The presidents of Kentucky’s public universities agreed to accept budget cuts of 4.5 percent over each of the next two years in an attempt to break the current state budget impasse.
In a letter to Gov. Matt Bevin, House Speaker Greg Stumbo and Senate President Robert Stivers, the presidents said they would accept the cuts with the expectation that state funding for higher education would increase in the next biennium. The letter also said they would accept a 2 percent cut in the current fiscal year should it be upheld in court.
The letter, signed by all eight of the public university presidents, said the compromise was preferable to ending the current legislative session with no budget agreement.
“We cannot imagine the circumstance of no budget,” the letter said. “Therefore, we are prepared to manage reductions in accord with the Governor’s final offer of 2 percent in the current year if it is determined by the courts to be permissible, and a 4.5 percent reduction from the 2015-2016 enacted base in each year of the new biennium.
“We make this difficult decision based on our trust that you have committed to making new investments in higher education in the following biennium, investments that will enhance our state’s economy, and the health and well-being of Kentuckians. Furthermore, we recognize Kentucky State’s unique mission and the need to be addressed separately.”
Bevin had proposed across the board cuts, with some exceptions, in state government in order to fund the state’s troubled pension funds. The House had provided funding for the pensions, but maintained that cuts in higher education were not necessary since the state was not facing a budget shortfall.
The Senate maintained Bevin’s higher education cuts, cut offered a compromise of 4.5 percent over each of the next two years.
“We are hopeful that you can work together to resolve these differences, and reach an agreement, which attempts to address the myriad of needs experienced by our citizens,” the letter continued, “and we trust you will continue to support our institutions and their vital role in meeting many of those needs, from job training, to career preparation, and from leading edge research to the direct provision of healthcare.”
Prior to the release of the letter Friday, House leaders had proposed a 2 percent cut in higher education in each of the next two years.
“We have worked hard at finding a middle ground since budget talks first began, and we have not gotten much back in return,” House leaders said in a joint statement. “However, our university presidents have been put in a position that is unfair and unwise. We still think that postsecondary education should not be cut, but if it is, our plan is the one that should be followed.”
Under the plan, postsecondary education would be cut by 2 percent during the first year of the biennium, and the funding would be maintained in the second year. All proposed cuts to K-12 education would be fully restored.
The House plan also calls for funding the “Work Ready” scholarship program that would help cover the cost of tuition for students who attend a postsecondary school that offers associate degrees, starting this fall.
“This proposal maintains the Kentucky House Democratic Caucus’s commitment to public education while attempting to move the budget process forward,” the House leaders said. “As for current-year cuts, those are being reviewed by the Attorney General, and we continue to believe the governor does not have the authority to take this step. We believe that matter should be left up to the courts.”
The legislative session is currently scheduled to end on April 12. In order to be able to vote on a budget proposal, an agreement would have to be reached sometime over the weekend. As of Friday, no meetings between legislative leaders had been scheduled.
The state constitution requires the General Assembly to conclude its work no later than April 15.
Bevin issued an order last week directing immediate cuts to colleges and universities of 4.5 percent for the current fiscal year. State attorney general Andy Beshear issued an opinion saying Bevin lacked the authority to reduce the budgets absent a finding of a shortfall in the current budget.
Beshear indicated Friday that he would sue the administration on Monday if it did not rescind the order. Stumbo and other House leaders indicated that Bevin’s action should be challenged in court whether or not a budget agreement was reached.
In no agreement is reached on the $21 billion budget before the Legislature adjourns, Bevin would have to call a special session sometime before July 15, when the new budget would take effect.
Staff report