Brains" program, it should be possible. That will give the university $5 million of
additional money for cancer research.

       $500,000 has been allotted to establish the Louie B. Nunn Oral History program
in the current fiscal year. These funds are eligible for the "Bucks for Brains" match. The
oral history program is quite an asset to the university.

       The university was provided $40 million of state bonds to begin the
Biological/Pharmaceutical Complex. It is basically a $120 million project.

       President Todd recognized Dr. Deneese Jones in the audience and apologized for
not seeing her earlier. He asked the Board to give Dr. Jones a round of applause for her
promotion.

       He then continued with his summary of the budget, noting that the administration
pushed hard to get the full $40 million in state-supported bonds because the Council on
Postsecondary Education (CPE) had a policy that requires the university to pay 40
percent of the cost of research building. There is no participation requirement with the
other state institutions except for the University of Louisville. At a time when UK is
trying to catch up with others in the research capacity, he said that he does not agree with
the council's policy. He pointed out that this $40 million will not generate any income.
It will either be a shell or a platform. It will help get the infrastructure. The other $80
million will have to be considered in the 2006-08 budget.

       President Todd mentioned that the university has 938 applications for the College
of Pharmacy while it has only 100 positions to fill. Kentucky students represent 90
percent of those applications. The state is short 400 pharmacists at the present time. The
university needs the Pharmaceutical Complex building.

       The university received $8.5 million of state bonds for the Animal Diagnostic
Center. He pointed out that the university is not accredited in this area, but this will help
the university get accredited. This is the first part of the $25 million total replacement
project. The Gluck Equine Research Board of Directors and the thoroughbred industry as
well as the equine industry in general are very pleased with this outcome.

       The university received a total project scope of $200 million for the patient care
facility, including $100 million worth of authority to issue bonds. The hospital will
spend $ 100 million of its own money. Every one from the Governor to the head of
appropriations in both the House and the Senate are very committed to this project and
should authorize the rest of the needed money to the university in 2006-08. This gets the
university going on a very major project, the biggest project in the university's history.

       The university received $24 million worth of bonding authority for the Student
Health Facility, and that is very important as part of the process of trying to change the
whole medical complex.