LEGISLATIVE UPDATE
Representative Nancy Tate
Postsecondary education continues to be a hot topic

Members of the House Budget Review Subcommittee on Postsecondary Education met Thursday of last week to continue conversations with the state’s postsecondary education institutions. The subcommittee has already heard from the University of Kentucky and this week listened to presentations from the University of Louisville and Northern Kentucky University.

University of Louisville Interim President Lori Stewart Gonzalez briefed members on the university’s progress as a research institution, including its $1.3 billion economic impact of the institution and the $1.5 billion economic impact of its health system. Gonzalez also told members that the university has the lowest student debt upon graduation of all of Kentucky’s public universities.  She also shared areas that need state investment, confirming the importance of investments made in the House version of the state budget we passed as HB 1 HCS. Those areas include Bucks for Brains, a program created to drive research programs as well as asset preservation, which is essentially maintaining campus facilities. HB 1 HCS includes $30 million in funding over both fiscal years to pay for Bucks for Brains endowment matches at the University of Kentucky and University of Louisville.

Northern Kentucky University (NKU) also presented its need for asset maintenance and praised the House for including $350 million per year for it in HB 1 HCS. The allocation will be used to create asset preservation funds at each public postsecondary institution and Kentucky Community and Technical College System. Funds will be available to these institutions based on the square footage of facilities as established in the performance-based model.

School leaders also commended legislators for their financial support of the state’s performance-based funding model, funding for which increases by $50 million each year under the terms of HB 1 HCS. The model measures three outcome categories—student success, course completion, and campus operational support—for distributing the funds to these institutions. The performance based funding model is a key way to hold our schools accountable and ensure transparency with the increased resources, ultimately benefiting students and taxpayers alike.

In addition, HB 1 HCS also:

• Funds a new health care workforce initiative at $20 million in each year of the budget
• Fully funds a Workforce Participation Trust Fund at every KCTCS institution
• Provides an additional $42 million in each year for anticipated growth in the College Access Program (CAP), Kentucky Tuition Grant Program, and Work Ready Scholarship Program
• Funds the number one priority project at each public university and KCTCS school.
• Adds $6 million in General Fund dollars to fully fund the operations budget of the Kentucky Higher Education Assistance Authority and $2.8 million in General Fund dollars for building repairs.
• Fully funds the subsidy necessary to pay portion of retirement benefits owed under HB 8/2021RS

Why are we placing an emphasis on postsecondary education? The answer is simple: creating more educational opportunities for Kentuckians develops the state’s workforce, which in turn contributes to economic growth and a better quality of life.

As always, I can be reached here at home anytime, or through the toll-free message line in Frankfort at 1-800-372-7181. Feel free to contact me via email at Nancy.Tate@lrc.ky.gov. If you would like more information, please visit the LRC website https://nam12.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.legislature.ky.gov%2F&data=04%7C01%7C%7Cbde5d074cf57418ed69508d9f8b83824%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637814292365448465%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&sdata=NI7CjYWANdRXQ0b6lv1h2TOzgz%2BQ1B3gUnWbjccIIpk%3D&reserved=0.