.report on FBI Investigation on Campus

        President Singletary reported that the University had released a class
 roll to the FBI which had caused concern on the campus as expressed in a reso-
 lution adopted by the University Senate on November 16, 1970 and a statement
 from the local chapter of the American Association of University Professors.
 Copies of the resolution and the AAUP statement were read and are included at
 the end of the Minutes.

       In answer to the initial concern expressed by both students and faculty,
President Singletary said he had issued a statement that in the future only the
President, or his designated representative, would have the authority to release
class rolls. It is possible that the Board of Trustees may be requested to assist
in seeking modification of the existing statutes so that they may cease to con-
stitute a threat to academic freedom at the time of the next legislative session.
In the meantime, the University of Kentucky will abide by the law but an effort
will be made to provide reasonable security about normally confidential records
to the extent possible under the law.

       Steve Bright commended President Singletary's statement and agreed that
there was great concern on the part of the students relative to the confidentiality
of their records.

       K. Progress Report on Internal Budget Preparations for 1971-72

       President Singletary said that the University is currently preparing the
operating budget for the second year of the biennium. The recent Carnegie Report
on the financial status of institutions of higher education listed three categories
of institutions: (1) those in real financial trouble; (2) those heading for trouble;
and (3) those not headed for trouble. The University of Kentucky probably falls
within group 2 for there isn't enough money to do those things we want to do and
are doing. The 1971-72 budget is barely a continuation budget and it will be
possible to hire very few new people to care for the increased enrollment expected,
He closed by saying that this was merely a progress report and that the budget
would not be presented to the Board for action until April or May.

       L. Interim Financial Report (FCR 1)

       Mr. Hillenmeyer said the Finance Committee recommended that the
interim financial report be accepted and so moved. His motion was seconded by
Mr. Milner, and without dissent the financial report covering the period ending
October 31, 1970 was accepted and ordered to record. (See FCR I at the end of
the Minutes. )