5.



          "The University has been able to give considerable
     help to the State-Wide Recreatior   Project without in-
     hibiting in any w:;ay the regular University pro-rari. In
     turn, the University has benefited by its sponsorship
     of this project in several ways.   One very appreciable
     benefit has been that resulting from employment oppor-
     tuni^Oies for our graduates.  There are several young
     men and young women graduates from the University of Ken.-
     tucky vrho are nowi employed as recreation directors at
     salaries ranging from 8125.00 to *S165.00 per month plus
     certain expense allowances.   Moreover, since the W.P.A.
     Recreation Project is state-wide, it has enabled the Uni-
     versity to build up a wholesome contact and appreciation
     in many communities and areas of the state, which in turn
     should be beneficial.

          "Wtith the emphasis being placed on training for
     leisure time pursuits plus the development of an adequate
     civilian morale, there is obviously a great need for a
     comprOhensive and adequate recreation program in most com-
     munities throughout the state.   By serving as state
     sponsor for the W7.P.A. Recreation program., the Universi-
     ty is assisting in this work with a minimum expenditure
     from its appropriated funds."


Budget for the Year 1941-42

     The setting up of the budget of the University of Kentucky for
educational Work as paid for from the General Fund of the Universi-
ty, has been difficult because of the uncertainties involved in the
future,   It seems essential that education shall be maintained as
the objective of first importance to the University.   Therefore,
particular consideration has been given to the requirements for
teaching.

     The income, as provided by appropriation by the State for the
coming year, has been fixed.   However, in the past year's budget
approximately one-fourth of the costs of operation under the Gen-
eral Fund has been received from student fees.   The student enroll-
ment for the present year., as translated into income according to
the Business Agent, is $23,000 less than the income represented in
the present budget.   I have estimated that the decrease in the
coming year will represent ten per cent, thus estimating the stu-
dent fees for the regular session at $257,500, and the student fees
from special sources at $95,598.

     The student fees and special income of the Summer Session
is estimated at $62,458.25, a decrease of about ^,3,500 from the
estimate of last year,   Certain other sources of income will prob-
ably decrease,   It has been necessary to set up a budget providing
for $67,000 less than the present year; this has been done by: