ADMINISTRATIVE POLICY 5.4.2
Title & #: Physical Facilities and Major Equipment Planning and Management - 5.4.2 |
Executive Sponsor: Chief Financial Officer |
Date Effective: 06/25/2026 |
Supersedes Version: 3 |
Physical Facilities and Major Equipment Planning and Management
INDEX PURPOSE REASON FOR POLICY ENTITIES AFFECTED DEFINITIONS POLICY STATEMENT ROLES AND RESPONSIBILITIES COMPLIANCE AND TRAINING REQUIREMENTS EXCEPTIONS APPROVALS RELATED DOCUMENTS REVIEW AND REVISION HISTORY This policy establishes the framework for planning and managing the physical facilities and major equipment of the Kentucky Community and Technical College System (KCTCS). It defines general responsibilities, planning processes, capital construction standards, real property procedures, space allocation, campus creation and expansion approval requirements, annual properties reporting, and debt service obligations. The policy ensures that KCTCS physical resources are developed, maintained, and reported in a manner that supports the System’s educational mission, preserves public assets, and complies with applicable state statutes and all related regulations. This policy fulfills KCTCS’s statutory and governance obligations related to facilities planning, capital budgeting, and property management. As a public postsecondary system, KCTCS must ensure transparent, accountable, and legally compliant stewardship of its physical resources. This policy applies to all employees, units, and departments of KCTCS. Asset Preservation - Maintenance and repair projects that sustain the operability, safety, code compliance, or energy efficiency of existing facilities. Asset preservation needs are reported bi-annually in priority order as part of the six-year capital planning process. Biennial Capital Budget Request - KCTCS’s formal request to the Council on Postsecondary Education and the Kentucky General Assembly for appropriation authority to fund capital projects and major equipment items during a two-year budget period. Campus Physical Development Plan (Master Plan) - A long-range planning document defining a system for land acquisition and utilization, building and site densities, parking, vehicular and pedestrian circulation, campus services, building materials, utilities, landscaping, and signage, consistent with the KCTCS mission and strategic plans. Capital Construction Project - A project involving the construction, demolition, renovation, or repair of college facilities with a scope estimated at $100,000 or more, requiring administration through KCTCS Facilities Support Services and compliance with all applicable state and federal statutes and regulations. Facilities Support Services (FSS) - The KCTCS System Office unit responsible for administrative oversight, coordination, and technical support for capital construction, real property, and facilities planning across all member colleges. Major Movable Equipment - Individual items of movable equipment equal to or exceeding $250,000 in cost, subject to the same long-range planning and biennial budget processes as capital construction projects. Six-Year Capital Improvement Plan - A rolling, prioritized projection of capital construction and major equipment needs for the two forthcoming biennia, updated each biennial planning cycle as part of the KCTCS strategic planning process. Major Equipment Plan - A planning document that identifies significant equipment needs that require substantial capital investment and are critical to academic programs, workforce training, or institutional operations. This includes specialized instructional equipment, laboratory systems, technology infrastructure, and large-scale operational equipment. The plan establishes priorities, lifecycle replacement strategies, and funding approaches to ensure equipment remains current and functional. Space Needs Analysis (SNA) - A systematic planning tool used by KCTCS colleges to identify, document, and prioritize operational and capital needs—such as facilities, equipment, and expansion projects—required to support the KCTCS Strategic Plan. Developed biennially, each SNA compiles detailed, cost-estimated requests based on campus planning efforts and is submitted to inform system-level capital budgeting. KCTCS shall plan and manage its physical facilities and major equipment in accordance with the requirements of this policy, applicable Kentucky statutes, Council on Postsecondary Education regulations, and KCTCS Board of Regents direction. A. Planning ProcessesFacilities planning shall be conducted through four integrated instruments: Campus Physical Development Plans, Space Needs Analysis, and Major Equipment Plans.Campus Physical Development Plans (Master Plans) shall be prepared at the direction of FSS and reviewed and amended as necessary prior to preparation of six-year capital improvement plans, new construction, biennial capital budget requests, and major equipment plans. Modifications shall be submitted to FSS for review and recommendation to the KCTCS President. Space Requirement Plans shall be prepared biennially by each college as part of the six-year planning process, within the context of established KCTCS information and guidelines. Facilities Plans and Major Equipment Plans are integral components of KCTCS strategic planning. KCTCS shall develop facilities plans that include: (1) status reports on current biennium facility plans; (2) prioritized facility plans for the two forthcoming biennia, including proposed land acquisitions and dispositions; and (3) annual reports of asset preservation needs under $1,000,000 in priority order. Major Movable Equipment Plans shall be submitted by each college for inclusion in the six-year improvement plan and biennial capital budget request. College Chancellors and/or College Business Officers shall prepare and submit to FSS prioritized proposals of capital projects and major movable equipment items for inclusion in the six-year capital improvement plans and biennial capital budget requests. Proposals must identify the source of funds for each project or item. FSS shall coordinate system-wide submission and establish the review committee for analysis of all plans and requests. B. Capital ConstructionIndividual capital projects