University of Louisville Kentucky CCIM Luncheon Dr. James R. Ramsey President University of Louisville February 17, 2010

Thank you for inviting me! It is an honor to be here with you today. 2

Our Goals Next Few Minutes Quick look at the environment Our responsibility at UofL Progress on five fronts All tied to economy/quality of life Results of recent independent analysis of UofL’s impact The “Pitch” Questions

Let’s take a quick look at the environment 4

We know that nationally times have been unprecedented… Peak Decline in real GDP Dec-07 (IV) -3.70% Mar-01 (I) 0.40% Jul-90 (III) -1.40% Jul-81 (III) -2.90% Jan-80 (I) -2.20% Nov-73 (IV) -3.20% Dec-69 ((IV) -0.20% Apr-60 (II) -1.10% Aug-57 (III) Jul-53 (II) -2.60% Nov-48 (IV) -1.70% * Lowest level during the current recession. The next two quarters (2009:III and IV) have been positive. 5 Sources: NBER, BEA, and BLS.

U. S. Job Loss Are we out of the woods yet? 6

And Kentucky has not been immune to the downturn

Manufacturing – Our Bread and Butter Kentucky Economy: Manufacturing – Our Bread and Butter Manufacturing employment (in thousands) p: preliminary

Kentucky Employment Losses So?? Kentucky Employment Losses State Individual Income Tax/Sales Tax Cuts/Cuts/Cuts 9 for 9 With two more on the way…

But We cannot forget… We have a public mission We are expected to help improve economic opportunity and quality of life for Kentuckians (HB1 – 1997) Pikeville Dental Clinic - June 2009

Despite cuts and challenges… We are more intensely focused than ever! We continue to make progress

Our progress since reform… 1 – Better students – policy importance Freshman class average ACT 1998 – 21.4 2009 – 24.5 State avg. – 20.8 (19.4) National avg. – 21.1 24 National Merit Scholars More students from outside Jefferson County than inside 12

Our progress since reform… Our Commitment going forward 2 - Our Graduates – policy importance 1998 – 1,734 degrees awarded 2009 – 2,428 degrees awarded 2020 Goal – 3,074 Graduation rate Increased from 30% in 1998 to 48.4% in 2009 2020 Goal – 60% Doctoral Degrees 1998 – 76 2009 – 142 2020 Goal – 350 A Rhodes Scholar 13

Our progress since reform… Our commitment to research 3 – Research – policy importance Total extramural funding awards: 1998 - $42 M 2009 - $140 M 2020 Goal - $400 M 14

Research, Creativity and Discovery Adult Heart Stem Cell Transplant Rebuilding hearts and lives James Graham Brown Cancer Center Breast Accreditation First in Kentucky Fueling with bio-diesel 15

Our progress since reform… Our commitment 4 – Community – policy importance 12th Best “Community” Neighbor University in the country Earned a B+ from Sustainable Endowments Institute; tied for top honor with Berea College Scholar House – 56 apartments housing single mothers working on their education Dental School – dental clinics in Eastern Kentucky Signature Partnership Revitalizing neighborhoods Park Hill Province Reynolds Lofts

Our progress since reform… Our commitment 5 – The Economy – Everyone understands importance “The University of Louisville and the city of Louisville drive our state.” – John Calipari, UK Basketball Coach Courier Journal, January 22, 2010

UofL – the Driver Job Creation From 2003 – 2009 – a time of state budget cuts 9,764 jobs created (direct & indirect) Roughly – 40% of net new jobs created in Kentucky during the time frame studied The University of Louisville: An Engine of Growth from 2003-2009 Manoj Shanker January 2010

We are driving the economy… Construction projects Louisville Arena Center for Translational Research ShelbyHurst Outpatient Center 19

Major Construction Projects UofL – the Driver Major Construction Projects Belknap Campus Belknap Entrance/Oval Belknap Research Building Cardinal Station Chemistry Vent Phase I Code Improvements-Fire Safety Community Park Dorm Ekstrom Basement Archives Ekstrom Library Expansion Ernst Hall Greek Housing Houchens-Graduate School Kentucky Trailer Kersey Library Renovation Kurz Hall Lacrosse Field Minardi Hall MITC Natatorium Old World Pasta Plant Patterson Baseball Stadium Second Street Property The Bellamy The Province Threlkeld Hall Honors Program Trager Center Fieldhouse Trager Field Hockey Expansion Yum Center

Major Construction Projects UofL – the Driver Major Construction Projects Health Sciences Campus Cancer Center Renovation Cardiovascular Innovation Institute Chestnut Garage Expansion CII Renovation Clinical & Translational Research Bldg. Delia Baxter Research Dental School 1st Floor Haymarket HSC Fitness Facility HSC Parking Garage II Inhalation Labs Phoenix Place Apartments School of Public Health Tunnel Extension/Improvements Shelby Campus Center for Predictive Medicine Regional Computer Forensics Lab ShelbyHurst Development Work Other Cressman Center – Downtown Louisville Arena - Downtown

Net Increase in Economic Output from FY03 to FY09 UofL – the Driver Economic Engine From 2003 – 2009 UofL activities added $1.2 billion to Kentucky’s economic output Net Increase in Economic Output from FY03 to FY09 Source: Manoj Shanker

UofL – the Driver Great Investment Taxpayer ROI (return on investment) Every dollar UofL receives in state funds results in an additional $4.12 going into the economy In 2003 the ROI was $2.71 Source: Manoj Shanker

How we do this with budget cuts… Expense management/reengineering Focus on “underperforming assets” Fundraising Growing clinical programs Grow research/commercialization/industry contracting Partnerships Being creative (e.g. TIF)

Economic Growth The Big Picture Education – “creative class” – jobs follow people Research – is economic development Helping build new “clusters Healthcare/life sciences Logistics/distribution Energy Investing in community

Keeping the engines running… 4 keys to Kentucky’s future Education The fuel for an economic recovery is educating Kentucky’s citizens. 26

Yet – Kentucky Chamber: The Leaky Bucket Corrections

Diverting money from our future growth Other big leaks… Medicaid Public employee benefits Retirement Health insurance Diverting money from our future growth 28

We need your support… CPE budget recommendations Fund maintenance and operations for current buildings Funding for strategic initiatives – retention/graduation Fund additional classroom space Keep “Bucks for Brains” alive 29

www.louisville.edu/legislativeaction 30

Thank you! Questions/Discussion 31