xt7z610vr36g https://exploreuk.uky.edu/dips/xt7z610vr36g/data/mets.xml Lexington, Kentucky University of Kentucky 19900519 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1990-05-jun19. text Minutes of the University of Kentucky Board of Trustees, 1990-05-jun19. 1990 2011 true xt7z610vr36g section xt7z610vr36g 







       Minutes of the Meeting of the Board of Trustees of the University
of Kentucky, Tuesday, June 19, 1990.

       The Board of Trustees of the University of Kentucky met at 1:00
p.m. Lexington time on Tuesday, June 19, 1990 in the Board Room on the
18th floor of the Patterson Office Tower on the Lexington Campus.

       A.    Meeting Opened and Roll Called

       Mr. Foster Ockerman, Chairman, called the meeting to order at
1 p.m., and the invocation was pronounced by Mr. Sean Lohman.

       The following members of the Board of Trustees answered the call
of the roll: Mr. Foster Ockerman (Chairman), Mr. Ted B. Bates,
Professor Raymond F. Betts, Mr. William E. Burnett, Jr., Mr. Tracy
Farmer, Senator Walter D. Huddleston, Mr. Sean Lohman, Dr. Robert P.
Meriwether, Professor Judith Rhoads, Mr. James L. Rose, Mr. Jerome A.
Stricker, Mr. William B. Sturgill, Judge Julia K. Tackett, Mr. Billy B.
Wilcoxson, and Judge Henry R. Wilhoit, Jr. Absent from the meeting were
Governor Albert B. Chandler, Professor Mary Sue Coleman, Mrs. Edythe
Jones Hayes, and Judge Robert F. Stephens. The University
administration was represented by Interim President Charles T.
Wethington, Jr.; Chancellors Peter P. Bosomworth and Robert E. Hemenway,
Jr.; Acting Chancellor Ben W. Carr, Jr.; Vire Presidents Edward A.
Carter, Wimberly C. Royster and Eugene R. Williams; and Mr. John C.
Darsie, General Counsel.

       Members of the news media were also in attendance. A quorum
being present, the Chairman declared the meeting officially open for the
conduct of business at 1:02 p.m.

       B.    Pofessor Carolyn S. Bratt Reczgnized

       Mr. Ockerman introduced Carolyn S. Bratt, professor in the
College of Law, who has been duly elected by the University System
faculty to be the successor to Professor Mary Sue Coleman on the Board
of Trustees. She will take office at the August 21, 1990 meeting. Mr.
Ockerman expressed pleasure in introducing Professor Bratt and asked her
to stand and be recognized, following which she was given a round of
applause.

       C.    Remarks on Behalf of Professor Mary Sue Coleman

       Professor Betts remarked about the exceptional service that
Professor Mary Sue Coleman has provided to the Board of Trustees during
her tenure. He stated that she has been forthright, determined, and
deeply concerned for the well-being of the University. She has provided
exceptional public and academic services to the institution. He said
that the Board should be proud and grateful of her remarkable service
and asked that it go on record thanking Professor Coleman for the
exceptional service she has provided as a faculty representative.
Senator Huddleston seconded the motion and it unanimously passed. Mr.
Ockerman said that he regretted that Professor Coleman was absent from
the meeting so that the Board's sentiments could not be expressed to her
personally.




 






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       D.   Minutes Approved

       Mr. Ockerman stated that the Minutes of the May 1, 1990 Board of
Trustees meeting had been distributed and asked for any corrections or
additions. The Minutes were approved as distributed.

       E.   President's Report to the Trustees (PR 1)

       Interim President Wethington called attention to the following
items in his report:

       1.   The University of Kentucky and the Pacific Northwest
             Laboratory (PNL) signed an agreement on June 8 that will
             provide an opportunity for joint research between the
             University of Kentucky and PNL scientists. This agreement
             provides a great opportunity for the University as well as
             PNL over the years.

