3 -



       UK supports pharmaceutical development through an initiative with the private sector. A
       $3 million grant of New Economy money from the state to the UK Research Foundation
       makes it possible to do research that has tremendous economic potential. UK researchers
       will work with Large Scale Biology Corporation, a company that makes pharmaceuticals
       out of tobacco leaves. It is located in Owensboro, Kentucky. This grant received some
       news coverage, including an editorial in the Owensboro newspaper. Governor Ernie
       Fletcher worked closely with UK in acquiring the grant.

       UK's research awards are up 15.5 percent. At a time when federal grant dollars are not
       booming, this is a tremendous compliment to the effort of the faculty and staff who write
       the proposals and do the work. UK is presently at $155 million in funding, and the total
       was $238 million last year.

       D.    Enrollment Growth Report

       President Todd asked Provost Mike Nietzel to give the Enrollment Growth Report.

       Provost Nietzel said that the Enrollment Growth Report is a first attempt for the
University to study the effects of four years of enrollment growth. The study is exclusively
concerned with undergraduate growth, and it looks at it primarily from a student point of view
regarding its impact on student satisfaction and on student outcomes. It is very similar to the
report given at the November 2004 Academic Affairs Committee meeting; however, an
additional semester of data have been added since that time. The report on enrollment growth is
identical to a presentation made in December 2004 to the University Senate, and a number of
elements in the report were the subject matter for recent article in the press.

       Provost Nietzel said that the overall context for the report is a review of undergraduate
growth from 2001 through 2004. He presented a PowerPoint presentation and elaborated on
each item in the report. (See PowerPoint presentation at the end of the Minutes.)

       Following the PowerPoint presentation, Provost Nietzel concluded his report by giving
his interpretation of the it. He said that the faculty has done a very good job of responding to the
enrollment increase that the university has sustained across the four-year period by being
innovative and by being very enthusiastic about how they encounter and how they instruct
students. As the quality of entering classes has improved, which it has with this enrollment
growth, the university has been able to add students largely at the top end of the academic
distribution, and this has helped the university manage the increase more successfully. These are
good students to educate, and they probably make it easier in some ways for the faculty to
deliver high-quality education. They may facilitate their own success in achieving at good rates.

       He emphasized that the university is probably at a point where the recent growth cannot
be sustained. He said, in his opinion, the university can enroll future first-year classes of no
more than 3,800 or so. There will be one more class that graduates at the 3,000 level. But after
that the university has probably reached something like a saturation point, with the current
faculty and staff that it has, to handle that magnitude of entering class.