FRANKFORT, Ky. — A new report recommends Kentucky State University ask the Kentucky General Assembly for $23 million.

What You Need To Know

  • A financial assessment by the Council on Postsecondary Education recommends Kentucky State University request $23 million from the Kentucky General Assembly

  • KSU will be out of cash by the end of next March​, according to the report

  • The report says KSU has a projected current year shortfall of up to $7 million

  • Lawmakers discussed the report's findings Tuesday​

Kentucky's only public historically Black university will be out of cash by the end of next March, according to the financial assessment by the Kentucky Council on Postsecondary Education.

The report shows the total for cash and cash equivalents was at nearly $20 million in 2016, but by 2020, it had dropped to about $2 million because of “operating deficits totaling $35 million.” 

KSU has a projected current year shortfall of up to $7 million, according to the assessment.

KSU President Dr. M. Christopher Brown II resigned in July.

That month, Gov. Andy Beshear directed CPE to assess KSU’s finances.

Leaders from KSU, who were brought on board in July, appeared before lawmakers Tuesday. 

"Some of the things that were done were done to improve student success," said KSU Chief Financial Officer Greg Rush. "The problem is they were done without an eye on the budget, without an eye on the resources available." 

A CPE presentation Tuesday said there was a "lack of sufficient budgetary controls" and a "failure to follow existing policies," but leaders said they have not found anything criminal.

"There’s been things in the press about credit card expenditures and those kind of things and those are serious issues we need to look at, but at this point, we’ve not, I have not seen anything that can’t be explained through just mismanagement and overspending," said Rush. 

KSU Acting President Clara Ross Stamps said students are "alarmed and very concerned." 

"As leaders of the institution, we must be held accountable for our actions, for our non-actions, our inactions," she said. "We don’t make excuses. We will get back to the basics."

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