budget. He also stated that the University's budget is based on conservative enrollment growth figures.

Chairperson Bearden recognized Regent McFayden. He commented that an aggressive grant strategy would also help to increase revenue. Regent Whitehead stated that the University needs a more aggressive fundraising strategy. President Thompson stated that he is taking steps to increase donations to the University.

Tuition will increase modestly for the next year, 0.57% for resident students, and 3.67% for non-resident students. Book costs will be decreased due to the use of electronic textbooks. Each undergraduate student will pay $195 for full access to electronic textbooks. Paper books will be available for students who cannot access the electronic textbooks. However, every reasonable effort will be made by the University to provide access to the electronic textbooks.

Regent Barfield asked about the tuition discount rate compared to sister institutions. President Thompson stated that KSU's discount rate is higher than most institutions but he is working to decrease that rate.

Regent Oldham asked whether the electronic book rate would apply to graduate students. President Thompson responded that electronic books will be available to graduate students but no final decision has been made in regard to graduate the student course materials.

A discussion ensued as to the UNV program and its effectiveness. Dr. Thompson stated that he intends to redirect the UNV program. He emphasized that strengthening this program could have a huge impact on retention and graduation rates.

President Thompson also stated that he intends in the near future to bring the Board a restructuring plan that will use available resources strategically to improve enrollment management and career planning.

Regent Guarnieri inquired as to how the University budget was reduced by $2.2 million. President Thompson stated that most of the savings came from retirements of faculty and other personnel that have not been replaced and savings on health insurance costs. A discussion ensued as to whether the proposed budget would negatively affect cash flow. Vice President for Business Affairs Gregory Rush responded that it would not. He also stated that in the future there will be improvements in accounting procedures so that there are fewer discrepancies between financial statements given to the Board and audited financial statements done by external auditors.

A discussion ensued as to effect of enrollment on the University's budget. President Thompson stated that the budget is conservative. Mr. Rush stated that

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