POLICY TITLE: FINANCIAL EXIGENCY
SECTION/NUMBER: TDB
APPROVED BY: BOARD OF REGENTS [DATE TDB]
EFFECTIVE DATE: TDB
REVISED FROM: JANUARY 23, 2015 FINANCIAL EXIGENCY POLICY
On or about April 8, 2022, upon signatory execution by Governor Andy Beshear, House Bill 250 (hereinafter “HB250”), was formally approved to maintain Kentucky State University’s financial solvency and to ensure its future viability.
As part of the legislation, Section 1.(1) of HB250 declares, in part, as follows:
Section 1. (1) The General Assembly hereby finds a significant lack of efficiency and effectiveness in the instructional and operational performance of Kentucky State University and determines that immediate appropriate corrective action is warranted as follows:
Whereas Kentucky State University does not have sufficient resources or reserves to continue operating as currently structured, the General Assembly declares that a state of financial exigency exists at Kentucky State University from the effective date of this Act until June 30, 2023. Notwithstanding any existing Kentucky State University policies relating to financial exigency, the Kentucky State University board of regents shall execute a new financial exigency policy by May 15, 2022, that will expedite the restructuring of university operations. The board of regents shall provide a copy of the new exigency policy to the Council on Postsecondary Education and the director of the Legislative Research Commission by June 1, 2022;
In accordance with KRS 164.350 and 164.365, the Kentucky State University board of regents has the authority to terminate employment of any university employee, including tenured employees, upon 30 days' notice in accordance with the university's personnel policies and subject to the recommendation of the president or acting president, or in the case of the termination of the president or acting president, the recommendation of the Council on Postsecondary Education...
In accordance with the legislature’s enacted legislation, Kentucky State University (hereinafter “KSU”), in establishing this policy, aims to fulfill the directives and intent of HB250 and utilize due diligence to manage effectively and efficiently the declaration of financial exigency and to remediate the legislative finding of lack instructional and