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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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