involving construction, demolition, renovation, or repair of college facilities shall be executed in strict accordance with all applicable state and federal ordinances, statutes, and regulations. All projects estimated to cost $100,000 or more shall be administered through FSS.C. Real Property Acquisition and DispositionThe KCTCS Board of Regents has authority for all real property acquisitions and dispositions. FSS has the administrative responsibility of preparing all such transactions for review and approval by the Board. The KCTCS President or designee has the delegated authority for real property acquisition and disposition contractual agreements. Real property acquisitions and dispositions shall be managed within the context of approved Campus Physical Development Plans, except as authorized by the KCTCS President. Real property acquisitions of $1,000,000 or greater require State authorization and must be included in the six-year capital plan and the biennial capital budget request.D. Allocation of SpaceThe KCTCS President or designee is responsible for the allocation of space as a resource within KCTCS. Space vacated through the occupation of newly constructed or acquired facilities must be specifically reallocated — to other units within the same college, to a new purpose, to another KCTCS college, or leased as provided below.KCTCS space may be leased only after it has been determined that no current or future programmatic use exists. Any proposed or current lease of $200,000 or greater must be reported in the biennial capital budget request. Reports on all space occupied by KCTCS colleges and the System Office shall be submitted to the KCTCS President for reporting to the Board of Regents on a semi-annual basis. E. Campus and College Creation or ExpansionNo capital commitment, site acquisition, design contract, or construction activity may be undertaken in connection with the creation of a new college or campus, or the expansion of any existing college or campus requiring a General Assembly appropriation, until the process outlined in KRS 164.591, as amended, has been completed.No conditional commitments, advance expenditures, or binding contracts of any kind shall be entered into for a new or expanded campus until all five steps above are completed. F. Annual Properties ReportingBeginning October 1, 2026, and annually thereafter, KCTCS shall submit to the Legislative Research Commission (LRC) a report providing the following information as of January 1 of the year of submission:
G. Debt ServiceScheduling of projects funded through bonds or other debt instruments shall be consistent with the debt service authority approved by the Kentucky General Assembly regarding total debt authority and annual debt service amounts. The KCTCS Chief Financial Officer (CFO) shall maintain current cash flow projections and debt service schedules and shall report on debt service status to the Board of Regents no less than quarterly. Any material variance from projected debt service capacity shall be disclosed to the Board of Regents immediately upon discovery. KCTCS President: Responsible for the overall direction of KCTCS physical facilities planning and management including but not limited to preserving and enhancing a quality physical environment; ensuring building code compliance, ADA accessibility, and energy efficiency; providing adequate infrastructure for educational programs; and overseeing effective land use, utility networks, and vehicular and pedestrian systems. The President has authority for space allocation and delegates facilities management authority as appropriate.KCTCS Chief Financial Officer: Has been delegated the authority from the KCTCS President for executing the physical facilities planning and management function. The CFO is responsible for maintaining debt service schedules, providing quarterly debt service reports to the Board of Regents, disclosing material variances, certifying the accuracy of the annual properties report prior to LRC submission, and overseeing the timely coordination of the annual properties data collection process. Facilities Support Services (FSS): The KCTCS System Office unit responsible for administrative oversight, coordination, and technical support for capital construction, real property, and facilities planning across all member colleges. College Chancellors: Responsible for developing facilities plans for their college, day-to-day management of assigned facilities and campus areas. FSS is responsible for coordinating policy training. College Chancellors, College Business Officers, and all KCTCS staff with facilities planning, capital project, or real property responsibilities shall receive orientation to this policy at hire and upon each significant revision. FSS shall provide refresher guidance at the start of each biennial planning cycle. Compliance is monitored through annual capital project status reporting to the Board of Regents, semi-annual space utilization reports, the annual LRC properties report submission, and quarterly CFO debt service reporting. Non-compliance may result in disciplinary action, up to and including, or termination. Modifications to Campus Physical Development Plans outside the standard review cycle require authorization by the KCTCS President. All requests for exceptions to the Campus Physical Development Plans must be submitted in writing to FSS with a statement of justification. The FSS will provide a recommendation to the KCTCS President for review. Approved by Executive Leadership Team – June 22, 2026 Approved by President’s Leadership Team – June 25, 2026 Signed by KCTCS President – June 25, 2026 Administrative Policy 5.4.1 – KCTCS Budgetary Policy (governing capital budget authorization and fund management) KCTCS Board of Regents Policy 1.1 KRS 164.591 (as amended by 2026 HB 619) – Geographic Footprint and Properties Reporting KRS 164.583(5) – Council on Postsecondary Education Approval Requirements KRS 164.7915 – Biennial Budget Request Requirements This policy shall be reviewed every three (3) years from the date of the original adoption. Original Adoption – April 30, 1999. Revised - May 25, 2005, April 4, 2023, June 25, 2026. Next Scheduled Revision, on or before June 25, 2029. |