Moody's: Funding Cuts in Kansas Threaten Universities

May 13, 2016

Moody's, the credit ratings agency, this week said it changed its financial outlook to negative for three of the seven public universities in Kansas. This year the state's budget will strip $17.7 million from public higher education, which represents about 3 percent of the universities' total state support. State government is proposing a further cut of 3 percent next year.

Universities in Kansas are relatively reliant on state funding, Moody's said, which accounts for between 20 and 35 percent of their revenue. Moody's gave the negative outlook to Kansas State University, Wichita State University and Pittsburg State University. The flagship University of Kansas already had that designation.

"The proposed funding reductions by themselves are manageable with continued careful expense containment," Moody's said in its report. "However, declining numbers of in-state high school students and aggressive regional competition are also applying pressure on tuition revenue, the largest source of revenue for all Kansas public universities."

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