       2.   The University of Kentucky has received a significant
             $1 million grant from the National Science Foundation to
             help reshape the way mathematics is taught in the
             kindergarten through the fourth grade classes in Kentucky.
             This effort will be in conjunction with other universities
             in the state, and the University of Kentucky College of
             Education is playing the lead role in this endeavor.

       3.    The University is proposing to spend $l.7 million in
             scholarships for the 1990-91 academic year. The
             scholarships will be awarded to students of high academic
             quality attending the University of Kentucky.

       4.    The Children's Miracle Network Telethon recently raised
             more than $230,000 to benefit the University Hospital's
             pediatric program. This effort is very significant and
             important to the pediatric program.

       5.    The School of Journalism at the University of Kentucky has
             been reaccredited for a six-year period. The program
             review was very positive for the School.

       Interim President Wethington called attention to the other items
in the report and asked that the Board read them at their leisure.

       F.    Personnel ActiqnsAP21

       Interim President Wethington recommended that approval be given
to the appointments, actions and/or other staff changes which require
Board action and that the report relative to appointments and/or changes
already approved by the administration be accepted. Dr. Meriwether so
moved. His motion was seconded by Professor Rhoads and passed. (See
PR 2 at the end of the Minutes.)

       Interim President Wethington noted that by the Board's action
Professor George C. Herring, Jr. is named an Alumni Professor of the
University of Kentucky effective July 1, 1990. Dr. Herring is chairman




 






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of the History Department and a long-time faculty member of the
University. He will receive a $5,000 annual stipend while in the role
of Alumni Professor. Dr. Herring was asked to stand and be recognized,
following which he was given a round of applause.

       G.   New Academic Degree (PR 5A)

       Interim President Wethington stated that PR 5A is a
recommendation for the establishment of a Master of Mining Engineering
Degree at the University of Kentucky. He stated that the program had
received the necessary scrutiny and recommended that it be approved.
Mr. Sturgill so moved. The motion, seconded by Mr. Stricker, carried.
(See PR 5A at the end of the Minutes.)

       H.   Appointment of Dean of the College of Engineering (PR 5B)

       Interim President Wethington stated that PR 5B is the appointment
of a Dean of the College of Engineering for the Lexington Campus. The
recommendation is that Dr. Thomas W. Lester be appointed as Professor
with tenure in the Department of Mechanical Engineering, and named Dean
of the College of Engineering, effective July 1, 1990. He asked
Chancellor Robert Hemenway to conment on the proposed appointment.

       Chancellor Hemenway expressed pleasure in recommending the
appointment of Professor Thomas W. Lester as Dean of the College of
Engineering. He stated that Dr. Lester is currently the chair of
Mechanical Engineering at Louisiana State University (LSU). He has had
a distinguished research record, specializing in research on pulverized
coal combustion and incineration of hazardous waste and has also worked
in industry. He holds degrees from Purdue University where he graduated
with high distinction, and he has had a very successful career as chair
of the Mechanical Engineering Department at LSU. Chancellor Hemenway
noted that Dr. Lester could not be in attendance at the Board meeting.

       Interim President Wethington stated that it is a pleasure to
recommend to the Board that Dr. Thomas W. Lester be appointed as Dean of
the College of Engineering and as professor with tenure in the
Department of Meehanical Engineering. On motion made by Mr. Rose,
seconded by Mr. Lohman and carried, the Board approved the appointment
of Dr. Lester. (See PR 5B at the end of the Minutes.)

       I.   Appointment of Dean of the College of Education (PR 5C)

       Interim President Wethington stated that PR 5C is the
recommendation that Dr. J. John Harris III be appointed as professor
with tenure in the Department of Administration and Supervision and
named Dean of the College of Education, effective August 1, 1990. He
asked Chancellor Hemenway to comment on Dr. Harris' appointment.

