Update on the state budget process Campus Message

Campus Community,

I want to provide to you an update on the state budget process and what it could mean for our university.

As Kentucky’s university, we are called to advance this state in everything we do. That is an enduring promise we have upheld for more than 160 years, and it is why we were created — to serve Kentucky and her people. And the commitments we make to our students, faculty, staff and communities depend on the strength of our people and the resources that support them.

As I shared with you earlier this year the biennial budget introduced for Fiscal Years (FY) 2027 and 2028 was leaner than we expected. In response, I testified to the House Budget Sub-Committee on Higher Education, which you can watch here, and spent several days in Frankfort with leaders and appropriators of the House of Representatives to share your story.

Last week, the House of Representatives passed its version of the budget, which now moves to the state Senate for debate. We are reviewing the budget bill that was passed, but the following is clear — as it currently stands, all of Kentucky higher education is receiving a cut in the budget. The University of Kentucky specifically is proposed to take a reduction of 4% for fiscal year (FY) 26-27 and another 3% in FY 27-28 in the general fund appropriation (state dollars that support us).

Our budget is made up of a wide diversity of funding sources. However, these funds are the critical first dollars into our budget. But to be clear, these numbers are not final, and no decisions have been made.

We know state leaders are working to balance many needs across the Commonwealth, and we appreciate their thoughtful stewardship. There are two months left in the legislative session and many more steps remaining the process. Still, we want our community to know about these issues as we learn them to understand what such reductions would mean if they were enacted.

A proposed cut, even over two years, may directly affect our ability to provide the same level of support, education, research and other essential opportunities that are critical to the success of our students and the Commonwealth. Operating dollars help fund institutional financial aid, academic programs, advising and student services, and help support the salaries and benefits of the faculty and staff who uphold our sacred promise to our namesake.

We share this information because it is important for our community to understand the context in which we operate and the challenges we must be ready to meet.

We know our state continues to face urgent challenges: rural health access, a tight labor market, demographic shifts and the need to retain more graduates here at home. But at the same time, we are heartened by what you make possible every single day.

This debate around our budget will carry on. And, as always, our advocacy on your behalf will continue in the Senate — that is our responsibility and our promise to you. We will work closely with state leaders and remain committed to being responsible, transparent and accountable stewards of the support we receive.

As this process continues over the coming months, we will keep you informed and engaged.

Thank you for the critical work you do every day to strengthen this university and Commonwealth. In moments of uncertainty, it is your dedication that enables us to honor our promise, today and for generations to come. And, as always, we will meet whatever comes next, together.

Sincerely, 

Eli Capilouto
President