KENTUCKY STATE UNIVERSITY MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) JUNE 30, 2023 (UNAUDITED)

• Additionally, certain programs were closed to enrollment starting in 2023 with final program close scheduled in five years. These programs include the Master of Public Administration, Bachelor of Science in Chemistry, Bachelor of Science in Mathematics, Bachelor of Arts in Social Sciences, and Bachelor of Arts in English.
• Regional Stewardship – The University continues to meet economic and community needs through collaborative initiatives with businesses, community-based organizations, schools and other educational agencies, citizens, and local and state officials.
• Land Grant – The University continues to uphold its land-grant mission by offering innovative research opportunities aboard the Kentucky River Thoroughbred research vessel and through community-based extension services at the Rosenwald Center for Families and Children.
• Kentucky House Bill 1, enacted during the 2022 Regular Session of the Kentucky General Assembly, outlines the state's expenditure plan for the 2022–2024 biennium. The University received an appropriation of $28.2 million for fiscal year 2023. House Bill 1, Part II(1)(1)—the executive branch budget bill passed during the 2022 Regular Session—establishes a $683.5 million asset preservation pool funded through General Fund-supported bonds. The asset preservation pool supports individual preservation, renovation, and maintenance projects at Kentucky's public postsecondary institutions, including educational facilities, general infrastructure, and state-owned residential housing. The Council on Postsecondary Education is responsible for overseeing the allocation and use of funds from the asset preservation pool. The University has been allocated $8.0 million from the asset preservation pool for each fiscal year ending June 30, 2023, and 2024. The University is required to provide a 15% match, or $1.2 million for each fiscal year ending June 30, 2023, and 2024.

Throughout fiscal year 2023, the University maintained a stable financial position, despite ongoing pressures on its revenue streams. As it continues to navigate a complex and evolving economic landscape, the University remains committed to identifying and pursuing new funding opportunities to complement state support. Executive leadership remains steadfast in its dedication to delivering high-quality academic programs and services to students and stakeholders, while prioritizing long-term financial sustainability. The administration is confident in Kentucky State University's capacity to preserve its financial health and further enhance its standing as a distinguished regional institution of excellence.

Contacting the University's Financial Management

This report provides stakeholders with an overview of Kentucky State University's financial position and operational results for the fiscal year ending June 30, 2023. For questions or to request additional financial information, please contact Melissa Hicks, Interim Vice President for Finance & Administration and Chief Financial Officer, at Kentucky State University, 400 East Main Street, ASB Suite 201, Frankfort, KY 40601.

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