AN ACT relating to the postsecondary education working group.
Summary
HB 276 revises Kentucky’s postsecondary education funding statute to create and refine a comprehensive performance-based funding model for public universities and the Kentucky Community and Technical College System (KCTCS). The bill defines key terms, states legislative goals focused on student retention, credential completion, workforce-aligned degrees, equity in outcomes for low-income and underrepresented students, and transfer from KCTCS to four-year institutions. It directs the Council on Postsecondary Education to administer the model and to allocate state general fund support through a new or continued performance fund structure.
The bill sets detailed formulas for distributing university and KCTCS resources based on student success measures, credit hours earned, and campus operations factors such as square footage, administrative spending, and full-time equivalent enrollment. It also includes hold-harmless and stop-loss protections to limit abrupt funding reductions, while preserving the General Assembly’s ability to enact broader budget cuts. HB 276 further establishes a postsecondary education working group with legislative, executive, and institutional participation to review the model periodically and recommend adjustments, and it requires the council to promulgate administrative regulations to implement the system.
Impact
HB 276 would amend KRS 164.092 and affect how state general fund appropriations for public higher education are allocated in Kentucky. It would continue and formalize a performance-based funding framework for public universities and KCTCS, create or reaffirm the postsecondary education performance fund as a continuously appropriated funding source, and require annual certification and distribution of funds by the Council on Postsecondary Education and the State Budget Director. The bill also changes the review schedule for the postsecondary education working group and explicitly bars race-based metrics or targets in the funding formulas.
Sentiment
The recorded floor votes suggest the bill had meaningful support but also notable opposition. On third reading, HB 276 passed the House 78-20, indicating broad approval overall, while an earlier vote on an amendment failed 67-22, suggesting disagreement over changes to the bill’s structure or policy details. With no committee transcript available, the available record points to general support for the funding model itself, tempered by concern about specific amendments and implementation details.
Contention
The main points of contention appear to be the design of the funding formula and the role of equity-related measures. The bill expressly excludes race-based metrics or targets, which may have been a significant policy issue for some members. Other likely areas of debate include the balance between performance funding and funding-floor protections, the size and timing of stop-loss limits, and how much discretion the Council on Postsecondary Education should have in adjusting the formula for small campuses or economically disadvantaged regions. The failed amendment vote suggests at least one proposed change to the bill did not gain enough support, but the available record does not identify the specific objection.