Andy Beshear Governor
April 30, 2020
100 Airport Road, 2nd Floor Frankfort, Kentucky 40601 Phone: 502-573-1555 http://www.cpe.ky.gov
Aaron Thompson, Ph.D. President
Kentucky Public University Presidents, KTCS President
Presidents.
The Council on Postsecondary Education and the heads of all state agencies received the attached memo from State Budget Director John Hicks toward the end of the day yesterday. As can be seen in the memo, the State Budget Director is anticipating a General Fund revenue shortfall in the current fiscal year and is asking Executive Branch agencies to submit 1.0% General Fund reduction plans for 2019-2020 appropriations by close of business Friday, May 8th.
Council staff received word this morning from OSBD staff that the 1.0% budget reduction plan request applies to the public postsecondary institutions' revised General Fund appropriations (each institution's regular appropriation plus any performance fund distribution and the current year appropriation for KSU's land grant match), with the only exemption being UK's debt service. The State Budget Director has asked that CPE share this information and coordinate with postsecondary institution presidents to ensure that the budget reduction plans are submitted by the deadline. Council staff believes that the hiring and discretionary spending provisions outlined in the memo should not apply to the institutions and have contacted OSBD to ensure that they share this understanding. We will follow up with any guidance we receive.
Obviously, this is a very fluid situation and there will likely be additional information forthcoming from OSBD in coming days. CPE Budget and Finance staff will be communicating with OSBD staff later today and will pass along any additional information as soon as it is received.
We understand that a 1.0% reduction in General Fund with only two months remaining in the fiscal year will be a difficult challenge. Please know that CPE staff is available to support you and your institutions in any way we can.
Sincerely, Aaron Thompson, Ph.D.
Aaron Thompson, Ph.D. President
Attachment
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