Kentucky State University shows marked financial improvement in second year of management and improvement plan
Kentucky State University officials recently provided the institution’s second update on House Bill 303 (HB 303) management and improvement plan.
The 2016 session of the General Assembly enacted HB 303, requiring the University to coordinate with the Council on Postsecondary Education (CPE) to pursue measurable goals and metrics demonstrating continued progress.
“Since my arrival as eighteenth president, the campus management team has been steadfast and focused on the implementation of policies, procedures and partnerships that demonstrate our core principles of excellence, transparency, accountability, and student-centeredness in our daily work and collaborative efforts,” Kentucky State University President M. Christopher Brown II said in the overview of the update.
The shift in management culture has allowed the University to enjoy a timely turnabout in fiscal decline, he said.
President Brown noted the University fulfilled responsibilities with no fund balance usage by completing implementation of an enterprise resource planning system, completing the renovation of the main research facility on campus and paid balances to federal agencies.
“This is a major accomplishment in the face of ‘necessary governmental expenditures,’ rising pension costs and visible campus beautification projects,” President Brown noted in the overview.
President Brown said with a stable enrollment, increasing revenues and judicious expenditures, Kentucky State University has a primary reserve ratio, viability ratio, return on net assets ratio, net operating revenues ratio and composite financial index that exceed the required targets for demonstrated improvement pursuant to the approved management and improvement plan.
“This update provides evidence of Kentucky State University’s areas of improvement, recent successes and overall opportunity going forward,” President Brown said.
President Brown said Kentucky State improved its financial position by implementing cost containment strategies including staff reductions, elimination of vacant positions, reorganization of administrative and academic functions, elimination or renegotiation of contracts and the discontinuance of academic programs with the elimination of related faculty.
“These actions, while difficult, have positioned the campus to function within its current revenue stream” President Brown said.
Click here to read the full management and improvement plan.