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       K.    1991-92 Budget Revisions (Reduction in State Appropriations)
LECR LI

       President Wethington provided background information explaining the
budget cut and its impact on the University. He reviewed the
administration's plans for managing the cut and reminded the Board that a
hiring freeze on staff positions had been put in place at the University.
He said that the University's first priority, however, is to protect the
jobs and salaries of existing University employees. He noted that
University administrators will have flexibility in implementing reductions
in their areas.

       President Wethington stated that this is a serious budget cut but
assured the members of the Board that the educational mission of the
institution will be protected. He mentioned that classes for students for
the Spring semester would not be impacted by the budget cut. He added that
there would be adding and dropping of classes and changes in class
schedules as usual.

       He recommended that the proposed budget cut for 1991-92 and the
recurring cut for 1992-93 be approved and that the administration be
directed to put this budget cut in place after the framework is
established. Mr. Sturgill moved approval of the recommendation. His
motion, seconded by Mr. Burnett, carried. (See FCR 6 at the end of the
Minutes.)

       President Wethington noted that most states in the Union had to work
with a budget cut last year because of the economy. He said that the
administration will do the best job that it can to enable the institution
continue to function as an outstanding University. With the competitive
salaries that the University was able to attain over the past two years, it
is now in a more advantageous salary situation since budget troubles are
severely impacting other states. He said that the University has a unique
window of opportunity to bring in some faculty expertise that it has not
had in the past and may not have in the future.

       Professor Bratt stated that the faculty, like the President, does
not like the budget cut. She said that President Wethington had worked
with the faculty and explained the budget cut to them. The faculty is
supportive of the decision that this budget cut should be made to secure
and protect the primacy of the educational mission and to protect current
employees and their salaries. The faculty, therefore, support the budget
cut proposal.

       L.    Acceptance of Interim Financial Report for the University
of Kentucky for the Four Months Ended October 31, 1991 (FCR 1)

       Mr. Ockerman continued with the Finance Committee report and
recommended that the Board accept the interim financial report for the four
months ended October 31, 1991. Mr. Burnett moved approval. Mr. Wilcoxson
seconded the motion, and it carried. (See FCR 1 at the end of the Minutes.)