7



the education of a veteran to the Federal Government and that the institution
would be reimbursed on the basis of the established cost of educating a vet-
eran.  The average cost over the period of the eight years this law has
been in operation has amounted to approximately $300. 00 per annum for each
veteran in attendance at our institution.  In other words, the University has
been reimbursed at the above rate for all of the veterans it has educated
under Public Law 346. The following table will indicate the amount of money
the University of Kentucky has received from the Federal Government for this
service.


                Year                             A mount

              1945-46                      $     8,053
              1946-47                          693, 130
              1947 -48                       1, 445, 39 2
              1948 49                          735, 536
              1949 -50                         524, 115
              19 50 -51                        474, 889
              1951 -52                         460, 179
              10952-53                          99, 21 1
              19 53 -54                         50,000 (estimate)


     It will be noted that the amount has varied from $8, 053 to $1, 445, 392.
Instead of spending all the money we received in any one year it was early de-
cided to spread this money out over as many years as possible, spending
$400, 000 to $500. 000 per annum instead of being rich one year and poor
another. I can assure you that the orderly policy we have followed in the ex-
penditure of these funds has been beneficial to the state and the taxpayers, and
has not resulted in reckless spending in a year when there were large sums
accruing to the University and finding ourselves in financial difficulties when
the amounts were tapering off as they have been in the last two or three years.
If this has not been sound financing, then I am open to criticism.  It is from
this source that we were able to build up a working capital for the University
which has resulted in a surplus year after year. I do not hesitate to predict
that if the University is not permitted to have a reasonable balance that it may
carry over from one year to the next it is in for hard sledding in the future.
All of the current unrestricted balance as of July 1, 1953, has been budgeted
for current operation of the University during the year 1953-54.

     The unrestricted balance as of June 30 is now appropriated and allocated
for the current year, and as of this date we have an unallocated surplus in the
unrestricted fund of $151, 000, which is too small for a safe operating balance
of an institution of the size of the University.  So much for the current unre-
stricted fund.

     The current restricted (trust) funds are those funds restricted for the
purpose for which they may be designated.  This fund on June 30, 1953,
amounted to $2, 094, 376. 03.  The Comptroller has a complete breakdown of
this fund under seven categories appearing on pages 24, 25, 26 and 27 of his
annual report.  A study of this report will reveal that much of this money
represents gifts that have accrued to the benefit of the University over a period
of many years, None of it has come from state appropriations which have been