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REPORT ON THE GOVERNOR'S DIRECTIVE WITH RESPECT TO BUDGETARY
CUT-BACKS

The President reported that the University has been directed by the Governor to return to the State certain funds already appropriated, and to cut its expenditures. Under the terms of the directive the University is expected to spend some 6.1 million dollars less than was previously anticipated. University officials contend that the amount of the cut was erroneously computed, and an appeal has been made to restore $1,070,000 of the ordered reduction. The President explained that it may become necessary to lay off a substantial number of employees unless this amount is restored. The University is not to proceed with lay-offs at this time.

The University will reduce expenditures in a variety of ways including not filling faculty and classified position vacancies, (except when the need is critical), reducing out-of-State travel, cutting back overtime, enlarging energy conservation methods, shortening the time certain buildings are open, and deferring maintenance and renovation of facilities.