Finance and Administration Academic Services #202 | 400 East Main Street Frankfort, KY 40601 | (502) 597-6343 KYSU.EDU

April 12, 2022

Dr. Aaron Thompson President Kentucky Council on Postsecondary Education 100 Airport Road Frankfort, KY 40601

Re: Request for Disbursement

Dear Dr. Thompson:

I am submitting this request to the Kentucky Council on Postsecondary Education (CPE) to disburse $17.5 million to Kentucky State University (University) to carry the University through the months of April, May, and half of June 2022. As justification for this request, I would provide the following information on behalf of the University:

In the Fall of 2021, CPE conducted a financial review of the University. As a result of that review, CPE recommended in a November 2021 report that the University “request $23 million from the General Assembly to cover the fiscal year 2021-22 projected cash shortfall plus $1 million annually in the 2022-24 biennium for strategic initiatives.” (A copy of that report is attached.) In accordance with recommendation contained in that report, the University made this request to the General Assembly and the General Assembly responded with House Bill 250 (the bill).

On April 8, 2022, the Governor signed HB 250 into law stating in pertinent part:

There is hereby appropriated to the Council on Postsecondary Education General Fund moneys in the amount of $23,000,000 in fiscal year 2021-2022 to address financial instability at Kentucky State University, including a cash shortfall due to prior year deficits and a projected financial structural imbalance in fiscal year 2021-2022. Prior to receiving any disbursement of the funds from the council, the university shall submit a request with supporting documentation required by the council for the council's review and approval and make recommendations for further investigations necessary, if any conduct has risen to the level of a crime.

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