Minutes of The Board Of Trustees April 6, 1920.
"(c) Auditing of the University Books. Over a year ago, the
accounting firm of Marwick, Mitchell, Peat and Company worked out
a system of accounting which we installed. In addition to this,
our books receive an annual audit. The State Examiner has indi-
cated that he wishes to audit the University's books and I have
told him that we are ready to receive him at any time for this work.
The annual budget for the coming year is nor being made. It will
be presented to the Executive Committee at its next meeting and will
be ready for the Board meeting in June.
"(d) Legislation. At the last session of the General Assembly,
the Budget Committee recommended to the Legislature some additional
items for University expenditures. As a result, we shall receive
Experiment Station ........ $50,000 annually for two years;
Agricultural extension work 108,000 for the first year;
Agricultural extension work 126,000 for the second year;
Engineering equipment ...... 30,000 a year for two years;
Agricultural instruction... 30,000 a year for two years;
Dormitory construction ..... 75,000 a year for two years.
We also receive 1 3/4 cents mill tax on each $100 of assessment.
It was estimated that we shall receive this year $345,000 from this
mill tax. The indications are that we shall probably be $15,000
short. Next year we shall probably receive something like $500,000
in all. The estimates for a budget for the coming year have just
been submitted to me and aggregate $630,000. This sum will have to
be cut down by about $150,000. It is necessary to have about a
5 per cent leeway in the budget, due to the fact that we have no
contingent fund. Many states have contingent funds for emergency
purposes and are able thereby to make definite budgets and live up
to them. It will probably be well for us to have arrangements in
this State for a contingent fund. We have had many requests for
additional buildings and increases in salaries, which are very neces-
sary as rents are mounting higher and higher. A few persons have
reported to me that they are now paying 33 1/3 per cent of their
salary for rent. Many are paying as much as 25 per cent of their
salary for rent. Many are leaving us because of the increased cost
of living in this city. This leads me to the suggestion that it
might be wise for the University to undertake a program for provid-
ing housing facilities for members of the University staff. Per-
haps we could set aside some land, borrow money from banks and
erect buildings and pay for them as rent comes in from houses thus
built. Lexington is behind something like 500 to 1000 houses in
its building program and the situation is so difficult that it
seems to me that the University might well consider the advisability
of entering on the program which I have suggested.