FRANKFORT, Ky. (LEX 18) — A new legislative bill declares a state of financial exigency at Kentucky State University, mandating sweeping changes that include strict spending limits, academic program cuts, and new admission standards.
Senate Bill 185 places the university under a five-year financial exigency, or until the General Assembly declares the institution's finances are stable. During this period, KSU cannot make any expenditure of $20,000 or more without prior approval from the Council on Postsecondary Education. The university is also prohibited from incurring a budget deficit and must report its finances on a monthly basis.
Under the legislation, KSU will transition into a polytechnic institution focused on highly technical, industry-based applied learning. Beginning in the 2026-2027 academic year, the university will be limited to offering no more than 10 academic areas of study. Exceptions will be made for exclusively online programs, the college of education, and programs deemed necessary to the polytechnic mission by the Council on Postsecondary Education.
Covering Kentucky
KSU announces 5-year plan to transition into a leading polytechnic institution
To align with these changes, the university president is granted the authority to terminate any employee, including tenured faculty, with 30 days notice, according to documents. The bill directs the university to retain only the faculty and staff necessary to support the maintained programs and an enrollment target of at least 1,000 in-person students.
The legislation also establishes stricter admission and enrollment requirements. New applicants must have a minimum 2.5 high school grade point average and an 18 composite ACT score or equivalent, the bill read. Additionally, students with an outstanding balance of more than $1,000 for over 30 days will be barred from enrolling or continuing classes.
The university is directed to aggressively collect debts, which includes referring debts over $1,000 that are more than 60 days past due to the Department of Revenue. KSU will also intercept federal and state income tax refunds to satisfy debts exceeding $1,000, the bill detailed.
Other mandates in the legislation include voiding current public-private lease agreements and requiring all fraternities and sororities to reapply for official charter recognition by July 1, 2026.
Because the bill includes an emergency declaration, it will take effect immediately upon passage and approval by the governor.
