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Office of the President

Kentucky State University

November 16, 2015

Ms. Jane Driskell State Budget Director Office of the State Budget Director 702 Capitol Avenue, Room 284 Frankfort, Kentucky 40601

Mr. David Byerman Director Legislative Research Commission Room 300, Capitol Frankfort, Kentucky 40601

Dear Ms. Driskell and Mr. Byerman:

Please find enclosed the 2016-2018 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 2016-2018 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,

Raymond M. Burse President

Enclosures

Suite 201, Hume Hall (502) 597-6260

400 East Main Street

Frankfort, Kentucky 40601 www.kysu.edu

Kentucky State University is an Equal Educational and Employment Opportunity/Affirmative Action Institution.

2016-2018 Biennial Budget Request

• Overview -
• Form C-1/C-2 -
• Form C-3 -
• Form C-5 -
• Form A-1/A-2 -
• Form A-3 -
• Form A-4 -
• Form A-5 -
• Form A-6 -
• Restricted Funds Record -
• Federal Funds Summary -
• Form B-1/B-2 -
• Form B-3 -
• Form B-4 -

Kentucky State University 2016-2018 Biennial Budget Request

2016-2018 Biennial Budget Request

• Project Summary Record CBR-01
• Repair Boilers and Aging Distribution Lines – Phase II CBR-02 -
• School of Nursing CBR-02 -
• Roof Repair and Replacement Pool 2016 CBR-02 -
• Capital Renewal and Maintenance Projects Pool 2016 CBR-02 -
• Life Safety Upgrade Pool 2016 CBR-02 -
• Upgrade Information Tech Infrastructure 2016 CBR-04 -
• Expand Emergency Notification System CBR-04 -
• Improvements to Instructional Technology CBR-04 -
• Enhance the Enterprise Resource Planning System CBR-04 -
• Construct Warehouse 2016 CBR-02 -
• Integrated Digital Campus CBR-04 -
• Construct Business and Technology Center CBR-02 -
• Construct Classrooms/Performing Arts Center CBR-02 -
• Acquire Land/Campus Master Plan 2016 CBR-02 -

Kentucky State University 2016-2018 Biennial Budget Request

Budget Overview

The 2016-18 Biennial Recommendation of the Kentucky Council on Postsecondary Education (CPE) was approved November 13, 2015. 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 2016-2018 Biennial Budget request is structured to address two 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

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 currently receives enough funding from the Commonwealth to support a 50.05% match rate, well below the required match and just above the minimum level allowed even with a waiver from the US Department of Agriculture. 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 Student Recruitment and Retention

Over the past four years, Kentucky State University has experienced a steep decline in both its student headcount and full-time equivalent (FTE) student enrollment. Between fall semesters 2010 and 2014, KSU's student headcount enrollment decreased by 956 students, or 33.5 percent, and its FTE student enrollment decreased by 760 students, or 32.4 percent. About two-thirds of this decline was caused when over 600 students were not allowed to continue enrollment due to nonpayment of bills, but other factors 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 2010-11 and 2014-15, KSU's gross billable tuition and fee revenue decreased by $6.7 million, or 29.2 percent, and when combined with cuts in state funding of about $2.5 million over this same period, the university's total public funds revenue decreased by $9.2 million, or 18.8 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 several rounds of personnel layoffs. Actions to stabilize university finances resulted in a balanced budget for the current fiscal year (i.e., 2015-16), but projections indicate that, absent external intervention, KSU will be in an untenable financial position within the next two years.

The Council on Postsecondary Education recommends nonrecurring appropriations of $2,733,900 in 2016-17 and $1,767,800 in 2017-18 to “bridge the gap” between KSU’s current, reduced level of tuition and fee revenue and the amount needed, when combined with state appropriations, to support current levels of education and general expenditure in the university’s operating budget, until such time as student enrollment and tuition and fee revenue return to normal. 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, establishing a state government employee outreach program, and expanding targeted student financial aid programs. While the Council’s recommendation was for non-recurring funds, requests for additional funding in future biennia will be reviewed on an as needed basis.

Performance Funding

The Council on Postsecondary Education requested Performance Funding as part of the 2012-14, and 2014-16 biennial budget submission. For the upcoming 2016-18 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 eight years, losing a total of $173.5 million or 16.0 percent of their combined net General Fund appropriations. The Council and campus officials strongly encourage the new Governor and 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.

