Kentucky State University seeks $3.4 million marketing push, says Commonwealth will own online program IP
February 11, 2026 | 2026 Legislature KY, Kentucky
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Kentucky State University officials asked the Legislature's contracts review committee to approve two short-term contracts tied to the university's nascent online academic program: a four-month implementation contract to finish a vendor-led transition and a $3.4 million marketing campaign intended to increase enrollment.
Heather Begard, vice president for finance and administration and chief financial officer, and Michael Dailey, provost and vice president for academic and student affairs, told the committee the online program launched less than 18 months ago and has grown from 74 students at launch to 612 students today. "We have 612" in the program now, Dailey said, and the university has targeted a goal of 1,000 online students for fall enrollment.
Dailey described the four-month contract as the final transition year during which the vendor helps stand up capacity and then transfers operations to the university. He told the committee the Commonwealth will own the intellectual property created during the contract: "the Commonwealth owns all the intellectual property associated with the development of this program." Committee members asked whether the vendor had demonstrated results at other institutions; Dailey said the vendor team has experience rebuilding online platforms, citing work that originated with Liberty University.
Representative Ballmer asked how the university will measure success for the $3.4 million marketing campaign and what the specific enrollment targets are. Dailey said the marketing will target programs with higher market yield (for example, an executive-track MBA and a fast-growing MSW) and a student persona concentrated around mid-career adults. "Our target is actually to be for fall enrollment... If we pick up enough students... we should hit our target of 1,000 students," he said.
Committee members also probed funding sources and sustainability. Ballmer noted the campaign is funded with tuition-generated restricted funds and asked for measurable targets; Dailey described a rolling eight-week enrollment carousel and said the effort aims to solidify programs that will be sustainable once the vendor hands over operations.
After the questions, the committee moved and voted to consider the contracts and later approved the related items on the agenda.
Heather Begard, vice president for finance and administration and chief financial officer, and Michael Dailey, provost and vice president for academic and student affairs, told the committee the online program launched less than 18 months ago and has grown from 74 students at launch to 612 students today. "We have 612" in the program now, Dailey said, and the university has targeted a goal of 1,000 online students for fall enrollment.
Dailey described the four-month contract as the final transition year during which the vendor helps stand up capacity and then transfers operations to the university. He told the committee the Commonwealth will own the intellectual property created during the contract: "the Commonwealth owns all the intellectual property associated with the development of this program." Committee members asked whether the vendor had demonstrated results at other institutions; Dailey said the vendor team has experience rebuilding online platforms, citing work that originated with Liberty University.
Representative Ballmer asked how the university will measure success for the $3.4 million marketing campaign and what the specific enrollment targets are. Dailey said the marketing will target programs with higher market yield (for example, an executive-track MBA and a fast-growing MSW) and a student persona concentrated around mid-career adults. "Our target is actually to be for fall enrollment... If we pick up enough students... we should hit our target of 1,000 students," he said.
Committee members also probed funding sources and sustainability. Ballmer noted the campaign is funded with tuition-generated restricted funds and asked for measurable targets; Dailey described a rolling eight-week enrollment carousel and said the effort aims to solidify programs that will be sustainable once the vendor hands over operations.
After the questions, the committee moved and voted to consider the contracts and later approved the related items on the agenda.
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