With the university unable to provide any increase in pay for most of its employees, the UK Board of Trustees approved a $2.5 billion budget Tuesday that will provide one-time payments of up to $1,000 to eligible faculty and staff earning less than $70,000.
In addition to this payment, UK is covering the cost of increases in health care for most faculty and staff members, despite a projected $7 million shortfall.
The 2010-11 budget reflects a 1.4 percent reduction in state support during the fiscal year. State support for UK is down $28.6 million since December 2007, according to a UK news release. With certain costs constantly increasing — utilities, employee benefits, student financial aid — UK is covering the shortfall by reducing budgets for operating expenses like supplies and travel and eliminating vacant positions.
“This budget is far from perfect,” said UK President Lee Todd in a news release. “But I think it is a fair budget — one that acknowledges the economic climate in which we find ourselves, while allowing the university to continue to leverage the momentum our students, faculty and staff have established during these difficult financial times.
“This budget also includes a modest ‘Fighting Fund’ that can be used by the Provost to retain our best and brightest faculty who have been targeted for recruitment by other institutions.”
The board also approved the appointment of Michael Tick as Dean of the College of Fine Arts and Robert Mock Jr. as vice president for Student Affairs.
Trustees accept gifts, pledges
The UK Board of Trustees accepted nearly $1.5 million in gifts and pledges from three donors during its meeting Tuesday.
Alliance Resource Partners and Alliance Holdings GP pledged $1.2 million to create the Alliance Coal Chair in Mining Engineering in the College of Engineering.
A $10,000 gift from the estate of Joanne I. Bell was accepted to create the Joanne I. Bell Discretionary Quasi-endowment in the College of Social Work.
The Don Jacobs Charitable Foundation provided $240,000 to create the Division of Urology Leadership Endowment for Resident Research and Education in the College of Medicine.