xt7jws8hfb4t https://exploreuk.uky.edu/dips/xt7jws8hfb4t/data/mets.xml Lexington, Kentucky University of Kentucky 19930119 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, 1993-01-jan19. text Minutes of the University of Kentucky Board of Trustees, 1993-01-jan19. 1993 2011 true xt7jws8hfb4t section xt7jws8hfb4t 





       Minutes of the Meeting of the Board of Trustees of the University of
Kentucky, Tuesday, January 19, 1993.

       The Board of Trustees of the University of Kentucky met at 1:00 p.m.
(Lexington time) on Tuesday, January 19, 1993 in the Board Room on the 18th
floor of Patterson Office Tower on the Lexington Campus.

       A.    Meeting Opened

       Governor Edward T. Breathitt, Chairperson, called the meeting to
order at 1:00 p.m., and the invocation was pronounced by Judge Henry R.
Wilhoit, Jr.

       B.    Roll Call

       The following members of the Board of Trustees answered the call of
the roll: Governor Edward T. Breathitt (Chairperson), Mrs. Kay Shropshire
Bell, Professor Carolyn S. Bratt, Mr. Paul Chellgren, Mr. James Hardymon.
Mr. Pete November, Dr. Elissa Plattner, Dr. Deborah Powell, Mr. James L.
Rose, Mrs. Marian Moore Sims, Professor John Sistarenik, Jr., Mr. William
B. Sturgill, Mr. Daniel C. Ulmer, Jr., Mrs. Lois Combs Weinberg, Mr. Billy
B. Wilcoxson, and Judge Henry R. Wilhoit, Jr. Absent from the meeting were
Mr. Robert Clay, Mr. Henry Jackson, Dr. Robert P. Meriwether, and Mr. C.
Frank Shoop. The University administration was represented by President
Charles-T. Wethington, Jr.; Chancellors Peter P. Bosomworth, Ben W. Carr,
Jr., and Robert E. Hemenway; Vice Presidents Joseph T. Burch, Edward A.
Carter, Donald B. Clapp, Linda J. Magid, and Eugene R. Williams; Dr.
Juanita Fleming, Special Assistant for Academic Affairs; Mr. C. M. Newton,
Athletics Director, Mr. John C. Darsie, Legal Counsel.

       Members of the general public and the news media were also in
attendance. A quorum being present, Governor Breathitt declared the
meeting officially open for the conduct of business at 1:03 p.m.

       C.    Approval -of Minutes

       Governor Breathitt noted that the Minutes of the December 8, 1992
meeting had been distributed and were amended following their
distribution. He asked for additions or corrections and entertained a
motion for approval of the Minutes as amended. Mr. Ulmer moved approval.
Mr. Chellgren seconded the motion, and it passed.

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

       President Wethington called on Professor Christine Havice, Director
of the Honors Program, to make a presentation to the Board about the Honors
Program.

       Professor Havice began her presentation by asking for a moment of
silence to express condolences to the family, colleagues and students at
East Carter High School where there had been a tragic slaying on January 18.




 




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       Professor Havice reported that the Honors Program is one of the
oldest in the country, founded in 1961 to attract top students by

       - providing a small class format in which students can be active
          learners and participants,

       - providing interdisciplinary perspectives which stress
          connections, as well as differences, among questions and issues
          in the humanities,

       - encouraging individual exploration and development which is
          possible with lower student-teacher ratio, and

       - stimulating critical thinking appropriate to the level of
          intellectual maturity and experience of the students.

       She said that the Honors Program has long been noted as an important
part of both the academic and residential life experience at the University
of Kentucky. She reported on recent innovations in the Residence Hall
programming and noted that the Honors Program has increased 40% in the past
three and one-half years.

       Professor Havice introduced first-year students Jane Ann Bardin,
LaMer Kyle-Reno, Phong Doan and Mark Blair who were in the audience and
asked them to stand and be recognized. They were given a round of
applause. She said that the students would be available following the
Board meeting to talk about their experiences in the Honors Program and
respond to any questions.

       She continued her presentation by reporting that the Honors Program
students are first-rate students from almost every county in the State of
Kentucky, half the states in the union, the District of Columbia, and
several foreign countries. This group of students includes National Merit
Finalists and Singletary Scholars.

