FRANKFORT, Ky. – Kentucky State University will get a new lease on life as HB 250 has passed in Kentucky’s General Assembly. KSU was under serious financial burden following the departure of President Brown in the summer of 2021. Him, along with the previous Board of Regents had allowed the institution to take on ambitious projects and loans that were not being paid. Along with that, misuse of funds by the former president and collusion throughout the staff allowed for the debt total to continue to rise.

House Bill 250 is an extensive $23-million loan granted with strings attached by the Council on Post-Secondary Education. The loan will help to pay the debt incurred throughout the past few years.  Repayment of the loan will not be an issue until the beginning of fiscal year 2026-2027. The Council on Postsecondary Education will have an integral hand on actions made by the university financially for the following years to come. According to HB 250, “Any reasonable costs incurred by Kentucky State University and approved by the Council on Postsecondary Education related to, or resulting from, implementing personnel actions, including but not limited to terminations, separation incentives, settlements, and judgments shall be reported by the council to the General Assembly for consideration in determining future budget appropriations to the university.”

Along with that, “[t]he Council on Postsecondary Education shall create and oversee a management improvement plan for Kentucky State University designed to 2 assist with organizational and financial stability…”

Kentucky State University released a statement earlier today to express gratitude for the bill sponsors and everyone who helped make this bill a possibility.

Acting president Clara Stamps in particular thanked the bill sponsors and stated, “The Kentucky Council on Postsecondary Education and Dr. Aaron Thompson have played a pivotal role in the passage of this bill and will continue to play an influential role in Kentucky State University’s future moving forward.”

Kentucky State University will remain open and operational for the foreseeable future.