14 University of Kansas

operating costs of the Engineering Experiment station for the entire biennium,
of the Military Science building after its opening in December, 1943, and of
the Mineral Resources building after its release by the army on October 31,
1944. Reserve balances cannot carry the load any longer.

Increased operating costs are estimated to total $57,400 on the current
market, and are distributed as follows:

(1) Utilities for three new buildings, based on actual costs for 1943-’44 as audited by

Hoth’ Army anid VN AVY.-3 es ccs Scions + wie ime wee ois pei onle ss See is belo OO pote SMS piyiaras-5'pe $15,000
Increased fuel cost for balance of physical plant.............. ee eee eee ee eee 10,000
Cost of electricity which must be purchased (above the expenditures in 1939- 40), 7,000
Increased cost of maintenance and repair materials.............0-.-+ eee eeeee ao
Increased telephone rates charged by Southwestern Bell Telephone Company.... 2,400
Cost of maintenance materials for new buildings............--.eeeeeeeeeeees 4,000
Operating costs. of new. extension Centers... 22.2.6. cece ccc ett t eee eeees 6,000
Increaseéd*.cost. Of 4operating:. TAGIO/ StALION: 5. ois Ss ousis oN ne vig eo wi binle ee Wel sree s 1,000

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Less than one-half of the electricity used by the University can be generated
by the University power plant. For years the University has been purchasing
an increasing amount of electric power; the cost in 1943-44 was $24,896.58
compared to $13,125 in 1939-40, an increase of over $11,000. If deduction is
made for the cost of electric power used solely on the war training programs,
the expenditures are still $7,000 above those of 1939-40. This is the figure
listed above under item (3).

A request for $2,400 is listed above under item (5) to cover the increased
telephone rates which will become effective on July 1, 1945. The University
is the only state institution which is charged at a reduced rate for telephone
service, and the telephone company has served notice of intent to charge the
standard tariff with the beginning of the new fiscal year.

Attention is called to the fact that the current appropriation for Mainte-
nance and Repairs is $52,600 a year less than it was in 1931-32 ($275,000 com-
pared to $327,500.) In the meantime seven buildings have been added to the
campus and the cost’of maintenance materials has increased nearly one-third.
This means that the quality of service has inevitably been diluted. In order
to maintain the physical plant and the instructional and administrative depart-
ments even on a minimum basis, fee income intended solely for instructional
purposes has had to be diverted to the maintenance budget. The request of
the University for an increase in the Maintenance and Repairs appropriation |
is designed to correct this situation.

c. Wage Increases. Adjustments in the wages of members of the main-
tenance staff amounting to $5,000 are considered necessary to maintain morale
and recognize service above the average.

RECAPITULATION
New positions: 2566 Gas op wipes ie as Uh pt dees $9,600
Increased: operating. Costs. 4. ees eg aie ees Soe 57,400
Wapit tnereasen i252 ee ere hi beh int ieee sg 5,000

DOU oo oet oo Soe ee vy et Ce sees en os ee ES $72,000