the Parant Teachers AV3sociationo the meeting of Social Science
Teachers, county school organizations, librarians, the Farm and
Home Convention, Association of Kentucky Colleges, and other organ-

     The financial support of the University was markedly changed
by the action of the last legislature.   I call your attention to
the change because this important point is likely to have bearing
on future provisions for the University.   For some years the Uni-
versity had received one-half of the inheritance tax and 6.7% of
the general property tax.   The funds from these taxes are now di-
verted to the general fund of the State and the University receives
a direct appropriation.   Recently the statement was made by one of
the senators that education was getting too much of the sales tax.
In reality, it gets none of that tax except as it goes into the
general fund of the State.   In addition, it may be said that the
specified appropriation merely took the place of the revenue allot-
ted from the general property tax.

     In 1930-31 the University's general fund income from taxes was
$1,137,000.00, the income for 1934-35 was 40%f less than that of
1930-31.   The legislative appropriations provide $679,000.00.for
general support, $9,000.00 for the Summer Session, $9,000.00 for
repairs, $22,000 for the Public Service Laboratories, 850,000.00
for the support of the Experiment Station, $126,000.00 for Agri-
cultural Extension, $15,000 for the Robinson substation and a sim-
ilar sum for the Western Kentucky substation, and $2,500.00 for
nursery inspection.

     The University is also maintained by student fees, the Fed-
eral government appropriations and miscellaneous receipts.    You
will see when the budget is presented to you that the State provides
60% of the University's income, the Federal government 5%, halls
and dining rooms 10%, student fees 23% and miscellaneous receipts
1%.   The University income showed a very considerable reduction
ix the year 1931-32 and it was found necessary to cut salaries
10%, and expenditures for repairs, materials and the like were ma-
terially cut.   Some repairs and expenditures for maintenance have
been offset by labor furnished by the C. W. A. and some buildings
have been painted and considerable work has been done on walks,
roads and grading.   However, we have not seen our way to purchase
supplies, so that more of such labor could be used. What will hap-
pen next year under the public works program, I have not beer. able
to find out.   The impression is that the states will be allotted
certain sums of money to be spent under the direction of municipal-
ities, counties and institutions, whether by granting loans or
supervised labor, I do not know.   We hlave placed before the State
Planning Board, also the State Public Works Administration a list
of buildings and expenditures for roads, walks and the like amount-
ing to about $3,000,000.   If: we received all the money requested
we should be greatly embarrassed to maintain the buildings.