7



         It has always been my judgment that one of the most
    important pieces of business for a Board of Trustees of
    a college or university is the consideration of the budget
    of the institution.  It therefore, trust that you will
    take the time today to go thru this budget and.become
    acquainted with how we propose that the funds of the
    University be expended in carrying on its work.



    C. Budget

    President Donovan submitted the Internal Budget for the year
1942-43 and asked Mr. Peterson to explain it in detail.  The
Trustees examined the Budget, department by departments and after
a lengthy discussion took the following action:




          2. It was moved and seconded that the Budgets
             as submitted, for the year 1942-43 be ac-
             cepted as a basis of maximum expenditures#
             and that inclusion of the name of any person
             in the budget shall not be considered as a
             contract of employment, and the Board of
             Trustees or the Executive Committee shall
             be authorized to make such changes in the
             budget as may, from time to times be deemed
             necessary or advisable.  A copy was ordered
             filed.
                       * * * * * * * * * *



     D. HonoraryNt Dearees,

     The President reported that the Graduate Faculty had decided
that, because this is the Sesqui-dentennial of the Commonwealth
of Kentucky and the 75th Commencement of the University, it would
recommend honorary degrees for a number of distinguished Ken-
tuckians*   He proposed the following list of names which had been
approved by the Faculty of the University and recommended to the
Board of Trustees for consideration: