Kentucky State University projected a sharp enrollment decline of about 20% by next spring after a new state law requires disenrolling students who owe the institution money. University officials said the anticipated fall reflects SB 185’s financial components, alongside other factors, and could affect spring enrollment including dual enrollment students. SB 185 gives Kentucky significant financial control over the historically Black university during a financial exigency period, including limits on the number of academic areas the institution can offer and requirements tied to maintaining staffing levels to support an enrollment target. The law also restricts operational flexibility as the institution transitions toward a “polytechnic” model. For higher education leaders, the development underscores how state budget governance mechanisms can reshape institutional enrollment management and academic program capacity. It also elevates concerns about student persistence and financial barriers when unpaid balances trigger disenrollment, especially for institutions serving high-need learners.