University prepares for revenue shortfall

By Austin Schmitt

UK’s budget shortfall will be made up through funds held by President Lee Todd, as well as the Provost and the executive vice president.

The central accounts UK will take money from include the budgets of President Lee Todd, Provost Kumble Subbaswamy and Executive Vice President for Finance and Administration Frank Butler.

A recent cutback order by Gov. Steve Beshear to cut UK’s state appropriations by $6.3 million is the reason for the cuts.

Angie Martin, UK’s vice president for budget, planning and policy, said when an expected revenue source comes in less than expected, they have two options — allocate funds centrally or hand it off to the different colleges.

The $6.3 million dollar budget shortfall will be made up through a combination of funds.  Since the tuition revenues came in over budget due to high enrollment numbers in the 2008-09 school year, $1 million of that money will go toward the shortfall.

The   $2.2 million budgeted in the president’s contingency fund will be shifted toward filling the gap. The president also has some recurring and non-recurring funds that are for the operation of new projects on campus, Martin said.

UK budgeted $2 million for operating activities for a new comprehensive data center at the Coldstream Research Park.  That money will now be allocated to make up the budget shortfall.

The last million dollars will be accounted for through small pockets of money within the president’s budget, Martin said.

With Beshear cutting UK’s budget three months before the end of the fiscal year, it puts UK in a difficult position as to where they can allocate cuts, Martin said.

In addition to using centralized money, UK will freeze faculty, staff and student parking rates and cover health benefit premium increases for faculty and staff.

UK spokesman Jimmy Stanton said no pay cuts for Todd, Subbaswamy or Butler are being discussed at this time.