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D.      President's Report to the Trustees (PR 1)
President Todd began his report by commenting about the 2008 session of the Kentucky General Assembly. He reported that the university's base budget was reduced by $20 million in 2008-09 and $17 million in 2009-10. He said that he thought it was significant that higher education was discussed to the very last minute of the conference committee meeting. They were looking for ways to find resources to help reduce the cut that was proposed. He said that he was very pleased with the attention the committee gave the university and talked about the following highlights of the session:
• The budget funds the Robinson Scholars program with $1 million from coal severance money. Robert Stivers and Rocky Adkins were very helpful in getting that money for the university. Over $1 million of the university's proceeds were put into the Robinson Scholars program last year. It was not possible to do that again this year. It is important to protect the university's quasi-endowment.
• The Mining Engineering program received $300,000 a year from coal severance tax revenues for mining scholarships. Several years ago the number of freshmen in Mining Engineering was small. There was a record amount last year. He noted that the mining companies have created some scholarships and also helped buy digital microscopes for the elementary schools in that area.
• The university received $250,000 in each year from the tobacco settlement to fund the College of Agriculture's viticulture efforts.
• The Center for Applied Energy Research received $1 million in each year. That money will be very useful because the center has not had a budget increase for a long time.
• The university received one of only two state-funded university capital projects in the entire budget when they provided $20 million in state bond funds to finish the Livestock Disease Diagnostic Laboratory at Coldstream. This was a tremendous effort. The university received a lot of help from several legislators as well as the thoroughbred industry in getting this approved. These funds will help the university take care of some issues at the facility and have a first-class diagnostic laboratory.
• The university received agency bond approval for three projects on campus: Blazer Hall cafeteria, Student Center food court, and a sanitary sewer expansion and utility expansion.
• The 4-H program, which is administered on campus, received $2 million in state bond funds to renovate the camps. This was not requested by the university; however, it does help.