The University of Kentucky Board of Trustees spent its annual retreat Saturday weighing the numerous pressures it faces in the greater world of higher education, including less state support, higher costs for students, fewer research dollars, and the uncertain but inevitable future of online education.

More particular to UK are issues such as a new way of budgeting, a housing boom, and a large and talented freshman class met with a nervous campus community that's facing another round of budget cuts.

Last year, the retreat helped determine that President Eli Capilouto needed to focus on undergraduate education, more residence halls and new academic facilities. Capilouto said the discussions with the board will be added to conversations with other parts of campus, including faculty, staff and students.

"What we're trying to do is serve as a bridge to our constituents ... the intersection of all these conversations, we think, will be useful in shaping the way we go."

One of the big issues will be online education. Vince Kellen, UK's Chief Information Officer, who was recently promoted to senior provost for academic planning, analytics and technologies, pointed out that many of the nation's elite universities are surging ahead in online education with Massive Open Online Courses, known as MOOCs, although it's not yet clear how or whether they will be profitable.

Capilouto said online education is already happening in pockets all over campus, but there is no centralized program.

"It's the fastest-growing segment in higher education," he said. "Where do we fit in all this?"

It's clear that trustees want Capilouto to figure that out.

"This is technology going on today," trustee Bill Britton said to Capilouto. "Be my leader what's going to be here five years from now? Do we have a plan for the next three years, five years, for what we're going to do for online education? It's here; we can either embrace it or get run over by it."

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At annual retreat, University of Kentucky trustees discuss money and online education