In 2015, as a candidate, Governor Bevin campaigned on developing an outcomes-based funding model to rationally and strategically appropriate Kentucky's near-$1 billion investment to postsecondary education. Thanks to his leadership, the 2016 General Assembly created a task force to develop a comprehensivee funding model that was approved during the 2017 General Assembly.
- The model created has a recommended phase-in:
|2017-18||5% of general fund appropriation ($42.9 million)|
|2018-19||100% of general fund appropration with hold-harmless provision|
|2019-20||100% of general fund appropriation with 1% stop-loss provision|
|2020-21||100% of general fund appropriation with 2% stop-loss provision|
- The model's first distribution of the 5% awards Northern Kentucky University its full 5% plus an additional $174,000
- The model confirms once again that NKU is substantially underfunded compared to peer universities. In the final report produced by the 2016 task force, it acknowledges that the disparity should be remedied by providing funding to NKU to achieve a common, equitable starting point.
- In his 2016 budget proposal, Governor Bevin appropriated an additional $10.7 million in annual funding to NKU to fix the disparity. Through the legislative process and conference committee, half of the disparity ($5.1 million) was appropriated.
Since 2006, NKU's KERS contribution rates have increased from 8% to 49%. In dollars, the increase has risen from $2.2 million in 2006 to $19.1 million in 2017. NKU's KERS contribution equates to 38.7% of our total annual state appropriation.
- If the anticipated special session on pension reform results in KERS contribution rate increases, the following hypothetical situations would impact NKU as such:
If contribution rates increase to 60%, that would equal a total contribution amount of $23.7 million and constitute 47.3% of NKU's total state appropriation.
If contribution rates increase to 70%, that would equal a total contribution amount of $27.5 million and constitute 54.8% of NKU's total state appropriation.