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        D.   Thomas P. Bell Memorial Scholarship Fund

        Vice President Hornback reported that following the death of
Trustee Thomas P. Bell several members of the Board discussed the
possibility of creating a scholarship fund at the University in memory of
Mr. Bell. The matter was discussed with his wife Leslie and son Bruce,
and they chose a scholarship to the Law School. Dr. Hornback reported
that to date pledges in the amount of $55,000 have been received from
Trustees, Development Council members, friends and business associates.
President Singletary indicated his pleasure with the progress being made.

        E.   President Singletary Announces Retirement

        President Singletary formally announced his intention to retire
at age 65 from the presidency of the University when his existing
contract expires June 30, 1987. He cited the following reasons for
announcing his retirement at this particular time: (1) to permit the
faculty time to elect, prior to the end of the spring semester, its
members of a Presidential Search Committee; (2) to allow a reasonable
time for an orderly process in the selection of his successor; and (3)
the completion of the University's budget process for 1986-88 which will
be acted on today by the General Assembly.

        President Singletary indicated that he was pleased, and felt the
Trustees should be, with the budget. He reported that increases include
funding for fixed costs, salary increases, further development of UK's
Centers of Excellence (Centers on Aging, Cancer, Pharmaceutical Science,
Equine Health Care, Biotechnology, Biomedical, and Center for Public
Administration), $3.2 million program support of a Robotics Center,
$400,000 for salary increases for Agricultural federal employees, $1.4
million for program support of Owensboro Community College, and
maintenance and operation on new facilities coming on line during the
biennium: (Animal Care, Gluck Equine, Mines and Minerals, Combs Cancer
and Parking Structure #3). Also included in the budget is debt service
funding for $1 million for a fire safety project, $10 million for
academic equipment, $10 million for a Robotics Center building and
equipment, $5 million for a supercomputer, $11 million for Agriculture
Engineering Building, $3.5 million for Agriculture Regulatory Service
Building, and $15.4 million at five community colleges plus $12.5 million
for a new community college at Owensboro.

        President Singletary also reported that the Council on Higher
Education was allocated an additional $9 million from which $2.2 million
for 1986-87 and 1987-88 will be available to deal with salary problems at
the University. Also allocated to the Council was funding for programs
in which the University would expect to participate: $2.0 million for
endowed chairs, $1.9 million for Centers of Excellence, and $0.6 million
for the EPSCOR program to stimulate research (matched by $0.6 million of
federal funding).

        President Singletary indicated that the University was in better
shape than anyone could have reasonably expected last summer. He
attributed the success to the Governor's leadership, legislative support
and the Kentucky Advocates for Higher Education.

        As to his future, President Singletary reminded the Board that he
holds a tenured professorship and, unless some unforeseen circumstance
arises, he would expect to fill a professorship until he reaches the
normal faculty retirement age of 70.