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

2. Thank you for being here! We love being in the

3. Some Blue Dots and A Red Triangle

4. New video here

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

6. Kentucky Employment Non Agricultural December 2011 Notes – 1 – Most people employed since January 2009 2 – Still 63,700 fewer people working today 63,700 job loss

7. Kentucky Employment Manufacturing December 2011 Economy Productivity gains Offshore

8. 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

9. 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

10. 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

11. Rather Than Investing In Higher Education Revenue growth FY 07-12 – 1.1% Expenditures – the bad news —Some History FY 07-12 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% %

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

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

14. Some Numbers 19982002*2011 Average ACT score of all entering freshmen 21.423.224.7 6-year Graduation Rate30.1%33.0%50.8% Undergraduate Degrees Awarded1,7341,8492,618 Doctoral Degrees Awarded7690163 Research Expenditures$39.1M$80.9M$195.5M Formal Patents Issued5572190 Start-Up Companies (cumulative)1636 Endowment$317.0M$478.9M$773.3M

15. Today and Going Forward… We Need You More Than Ever! Be engaged Help us communicate Help us recruit Talk to policy makers Give back