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       Program Improvements in the Community College System
       Cost Accounting Standards for Educational Institutions (CAS)
       Other Income Changes and Uses
       Student Fees
       Gifts and Grants
       Sales and Services
       Fund Balances and Investment Income
       Capital Budget Summary
       Operating Budget by sources of Support
       Share of Budget (Original)
       Operating Budget by Program and Category of Expenditure
       1995-96 State and Local Appropriation Per FTE-University System
       1995-96 State and Local Appropriation Per FTE-Community College System

       Following his presentation, President Wethington recommended that the Board
approve the 1997-98 Operating Budget. Mr. Wilcoxson moved that the budget as
recommended be adopted and that the Chairperson of the Board be authorized to execute
the contracts with the administrative officers providing for the terms and conditions of
their employment. Mr. Shoop seconded the motion, and it passed. (See FCR 7 at the
end of the Minutes.)

      President Wethington thanked Ed Carter, Joan McCauley and the staff, who
played a major part in putting the budget document together, for their good work, and
they were given a round of applause.

      I.    Personnel Actions (PR 2)

      President Wcthington recommended that approval be given to the appointments,
actions and/or other staff changes which require Board action; and that the report relative
to appointments and/or changes already approved by the administration be accepted.
Professor Mather moved approval. The motion, seconded by Mr. Chellgren, carried.
(See PR 2 at the end of the Minutes.)

      President Wethington called attention to the retirement of Mr. Bernie
Vonderheide, Director of Public Relations, after 23 years of consecutive service to the
University. He thanked Mr. Vonderheidc for his good years of service, dedication, and
support of the University of Kentucky. He asked Mr. Vonderheide to stand and be
recognized, following which he received a round ofapplause. He noted that Mr.
Vonderheide will continue to be associated with the University on a part-time basis by
assisting with the half-time shows of the football and basketball games.

      President Wcthington recognized Professor Jim Applegate, Department of
Communications, as the new Chairperson of the Senate Council for 1997-98. He said that