Normal campus operations have been upended by the COVID-19 global pandemic. The statewide shelter-in-place led to reassigning non-essential campus personnel into teleworking professionals and ultimately nullified the on-campus student census. In this new reality, campus staff have been unable to collect outstanding student balances (in some cases complicated by furloughed or unemployed parents) and/or collect outstanding grant funds. Campus administration has also expended unbudgeted funds to purchase personal protective equipment for campus workers (and potential returning students). All of which is underscored by the need to refund in cash or credits a prorated portion of auxiliary revenues to students in campus housing or with meal plans. As a result, Kentucky State University projects a $6,072,860 loss of revenues and/or unbudgeted expenditures in the final quarter of the fiscal year.
PROJECTED LOSS OF REVENUES & UNBUDGETED EXPENSES
| Additional Internet Points and Connectivity | 157,586 |
|---|---|
| Auxiliary Services (e.g., Flex, Bookstore) | 415,250 |
| Cash Housing Refunds | 74,500 |
| COVID-19 Liberal Leave Extension | 691,321 |
| Extension Personnel Communication Kits | 78,000 |
| Evans-Allen Research Assistantships | 500,000 |
| Graduation Fee Collection | 30,000 |
| Housing Credits Applied to Accounts | 728,937 |
| Inactive Poultry and Vegetable Processing | 63,000 |
| Online Expansion and Instructional Software | 447,550 |
| Quality Matters\circledR Review of Online Courses | 135,760 |
| Sodexo\circledR Contract Costs | 319,722 |
| Uncollected Accounts Receivables | 2,431,234 |
| TOTAL | 6,072,860 |
It is important to note that in addition to the immediate campus concerns with the loss of revenues and/or unbudgeted expenditures related to COVID-19, external to the campus there are serious concerns about future state revenues and appropriations. Even more there are national concerns about a likely recession impacting the ability of students and parents to afford college tuition and fee payments.
Kentucky State University is closely monitoring the shifting higher education landscape to assess and interpret real-dollar implications for future campus operations. Consider the unusual decision of the Commonwealth legislature to pass a one year rather than biennial budget citing concerns about future tax receipts and economic activity for the short term and possibly long term. Shifting revenue reports create a tangible possibility for midyear cuts from the upcoming FY2021 one-year budget appropriation.