‘Race-based metrics’ no longer included in state funding model for Kentucky public colleges

The Council on Postsecondary Education (CPE) has made initial changes to the way Kentucky public universities receive state funding, removing “race-based metrics” from the performance-funding model to be in compliance with a law passed earlier this month.

Senate Bill 191, signed by Gov. Andy Beshear on April 18, explicitly bars CPE from considering race in its performance-based funding model. CPE “shall not include any race-based metrics or targets in the formulas” under the new law. It also strikes out references to minority students in the formula, allowing colleges to be evaluated on the number of bachelor’s degrees and credits awarded to “underrepresented students” instead of “underrepresented minority students.”

At a special-called meeting April 25, the CPE board approved changes to the funding model to be in compliance with the law, which includes an emergency clause that causes it to go into effect on May 1.

“The emergency regulations approved by the Council complies with Senate Bill 191 and captures the recommendations of the Performance Funding Working Group,” a CPE spokesperson said in a statement. “The working group is a statutorily-required group comprised of representatives from campuses, the governor’s office, legislative leaders and CPE.”

Performance-based funding is a complex funding formula that has been in place since 2016, which gives state funding to public universities based on their performance in certain metrics. It looks at 11 metrics when distributing funding, including the number and types of degrees awarded each year. It also looks at the number of STEM+H (Science, Technology, Engineering, Math and Health) degrees, as well as the number of degrees earned by minority and low-income students, according to CPE.

With the passage of Senate Bill 191, CPE approved changes to the funding model and will convene the performance funding work group to look at further changes for the 2025-2026 school year’s distribution of funds.

“The state’s performance funding work group ... will work together during the interim to define underrepresented students in the model that will help continue to advance the state’s goals for a more highly trained and educated workforce,” CPE President Aaron Thompson said in a statement to the Herald-Leader on April 18.

With last week’s vote, CPE will change the funding model from 3% to 9.5% given based on low-income bachelor’s degrees produced. Degrees given to first-generation students and non-traditional students also will be part of the performance funding model, with 1.5% of funding based on the number of bachelor’s degrees awarded to first-generation students. Similar changes were made to the funding model for the Kentucky Community and Technical College System.

The University of Kentucky, the largest college in the state, receives the largest amount of performance-based funding. For the 2023-2024 fiscal year, UK received $33.3 million of the state’s $75.8 million performance funding pool, according to the university. UK’s total budget is $6.8 billion for the current fiscal year.

Because the bill included an emergency clause, it goes into effect on May 1. The performance funding work group will meet throughout this year to look at funding for the 2025-2026 school year, Powell said.

Senate Bill 191 and the changes to the funding model are separate from the push to limit diversity, equity and inclusion practices on college campuses in the state. The Senate and House both introduced bills that would have limited DEI efforts, with one bill that would have banned DEI offices, but neither bill passed this session.