A $1 billion budget, increased student fees, a faculty tenure policy and a
step toward making the University of Tennessee Medical Center an
independent corporation were approved Thursday by UT trustees.

The board also heard UT President Joe Johnson announce plans to retire June
30, 1999, or "whenever the board of trustees selects and has in place the
next president of the University of Tennessee."

Johnson was appointed president of UT in 1991 and will have 38 years in
public higher education when he retires.

Gov. Don Sundquist, who is chairman of the UT board, said Johnson's career
in public higher education has made a profound difference in the lives of
many people. He asked Bill Sansom, vice chairman of the board, to appoint a
search committee to begin the process of choosing the next president.

In other action, the board appproved Johnson's recommendation to appoint
Jack Britt to vice president for the UT Institute of Agriculture.

Britt succeeds D.M. "Pete" Gossett, who is retiring June 30 after 10 years
in the position.

The board also:

--Increased fees 5 to 8 percent for most students starting fall semester.
At UT-Chattanooga and UT-Martin, the increase will be 5 percent for
in-state students and at UT-Knoxville, 8 percent.

--Approved a $1 billion operating budget, the largest in UT history.

--Adopted a broad statement on faculty tenure calling for annual
performance reviews on the basis of prodecures to be developed over the
next year by UT campuses and institutes.

--Approved a plan to make UT Medical Center an independent, not-for-profit
corporation so it can compete more sucessfully in the health care market.
Benefits for current employees would be protected and traditional levels of
patient care, medical education and research would be continued.

Other student fee increases appproved by the board included: law, 8
percent; medicine, 5 percent; dentistry, 5 percent; pharmacy, 10 percent;
graduate nursing, 12 percent; and veterinary medicine, 5 percent.

UT Executive Vice President Emerson Fly said the fee increases would
generate appproximately $8 million in additional revenue.

At UT-Chattanooga, a 5 percent increase will raise total undergraduate fees
for in-state students to $1,232 per semester. At UT-Martin the cost will be
$1,171. An 8 percent increase at UT-Knoxville will raise fees to
$1,372.

As much of the new revenue as possible will be used to give salary
increases to deserving faculty, although some of the funds must be used to
meet increases in operating costs, Johnson said.