Interim Joint Committee on Appropriations and Revenue


Minutes of the<MeetNo1> 4th Meeting

of the 2007 Interim


<MeetMDY1> October 18, 2007


The<MeetNo2> 4th meeting of the Interim Joint Committee on Appropriations and Revenue was held on<Day> Thursday,<MeetMDY2> October 18, 2007, at<MeetTime> 10:30 AM, <Room>at Keeneland Racetrack in Lexington. Representative Harry Moberly Jr, Chair, called the meeting to order, and the secretary called the roll.


Present were:


Members:<Members> Representative Harry Moberly Jr, Co-Chair; Senators Tom Buford, Carroll Gibson, Denise Harper Angel, Ernie Harris, Alice Forgy Kerr, Bob Leeper, Vernie McGaha, R. J. Palmer II, Robert Stivers II, Gary Tapp, Elizabeth Tori, and Johnny Ray Turner; Representatives John A. Arnold Jr, Carolyn Belcher, Dwight D. Butler, Larry Clark, James R. Comer Jr, Jesse Crenshaw, Danny Ford, Derrick Graham, Jimmie Lee, Mary Lou Marzian, Lonnie Napier, Don Pasley, Rick Rand, Charles Siler, Arnold Simpson, John Will Stacy, Tommy Turner, Jim Wayne, Robin L. Webb, and Brent Yonts.


Guests:  Nick Nicholson, President and CEO of Keeneland; Jack Kelly, President of the World Equestrian Games 2010; Mayor Jim Newberry, Mayor of Lexington; Dr. Lee T. Todd, Jr., President of the University of Kentucky; Mike Gobb, Executive Director of the Bluegrass Airport; and John Nicholson, Executive Director of the Kentucky Horse Park.


LRC Staff:  Pam Thomas, Charlotte Quarles, John Scott, James Adams, and Sheri Mahan.


Representative Arnold moved to approve the minutes from the previous meeting as written.  Representative Pasley seconded the motion.  The motion passed by voice vote.


Mr. Nick Nicholson, President and CEO of Keeneland, welcomed the committee to Lexington and Keeneland.  Mr. Nicholson then introduced Mayor Newberry.


Mayor Newberry introduced the other members of the panel:  Jack Kelly, President of the World Equestrian Games 2010; Mike Gobb, Executive Director of the Bluegrass Airport; Dr. Lee Todd, President of the University of Kentucky; and John Nicholson, Executive Director of the Kentucky Horse Park.  Mayor Newberry stated that the projects that will be discussed impact the entire region.  The mayor discussed the  projects needed for the Kentucky Horse Park in preparation for the World Equestrian Games.  He discussed the request for Bluegrass Airport to build a new runway, and increase parking and commercial facilities.  The airport requested $9 million which would be used to match a $9 million grant from the FAA. Finally, Mayor Newberry discussed the proposed Newtown Pike extension, which could reduce downtown traffic by up to 40%.  The project would cost $40 million, but is expected to improve interstate access to the University of Kentucky and the south end of the city.


Next, Mr. John Nicholson, Executive Director of the Kentucky Horse Park, discussed the current and possible future funding for projects and the park.  He discussed the importance of the 2010 World Equestrian Games to the park and to the region.  He provided details about the proposed outdoor stadium, for which the design phase has been completed. He stated that the park will be seeking $24 million in the upcoming session for completion of the project.  Mr. Nicholson stated that construction is ahead of schedule on the $4 million exhibition center. 


Mr. Jack Kelly discussed the 2010 World Equestrian Games and the importance of the proposed projects to the success of the games.  He gave a slide presentation illustrating the vision of the Horse Park once all the proposed projects are completed.


Finally, Dr. Lee Todd updated the committee regarding the University's Top 20 Business Plan.  Dr. Todd discussed the activities of the university concerning public health issues.  He stated that UK HealthCare treats over 25,000 patients annually.  The university participates in over 50 off-site cardiovascular clinics every month throughout the state.  The university has created the Markey Cancer Affiliate Network which now has locations in Harrison, Rockcastle, and Rowan Counties. Dr. Todd discussed the program that the College of Dentistry is implementing out in Hopkins County for pregnant women, which provides complete oral health care for the women.  The results have shown that good oral health results in higher birth weights and fewer preterm births.


Next, Dr. Todd discussed economic development initiatives in which the university is currently involved. The university is currently working on interdisciplinary environmental sciences focused on sustainable agriculture, sustainable manufacturing, bio fuels, and alternative energy research.  Dr. Todd stated that the university has established  a Center for Pharmaceutical Research and Innovation with research focused on generating new products with commercial potential.  The university is leveraging $1.3 million grant from the Kentucky Agricultural Development Board to spur entrepreneurship in the state's 19 most tobacco-dependent counties.  Dr. Todd also discussed the university's programs designed to encourage participation in science, technology, engineering, and math (STEM) courses of study.


Dr. Todd discussed outreach project being implemented by the university.   The Appalachian Math Science Partnership is using a $22 million federal grant to narrow the math-science achievement gap and add students into the STEM course of study in 38 eastern Kentucky counties.  He discussed Commonwealth Collaboratives which are 23 community focused research initiatives led by UK faculty and local researchers.  These projects have received $23 million in external funds. 


Dr. Todd discussed the university's progress towards becoming a top 20 research institution.  He discussed the university's total research expenditures, which were $335 million in 2006.  Dr. Todd noted that university awarded 3613 undergraduate degrees in 2006 - 07 with a graduation rate of 60%.  He discussed the addition of  47 new faculty and 7 new academic advisors.  He also discussed additional scholarships being offered by the university.  He discussed the undergraduate and graduate education scores, faculty recognition scores, and research scores for the university.   He stated that cumulatively the university is currently ranked 35th among the 90 public research universities nationwide.


Finally, Dr. Todd discussed the university's 2008 - 2010 budget request.  He stated that the university will need $41.1 million in fiscal year 2008 - 2009 and $45.3 in fiscal year 2009 - 2010.  He stated that the university is requesting $130 million in state bonds to build a second science research building.  Also, the university will request $75 million in state bonds for the Gatton Building complex and money for the equine diagnostic center. 


Representative Wayne asked if the 9% tuition increase reflected in the documents provided would be an annual increase.  Dr. Todd replied that yes, the tuition increase would be 9% annually.


Chairman Moberly thanked the speakers and the members who attended. There being no further business, the meeting was adjourned at 11:50 a.m.