INC OME

      The estimated income for the Division of Colleges and Plant for the
fiscal year 1953-54 totals $ 4, 757, 567. 87, an increase of $ 384, 876. 82
over the estimated income for the current fiscal year.  The biennial
budget enacted by the General Assembly and approved by the Governor
in 1952 provided for an increase of $ 249, 600. 00 in the appropriation
for operations of the Division of Colleges for the second year of the
biennium.  The University State appropriation for Vocational Education
through the State Department of Education for the year 1953-54 has been
decreased $ 467. 59. Therefore, the net increase from state appropriations
for the Division of Colleges is $ 249, 132. 41. Federal funds for Vocational
Education purposes (Smith-Hughes Act) is received on a matching basis,
and since the State Vocational Education funds allocated to the University
were decreased $ 467. 59, there will be a like decrease in federal grants
for these purposes.

      The estimated income from student fees for the ensuing fiscal year
is increased by $141, 778. 00. This increase is due to an expected enroll-
ment of 2, 300 for the summer term and 4, 800 for each of the two semesters
for the academic year 1953-54. Also, the estimate of income from stu-
dent fees takes into account veterans, tuition in arrears.  It, likewise,
reflects the fact that the Korean veterans will pay the same fee and be
considered as any other student, thus eliminating the "tuition" charge
in addition to the registration and incidental fee, formerly received from
veterans enrolled under the original G. I. Bill of Rights.

      The estimated income for auxiliary enterprises reflects a decrease
of $ 4, 843. 00 for the year 1953-54.  A small decrease in the summer term
occupancy in the residence halls is anticipated.  There is a small decrease
in the requirements for debt service in the Plant Fund.

EXPENSE

      The total estimated expenditures for the Division of Colleges and Plant
for the fiscal year 1953-54 are $ 5, 240, 217. 04.  This is an increase over
the estimated expenditures for 1952-53 of $ 531, 097. 86.  The amount budget-
ed for Plant commitments is $ 3, 765. 00 less than the preceding year. Ap-
propriations for all other functional purposes have been increased.  The
requested appropriation for administrative and general expense has been
increased $ 57, 857. 00. However, $ 22, 280. 00 of this increase is budgeted
for an International Business Machine Service Unit to be used for adminis-
trative and research purposes.  The rate of employer' s contribution to
Social Security will on January 1, 1954, be increased from 1-1/z to 2 per
cent on gross wages and salaries.  This increase in rate will cost the
University an additional $15, 000. 00 for the period.  The normal adminis-
trative and general expense for the University has been increased $ 20, 577. 00,
which is 3. 87 per cent of the total increase for the Division of Colleges and
Plant.

     The largest increase is for instruction, research, and related activ-
ities, which amounts to $ 31i, 199. 86.  This is 58. 59 per cent of the total
increase of $ 531, 097. 86 for the Division of Colleges and Plant. Practically