The Council on Postsecondary Education approved its 2018-20 biennial budget recommendation for the state’s colleges and universities. The request includes increases in performance funding and for special initiatives, and a fifth round of Bucks for Brains funding.
For institutional operating funds, key priorities are to jump-start the new performance funding system to accelerate degree production, graduation rates and improve the workforce, while a special initiatives request seeks reimbursement of projected increases in employer-paid pension costs.
The performance funding request calls for an overall two percent increase in operating funds, or $18.9 million, in the first year (2018-19), and $36.5 million, or 4.1 percent, in the second year (2019-20) for campus operations. These funds will support faculty and staff salaries, student financial aid, student support, utilities and building maintenance costs at the state’s public institutions.
“We fully understand the state’s fiscal constraints. At the same time, we were asked to let policy makers know what we thought the universities and KCTCS needed to continue to effectively serve our students. We believe that these strategic investments will grow and improve the quality of our workforce, which, in turn, will grow the state’s economy,” said Council President Bob King.
The recommendation also seeks $47.2 million each year of the biennium to offset campuses’ mandated increases of about 70 percent for KERS employer-paid contributions.
Absent this funding, the impact would result in a 9.7 percent budget cut, on average, for institutions with employees participating in KERS. It would also impact campuses differently because the number of employees participating in the retirement system varies at the campuses.
Another component of the special initiatives request is for the Kentucky Community and Technical College System to address labor shortages in critical industry sectors. This competitive workforce initiative request is $3.6 million in the first year and $5.9 million in the second year.
If funding is authorized, KCTCS will grow programming and student enrollment in four high-demand industry sectors: advanced manufacturing, construction/trades, health care, and transportation and logistics.
A third special initiative request is the Kentucky State University land grant match of $290,000 in each year of the biennium to meet the federal match requirement.
The operating fund base for public colleges and universities is currently $886.9 million.
In addition to operating funds, the Council’s budget request includes $8.2 million for annual debt service in 2019-20, recurring in subsequent years, for $90 million in state bonds to support a fifth round of funding for the Bucks for Brains program.
The program would double the state investment in postsecondary education research by requiring a dollar-for-dollar match of state funds with institutional funds from external sources.
Between 1998 and 2010, the General Assembly authorized four rounds of funding for the program, totaling $410 million. The campuses have used these funds to leverage an additional $410 million in private contributions.
Finally, the Council’s budget recommendation includes a capital investment request for the most pressing campus asset preservation and renovation needs of state-owned facilities. Unlike past years, the capital request is entirely focused on deferred maintenance and renovation projects to align building capabilities to student learning needs.
The Council welcomed new member Kristi Nelson of Union. She was administered the oath of office by Judge Kelly Mark Easton, chief administrative circuit judge of the Green River Region for Hardin Circuit Court, Division III.
