- 6 -



Strategic Plan which has been utilized in the operation of the University of Kentucky for
the past five years. He stated he was very pleased with the 1993-98 Plan and invited the
members of the Board to review the report since it addresses the successes achieved
during the last five years in accomplishing the goals approved by the Board of Trustees.

       President Wethington noted that most of the Strategic Indicators have been
accomplished entirely, and significant progress has been made on those that were not
accomplished. In the instances in which the Strategic Indicators were not achieved,
sufficient state appropriations contributed to the lack of success.

       He said that the last Five-Year Plan had been invaluable to the University. It is
absolutely essential to have a Plan approved by the Board in order to be able to explain to
the public that the University has charted its direction. He said that the new legislation in
House Bill I will be one of the key factors in planning the next five years. He noted that
the Education Reform Act was factored in when the priorities were considered for the
years 1998 to 2003.

       President Wethington explained that the process began in September 1997.
Between September 1997 and January 1998 a team of faculty, staff, and students headed
by Joan McCauley, Planning and Budget Office, began a review of the old Plan and
looked at ways the new Plan ought to be revised. There was a Board of Trustees
discussion in November 1997 to get Board members' input into the Plan. In February
1998, the President, Chancellors and Vice Presidents reviewed a draft of the Plan. The
draft Plan was then sent out to the entire university community. A copy was sent to the
library, and it could also be accessed by electronic communication. There was also a
session with Board members about the draft Plan. With the Board's approval, the new
Plan for the years 1998-2003 will be published.

       President Wethington reiterated the importance of the Plan. The Plan becomes the
framework by which decisions are made about the allocation of resources. It is used to
determine priorities for the use of financial and fiscal resources in order to show
improvement in the institution.

       President Wethington then reviewed the strategic planning issues.

       Research and Graduate Education
       These were issues discussed with the Board in a previous planning session and
considered when working on the Plan. Research and graduate education had to be a
priority given the fact that the University of Kentucky is a research university (a
Carnegie I research institution). Research and graduate education have been a priority for
the institution for several years but that priority has been enhanced by House Bill 1.
Therefore, research and graduate education had to be a top priority of the Plan.