• Restoration of adequate financial reserves to levels established by Board policy or financial best practices.
  • A positive outlook for future revenues and expenditures.
  • The ability to meet all current and projected financial obligations.
  • Financial exigency may only be terminated when the Board of Regents, after reviewing relevant data and petitions, formally declares by vote in an open public session that the state of financial exigency no longer exists due to the significant and sustained improvement of KSU's financial conditions.
  • The Board's decision to terminate financial exigency shall be communicated promptly to the KSU community.

Post-Exigency Considerations

  • Following the formal termination of financial exigency, KSU shall prioritize the strategic restoration of resources, programs, and positions that support KSU's core educational mission and strategic priorities. These decisions will be made through KSU's regular strategic planning and budgeting processes, with appropriate consultation and input from relevant university constituencies.
  • Academic programs or administrative units that were eliminated or substantially reduced during financial exigency may be considered for reinstatement or enhancement only through the normal institutional approval processes for new programs or significant program modifications. There is no automatic reinstatement.
  • To the extent feasible and consistent with university needs and policies, KSU will give good-faith consideration to qualified individuals whose positions were eliminated or who were laid off due to financial exigency should similar positions for which they are qualified become available within one year post-termination of exigency.

Communication

Throughout all phases of considering, declaring, implementing, or terminating financial exigency, KSU is committed to ongoing, transparent, and timely communication with the KSU community through university channels. This includes providing updates on the financial situation, processes being followed, decisions made, and the rationale behind those decisions, to the extent possible and appropriate.

Severability

If any part of this policy is found to be in conflict with applicable laws, regulations, or other governing KSU policies, the conflicting part of this policy will be considered invalid, but the remaining parts will stay in effect. The policy shall be interpreted to be consistent with all applicable legal requirements.

REFERENCES AND RELATED MATERIALS:

  • KRS 164.350, KRS 164.360, and related Kentucky Revised Statutes
  • The Gold Book
  • Faculty Dismissal Policy
  • Reduction in Force Policy