Trustees at the University of the District of Columbia last night approved a $92 million budget that includes provisions for cutting as many as 40 non-faculty employees from the payroll and a freeze on filling dozens of faculty and staff positions.

Interim President Miles Mark Fisher IV said authorities have not yet identified the staff and administrative employees who would have to be dismissed to attain the $900,000 savings in salaries and benefits called for in the spending plan.

Employees who leave voluntarily or retire could reduce the number of dismissals, he said. However, the budget calls for the savings during fiscal 1991, which began Oct. 1, requiring the university to act quickly.

Fisher said that the university will save $3.7 million that had been earmarked for several vacant faculty and staff positions, and an additional $2.85 million from a reduction in staff travel, equipment purchases and hiring of temporary employees. Money saved will help pay for several budget items, including more than $4 million in building leases.

"All District government agencies are taking a hard look at their budgets to ensure accountability," Fisher said. "We are no different."

The board last night also elected the Rev. A. Knighton Stanley as its vice chairman. Stanley, pastor of Peoples Congregational Church in the Brightwood area of Northwest Washington, was a key negotiator for the trustees during the recent 10-day student protest over the board's leadership.

Last night's meeting, the board's first since the protest ended, drew about 70 students who had participated in the occupation of the Student Affairs Building on the Van Ness campus.

During the protest, students had called for the resignations of the 11 appointed trustees, including Stanley, who had submitted his resignation effective March 31, 1991.

Last night during a recess in the meeting, student trustee Cynthia Smith consulted student leaders on their choice as the new vice chairman. The students backed Stanley.

As vice chairman, Stanley succeeds Herbert O. Reid Sr., who becomes board chairman today following the resignation, effective at midnight last night, of former chairwoman Nira Hardon Long. Reid is seriously ill, and trustees said Stanley will act temporarily as chairman.

Long's resignation was one of more than three dozen demands students made during their protest and boycott of classes. Among the other demands, only one, extended library hours, is included in the budget the trustees approved last night.

The budget includes $200,000 that enables the library to double its hours. The previous schedule included no weekend hours.