1. February 25, 2010 Dr. James R. Ramsey President University of Louisville Okolona Business Association

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

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

4. 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 4 Our Goals Next Few Minutes

5. Let’s take a quick look at the environment 5

6. And Kentucky has not been immune to the downturn 6

7. Kentucky Economy: Manufacturing – Our Bread and Butter Manufacturing employment (in thousands) p: preliminary 7

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

9. We are more intensely focused than ever! We continue to make progress 9 Despite cuts and challenges…

10. Our progress since reform… 1 – Better students – policy importance Freshman class average ACT 1998 – 21.4 2009 – 24.5 State avg. – 20.8 (19.4) National avg. – 21.1 24 National Merit Scholars More students from outside Jefferson County than inside 10

11. 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 11

12. 12 Our progress since reform… Our commitment to research Total extramural funding awards: 1998 - $42 M 2009 - $140 M 2020 Goal - $400 M 3 – Research – policy importance

13. 13 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

14. 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 14 4 – Community – policy importance

15. 15 “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

16. 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 16 UofL – the Driver Job Creation The University of Louisville: An Engine of Growth from 2003-2009 Manoj Shanker January 2010

17. We are driving the economy… Construction projects ShelbyHurst Louisville Arena Outpatient Center Center for Translational Research 17

18. 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 18 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

19. 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 19 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

20. From 2003 – 2009 UofL activities added $1.2 billion to Kentucky’s economic output 20 UofL – the Driver Economic Engine Net Increase in Economic Output from FY03 to FY09 Source: Manoj Shanker

21. 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 $2.71 21 UofL – the Driver Great Investment Source: Manoj Shanker

22. Expense management/reengineering Focus on “underperforming assets” Fundraising Growing clinical programs Grow research/commercialization/industry contracting Partnerships Being creative (e.g. TIF) 22 How we do this with budget cuts…

23. Education – “creative class” – jobs follow people Research – is economic development Helping build new “clusters – Healthcare/life sciences – Logistics/distribution – Energy Investing in community 23 Economic Growth The Big Picture

24. Education Pays Per Capita Income in All 50 States v. Adults with Bachelors Degrees or Higher Data for 2007 2007 24

25. 25 Keeping the engines running… 4 keys to Kentucky’s future Education – Early Childhood Education – K-12 Education – Higher Ed Education – Continuing Adult The fuel for an economic recovery is educating Kentucky’s citizens.

26. Yet – Kentucky Chamber: The Leaky Bucket Corrections 26

27. Other big leaks… Medicaid Public employee benefits Retirement Health insurance Diverting money from our future growth 27

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 28

29. www.louisville.edu/legislativeaction 29

30. Thank you! Questions/Discussion 30