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funding. Many people whose children attend the University of Kentucky could afford to
pay more in tuition. And if UK is to be the economic driver of this state, the board is
going to have to raise tuition. He has talked to the president about this, and he recognizes
how politically unpopular such an increase would be. Why should we do this? Because
the state has needs - for more doctors, nurses, and pharmacists, who are simply not
available in many locations in the state. Money drives the talent in the professions as
well as in sports. UK should become accustomed to buying the very best talent, and it is
able to do that.

       It is very embarrassing to be at the bottom of the faculty salary list. Mr. Miles
used Dr. Moore's experience of 20 years at UK as an example of a person who could go
elsewhere and double his salary, but he stays here because he cares. The board has in the
past not been the economic driver it should have been. He recommended that the need is
to work smarter and have the effort start with the board.

       Ms. Ball thanked the chair and the administration for calling the special meeting
and giving the presentations. She said that she appreciated the discussion, especially of
health benefits issues, and is happy that the presentation included details on where the
extra money will be allocated.

       Ms. Ball said that she has hired four university students in her accounting
department part-time, and they are some of the best people that she has working for her.
The university is doing some things right.

       President Todd thanked the speaker and elaborated a bit on health benefits. When
he started his administration, UK was paying only 32 percent of the family plan for
faculty and staff and now the figure has gone to over 56 percent. Increases in health
premiums have been low. It can be said that the competition is paying 90 percent to 95
percent of their family plans, but this overlooks the fact that many institutions have not
been able to control the cost of their health plans and thus their employees are paying
more than our employees, even with that 90 percent payment. We have tried hard and
succeeded in controlling costs and have also budgeted money to do so because this is an
area for competition - the benefits segment.

       Mr. Hardymon asked if there were additional comments. Mr. Miles moved that
the board approve the budget. Many voices seconded the motion. The voice vote had the
majority approving and two opposing, Mr. Reed and Ms. Watts. Mr. Hardymon thanked
everyone for their time and the quality presentations that enabled the board to be so well
informed on the issues. He speculated that the process should be extended throughout the
year because the subjects will always be a concern of the board. He reflected on a recent
trip to China and a meeting at a Governor's Conference on Education that made it clear
that other countries of the world are rapidly moving to improve their education process
and our state must do likewise even though added burdens can be expected on all groups
involved.