University of Kentucky by the Eleanor and John Y. Brown, Jr. Foundation,
President Singletary asked that the Board formally accept it for the institution.
On motion by Mr. Bell, seconded by Mrs. Clark, and passed, the recommen-
dation in PR 6 was approved.

       Noting that the University rarely received gifts of such a size, Mr. Clay
asked Judge Sutherland and Mr. Black to draft a resolution for presentation at
the May meeting expressing appreciation to the Browns for their generosity.
(See PR 6 at the end of the Minutes. )

       L. Budget Revisions for 1972-73 (PR 7)

       The recommendations for budget revisions for 1972-73 being of a routine
nature and there being no questions, on motion duly made, seconded, and
carried, the recommended budget revisions in PR 7 were authorized and ap-
proved. (See PR 7 at the end of the Minutes. )

       M. Internal Budget for 1973-74 Approved (PR 8)

       President Singletary in presenting the internal budget noted that copies
had been made available to members of the Board in advance of the meeting in
order that they might have an opportunity to examine it prior to its presentation.
He said that it was the largest budget in the University's history and represented
an increase from $130, 260, 100 in 1972-73 to $136, 290, 700 for 1973-74. He
pointed out that, in spite of this nearly $6 million increase, it was a difficult
budget to prepare because there are two currents at play--the prospect of re-
duced federal funds for program support and increased costs resulting from
recent federal legislation. Among the latter are the additional costs to cover
employees under the provision of the Federal Employment Security Act (Un-
employment Compensation), increases in the rate and base for calculating social
security taxes, and proposed changes in the minimum wage. The social security
increase alone will amount to nearly $1 million annually. If President Nixon's
budget is enacted as it is now, the University would be affected in at least three
areas: agricultural research and agricultural extension; the Medical Center;
and student aid.

       The largest portion of the increased funds available in this budget are
allocated for salary increases which will average approximately 4. 5%, including
salary adjustments for certain wom-en and minority employees. This budget
includes approximately $180, 000 for such adjustments.

       The budget reflects the increased student fee set by the Council on Public
Higher Education last year. The percentage of the total budget support from
student fees continues to increase as the portion supported by state appropriation
decreases. We must accompany these fee increases with dramatic increases in