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    !minutes of the Regular Mheeting of the Board of Trustees,
University of Kentucky, September 16, 1941.


     The regular September meeting of the Board of Trustees, Uni-
versity of Kentucky, was held in the President's Office, Tuesday,
September 16, 1941, at 10:30 a.m.   The members of the Board
present were: Governor Keen Johnson; Judge Richard C. Stoll; Harper
Gatton; H. S. Cleveland; LouisHillenmeyer; Robert P. Hobson;
Marshall Barnes  Dr. Lee Kirkpatrick; Robert Tway; James Park;
Judge Harry F. Ialters; and rIrs. Paul G. Blazer.  President H. L.
Donovan, Comptroller Frank D. Peterson, and Secretary W. Gayle
Starnes were present.


     1. Approval of I.inutes.

     The minutes of the meeting of the Board of Trustees, June 5,
1941, and the minutes of the meetings of the Executive Committee,
June 20 and July 25, 1941, were approved as published.


     2. QuarteZli Report of the President.

     President Donovan presented and discussed the quarterly report
of the President to the Board of Trustees.   On motion, seconded
and carried, the report was received and ordered published in the
minutes.  It is copied as follows:


               QUARTERLY REPORT OF THE PRESIDENT
                    UNIVERSITY OF KENTUCKY

                      September 16, 1941


    INTRODUCTION

         It has now been two and one-half months since I report-
    ed for work on July 1.   I found Comptroller Peterson had
    already reported for duty and was studying the financial
    and business affairs of the University.   Dean Henry Hill
    began his work on July 15.

         Dean Tnomas P. Cooper, who had served as Acting Pres-
    ident during the past year, did everything lhe could to
    prepare the way for our comiAg.   During the interval of
    three months between the time I was appointed president
    of the University and the tine I took up the duties of
    this post, Dean Cooper furnished me with a great deal of
    material that helped me to become acquainted with the
    problems of the institution.   He also kept me informed
    about the activities of the University during this period.
    The manner in which he prepared me for my induction into
    office has made my work much easier than it would otherwise
    have been.   I shall always be extremely grateful to Dean




 






2



   Cooper for the splendid way in which he introduced me
   to the work of the presidency of the University.

        The deans, the faculty and other staff members, as
   well as the citizens of Lexington, have been very gracious
   in welcoming us so enthusiastically to the University and
   to this community.   Dean Hill, Mr. Peterson and I have
   been encouraged and inspired by the cordial reception
   which has been extended to us at the beginning of our
   administration.

        We have spent the summer studying the history, prac-
   tices and traditions of the University and getting acquaint-
   ed with the personnel of the institution.   We have read
   many reports which have helped to prepare us for our new
   duties.   The beginning of the new fiscal year, July 1,
   was an excellent time to assume the duties of our offices.
   We feel that we are now prepared for the more strenuous
   program which opens with the beginning of the fall semester.


   SUMMER SCHOOL 1941

         All over the United States summer school enrollments
   were down this year.   Decreased enrollments have been
   largely due to our national defense program which offered
   many jobs to young people, and to the draft.   Our summer
   school at the University, which has been gradually growing
   from year to year, experienced a decrease in enrollment
   this summer,   The following table, which was prepared by
   the Director of the Summer Session, will give you the in-
   formation about the enrollment of the summer school for
   1941.



                1941 SUMMER SESSION ENROLLMENTS

                       Total Not  Per Cent    Total Ex- Per Cent
Classi-  First Second  Excluding  Decrease or cluding   Decrease or
fication Term  Term    Duplicates Increase    Dupli-     Increase
                                  Compared    cates     Compared
                                  to 1940               to 1940

Men       831    627     1458       -28.2        1078       -29.9

Women     826    524      1350      -16.8        1066       -18.9


Total    1657   1151*    2808       -23.2        2144       -24.9




 







3



1941 SUMLER SESSION ENROLLZlTS (CONTINUED)



                      Total Not Per Cent     Total Ex- Per Cent
Classi-  First Second Excluding  Decrease or cluding   Decrease or
fication Term  Term   Dupli-     Increase    Dupli-    Increase
                      cates      Compared    cates     \ Compared
                               I to 1940    _          to 1940

                    Enrollments by Colleges


Arts &
Sc.      315    274     589       -24.7       448        -27.2

Agri.     159     36     245       - 2.4       179         - 3.8

Engin.    103     50     153       + 9.3       112         + 7.1

Law        33     34      67       -28.7         40        -34.4

Educa.    224    216     440       -27.3       359         -29.7

Con.       94     74     168       +15.1       107         + 5.9

Grad.
School   729    417    1146       _`30.0       899        -29.5


Total    1657   1151*   2808       -23.2      2144         -24.9



*This report is based on figures from the Registrar's Office.
Approximately 1.6 temporary admissions and 10 coaching school
students have not been included in the second term totals
but may be added later.



