the upcoming biennium.

The Council on Postsecondary Education, Council staff, and all institutional presidents and chief budget officers strongly recommend the Governor and General Assembly keep a 2% stop-loss in place for 2021-22.

To make that policy a reality, the funding in this B form should be added to the institution's funding for 2021-22. Please note that there is a corresponding decrease in the budget request for the PEPF appropriation unit (requested by CPE), clearly showing that this transfer requires no additional state funding.

Justification to Extend the 2% Stop Loss in 2021-22

The impact of losing these provisions would be immediate and severe for Kentucky's two smallest universities, Kentucky State University (KSU) and Morehead State University (MoSU). For example, in the 2019-20 iteration of the university performance funding model, KSU's hold harmless allocation was $6,867,800 or 36.9% of its adjusted net General Fund appropriation in fiscal year 2019-20 and MoSU's hold harmless amount was $2,814,900 or 7.9% of its adjusted net General Fund that same year. Absent an infusion of new operating funds for the institutions—appropriated to the PEPF and distributed using the funding models—and barring any unanticipated large gains in performance at these institutions, it is estimated that KSU would lose more than a third of its funding that is available for educating students and MoSU would lose almost 8.0% of its similar funding.

It was not the intention of Postsecondary Education Working Group (PEWG) members for Kentucky institutions to have to contend with fiscal cliffs like the ones facing KSU and MoSU. In fact, in a Goal and Guiding Principles document produced by a Funding Strategy Steering Committee of the working group, committee members agreed to a set of principles to guide funding model development, which included an imperative for the distribution mechanism to be “Reasonably Stable” and “not permit large annual shifts in funding to occur” (Report of the Postsecondary Education Working Group to the Governor and Interim Joint Committee on Education, Appendix B, December 2016).

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In their final report to the Governor and Interim Joint Committee on Education, working group members did not recommend that hold harmless and stop loss provisions should sunset after the three-year phase-in period. In fact, there was discussion in work group meetings regarding whether or not to establish a perpetual stop loss provision, but members decided the issue could be addressed three years down the road, when the working group was scheduled to reconvene.

In summary, unless the General Assembly takes action during the 2020 budget session to extend the stop loss provision in fiscal 2021-22, KSU, MoSU, six KCTCS institutions, and potentially other institutions could lose more than 2.0% of their adjusted net General Fund. For this reason, there is unanimous support among Council members, campus presidents, chief budget officers, and CPE senior staff for the Governor and General Assembly to take action and extend the stop loss provision.

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2020-2022 KENTUCKY BRANCH BUDGET Operating Budget Request: Retirement Contributions Exhibit-Exhibit 3A (Do Not Round Actual FY 2017-2018 and Actual FY 2018-19 Dollar Figures) (Round Budgeted FY 2019-20, Requested FY 2020-21, and Requested FY 2021-22 Dollar Figures to the Nearest $100)

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TOTAL CONTRIBUTIONS BY FUND SOURCE

TOTAL CONTRIBUTIONS BY RETIREMENT SYSTEM

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2020-2022 KENTUCKY BRANCH BUDGET Operating Budget Request: Retirement Contributions Exhibit-Exhibit 3B (All Dollar Figures Rounded to the Nearest $100)

Prepared by LRC Office of Budget Review 11/7/2017

Page 37 of 471 of 2

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Prepared by LRC Office of Budget Review 11/7/2017

Page 38 of 47 2 of 2

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2020-2022 Kentucky Branch Budget Capital Budget Request: Project Summary Record All dollar amounts rounded to next $1000

Capital Budget Record CBR-01

Governmental Branch: Executive Branch Cabinet: Postsecondary Education Agency: Postsecondary Education Institutions Appropriation: Kentucky State University

SUMMARY BY FUND SOURCE FY 2019-20 Requested FY 2020-21 Requested FY 2021-22 Requested Total Requested

