Council on Postsecondary Education
Council on Postsecondary Education adopts 2012-14 budget recommendation with new performance funding
The Council on Postsecondary Education adopted a two-year budget recommendation for the state’s eight universities and the Kentucky Community and Technical College System at its meeting last week at Morehead State University.
The recommendation, which includes both institutional operating and capital needs, represents an increase of 6.5 percent (nearly $65 million) in the first year of the biennium and 2.8 percent (nearly $30.2 million) in the second year. The total two-year budget request is $2.4 billion.
The recommendation builds upon the gains in educational attainment over the past decade, and adds new elements such as performance funding to encourage improvement and a multi-year capital plan to address the upkeep of current facilities.
The budget also reflects the priorities of the state’s strategic agenda for postsecondary and adult education, as well as legislative mandates to increase educational attainment, improve college and career readiness, and enhance research and economic development through the work of the state’s colleges and universities.
A recent study conducted by the National Center for Higher Education Management Systems found that Kentucky has made more progress in getting more of its citizens more highly educated with associate and bachelor’s degrees than any state in the nation over the past decade, and as a result, Kentucky is creating a better educated and better trained workforce.
“As the economy begins to improve, Kentucky will be better positioned to grow stronger, and at a faster pace because of these gains in creating a more highly skilled workforce,” said Council President Bob King. “This budget recommendation is an investment in our state’s future as it seeks the resources our campuses need to support the needs of their students. It also keeps us on track to meet legislative mandates and adds an important new performance funding element.”
The budget recommendation is a culmination of nearly a year of review and discussion with the Council’s budget development workgroup, campus presidents, chief budget and academic officers and Council staff. Campus presidents endorsed the recommendation earlier last week.
Highlights of the budget include:
- Senate Bill 1 (2009) implementation funding (nearly $17.2 million in Year 1 and recurring in Year 2) to significantly increase the preparation of students for college and career with improvements in new teacher preparation programs, professional development of college faculty and K-12 educators, and improving developmental education.
- performance funding ($25 million in Year 2) tied to institutional gains in credentials produced, graduate rate improvement, closing achievement gaps, and increasing transfers between two- and four-year institutions.
- additional funding ($75 million over Years 1 and 2) for the nationally recognized Bucks for Brains endowment match program. This fifth round of funding will further refine the University of Kentucky’s and the University of Louisville’s capacity to attract top research faculty and to convert research to commercial applications that can lead to creation of new companies and new high-paying jobs for Kentuckians. Funds allocated to the comprehensive universities will strengthen key programs. From 1997 to 2010 (UK and UofL combined), the market value of endowments grew from $447 million to $1.4 billion, the number of endowed chairs/professors increased from 102 to 534, and the level of extramural R&D expenditures increased from $105 to $365 million.
- restoration of the state’s historic role in financing maintenance and operation expenses related to newly constructed state owned buildings (nearly $38.3 million in Year 1 and $40.1 million in Year 2.)
The budget recommendation also includes a multi-biennial capital plan ($1 billion in 2012-14, $1 billion in 2014-16, and $1 billion in 2016-18) tied to the state’s six-year capital planning process. The recommendation calls for investing more heavily in asset preservation and renovation of the state’s aging facilities (55 percent) balanced with the need for new and expanded education and research space across the system (45 percent). The multi-year recommendation addresses 38 percent of the projected need identified in a 2007 facilities study conducted by VFA, Inc., of Boston.
In other business, the Council:
- Heard performance presentations from Morehead State University, Kentucky Community and Technical College System and Kentucky Adult Education.
- Approved a regulation that establishes the criteria and conditions for the approval of advanced practice doctorates at the comprehensive universities. These doctorates are designed to meet workforce and applied research needs of a profession.
- Approved three new academic programs including an M.A. in sport management at Morehead State University, an M.A. in library media education at Murray State University, and an M.M. in music therapy at the University of Kentucky.
- Approved Eastern Kentucky University’s 2011-15 institutional diversity plan.
- Did not approve a recommendation from the Council’s Committee on Equal Opportunities to delay the assessment of annual progress by institutions on equal opportunity goals until 2013.
- Heard results from a review of doctorates in educational leadership at three comprehensives, Eastern Kentucky University, Northern Kentucky University and Western Kentucky University, which found the programs are on track of meeting goals.
- Discussed the 2012-13 tuition-setting process and reviewed a timeline that calls for Council action on tuition at the June 2012 meeting.
- Heard a 2011 Kentucky’s Bucks for Brains program summary report.
- Received a report from Education Commissioner Terry Holliday.
- Approved the formation of four workgroups to help monitor and guide implementation of the 2011-15 strategic agenda for postsecondary and adult education.
Before adjourning, Council Chair Paul Patton appointed Glenn Denton to chair a nominating committee and appointed members Lisa Osborne and Marcia Ridings to the committee to present nominations for Council chair and vice chair at the February 2012 meeting. Patton also reappointed Hilma Prather to the KET Board.
The Council’s next meeting will be February 9-10, 2012.
Council meeting materials are available at http://cpe.ky.gov/about/cpe/meetings/.
We believe in the transformative power of postsecondary education. Stronger by Degrees, the new strategic agenda for Kentucky’s colleges and universities and adult basic education, is powering a stronger Kentucky economy and improving the lives of Kentuckians. To learn more about Stronger by Degrees, visit http://cpe.ky.gov/strongerbydegrees. Follow us on Twitter http://twitter.com/#!/CPENews.