KentuckySB 1852026 Regular SessionSenateWALLET

AN ACT relating to Kentucky State University and declaring an emergency.

Sponsored By: Christian McDaniel (Republican)

Signed by Governor

Actuarial AnalysisBudget And Financial AdministrationCourts

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 4 costs, 2 mixed.

Job cuts allowed during KSU emergency

During the financial emergency, KSU’s president may terminate any employee, including tenured faculty, with 30 days’ notice. KSU keeps only the staff needed to support at least 1,000 in‑person students and the programs it maintains. Employees in closed programs are terminated but may apply for other open jobs at KSU.

Overdue KSU debts block enrollment and refunds

If you owe KSU more than $1,000 and it is over 60 days past due, you cannot be admitted, readmitted, or continue classes. If you are on an approved payment plan, this block applies only if a payment is more than 60 days late. KSU must try to collect and must refer debts over $1,000 that are more than 90 days past due to the Kentucky Department of Revenue. The department must withhold state income tax refunds on KSU referrals, and state or federal refunds can be intercepted to pay debts over $1,000. KSU also sends quarterly reports of these overdue balances to the council, which gives an annual update to the Governor and the LRC.

Stricter KSU admissions and presidential control

New undergraduates must have at least a 2.5 unweighted high school GPA and an ACT of 18 (or a council‑approved equivalent). Transfers need at least 24 transferable credits and a 2.5 GPA. Veterans, qualifying nonpublic‑school grads, nontraditional students with experience, and dual‑credit students may get discretionary admission. During the financial emergency, the KSU president has sole discretion to admit, readmit, or enroll applicants who otherwise meet the university’s criteria.

KSU becomes polytechnic, trims programs

KSU is now a four-year residential polytechnic focused on technical, industry-based learning, while keeping liberal studies and its HBCU mission. By June 1, 2026, KSU’s board must propose which programs to keep or close and submit teach-out plans. The council reviews and may require changes, and any needed accreditor request must go to SACSCOC by July 1, 2026. KSU must close any program SACSCOC approves for closure and carry out the teach-out. Starting in 2026–2027 and for five academic years, KSU may offer no more than 10 academic areas, not counting online-only, college of education, or council‑approved mission‑needed programs, and it must follow SACSCOC rules to keep accreditation.

Fraternities and sororities keep recognition

Fraternities and sororities in good standing at KSU keep their recognition. The board may set regular reviews like other public universities. Any review rules must respect freedom of association and apply the same to all student groups.

No contracts with past KSU lease partners

Any organization that entered a public‑private lease with KSU—and its members or officers—cannot do business with KSU or any other state agency after this law takes effect. Any such contract made or renewed after the effective date is void.

KSU under five-year spending controls

The law declares a financial emergency at KSU for five years after it takes effect, or until lawmakers end it based on a council recommendation. KSU cannot make any obligation or spend $20,000 or more without prior approval from the Council on Postsecondary Education. KSU must send monthly financial reports to the council, and by July 1, 2027, it must reconcile all transactions in the EMARS system each month. The university may not run a budget deficit during the emergency. The council provides quarterly updates to the Governor and the LRC, and oversight lasts for the whole emergency.

Sponsors & Cosponsors

Sponsor

Christian McDaniel
Republican • Senate

Cosponsors

Danny Carroll
Republican • Senate
Joshua Watkins
Democrat • House
Vanessa Grossl
Republican • House

Roll Call Votes

All Roll Calls

Yes: 165 • No: 1

House vote • 4/1/2026

3rd reading, passed

Yes: 90 • No: 1

Senate vote • 4/1/2026

passed

Yes: 37 • No: 0

Senate vote • 3/26/2026