from the lowest. Tuition has increased in the past l0 years, but other schools, for example, have
increased their fees by almost double while Kentucky fees have risen 70 percent. He agreed that
to keep good faculty, you must pay them competitively. He mentioned that the "Bucks for
Brains legislation did not match scholarship money raised by either the University of Kentucky
or the University of Louisville, although this match was made for all other upper-level Kentucky
institutions. He affinned that President Todds push for scholarship funds was an important
strategy that must be continued.
Dr. Peek wanted to be sure that a differentiation was made between the tuition increase
and salary increases for faculty and staff UK has had steady tuition increases in the past years,
but no increases in salaries. He guessed that the tuition increase would have been proposed at
the same level whether or not any increases in salary were proposed. He also agreed with Mr.
Gatton and Mr. Stuckert that we are losing top faculty. And he felt Mr. Roberts comment that
the system may be broken was excellent, there is a continuing problem that points towards
changing the system.
Dr. Sachatello suggested it was time to vote on the question. Dr. Brockman allowed
President Todd to comment. President Todd encouraged the board to approve FCR 4 by
clarifying some fine points and explaining some motivation for specifics ofthe proposal. One of
President Todds major concems is that although the 3 percent raise proposed for this year is not
large, he felt it is very important to offer a raise. "One of my concems is that private
universities endowments are going to come back a lot faster than state budgets are going to
come back. And the private university is going to be picking the state universities clean [of their
best faculty]. He emphasized that he was sympathetic with the issues raised by the board, but
he stressed the importance of passing FCR 4. "Weve got to pay our expenses. Weve got to
keep the place moving on the train that weve got it on.
Dr. Brockman asked for the board to vote and requested a show of hands. Twelve board
members supported the passage of FCR 4. Ms. Brown, Mr. Dawson, Ms. May, Mr. Roberts, Dr.
Sachatello, and Mr. Smith voted against it. Dr. Brockman announced that FCR 4 passed. (See
FCR 4 at the end ofthe Minutes.)
Mr. Gatton commented on the economics of inflation and the increase in costs of a
Mr. Shoop had a comment and a question about some accounting issues in the allocation
of revenues and expenses. He asked for clarification that the university has a General Fund
account that pays all ofthe universitys expenses, and tuition dollars do not necessarily pay for
faculty and staff salaries. Ms. Martin concurred that the university is on a fund accounting
system, and the General Fund receives revenue for various sources which pays all of the
universitys expenses. Tuition is not designated to pay salaries.
S. Proposed 20ll-l2 Room and Board Rates (FCR 5)
Mr. Stuckert continued the Finance Committee report, summarizing the reasons for an
increase of 9 percent in the room and board rates in UK housing the Boards previous approval