     Despite the decrease in enrollment, the graduating class
in August was the largest ever to finish at the end of any
summer school.   There were  268 candidates who received degrees.
The summer school commencement was held on August 22.    President
John J. Tigert of the University of Florida was the speaker on
this occasion.




 






                             4


STATE APPROPRIATIONS FOR A PERIOD OF YEARS

     A survey of the problems of the University convinces me
that the most acute problem which ante face is one of finances.
In spite of the depression through which we hacve passed during
the last ten years, the University has continued to expand.
The enrollment has increased from 4845 in 1930-31 to 6264
during the past year.   The public has asked the University
for many services in recent years which the University did not
formerly attempt to give.   The people are learning that the
University can and should be helpful to them in the solution
of many of their problems, and, as a consequence, the Uni-
versity is having calls for services not previously rendered.
These services cost money, and with a budget far below what it
was a decade ago, it has been difficult to extend the services
which are so frequently requested.

     In order that the Trustees may have a picture of the fi-
nancial resources of the University the following table has
been prepared, which summarizes the moneys available for the
University ior the period beginning 1928-29.


                   UNIVERSITY OF KENTUCKY
                   STATE APPROPRIATIONS


                         Operating             Capital
                         Expe;lnse             Outlay

       1 28-29           $1,076,768           $150,000

       1929-30            1,111,246            150,000

       1930-31            1.190,462            12J5,000

       1931-32              939,874             41,570

       1932-33              719,080             13,748

       1933-34              624,376

       1934-35              805,035

       1935-36              805,596

       1936-37              711,0'24

       1937-38              724,352

       1938-39              836,628             149,843

       1939-40              834,984             149,904



1940-41



70t000




 









     JYou wrill note that in 1930-31 the University received
for operating expenses from the Treasurer of the State
$1,190,462, and ~125,000 for capital outlay. During the past
xear the University has received for operating expenses
p894,238, and $70,000 for scientific and library equipment.
In other words, we are operating a much bigger University
today than we had a decade ago on a budget of $296,224 less
for current operating expenses and $55,000 less -for capital
outlay.

     The appropriation for the extension program and Experi-
ment Station of the University is not included in either of
these figures.

     In all of my experience as a school administrator, in both
city schools and as a college executive, I have never admin s-
tered an institution where the budget was so limited for the
services expected of the institution.  I have been pressed
by deans, heads of departments and faculty members for addition-
al funds for services that the University should be rendering,
but I have been compelled to refuse all such pleas, regardless
of their merit.   And so I have no apologies to make for my
urgent appeal for additional resources for the operation of the
University.   If we had less enrollment or more money than we
had a decade ago, or if we had no needs now too long deferred,
I might be embarrassed to make such an appeal.  Instead, I am
telling the Trustees that it will not be possible to build a
better university than we have today, unless there are addition-
al resources available for this purpose.  Because of this fact
I am presenting in this report a number of aspects of our
financial situation, which I feel should be brought to the
attention of the Board of Trustees.

     In January, 1938, President McVey, reporting to the Board
of Trustees for the biennium 1935--37, to the Governor and the
Legislature of Kentucky, said in his report on page 15: "The
total sum of money voted by the legislature for construction
at the University in seventy-two years of history is $1,234,000.
There are five buildings on the campus that are more than fifty
years old, there are ten that are more than thirty years old.
These buildings were not well constructed in the beginning, but
are still being used to full capacity."

