Senate Republicans reversed House cuts to higher education and slightly increased funding for Kentucky’s public universities and colleges in their version of the state budget proposal, but some lawmakers still have questions about universities’ spending habits.
The change is part of budget bills that came out of the Senate Appropriations and Revenue committee Wednesday morning and passed unanimously out of the Republican-controlled chamber later that afternoon.
The Kentucky Council on Postsecondary Education, which oversees the state’s eight public universities and the Kentucky Community and Technical College System (KCTCS), previously told the Kentucky Lantern that the House budget made operating reductions of $42 million for the 2026-27 fiscal year, or 4%, and $73.5 million in fiscal year 2027-28, or 7%.
The A&R committee chair, Sen. Chris McDaniel, R-Ryland Heights, told reporters that the Senate version restores higher education funding, but questions remain about the universities’ transparency on spending dollars wisely, particularly at Kentucky State University, the state’s only public historically Black university.
“I think that they all need to have some more transparency in it,” McDaniel said of the higher education institutions. “But I think that at KSU, there are a lot of audits that really identify the finances of KSU as their single biggest weakness, and we continue to need to dig deeper into that university.”
McDaniel said during the committee meeting that the Senate budget proposes funding postsecondary institutions generally at their current levels plus an additional 1% per fiscal year over the next biennium. The Senate budget also would increase performance-based funding in fiscal year 2027-28 by $15 million, he added.
In a floor speech Tuesday, McDaniel called on Republicans Attorney General Russell Coleman and Auditor Alison Ball to investigate two contracts entered into by a previous KSU administration — a $16.3 million energy savings contract that included replacing a dirt football field with artificial turf and a 35-year ground lease to a developer, KSU Campus Housing LLC, for a dorm. McDaniel said the dorm lease requires KSU to pay $41 million in interest
McDaniel said Coleman and Ball should review both contracts, including “into the principals involved in the firms behind them, and whether or not there was anything that was potentially improper.”
“I think if we’re going to give Kentucky State a chance, we have to help them,” he added. “We have to help them help themselves, and sometimes that involves an ability that is beyond their own.”
McDaniel emphasized on the Senate floor that he sees “a man who is performing admirably under some of the worst circumstances possible” in KSU’s current president, Koffi C. Akakpo, who began leading the institution in 2023.
Michael Strysick, a spokesperson for KSU, said the university supports the call for an inquiry.
“As stewards of taxpayer dollars, the University welcomes any review that can help strengthen accountability, streamline services, and better serve students and taxpayers,” he said. “These agreements were executed before the tenure of President Koffi C. Akakpo, and Kentucky State University will cooperate fully with any review or investigation by the appropriate authorities.”
Ball said in a statement to the Lantern that KSU “is our only publicly funded historically black college, and we must do everything we can to ensure that the students there are put in the best position to succeed.”
“Dr. Akakpo has stated that he is on a mission to stop wasteful spending at KSU for the benefit of its students, faculty, and all University staff. We’re happy to do whatever we can to help him in achieving that goal,” Ball continued.
Lauren Adams, a spokesperson for Coleman’s office said it is reviewing the concerns raised by McDaniel.
Republican Senate President Robert Stivers told reporters before the A&R committee that “we’ve been raising questions about KSU spending for years,” saying that the university doesn’t have “a good graduation rate” and financial issues.
A 2023 audit from then-Republican State Auditor Mike Harmon’s office found millions of dollars in undocumented credit card and federal grant expenditures at Kentucky State University from 2018 to 2021.
That audit was prompted by 2022 legislation from the General Assembly. Also that year, lawmakers passed another bill that appropriated funding to the university based on meeting certain goals and created more oversight for the institution.
CPE’s response
After House Republicans unveiled their cuts to higher education, the Kentucky Council on Postsecondary Education, which oversees the state’s eight public universities and the Kentucky Community and Technical College System (KCTCS) called on lawmakers to restore funding.
CPE President Aaron Thompson previously said in a statement to the Kentucky Lantern that the proposed House cuts to higher education in the commonwealth came at “a time when enrollment is stabilizing, workforce demands are increasing, and campus costs continue to rise,” and could lead to institutions making “difficult decisions that could impact student services and operations.”
Wednesday afternoon, Thompson said in an updated statement that CPE appreciates “the continued progress on the state budget and (is) encouraged by the Senate’s approach to supporting postsecondary education.”
“The current proposal reflects the legislature’s interest in maintaining stability for Kentucky’s public colleges and universities and building on recent momentum,” he added. “As the process moves forward, we remain focused on opportunities to further strengthen statewide efforts that support students and meet Kentucky’s workforce needs. We look forward to continuing to work with policymakers in both chambers to finalize a budget that continues this positive direction.”