1. Weekend College 2009 Dallas, Texas August 1, 2009

2. Thank you Mitch and David and Keith We were warned…

3. Home of 2,396 alums, 97 students in 2008 and 3 incoming Freshmen this fall

4. “It was the best of times, It was the worst of times.” - Charles Dickens

5. 5 We know that nationally times have been unprecedented… GDP Declines During Postwar Recessions (peak-to-trough percent change; date is year of peak quarter)

6. 6 And Kentucky has not been immune to those impacts (Nonfarm employment in thousands) p: preliminary Jun. 2009 1,774.2 (p) Dec. 2007 1,871.9 Oct. 2000 1,833.6 Jun. 2003 1,777.6

7. Manufacturing employment in thousands p: preliminary Jun. 2009 207.0 (p) Jan. 1999 308.3 Kentucky Economy: “The Biggest Problem We Face”

8. There are challenges Kentucky Employment Losses Cuts/Cuts/Cuts 9 for 9 State Individual Income Tax/Sales Tax

9. Options Throw in the towel – give up on mandates Limp along Remain focused/committed and passionately committed to our task

10. So while we all face challenges… We will never lose sight of our mandates!

11. U of L to be Premier Nationally Recognized Metropolitan Research University Our Mandates 1997 Post Secondary Education Improvement Act 1996 Boyle Report 1998 – 2008 “Challenge for Excellence” “We met Challenge” 2020 Plan

12. 1.Reengineer operations 2.Convert underperforming assets to fully performing assets 3.Increase fundraising 4.Enhance clinical income (460 physicians) PPP University of Louisville Hospital 5.Develop partnerships 6.Improve contract research/commercializing 7.Being creative (e.g. TIF) Our 7 Strategies to Achieve Mandates Given Fiscal Environment

13. And so… $105 million in cuts, savings and efforts to find money to move forward Big things Refinanced debt Self-funded health insurance Little things Washing windows Power-down vending machines

14. Dataseam – avoiding new costs Note: Three cancer drugs in clinical trials

15. Enhanced food service Our Partnerships Student Housing – The Province Siemens Energy Audit

16. Ramping up Giving $42, 434,018$36,382,594$42,382,805 $64,476,596 $61,511,069 $51,367,489 $86,571,870 $95,000,000

17. Building Clinical Income Outpatient Center

18. And we are making progress…

19. Our Students Freshman class average ACT 2008 – 24.4 1998 – 21.8 State avg. – 20.8 National avg. – 21.2

20. U of L Graduates 1998 – 1,734 degrees awarded 2009 – 2,428 degrees awarded – Up 39% (694 students) since beginning of reform Graduation rates are up to 45.7% 7 Fulbright Scholars in 2009 First time more students from outside Jefferson County than inside

21. Making Kentucky a better place Research Funding and NIH Funding Total grants for 1997 – 2009 - $140 M

22. Investing in quality at U of L The Conn Center for Renewable Energy Research and Environmental Stewardship

23. Community/Economic Development New arena and other construction projects ShelbyHurst Louisville Arena Haymarket

24. We have been and will be challenged, but we are intensely focused! 4 keys to Kentucky’s future Education We need your help!

25. Women’s Sports Basketball – Big East Runner up Big East Tourney Runner Up NCAA #3 seed Final Four! National Runner Ups! #2 in nation Track – D’Anna McCarty NCAA Champ! Softball – Top 25 Golf – Top 15 Track – Big East Champions! Men’s Sports Basketball – Big East Champs Big East Tourney Champs NCAA overall #1 seed #1 in Nation Final Poll Elite Eight #5 in Nation Golf – Top 25 Tennis – Top 25 Track – Big East runner up And finally! How ‘bout those Cards!