By Josie Simpson

As the Kentucky state budget heads toward a signature by April 15, the University of Louisville is grappling with a funding decrease and the future of its programs.  

Balancing budgets

General state funding for U of L has dropped by roughly 17.2% from fiscal year 2025-26. U of L President Gerry Bradley said the final budget outcome was still a surprise, despite the cuts being anticipated.  

Universities requested Historical Performance Distribution funds, which typically cover past state support plus adjustments for inflation and performance.  

The House initially proposed a general fund averaging around $130 million, while the Senate pushed for nearly $138 million.

“When the House budget came out, they announced the cut,” Bradley said. “So, when the Senate was preparing their version, clearly we wanted the increases, but the worst-case was to keep things level.”

In the end, U of L received around $134 million. The difference in support is about $2.59 million in fiscal year 2027 and $5.04 million in 2028.

The cut was disappointing, he said. By the end of the budget cycle, the university was fighting to avoid a reduction.

Cuts may come

Many of U of L’s organizations operate at a deficit, but Bradley said that doesn’t necessarily mean there’s cause for concern.  

The School of Music, for instance, consistently runs a deficit, yet the university has no plans to cut it because it aligns with U of L’s mission.  

But if programs start accumulating significant losses alongside declining enrollment, the university will begin weighing their impact. Bradley emphasized the university’s commitment to supporting programs where possible.  

“Pan African Studies–we could have completely closed that down–but we didn’t. We try to support that program to grow it.”  

With a limited pool of funds, U of L is prioritizing programs that can grow enrollment and generate revenue. Administrators hope the revenue will sustain unprofitable programs. To make the best use of resources, the university may phase out certain programs to introduce new ones. 

“You can’t have all programs losing money, or you don’t have a business,” Bradley said. “There has to be a mix.” 

However, these decisions will not be in isolation. Programs undergo routine health checks every four to five years to ensure efficiency and guide funding choices. If there’s an issue, the committee meets to offer suggestions to the dean and program director to move the program forward.  

New buildings expected

U of L did secure a few wins with the legislature. The university received approval for several major campus expansion projects, including a new STEM building and a federally funded bioscience facility. These developments mark a significant step forward for the long-planned innovation park.  

Bradley said the bioscience building will be the first to move forward. The project will include a promenade and pedestrian walkway over nearby railway tracks, helping connect the new space to the rest of the campus.  

The STEM building, which will sit next to the existing engineering building, is expected to follow. The university first needs to begin the early planning phase–selecting an architect and finalizing designs.  

The building will also house a cybersecurity and artificial intelligence center to advance U of L’s goal of being an expert in these areas.  

In addition to those projects, the university is already working to secure approval for a second federally funded building in the next budget cycle.  

These new buildings will not just serve as an industrial park; the university hopes the area will become a vibrant community with ample student activity.

“You’ll see big things happening,” said Bradley. “This has been exciting because for the last 15 to 20 years, it’s sort of been a pipe dream.” 

The fight against cancer

Bradley hoped that this budget cycle would help U of L become a prominent force in the fight against cancer in Kentucky.  

Kentucky is the leading state for cancer deaths, with 182 deaths per 100,000 people. To address this, U of L requested a National Cancer Institute grant, as it provides access to clinical trials known to reduce cancer mortality.  

The university, however, only received $2.5 million of the initial $15 million requested.

“We’re happy to get anything. We would have liked to have had more, but at least it’s a start.” 

The university currently conducts a handful of clinical trials, but the NCI backing would have opened the door to many more. With the funds received, U of L will continue to demonstrate its clinical trial capacity by bringing in researchers who already have funding.

“We’ll continue that as a priority regardless of funding, looking for help on the federal level.”  

Bradley ended by saying he wants the university to be known as much for its academics in the ACC as for its athletics. The new developments in cybersecurity and AI present major growth opportunities, but Bradley sees many others as well.  

“If we bring in the right people who can kickstart or develop a new area, that’s great for us and great for the institution.” 

The budget awaits approval from Gov. Andy Beshear.

File photo / The Louisville Cardinal