In preparation for the start of the next fiscal year on July 1, UK is crafting a new budget that must counteract a projected $70 million revenue shortfall.
Ahead of the budget's approval in an upcoming Board of Trustees, President Capilouto shared parts of the budget that were included to "protect our people and our mission."
One of the details was the earlier creation of an $11 million contingency fund, which will now be redirected to save about 100 jobs.
“Given the state of the economy in Fayette County and the Commonwealth – and our desire to protect our greatest asset, our people – we believe it is time to use some of those contingency funds,” Capilouto said.
Capilouto said the budget will not include reductions in force.
Fewer than 100 people are being moved to administrative no-pay status as of May 22, down from the university's previous furlough estimates.
700 UK HealthCare employees were previously moved to no-pay status, though Capilouto said that many of them have returned to work.
“[These jobs] are vital to our work and critical to the economy of Fayette County and the region,” Capilouto said.
UK is also setting aside funds to serve the needs of graduate students. $250,000 will be given to the Student Emergency Fund for graduate needs, and the staff of the Financial Wellness Office will increase in order to better serve graduate students. Additionally, graduate students will not lose assistantship positions or funding for research projects.
“These measures protect our people, who are so critical to our mission of putting our students and their success first,” Capilouto said. “We have a special responsibility to do what we can with our resources to...protect our community.
UK’s Board of Trustees will consider the budget next month.