Repository: UIHistories Project: Board of Trustees Minutes - 1938 [PAGE 854]

EXTRACTED TEXT FROM PAGE:

852

BOARD OF TRUSTEES C O N F E R E N C E WITH G O V E R N O R H O R N E R

[June 22

President Mayer read a letter and presented a report on a conference he had held with Governor Horner on June 14, concerning the appropriation for a building to replace University Hall, the proposed legislation to enable the University to finance the Student Center and Dormitory projects, and the proposal to secure federal grants for the construction of the additions to the Library and the McKinley Hospital. President Mayer stated that the Governor had agreed to a plan whereby, on the basis of the appropriation of $700,000 for the building to replace University Hall, federal grants might be secured to provide for the construction of the additions to the Library and the Hospital. President Mayer reported further that Governor Horner had indicated that he would consent to the introduction of the enabling act to provide for the Student Center and Dormitory projects, on the following conditions:

1. Bonds shall not be an obligation of the State and the bill shall so specify. 2. No debt incurred for the construction of these buildings may be paid from the University Income and Revolving F u n d ; nor shall the Board ask for direct appropriations for this purpose. 3. T h e act shall include a provision that the payment of principal and interest on the bonds shall be limited to the income received from the buildings provided in this act, or gifts for that purpose. 4. T h e maximum allowable interest rate in the bill should be lower than the six per cent specified in the draft submitted to the Governor. 5. The University shall send a fair questionnaire to the members of the Student Senate, asking their opinion as to whether they, as representatives of the student body, are in favor of a compulsory increase in student fees for a Student Union Building, not to exceed $10.00 per year. 6. T h e Board shall endeavor to obtain a federal grant to add to the $700,000 appropriation for the construction of a building to replace old University Hall. 7. The Board shall agree that in the preparation of the biennial budget for 1930.-1041 it will confer with the Governor and will not introduce any capital items not previously approved by the Governor.

Mr. Adams reported that he was of the opinion (based on a conversation with the Governor later than that of President Mayer), that unless the Board would agree to all the conditions he had set forth for the Student Center and Dormitory projects, the Governor would not support the use of the appropriation to replace University Hall as a basis for federal grants for the additions to the Library and the Hospital, and that there was doubt in his mind as to the fate of the appropriation to replace University Hall unless the Board agreed to the conditions stated above. This matter was discussed for some time. Action was deferred until later in the day. Mr. Cleary withdrew, stating that he would return to the meeting later.