===== PAGE 1 ===== # Kentucky State University Board of Regents ## RESOLUTION OF THE BOARD OF REGENTS Whereas, the Board of Regents of Kentucky State University ("KSU" or the "University") as created by Kentucky Revised Statutes 164.310 has the statutory authority to govern, manage and operate KSU; Whereas, the Board of Regents has entrusted the day-to-day administration and operation of KSU to President Raymond M. Burse ("President"); Whereas, by virtue of his position as President of Kentucky State University, Raymond M. Burse is the Chief Administrative and Academic Officer of KSU; Whereas, among the duties of the KSU President is to recommend policies and actions to the Board of Regents; Whereas, the Board has requested that the President update, centralize, manage, and maintain all university policies and procedures; Whereas, the Kentucky State University Faculty Handbook is a policy manual of the Board; Whereas, on April 25, 2003, the KSU Board approved the division of several provisions of the Faculty Handbook into administrative regulations which do not require Board approval for amendments and/or changes; Whereas, President Burse recommends that all university policies require Board approval for amendments; and NOW, THEREFORE BE IT RESOLVED AND APPROVED that the Board of Regents rescinds its April 25, 2003, action regarding the Faculty Handbook and from this date require that all amendments and/or changes to all university policies be approved by this body. This the 7th day of November 2014. ===== PAGE 2 ===== ## BUDGET REDUCTION AND REORGANIZATION WORKING PLAN NOVEMBER 7, 2014 Kentucky State University faces significant challenges financially and academically. Financially, the current fiscal year operating budget has a deficit of approximately $7 Million. Academically, the institution's enrollment, retention and graduation rates are at unacceptable levels. All the financial and academic problems must be addressed while continuing to run and operate the institution. Increased enrollment in the short term will help to cure some ills but that cannot happen soon enough to relieve the deficit spending. Getting the faculty complement to be congruent with the level of enrollment must occur but cannot occur soon enough given that over 60% of the faculty at KSU is tenured. (In some cases individuals without terminal degrees were granted tenure and some others who hold tenure are in areas for which there are no programmatic needs.) Thus, the institution is left to do budget reductions through curtailing expenditures and the elimination of positions. Suggestions of across-the-board salary and pay reductions as well as furloughs have not been received as the way to proceed. What follows is a budget reduction plan which helps to reduce the deficit but does not get KSU to a balanced budget. These recommendations are to be enacted and taken while other actions and approaches are studied further. What is presented is a working budget plan which will be updated as additional actions are evaluated and approved by the Board on recommendation of the President.
FY 15FY 16
I.REVENUE SHORTFALL
A.Enrollment Drop$3,873,469$3,873,469
B.Housing Drop$1,390,503$1,390,503
C.Budgeted Deficit$1,500,000-
D.Student with PIO$1,582,756-
E.Students without PIO$2,038,670-
F.Destiny/Legacy change to non-resident-(1,220,443)
TOTAL$8,994,895$4,043,529
G.Contingency Not Used$750,000-
H.Unbudgeted Positions$38,000-
I.E&G Expenditure Run Rate Savings$1,686,979$1,686,979
J.Auxiliary Expenditure Run Rate Savings$1,862,846$1,862,846
TOTAL$4,337,825$3,549,825
K.Other Opportunities
Discount Tuition Rates to State Government Employees
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II.EXPENDITURESFY 15FY 16
A.Contract and Vendor Payments\nKSU spends approximately $50 million annually with vendors and contractors. Seventy-five percent of the spending is with 34 vendors. (Attachment A) Realization of potential savings is not estimable at this time, but a 10% savings will generate $3.8 million. All vendor relationships and contracts are being reviewed. Additionally, a University practice of encumbering funds for a variety of activities, approved and unapproved, at the beginning of each fiscal year will terminate, providing a truer picture of actual expenditures.