     We will be celebrating our seventy-fifth anniversary this
year.   The total appropriation for buildings which the Univer-
sity has received by direct appropriation from the General
Assembly to this date does not exceed *1,300,000.   The Trustees
may inquire how we have obtained a plant worth approximately
six and one-half million dollars if this is all of the money
which the State has appropriated for its construction.   This is
a legitimate question to ask.   Many of the buildings erected
during the MicVey administration were constructed with the
funds appropriatedL for the operation of the University.  The
appropriations received prior to the enactment of the Reorgan-
ization Act of the General Assembly in 1934 enabled the




 








6



Trustees to spend their appropriation in any way they deemed
wise.   The President and the Trustees saved part of the op-
erating expenses of the University, and from time to time
erected buildings from such sums as they had been able to
save.   The Federal Government has also contributed consid-
erable sums of money over a period of many years that have
added to the value of the physical plant of the University.
In addition to these two sources, a number of gifts have been
made to the University by alumni and other friends, the City
of Lexington, Fayette County and the General Education Board,
which have greatly increased the value of our properties.
During the past decade much Federal money has been received
on a 45-55 basis, and many buildings have been constructed
out of Federal grants and money which the Trustees have bor-
rowed for the purpose of erecting these new buildings.

     As a result of the present program, which has just recent-
ly been completed, the University has an indebtedness, as of
July 1, of' $1,084,500.  This is not an exorbitant debt for
an institution of our size, but we should not erect any other
building on a basis of amortization, unless we can see a way
to pay for the structure out of the income from the building.
The indebtedness of the University is being retired in an
orderly manner, which requires approximately $75,000 a year
to retire the principal and nay the interest on the debt.
It is clear that, however wise and urgent it may have been to
construct the buildings, yet the necessary appropriation of
$75,000 annually has prevented the restoration of' salaries to
their levels of a decade ago.   Kentucky can afford the build-
ings, but she cannot afford an underpaid educational staff.

     The following table, which was prepared by Mr. Peak and
Mr. McCain, will summarize the indebtedness of the University
as of July 1, 1941:




 






7



indebtednress -- July 1. 1941



Unpaid



1936 Bond Issue $559,000.00

1938 Bond Issue 307,000.00



First Nattl Bank
& Trust Company



15,000.00



Land Trust Cer-
tificates   193e 171,500.00



Security Trust
Company

First Nattl Bank
& Trust Company

Security Trust
Company



10,000.00



Date of Final
Payment



July 1, 1965

Sept.l, 1968



June 30, 1942



Mar. 1, 1959



July 1, 1951



2,000.00   Dec.151 1943



20,000.00



July 1, 1945



01,0R4 500. as



Interest to Total Prin-
be Paid     cipal &
            Interest

$229, 920.00 $788,9920.00

144,705.00  451,705.00



615.00  15, 615.00



70,060.00



241, 560.00



2,200.00  12,200.00



120.00   2,120.00



2, 900.00  22,900.00

450,520.00 1,535,020.00



FUTURE BUILDING PROGRAM

     The University is urgently in need of a number of new build-
ings.   The first which I am placing on the list is a field house.
I request that you instruct the administration to ask the Governor
and the General Assembly to provide at the next meeting of the
Legislature an appropriation for this building.   We should regard
this structure as a utility building.   In reality, it would be
more than a field house.  We are thinking of it as a building
which would not only provide for a gymnasium, with a basketball
floor where from ten to twelve thousand might witness a basketball
game, but that it would also serve the University as an auditorium.
A part of the building would be a dormitory for the athletes,
which could be built under the ramps at a very limited cost in
what is frequently regarded as Chaste space. The building should
include a swimming pool where our dry land swimming team might
have access to water.   The building can be so constructed that
the football team can have space for practice in inclement
weather.   It will also serve as a fine place for ROTO activities.




 








8



The State Basketball Tournament could be entertained in such a
building, and. it would be large enough to take care of all who
wish to be admitted.   Various festivals, musicales, farm pro-
grams and other programs could be held in such a building.   A
building of this type would be of enormous value to the Uni-
versity and to the entire state, either directly or indirect-
ly,

     Dean Graham and I have held many conferences over what
such a building would cost, and he has estimated that it would
cost approximately $900,000 to build the type of structure
which we need, and one that would serve the University for a long
period of years.   To erect a smaller building will mean that
in a few years we will find ourselves in the position of having
to enlarge ito   Only a few years ago wie erected the present
gymnasium and at that time many people around the University
thought it would meet the needs of the University for at least
a half century.   We nowJ find that we have completely out-
grown it and that it is altogether inadequate.

