CPE board approves higher education budget request for next legislative session

September 12, 2025

The Council on Postsecondary Education (CPE) board approved the public postsecondary biennial budget request for fiscal years 2026-27 and 2027-28, which includes requested increases in state funding to support general postsecondary operations. The request to the General Assembly includes:

• General Fund appropriations of $1.15 billion in 2025-26 and $1.21 billion in 2026-27 to support KCTCS and public university operations. This represents a 7% increase in the first year of the biennium and a 12% increase in the second.
• $43 million in 2026-27 and $87 million in 2027-28 to help offset inflationary pressures on campus operational costs, increases of 4.5% and 9%, respectively.
• $30 million in 2026-27 and $45 million in 2027-28 for the performance-based funding pool. This represents a 2.8% increase in the first year of the biennium and a 4.2% increase in the second, calculated on a $1.02 billion General Fund base.

The request also includes funding to support campus renovation and renewal projects, new capital construction, a new tuition waiver reimbursement trust fund and CPE agency operations.

Additionally, the board took the following actions:

• Approved revisions to CPE’s policy for approving new academic programs at KCTCS and public universities, including new eligibility requirements and processes for comprehensive (regional) universities to offer doctoral programs.
• Approved revisions to the Memorandum of Understanding (MOU) between CPE and Morehead State University, allowing more flexibility in nonresident tuition and fee charges in 2026-27 to assist in the recruitment of out-of-state students.
• Approved the repeal of the administrative regulation governing advanced practice doctoral degree programs at comprehensive universities (13 KAR 2:110), made obsolete by the passage of Senate Bill 77 (2025 Regular Session).

In other business, CPE staff provided an update on new key performance indicators (KPIs) for public postsecondary institutions. Additionally, Western Kentucky University discussed performance on KPIs during its annual presentation to the board.

Council meeting materials are available here. The board will hold its next work session on Nov. 6, followed by the regular board meeting on Nov. 7, at Brescia University in Owensboro.