       Chancellor Hemenway reported that Dr. Harris is currently the
Dean of Education at Cleveland State University. Dr. Harris has been a
Department Chair at Indiana University and a tenured professor at The
Pennsylvania State University. Dr. Harris was the first choice of the
faculty, staff and students who met with the College of Education dean
finalists. He stated that the group felt that Dr. Harris is the best
person in the country to lead the College into a major role in the




 






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education reform that is currently causing Kentucky to be in the eyes of
the nation. Dr. Harris is married to Donna Ford Harris who is
completing her Ph.D. at Cleveland State University. Mrs. Harris will be
working part-time in the University Counseling Center.

       Mr. Stricker moved approval of PR 5C. The motion, which was
seconded by Mr. Farmer, was voted on and carried unanimously. (See PR
5C at the end of the Minutes.)

       Dr. Harris was in attendance, and Interim President Wethington
asked him to stand and be recognized, following which he received a
round of applause.

       Mr. Ockerman welcomed Dr. Harris to the University and stated
that he looked forward to many great accomplishments in the College of
Education.

       J.    Appointment of Dean of the College of Library and
Information Science (PR 5D)

       Interim President Wethington stated that PR 5D recommends that
Dr. Thomas J. Waldhart be named Dean of the College of Library and
Information Science, effective July 1, 1990. He asked Chancellor
Hemenway to comment on PR 5D.

       Chancellor Hemenway stated thnt with equal pleasure he presented
the recommendation of Dr. Thomas J. Waldhart as Dean of the College of
Library Science. He reported that Dr. Waldhart has been a member of the
Library Science faculty since 1970. He is widely respected in his
College and on campus and was the clear choice with the faculty of the
College of Library Science.

       Interim President Wethington so recommended the appointment, and
Professor Betts moved that PR 5D be approved. The motion, which was
seconded by Professor Rhoads, carried. Dr. Waldhart was asked to stand
and be recognized, following which he was given a round of applause.
(See PR 5D at the end of the Minutes.)

       K.    Appointment of Director of the H nors Program (PR 5E)

       Interim President Wethington stated that PR 5E is a
recommendation that Professor Christine Havice be appointed Director of
the Honors Program, effective September 1, 1990. He noted that this
appointment is to provide for a person to succeed Professor Ray Betts
who has been filling this role, along with other faculty and
administrative roles at the University, for the past several years.
Chancellor Hemenway was asked to comment on the appointment.

       Chancellor Hemenway stated that he was happy to recommend the
appointment of Professor Christine Havice as Director of the Honors
Program. Professor Havice is the kind of person that will be able to
maintain the Honors Program with the high standards and the high
academic tradition that Professor Betts has provided. She has been a
member of the Art Department faculty for over a decade and is widely




 






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respected as a teacher and a scholar. Chancellor Hemenway noted that
Professor Havice was a member of the faculty of the Governor's Scholars
program for a number of years, has been the President of the Women's
Caucus for Art and has served on several editorial boards of an art
history journal. These particular experiences will serve her well in
the position as Director of the Honors Program.

       Interim President Wethington recommended the appointment of
Professor Havice, and Mr. Ockerman entertained a motion for approval.
Professor Betts so moved. The motion was seconded by Mr. Stricker and
carried. (See PR 5E at the end of the Minutes.)

       Mr. Ockerman asked Professor Betts to introduce Professor Havice.

       Professor Betts stated that it is a real pleasure to know that
the Honor's Program, which is dear to his heart, will be in such good,
imaginative, talented and disciplined hands as those of Christine
Havice. He believes the students belonging to that program will find
her an extraordinarily delightful, considerate, compassionate person
with whom to work, and the University is very fortunate to have an
individual with her capabilities running the program.

       L.   Appointments/Reappointment to University of Kentucjy
Business Partnership Fouidation (PR 5F)

       Interim President Wethington recommended that approval be given
to the appointments of W. James Host, Larry Jones, and C. Sumpter Logan
and the reappointment of Gary Bello on the Board of Directors of the
University of Kentucky Business Partnership Foundation for terms
beginning with the fall 1990 meeting and ending with the spring 1994
meeting.

