LEXINGTON, KY - University of Kentucky trustees have approved a $2.6 billion budget for the coming year that's slightly smaller than the current one.

The spending plan for the fiscal year starting July 1 was approved Tuesday. The budget offers no pay raises, but UK President Eli Capilouto says he's hoping to set aside money for 5 percent merit pay raises for faculty and staff for the 2013-2014 fiscal year.

The new budget includes an extra $10.3 million to cover existing scholarship commitments and expand some scholarship programs.

The near-flat budget comes amid a $20 million cut in state appropriations to the state's flagship university for the coming year. The following year, state support will be flat.

UK recently announced the layoffs of 140 people, and said another 164 vacant positions wouldn't be filled.