6.



and advertising for bids will be published about the mid-
dle of this month.

     The final building is to be the West Wing of the En-
gineering group.   It is hoped that it can be built this
summer.   It will be in size and appearance quite similar
to the South Wing.

     One of the problems which will face the University
and the Board of Trustees will be to provide necessary
equipment for these buildings.   Some thought will have
to be given to furnishing them, and the legislature
meeting in 1938 should be asked to take care of the equip-
ment.


THE BUDGET

     The budget for the year 1937-38 is about the same as
the budget of last year, due to the fact that incomes
from the State and Federal Government are the same as
they were in the previous period.    Some additional funds
from students are expected, as well as a somewhat larger
return from dormitories, commons and cafeteria.    These
bring the total of General Fund income to the sum of
81,315,296.50.  Of this amount the Federal Government
provides 7-1%; the State, 54%; student -fees, 25-L%; dormi-
tories, 12% and miscellaneous, 1%.    The expenditures
as set up will amount to 81,300,000.00, leaving a balance
of about $15,000.00.   In arranging this budget provision
has been made to cover the commitments for buildings,
which amount to 866,382.40 anmually.    With certain re-
serves the commitments from the General Fund covering
these figures will reduce the charge against General
Fund to $48,632.40.

     It has been difficult to bring expenditures within
the income of the University, but with the assistance
and cooperation of all concerned it has been done.
It should be said, however, that the University cannot
go on making progress on the basis of the present
budget.   It will be necessary to increase it consid-
erably if the University is to meet thie increasing de-
mands.   A full understanding on the part of the Board
of Trustees will assist in getting this miessage to the
people.