     The request which we are making for an appropriation of
$900,000 is not unreasonable in comparison with the field
houses that have been erected at a number of universities,
both to the north and south of us.    There are at least a dozen
field houses in the United States that have cost from one to
three million dollars each.   While we are erecting such a
building we should certainly build a structure in which the en-
tire State will have a pride.

     Other buildings which we need, but which at the present
time I shall not recommend, are a Fine Arts Building, a building
for the College of Commerce, an addition to our present library,
a museum, an archives building and dormitories for men and women.


AIR CONDITIONING THE STUDENT UNION BUILDING

     The Student Union Building is unbearably hot during the
late spring, summer and early fall.    There are at least five
months during the year when it should be air conditioned.    It
is my judgment that if we get this building comfortable during
the summer months the additional costs of equipment for this
purpose could be paid for out of additional business which would
be given the cafeteria and other activities operated in this
building.   I am recommending that you request Comptroller Peter-
son and Dean Graham to make an investigation of the cost of air
conditioning this building, and report to an early meeting of
the Executive Committee, giving this Committee power to act.




 







9



                   * * * * :.* * * * * * *

          3. On notion, duly seconded and passed, Comp-
             troller Peterson and Dean Graham were
             directed to make investigation of the cost
             of air conditioning the Student Union
             Building and report to an early meeting of
             the Executive Committee, this Committee
             being given power to act.

                    * * F St * v * * * * *



ATHLETICS

     The Business Office is becoming acquainted as speedily as
possible with the business of the Athletic Department and wishes
to delegate certain business management to the personnel of the
Department with the approval of the President and the Board of
Trustees.

     I recommend that the Manager -of Ticket Sales, of the Depart-
ment of Athletics, execute a bond in the amount of 10,000.00
payable to the Comptroller of the University for the use and bene-
fit of the Department of Athletics.   I further recommend that
complimentary tickets be handled by a secret committee known to
the Athletic Director and the Comptroller of the University, and
that the complimentary tickets be signed by two persons, the
Comptroller and the Director of Athletics.




     4. a. Bond of Ticket Sales Manager.
           A motion was made, seconded and passed to have
           the Manager of Ticket Sales of the Department
           of Athletics execute a bond in the amount of
           $10,000, payable to the Comptroller of the
           University, for the use and benefit of the
           Department of Athletics.

        b, Committee to Handle Complimentary Tickets.
           On motion, properly passed, President Donovan
           was authorized to appoint a committee to
           handle complimentary tickets for athletic
           events; these tickets to be signed by two
           persons, the Comptroller and the Director
           of Athletics.



* * * * * * *i *o * * *




 







10



        ANALYSIS OF INSTRUCTIONAL SALARIES
              UNIVERSITY OF KENTUCKY
                     1940-41


                             September 15, 1941



President H. L. Donovan
University of Kentucky

Dear President Donovan:

     In compliance with your recent request, I am glad
to submit an analysis of salaries paid to the instruc-
tional staff of the University of Kentucky during the
school year 1940-41.

     In my opinion, considerable further study should
be devoted to faculty personnel.   We should have avail-
able the training, experience, age, and professional
contributions of the faculty and certain other pertinent
data in readily comprehensible form for the entire Uni-
versity and for each college.   Only a great faculty
can make an institution great and such a staff is at-
tained only with pains and patience and with a full
knowledge of the strengths and weaknesses of the present
faculty.

     In addition, a thumbnail etching of the entire
University of Kentucky employed personnel seems ad-
visable.   Uninformed or unscrupulous persons will
report that the University of Kentucky has one pro-
fessor for every four students, that costs are greater
at the University of Kentucky than at any other state
university, that the staff is overpaid and so on.
Only accurate information clearly stated will answer
these and similar statements.

                              Sincerely yours,

                              (Signed) Henry H. Hill

                                         Henry H. Hi.ll
                                         Dean of the Uni-
                                              versity




 







11



METHODS AND SULMMRY OF FINDINGS

    What salaries are Paid professors at the University of Ken-
tucky?

     As the time for presenting the budget for the next biennium
approaches, the answer to this question takes on more than its
usual importance.   Trustees, administrative officers, alumni and
friends of the University need to know accurately the typical sal-
aries, the exacting requirements for professorial positions, the
comparison with salaries paid a decade ago, and certain other
related factors wrhich will enable the citizens of Kentucky to un-
derstand the fiscal needs of their University.    The present report
covers teaching salaries for the school year 1940-41 with certain
comparable data for 1930-31.

