operational effectiveness to ensure the continued viability and mission of Kentucky's oldest historically Black institution.
A declaration of financial exigency is defined as a significant decline in the financial resources of an institution that fundamentally compromises the academic integrity of the institution as a whole, that cannot be alleviated by less drastic means than the termination of staff and faculty, including tenured faculty appointments, and that affects the university as a whole and threatens its ability to carry out its fundamental educational mission. The gravity of such a declaration requires deliberate and thorough consideration of all retrenchment measures. Therefore, in accordance with its legislative directive and to ensure the continued viability of the University, KSU has created this policy to ensure the utilization of due diligence in prioritizing the educational needs of the University and the students in which it serves.
Pursuant to HB250 and Section 164.350 of the Kentucky Revised Statute (hereinafter, "KRS"), the Kentucky State University Board of Regents (hereinafter "Board") has been granted authority by the Commonwealth of Kentucky over the University's budgetary and personnel matters in the assurance and maintenance of a quality educational program within the available financial resources. Accordingly, upon approval by the Board, employment of employees, including those who are tenured, may be terminated or compensation reduced pursuant to the declaration of financial exigency and in accordance with the institutional procedures set out below.
The University’s primary mission as a public, comprehensive, historically black land-grant institution is to “...[impact] individuals by providing quality teaching...and public service to enable productive lives within the diverse global economy.” Because the University receives public support and student fees for performing this primary activity, the overarching principle that guides the University in times of financial exigency through the application of this policy is that the University shall significantly reduce or eliminate expenditures that do not directly contribute to the development of educated persons.
Upon Board approval of the Financial Exigency Policy, the President shall create a Financial Exigency Committee, which may consist of his/her Council members and/or other direct appointments (“Committee”). The Committee shall develop a Financial Exigency Plan (“Plan”) that includes, at the minimum:
A. The identification of areas/personnel to be affected by the proposed plan – the affected area(s) may encompass all the operations of the University or may be limited to specific divisions, departments, programs, and personnel.