Young Alumni New York City, New York Dr. James Ramsey President, University of Louisville Dr. James Ramsey President, University of Louisville

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Some Blue Dots and A Red Triangle

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Great Things Are Happening But It Hasn’t Been Easy US GDP Very slow recovery

Kentucky Employment Non Agricultural December 2011 Notes – 1 – Most people employed since January – Still 63,700 fewer people working today 63,700 job loss

Kentucky Employment Manufacturing December 2011 Economy Productivity gains Offshore

Some Observations New economy –Knowledge based –Human capital…  Microsoft/Google/etc. Global economy Paradigm shift –Jobs follow people –Richard Florida – Creative Class  3 T’s

Some Observations Importance of New Clusters –Healthcare/Life science  Human genome project – game changer –Logistics/distribution  But… –Advanced (“additive”) manufacturing  Nano/MEMS –Energy  Renewable –Business services  Start-ups/Entrepreneurial

What’s all this have to do with Higher Education? Creating “creative class” –Human capital –Brightest Research –It is economic development –Start-ups –Business proximity (Milken Institute) Quality of life –Social/culture/artistic vibrancy –Owsley Brown effect

Rather Than Investing In Higher Education Revenue growth FY – 1.1% Expenditures – the bad news —Some History FY Medicaid32.1% Health Insurance Schools33.1% State Government14.6% KTRS40.9% KERS75.0% Debt Service14.5% Corrections13.0% Student Financial Aid14.6% “Higher Ed”-4.8% %

Students or Inmates? Source: KY Chamber of Commerce – Leaky Bucket

Education Pays Per Capita Income in All 50 States v. Adults with Bachelors Degrees or Higher Data for 2009

Some Numbers *2011 Average ACT score of all entering freshmen year Graduation Rate30.1%33.0%50.8% Undergraduate Degrees Awarded1,7341,8492,618 Doctoral Degrees Awarded Research Expenditures$39.1M$80.9M$195.5M Formal Patents Issued Start-Up Companies (cumulative)1636 Endowment$317.0M$478.9M$773.3M

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