1. President’s Update – Board of Trustees January 14, 2009

2. 2008 The Good (the Great) The Bad The Ugly January 14, 2009

3. Good (Great) Things Happen for a Reason January 14, 2009 Boyle Report - 1996 Community Agenda to Build Economy House Bill 1 – 1997 A Public Agenda for Higher Education to Build Economy Challenge for Excellence UofL 10 Year Plan 1998 - 2008

4. January 14, 2009 We Met the Challenge

5. The Good (Great) January 14, 2009

6. The Good (Great) 2008 January 14, 2009

7. The Good (Great) 2008 January 14, 2009

8. The Good (Great) 2008 January 14, 2009

9. The New “Challenge” (2020 Plan) Requires Us  Keep momentum  Keep moving forward While dealing with Bad and Ugly! January 14, 2009

10. The Bad 44 States Face Budget Shortfalls SOURCE: Center on Budget and Policy Priorities 12/23/08 January 14, 2009

11. The Bad Employment in Kentucky Has Dropped Since September 2008 (Nonfarm employment in thousands) January 14, 2009 Jan. 2000 1,814.8 Jan. 2006 1,839.8 Nov. 2008 1,857.4

12. The Bad Manufacturing Employment in Kentucky Has Dropped Since 2000 (Manufacturing employment in thousands) January 14, 2009

13. The Bad Education and Health Services Employment Has Grown Equaling Manufacturing January 14, 2009

14. And Now the Ugly (Real Ugly) January 14, 2009

15. Governor’s Midyear Budget Proposal  Revenue shortfall -- $456M this year!  State units ↓ 4% Universities 2% if.....  Cigarette tax increase 70¢ to $1 per pack --------------------------------------------------------------------------------  Will cuts be recurring?  The forecast for next year problematic January 14, 2009

16. Impact of Budget Cuts and Threats They Create  Will reduce graduation and retention rates  Admissions Office – threatens attraction of quality new and transfer students  Slows recruiting in state, especially among neediest  Limited or reduced need and merit based aid  Increased tuition and other student fees  Reduced overall student services  Reduced funding support to recognized student organizations  Delayed renovation and/or construction of student housing January 14, 2009

17. Impact of Budget Cuts and Threats They Create  Reserves are dangerously low  Increasingly dependent on sources of one-time money for long- term needs  Operating expenses based on increased tuition and deferred maintenance  Faculty/teacher ratios continue to rise, threatening future quality of programs  Losing ability to attract and retain talented faculty January 14, 2009

18. Impact of Budget Cuts and Threats They Create  Postponed hiring research faculty positions  Implemented research faculty hiring freeze  Reduced research budget  Severely impacts the growth of the research mission January 14, 2009

19. Impact of Budget Cuts and Threats They Create  Less economic development  Fewer business start-ups  Inhibits reaching 2020 goals of $400 million in sponsored research activity  Slows progress toward key achievements such as National Cancer Institute (NCI) designation January 14, 2009

20. 2009 Session – UofL Priorities  New revenue  Retain Bucks for Brains  Translational research funds  Approve construction of classroom buildings  Student recruitment  Revenue generation  Construction jobs  Provide maintenance and operation funds  Don’t tie hands on tuition January 14, 2009

21. Cancer Center Gift Announcement January 14, 2009

22. The Carnegie Foundation January 14, 2009 Carnegie Foundation for the Advancement of Teaching’s highest ranking in community engagement:  Recognizes schools that have addressed community-identified needs, deepened students’ civic and academic learning and enhanced the well-being of the community  One of three Kentucky schools to receive the highest ranking in 2008 (Berea, EKU)

23. Eight for Eight Institution Objectives Showing Continuous Progress Total Objectives Evaluated University of Louisville88 Eastern Kentucky University68 Kentucky State University47 Morehead State University48 Murray State University68 Northern Kentucky University68 University of Kentucky78 Western Kentucky University68 January 14, 2009

24. Ribbon Cutting – Shelby Campus January 14, 2009

25. McConnell/Chao January 14, 2009

26. Weekend College – Naples, Florida January 14, 2009

27. Upcoming Events  Kentucky Author Forum  Malcolm GladwellJan. 22 (sold out)  Michael KinsleyJan. 29  Elizabeth GilbertFeb. 26  Press conference with GovernorJan. 26  Press conference School of Public HealthJan. 29  CPE visitJan. 29  GLI higher education luncheonTBD  Frankfort student rallyFeb. 3 January 14, 2009