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University was notified and addresses were made in the House by
Doctor Powell of Louisville, Noel Gaines of Frankfort, and myself,
in addition to numerous comments from the floor. On final vote
in the House the bill was defeated by a vote of 42 to 41.

     "(g) rThe Budget Bill.  The'University's items in the budget
bill provided for the usual 1 3/4 cent tax, and in addition $30,000
for agricultural teaching, which we have been receiving for the
past two years, $25,000 for repairs and maintenance, $18,000 for
the Public Service Laboratories, which we have been receiving from
the State Board of Health, $142,000 for agricultural extension work
to match federal funds, and the usual $50,000 appropriation for the
work of the'Experiment Station. An amendment was offered increas-
ing the $25,000 annually to $100,000 annually for buildings, and
adding $45,000 annually for two years to pay the University debt.
The amendments were passed, and vetoed by the Governor, resulting
not only in the loss of the items, but the additional $25,000 a
year allowed originally by the Budget Commission for repairs and
maintenance. In view of the decline in State tax returns this re-
duces the University to practically the income of three years ago.

                         II. Attendance

     "During the first semester 1,459 students were registered.
Dutiat the second saiehter 101 students were added, making a total
in regular session for the year of 1,560.   There were registered
last year 494 summer session students, 87 in the Model High School,
14 short course students in agriculture, 64 in Practical Mining,
and 11 in the course for nurses, a total enrollment for the year
of 2,561 students, and an increase of 372 in regular session over
the enrollment for la.st year.

                     III. Attendance Next Year

      "At the present rate of increase, we shall have some 1,800 or
2,000 students in regular session next year -- more than we can
care for with present facilities.   I am of the: opinion that we
should limit the attendance next year to about 1,500 students.
The addition of 100 students in the freshman class requires the
addition of about 3 14.L instructors.  We attempt to hold our
language sections down to 30, but many of our language sections
have now reaohed 40.   There is, too, the question of size of reci-
tation rooms, which are limited in the number they will hold.    We
are faced with the double difficulty of lack of funds to increase
the staff and lack of adequate space in which to conduct classes.

                     IV. Budget for Next Year.

      "financially, our outlook is gloomy for the next two years.
 We are facing the possibility of decreased income for next year,
 The State Tax Commission estimates a falling off of about $100,000,000
 in the assessed valuation of the State for next year, and this will