Dear Colleagues,

As we developed working budget recommendations for the campus for
l999-2000, we were careful to share our revenue estimates and our priority
expenditure increase requests.  As you recall, revenue is primarily based
on state appropriations and student fee collections.

We had "assumed" no increase in state appropriations for l999-2000 in our
planning to date.  As you recall we worried out loud about a potential $3
million swing in state appropriations.  Governor Sundquist had presented a
modified THEC recommendation that would have generated approximately
$1,350,000 more in state appropriations IF his revenue enhancement proposal
were adopted. On the other hand, he had indicated that it might be
necessary to CUT UTC's appropriations by as much as $1,500,000 IF no
revenue enhancement was adopted.

You will further recall that we did assume a likely student fee increase
proposal to be sent to the University Board of Trustees, perhaps ranging
from  8-10%.

You will recall that we based the budget planning to date on 0+/-
difference in state appropriations.  It now seems that there was, indeed,
some good news to the state fiscal efforts after all.  We seem to have been
funded that EXTRA $1,350,000 requested by President Johnson in behalf of
the Trustees.  We await the actual printing of the legislative
appropriation bills.  President Johnson will be taking the UTC proposed
budget under consideration using the best interpretation of the legislative
action.

It is also possible that the working budget assumptions of proposed fee
hikes of 8-10% might be reduced to 6-8% for consideration of the Trustees.

As of this date, we are very pleased with the strong possibility of an
extra million for l999-2000.  It will enable us to resume University Budget
Committee deliberations with that extraordinarily good news.  Also at issue
for campus deliberation will be to revise downward perhaps the proposed
increase in student fees which we might recommend to the President and the
Trustees.

Our Committee actions will resume this week, as soon as we can find most of
our quorum for that Committee.  You will recall that we left the University
Budget Committee with many unfunded and partially funded priorities for the
campus.

Thanks to our Legislative contingent and the Governor for insisting that
the catch-up funding for UTC based on Performance Funding and closing the
gap on a comparable prorated share of THEC formula be provided for UTC.

It makes a much better year possible for l999-2000!

Bill Stacy