State funding for Kentucky universities restored under final budget bill
Funding for Kentucky public universities will not see the cuts anticipated under the state budget approved last week.
The initial executive branch budget bill delivered to Gov. Andy Beshear would have cut 1.9% in general funds for universities and the Kentucky Community and Technical College System in the fiscal year 2026-27, and 3.7% in 2027-28. House Bill 500, after line item vetoes from Gov. Andy Beshear and passage by both the House and Senate, restores most of that funding, maintaining state support for public colleges.
While universities do not rely entirely on state funding for their budgets — other revenue comes from tuition and fees, and federal funding — these cuts would have resulted in millions lost for university budgets across the state.
Kentucky State University, Morehead State University and Murray State University were exempt from the initial university general fund cuts.
Universities across the state were bracing for cuts prior to the revised bill’s passage.
The University of Kentucky was anticipating cuts of $6 million in the first year of the budget, and $11 million in the following year, President Eli Capilouto said earlier this month.
The University of Louisville was likewise anticipating $2.6 million in cuts in the first year and $5 million the following year, President Gerry Bradley said. Bradley said cuts “of this magnitude directly hampers our ability to advance the University of Louisville’s mission.”
However, nearly all proposed reductions in the operating budgets were restored, Capilouto said in a statement last week.
“I am very grateful to legislators, who ultimately restored nearly all the proposed reductions to our operating budget,” Capilouto said. “As a result, general operating funds for the University of Kentucky — and for our sister higher education institutions — will continue at current levels over the next two years. This outcome is significant and welcomed, as we had been facing substantial reductions that would have posed real challenges to our mission and momentum.”
While state dollars to universities’ general funds was restored, some funding for capital projects were cut, including plans for a research building at UK, Capilouto said.