Federal Funds 0 1,044,000 0 1,044,000

Bond Funds 0 116,347,000 0 116,347,000

Restricted Funds 0 1,061,000 0 1,061,000

Other - Third Party Financing 0 55,562,000 0 55,562,000

TOTAL EXPENDITURES BY UNIT 0 174,014,000 0 174,014,000

Cabinet Agency Project No. Project Name Type

1 435U20C003 Renovation & Renewal Projects Pool 2018 Construction

Bond Funds 0 5,950,000 0 5,950,000

Restricted Funds 0 17,000 0 17,000

Total Renovation & Renewal Projects Pool 2018 0 5,967,000 0 5,967,000

2 435U20C007 Construct New Residence Hall Construction

Other - Third Party Financing 0 55,562,000 0 55,562,000

Total Construct New Residence Hall 0 55,562,000 0 55,562,000

3 435U20C002 Upgrade Information Tech Infrastructure 2018 Information Technology System

Bond Funds 0 12,263,000 0 12,263,000

Bond Funds 0 29,604,000 0 29,604,000

Total Academic & Student Success Center 0 29,604,000 0 29,604,000

5 435U20C009 Construct Business & Technology Center Construction

Bond Funds 0 42,717,000 0 42,717,000

Total Construct Business & Technology Center 0 42,717,000 0 42,717,000

6 435U20C008 Construct Health Sciences Center Construction

Bond Funds 0 18,406,000 0 18,406,000

Total Construct Health Sciences Center 0 18,406,000 0 18,406,000

7 435U20C006 Expand Campus Communications Infrastructure Construction

9 435U20C001 Acquire Land/Campus Master Plan 2018 Construction

Federal Funds 0 1,044,000 0 1,044,000

Restricted Funds 0 1,044,000 0 1,044,000

Total Acquire Land/Campus Master Plan 2018 0 2,088,000 0 2,088,000

Total Upgrade Information Tech Infrastructure 2018 0 12,263,000 0 12,263,000

4 435U20C005 Academic & Student Success Center Construction

Bond Funds 0 2,407,000 0 2,407,000

Total Expand Campus Communications Infrastructure 0 2,407,000 0 2,407,000

8 435U20C004 Replace Enterprise Resource Planning System Information Technology System

Bond Funds 0 5,000,000 0 5,000,000

Total Replace Enterprise Resource Planning System 0 5,000,000 0 5,000,000

0 0 0 0

Grand Total 174,014,000

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Capital Budget Record CBR-02

Capital Budget Record CBR-02 Branch: Executive Branch Cabinet: Postsecondary Education Agency: Postsecondary Education Institutions Appropriation: Kentucky State University Project Title: Renovation & Renewal Projects Pool 2018

KBUD Project Number: 435U20C003

PROJECT DOCUMENTATION

Location (County): Franklin

Reauthorization - Regular Capital Project: Is this a currently authorized project which is being requested for reauthorization and/or additional funding? NO

If (Yes, Additional Funding), provide the following information:

eMars Project Number (Agency, Fund):

New Total Project Cost: $ 5,967,000

Capital Project Type:

Project Description

Small projects for Renovation and Renewal of KSU facilities that need completion to keep the University's facilities at functional level. This project combines previous separate pool projects titled “Capital Renewal & Maintenance Projects Pool”, “Life Safety Upgrade Pool” and “Roof Repair & Replacement Pool”. These projects range from electrical system upgrades to having new asphalt placed on deteriorating roads; install new or upgrade current life safety systems on campus - Upgraded fire alarm systems, Upgraded fire suppression systems, ADA improvements. Repair and replacement of old roofs is part of this pool.

PROJECT BUDGET

Has this project been reviewed by the Department for Facilities and Support Services?

