KENTUCKY STATE UNIVERSITY MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) JUNE 30, 2022

• Kentucky House Bill 1 was passed by the 2022 Regular Session of the Kentucky General Assembly provides a state expenditure plan for the 2022-24 biennium. The University was appropriated $28,165,600 for fiscal year 2023. House Bill 1 Part II(I)(1), the executive branch budget bill that passed in the regular session of 2022, includes a $683.5 million asset preservation pool in General Fund-supported bond funds. The asset preservation pool provides funding for individual asset preservation, renovation, and maintenance projects at Kentucky's public postsecondary institutions in education, general, and state-owned and operated residential housing facilities. The Council will oversee the use of the funds received from the asset preservation pool. The University been allocated $8,039,000 and $8,039,000 for fiscal years ending June 30, 2023, and June 30, 2024, respectively from the asset preservation pool. The University is required to match 15% of the funding which will result in $1,206,000 and $1,206,000 for fiscal years ending June 30, 2023, and June 30, 2024, respectively.

The overall financial position of the University was stable during fiscal year 2022. Revenue streams were stressed. As the University adapts to present economic environments, new opportunities for funding will be explored to complement state support. Executive management's goal is to deliver exceptional programs and services to students and constituents while maintaining financial stability. Management believes Kentucky State University is able to sustain its financial position and solidify its standing as a regional university of excellence.

Contacting the University's Financial Management

This report is designed to provide our stakeholders with information needed to understand Kentucky State University's financial condition and results of operations for the fiscal year ended June 30, 2022. For questions about this report or for additional financial information, contact Kentucky State University, Chief Financial Officer, Vicki Dunaway, at 400 East Main Street, ASB Suite 433A, Frankfort, KY 40601.

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