       She said that the Honors Program students choose majors and careers
that reflect colleges on the entire campus, noting that the Honors Program
is a microcosm of the University itself. She explained that the students
must enroll in four colloquia during the first two years (one per
semester). These colloquia take an interdisciplinary approach to the
humanities and include significant writing instruction and practice, as
well as other communication skills. She said that the students must also
complete a final Program requirement in their junior and senior years by
enrolling in a special 300-level interdisciplinary seminar or by completing
a long-term Independent Project. Professor Havice commented that a large
number of the students go on to Graduate School or attend a professional
school.

       She reported that the faculty members share appointments with
various departments and mentioned some of the numerous awards that the
faculty have earned.

       Following a report on their organized activities, she invited the
members of the Board to visit the residence hail and take part in any of
their events.




 




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       President Wethington thanked Professor Havice for her presentation.
He reiterated that the Honors Program students do go on and achieve success
and recognized Trustee Chellgren as having been a student in the Honors
Program.

       President Wethington reviewed the following items in PR 1:

       1.   A buyer's guide to colleges lists the University of Kentucky
             among the top 250 colleges in the country.

       2.    Grants and contracts are up 17 percent for the six months
             ending December 31, 1992.

       3.    The Community College System has initiated a Strategic
             Planning Project designed to position the colleges for a major
             resource development effort.

       4.    The University of Kentucky Hospital has performed its 1,000th
             kidney transplant.

       He asked the members of the Board to review the other items in the
report at their leisure.

       President Wethington continued his report to the Board by giving a
slide presentation on the review of the structure and staffing in the
University of Kentucky. He said that the University Strategic Plan
indicates that the University's organization, values and management
processes should support the realization of University goals in an
efficient and effective manner and that the University structure, policies
and procedures should be assessed periodically to ensure their
responsiveness to changing goals and directions. Also, the recent
University Self-Study and the Reaffirmation Cormnittee Report urged that the
University undertake a careful and thorough study of the administrative
structure with this review focused on the clearer definition of central and
sector functions, more effective management responsibility for
institutional effectiveness functions, and possible achievement of some
economies and efficiencies.

       He said that recent budget reductions have necessitated a critical
look at structure and staffing at the University. He reminded the Board
that state government budgets were reduced by $85 million in October 1991,
with the recurring reduction for the system of higher education established
at $31.7 million. The program reduction to the University of Kentucky's
University System was established at $11.9 million and at $3.3 million for
the Community College System. In addition to that $15.2 million program
reduction, the 1992-93 state appropriation for the University System
included an additional reduction of $11.5 million, for a total program
reduction of $26.7 million, nearly 10% of the state appropriation in the
University System and 5% in the Community College System.

       President Wethington said that in dealing with those budget
reductions, the fundamental objective was to implement them in the least
damaging manner to the University with the highest priority placed on
protecting academic programs (instruction, research and service), and




 




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University employees' jobs and salaries. He said that he had committed to
the Board, as well as to University faculty and staff, that considerable
effort would be devoted during 1992-93 to a review of the University's
administrative structure and staffing patterns to ensure that resources
were being utilized as effectively as possible to support the primary
mission of the University and to preserve and enhance funding for academic
programs wherever possible.

     He reported that the restructuring and staffing review had four
primary purposes:

     1.   to respond to ongoing strategic planning commitments to ensure
          that the University's organization, values and management
          processes support the realization of University goals in an
          efficient and effective manner;

     2.   to ensure, in light of the recent reductions, that University
          resources are being utilized as effectively as possible to
          support the primary mission of the University and that the budget
          reductions don't adversely impact the academic program any more
          than absolutely necessary;

     3.   to review the appropriateness of University staffing patterns and
          levels; and

     4.   to address the questions presented by the Self-Study and
          Reaffirmation Committee reports concerning the University's
          administrative structure. (The Southern Association of Colleges
          and Schools has reaffirmed the accreditation of the University.)

     President Wethington reminded the Board of his commitment to them at
the June 1992 meeting to review the University's administrative structure,
staffing patterns and workload during 1992-93. He informed them that he
had directed the chancellors and vice presidents to initiate that process
within their respective areas on July 1, 1992. Also, he appointed a
broad-based faculty committee to review and make recommendations to him on
a faculty workload policy for the University System. The chancellors and
vice presidents were required to put in place committees to review their
respective units at all levels. If structural issues were raised that
crossed sector or vice presidential lines, those issues were to be
discussed and agreed to between or among chancellors and vice presidents
before being proposed to the President. He said that organizational issues
which were raised and which were University-wide in nature were to be
submitted directly to him. From July through mid-December, each of the
chancellors and vice presidents conducted a participatory restructuring
review within his/her area.