       Mr. Ockerman entertained a motion for approval. Mr. Sturgill so
moved. The motion was seconded by Mr. Rose and passed without dissent.
(See PR 5F at the end of the Minutes.)

       M.    Appointments to University of Kentucky Humanities
Foundation (PR 5G)

       Interim President Wethington recommended that approval be given
to the appointment of Joy Bale Boone and Nancy S. Dye to membership on
the Board of Directors of the University of Kentucky Humanities
Foundation for a four-year term beginning with the fall 1990 meeting.
On motion made by Senator Huddleston and seconded by Professor Betts, PR
5G passed. (See PR 5G at the end of the Minutes.)

       N.    Abolishment of an Academic Unit (PR 5H)

       Interim President Wethington stated that PR 5H is related to the
abolition of an academic unit. The recommendation is that the
University discontinue all four-year baccalaureate degree options
(except the BSN in Nursing) offered through University Extension at Fort
Knox along with the closure of the University of Kentucky Center at Fort
Knox.




 






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       He explained that one of the reasons for this request is that
over time the Elizabethtown Community College has picked up the primary
responsibility for the freshman and sophomore coursework that needs to
be offered in the Fort Knox area. There is no longer the need or the
critical demand for programs at the baccalaureate level with the
exception of the BSN program in Nursing. He noted that the proposal has
the necessary review and recommendations, and he, therefore, recommended
approval.

       Mr. Ockerman entertained a motion of approval. Mr. Lohman so
moved. The motion was seconded by Mr. Sturgill and carried. (See PR 5H
at the end of the Minutes.)

       0. Fund Board of Directors Appointment (PR 6A)

       Interim President Wethington recommended that approval be given
to the appointment of Mr. Ted Hahn as a member of the Board of THE FUND
for Advancement of Education and Research in the University of Kentucky
Medical Center, for an additional two-year term beginning July 1, 1990
and ending June 30, 1992. On motion made by Judge Tackett, seconded by
Dr. Meriwether and carried, approval was given to PR 6A. (See PR 6A at
the end of the Minutes.)

       P. A4grement-Between University of Kentuicky and Kentucky Medical
Services Foundation (PR (B3

       Interim President Wethington stated that PR 6B is a
recommendation that the Board approve the agreement between the Board of
Trustees and the Kentucky Medical Services Foundation, Inc. (KMSF). He
explained that the contract was negotiated pursuant to the "Board of
Trustees Resolution Regarding Medical Practice Plan" adopted on June 20,
1978. The agreement attached to PR 6B represents a change in the
contract and requires Board action. The University administration
believes that it is entirely consistent with the 1978 agreement, and he
recommended its approval. Mr. Ockerman asked for a motion. The motion,
which was made by Dr. Meriwether and seconded by Mr. Sturgill, passed.
(See PR 6B at the end of the Minutes.)

       Q. Appointment of Board of Directors University of Kentucky
Research Foundation (PR 8A)

       Interim President Wethington recommended that approval be given
to the appointment of Dr. Donald Frazier and Dr. William Ehmann (faculty
members) and Dr. Lee Todd (public member) to the Board of Directors of
the University of Kentucky Research Foundation for three-year terms
ending in 1993; and the reappointment of Mr. Walter D. Huddleston
(Trustee member) to a three-year term ending in 1993. On motion made by
Judge Tackett, seconded by Mr. Stricker and passed, approval was given
to PR 8A. (See PR 8A at the end of the Minutes.)

       R.  Est blishment of Multidisciplinary Center for Computational
Sciences (PR 8B)

       Interim President Wethington stated that PR 8B recommends that
approval be given to establish a Multidisciplinary Center for
Computational Sciences. The computational sciences effort has been




 






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ongoing at the University of Kentucky for some time, and this action
would formally recognize the Center. He asked Vice President Royster to
comment.

