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       G.    Change in Organization Structure College of Business
and Economics (PR SB)

       President Wethington said that PR 5B is also a result of the
restructuring efforts. He recommended that the academic departments of
Decision Sciences and Information Systems, Finance, Management and
Marketing within the College of Business and Economics be merged into a
new School of Management. With the approval of this organizational
change, the College will consist of the School of Accountancy, the School
of Management, and the Department of Economics. This will reduce the
College from seven to three administrative units. He reported that the
recommendation comes from the Dean and the faculty of the College of
Business and Economics. Mr. Chellgren moved approval. His motion,
seconded by Mr. Hardymon, carried. (See PR SB at the end of the Minutes.)

       H.    Approval of the Development of a Children's Hospital (PR 6A)

       President Wethington reminded the Board that he had alerted them
dt the last meeting that the Hospital Board was going to be discussing
this item at their last meeting. He asked Dr. Bosomworth, Chancellor for
the Medical Center, and Dr. Meriwether, Chairperson of the Hospital
Board, to comment on PR 6A.

       Chancellor Bosomworth expressed pleasure in supporting the
recommendation that the Board of Trustees approve the Medical Center's
plan for development of a Children's Hospital. He reported that a study
of the health care needs of children of Central and Eastern Kentucky had
been completed, and there was strong support for the project. He
explained that there is space on the fourth floor of the hospital to
expand the pediatrics area.  This would be a two-phase project in which
the Children's Hospital would be constructed and existing pediatric space
then would be retrofitted to accommodate the program. In his opinion,
this is the most economical way to make a giant step forward in the care
of children.

       Dr. Meriwether praised the leadership at the Chandler Medical
Center. He said that Chancellor Bosomworth, Frank Butler and others have
done a fine job of devising an economical solution in times when
construction of new buildings is not the main interest of health care
planners. He said that this is a response to the needs both statewide
and nationally, and this recommendation will do it as economically as
possible.

       President Wethington said that he was pleased to recommend
approval of PR 6A. Mr. Sturgill moved aproval. His motion, seconded by
Mr. Wilcoxson, passed. (See PR 6A at the end of the Minutes.)

       I.   Acceptance of Interim Financial Report for the University of
Kentucky for the Seven Months Ended January 31. 1994 (FCR 1)

       Mr. Hardymon, Chairperson of the Finance Committee, reported that
the Finance Committee met at 11 a.m. (Lexington time) and reviewed the
eight items on the agenda. He said that FCR 1 is the monthly interim
financial report for the seven months that ended January 31, 1994. He
reviewed the realized income versus the expenditures and reported that
the individual items are on target with the plans. He recommended
approval of the report. Mr. Shoop seconded the motion, and it carried.
(See FCR 1 at the end of the Minutes.)