     He explained the individual review process for the Community College
System, the Medical Center, the Lexington Campus and the vice presidential
areas. He noted that a very broad cross-section of University faculty,
staff, and students participated in the restructuring review of the
organization. He said that all of the preliminary reports were submitted
to him on December 15th, including the Faculty Workload Committee's
preliminary report for implementation during the Spring Semester of 1993.
He reported that his Cabinet held several day-long sessions in December and
January discussing these preliminary reports at length.




 





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     President Wethington then reviewed the actions proposed in the Plan of
Action which are to be completed by July 1, 1993, unless an alternative
completion date is indicated. The Plan of Action consisted of changes in
the University administrative and academic structure and changes in
administrative and academic processes.

     He reported that the extensive review, discussions and recommendations
throughout the University identified a number of organizational
alternatives for the top level administrative structure of the University;
therefore, a consultant(s) will be employed to review and recommend on the
most appropriate University administrative structure. The consultant(s)
will review the various recommendations that came from the University
internal review as well as options for administrative organization that may
not have been suggested by the internal review. He said that he was
committed to undertake such a review since the Self-Study and the Visiting
Committee Report favored employing an outside consultant(s). It is his
intention to employ a consultant in the near future and have the review
completed and any action taken prior to the beginning of the Fall Semester
1993.

     President Wethington continued his presentation with a report on the
staffing review. He said that in July of 1992 he asked each chancellor and
vice president to review staffing patterns in his/her respective area as a
part of the restructuring review to determine if the levels of staff
support were appropriate to accomplish the unit's goals and those of the
University. He explained that because of the good data available on
staffing from 1975, this year was used as a base for the review.

     He reported that there had been an increase of 658 faculty (144%) and
526 staff employees (148%) since 1975 in the Community College System.
These increases relate to increased service levels resulting from a 165%
increase in enrollment during the same period. As a result of the October
1991 budget reductions, there have been 16 staff positions and 18 faculty
positions eliminated in the Community College System.

     He said that the available data showed that there has been an increase
in the University System of 171 faculty (12%) and 886 staff (21%) from 1975
to 1991. As a result of the October 1991 budget reductions, there have
been 441 staff positions and 100 faculty positions eliminated in the
University System. Based on this staffing review, it is concluded that
current overall faculty and staff levels in the University System are
supported by enrollment growth (7%), planned program growth, research
program growth, and special state appropriations for specified new programs
or program enhancements.

     He reminded the Board that the decrease in positions occurred as a
result of vacancies in order to preserve people in their jobs and not have
employees laid off.  He said that 575 positions funded on state funds had
been taken out of the budget and emphasized that they had not been taken
from external contracts and grants. He noted that the entire staffing
review and the elimination of positions occurred concurrently.

     President Wethington referred back to the increases in staff since
1975. He mentioned the enrollment growth and said that there had also been
some program growth.  He noted that the University now has a Vice President
for Research and Graduate Studies and a Vice President for Information




 





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Systems. These positions were deliberately established to emphasize functions
which created the need to employ additional staff. He reminded the Board that
the University had received some special state funding for new programs such
as:  the Robotics Center, the rural health initiative, and the energy lab.
These are obviously big programs that have created the need to employ staff.
He then noted that the staff area had been impacted the most in the
elimination of positions.

     President Wethington provided a summary of the financial impact of the
budget reduction and restructuring plan and elaborated on the individual items
in the summary.

     Position Eliminations                                     $14.6 million
     Overtime Work and Part-Time Hiring Reduced                    .7 million
     Travel, Printing and Operating Expenses Reduced              7.1 million
     Equipment Purchases and Renovations Reduced                   .6 million
     More Stringent Utility Conservation Programs Implemented      .5 million
     Contingency Reserves Reduced                                 1.1 million
     General Fund Expenses Moved to Other Fund Sources            2.1 million
     Restructuring-Reallocations                                  2.6 million
            TOTAL                                              $29.3 million

     He said that the 2.6 million is a conservative figure for the
restructuring moves reflected in the report. Any dollars generated as a
result of the restructuring process will be considered for primary program
priorities when preparing the 1993-94 Operating Budget. He expressed hope
that additional dollars would be available to apply to primary program areas
and/or salary increases.

     President Wethington informed the Board that this report would be sent to
all full-time faculty and staff in the University, including the Coimmunity
College System.

