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

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

1.Quick look at the environment 2.Our responsibility at UofL 3.Progress on five fronts – All tied to economy/quality of life 4.Results of recent independent analysis of UofL’s impact 5.The “Pitch” 6.Questions 3 Our Goals Next Few Minutes

Let’s take a quick look at the environment 4

We know that nationally times have been unprecedented… 5 Sources: NBER, BEA, and BLS. * Lowest level during the current recession. The next two quarters (2009:III and IV) have been positive. PeakDecline 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)-3.70% Jul-53 (II)-2.60% Nov-48 (IV)-1.70%

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

And Kentucky has not been immune to the downturn 7

Kentucky Economy: Manufacturing – Our Bread and Butter Manufacturing employment (in thousands) p: preliminary 8

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

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) 10 Pikeville Dental Clinic - June 2009

We are more intensely focused than ever! We continue to make progress 11 Despite cuts and challenges…

Our progress since reform… 1 – Better students – policy importance Freshman class average ACT 1998 – – 24.5 State avg. – 20.8 (19.4) National avg. – 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

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

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

Our progress since reform… Our commitment 12 th 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 16 4 – Community – policy importance

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

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 18 UofL – the Driver Job Creation The University of Louisville: An Engine of Growth from Manoj Shanker January 2010

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

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 20 UofL – the Driver Major Construction Projects 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 Belknap Campus

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 21 UofL – the Driver Major Construction Projects Shelby Campus Center for Predictive Medicine Regional Computer Forensics Lab ShelbyHurst Development Work Other Cressman Center – Downtown Louisville Arena - Downtown

From 2003 – 2009 UofL activities added $1.2 billion to Kentucky’s economic output 22 UofL – the Driver Economic Engine Net Increase in Economic Output from FY03 to FY09 Source: Manoj Shanker

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 $ UofL – the Driver Great Investment Source: Manoj Shanker

Expense management/reengineering Focus on “underperforming assets” Fundraising Growing clinical programs Grow research/commercialization/industry contracting Partnerships Being creative (e.g. TIF) 24 How we do this with budget cuts…

Education – “creative class” – jobs follow people Research – is economic development Helping build new “clusters – Healthcare/life sciences – Logistics/distribution – Energy Investing in community 25 Economic Growth The Big Picture

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

Yet – Kentucky Chamber: The Leaky Bucket Corrections

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

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Thank you! Questions/Discussion 31