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       President Wethington said that he wanted to publicly express his
thanks and appreciation to Governor Brereton Jones and his staff, to
Senator Mike Moloney and Representative Marshall Long for their support
of higher education. They addressed a very serious budget problem for
the Commonwealth and spared higher education from further budget cuts,
other than the 2Z which had already been planned. This was an important
decision for the University of Kentucky. He said that he believed the
Governor, his staff and the legislators recognized all the work that the
University community had done in this last eighteen months to manage the
cuts that the University had already experienced: to reorganize, to look
at staffing patterns, to look at workload, to look at virtually the
entire University operation, and make changes wherever possible to
create efficiencies and productivity. He said that he knows that the
efforts of the University community were recognized. He commended
Governor Jones and those who worked with him for their recognition of
the importance of colleges and universities to the Commonwealth,
particularly for their recognition of the impact that further cuts would
have had on this institution had they been levied.

       He reported that the University now has a budget for 1993-94. It
is the budget that the Board approved in June. It is the budget that
sets priorities for the institution. It expects the administration,
faculty and staff to carry out those priorities. He reminded the Board
that the 2% deferral was set aside, and it is now a permanent reduction.

       He said that in addition to focusing on higher education and
providing some preferential treatment, the Governor expressed very
clearly an expectation that the University administrators continue to
look for ways to be even more productive and efficient. He noted that
the Governor had set up a Commission to look at the entire system of
higher education and asked the chairpersons of the Boards, the
university presidents, along with members of the Governor's staff,
Senator Moloney and Representative Long to serve on the Commission and
make a recommendation to him by November 1. President Wethington said
that he takes the charge very seriously. He believes that it is
important that the charge be taken seriously and that the Commission
address the issues that are impacting higher education. He said that
the University must demonstrate that it is making every effort to be
responsible, be efficient and productive. He said that he and Governor
Breathitt would be reporting to the Board about the progress of the
Commission. He said that the efforts to be efficient and productive are
not finished. They will be ongoing, and higher education will be a part
of those efforts as will all of state government.

       Governor Breathitt said that the work of the President, his
staff, the Board of Trustees and the entire University community has
added credibility to this institution. He said that he would carry out
his charge on the Commission and that he would be happy to have input
from members of the Board.