Important update on state budget and UK Campus Message

Campus Community,

As the General Assembly concluded its work late last night, I want to share an update following an intense and consequential final day of the state legislative session.

I am very grateful to legislators, who ultimately restored nearly all the proposed reductions to our operating budget.

As a result, general operating funds for the University of Kentucky — and for our sister higher education institutions — will continue at current levels over the next two years. This outcome is significant and welcomed, as we had been facing substantial reductions that would have posed real challenges to our mission and momentum.

While some state funds originally anticipated for capital projects, including a planned research building, were removed from the final budget, the legislature provided increased flexibility through agency bonds for several projects including the Fine Arts District, funded by a substantial gift from The Bill Gatton Foundation. That means we have the capacity to use dollars we generate for the facilities needed to support our teaching, research, health and service missions.

In addition, the university will receive approximately $30 million over the next two years for asset preservation, with no matching requirement.

These investments will allow us to continue the important work of renovating and revitalizing our campus core — efforts that have been central to renewing critical academic buildings and shared spaces across the university in recent years.

Policymakers understand what we do and how it makes a difference in advancing Kentucky. As they weighed and grappled with tough issues and competing interests, they were open-minded and open-hearted about investing in us and what we do to advance this state.

Three other notes of interest and developments in public policy that I want to share:

• First, legislation was enacted on the final day of the session to encourage the continued growth of the university as part of the state’s strategy to address physician and health care workforce shortages. This creates a potentially meaningful pathway for us to educate and train more physicians and health professionals, especially in the regions of the Commonwealth where they are needed most. We will work now with a team on our campus to develop a more robust plan for what this new pathway could look like in the coming years with support from the state.

• Second, legislators overrode a veto from the governor to enact what was characterized as a tenure bill. In short, the new law charges our Board of Trustees to build out in more detail the process for, and conditions in which, academic departments or units can be shut down under extreme financial conditions. The provost will work with faculty leaders to define that process in more detail for the Board’s consideration.

• Third, legislation with very open, permissive language was adopted that permits UK to establish a civic center on our campus, devoted to increasing awareness of local, state and federal governments as well as increasing positive and bipartisan civic dialogue. The language in this legislation is very broad in terms of giving UK flexibility in establishing this center and its academic content and curriculum. We will begin campus conversations about this possible initiative in the coming months, respecting the process we have regarding such matters.

I am grateful to the many faculty, staff, students, alumni, and partners who helped make our case throughout this session. What you do makes a profound difference for Kentucky and policymakers who know that and want to find ways to invest in that mission.

Thank you for all you do in support of our mission to advance this state every day, in so many ways.

Sincerely,

Eli Capilouto
President