     Salaries for all instructors, assistant professors, associate
professors, professors, professors who are heads of departments,
and deans have been tabulated.   The athletic department, business
office, registrars office, library, university extension, agri-
cultural extension, and all other non-teaching departments and
personnel have been excluded.   All persons employed part time,
those on leave, and those having a change of employment status
were omitted.

     Summer school salaries were not included.    The large majority
of teaching employees of the University do not teach in summer
school because of the necessity of taking advanced study, the com-
pulsion of other duties or plans, or the lack of opportunity.
Those who usually teach in summer school have no agreement with
the University such as exists in the case of the regular school
year.    No distirnction has been made between ten months and twelve
months employees, the amount the University has agreed to pay each
teaching employee being the figure used, thus excluding any casual
extra sum which comes to few employees.    The purpose has been to
show typical salaries, the usual rather than the unusual.

     The analysis for 1940-41 includes fifty-one instructors,
fifty-seven assistant professors, thirty-nine associate professors,
forty-nine professors, thirty-six professors who are heads of de-
partments also, and nine deans, a total of 241.    That of 1930-31
includes a total of 174 persons, reflecting the smaller student
body and faculty ten years ago.    Both medians and averages for
all ranks for the University as a whole are given for 1940-41.




 








12



    The typical instructor receives $1,800; assistant prof essor,
$2,500; associate professor, $2,900; professor, $3,600; professor
who is also department head, $3,900; dean, $5,o00.  Certain
other data are shown in greater detail in the tables and lists
which follow.

     In addition, a comparison of salaries at the University of
Kentucky with those paid in fifty-two land-grant colleges, and
with those paid in seventeen land-grant colleges in states pro-
viding separate instruction for Negroes is shown in Table 2.





                           Table 1

            University Salaries bad Ranks--1940-41



                                   Median

Instructors  (51)                 $1,800

Assistant Professors (57)          2,500

Associate Professors (39)          2,900

Professors (49)                    3,600

Head Professors (36)               3,900

Professors and Head Professors (85) 4700

Professors of All Ranks (181)      3,000

All Instructional Personnel (232) 2,900

Deans  (9)                         5,500



Average

$1,828.03

2,518.18

2,867.33

3,570.71

3,976.39

3,742.51

3,178.38

2,873.74

5,411.36



Range

1,000-3,000

1,350-3,600

2,100-3,600

2,000-5,200

2,900-5,000

2,000-5,200

1350-5,200

1,000-5,200

2,700-7,000




 







13



                          Table 2

     Comparison of Median Salaries at the University of
     Kentucky with Those in Fifty-two Land-grant Colleges
     and Seventeen Non-Negro Land-Grant Colleges.



                                          Fifty-two     Seventeen
                            University    Land-grant    Non-Negro
                            of Kentucky   Institutions  InstitutionE
                              1940-41       1939-40       1939-40


Instructor                   $1,800         $1,937         $1,840

Assistant Professor           2,500           2,605         2,352

Associate Professor           2,900           3,272         2,926

Professor                     3,700           4,245         3,658

Dear,                         5,500           5,050         4,844





     Comment:    Medians of the University of Kentucky
                 include a few twelve months men while
                 medians in the two groups of land-grant
                 colleges are based upon nine months
                 employees.   Exclusion of the twelve
                 months instructional staff members would
                 lower the University of Kentucky medians
                 for professors and deans only slightly.

                 The fact that the medians for the Uni-
                 versity of Kentucky are those of 1940-41
                 and those for the land-grant colleges
                 are for 1939-40 is of no great signifi-
                 cance.

                 Data for land-grant colleges are from
                 the United States Office of Education,
                 Circular No. 196, entitled ttCollegRe
                 Salaries."

                 Tho 52 land-,;r,,nt institutions in C lumn
                 2 include. thc 17   n-Nr    Ins'iutins
                 in cnlur.mn 3.




 








14



                          Table 3

       1930-31 Median Salaries Compared with Those
           for 1940-41, University of Kentucky


       Rank                      1930-31    1940-41   Per Cent
                                  Salary     Salary    Decrease


Instructor                       $2,300      $1,800     21.7

Assistant Professor               2,600       2,500      3.1

Associate Professor               3,300       2,900     12.1

Professor                          3,750      3,600      4.