       Vice President Royster provided background information. He
explained that the Multidisciplinary Center started with a group of
faculty members in Mathematical Sciences, Physical Sciences and
Engineering who were interested in solving some complex problems by
computational methods. This group of faculty applied to the state's
EPSCoR program for funding and were approved as a cluster in that
program. He stated that the University purchased a supercomputer about
the same time and that equipment enabled this group of faculty to do
large scale computing and solve some of the problems. Thi2 group of
faculty moved out into other fields: business, biological sciences, and
medical sciences. Approximately three years ago, the program was
submitted to the Council on Higher Education for consideration as one of
the Centers of Excellence, and was chosen as one of the two Centers of
Excellence for the University of Kentucky. PR 8B is a recommendation
that this group be formalized.

       With Interim President Wethington so recommending, Mr. Burnett
moved approval of PR 8B. The motion, seconded by Professor Betts,
carried. (See PR 8B at the end of the Minutes.)

       Interim President Wethington informed the Board that this is the
last meeting that Wimberly Royster will attend as Vice President for
Research and Graduate Studies. He stated that Dr. Royster will be
stepping down from that position on June 30, 1990 and will be returning
to the faculty. He noted that Dr. Royster will also have the title of
Special Assistant to the President and will be assisting with the
development of the University's advanced technology center. Interim
President Wethington expressed appreciation to Dr. Royster for all his
efforts in the development of the research program at the University of
Kentucky and for his other broad based efforts in support of the
University of Kentucky over a long period of time. He asked Dr. Royster
to stand and be recognized by the Board, and Dr. Royster was given a
round of applause.

       Mr. Ockerman thanked Dr. Royster and stated that he was glad Dr.
Royster would still be at the University. He noted that because of Dr.
Royster's efforts and leadership the University's research program has
been nationally recognized. He expressed appreciation to Dr. Royster
for the significant accomplishments.

       S. Acceptance of Interim Financial Report for the University of
Kentucky for the Eleven Months Ended Mav 31. 1990 (FCR 1)

       Mr. Ockerman, Chairman of the Finance Committee, stated that
FCR 1 is the acceptance of the Interim Financial Report for the eleven
months ended May 31, 1990. He reported that the income to date is 97
percent of the budget and 88 percent has been spent. The University
anticipates receiving and spending the other three percent of the
income. Mr. Burnett moved that the Board accept the report for the
eleven months ended May 31, 1990. The motion, seconded by Mr. Farmer,
carried. (See FCR 1 at the end of the Minutes.)




 







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       T. Disposal of Personal Property (FCR 2)

       With Mr. Ockerman so recommending, Mr. Stricker moved that the
Board approve the disposal of surplus and obsolete equipment as
described in Exhibit 1. Mr. Lohman seconded the motion, and it carried
without dissent. (See FCR 2 at the end of the Minutes.)

       U. Capital Construction Report (FOR 3)

       Mr. Ockerman stated that FCR 3 is a routine quarterly report, and
the Finance Committee recommends its approval. Mr. Sturgill so moved.
His motion was seconded by Professor Rhoads and passed. (See FCR 3 at
the end of the Minutes.)

       V. Report of Leases (FOR 4)

       On motion made by Mr. Stricker, seconded by Judge Wilhoit and
carried, the Board approved the report of leases under $30,000. (See
FCR 4 at the end of the Minutes.)

       W.  Approval of Leases (FCR 5)

       Mr. Ockerman reviewed the leases in excess of $30,000 to be
renewed and stated that the leases are recommended for approval by the
Finance Committee. He entertained a motion for approval. Dr.
Meriwether moved and Mr. Farmer seconded that the Board authorize the
Vice Chancellor for Administration, Lexingtoni Campus, to renew the
leases. The motion carried. (See FCR 5 at the end of the Minutes.)

