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            GENERAL OUTLINE OF 1964-65INTERNAL BUDGET

 The preparation of the University's internal budget is proceeding in three steps
 as previously outlined to the Executive Committee of the Board of Trustees.

 The first step presents a general summary of income and funds available for
 expenditure by sources and also a general summary of proposed expenditures
 by functions.

 The second step entails the allocation of funds, according to factors used in the
 budget request, to the departments, colleges and other units of the University
 for authorized expenditure by the objects of personal services, current expense,
 and equipment and replacement.  This step is nearing completion.

 The third step embodies the detailed personnel roster with individual salaries
 in the various departments and units of the University.  This step is running
 concurrently with the second step and the results of both will be presented to
 the Board of Trustees, according to schedule, at the May meeting.

                           University of Kentucky
                    Summary of Income and Funds Available
                      Fiscal Years 1963-64 and 1964-65

                                                                       Increase
                                     Estimated        Estimated          or
                                        1963-64         1964-65        Decrease
Income and Funds Available:

I. State Appropriations             $ 20, 356, 000  $ 26, 660, 200  $ 6, 304, 200

II. United States Appropriations       3, 565, 000      3,841,000       276; 000

III, Student Fees                      2,468,000        2,835,000       367,000

IV. County Appropriations                410,500          420,500        10,000

V. Gifts and Private Grants               725, 000        750, 000       25, 000

VI. Grant Overhead                       200,000          332,000       132,000

VII. Sales and Services                1, 154,200       1,255,000       100,800

VIII. Hospital Income                    938,000        2,000,000     1,062,000

IX. Endowment Income                       31,300          31,300

X. Fund Balances Used as Income( )        943, 000      1,200,000      257, 000
   Total Income arid Funds Available  $30, 791, 000  $39, 325, 000  $8, 534, 000
(1) Includes $432, 000.00 estimated General Fund Balances for the fiscal year ending
June 30, 1964, and the reappropriation of special reserves for the Summer Faculty
Research Program, other Instructional and Research expenditures and the provision
of a contingency appropriation.