Investing in You: A Budget That Puts Our People First

Campus Community,

A core principle in our institution’s strategic plan is “taking care of our people.” At the University of Kentucky, we define our people broadly — those we teach and mentor, those we heal and those we serve through discovery and through community outreach across our state.

But at its core, “our people” also refers to you, those who do the work to advance this state. As we finalize a proposed university budget for the 2025-2026 academic year that will be presented to the Board of Trustees in June, I want to outline three key initiatives — representing more than $80 million in additional investment in compensation and benefits — that are central to our continued efforts to take care of our people:

1. A 1.5% across-the-board compensation increase for UK and UK HealthCare employees, with a minimum raise of $750.
   • The proposed budget will include a 1.5% increase in compensation for all eligible UK and UKHC employees, with a minimum raise of $750.
   • If approved, this will mark the 12th time in the last 13 years the university has proposed compensation increases for our community — an unprecedented series of investments in the people who do so much to advance our state.

• The raises would take effect July 1 for UK employees and in October for UK HealthCare employees, the standard cycle for raises.
• To be eligible, employees must be in good standing in terms of performance reviews.
• UK HealthCare staff on the Nursing Step Scale who are eligible will receive either the designated step increase or a 1.5% salary adjustment — whichever amount is greater.
• This increase does not apply to clinical faculty and medical residents as they are under a different compensation structure.

2. Expanded Parental Leave and Elder Care Leave

• The university is proposing an expansion of our parental leave and elder care leave — from two weeks to four weeks for parental leave and from one week to two weeks for elder care leave. The expansion would take effect on July 1.
  • The leadership of the Staff Senate has been pivotal on this issue. These staff leaders have consistently provided thoughtful feedback and engaged in important dialogue around the issues that matter most.

3. Two Additional Paid Holidays
   • During the academic year, UK will observe two extra paid holidays on Dec. 24, 2025, and Jan. 2, 2026.
   • Those extra days are in addition to the week the institution is traditionally closed between semesters.
   • UK HealthCare employees will also receive two additional days off, though timing may vary to ensure continuity of patient care.
   • The hospitals and ambulatory clinics, for example, must remain open — even during holidays — to care for patients.
   • Managers and supervisors will work with team members to coordinate time off accordingly.

Please note that employees of Beyond Blue — the holding company for our community hospitals in Morehead and Ashland — have different compensation and benefits plans, and these changes are not applicable.

We know that our institution — like others in higher education — is facing increased scrutiny of what we do and how we do it. And that has meant more stress and pressure for so many of you, who do so much to make our mission of advancing Kentucky real and relevant.

This proposed budget for 2025-2026 will reflect those realities. It will be among the most complex budgets we have developed in my 14 years with you at UK. 

For example, with respect to health care, we will offer coverage plans with low monthly premiums, lower out-of-pocket costs and more choices in terms of providers. 

Yet, we also know that the more robust plans will cost more this year. The costs of care have continued to increase significantly for a number of reasons and are beyond what we can fully cover as an employer.

And, of course, the continued uncertainty in Washington considerably increases the challenge of developing a budget. There are simply more unknowns than knowns — questions remain around funding for research as well as Medicaid, which is so important to ensuring access to the care only we provide. 

We have exceedingly capable and committed people working to understand all these issues, to tell our story in compelling ways and to plan for the future. 

We will make decisions based on the best available information we have today, knowing that conditions will continue to evolve and change. Please watch this video message and visit this webpage for more information about this budget proposal.

We will keep you informed. 

And we will always ensure that you — the people who do the work to make Kentucky healthier, wealthier and wiser — are at the heart of every decision we make. 

This budget will reflect the fact that taking care of you is how we take care of Kentucky.

Eli Capilouto

President