LEXINGTON, Ky. — While COVID-19 strains budgets across the state, University of Kentucky President Eli Capilouto announced the school's budget for next year will not include reductions in force, and fewer employees are being placed on administrative no-pay status than first estimated. 

What You Need To Know


  • UK's budget for the 2020-2021 school year will not include reductions of force

  • There are fewer employees being placed on administrative no-pay status than estimated

  • The Board of Trustees will consider the budget in June

  • UK made several other budget announcements

In a move that will save roughly 100 jobs, Capilouto is directing a portion of UK's "contingency fund," meant to help deal with crises, to the upcoming year's budget. The budget will be under consideration by UK's Board of Trustees at its June meeting.

“Given the state of our economy in Fayette County and in the Commonwealth — and our desire to protect our greatest asset, our people — we believe it is time to use some of those contingency funds,” Capilouto said.

In the coming year, UK is faced with a more than $70 million shortfall. To address unanticipated issues and emergencies, the university planned reductions to create a contingency fund over $11 million. Money for the fund comes from the decision to reduce the employer match to retirement funds from 10 percent to 5 percent for one year. 

UK also announced other budget measures:

  • The university moved fewer than 100 positions to administrative no-pay status in addition to the 200 employees placed on that status in April. 
  • Many of the UK HealthCare employees in clinical areas moved to administrative no-pay status have returned to work as more patients have sought care. Those who remain on administrative no-pay status may elect to use accrued vacation, holiday or bonus leave and the university will pay health premiums for a time.
  • After those benefits are exhausted, employees can apply for unemployment. UK will pay both the employer and employee portion of health benefits premiums for up to 90 days or until the employee returns to work. Sick and vacation time will also accrue for up to 90 days.
  • No current graduate students will lose assistantship positions because of budget reductions, and those working on sponsored research projects will not see a reduction in tuition and stipend support for the external funding's duration.
  • The Offices of the Provost and Vice President for Research will target $250,000 to the Student Emergency Fund for graduate student needs, and staff in the Financial Wellness Office will be increased to address the needs of graduate students.

“These measures help protect our people, who are so critical to our mission of putting our students and their success first, while conducting research and providing care essential to the future of Kentucky,” Capilouto said. “But these measures also are vitally important for our hometown, Lexington and Fayette County.”

UK comprises approximately 14% of the employee base in Fayette County and approximately 18% of the county’s payroll, which serves as the source for most of the funding for essential government services and public safety.

The university plans to welcome students back to campus in the fall semester