4



       President Roselle concluded his remarks by saying that the
1988-89 budget is very tight; however, it is important that the
University continue to make progress by having more support for good
scholarship and a high quality of student life.  He explained that
achieving these goals will require improving personal conditions of
employment, building an environment in which faculty and students are
more easily able to conduct their studies, and making provisions to
attract and retain the best faculty, staff, and students.  He then asked
Mr. Carter to address the Board on some of the planned initiatives.

       UIsing a series of charts, Vice President Carter provided detailed
information on the impact on the University of Kentucky budget of the
appropriation bill before Governor Wallace Wilkinson.  In summary, he
indicated it would take $21.7 million to deal with the programs proposed
by President Roselle. He reminded the members of the list of options
presented at the last meeting and stated that two broad categories were
beinq considered in order to deal with the deficit budget:  exploring
additional revenue sources and reviewing reallocation possibilities.  He
explained that the additional revenue sources involved looking at
significant revenue sources to come into the institution to support the
plan and reallocation possibilities would he the elimination of
positions throughout the institution.  He indicated that the final
budget document would be presented at the June meeting and that the
purpose of the presentation today is to keep the members of the Board
apprised of the activities to date.

       In conclusion, President Roselle emphasized the importance of
retaining the best people, attracting the best students to the
institution, and providing adequate working conditions for the employees
of the institution. He stated that priorities must be shifted in order
to afford these initiatives but expressed his intent to protect the
academic programs fully.

       Professor Coleman stated that she was pleased with the
initiatives and felt it to be a very forward moving approach to the
budget situation.

       G.    Personnel Actions (PR 2)

       With President Roselle so recommending, on motion made by
Professor Driscoll, seconded by Mr. Stricker and carried, the routine
personnel actions in PR 2 were approved.  (See PR 2 at the end of the
Minutes.)

       H.    Amendment to the Governing Regulations (PR 3B)

       Following a brief explanation of the amendment by Dr. Paul Sears
and Professor Coleman, Professor Coleman moved, and Mr. Wilcoxson
seconded, that the proposed amendment to the Governing Regulations in PR
31R, which was received by the Board of Trustees at its March 1988
meeting, be approved.  The motion carried unanimously.  (See PR 3B at
the end of the Minutes.)