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This request restores half of the $173.5 million in state funding cuts the institutions sustained between fiscal years 2007-08 and 2014-15 over the upcoming biennium. Funds would be available to support education and general operating expenses of the campuses in each of those years, but would only become recurring to an institution's base at the beginning of the next biennium (2018-2020), if an institution made progress toward or attained desired state goals.

The proposed funding was allocated among postsecondary sectors based on each sector's share of system total budget cuts since 2007-08. Specifically, $42.5 million will be allocated to the research sector, $24.9 million will be allocated to the comprehensive sector, and $19.3 million will be allocated to the community and technical college sector. Performance funds in the research sector will be allocated between UK and UofL based on each institution's share of sector total 2015-16 net General Fund appropriations. Performance funds in the comprehensive sector will be allocated among institutions based on a combination of total public funds share and share of budget cuts since 2008. Finally, KCTCS officials will be allowed flexibility to determine how performance funds will be allocated among institutions within their system.

The performance funding model proposed for 2016-18 is a targets and goals approach, which means each institution is rewarded for making progress toward or attaining its own campus specific goals, not for exceeding the performance of other institutions. CPE staff and campus officials have already agreed on metrics, which include degrees and credentials produced, student retention, student progression, completion of credit bearing Math and English courses by underprepared students (KCTCS), closing achievement gaps (under-represented minorities and low income students), and sector-specific STEM-related metrics. Institution-specific metrics are still in process. Graduation rates will be added as a metric for the 2018-2020 biennium. Beginning in December, Council and campus staffs will work to develop goals for each metric. Performance will be measured in fall 2017 to determine if performance funding becomes recurring in the next biennium.

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 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.

In 2007-08, KSU received $5,524,400 in U.S. Department of Agriculture administered federal grants to support its land grant program. That same year, Council on Postsecondary Education staff and campus officials agreed that the university had $5,437,693 in its net General Fund base to meet the match, so the funding gap that year was -$86,707. In the eight years since, KSU's state appropriation has been reduced by $4.0 million or 14.6 percent, while the required land grant match increased by $1,211,558 or 21.9 percent (i.e., to a total of $6,735,958).

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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 recent 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 $2,730,500 in 2016-17 and $2,730,500 in 2017-18 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.

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2016-2018 Kentucky Branch Budget Total Request: Expenditure Detail Summary Record All requested columns rounded to nearest $100

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2016-2018 Kentucky Branch Budget Total Request: Expenditure Detail Summary Record All requested columns rounded to nearest $100

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2016-2018 Kentucky Branch Budget Total Request: Expenditure Detail Summary Record All requested columns rounded to nearest $100

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2016-2018 Kentucky Branch Budget Baseline Budget Request: Expenditure Detail Summary Record All requested columns rounded to nearest $100

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PROGRAM NARRATIVE/DOCUMENTATION RECORD

FORM A-4

Mission

Kentucky State University, building on its legacy of achievement as a historically black, liberal arts, and 1890 land-grant University, affords access to and prepares a diverse student population of traditional and non-traditional students to compete in a multifaceted, ever-changing global society by providing student-centered learning while integrating teaching, research, and service through high-quality undergraduate and select graduate programs. Kentucky State University is committed to keeping relevant its legacy of service by proactively engaging the community in partnerships on civic projects driven by the objective of positively impacting the quality of life of the citizens of the Commonwealth.

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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Program Description – Instruction

KSU is primarily an undergraduate institution of higher education. KSU offers a few select programs at the master's level and one program at the doctoral level. KSU is designated as the Commonwealth's public liberal arts institution with a common liberal studies core curriculum for all students and baccalaureate programs in the traditional arts and sciences. KSU's academic offerings are further enhanced by a variety of baccalaureate and associate degree programs in career and career-oriented disciplines such as business, computer sciences, education, public administration, nursing, and agriculture, food and environment (AFE). The nursing program continues to meet the high demand for health care professionals with full capacity classes and wait lists for each session. Pre-professional programs in law, dentistry, medicine, veterinary medicine, optometry, allied health, and engineering are also offered. The university's liberal studies focus is further enhanced with various centers of study for enhancing student success. Academic support services include a broad, diverse range of services for all KSU students. The Academic Center for Excellence (ACE) supports the traditional student with personalized, supplemental instruction while emphasizing necessary academic success strategies during the student's college experience.