     He reported that the administration is ready to move on the completion of
the Strategic Plan, the preparation of the 1993-94 Operating Budget and the
preparation of the Biennial Budget Request for 1994-96. He stressed the
importance of the 2% that the University has been asked to hold for another
possible budget cut and said that he hoped it would not be cut from the
University's budget. He asked the members of the Board to advocate for the
support of higher education and, in doing so, to indicate that the institution
has managed its two previous budget cuts, has lowered its budget base, has
seriously looked at itself, and does need financial support to accomplish the
objectives that, in his opinion, the Commonwealth wants the University to do.
He said that it is important that the University start showing some increases
in its budget to reflect that the institution is important and to be able to
reward the faculty and staff for a job well done.

     In conclusion, he said that this is a report to the Board of actions the
administration has taken in conjunction with faculty and staff in a
participatory process for managing the institution in a fashion that he hopes
the Board feels has lead to a determination of priorities inside the
University.  He thanked the Board for their patience in listening to the
report.




 





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     Mr. Wilcoxson and Mr. Sturgill commended President Wethington, the
faculty and staff, the students, and committee members for the good job and
hard work that they have done in trying to meet the demands of the budget
reductions.

     In anticipation of questions from the public, Mrs. Bell asked for an
explanation about the recommendation to eliminate degree programs. Chancellor
Hemenway explained the process for examining the total curriculum and
indicated that the programs discussed were from faculty recommendations.
Chancellor Bosomworth pointed out that while certain programs would be
eliminated, many of the functions in those degree programs would be captured
in more broad based programs in other areas of the University. Chancellor
Hemenway said that there would be a considerable amount of deliberation about
the degree programs before any were eliminated.

     Governor Breathitt asked for further comments or questions. He expressed
appreciation to President Wethington for the straightforward way he, his
faculty and staff, and the university community have approached the situation
and for making this report available to the public so that everyone will have
an understanding of the process and the results of the whole effort.

     E.  Appointment of Director. University of Kentucky Lucille Parker
Markey Cancer Center (PR 6A)

     President Wethington said that he would like to change the order of the
action items and address PR 6A first. He reported that PR 6A is a
recommendation that Kenneth A. Foon, M.D., be named Director of the Lucille
Parker Markey Cancer Center, effective January 1, 1993. He said that the
University had conducted a nationwide comprehensive search for a new
director. He briefly reviewed Dr. Foon's impressive credentials, noting that
his research background is at the very forefront of health care research
today. Dr. Powell made a motion to approve the appointment of Dr. Foon. Her
motion, seconded by Mr. Rose, carried unanimously. Dr. Foon was in attendance
and was asked to stand and be recognized, following which he received a round
of applause. (See PR 6A at the end of the Minutes.)

     F.   Personnel Actions (PR 2)

     President Wethington reported that PR 2 reflects the personnel changes
that have been made by the administration and those recommendations that must
be approved by the Board. He recommended that PR 2 be adopted. Mrs. Weinberg
moved approval. Her motion was seconded by Mr. Chellgren and passed. (See
PR 2 at the end of the Minutes.)

     G.  Proppsed New Bachelor of Arts Program in Foreign Languages and
International Economics (PR 3A)

     President Wethington recommended that the Board of Trustees authorize the
approval of the new degree program, Bachelor of Arts in Foreign Languages and
International Economics, for submission to the Council on Higher Education.
Mr. Chellgren moved approval. The motion, seconded by Mrs. Bell, carried.
KSee PR 3A at the end of the Minutes.)




 





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     H.   Proposed Amendment to the University of Kentucky Tobacco and
Health Research Foundation. Inc. Articles of Incorporation (PR 3B)

     President Wethington recommended that the proposed amendment to the
Articles of Incorporation of the University of Kentucky Tobacco and Health
Research Foundation, Inc. be approved by the Board. He noted that Dr. Magid
had worked with the Board to change the composition of the membership of the
Board. Mr. Ulmer moved approval. Mr. Chellgren seconded the motion and it
carried. (See PR 3B at the end of the Minutes.)

     I.  Candidates for Degrees - Communitv College System (PR 4A)

     President Wethington recommended that the degrees specified on the list
attached to PR 4A be awarded to the persons named, upon certification that the
requirements for those degrees have been satisfactorily completed. Professor
Sistarenik moved approval. His motion, seconded by Mr. Rose, passed. (See PR
4A at the end of the Minutes.)

