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       3.   A $2 million contract has been awarded to two
             researchers, Ram Murty and Anwar Hussain, in the College
             of Pharmacy by the National Institute on Drug Abuse.

       4.   The Hughes Display Products Corporation's new facility on
             the Coldstream Research Park campus was dedicated October
             10. This is the first building constructed on the campus.

       5.   During its first nine months of operation, 1,525
             children, representing 16 public schools, were examined
             in the UK College of Dentistry Mobile Dental Facility.

       6.   Homecoming offers a weekend of activities on the
             University's Lexington Campus November 1-3.

       7.   The UK Office of Minority Affairs will celebrate its 20th
             anniversary during Homecoming with the inauguration of
             the new Lyman T. Johnson Alumni Association, an affiliate
             of the UK Alumni Association.

       8.    Of 625 graduates of the Community College System
             Associate Degree Nursing Program, 583 wrote the National
             Council Licensure Examination as first-time writers in
             July 1991. This represents 94% of the graduates and is
             an excellent performance.

       President Wethington asked that the members peruse the other
items in the report at their leisure.

       D.    Budget Reduction

       President Wethington stated that the Governor had announced a
revised revenue estimate for 1991-92 adjusting the state's revenue
downward by $155 million. Of that total, $85 million has been
allocated to the various agencies and entities of state government
with the exception of elementary and secondary education. The
remainder of the budget cut will come from existing resources within
the executive branch.

       He reported that $31.6 million of the $85 million has been
allocated to higher education, and the various colleges and
universities, including the community colleges, will share in the
cut. This represents approximately 5% of the state appropriation for
colleges and universities, excluding debt service and the hospital
contract with the University of Louisville. The University will take
its share of the cut during the present fiscal year 1991-92 on a
non-recurring basis and will build it into the budget on a recurring
basis beginning July 1, 1992.

       President Wethington said that this is a serious budget cut and
reviewed the steps being taken to manage it, noting an immediate
hiring freeze for non-faculty positions. A budget reduction plan for
the University will be presented to the Board at its December meeting,
following the state Council on Higher Education's November 4 meeting.