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.
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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