SB 135 — AN ACT relating to the postsecondary education performance fund and declaring an emergency.

UNOFFICIALCHAPTER COPY39 211 RSCHAPTER 39 ( SB 135/EN135 ) AN ACT relating to the postsecondary education performance fund and declaring an emergency.

Page 1 of 10 SB013520.100 - 1031 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 135/EN (h) "KCTCS" means the Kentucky Community and Technical College System;

(b) Increasing the number and types of credentials and degrees earned by all types Page 2 of 10 SB013520.100 - 1031 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 135/EN of students;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (c) Increasing the number of credentials and degrees that garner higher salaries upon graduation, such as science, technology, engineering, math, and health, and in areas of industry demand;

Page 3 of 10 SB013520.100 - 1031 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 135/EN (a) Recognize differences in missions and cost structures between research universities and comprehensive universities to ensure that neither are advantaged or disadvantaged during the first full year of implementation;

Bachelor's degrees awarded per one hundred (100) undergraduate full-full-time time equivalent students;

(b) Thirty-five percent (35%) of total university allocable resources shall be distributed based on each university's share of sector total student credit hours Page 4 of 10 SB013520.100 - 1031 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 135/EN earned, excluding dual credit enrollment, weighted to account for cost differences by academic discipline and course level, such as lower and upper division baccalaureate, master's, doctoral research, and doctoral professional;

Ten percent (10%) shall be distributed based on each university's share of Category I and Category II square feet, net of research, nonclass laboratory, and open laboratory space, to support maintenance and operation of campus facilities and may include a space utilization factor CHAPTER 39 3 as determined by the council in collaboration with the working group established in subsection (11) of this section;

and (c) Shall be constructed to achieve equilibrium, at which point the funding Page 5 of 10 SB013520.100 - 1031 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 135/EN formula rewards rates of improvement above the sector average rate.

Ten percent (10%) shall be distributed based on each college's share of Category I and Category II square feet, net of research, nonclass laboratory, and open laboratory space, to support maintenance and Page 6 of 10 SB013520.100 - 1031 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 135/EN operation of campus facilities and may include a space utilization factor as determined by the council in collaboration with the postsecondary education working group established in subsection (11) of this section;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (9) (a) The funding formula for both sectors shall include:

A stop-loss provision for fiscal year 2019-2020 limiting the reduction in funding to any institution to one percent (1%) of that institution's formula base amount;[ and] 4.[3.]A4.[3.] A stop-loss provision for fiscal year 2020-2021 limiting the reduction in funding to any institution to two percent (2%) of that institution's formula base amount;

A stop-loss provision for fiscal year 2021-2022, and every fiscal year thereafter, limiting the reduction in funding to any institution to zero Page 7 of 10 SB013520.100 - 1031 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 135/EN percent (0%) of that institution's formula base amount.

(d) For fiscal year 2017-2018, the Office of the State Budget Director shall Page 8 of 10 SB013520.100 - 1031 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 135/EN distribute to the public postsecondary education institutions, except for Kentucky State University, those funds appropriated to the[ postsecondary education] performance fund by the General Assembly in 2016 Ky.

(b) Beginning in fiscal year 2020-2021 and every three (3) fiscal years thereafter, the postsecondary education working group shall convene to determine if the comprehensive funding model is functioning as expected, identify any unintended consequences of the model, and recommend any adjustments to CHAPTER 39 5 the model.

(13) (a) The postsecondary education performance fund is hereby established as an Page 9 of 10 SB013520.100 - 1031 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 135/EN appropriation unit to support improvement in the operations of the public postsecondary institutions and achievement of the Commonwealth's education policy goals and workforce development priorities.

PageSigned 10by ofGovernor 10March SB013520.10018, -2021. 1031 - XXXX Engrossed

Legislative Research Commission PDF Version