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Capital Budget Record CBR-02 Branch: Executive Branch Cabinet: Postsecondary Education Agency: Postsecondary Education Institutions Appropriation: Kentucky State University Project Title: Academic & Student Success Center

KBUD Project Number: 435U20C005

PROJECT DOCUMENTATION

Location (County): Franklin

Reauthorization - Regular Capital Project: Is this a currently authorized project which is being requested for reauthorization and/or additional funding? NO

If (Yes, Additional Funding), provide the following information:

eMars Project Number (Agency, Fund):

New Total Project Cost: $ 29,604,000

Capital Project Type:

Project Description

The purpose of this project is to renovate the Blazer Library in order to provide a technology-rich learning center that has: Lecture and Event Spaces, Collaboration or Individual Learning Spaces, Writing and Communication Center, Maximize Space and Workflow, and Access to Technology. Paul G. Blazer Library was last renovation and addition was in 1988. It needs a full renovation to a facility where KSU students can enhance their academic and learning experience. It needs to be an academic and student success center as well as a repository of written knowledge. KSU is currently working with an architectural design firm to prepare road map of how Paul G. Blazer Library can be fully renovated and achieve the needs of our students. That Pre-Design effort is titled “Renovations in Blazer Library”. This project will provide various improvements to the Blazer Library including an upgrade in the HVAC, partial roof replacement, special fire protection for the Library's Special Collections and Archives areas; replacement of the facility's security system; and window replacements in the older section of the facility. The project will also include a state-of-the-art electrical information access and retrieval system.

PROJECT BUDGET

Has this project been reviewed by the Department for Facilities and Support Services?

Completion Date: 09 / 2022

42

Capital Budget Record CBR-02

Branch: Executive Branch Cabinet: Postsecondary Education Agency: Postsecondary Education Institutions Appropriation: Kentucky State University Project Title: Construct New Residence Hall

Project Title: Construct New Residence Hall

KBUD Project Number: 435U20C007

PROJECT DOCUMENTATION

Location (County): Franklin

Reauthorization - Regular Capital Project: Is this a currently authorized project which is being requested for reauthorization and/or additional funding? Yes, Reauthorization Only

If (Yes, Additional Funding), provide the following information:

eMars Project Number (Agency, Fund):

New Total Project Cost: $ 55,562,000

Capital Project Type:

Project Description

A new residence hall is needed to house additional students as enrollment projections increase and to provide modern housing facilities. This residence hall would be the second building located in a planned residential quadrangle on the campus south of US60 beside Young Hall. This would be the first residence hall to be built on campus with privatized financing. The new facility is anticipated to contain approximately 500 beds set up in a combination of suites and apartment layouts.

PROJECT BUDGET

Has this project been reviewed by the Department for Facilities and Support Services?

Completion Date: 09 / 2022

43

Capital Budget Record CBR-02

Capital Budget Record CBR-02 Branch: Executive Branch Cabinet: Postsecondary Education Agency: Postsecondary Education Institutions Appropriation: Kentucky State University Project Title: Construct Health Sciences Center

KBUD Project Number: 435U20C008

PROJECT DOCUMENTATION

Location (County): Franklin

Reauthorization - Regular Capital Project: Is this a currently authorized project which is being requested for reauthorization and/or additional funding? Yes, Reauthorization Only

If (Yes, Additional Funding), provide the following information:

eMars Project Number (Agency, Fund):

New Total Project Cost: $ 18,406,000

Capital Project Type:

Project Description

The School of Nursing at Kentucky State University is poised to grow exponentially with the further development of present academic programs and the addition of new academic programs, such as the Doctor of Nursing Practice (BSN-DNP) program. Addition of nursing and allied health programs are planned in the near future. A new facility is required for this program to achieve its potential. A multipurpose and functional space is needed that includes laboratory space, learning laboratory configured as a virtual hospital with high-fidelity simulators, debriefing rooms, student study spaces, classrooms and teaching space in addition to a suite of offices that can be utilized for student advisement, conference space, and faculty work space.

PROJECT BUDGET

Has this project been reviewed by the Department for Facilities and Support Services?