Head Professor                    4,000       3,900      2.5

Professors and Head Professors     3,950      3,700      6.3

Professors of All Ranks            3,500      3,000     14.3

All Instructional Personnel        3,150      2,900      7.6

Dean                               6,100      5,500      9.8




     Comment:   For 1930-31 there are 174 persons in-
                cluded in the study as compared with
                241 for 1940-41.   In both cases only
                regular full time instructional person-
                nel of the rank of instructor and above
                who are primarily teachers are included,
                Please note that the persons compared are
                not necessarily the same in both years.
                The larger personnel in 1940-41 reflects
                in part the growth of the University of
                Kentucky from a winter enrollment of
                3682 in 1930-31 to 4128 in 1940-41 and
                in part the expansion of the University
                of Kentucky into new fields.




 







15



    REDORT OF COIVIPTROLLER TO PRESIDENT OF THE UNIVERSITY




                                  September 12, 1941

      President H. L. Donovan.
      University of Kentucky.

      Dear President Donovan:

           May I take this occasion to report to you the
       conditions found and the progress made since July 1,
       1941, in the Department of Business Management and
       Control.   I am attempting to report conditions as
       they exist.  Nothing that is said in this report is
       intended to reflect the slightest criticism on any-
       one.   It is felt that conditions as they exist are
       due to inadequate funds available f-or operating
       expenses.




FINANCE AND ACCOUNTING

     The Business Office has made certain changes in the Budget
as adopted by the Board of Trustees for operation for the fiscal
year 1941-42.   The results to be obtained by the Budget have not
been altered other than to add proposed expenditures which had
been inadvertently omitted from the Budget at the time of adoption.
The Budget is unbalanced.   We hope that student fees will exceed
the estimate.   If Institutional fees and miscellaneous income do
not exceed the estimates, adjustments in the Budget will be
necessary.

     The accounting system has been altered since July 1, 1941.
We have attempted to change from hand-kept ledgers to electric
accounting machines.   This necessarily has interrupted office
procedure.   The personnel, however, have closed the records for
the year ending June 30, 1941, and have made satisfactory progress
in adjustment to the changed system.

     The University accounts are divided into sections, vi2z;
College--General; Agricultural Experiment Station; Agricultural
Extension; College--Restricted; Agricultural Experiment Station--
Restricted; Agency Funds; Student Loan Fund; and University Plant
Fund,   The Revenue and Receipts and Expenditures are classified




 







16



accordingly.   These classifications show numbers and names of
accounts with blocks of numbers being assigned to each fund. Each
expenditure classification has subsidiary classification on an
objective basis from wuhich it is possible to secure detailed
analysis of expenditures.   Blocks of numbers again are assigned
to each major expenditure class.

     It has been somewhat difficult for the office force, limited
as it is, to adapt itself to a change from the system where all
records were kept by hand to a system where all records are kept
by numbers and electric accounting machines.   However, the system
is operating possibly as well as might be expected.   We have
experienced considerable inconvenience due to the priority of the
defense program on many of our purchases needed for smooth, suc-
cessful operation of the system.    The accounting machines were
ordered in May, 1941, and it was thought they would be available
by July 1.   To date, we have not received the machines ordered
and are advised that they will not be delivered until months
later unless we can get a priority number.   I have asked for a
priority number.   We are now operating with a worn out machine
shipped us from Texas, and in order to accomplish our task, it
has been necessary to work at night, due to the fact that the ma-
chine we now have breaks dowm on an average of four times a week.
I have been exceedingly anxious to give you and the various de-
partments a summary report of the operations for the months of
July and August.   However, I find to do so will work an addition-
al hardship on the office force and I beg leave to omit this
report until accounting machines have been received.   This office
also ordered a numbering, check-protecting-signature machine which
we are unable to secure and for Which the Company has asked a
priority number.


SUMER SESSION

     The income during July and August has been entirely from fees
collected from students attending one or both of the summer ses-
sions.   The expenses of the Summer School have been entirely met
from receipts collected, state appropriation and a $3,000.00
budget item taken from the General Revolving Fund receipts of the
University.


PURCHASES

     The