CONTRACT AND VENDOR PAYMENTS TOTAL$ --$ --
B.External Relations and Development\nSeven positions will be eliminated in External Relations and Development. Eliminated positions are from staff performing work duplicative of work in other offices and/or work that should be in other offices. Also included are positions covering work that the University has no need for.\nInstitutional research will move to the President's Office and will join other data resources under a centralized function supporting the University from dispersed locations.\nRetirement options will be discussed with retirement eligible employees.\nThe job descriptions for the Communications Office positions will be revised to meet the new objectives and approaches of the office. Present
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incumbents will be allowed to apply for the new positions.\nAll other positions will be evaluated and assessed for need and fit.
.EXTERNAL RELATIONS AND DEVELOPMENT TOTAL$ 325,677$ 572,253
C.Information Technology\nThe structure of IT will be reformed around major functions – infrastructure, application services, and core services. This will allow our existing resources to be dedicated to one service rather than being responsible for everything. This represents only part of what is needed as “Banner is broken”. We are exploring options for fixes but want a fix which delivers what companies market (ease of operation and industry leading best practices) and can be easily adapted to our needs.\nTo enhance customer service we will add a live operator to allow IT and the One-Stop Shop to perform their intended and stated purposes.\nAll campus IT resources (E&G, grant and contract funded) will report to IT from their dispersed locations.
INFORMATION TECHNOLOGY TOTAL($ 71,982)($ 143,964)
D.Student Success and Enrollment Management\nSSEM will be renamed Student Affairs and will take on the traditional role of student affairs with additions that drive customer service.\nTwo positions will be eliminated. The Office of Enrollment Services will be eliminated as well as the positions in
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that office. Positions from other functions (External Relations, Enrollment Services) will be reassigned to functions needing to improve customer service (Registrar and Financial Aid).\nStudent Life/Activities will be evaluated to determine if programs our students need and want are being delivered and driven.
STUDENT AFFAIRS TOTAL$ 96,086$ 192,173
E.Academic Affairs\nThe position of Provost will be eliminated to create the position of Vice President for Academic Affairs and Dean of the University. Subordinate positions in that office will be determined by an assessment of need and the determined academic direction.\nEight positions in Academic Affairs will be eliminated. All employment agreements will go to 9 months. All Chairs and Coordinators will be on 9-month contracts, and the University will contract as needed for summer services.\nAll dean positions in the University will be eliminated.\nAll adjunct positions will be eliminated until each full-time faculty member has a full teaching load or discipline expertise is needed and not found in our existing faculty complement.\nAll support functions in Academic Affairs will be evaluated for performance delivery and impact on student performance, retention and graduation rates.
ACADEMIC AFFAIRS TOTAL$ 490,359$1,365,073
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F.Athletics\nInstitutional support to Athletics will be reduced ratably over the next 18 months.
ATHLETICS TOTAL$ 167,000$ 333,000
G.Finance\nOne position will be eliminated.\nCurrent collection contracts will be eliminated for usefulness and deliveries. Contact with the Department of Revenue has been made and test files are being share.\nThe internal audit function will be brought back in-house.
FINANCE TOTAL$ 40,201$ 67,161
H.President's Office\nA new organization named "Facilities and Maintenance Operations" will be created by merging the positions of Director of Facilities with Associate Vice President for Capital Planning, Construction and Facilities headed by a Director who will report to the President.\nThe position of Assistant for Security and Risk will be created to manage campus risk, risk assessment and University Police.
PRESIDENT'S OFFICE TOTAL($ 97,500)($ 195,000)
I.Other Items\nEliminate sick leave credit to KTRS$ 250,000$ 125,000
Suspend tenure and promotion for the 2014-2015 academic year.\nAll term contracts for faculty members will not be renewed at the end of their
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current term. All tenure track faculty members with less than three years of service will be given notice of non-reappointment prior to December 15, 2014. All tenure-track faculty members with three or more years of service will be given notice of non-reappointment prior to May 1, 2015. In all cases each faculty member will be evaluated for retention based on fit, performance and programmatic need during the teach out period of their employment.Once the procedure is developed and approved by the Board of Regents, all tenured faculty members will be evaluated using the approved post-tenure procedures and policy.
