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students are part of a group of 900 students who this year applied for 130 slots in
Pharmacy. The expected return to Pharmacy is around $1.2 million, and Pharmacy's
plans for that amount would be to add from six to eight faculty and supporting staff
positions.

      Provost Nietzel next moved to the MBA degree, which is undergoing change both
from the academic as well as from the financial point of view for students. The cost of
the MBA program for resident students will be $12,628. This cost includes a program
fee of $3,000 per semester assessed to students. The $12,628 figure will be the entire
cost of an MBA degree because the program has been changed to a 12-month program.
The median cost of an MBA program is $29,000. So UK is offering, by virtue of
compacting this program into one year, a considerable savings for an MBA education.
For students currently in the program, their tuition will increase by 11.7 percent, the same
rate as the graduate tuition went up at the university.

      Mr. Hardymon opened the floor for discussion, questions, and comments. Rachel
Watts spoke first. After thanking the presenters for their presentations, Ms. Watts made
the point that she is among the lucky students who could and would, if necessary, pay
much more for her education at the University of Kentucky. But there are many students
who struggle with each increase in cost to complete their education. Offering more
scholarships would be a great help. Double-digit increases are a fact of life not only at
UK but also at our benchmarks and everywhere in the nation. Ms. Watts encouraged the
university to continue to look at long-term planning under the worst-case scenario with
regard to state funding. Under this scenario, the university can continue even though
funding is inadequate, and UK's trend of academic and research improvement will
continue as well.

      Finally, Ms. Watts wanted to be sure that "ordinary" students, not the
valedictorians or the highest scorers on the ACT, have a chance to come here. Some
students respond to our admonition to dream, and they do - they dream of going to UK.
Such students must be given a chance to succeed at the University of Kentucky.

      President Todd responded that there is something he did not mention - that with
this budget there will be an additional $500,000 of need-based scholarships, for a total of
$1.5 million allocated for such scholarships. He has heard that 82 percent of students
who request aid receive it at UK. He stressed that we need to make sure that people do
not get scared away from trying to attend the university. Higher education is still the best
investment they will ever make.

      Mr. Hardymon asked Ms. Watts to return to her point that the Board of Trustees
should look at the future and plan its strategies under the worst possible revenue scenario.

      Ms. Watts responded that every year, the board does not know what is going to
happen with respect to budgeting. Even in February or March there is uncertainty. She
would like for the board to find some way to have consistency in the midst of that
uncertainty, so that even if the worst possible scenario becomes reality, there will be a