Bevin orders immediate 4.5 percent cuts to Ky. universities, colleges

Published 7:45 am Friday, April 1, 2016

FRANKFORT — Gov. Matt Bevin on Thursday ordered funding for Kentucky’s universities and community colleges cut by 4.5 percent immediately without waiting for the House and Senate to resolve their budget differences on funding for higher education.

The action came on the same day the Republican Senate and Democratic House broke off budget negotiations because they couldn’t reach a compromise on university funding. Republicans support Bevin’s proposed cuts while Democrats contend they aren’t necessary and will result in tuition increases.

Bevin wants to include higher education in 4.5 percent cuts for the remainder of this fiscal year which ends in only three months and 9 percent for each of the next two years in order to accrue savings of about $650 million to devote to the state’s underfunded state pension plans.

But the cuts follow years of previous university cuts and just as revenue is forecast to grow by roughly $1 billion over the next two years.

University presidents have vigorously opposed the cuts, claiming they’ll have no choice but to cut programs, personnel and services to students while also raising tuition once again.

But Thursday Bevin sent a letter to his Finance Cabinet secretary William Landrum and Budget Director John Chilton to reduce the final quarterly allotment to universities by 4.5 percent “before the close of business today (Thursday).”

Bevin’s spokeswoman Jessica Ditto offered no explanation or comment from the governor, saying “the letter speaks for itself.”

During the budget negotiations between lawmakers they said the 9 percent cuts for an entire year equal roughly $215 million. Thursday’s action by Bevin presumably reduces total funding to the universities and community colleges by one-fourth of that amount.

Robbin Taylor, Vice President of Public Affairs for Western Kentucky University, said university officials are still reviewing Thursday’s news.

“We are trying to determine how we will cover that shortfall for the next three months,” she said. Efforts to reach representatives of the other universities late Thursday were unsuccessful.

Earlier this year, House Speaker Greg Stumbo, D-Prestonsburg, suggested Bevin couldn’t reduce the current year’s allocations under language contained in the current budget that was passed in the 2014 session.

His press spokesman, Brian Wilkerson, said Stumbo’s staff is reviewing Bevin’s letter to Landrum and Chilton and would have no additional comment.

Stumbo and House Democrats contend the budget cuts aren’t necessary to adequately fund the pension system, especially when the economy is improving and state revenues are expected to increase by roughly $900 million over the next two years.

The cuts, Stumbo said Thursday while explaining why Democrats wouldn’t agree with the Republican Senate to include them in a new budget, would lead to increases in tuition which he called “a veiled tax increase” on families with college-aged children.

Also earlier Thursday, before news broke of Bevin’s action, Republican Sen. Damon Thayer and his colleagues criticized an announcement by Eastern Kentucky University that it will expand its football stadium using student fees.

During budget hearings this year, university presidents have all said most of their revenue from outside sources other than the state allocation and tuition is restricted for specific purposes by the donors. They say the state funding is critically important to their general operations.

RONNIE ELLIS writes for CNHI News Service and is based in Frankfort. Reach him at rellis@cnhi.com. Follow CNHI News Service stories on Twitter at www.twitter.com/cnhifrankfort.