04/07/26 - Budget update from the 2026 Kentucky General Assembly legislative session

Dear Colleagues,

As the 2026 regular session of the Kentucky General Assembly is coming to a close, there still remains the veto period and two remaining legislative days. We are still engaged in active conversations advocating for our campus. But the effects of the state’s new biennial budget (HB 500), which passed both chambers April 1, are coming into focus. The budget includes important investments in several of our priorities, but it unfortunately includes reductions in state general funds that we will have to deal with as a community over the next two years.

In many areas of the executive branch of state government, they received reductions up to 7%. For NKU, the budget includes a 2% reduction to operating funds that equates to approximately $1,069,000 in Fiscal Year 2027 and a 3.9% reduction that equates to approximately $2,056,000 in Fiscal Year 2028. Performance funding appropriation will be $115 million, and our share is expected to decrease. As I have shared over the past couple months, we will have some tough decisions ahead and we will be creative, nimble and focused on our student-centered mission.

As we prepare for these reductions, here are some additional details:

• We will receive funding for the Kentucky Center for Mathematics of $1.3 million in each fiscal year. Additionally, in future years, KCM will be situated at NKU without us having to complete a proposal to host it. 
• Support for property and casualty insurance will be at $1.37 million in each fiscal year.
• We will receive an Investment in the Votruba Young Scholars Academy of $5.4 million over the biennium.
• Our asset preservation investment will be $10 million in FY27 and $6.9 million in FY28.
• The Department of Revenue will once again be directed to collect delinquent tuition funds by placing tax liens for the university and that will help us financially.

Following this bill’s passage, the General Assembly adjourned last week for the constitutionally required 10-day veto recess during which Governor Beshear may review, sign, veto or allow bills to become law without his signature. Then lawmakers will reconvene for the final two days of the regular session April 14-15 to consider potential veto overrides and, if necessary, pass any remaining legislation. After adjournment of those final days, the legislature will no longer have the authority to override additional gubernatorial vetoes.

While the legislative session is not yet finished, we must proceed as if HB 500 will be final. Yes, it is a lot to digest after we’ve worked so hard and come so far to balance our budget and address many issues over the past couple years. Now, once again, we must focus on collaboration, clarity, and pride in our shared purpose. We will align our resources with our mission and continue to build a university that is sustainable and deeply committed to our region and connected to our students.

I encourage you to attend the annual budget presentation next Monday, April 13, from 1 to 2:30 p.m. inside the H. Gordon and Thelma S. Martin Ballroom at the James C. and Rachel M. Votruba Student Union and online via the streaming communications page (NKU login required). That day, Vice President Chris Calvert and I will present updates about our finances and the budget for the year ahead with time for questions at the end. I hope you will join us.

In the meantime, thank you for your continued resilience and all you do each day to support our students and our mission.

Best Regards,

Cady