Bona Fide Financial Reasons Policy
House Bill 490 and Faculty Senate Policy Development
House Bill 490 amended Kentucky law to allow faculty dismissal based on a broader range of bona fide financial reasons than the traditional standard of financial exigency and requires each institution鈥檚 Board of Regents to establish and communicate a formal process for such actions by October 1, 2026.
In response, the Faculty Senate has developed FSH 26-27-7, Dismissal for Bona Fide Financial Reasons, through a shared governance process that has included faculty feedback, open listening and drafting sessions, multiple Senate readings, and consultation with University leadership. The proposed Faculty Handbook revision is intended to establish meaningful procedural protections, faculty oversight, and transparency within the new statutory framework.
On April 7, 2026, the Faculty Senate completed a first reading of the draft followed by a second reading of the draft on May 5, 2026. The Faculty Senate also endorsed guiding principles for continued policy development at the May 5th meeting and postponed final action pending additional refinement and consultation over the summer. Following that work, the revised proposal will return to the Faculty Senate for third reading and final consideration at a special meeting on August 18, 2026.
Third Reading and Final Consideration 鈥� August 18, 2026
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August 18 Special Faculty Senate Meeting Agenda ()
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FSH 26-27-7 Dismissal for Bona Fide Financial Reasons ()
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Summary of Revisions ()
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Track Changes Draft Since the May 5, 2026 Second Reading ()
Faculty are encouraged to share any final feedback on the policy. Feedback may be submitted:
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Directly to your department senator (list of senators)
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Through the
Archived Policy Development and Faculty Engagement Materials
The material currently on the page can remain beneath that heading, including the second-reading draft, guiding principles, Executive Committee open drafting record, first-to-second-reading track changes, listening-session information, and April 21 open drafting session materials. Here is a sample revised language.
Draft Policy
Open Drafting & Revision Record
Feedback, Listening Sessions & Open Drafting Session
The Faculty Senate Executive Committee invited all faculty and campus stakeholders to share feedback, participate in listening sessions, and participate in an open drafting session focused on the proposed revisions. These mechanisms were opportunities to provide input, ask questions, and help shape the policy prior to Senate consideration and approval, followed by review and approval by the Provost, President, and ultimately the Board of Regents.
Faculty were encouraged to share feedback on the draft policy. Feedback was submitted:
- Directly to your department senator (list of senators)
- Through the
- By requesting a meeting with Faculty Senate officers at
Listening Sessions
Location: Curris Center Cumberland Room
Zoom option was available for all sessions.
- Friday, April 10 | 11 a.m.鈥�12 p.m.
- Wednesday, April 15 | 3鈥�4 p.m.
- Thursday, April 16 | 9鈥�10 a.m.
Executive Committee Open Drafting Session
The Executive Committee reviewed stakeholder feedback and revised the draft policy during this open session.
Tuesday, April 21 | 3:30鈥�5 p.m.
Location: Wells 118