       X.  Approval of Lease (FCI   I  

       Mr. Ockerman reported that the Finance Committee recommends
approval of a lease for property on the Winchester Road in the City of
Lexington, formerly known as the Parker Seal location, for use by the
Lexington Community College. He noted that the lease is for 20,750
square feet of classroom/office/library space. He explained that it is
a five-year lease with a five-year option at the rate of $265,808 per
year, and he reviewed the calculations. At the request of Mr. Farmer at
the Finance Committee meeting, Dr. Blanton was directed to explore
another option with the owners. Mr. Ockerman remarked that it is a
building that will be heavily utilized because the space is needed for
the increased enrollment, which is expected to grow by 18 percent, at
the Lexington Community College. He entertained a motion for approval.
On motion made by Professor Rhoads, seconded by Mr. Burnett and carried,
FCR 6 was approved. (See FCR 6 at the end of the Minutes.)

       Y. Room and Board Rates 1990-91 School Year (FCR 7)

       Mr. Ockerman stated that FCR 7 is the room and board rates for
the 1990-91 school year. There is generally an increase between 5 and
10 percent which is necessary to cover the increased cost of maintenance
and food and salary increases for personnel in the food and maintenance
area. Mr. Sturgill made a motion that the recommended room and board
rates be approved. Mr. Lohman seconded the motion, and it passed. (See
FCR 7 at the end of the Minutes.)




 






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       Z. Resolution Adopting Revised Purchasing Regulations (FCR 8)

       With the concurrence of the Finance Committee, Mr. Ockerman
recommended that the Board adopt the revised purchasing regulations.
Mr. Farmer so moved. His motion was seconded by Mr. Burnett and passed
without dissent. (See FCR 8 at the end of the Minutes.)

       AA. Supplies Transfer to University of Cincinnati (FCR 9)

       FCR 9 was withdrawn from the agenda because the information was
included in FCR 2.

       BB.  Ijnt~eletual Property Rights Assignment Research and
Graduate Studies (FCR 10)

       At the request of Mr. Ockerman, Mr. Carter provided comments on
FCR 10. He reminded the Board that it previously approved the creation
of Kentucky Technology, Inc. (KTI), a for-profit corporation to deal
with the commercialization of research products from the University. He
explained that the first step taken was the faculty members' assignment
of the intellectual property rights to the University. FCR 10 is the
second step which recommends that the Board authorize the President to
execute an assignment on behalf of the Board of Trustees to the
University of Kentucky Research Foundation (UKRF) of technical know-how
and trade secret Intellectual Property Rights in certain new and useful
advances in the developments of enzyme-linked immunosorbent assays,
called ELISA tests made by faculty members David S. Watt, Thomas Tobin,
and Hsin-Hsiung Tai. The next step will be a license agreement between
UKRF and KTI. KTI will have majority interest in another for-profit
corporation which will commercialize the project. He noted that this is
happening at a very accelerated pace all over the country in higher
education and the administration hopes to bring these to the Board often.

       Mr. Ockerman remarked that it is very advanced technology and is
a major step forward. It is being well received and utilized throughout
horse racing in the nation. Professor Betts made a motion that FCR 10
be approved. Mr. Bates seconded the motion, and it carried. (See FCR
10 at the end of the Minutes.)

       CC.  Operating Budget for 1990-91 (FCR 11)

       Mr. Ockerman began by expressing appreciation to everyone who
participated in helping the University of Kentucky receive additional
funds for the biennium. He noted that this is the greatest increase
that the University has ever received. He particularly thanked Interim
President Wethington for the great amount of time that he spent in
Frankfort during the legislative session. After expressing thanks to
the legislature and the Governor, he called upon Interim President
Wethington to present the budget.

       In opening his presentation, Interim President Wethington
reported that the administration had held briefings with individual
Board members, with small groups of Board members, with the media, and
with the Senate Council. Many hours had been spent with administrators




 






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and others on campus in the development of the budget. He added that it
is a good budget from his perspective, and it is one which is obviously
people oriented. He indicated that this budget is a turning point for
the University, getting it turned back in the right direction in terms
of its fiscal base.

       Interim President Wethington used a series of transparencies to
graphically demonstrate the predictions of the situation for the next
two years based on the budget passed by the Governor and General
Assembly. He stated that this budget provides some adequacy in funding,
and it moves the University toward equity in funding. He reminded the
Board that the University System was approximately 79% of formula
funding in the state and the Community College System was approximately
69%. This effort over two years will move the University up to
approximately 88% of full formula funding.