KSU offers graduate programs that lead to degrees at the Master's level in:

• Interdisciplinary Behavioral Science
• Special Education with a Certification in Learning and Behavior Disorders
• Business Administration
• Public Administration
• Science in Aquaculture/Aquatic Sciences
• Science in Computer Science Technology
• Science in Environmental Studies

In the spring of 2015 KSU inaugurated a new Doctor of Nursing Practice (DNP) degree with seven (7) candidate students. According to the American Association of Colleges of Nursing, “[DNPs] with a blend of clinical, organizational, economic and leadership skills are most likely to be able to critique nursing and other clinical scientific findings and design programs of care delivery that are locally acceptable, economically feasible, and which significantly impact health care outcomes”.

Measures/Performance Indicators: In the 2014-2015 academic year, KSU awarded 384 degrees; 62 Associate, 270 Baccalaureate, and 52 Masters. Each KSU graduate is expected to acquire skills and first-hand experience in verbal and written communications; mathematical computation and reasoning, while at the same time being exposed to the enduring importance of the methods and subject matters of the humanities, foreign languages, the natural sciences, the social sciences, and the fine arts.

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Program Description – Research

KSU conducts research projects relevant to the needs of the community to fulfill one of its land grant missions through the divisions of Agriculture and Natural Resources, Aquaculture, Environmental Studies and Sustainable Systems, Food and Animal Science, and Family and Consumer Sciences.

Students are involved in these research programs to enhance their academic curriculum obtained through hands-on training and experiential learning in the laboratory and in the field. Students receive close mentoring engagement that provides opportunities for their professional development where they participate in scientific oral and poster competitions. Research engagement also prepares students in developing their analytical capability and encourage them to develop scientific paper, making them competitive in this field.

Measures/Performance Indicators:

The research program engages at least 50% of the undergraduate students through a capstone project or undergraduate research experience and at least 75% of graduate students through research. At least 50% of the students engaged in research will participate in scientific oral or poster presentations and 50% will develop refereed or journal publications.

Scientists conducting research will be able to identify best management practices that can be adopted by local small and under-served stakeholders, leading to increasing their potential income while minimizing adverse impacts to the environment. At least 75% of research faculty and/or scientists will be able to present and publish their research findings and secure external funds.

Program Description – Public Service

The extension portion of the Land-Grant Program is called the Cooperative Extension Program (CEP). The name reflects the mission of the program, which is to help resolve agricultural, educational, economic, and social problems of the people of Kentucky, especially those with limited resources living in rural communities.

KSU's Cooperative Extension Program has a joint plan of work with the research program to provide avenue for technology transfer of research findings that are

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relevant to the communities. Subject areas for extension include traditional agriculture production; natural resources management; aquaculture production and management; agriculture economics and marketing; environmental quality related stewardships; food nutrition and human health; obesity and chronic disease; goat production; small farm programs; rural community development; family well-being that includes financial and family management; and 4-H and youth development programs. Programs and workshops are offered through “The Third Thursday Thing” monthly meetings to engage stakeholders who are interested in the different topics offered every month with an average of about 100 participants monthly.

In addition, outreach to K-12 youth and teachers have been developed through programs and matriculation that has been increased to engage science and other teachers in the field of food, agriculture, and the environment. Partnerships with schools have been established to increase KSU-CAFSSS visibility in the communities through “Adopt-a-School” program. CAFSSS faculty/scientists and/or staff establish relationships with the adopted school to introduce CAFSSS programs that both students and teachers can participate in or become interested in. Schools visits to KSU or CAFSSS visit to the schools for interactive discussions is also a part of this outreach effort.

Measures/Performance Indicators: I he success of the Cooperative Extension Program is determined by the monthly number of participants; the number of participants who implement and adopt new practices identified; the impacts of new implemented programs or activities that lead to behavioral change and income improvement. Programmatic support obtained through local, regional, and national funds will also help determine the necessity or measure of success.

Outreach programs and engagement with schools can be measured by the number of requests from schools to visit KSU; the number of schools participating in CAFSSS outreach programs; and the number of schools requesting CAFSSS to visit their school.