     J.   Acceptance of Interim Financial Reporti r the University of
Kentucky for the Six Months Ended December 31. 1992 (FCR 1)

     Mr. Hardymon, Chairperson of the Finance Committee, reported that the
Finance Committee had met that morning and reviewed twelve items for the
Board's consideration. He said that FCR 1 is the Interim Financial Report.
It shows that the realized income as of December 31, 1992 is 51% of the
1992-93 estimate and expenditures/commitments at that time is 49% which
illustrates that the University has a solid performance in relation to the
budget. Mr. Chellgren made a motion to approve FCR 1. Mr. Ulmer seconded the
motion, and it carried. (See FCR 1 at the end of the Minutes.)

     K.   Capital Construction Report (FCR 2)

     Mr. Hardymon said that FCR 2 is the Capital Construction Report. He
reported that the Finance Committee had reviewed the report and it is very
complete. He recommended that FCR 2 be accepted. Mr. Ulmer moved acceptance
of the report. Mrs. Weinberg seconded the motion, and it passed. (See FCR 2
at the end of the Minutes.)

     L.   Approval of Lease (FCR 3)

     Mr. Hardymon said that FCR 3 is a lease that exceeds $30,000 and requires
Board approval. The lease involves Hazard Community College and is for lease
space for expansion in the old Hazard Post Office building. He recommended
approval of the lease. Mr. Chellgrer. moved approval. His motion, seconded by
Mr. Rose, carried. (See FCR 3 at the end of the Minutes.)

     M.   1992-93 Budget Revisions - Central Administration (FCR 4)

     Mr. Hardymon said that FCR 4 involves budget revisions to the 1992-93
approved budget. He noted that there is an explanation of all of the changes
in the documents and the increase in revenues generate the need for the
increase in expenditures. Mr. Wilcoxson moved approval of FCR 4. Mr.
Chellgren seconded the motion, and it passed. Governor Breathitt commented
that there was a full discussion on the budget at the Finance Committee
meeting. (See FCR 4 at the end of the Minutes.)




 





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     N.   Acceptance of Gift from the W. Bruce Lunsford Foundation and
Vencor. Inc. (FCR 5)

     Mr. Hardymon reported that FCR 5, 6 and 7 are about very nice gifts that
have been given to the University. FCR 5 is a gift from Mr. Bruce Lunsford,
Chief Executive Officer Of Vencor, Inc. and a graduate of the University of
Kentucky. His gift of $300,000 is to the Commonwealth Library Campaign and
the Sanders-Brown Center on Aging. He recommended approval to accept the
gift. Mr. Chellgren moved approval. The motion, seconded by Mr. Rose,
carried unanimously. (See FCR 5 at the end of the Minutes.)

     President Wethington noted that Mr. Lunsford is a former member of the
Board of Trustees and expressed appreciation for his gift to the University.

     O.   Acceptance of Gift from the Knight Foundation (FCR 6)

     Mr. Hardymon said that FCR 6 asks for the acceptance of a gift of
$200,000 from the Knight Foundation to the Commonwealth Library Campaign. He
reported that $100,000 of the gift will be applied to the building fund and
the remaining $100,000 will be applied to the National Endowment for the
Humanities Book Endowment Fund. Mr. Ulmer moved approval of FCR 6. His
motion, seconded by Mr. Chellgren, passed. (See FCR 6 at the end of the
Minutes.)

     President Wethington thanked the officials at the Herald-Leader, Lewis
Owens, Tim Kelly and David Holwerk, and others who pushed strongly for this
grant to the University. He noted that Creed Black, who previously served as
publisher of the Herald-Leader, is Chief Executive Officer of the Knight
Foundation. He expressed appreciation to all of those who helped achieve the
gift.

     P.   Establishment of Quasi-Endowment for the Doris Hatchell Memorial
Fund (FCR 7)

     Mr. Hardymon reported that the University had received a check in the
amount of $76,460.99 from the estate of Ernest Hatchell which represents a
bequest to the College of Nursing to be used for nursing scholarships.
President Wethington noted that this is the largest private gift that has been
received by the College of Nursing. He commended Dean Carolyn Williams for
receipt of this gift and asked her to stand and be recognized, following which
she received a round of applause. Professor Bratt moved that the Board
approve FCR 7. The motion was seconded by Mrs. Sims and carried unanimously.
(See FCR 7 at the end of the Minutes.)

