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tion to become more nearly competitive with its benchmark
institutions although it is still behind most of them.  Any
further erosion in funding which might occur as a result of actions
taken during the Special Session would have serious consequences
for the University o.f Kentucky.

     Mr. Sturgill concurred in President Singletary's assessment
of the situation and said that members of the Board, who had worked
with President Singletary in getting a viable budget for the
current biennium, were deeply concerned and felt that it was
appropriate to inform the Governor, Lieutenant Governor, the
President Pro Tempore of the Senate, and the Speaker of the House
of Representatives,as well as certain other key legislators, of
this concern. To this end a Resolution had been prepared and the
secretary was asked to read it (see copy of the Resolution at the
end of the Minutes).

     Various members of the Board joined President Singletary and
Mr. Sturgill in expressing concern over any reduction in the
University's budget allocation and, on motion duly made, seconded,
and carried the Resolution was adopted and copies ordered sent
to all persons mentioned in the Resolution as well as to those
whose names had been suggested by various members of the Board.
(Copy of Resolution and List of Names to whom it was sent are
included at the end of the Minutes.)


     P.  Interim Financial Report (FCR 1)

     Mr. Griffin, reporting for Mr. Clay, Chairman of the Finance
Committee, moved that the Financial Report for the period ending
October 31, 1978 be accepted. His motion was seconded and passed
without dissent. (See FCR 1 at the end of the Minutes.)


     Q. Delegation of Authorization Relative to Property Acquisition
         (FCR 2)

     The Finance Committee recommending, Mr. Griffin moved approval
of FCR 2 authorizing the President to provide for the acquisition
of parcels of real property, within the land use plan approved by
the Board of Trustees, which do not exceed an estimated value
of $100,000 provided funds are available and budgeted for such
acquisition. Mr. Griffin's motion was seconded by Mr. Tichenor
and passed. (See FCR 2 at the end of the Minutes.)


     R. University Investments and South Africa (FCR 3)

     Mr. Griffin reported that the Finance Committee, at its meeting
on the morning of December 12, had discussed the policy statement
in FCR 3 with regard to the University's investments in companies
with holdings in South Africa, and had recommended its approval.
He moved adoption of the policy by the Board; the motion was seconded
by Mr. Black and passed without dissent. (See FCR 3 at the end of
the Minutes.)