Office of the President
                                                 December 13, 1994





                REPORT ON UTILIZATION OF THE GENERAL FUND
                     SURPLUS EXPENDITURE PLAN FUNDS

The utilization of the General Fund Surplus Expenditure Plan funds as
approved by the President for expenditure during 1994-95 is as follows:

University System
   1. Classroom and Instructional Lab Renovations            $1,170,000*
   2. Deferred Maintenance and Life Safety Projects             497,000
   3. Academic and Administrative Computing
      Systems Upgrade                                           433,500
   4. Merit Scholarships                                         86,000
   5. Agriculture Research - Animal Sciences                     94.000
                                                             $2,280,500

*In addition, $500,000 has been allocated from the President's
instructional equipment fund as approved in the 1994-95 Operating
Budget for equipment for these classrooms and instructional labs.

Community Collece System
   1. Instructional Equipment                                $ 398,200
   2. Match for National Sciences Foundation (NSF)
      Math Grant                                                225.000
                                                              $  623,200

Backaround: The Board of Trustees approved the University's 1994-95
Operating Budget on June 18, 1994. At that time, an operating budget
addendum was also approved for the General Fund Surplus Expenditure Plan
funds of $2,280,500 for University Systera general operations, $623,200
for Community College System general operations, and $1,500,000 for the
restoration of fifty county extension agent positions as included in the
General Assembly's enacted budget. The addendum also noted that during
1994-95 the $2,280,500 within the University System and the $623,200
within the Community College System would be utilized for critical one-
time programmatic and capital needs of the University. The funds would
subsequently be included in the proposed 1995-96 Operating Budget
submitted for approval by the Board of Trustees and would be utilized
for high priority needs for the University as established in the
University Strategic Plan. The President indicated to the Board that he
would report back to the Board on the planned use of the funds for 1994-
95 once the funds were allotted by the State. In August, the University
was notified by the Governor's Office for Policy and Management that the
Secretary of the Finance and Administration Cabinet had certified that
these funds would be allotted in 1994-95. At that time, the President
requested the chancellors and vice presidents to identify their high
priority needs for the use of these funds. The above plan represents
the allocation of the funds based upon those identified priorities.