xt7fqz22cc78 https://exploreuk.uky.edu/dips/xt7fqz22cc78/data/mets.xml Lexington, Kentucky University of Kentucky 19940618 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1994-06-jun18-ec. text Minutes of the University of Kentucky Board of Trustees, 1994-06-jun18-ec. 1994 2011 true xt7fqz22cc78 section xt7fqz22cc78 








       Minutes of the Meeting of the Executive Committee of the Board of
Trustees of the University of Kentucky Saturday, June 18, 1994.

       The Executive Committee of the Board of Trustees of the University of
Kentucky met at 11:00 a.m. (Lexington time) on Saturday, June 18, 1994 in the
Board Room on the 18th floor of Patterson Office Tower.

       A.    Meeting Opened

       Governor Edward T. Breathitt, Chairperson, called the meeting to order
at 11:00 a.m., and the invocation was pronounced by Mr. William B. Sturgill.

       B.   Roll Call

       The following members of the Executive Committee of the Board of
Trustees answered the call of the roll: Governor Edward T. Breathitt,
(Chairperson), Mr. James F. Hardymon, Dr. Robert P. Meriwether, Mr. William
B. Sturgill, Mrs. Lois C. Weinberg, and Mr. Billy B. Wilcoxson. Trustee Loys
Mather was also in attendance. The University administration was represented
by President Charles T. Wethington, Jr.; Chancellors Peter P. Bosomworth, Ben
W. Carr, Jr., and Robert E. Hemenway; Vice Presidents Joseph T. Burch, Edward
A. Carter, Donald B. Clapp, Delwood Collins and Eugene Williams; Dr. Juanita
Fleming, Special Assistant for Academic Affairs, and Mr. Paul Van Booven,
Associate General Counsel.

       Members of the general public and the news media were also in
attendance. A quorum being present, Governor Breathitt declared the meeting
officially open for the conduct of business at 11:02 a.m.

       Governor Breathitt thanked the members of the Executive Committee for
making a special effort to be at the meeting. He asked President Wethington
to begin with his report.

       President Wethington also expressed appreciation to the members of the
Executive Committee and Loys Mather for attending the meeting. He noted that
the purpose of the special called Executive Committee meeting was to
establish the Operating Budget for the University for 1994-95.

       C.    Credit Card Update

       President Wethington reminded the members of his commitment at the
last Board meeting to present more information at the Executive Committee
meeting about the administration's decision to discontinue the use of credit
cards for tuition and housing and dining purposes. He said that Dr. Don
Clapp would make a presentation and that Mr. Ken Walker, who was representing
Mr. Lance Dowdy, would also make some comments.

       Through a series of slides, Dr. Clapp provided a brief chronology of
the credit card history, beginning with the acceptance of credit cards in
1988. He presented data showing the cost to the University of using credit
cards as a payment medium. He explained that with the rapidly escalating
rate of use and bank fees it was no longer feasible for the University to
continue the use of credit cards for tuition payment.




 





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       Dr. Clapp reminded the members of the financial assistance provided by
the University to students in the form of scholarships, grants and loans.
That figure in 1992-93 was in excess of $80 million dollars. He pointed out
three payment options for students: check, cash and credit card cash
advance. He explained that the credit card cash advance would not be
processed through the University, and the students would have their same
credit limit.

       Governor Breathitt entertained questions from the Executive Committee
and then introduced Mr. Ken Walker, who is a graduate of the College of Law
and is now with Bank One.

       Mr. Walker mentioned his qualifications for representing Mr. Dowdy and
the students of the University. He presented his argument in defense of
students being allowed to use credit cards for tuition payment and said that,
in his opinion, it was merely shifting the burden to the students and
parents. He asked the members of the Executive Committee to balance the many
interests of the academic side, the student side and the parent side and not
be a rubber stamp for the proposals made by the administration. He urged the
members to keep the credit card payment system to help the students and
parents.

       President Wethington stated that this was one of the tough decisions
made during the last year by the administration. He stated that
discontinuance of credit card payment was a financial decision that was
necessary and warranted.

       Mrs. Weinberg asked if it would be possible to have the Board analyze
the University's policy for student services and fees. She also suggested
looking into the installment payment plan to determine if it could be done
without incurring any additional expense for the University.

