1. February 2016 HR Division Meeting
Budget Overview
February 2016 HR Division Meeting

2. What we know – Current Budget Composition
Total budget is $3.4 B
“General Fund” base is $712.8M
General Fund - state appropriations and tuition
Intent - support our core instructional and public service missions
FY2016 state appropriations - $279.6M of the $712.8M “General Fund”

3. State appropriations – UK’s $280M Engine

4. What we know – Cuts proposed
Current Fiscal Year (FY 2016)
Current state appropriation is $279.6M
4.5% cut in the current appropriation = $12.6M
Would be through executive order
Next Fiscal Year (FY 2017)
9% cut from original FY 2016 base appropriation = $25.2M
$25.2 M is equivalent of a 3.5% General Fund reduction

5. What we know – proposed performance fund
Fiscal Years 2018, & 2020
All state appropriations move to 100% performance based in 1/3 increments over three fiscal years
33% in FY 2018
66% in FY 2019
100% in FY2020

6. What we know – this is a long process
The budget proposed is not yet finalized
Kentucky Senate and House members are reviewing
President Capilouto testified before the House last week
The current legislative session will end April 12th

7. What we know – no immediate, drastic changes
UK has not implemented a hiring freeze
HR has not been asked to develop plans for potential cuts

8. What we don’t know
What kind of budget decisions will be made at UK, once the budget is finalized
Additional revenue?
Efficiencies/cost savings?
Tuition increase?
Cuts to departmental budgets?

9. Anticipated timetable
Expect state budget to be finalized by end of session, April 12th
Expect UK leadership decisions shortly after that

10. Ways we are helping
Our health plan increases have averaged 6.8% since fiscal year
This is 3.1% below the national large employer average increase for the same period.
By having our health plan perform below the national large employer average for this time period, the University has saved $39.8M.

11. Ways we are helping
This prescription medication purchasing collaborative, lead by UK HR, has been generating substantial savings for multiple institutions since 2011

12. ways we are helping

13. Questions or feedback?