April 13, 2010 Dr. James R. Ramsey President University of Louisville Leadership Louisville Class of 2010

Thank you Leadership Louisville for 31 years of making a difference. Congratulations on your graduation! 2

Economists like pictures and graphs Some dots and a triangle… 3

Let’s take a quick look at what we have faced – tough economy 4

5 (Non Farm Employment) U.S. Job Loss It has been tough

(Nonfarm employment in thousands) 6 Kentucky has not been immune to the downturn – job loss

Kentucky Economy: Manufacturing – Our bread and butter 7

So?? Kentucky Employment Losses Cuts/Cuts/Cuts 9 for 9 With two more on the way… State Individual Income Tax/Sales Tax 8

But despite economy/cuts/challenges… UofL has been given a job to do It is the law of Kentucky! 9

It is the responsibility of Higher Education to: “Increase economic opportunity/quality of life for the people of our community/state” “Post Secondary Education Improvement Act of 1997” 10

“U of L is to be Premier Nationally Recognized Metropolitan Research University” “Post Secondary Education Improvement Act of 1997” also says… 11

12 Premier Research Metropolitan Three Keys

13 “The University of Louisville and the city of Louisville drive our state.” John Calipari, UK Basketball Coach Courier Journal, January 22, 2010 Everyone understands why this is important

So we are moving forward #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 14

We are moving forward #2 - Our Graduates – policy importance 1998 – 1,734 degrees awarded 2009 – 2,428 degrees awarded – 2020 Goal – 3,074 Doctoral Degrees – 1998 – 76 – 2009 – 142 – 2020 Goal – 350 A Rhodes Scholar 15

16 We are moving forward Total extramural funding awards: $42 M $140 M 2020 Goal - $400 M #3 – Research – policy importance

17 Research that makes a difference James Graham Brown Cancer Center Breast Accreditation First in Kentucky Adult Heart Stem Cell Transplant Rebuilding hearts and lives Fueling with bio-diesel

We are moving forward 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 18 #4 – Community – policy importance

9,764 jobs created (direct & indirect) Roughly – 40% of net new jobs created in Kentucky during the time frame studied And just recently – team effort – Signature HealthCARE 19 We are moving forward Economic Development The University of Louisville: An Engine of Growth from Manoj Shanker January 2010 #5 – Driving the economy

Expanding education programs Growing research Athletic success New construction 20 Growing Economy

We are driving the economy… Construction projects ShelbyHurst Louisville Arena Outpatient Center Center for Translational Research 21

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 22 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 RenovationCardiovascular Innovation Institute Chestnut Garage ExpansionCII Renovation Clinical & Translational Research Bldg.Delia Baxter Research Dental School 1st FloorHaymarket HSC Fitness FacilityHSC Parking Garage II Inhalation LabPhoenix Place Apartments School of Public HealthTunnel Extension/Improvements 23 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 Total $1.0 billion

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 (cut $135 m costs) Focus on “underperforming assets” Increase fundraising Growing clinical programs/income Grow research/commercialization/industry contracting Partnerships with private sector Being creative (e.g. TIF) 25 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 26 So to wrap up… Economic opportunity/Quality of life

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

28 Keeping the engines running… 4 keys to Kentucky’s future Education – Early Childhood Education – K-12 Education – Higher Ed Education – Lifelong learning The fuel for an economic recovery is educating Kentucky’s citizens.

Yet – Kentucky Chamber: The Leaky Bucket Corrections 29

Other big leaks… Medicaid Public employee benefits Retirement Health insurance Diverting money from our future growth 30

Thank you! Questions/Discussion 31