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2016-2018 Kentucky Branch Budget Baseline Budget Request: Expenditure Detail Summary Record All requested columns rounded to nearest $100

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2016-2018 Kentucky Branch Budget Request Operating Budget Record A-6 Agency: Kentucky State University

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FD-1A CONSOLIDATED CURRENT FUNDS REVENUE ACTUAL FISCAL YEAR 2013-14 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 2013-14 DUE DATE: November 1 INSTITUTION: Kentucky State University

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-1A CONSOLIDATED CURRENT FUNDS REVENUE ACTUAL FISCAL YEAR 2014-15 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 2014-15 DUE DATE: November 1 INSTITUTION: Kentucky State University

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-1B CONSOLIDATED CURRENT FUNDS REVENUE BUDGETED FISCAL YEAR 2015-16 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-2B CONSOLIDATED CURRENT FUNDS EXPENSES AND TRANSFERS BY FUNCTIONAL NATURAL OBJECT CODE BUDGETED FISCAL YEAR 2015-16 DUE DATE: November 1 INSTITUTION: Kentucky State University

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-1B CONSOLIDATED CURRENT FUNDS REVENUE BUDGETED FISCAL YEAR 2016-17 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-2B CONSOLIDATED CURRENT FUNDS EXPENSES AND TRANSFERS BY FUNCTIONAL NATURAL OBJECT CODE BUDGETED FISCAL YEAR 2016-17 DUE DATE: November 1 INSTITUTION: Kentucky State University

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-1B CONSOLIDATED CURRENT FUNDS REVENUE BUDGETED 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-2B CONSOLIDATED CURRENT FUNDS EXPENSES AND TRANSFERS BY FUNCTIONAL NATURAL OBJECT CODE BUDGETED 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 included in Table 25? yes___ no___

If no, provide explanation.

*See Reporting Supplement

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• Additional Budget Request: Financial Record Cabinet #:
• All requested columns rounded to nearest $100 Agency #:

REQUEST TITLE: CPE General Fund Initiatives

• Full Time Positions - FILLED 0 25
• GRAND TOTAL - Number of Positions 0 25

Number of Positions

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2016-2018 Kentucky Branch Budget Additional Budget Request: Expenditure Detail Summary Record All requested columns rounded to nearest $100

PRIORITY Cabinet #: 1 Agency #: 1

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: CPE General Fund Initiatives

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PROGRAM NARRATIVE/DOCUMENTATION RECORD

FORM B-4

Kentucky State University is requesting $6,230,500 in additional General Fund support in FY 2016-2017 and $6,030,500 in FY 2017-2018.

This request supports a number of initiatives designed to address structural problems with the University's funding. These initiatives will:

• Provide funding for initiatives focused on student retention and recruitment.
• Provide funding to improve academic quality.
• Provide the University with the full match of the federal funds provided for Land Grant Research programs and Land Grant Extension programs as required under Section 1449 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977.

The University has worked closely with the Kentucky Council on Postsecondary Education to structure this request. The CPE has categorized the request for the University as follows:

• Special Initiative Funding – Recruitment and Retention (Non-Recurring) ○ $2,733,900 in FY 2016-2017 and $1,767,800 in FY 2017-2018
• Special Initiative Funding – Land Grant Match (Recurring) ○ $2,730,500 in both years of the 2016-2018 fiscal biennium
• Performance Funding (Recurring if performance targets are met) ○ $766,100 in FY 2016-2017 and $1,532,200 in FY 2017-2018

Current Environment

Over the past four years, Kentucky State University has experienced a steep decline in both its student headcount and full-time equivalent (FTE) student enrollment. Between fall semesters 2010 and 2014, KSU's student headcount enrollment decreased by 956 students, or 33.5 percent, and its FTE student enrollment decreased by 760 students, or 32.4 percent. About two-thirds of this decline was caused when over 600 students were not allowed to continue enrollment due to nonpayment of bills, but other factors 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 2010-11 and 2014-15, KSU's gross billable tuition and fee revenue decreased by $6.7 million, or 29.2 percent, and when combined with cuts in state funding of about $2.5 million over this same period, the university's total public funds revenue decreased by $9.2 million, or 18.8 percent

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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.

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 several rounds of personnel layoffs. Actions to stabilize university finances resulted in a balanced budget for the current fiscal year (i.e., 2015-16), but projections indicate that, absent external intervention, KSU will be in an untenable financial position within the next two years.

