improvements in retention will strengthen the budget. Dr. Erin Wheeler and her team are actively tracking the 2014 and 2015 cohorts to make sure that those students stay enrolled. He sees the potential to increase the retention rate to 70% from 60%. He also stated that KSU should be able to bring in more new freshmen and transfers than last year but remarked that last year's data may not provide a reliable comparison. Questions were asked by Board members about the number of total employees and whether KSU had adequate personnel resources. President Thompson said that the total employee count is statistically flat. Mr. Rush also provided more information on employee counts for the Board. He stated that he believes he does not have sufficient staff to fill all necessary positions in Business Affairs. He is working on hiring new staff that can improve the quality of work in business affairs.

Mr. Rush reviewed the 2016-17 budget for the Board and highlighted specific areas. He emphasized that there were no housing or board fee increases from last year. In regard to expenses, he stated that fixed costs have increased primarily in the area of retirement contributions. Health care contributions have decreased in terms of employer contributions.

Discussion ensued regarding student activity fees. Regent Whitehead asked how various student fees were to be used and what each student gets for those fees. Mr. Rush explained the purpose behind various fees charged to students. President Thompson stated that Student Affairs will be strengthening its efforts to provide relevant educational programming in its student activities so that students get more value for their student fees.

In regard to Homecoming, Chairperson Bearden emphasized that Homecoming must be controlled by University professional staff, not students or others. President Thompson and Mr. Rush communicated that after last year's Homecoming, KSU administration has put internal controls in place to make sure that administrative professionals have control over the process, including spending.

Mr. Rush noted that page 23 of the budget was misnumbered and should actually be page 13. From that point on, the pages of the budget correspond to the renumbering of page 13 to page 23.

Regent Whitehead and Regent Henry both remarked that KSU needs to work with more corporations to market products unique to KSU in order to increase revenue. President Thompson stated that he would take action to improve entrepreneurial and development activities for KSU.

Regent Farris asked about the $0 balance in the University Contingency fund. President Thompson said that he intends to increase the amount in this fund. Mr. Rush also stated that there are other budget lines from which he can pull contingency funds. He believes that current staff vacancies will provide additional

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