Completion Date: 09 / 2022

44

Capital Budget Record CBR-02 Branch: Executive Branch Cabinet: Postsecondary Education Agency: Postsecondary Education Institutions Appropriation: Kentucky State University Project Title: Construct Business & Technology Center

KBUD Project Number: 435U20C009

PROJECT DOCUMENTATION

Location (County): Franklin

Reauthorization - Regular Capital Project: Is this a currently authorized project which is being requested for reauthorization and/or additional funding? NO

If (Yes, Additional Funding), provide the following information:

eMars Project Number (Agency, Fund):

New Total Project Cost: $ 42,717,000

Capital Project Type:

Project Description

This project would construct a new building for the School of Business, the University's largest academic program, and one that will play a key role in the University's Strategic Plan. Proposed to be located on the Main Campus south of US60, adjacent to the proposed pedestrian bridge tower which will connect to Hathaway Hall, this facility will provide a highly visible, state-of-the-art home for the Business school that is currently housed in Bradford Hall. The project will permit the development of educational technologies not now available to the school and enable it to meet its mission of providing professional development classes to the entire Frankfort community. This initiative would be the first step in addressing the programmatic and structural issues related to Bradford Hall, current home of the School of Business. The VFA Condition Assessment and Space Study found Bradford Hall to be substandard space for the Business Program and suggested that both the Business School and the Music/Theater programs, also located in Bradford Hall, would be better served in new facilities. The School, with its new MBA program, hopes to grow 5% each year, but is in a competitive disadvantage at its present location.

PROJECT BUDGET

Has this project been reviewed by the Department for Facilities and Support Services?

Completion Date: 09 / 2022

45

Capital Budget Record CBR-04

Equipment Title: Upgrade Information Tech Infrastructure 2018

KBUD Project Number: 435U20C002

SYSTEM PROJECT DOCUMENTATION

Reauthorization - Regular Capital Project: Is this a currently authorized project which is being requested for reauthorization and/or additional funding? Yes, Reauthorization Only

If (Yes, Additional Funding), provide the following information:

eMars Project Number (Agency, Fund):

New Total Project Cost: $ 12,263,000

Project Description

This project continues to upgrade the data infrastructure and network (wired and wireless) for data, voice and video. This project includes the purchase and installation of fiber, cabling inside the buildings, network and communications equipment and services, video systems and other items related to the maintenance, enhancement, redundancy and security of the KSU data infrastructure and systems. Due to advancements in technology, this project will be continuous.

PROJECT BUDGET

IMPACT ON OPERATING BUDGET

46

Capital Budget Record CBR-04

Equipment Title: Replace Enterprise Resource Planning System

KBUD Project Number: 435U20C004

SYSTEM PROJECT DOCUMENTATION

Reauthorization - Regular Capital Project: Is this a currently authorized project which is being requested for reauthorization and/or additional funding? Yes, Reauthorization Only

If (Yes, Additional Funding), provide the following information:

eMars Project Number (Agency, Fund):

New Total Project Cost: $ 5,000,000

Project Description

This project will improve and expand the functionality of the enterprise resource planning system and ancillary systems to ensure that the requirements of the University are being met and future advancements can be realized.

PROJECT BUDGET

IMPACT ON OPERATING BUDGET

47

SYSTEM PROJECT DOCUMENTATION

Reauthorization - Regular Capital Project: Is this a currently authorized project which is being requested for reauthorization and/or additional funding? Yes, Reauthorization Only

If (Yes, Additional Funding), provide the following information:

eMars Project Number (Agency, Fund):

New Total Project Cost: $ 2,407,000

Project Description

The purpose of this project is to continue to improve upon the University's communication infrastructure with installation of new underground conduit network for redundant connectivity capability. This project will construct a conduit path from Julian Carroll ASB to Hathaway Hall and Bradford Hall plus another path from Julian Carroll ASB to Aquaculture compound.

PROJECT BUDGET