In FY 2015, the University took a number of steps to address these structural problems. A plan was put in place to immediately stabilize finances and additional reductions were put in place in the FY 2016 budget:

• Eliminated all vacant positions;
• Eliminated Destiny and Legacy tuition programs (tuition discounts) for new students;
• Increased reserves for the write-off of delinquent student receivables;
• Increased tuition by 5% for FY 2016;
• Eliminated 32 positions across the university, with a plan to eliminate another 21 if fall 2015 enrollment does not meet projections;
• Eliminated all funding for consultants;
• Eliminated several coordinator positions and transferred duties to department chairs;
• Eliminated the position of Dean in all colleges and created a Dean of the University position;
• Significantly reduced reliance on adjunct positions to more effectively utilize full-time faculty;
• Reassigned faculty positions to meet changing course needs;
• Reduced scholarships by 10%;
• Reduced the athletics budget by $500,000.

These actions have resulted in a balanced budget for FY 2016, with no budgeted use of the University's fund balance. While these reductions have been severe, they have allowed the University to maintain core functions and focus efforts on activities that directly affect student success. The University is now in a position to strategically apply new resources to improve student success and stabilize the enrollment base.

Student Recruitment and Retention

The primary focus of the University's transformation plan is enrollment management. Retention rates over the past few years have been between 45% and 50%. The

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retention rate for freshmen from the Fall 2014 to Fall 2015 was approximately 60%. The University must build on this continue to raise the retention rate over the next several years to stabilize enrollment. Consequently, the top priorities for investment focus on retention.

• Permanent funding for existing retention and persistence programs – Title III currently provides support for three university programs directly targeting student retention and success. These programs will be the primary focus of KSU's retention efforts and will make a significant and immediate impact on retention.
• Enhanced academic advising and contact system – A projection model based on institutions similar to KSU predicts that a retention management system can help increase retention by 2% over 3 years and ultimately produce 19 additional graduates after 4 years. With improved retention, KSU would potentially gain $3.6 million over 4 years in tuition revenue.
• Warning and Probation Program – This intervention, based on the IMPACT program at Louisiana State University, will include a mandatory workshop that uses metacognition to help students improve learning, time and resource management skills as well as an academic coaching requirement to help students implement strategies. Participants in the IMPACT model were retained at a 20% higher rate with higher GPA than non-participants.
• Expanded Academic Support – Implement the International Supplemental Instruction model to provide direct course support to the top 20 100-200 level courses that have a DFW rate of 30% or higher.
• Summer scholarships targeting 4-year progression – The cost of college continues to be a significant barrier to completion for many KSU students. Providing summer scholarships for 25 students per year will help these students stay on track to complete 30 hours of coursework per academic year. This initiative will make a measurable impact on 4-year and 6-year graduation rates over time.
• Targeted aid for financially at-risk students – Enhanced aid is needed for students losing Pell Grant eligibility and for upper division students that are on track to graduate but are facing financial setbacks. Providing these resources for on-track students who are at risk due to financial setbacks will be a significant aid in increasing our graduation rate. The program will also reach out to students who have left in the past two years, but are close to completion. It is anticipated that up to 50 additional students per year can receive assistance through this program.
• Institute a Summer Success Academy for at-risk freshmen – Data shows that there are identifiable characteristics of some admitted students that correlate highly to academic struggles and attrition. Rather than defer admission for the weakest students we propose piloting a Summer Success Academy beginning in 2016. Students will be admitted for the fall on the condition that they attend the Academy—a 7-week long, 7-credit-hour program in which all students will be enrolled in Freshman Learning Communities (that extend into fall and spring) and

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are exposed to intensive academic support, including Supplemental Instruction, one-on-one advisement, and financial literacy workshops.

Land Grant Match

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.

Section 1449 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 requires that “the State shall provide matching funds from non-Federal sources. Such matching funds shall be for an amount equal to not less than ... 100 percent of the formula [grant] funds to be distributed to the eligible institution for fiscal year 2007 and each year thereafter...”