Reduce Overtime
The University will create a pool of funds to be made available to those who are retirement eligible to retire. Employees who retire will be paid three to six months salary depending on length of KSU service. Priority will be given to tenured faculty members not supported by any grant. Program will be available until the University determines it has reduced its recurring obligation to a level which allows it to operate efficiently.
RETIREMENT POOL TOTAL($ 250,000)($ 250,000)
III.Reorganization
Approve the structure set forth in attached organizational chart, Attachment B.
GRAND TOTAL$ 949,841$2,135,626
===== PAGE 8 ===== ATTACHMENT A TOP 75% VENDOR PAYMENTS ===== PAGE 9 =====
Vendor NameNumber of Transaction Payments to Vendor in Last 12 MonthsSum of Payments to Vendor in Last 12 Months
KY State Treasurer45$13,921,814
Frankfort Electric & Water Plant Board40$5,277,209
Aramark Campus Services47$2,248,442
University of KY20$2,072,956
Xerox Corporation2$1,903,792
AT&T15$1,488,351
Ellucian Company LP5$1,121,378
Neace Lukens Inc6$1,102,013
Dell Marketing LP31$961,856
University of Louisville8$940,784
Johnson Controls Inc14$757,259
Columbia Gas of KY10$562,817
Fisher Scientific36$509,281
IBM Corporation4$443,555
Knight School of Welding LLC2$411,080
LI-COR Inc2$320,794
Kroger Limited Partnership68$293,885
US Bank2$289,310
OfficeMax102$260,526
Blackboard Inc2$259,908
Lowe's Home Centers Inc58$250,803
Securitas Security Services1$218,003
Blackbaud Inc5$215,367
Robert Half Management Resources11$208,866
Al's Complete Lawn Care LLC3$206,482
Creative Image Technologies13$197,189
Auburn University2$187,608
PerkinElmer Health Sciences3$181,325
NEC Corporation of America7$179,634
Apple Inc22$154,749
Xpedx LLC2$148,923
Pearson Education Inc2$141,600
Alpha Mechanical Service Inc5$141,220
Diners Club84$141,057
Cumulative Total% of SpendCumulative % of SpendCount
$13,921,81427.7%27.7%1
$19,199,02310.5%38.2%2
$21,447,4654.5%42.6%3
$23,520,4214.1%46.8%4
$25,424,2143.8%50.5%5
$26,912,5653.0%53.5%6
$28,033,9432.2%55.7%7
$29,135,9562.2%57.9%8
$30,097,8111.9%59.8%9
$31,038,5951.9%61.7%10
$31,795,8531.5%63.2%11
$32,358,6701.1%64.3%12
$32,867,9511.0%65.3%13
$33,311,5060.9%66.2%14
$33,722,5860.8%67.0%15
$34,043,3800.6%67.7%16
$34,337,2650.6%68.3%17
$34,626,5750.6%68.8%18
$34,887,1010.5%69.3%19
$35,147,0080.5%69.9%20
$35,397,8110.5%70.4%21
$35,615,8140.4%70.8%22
$35,831,1810.4%71.2%23
$36,040,0470.4%71.6%24
$36,246,5290.4%72.0%25
$36,443,7170.4%72.4%26
$36,631,3260.4%72.8%27
$36,812,6510.4%73.2%28
$36,992,2850.4%73.5%29
$37,147,0340.3%73.8%30
$37,290,9570.3%74.1%31
$37,432,5570.3%74.4%32
$37,573,7770.3%74.7%33
$37,714,8340.3%75.0%34
===== PAGE 10 ===== ATTACHMENT B REORGANIZATION CHART ===== PAGE 11 =====
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