1. Alumni Leadership Weekend September 3, 2009 Dr. James R. Ramsey President

2. Welcome back... Welcome home... Thank you for your work on behalf of UofL

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

4. “It was the best of times, It was the worst of times.” - Charles Dickens (Let’s not even think about wind, ice, flood, neurosurgery, coach, CEHD etc.)

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. and Kentucky has not been immune to those impacts Nonfarm employment in thousands p: preliminary Jul. 2009 1,775.0 (p) Dec. 2007 1,871.9 Oct. 2000 1,833.6 Jun. 2003 1,777.6 Employment 2009 = employment 1999

7. Kentucky Economy: Manufacturing – Our Bread and Butter Manufacturing employment (in thousands) Jul. 2009 211.4 (p) p: preliminary

8. We (Kentucky) face challenges Structural challenges Big challenges We will struggle for a while (How is that for a forecast?) So we know a tough session

9. What does this have to do with UofL?  Postsecondary Education Improvement Act (1997) o Public agenda  Premier nationally recognized metropolitan university o More educated workforce o More research o Economic activity o Commercialization  Boyle Report (1996) and follow up community mandates o New clusters

10. 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

11. The weak economy has an impact on us too… Kentucky Employment Losses Cuts/Cuts/Cuts 9 for 9 State Individual Income Tax/Sales Tax

12. Despite cuts and other distractions, we are making progress… Our Students Freshman class average ACT 2009 – 24.5(p) 1998 – 21.8 State avg. – 20.8 (19.4) National avg. – 21.1 More students from outside Jefferson County than inside

13. Despite cuts and other distractions, we are making progress… Our Graduates 1998 – 1,734 degrees awarded 2009 – 2,428 degrees awarded – Up 40% (694 students) since beginning of reform – 2020 Goal – 3,074 Graduation rate increased over 50% – 2020 Goal – 60% Fulbright Scholars – 2009 – 7 – 2008 – 7 – 2007 – 7

14. Despite cuts and other distractions, we are making progress… Focus on Translational Research Research Funding and NIH Funding Total grants: 1998 - $39 M 2009 - $140 M 2020 Goal - $400 M

15. Despite cuts and other distractions, we are making progress… “from mind to marketplace” 199820082020 Goal Startup companies (cumulative)12234 Patents (cumulative) Applications filed 1517221,064 License option agreements (cumulative) 1773110 Note: By 2008, 130 patents were issued, a 136% increase since 1998.

16. Despite cuts and other distractions, we are making progress… Helping our community and state Eg. The Conn Center for Renewable Energy Research and Environmental Stewardship Argonne National Laboratory

17. Despite cuts and other distractions, we are making progress… Helping our community and state New arena and other construction projects ShelbyHurst Louisville Arena Haymarket

18. Despite cuts and other distractions, we are making progress… but… We have far, far more to do despite the challenges!

19. 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

20. 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

21. Dataseam – avoiding new costs Note: Five cancer drugs are on the way to clinical trails.

22. Underperforming Assets Examples – Reynolds Metals Stoddard Johnson Shelby Campus

23. 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

24. Building Clinical Income Outpatient Center “For every action, there is a reaction” Our theory – pie bigger Others disagree – zero sum

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

26. Being Creative – Our Tax Increment Financing District (TIF) Health Science Campus and Life Sciences Center Over the next 30 years this economic development will yield: 8,700+ jobs $668M in payroll taxes

27. We have been and will be challenged, but we (all of us) must stay intensely focused! 4 keys to Kentucky’s future Education Why? So let’s wrap up…

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

29. Changing Priorities

30. Students or Inmates?

31. Never needed you more Family Support  Students  Messaging  Financial  Moral Stay in touch Review of alumni And we have

32. Education Pays