Section 1449 also, defines non-federal sources as “funds made available to the eligible institution either through direct appropriation or any other authority (other than the authority to charge tuition and fees paid by students) provided by a State to an eligible institution to raise revenue, such as gift acceptance authority or user fees)…”

For KSU, the only source available for matching federal Land Grant funds is the direct state appropriation. Since 2008, the state appropriation to KSU has declined by approximately 15%. This, combined with increases in federal Land Grant awards, has left KSU under matched by approximately $3.36 million in fiscal year 2016. Declining enrollment and declining tuition revenue has also exacerbated this problem as the prior administration at KSU was forced to divert a portion of the state appropriation from the Land Grant match to the University's general operating budget. As a result, for FY 2016, KSU's match rate for federal Land Grant funds is 50.05%.

With this additional General Fund support for the Land Grant program, KSU can expand the KSU Center for Sustainability of Farms and Families. This Center was founded in 2012 with the goal to foster development, increase production diversification, and improve profitability of tobacco dependent small farms, as well as limited-resource farmers within the Commonwealth. Initial funding of the Center from the Agricultural Development Board has led to a highly successful mini-grant program for small farmers. Now the Center is poised to take its next step to help farmers and families with additional extension and research programs to serve the underserved around Kentucky in KSU's service area, as well as urban, rural, and SOAR areas of Kentucky unmet needs of the underserved.

The KSU Land Grant Program proposes to start new initiatives to serve the underserved through the Center for Sustainability of Farms and Families by the addition of the following research/extension/teaching units in:

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1. Rural Development and Rural Sociology.
2. Food Science and Value-Added Technology.
3. Agriculture Economics and Value-Added Marketing.
4. Applied Biosystems Engineering.
5. Urban Agriculture,
6. Sustainable Poultry and Beef Production.
7. Sustainable Vegetable Breeding,
8. Organic/Sustainable Agronomy,
9. Nutrition and Human Health.
10. Youth Development and 4-H Specialist, and
11. Six small farm Extension agents will be deployed in the SOAR and urban areas in in Kentucky.

Summary

While Kentucky State University faces significant challenges, this is also a time of opportunity. Strategic investments in retention, academic quality, and recruitment will reverse declining enrollment and return KSU to a position of academic and financial stability.

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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 2015-16 Requested FY 2016-17 Requested FY 2017-18 Requested Total Requested

Bond Funds 9,443,000 143,819,000 0 153,262,000

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

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

TOTAL EXPENDITURES BY UNIT 9,443,000 145,819,000 0 155,262,000

1 435U16C003 Repair Boilers and Aging Distribution Lines Phase II Construction

Total Repair Boilers and Aging Distribution Lines Phase II 9,443,000 0 0 9,443,000

Bond Funds 13,014,000 0 13,014,000

Bond Funds 0 0 9,443,000

2 435U16C255 School of Nursing Construction

Total School of Nursing 0 13,014,000 0 13,014,000

3 435U16C264 Roof Repair & Replacement Pool 2016 Construction

Bond Funds 2,860,000 0 2,860,000

Total Roof Repair & Replacement Pool 2016 0 2,860,000 0 2,860,000

4 435U16C256 Capital Renewal & Maintenance Projects Pool 2016 Construction

Bond Funds 0 1,302,000 0 1,302,000

Total Life Safety Upgrade Pool 2016 0 1,190,000 0 1,190,000

6 435U16C259 Upgrade Information Tech Infrastructure 2016 Information Technology System

Bond Funds 10,000,000 0 10,000,000

Bond Funds 4,580,000 0 4,580,000

Total Expand Emergency Notification System 0 4,580,000 0 4,580,000

8 435U16C265 Improvements to Instructional Technology Information Technology System

Bond Funds 2,500,000 0 2,500,000

Total Improvements to Instructional Technology 0 2,500,000 0 2,500,000

9 435U16C266 Enhance the Enterprise Resource Planning System Information Technology System

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

Bond Funds 3,642,000 0 3,642,000

Total Construct Warehouse 2016 0 3,642,000 0 3,642,000

11 435U16C261 Integrated Digital Campus Information Technology System

Bond Funds 11,450,000 0 11,450,000

Total Integrated Digital Campus 0 11,450,000 0 11,450,000

12 435U16C001 Construct Business & Technology Center Construction

Bond Funds 31,528,000 0 31,528,000

Total Construct Business & Technology Center 0 31,528,000 0 31,528,000

13 435U16C002 Construct Classrooms/Performing Arts Center Construction

Bond Funds 56,753,000 0 56,753,000

Total Capital Renewal & Maintenance Projects Pool 2016 0 1,302,000 0 1,302,000

Bond Funds 1,190,000 0 1,190,000

Total Upgrade Information Tech Infrastructure 2016 0 10,000,000 0 10,000,000

7 435U16C262 Expand Emergency Notification System Information Technology System

Total Enhance the Enterprise Resource Planning System 0 5,000,000 0 5,000,000

10 435U16C263 Construct Warehouse 2016 Construction

Total Construct Classrooms/Performing Arts Center 0 56,753,000 0 56,753,000

5 435U16C258 Life Safety Upgrade Pool 2016 Construction

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2016-2018 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 Agency: Postsecondary Education Institutions

