KENTUCKY STATE UNIVERSITY Board of Regents

• Assumes fixed tuition rates for the next two years and incorporates a four year tuition guarantee program to improve retention and graduation rates.

Goal 3 – Increase the University’s Financial Strength and Operational Efficiency The proposed budget addresses Goal 3 as follows:

• Assumes conservative headcount projections of 1,750 in FY 2018-19 and 2,000 in FY 2019-20.
• Provides planning certainty to program areas by budgeting for two years.
• Includes a contingency for the first time in several years.
• Addresses structural problems related to the print shop and the book scholarship program.
• Incorporates significant increases in pension costs over the next two years.

Goal 4 – Enhance the Impact of External Relations and Development

• Aligns Alumni Relations with Brand Identity to focus Institutional Advancement staff solely on identifying additional resources for the University.
• Coordinates funding programs with expected use of endowment income in accordance with the approved spending policy.

COMMITTEE/PROGRAM ACTION: N/A

PROGRAM IMPLICATIONS: Program impacts will be in accordance with the recommendations of the Green Ribbon Commission.

FISCAL IMPLICATIONS: The proposed budget addresses long term structural issues and aligns ongoing revenues with ongoing expenses. Reductions in state funding along with necessary restructuring led to a base reduction of 16.3% across the University. Fixed costs such as utilities, necessary contracts such as Banner, Blackboard, etc. were exempted from reductions. All contracts are being reviewed and modified as possible to gain savings and increase efficiency. As a result of this efficiency review, the campus print shop will be closed as of July 1, 2018. The review will continue throughout the year in an effort to find additional efficiencies.