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       He said the following Strategic Plan priorities guided the budget process, and the
dollars available will carry out the goals of the Strategic Plan:

*  Strengthen the University as a student-centered university committed to quality
   undergraduate, graduate and professional education - with special emphasis on
   undergraduate instruction.
*  Maximize access to higher education (CCS).
*  Improve our standing among the nation's leading research universities.
*  Competitive salaries and benefits for University faculty and staff.
*  Commitment to equity and diversity.
*  Forefront of information technology.
*  Unique leadership role through public service, economic development and "outreach"
   initiatives.
*  Maintain equipment and physical plant.

       President Wethington reviewed the resources the University has to deal with
excluding the $1.4 million. From the state, there is $4.9 million for the University System
and $1.4 million for CCS. There was an equity increase of $3.1 million for the CCS and
none for the University System. The equity increase brought additional money to those
institutions that were farthest behind full formula funding. Since the community colleges
were farthest behind, they received funding but the University System did not. He
reported that $1 million was available for the University System and $300,000 for the
CCS if the performance goals were met. The goals were met, and that money is now
available.

       He said that there was a special appropriation primarily for the maintenance and
operation of new facilities including $100,000 for debt service adjustment. Tuition
increased the University System budget by $300,000, primarily by the PharmD program.
The tuition rate increase of $2.2 million and $500,000 in the CCS is a very nominal
percentage increase for undergraduate students. Increases of 2.6% in the University
System and 2% in the CCS are reflected in those figures. These amounts are not as large
as they could have been since both the CCS and the University System showed some
decline in tuition revenue in 1996-97.

       Through a series of charts, President Wethington reviewed the following topics
and elaborated on each of them:

       Uses (State Support and Tuition)
       Special State Appropriations
       Fixed Costs
       Salaries/Benefits
       Faculty Salaries