UK planning fiscal budget in face of unexpected losses

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Haley Blackburn

UK is starting to craft a budget for the next fiscal year starting July 1, after the Kentucky General Assembly concluded with a budget plan for the state on Wednesday, April 15.

The state’s budget is a “continuation budget”, lasting for one year instead of the usual two.

In an email on April 17, President Capilouto said the school would be receiving approximately $260 million from the state budget, essentially the same amount as last year, but will be losing revenue from less certain enrollment numbers, millions less in revenue from the hospital system, and significantly less in revenue from investments.

The current pandemic and resulting economic issues have adjusted the assumptions usually used to create a budget, said Capilouto, and he acknowledged that the economic picture would look different in two or even six months.

“We will face painful choices and tough decisions. In the midst of so much uncertainty, we know already that we will start 2020-2021 with tens of millions less in revenue than we had last year,” Capilouto said. 

Capilouto said the budget is “without question, the most challenging budget I’ve been part of in more than 40 years in higher education” and that more communication about the process would be forthcoming.