HB 303 enacted by the 2016 General Assembly, contained a provision that requires the University to develop, in consultation with the Council on Postsecondary Education, a management and improvement plan, with annual goals and measurable metrics to meet those goals. This plan has been developed in coordination with both the University's strategic plan and enrollment management plan and, as a result, represents an integrated approach to transforming Kentucky State University into the high-performing, small liberal arts institution envisioned in the University's statutory charter.

Over the past four years, Kentucky State University has experienced a steep decline in both its student headcount and full-time equivalent (FTE) student enrollment. Between fall semesters 2010 and 2015, the University's student headcount enrollment decreased by 1,265 students, or 44.4 percent. About two-thirds of this decline was caused when over 600 students were not allowed to continue enrollment due to nonpayment of bills, but other factors contributed, as well.

The loss in student enrollment resulted in marked declines in both gross billable tuition and fee revenue and total public funds' revenue1 during this period. In fact, between fiscal years 2010-11 and 2015-16, KSU's gross billable tuition and fee revenue decreased by 10.2 million, or 44.4 percent, and when combined with cuts in state funding of about 2.5 million over this same period, the university's total public funds revenue decreased by 12.7 million, or 24.6 percent.

Among institutions in the comprehensive sector, the set of circumstances described above is unique to Kentucky State University. During the same period, the average increase in gross tuition and fee revenue among comprehensive universities other than KSU was $28.6 million, or 20.5 percent, and the average increase in total public funds revenue was $22.3 million, or 10.4 percent (CPE, Comprehensive Database).

The loss in total public funds revenue has placed considerable stress on KSU's operating budget. The University responded by implementing a number of cost savings and cost avoidance strategies, including several rounds of personnel layoffs. Actions to stabilize university finances resulted in a balanced budget for fiscal year 2015-16. Enrollment declines continued in 2015-16 and as a result, the University did not meet the budgeted revenue level leading to an unplanned use of fund balance. The University has a balanced budget in place for 2016-17 that does not anticipate use of any reserves for ongoing operating expenses. Fall enrollment exceeded projections and use of fund balance for operations is not anticipated in FY 2016-17.