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kentucky Postsecondary Education Faces Budget Increase and Policy Shifts
Kentucky‘s public colleges and universities are preparing for a future shaped by increased funding and modernized policies, as the Council on Postsecondary education (CPE) recently approved a biennial budget request for fiscal years 2026-27 and 2027-28. The request outlines a plan for $1.15 billion in general fund appropriations for KCTCS and public university operations in 2025-26, increasing to $1.21 billion in 2026-27-a 7% and 12% increase respectively.
To address rising costs, the CPE is requesting $43 million in 2026-27, scaling to $87 million the following year, to offset inflationary pressures on campus operational expenses. Performance-based funding will also see a boost, with $30 million proposed for 2026-27 growing to $45 million in 2027-28.
Beyond funding, the CPE has approved a number of policy revisions. These include changes to the process for approving new academic programs at Kentucky Community and Technical College System (KCTCS) and public universities, new eligibility requirements, and processes for extensive universities to offer doctoral programs.
Further enhancing flexibility for institutions, the board also approved revisions to a Memorandum of Understanding with Morehead State University, allowing adjustments to nonresident tuition and fee charges to aid out-of-state student recruitment. A repealed administrative regulation, previously governing advanced practice doctoral degree programs, reflects changes established by Senate Bill 77.
The CPE also shared updates on key performance indicators (KPIs) for public postsecondary institutions. Western Kentucky University presented it’s performance on these KPIs to the board. Additional data is available on the CPE website, with upcoming meetings scheduled for November 6 and 7 at Brescia University in Owensboro.
How will performance-based funding metrics influence Kentucky universities’ priorities?
Table of Contents
- 1. How will performance-based funding metrics influence Kentucky universities’ priorities?
- 2. Kentucky General Assembly Budget Request Approved by CPE for Biennial Session
- 3. CPE Approval: What it Means for Kentucky Higher Education Funding
- 4. Key Components of the Approved Budget Request
- 5. Impact on Kentucky Universities and colleges
- 6. Understanding Performance Funding in Detail
- 7. CPE’s Role and oversight
- 8. Next Steps: The General Assembly’s Review
Kentucky General Assembly Budget Request Approved by CPE for Biennial Session
CPE Approval: What it Means for Kentucky Higher Education Funding
On September 14, 2025, the Council on Postsecondary Education (CPE) officially approved the Kentucky General Assembly’s budget request for the upcoming biennial session (2026-2028). This approval marks a critical step in securing funding for Kentucky’s public universities adn colleges, as well as various student financial aid programs.The approved request outlines the financial needs of the higher education system and will be presented to the General Assembly for consideration during the legislative session. Understanding this process and the details of the request is vital for students, faculty, and stakeholders across the Commonwealth.
Key Components of the Approved Budget Request
The budget request, now endorsed by the CPE, focuses on several key areas designed to enhance the quality and accessibility of higher education in Kentucky. Here’s a breakdown of the major components:
* Performance funding: A significant portion of the requested funding is tied to performance-based metrics. These metrics, established by the CPE, incentivize institutions to improve student success rates, graduation rates, and workforce alignment. This model emphasizes accountability and return on investment for state funding.
* Tuition and Fees: The request anticipates potential adjustments to tuition and fees at public institutions. While aiming to keep higher education affordable, the proposal acknowledges the need to address rising operational costs and maintain academic quality. Any tuition increases will likely be subject to CPE approval.
* Financial Aid: Increased funding for need-based financial aid programs,such as the Kentucky Educational Excellence Scholarship (KEES) and the College Access Program (CAP),is a priority. This aims to ensure that qualified students, irrespective of their financial background, have access to higher education opportunities.
* Workforce Progress: Recognizing the importance of a skilled workforce,the budget request includes funding for programs that align higher education curricula with the needs of Kentucky’s key industries. This includes support for STEM (Science, Technology, Engineering, and Mathematics) fields and workforce training initiatives.
* infrastructure Improvements: Funding is allocated for critical infrastructure upgrades and maintenance at public colleges and universities. this addresses aging facilities and ensures a safe and modern learning habitat.
Impact on Kentucky Universities and colleges
The CPE’s approval of the budget request sets the stage for negotiations with the Kentucky General Assembly. The outcome of these negotiations will directly impact the operations and future of Kentucky’s higher education institutions.
* University of Kentucky: As the flagship university, UK is expected to receive a ample portion of the funding, supporting its research initiatives, academic programs, and healthcare mission.
* University of Louisville: UofL will likely see increased funding for its urban research agenda, healthcare programs, and commitment to serving the louisville community.
* Kentucky State University: As a historically black university (HBCU), KSU is expected to receive targeted funding to support its unique mission and student population.
* Regional Universities: Institutions like Eastern Kentucky university, Western Kentucky University, Morehead State University, and Murray State university will benefit from funding allocated to regional workforce development and student access initiatives.
* Kentucky Community and Technical College System (KCTCS): KCTCS is crucial for workforce training and accessibility.The budget request includes funding to expand program offerings and support student success at KCTCS campuses statewide.
Understanding Performance Funding in Detail
Kentucky’s performance funding model is a key aspect of the budget request. here’s a closer look at how it effectively works:
- Metric Selection: The CPE establishes specific, measurable, achievable, relevant, and time-bound (SMART) metrics.
- Institutional Performance: each institution is evaluated based on its performance against these metrics.
- Funding Allocation: Funding is distributed based on performance. Institutions that exceed expectations receive additional funding, while those that fall short may receive less.
- Transparency and Accountability: Performance data is publicly available, promoting transparency and accountability within the higher education system.
Current performance metrics include:
* Graduation Rates: Percentage of students graduating within a specified timeframe.
* Retention Rates: Percentage of students returning for their second year.
* Credential Completion: Number of degrees and certificates awarded.
* Workforce Alignment: Percentage of graduates employed in Kentucky in fields related to their studies.
* Student Loan Debt: Average debt burden of graduates.
CPE’s Role and oversight
The Council on Postsecondary Education plays a vital role in overseeing Kentucky’s higher education system. its responsibilities include:
* budget Review: reviewing and approving budget requests from public institutions.
* Academic Program Approval: Approving new academic programs and ensuring quality standards.
* Policy Development: Developing policies related to higher education funding,access,and accountability.
* Data Collection and Analysis: Collecting and analyzing data on higher education performance.
* Strategic Planning: Developing a strategic plan for the future of higher education in Kentucky.
Next Steps: The General Assembly’s Review
with the CPE’s approval secured, the budget request now moves to the Kentucky General Assembly for review and consideration. The legislative process will involve:
* Committee Hearings: Legislative committees will hold hearings to review the budget request and gather input from stakeholders.
* Budget Negotiations: Members of the House and Senate