     Q.   Resolution of the Board of Trustees of the University of Kentucky
Approving the Report of the Director, Auxiliary Services. University of
Kentucky. Relating to the Physical Inspection of the Housing and Dining
Buildings and Appurtenant Facilities of the University's Housing and Dining
System (FCR 8)

     Mr. Hardymon recommended that the Board approve the report of the
Director of Auxiliarv Services relating to the physical inspection of the
housing and dining buildings and facilities of the university's housing and
dining system. Ile commented that the next action item will be to accept a bid




 





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for a loan for revenue bonds for use in improving these facilities. The
documented letter from the Director states that the facilities are in good and
tenantable state of repair. The Finance Committee reviewed the documentation
and recommends approval of FCR 8. Mr. Wilcoxson moved approval. The motion,
seconded by Mrs. Sims, passed. (See FCR 8 at the end of the Minutes.)

     R.   Resolution of the Board of Trustees of the University of Kentucky
Accepting the Successful Bid for the Purchase of University of Kentucky
Housing and Dining System Revenue Bonds. Series M (FCR 9)

     Mr. Hardymon said that FCR 9 was the review of any bids that might be
received as a part of the process for FCR 8. He explained that the University
had to go out for bids to determine whether there was a better interest rate
than the government loan rate. He reported that bids were to be received at
10 a.m. and no bids were received. Therefore, the U.S. Department of
Education 5.5% guarantee on the $2,866,000 of revenue bonds seemed to be the
best approach. He said that the Finance Committee recommends the Board
approve FCR 9. On motion made by Mr. Chellgren, seconded by Mrs. Weinberg and
carried, it was approved. (See FCR 9 at the end of the Minutes.)

     S.  Resolution of the Board of Trustees of the University of Kentucky
Accepting the Successful Bid for the Purchase of $20,970.00 (Plus or Minus
up to 10%) Principal Amount of University of Kentucky Hospital Refunding
Revenue Bonds. Series A (Second Series), Dated January 1. 1993 (FCR 10)

     Mr. Hardymon reported that FCR 10 was brought about by the low interest
rates that are now available. The Finance Committee had a review made of some
of the outstanding bonds to determine whether they should be refinanced. He
reminded the Board that this report was given to them at the last meeting and
with the Board's approval the $20,970,000 University of Kentucky Hospital
Refunding Revenue Bonds, Series A, was put out for bid. Four bids were
received at 10 a.m. and Hilliard & Lyons' bid of 5.35% was accepted by the
Finance Committee. He reported that this refinancing will provide $1,534,000
gross interest savings, and he recommended approval. Mrs. Sims moved
approval. The motion, seconded by Mr. Rose, passed unanimously. (See FCR 10
at the end of the Minutes.)

     T.  A Resolution Authorizing the Issuance of University of Kentucky
Consolidated Educational Buildings Refunding Revenue Bonds, $Edies  
(Second Series). Dated March 1. 1993, of the Board of Trustees of the
University of Kentucky (FOR 11)

     Mr. Hardymon recommended that the Board approve a Resolution authorizing
the issuance of $6,340,000 of University of Kentucky Consolidated Educational
Building Revenue Bonds, Series F (Second Series), dated March 1, 1993. He
explained that this is another refinancing of bonds and the date to accept
bids will be March 2. He said that the estimate on this savings is obviously
lower because of the smaller number of dollars, but it is still a substantial
potential savings. Mr. Ulmer moved approval. Mr. Wilcoxson seconded the
motion, and it passed. (See FCR 11 at the end of the Minutes.)




 





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     U.   Approval of Section 125 Salary Reduction Plan (FOR 12)

     Mr. Hardymon said that the Finance Committee was recommending that the
Board approve additional tax sheltered employee benefit plans under Internal
Revenue Code Section 125. He reviewed the plans and said that, in his
opinion, this was a very attractive way to go, particularly with the health
care demands on everyone. He noted that Hewett and Associates had been
advising the University about the plans and assisted them with the document.
On motion made by Mrs. Sims, seconded by Professor Bratt and carried, FCR 12
was approved. (See FCR 12 at the end of the Minutes).

     Governor Breathitt mentioned that there had been a very broad attendance
of Board members at the Finance Committee meetings and expressed appreciation
to them for their interests.

     V.   Meeting Adjourned

     There being no further business to come before the Board, the meeting
adjourned at 2:51 p.m.

                                        Respectfully submitted,



                                        Lois Combs Weinberg
                                        Secretary
                                        Board of Trustees

(PR's 2, 3A, 3B, 4A, and 6A; and FCR 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, and 12
which follow are official parts of the Minutes of the meeting.)



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                                                Office of the President
                                                January 19, 1993









Members, Board of Trustees: