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Regents warned $37 million could be lapsed from KBOR accounts, risking $20.1 million in student aid this year
Summary
Board staff told the committee a draft appropriation approach in the legislature would lapse about $37 million from the regents’ accounts—largely student financial aid—potentially removing $20.1 million the board had planned to use for spring awards unless the legislature restores the funds.
Elaine (board staff) updated the committee on the governor’s budget release and two appropriation bills published by the special committee on the budget. She said the panel stripped most requested enhancements but retained the Campus Restoration Act funding; the governor’s budget separately included some additions for the literacy blueprint.
Elaine told regents the budget committee’s approach treats unspent FY25 general‑fund appropriations that rolled into 2026 as available to lapse, and that the special committee’s draft would lapse approximately $37,000,000 from the board’s accounts. She said roughly $20,100,000 of that reduction would come from student financial aid language in the board office and that a portion—$8,200,000—relates to the Promise Act.
Staff are preparing to advocate for restoration of those funds and said they will add columns to their comparative appropriation table to show the governor’s numbers alongside the special committee’s actions. Elaine said institutions will be notified earlier if student financial aid amounts for FY28 are included in the bill language as currently drafted.
Regents asked about options to transfer available capital balances to address shortfalls in two‑year college allocations; staff said they will verify eligibility with audited reserves before transferring funds.
The committee recorded the update as information; regents will receive further legislative updates in later briefings.
