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:

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:

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.