       President Wethington pointed out that any mandatory fee that is levied
on all students comes to the Board for approval. He said that he would be
pleased to present a complete report on all facets of fees charged to
students, both mandatory and non-mandatory in the institution.

       Several Board members expressed displeasure in Mr. Walker's reference
to the Board as a rubber stamp for the administration.

       Governor Breathitt said that he had real confidence in the
administration. He stated that in the time of tight money he wants the
administration to set priorities and an agenda for the University. He said
that, in his opinion, the credit card decision was in the students'
interest. He said that the University of Kentucky is one of the best
bargains for students in the country, and the administration has to act
zealously to protect the University's fiscal position to keep it a bargain.

       Mrs. Weinberg commented that her suggestion was to look at the whole
student services and student fees issue.




 




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       Mr. Sturgill said the University and the Board should have some real
comfort in President Wethington's administration. He expressed pleasure with
President Wethington's accomplishments and the things that he has put in
place.

       President Wethington thanked Mr. Sturgill and the members of the Board
for their strong endorsement.

       D.   Operating Budget for 1994-95 (PR 3A)

       President Wethington said that the budget was developed under the
assumption that the general operating appropriation to the University would
be the Governor's proposal, which was a 2% operating increase for the
University System and a 3% operating increase for the Community College
System. He noted that the Strategic Plan priorities guided the budget
decision process.

       Using a series of slides, President Wethington reviewed and elaborated
on available resources (state and tuition revenue increases), and proposed
uses including fixed costs, salaries/benefits/operating expenses, and program
improvement. He also reviewed the other sources of income, the capital
budget, and the affiliate budgets.

       He also expressed his concern about the continued decreases in state
support as a share of the budget coupled with an increasing reliance on
tuition. In summary, he said that this is a good budget given the funding
constraints. He noted that the members of the Board and the media had been
given an opportunity to review the budget and ask questions. He said that
this Executive Committee meeting was necessary in order for the University to
have an Operating Budget beginning July 1, 1994. He recommended approval of
PR 3.

       Mr. Wilcoxson moved that the budget as recommended be adopted and that
the Chairman of the Board be authorized to execute contracts with the
administrative officers providing for the terms and conditions of their
employment. Mr. Hardymon seconded the motion and it carried. (See PR 3A at
the end of the Minutes.)

       E.   Meeting Adjourned

       There being no further business to come before the Board, the
Chairperson adjourned the meeting at 12:35 p.m.

                                       Respectfully submitted,



                                       Lois C. Weinberg
                                       Secretary
                                       Board of Trustees

(PR 3A which follows is an official part of the Minutes of the meeting.)



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                                                Office of the President
                                                June 18, 1994



                                                PR 3/9



Members, Board of Trustees:
                   OPERATING BUIDGET FOR 1994-95

Recommendation: that the 1994-95 Operating Budget as submitted and revised
per the attached budget addendum including the authorization set forth in the
letter of transmittal, be approved and ordered recorded as an integral part of the
University's financial system with the necessary fiscal control being exercised
for the collection and appropriation of income and for the expenditure of
departmental appropriations in accordance with authorized fiscal policies and
procedures and accepted as a basis of maximum expenditures for the year
1994-95.

Background: The 1994-95 Operating Budget of the University of Kentucky is
presented for approval by the Board of Trustees. Copies of the budget
document have been made available to the members of the Board.



Action taken:  Approved    L    _Disapproved           Other
Date: June 18, 1994




 









1994-95 Operating Budget Addendum



General Fund Surplus Expenditure Plan

            University System

                  General                        $2,280,500
                  Restoration of county     $1,500,000
                     extension agent positions


            Community College System

                  General                        $623,200



      The General Assembly's enacted budget includes within the General
Fund Surplus Expenditure Plan $2,280,500 for University System general
operations, $623,200 for the Community College System general operations,
and $1,500,000 for the restoration of fifty county extension agent positions.
These funds are to be allocated based upon the General Fund Surplus Plan
provisions. Contingent upon that allocation, the $1,500,000 will be utilized for
the restoration of the county extension agent positions. During 1994-95, the
$2,280,500 within the University System and the $623,200 within the
Community College System will be utilized for critical one-time programmatic
and capital needs of the University. These funds will be included in the
proposed 1995-96 Operating Budget submitted for approval by the Board of
Trustees and will be utilized for high priority needs for the University as
established in the University Strategic Plan.