Further, President Brown stated that staff looked into bankruptcy attorneys at the request of Regent Harnice at the April 23rd meeting and were able to identify the leading attorney for higher education bankruptcy, Nowack & Olsen. The firm listed the institutions they represented in bankruptcy proceedings and those five institutions which declared bankruptcy subsequently closed. St. Catherine's College, formerly of Kentucky, also filed bankruptcy and subsequently closed.
President Brown declared that layoff process and related Board meeting is the most difficult item he has requested from the Board since the start of his tenure at Kentucky State University because while he is generally optimistic, today he is less than optimistic. He stated that currently, all CPE institutions are responding to an internal inquiry of HB 40, Kentucky's Wage Theft Act, as it relates to telecommuting. Campuses are having difficulty demonstrating that all of the in-person jobs translate to online.
President Brown then introduced the report titled, Thorobred Strong: Adjusting to New Realities, Advancing Our Historic Mission (hereinafter “Thorobred Strong”), which lays out the context for the new reality of KSU’s campus based on the COVID-19 pandemic and KSU’s efforts to maintain its historic mission. The Board’s attention was drawn to the topics presented in this report, particularly the University’s abatement of discretionary spending, the hiring restrictions for personnel, the need for a realignment of workforce operations, reduction in force, the fiscal impact of the pandemic, mid-year interim budget measures to try to close the Fiscal Year in the black, the CARES Act and legal guidelines for the application of funds, and the budget forecast with multiple scenarios.
President Brown noted that Regent Banks and Regent Reddy joined the meeting.
Regent Barfield inquired about how much KSU will receive from the CARES Act and President Brown responded that the amount, if any, is undetermined.
Regent Barfield then addressed the issue of whether or not colleges and universities would be open for live instruction in the fall and President Brown responded that none of CPE Institutions are officially closed and that discussions are underway regarding plans for “fully reopening” in the fall semester. It is the consensus that public higher education should put forth