Cabinet: Postsecondary Education Appropriation: Kentucky State University

SUMMARY BY FUND SOURCE FY 2015-16 Requested FY 2016-17 Requested FY 2017-18 Requested Total Requested

14 435U16C257 Acquire Land/Campus Master Plan 2016 Construction

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

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

Total Acquire Land/Campus Master Plan 2016 0 2,000,000 0 2,000,000

0 0 0 0

0 0 0 0

Grand Total 155,262,000

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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: Repair Boilers and Aging Distribution Lines Phase II KBUD Project Number: 435U16C003

KBUD Project Number: 435U16C003

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? If (Yes, Additional Funding), provide the following information: eMars Project Number (Agency, Fund): New Total Project Cost: $ 9,443,000 Capital Project Type: Major Renovation

Capital Project Type: Major Renovation

Project Description

Phase II is required to complete the current project "Repair Boilers and Aging Distribution Lines" original scope. Consulting engineers during the programming design on the current project analyzed the existing coal-fired central plant and steam distribution system. It needs to be replaced with a hot water distribution system and a network of distributed gas-fired boiler rooms. Four boiler rooms will be renovated to replace the coal boiler system. Current plan is to locate boiler rooms in Bell Gym, Blazer Library, Hathaway Hall and Boiler Plant. New hot water piping in the utility tunnels will distribute heat to the buildings. A distributed hot water system is the best life cycle long-term option for the University.

Phase II will renovate two of the distributed boiler rooms and associated utility tunnel piping. That will serve approximately half the buildings on KSU campus north of US60. Phase I is currently in design to renovate two Boiler Rooms (Bell Gym and Blazer Library). All tunnel steam piping for the buildings they serve will be replaced in the current funded project.

KSU existing steam plant will continue to operate providing heat to half the campus until Phase II is complete.

PROJECT BUDGET

Completion Date: 06 / 2016

40

Capital Budget Record CBR-02 Branch: Executive Branch Cabinet: Postsecondary Education Agency: Postsecondary Education Institutions Appropriation: Kentucky State University Project Title: School of Nursing

KBUD Project Number: 435U16C255

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?

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

eMars Project Number (Agency, Fund):

New Total Project Cost: $ 13,014,000

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. Kentucky State University (KSU) is the first HBCU to offer a post-baccalaureate (BSN-DNP) Doctor of Nursing Practice program in the role of Adult Gerontology Primacy Care Nurse Practitioner.

KSU is blazing trails nationally as well. According to the American Association of Colleges of Nursing (AACN), the BSN-DNP program at KSU joins only 14% of nursing programs nationally that offer the BSN-DNP as an entry-level option into advanced practice (AACN, 2014). The inaugural BSN-DNP class will be admitted January 2015.

The available space in the existing facility is inadequate and not well designed for the needs that are required by the Nursing program. This project would provide adequate program space by means of the addition and the renovation of existing space to serve the administrative and academic needs of the program.

PROJECT BUDGET

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

Completion Date: 08 / 2018

41

42

Capital Budget Record CBR-02

Branch: Executive Branch

Cabinet: Postsecondary Education

Agency: Postsecondary Education Institutions

Appropriation: Kentucky State University

Project Title: Roof Repair & Replacement Pool 2016

KBUD Project Number: 435U16C264

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: $ 2,860,000

Capital Project Type: Multiple Project Pool

Project Description

Roof repair and replacement of older and deteriorating roofs. Replacement of roofs on Julian Carroll Academic Services Building, Betty White Health Building and Exum Health and Physical Education Center. Total repair or replacement roof area of 140,627 square feet.

