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       In the Community College System, the budget includes an
increase of $24.7 million over the biennium. This amounts to an
increase of almost 50%. The budget includes the following:

       $19.3 million for program
       This amount is enough to provide for a number of the priorities
       included in the biennial request approved by the Board in the
       fall -- the statutory and contractual obligations for staff
       benefits and operating funds for new buildings; 5% salary
       increase each year for faculty and staff; inflationary
       increases on operating expenses; significant progress in
       faculty and staff salary catch-up; current expense improvement;
       faculty and support staff position catch-up and some funding to
       deal with needs across the system (weekend and evening
       programs, nursing and allied health programs, expansion of the
       general education programs). This will particularly give the
       community colleges the opportunity to employ faculty to help
       catch up with some of the increases in enrollment experienced
       the last few years.

       $5 million of new debt service
       This amount will be for new community college buildings on the
       Madisonville, Henderson, Owensboro, Maysville, Southeast,
       Lexington and Jefferson Southwest Campus.

       $150.000 for the Commonwealth Scholars program

       $250.000 for courses in Qarrollton

       Interim President Wethington stated that he is extremely
pleased with the action by the Governor and the General Assembly.
This will bring higher education to about 88% of formula funding from
approximately 80% at the present. He stated that if the funds do stay
and if the budget does get approved, significant progress can be made
within the University during the next two years, particularly as the
University addresses some of the serious problems in providing
competitive salaries for faculty and staff. He informed the Board
that a more complete presentation would be made at the May meeting.

       Mr. Ockerman expressed appreciation to each member of the Board
for the support they had given to the legislative process and the
favorable results that the University had attained. He stated that
Dr. Wethington is in a large measure responsible for many of the good
things that have happened to the University and higher education
during this legislative session. The time that he spent in Frankfort
had been very productive, and the Board thanks him.

       H.    Prsonnel. Actions (PR 2)

       With Interim President Wethington so recommending, Judge
Tackett made a motion to approve the routine personnel actions in
PR 2. The motion, seconded by Mr. Rose, carried. (See PR 2 at the
end of the Minutes.)