       Interim President Wethington reported that the annual operating
budget (one year of the two-year period) is a $730 million budget. This
represents an overall increase of 11.4%   He noted that the revenue
sources are the increased state appropriation. He explained that in the
University System there is a state appropriation increase of
approximately $23.7 million. Of that, $6.3 million is debt service or
earmarked appropriation, and the program increase is 8.5%. He pointed
out that one of the problems encountered in working through the budget
was his commitment to work toward 10% salary increases for faculty and
staff and the state appropriation increase was only 8.5% for the
University System. He noted the push for more equitable funding for the
Community College System for years and stated that the appropriation for
next year will be an increase of approximately $9.3 million or 19% in
overall program increase money for the Community College System.

       He mentioned that the percent of the University budget supported
by the state has gone down over the years to an all-time low of 38.8%
last year. With this proposed budget, it will go back up to 39.4%, a
promising turnaround. He noted that the percent of higher education
funding going to the University of Kentucky has also turned around. The
University is projected to move from 44% in 1989-90 to 47% by the end of
the biennium.

       Interim President Wethington stated that tuition and fees will
increase in this budget by $9.5 million. This increase is primarily due
to the tuition rates approved by the Council on Higher Education that
have been reaffirmed by the University's Board. He then reviewed other
fees that will be slightly increased and noted that there is an increase
in investment funds, restricted funds and hospital revenue. These
increases are reflected in the $729+ million budget.

       Interim President Wethington reported that approximately 50% of
these funds will be spent on the three major functions: instruction,
research and service. The hospital and auxiliaries, which are totally
self-supported, will comprise more than 25% of the budget. The other
25% will be spent on other support services: operations and maintenance
of plant; student services and financial aid; academic support; debt
service and institutional support. He noted that the most significant
percentage increases are in instruction, public services, student
services, financial aid, and the hospital.




 






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       Interim President Wethington then informed the Board that the
budget will be spent as follows:

             58% for people
             33% for operating expenses
             4% for debt service
             5% for capital items

       He reviewed the Operating Budget expenditure summary and provided
background information on the budget-making process at the University.
He also called attention to the fixed costs increases which the
University cannot control.

       Interim President Wethington explained that the top priority,
after fixed and continuation costs, was salary increases. This priority
was necessary in order to retain, attract and recruit top quality
faculty and staff. Therefore, the budget provides for a 10% salary
increase pool which amounts to more than $21 million. He noted that the
beginning salary level for new hourly employees was raised by 5%.

       He indicated that the Chancellors, Vice Presidents, and other
administrators were instructed to correct ally inequities in either
female or minority salaries and stated that there was also a special
appropriation of $1.8 million in catch-up funds for salaries for
extension agents.

       Interim President Wethington reported that there are
approximately 900 retirees of the University of Kentucky who are in a
non-funded retirement system. The budget will provide a cost-of-living
increase for those retirees. He noted that the University does not have
a legal mandate to provide an increase; however, it is one that the
administration felt it had an obligation to provide.

       He also called attention to a 6.5% proposed salary increase for
Graduate Assistants and reviewed some changes in fringe benefits, noting
the elimination of the six-month waiting period for health insurance and
the establishment of an Elder Care Program.

       Interim President Wethington reported on the program priorities
and strategic plan initiatives included in the budget. He stated that
one of the thrusts in the plan was improving scholarship and academic
excellence. He called attention to Chancellor Hemenway's proposal to
deal with the minimum graduate course requirement for graduate
assistants having responsibility for a class and stated that Chancellor
Hemenway proposes to put all graduate assistants through a one-week
training program prior to their going into a classroom beginning with
the Fall Semester. It is believed that both of these efforts will have
a positive impact on undergraduate teaching in the University of
Kentucky.

       He stated that money was set aside in the budget for the
University Studies Program, renewal and replacement