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will provide $1.7 million; an additional $43,700 will be taken from the
salary incentive reserves, a fund used to assist in recruitment and
retention of faculty; $2,750,100 million will be cut from planned
expenditures for various sectors; and the remaining $1 million will come
from a reduction in debt service payments. President Singletary emphasized
that this is a short-term plan to deal with the reduction in State
appropriation and that any significant adjustment, should these funds not
be restored, will be made in the 1987-88 Operating Budget. He added that
absorbing this reduction into the recurring support of the institution in
1987-88 will have a serious and visible impact on the salary levels of the
employees. He also told the Trustees that if additional reductions occur
in 1986-87 they can not be implemented without serious disruption in
programs. President Singletary then recommended approval of the proposal
for implementing the reduction in State support of the institution for
1986-87. Mr. Jones so moved. Mr. Hershey seconded the motion which
carried without dissent. (See PR 3A-3 at the end of the Minutes.)

       J.    Proposed Amendment to the Governing Regulations  (PR 3B-1)

       Professor Betts moved that the proposed amendment to the Governing
Regulations which was received by the Board for preliminary consideration
at its October 1986 meeting be approved. The motion was seconded by Mr.
Black and carried. (See PR 3B-1 at the end of the Minutes.)

       K.    Proposed Amendment to the Governing Regulations   (PR 3B-2)

       Mr. Clay moved that the proposed amendment to the Governing
Regulations be received for preliminary consideration and be included on
the agenda at the next regular meeting of the Board. The motion, seconded
by Mr. Jones, carried. (See PR 3B-2 at the end of the Minutes.)

       L.    Agreement Between the University of Kentucky and the
University of Kentucky Faculty Club, Inc. (PR 3C)

       President Singletary recommended that the Board of Trustees reserve
and dedicate the Hilary J. Boone Faculty Center for use by the University
of Kentucky Faculty Club, Inc. and authorize the Vice Chancellor for
Administration, Lexington Campus, to sign an agreement (attached to PR 3C)
between the University of Kentucky and the University of Kentucky Faculty
Club, Inc., which sets forth the obligations of the University and the
Faculty Club. Professor Wilson so moved. The motion was seconded by Mrs.
Hayes and unanimously carried. (See PR 3C at the end of the Minutes.)

       M.    1986-87 Budget Revisions  (PR 30)

       On motion made by Mr. Jones, seconded by Mr. Rose and carried, the
Board approved the revisions in the 1986-87 budget as recommended in PR
3D. (See PR 3D at the end of the Minutes.)

       N.    Candidates for Degrees--Lexington Campus and Medical Center
(PR 3E)

       Mr. Black moved that the President be authorized to confer upon each
individual whose name was listed in PR 3E the correct degree to which he or
she is entitled, upon certification by the Registrar and approval by the
University Senate that the individual has satisfactorily completed all
requirements for the degree for which application has been made. His
motion was seconded by Mr. Clay and unanimously carried. (See PR 3E at the
end of the Minutes.)