Page 1 of 1 LRC 2022-BR864-HB250
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2022 R EGULAR SESSION
MEASURE
2022 BR NUMBER 864 HOUSE BILL NUMBER 250
TITLE AN ACT relating to Kentucky State University, making an appropriation therefor, and declaring
an emergency.
SPONSOR Representative James Tipton
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT(S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDATE
APPROPRIATION UNIT(S) IMPACTED: Kentucky State University and Council on Postsecondary
Education
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED
FISCAL ESTIMATES 2021-2022 2022-2023 2023-2024 ANNUAL IMPACT AT FULL
IMPLEMENTATION
REVENUES
EXPENDITURES $23,000,000 $1,000,000 $1,000,000 Appropriations will adjust
accordingly
NET EFFECT ($23,000,000) ($1,000,000) ($1,000,000) Appropriations will adjust
accordingly
( ) indicates a decrease/negative
PURPOSE OF MEASURE: The measure provides emergency fiscal relief to Kentucky State
University (KSU) as a non-interest bearing loan that will begin repayment in fiscal year (FY)
2027, establishes a trust fund to accept loan repayments, requires the Council of Postsecondary
Education (CPE) to develop a management improvement plan, and establishes regular reporting
requirements for both KSU and CPE.
FISCAL EXPLANATION : HB 250 will increase expenditures beginning in FY 2022 with a
$23 million appropriation to KSU to stabilize the university’s finances in the form of a loan with
possible forgiveness. CPE has indicated that with the expanded duties and responsibilities
provided for in this measure they will require additional personnel for support and oversight with
an estimated impact of $1 million in each fiscal year.
At this time, it is unknown how much, if any, of the $23 million of the non-interest bearing loan
will be repaid by KSU, but the potential exists for an increase in revenues in the future.
DATA SOURCE(S): Council on Postsecondary Education
PREPARER: Savannah Wiley NOTE NUMBER: 22 REVIEW: JAB DATE: 1/24/2022