3.



     Practically no expansion of funds has been made in the
budget for the coming year.   A few changes in minor salaries
have been made, but nothing further has been done in adding to
other salaries due to the necessity of balancing the budget.

     Members of the Board of Trustees are familiar with the
building program that has been carried on during the past three
years.   The construction provided for in the first issue of bonds
has been completed and the buildings occupied.   They will recall
that this program included a Law School building, a heating plant
and underground connections, the erection of two new Engineering
College buildings and the remodeling and enlargement of a third,
the construction of a Student Union building and an addition to
the Experiment Station building.   The second bond issue nrovided
for further construction in the erection of a biological sciences
building, a new residence hall for women and a home economics
building. The residence hall for women is rapidly approaching
completion and the second part of the biological sciences building
is under construction at the present time.   The rise in prices
in materials and labor has delayed the placing of contracts for
the home economics building.   Efforts are being made to secure
additional funds from the PWA in order to construct a building
on the original plans.

     For many years there has been considerable agitation through-
out the State and at the University itself for the construction
c a field house in which basketball and other activities may be
housed.   Suggestions appearing in the newspapers and in the con-
versation of many people call for a very large building for the
different activities which are to be given a place in the new
structure.   To do all of that is impossible.   More recently
Governor Chandler has stated that he would be willing to provide
850,000 from his contingent fund and from other sources it may
be possible to raise fifteen to twenty thouBand dollars.    The
best that might be done would be to set up a project under the
provisions of the WPA, the WPA furnishing the labor, the University
the materials, for a building 150 feet by 300 feet at an approx-
imate cost of 8200,000.   Furnishing the building would cost
from $30,000 to $40,000 more.   In all this discussion there is
one point that I have insisted upon, and that is that the Uni-
versity cannot and must not go in debt for this building.    I si
sure that the Board of Trustees would welcome this construction
if amounts could be found without increasing the indebtedness of
the University.   In saying this, I do not wish to be regarded as
unsympathetic toward the project.   I am, in fact, glad if we
can have it, but this is a fundamental consideration in any pro-
posal that might be made regarding the now structure.