UK/ U of L Presidents Testify

{Frankfort, Kentucky}...Governor Steve Beshear has proposed budget cuts for most state agencies of about 8 percent and cuts of about 6.4 percent for post-secondary education. Under the proposal before lawmakers, UK could face $19.4 million in state funding reductions in the two fiscal years beginning in July, while U of L could face about $9 million in cuts. University of Kentucky President Eli Capilouto and University of Louisville President James Ramsey testified Thursday before the House Subcommittee on Postsecondary Education about steps their institutions are taking to cut costs, boost savings and become more self-sufficient. Capilouto told lawmakers that UK has achieved $118 million in savings since 2001-2002 with measures such as instituting a wellness program for employees and avoiding duplication of expenses. He said the university was committed to ongoing work on achieving savings and was seeking to generate greater income through research. Ramsey told lawmakers that U of L is using its property assets to generate more income, having even leased space on its Shelby Campus to Churchill Downs, moving to purchase medicine in bulk with other schools to lower health costs and conducting energy audits on its buildings. Ramsey said U of L has cut about $111 million on a recurring basis out of its budget and is in the middle of a capital fundraising campaign that has a goal of $1 billion in private fundraising by 2014.