PROJECT BUDGET

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

Completion Date: 06 / 2018

43

Capital Budget Record CBR-02

Branch: Executive Branch Cabinet: Postsecondary Education Agency: Postsecondary Education Institutions Appropriation: Kentucky State University Project Title: Capital Renewal & Maintenance Projects Pool 2016

KBUD Project Number: 435U16C256

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: $ 1,302,000

Capital Project Type: Multiple Project Pool

Project Description

Capital Renewal based on CPE/VFA facility assessment. Pool projects cover renewal of targeted building systems to include flooring, HVAC, and electrical systems. This pool includes flooring renewal for Blazer Library, the Exum Facility, Hume Hall, Jackson Hall and Shauntee Hall; Blazer Library, the Exum Center, Hume Hall and Jackson Hall; Electrical renewal for Blazer Library, the Student Center/Cafeteria and Carver Hall.

PROJECT BUDGET

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

Completion Date: 06 / 2018

• General Fund -20,000 0 0 0
• Total Costs -20,000 0 0 0
• Total Expenditures 0 0 0 0

Fund Source

44

Capital Budget Record CBR-02

Branch: Executive Branch

Cabinet: Postsecondary Education

Agency: Postsecondary Education Institutions

Appropriation: Kentucky State University

Project Title: Life Safety Upgrade Pool 2016

KBUD Project Number: 435U16C258

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: $ 1,363,000

Capital Project Type: Multiple Project Pool

Project Description

This project would install new or upgrade current life safety systems on campus. Upgraded fire alarm systems for Chandler Hall, Combs Hall, Kentucky Hall, McCullin Hall and "The Halls". Upgraded fire suppression systems for Shauntee Hall and Russell Court. ADA improvements to the Exum Facility, the Athletic Complex and Campus pedestrian walks, Bell Gym steps, etc.

PROJECT BUDGET

Has this project been reviewed by the Department for Facilities and Support Services? No

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Capital Budget Record CBR-04

Equipment Title: Upgrade Information Tech Infrastructure 2016

KBUD Project Number: 435U16C259

SYSTEM PROJECT DOCUMENTATION

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

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

eMars Project Number (Agency, Fund):

New Total Project Cost: $ 10,000,000

Project Description

Both KSU's fiber network and its wireless network need to be expanded and upgraded. Create a fully wireless campus where the network can be accessed by students, faculty, staff, alumni and visitors anywhere and anytime while on campus.

PROJECT BUDGET

IMPACT ON OPERATING BUDGET

46

Capital Budget Record CBR-04

Equipment Title: Expand Emergency Notification System KBUD Project Number: 435U16C262

KBUD Project Number: 435U16C262

SYSTEM PROJECT DOCUMENTATION

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

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

eMars Project Number (Agency, Fund):

New Total Project Cost: $ 4,580,000

Project Description

The purpose of this project is to continue to improve upon the University's emergency notification capability. This includes purchasing and installation of a campus wide public address system, and campus sirens. Additional hardware components include increasing the number of digital display Devices, equipping classrooms with early warning notification Capability and enhanced notification and identification capability in University police vehicles.

PROJECT BUDGET

IMPACT ON OPERATING BUDGET

47

Capital Budget Record CBR-04

Equipment Title: Improvements to Instructional Technology

KBUD Project Number: 435U16C265

SYSTEM PROJECT DOCUMENTATION

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: $ 2,500,000

Project Description

This project includes software and hardware improvements for learning in order to increase student achievement and enhance the use of innovative technology in instruction.

PROJECT BUDGET

IMPACT ON OPERATING BUDGET

48

Capital Budget Record CBR-04

Equipment Title: Enhance the Enterprise Resource Planning System

KBUD Project Number: 435U16C266

SYSTEM PROJECT DOCUMENTATION

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: $ 5,000,000

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

49

Capital Budget Record CBR-02

Branch: Executive Branch

Cabinet: Postsecondary Education

Agency: Postsecondary Education Institutions

Appropriation: Kentucky State University

Project Title: Construct Warehouse 2016

KBUD Project Number: 435U16C263

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: $ 3,642,000

Capital Project Type: Construction

Project Description

Construct a warehouse and storage building. Storage is required for furniture and equipment surplus items and for temporary storage of equipment from renovated spaces. Surplus is currently stored all over the university in small spaces needed for program storage activities.

PROJECT BUDGET

Has this project been reviewed by the Department for Facilities and Support Services? No

Completion Date: 06 / 2016

50