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    0.   Operating Budget for 1Q81-84 (PR 1E)

    In opening his budget presentation, President Singletary
observed that the new budget reflects the continuation of past
efforts to (a) improve and protect employee salaries, and (b)
fully implement the cuts in state appropriations that were
experienced in the 1980-81 and 1981-82 fiscal years.   He pointed
out that the budget includes a cost-of-living/merit pool
providing average salary increases of 6 percent for faculty and
staff members. President Singletary informed the Trustees that
if further state reductions do not occur, the University will be
able to begin to recover from the $23.2 million in budget losses.
However, he indicated that the State's revenues for 1983-84 are
still uncertain and that further budget cuts are a possibility.
If further cuts are necessary, they will be covered with funds
budgeted to address maintenance and equipment needs, deferred as
a result of previous cuts.

    Using a series of charts, President Singletary reviewed the
1980-82 State Appropriation to the University. He pointed out
that salaries for 1982-83 were about $467 lower than the median
of UK's benchmark institutions, a considerable improvement over
similar comparisons for 1979-80, when main campus salaries fell
$1,635 short of those at neighboring state-supported
institutions. In a similar comparison, 1982-83 salaries at the
13 community colleges were about $242 higher than the median of
their benchmark institutions.

    State appropriations amount to less than one-half of the
proposed budget. The remainder of UK's funding comes from
tuition and fees, federal and county appropriations, gifts and
grants, and income from sales and services, endowments,
investments, auxiliary services, the University Hospital, and
restricted funds.

    In his concluding remarks, President Singletary thanked three
members of his staff, Vice President Clapp, Mr. David Carter,and
Ms. Karen Combs, for "yeoman's service" in the preparation of the
Operating Budget.

    He then recommended that the Board adopt the Operating Budget
for 1983-84. Mr. Clay so moved. His motion was seconded by Mr.
Bell and passed with all present voting "aye." (See PR 3E at the
end of the Minutes.)

    P.   Interim Financial Report (FCR 1)

    Mr. Clay, Chairman of the Finance Committee, reported that
the committee had met on the morning of June 21, 1983 and
considered the six agenda items to be presented for action, the
first of which was the Interim Financial Report for the period
ended April 30, 1983. The committee found the University to be
"on target," and Mr. Clay moved that the report be accepted. His
motion, seconded by Mr. Black, passed and the report was
accepted. (See FCR 1 at the end of the Minutes.)