Alumni Leadership Weekend

September 3, 2009

Dr. James R. RamseyPresident

Welcome back . . . Welcome home . . .

Thank you for your work on behalf

of UofL

Economists like pictures and graphsSome dots and a triangle…

“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.)

We know that nationally times have been unprecedented…

GDP Declines During Postwar Recessions(peak-to-trough percent change; date is year of peak quarter)

1948 1953 1957 1960 1970 1973 1980 1981 1990 2001 2008 1st Qtr 2009

2nd Qtr 2009

Series1 -1.8 -2.7 -3.7 -1.5 -1.1 -3.1 -2.2 -3.8 -1.4 -0.2 -4.8 -5.7 -1

-5.5

-4.5

-3.5

-2.5

-1.5

-0.5

and Kentucky has not been immune to those impacts

Nonfarm employment in thousands

p: preliminary

Jul. 20091,775.0 (p)

Dec. 20071,871.9

Oct. 20001,833.6

Jun. 20031,777.6

Employment 2009 = employment 1999

Kentucky Economy:Manufacturing – Our Bread and Butter

Manufacturing employment (in thousands)

Jul. 2009211.4 (p)

p: preliminary

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

What does this have to do with UofL?

· Postsecondary Education Improvement Act (1997)o Public agenda

· Premier nationally recognized metropolitan universityo More educated workforceo More research

o Economic activityo Commercialization

· Boyle Report (1996) and follow up community mandateso New clusters

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

The weak economy has an impact on us too…

Kentucky Employment Losses

Cuts/Cuts/Cuts

9 for 9

State Individual Income Tax/Sales Tax

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

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

Despite cuts and other distractions,we are making progress…

Focus on Translational ResearchResearch Funding and NIH Funding

Total grants:

1998 - $39 M

2009 - $140 M

2020 Goal - $400 M

Despite cuts and other distractions, we are making progress…

“from mind to marketplace”

1998 2008 2020 Goal

Startup companies (cumulative) 1 22 34

Patents (cumulative)

Applications filed

151 722 1,064

License option agreements (cumulative)

17 73 110

Note: By 2008, 130 patents were issued, a 136% increase since 1998.

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

Despite cuts and other distractions, we are making progress…

Helping our community and stateNew arena and other construction projects

ShelbyHurst

Louisville Arena

Haymarket

Despite cuts and other distractions, we are making progress… but…

We have far, far more to do despite the challenges!

1. Reengineer operations2. Convert underperforming assets to fully

performing assets3. Increase fundraising4. Enhance clinical income (460 physicians)

• PPP• University of Louisville Hospital

5. Develop partnerships6. Improve contract research/commercializing7. Being creative (e.g. TIF)

Our 7 Strategies to Achieve Mandates Given Fiscal Environment

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

Dataseam – avoiding new costs

Note: Five cancer drugs are on the way to clinical trails.

Underperforming Assets

Examples –

• Reynolds Metals

• Stoddard Johnson

• Shelby Campus

Ramping up Giving

$42,

434

,018

$36,

382,

594

$42,

382,

805 $6

4,47

6,59

6

$61,

511,

069

$51,

367,

489

$86,

571,

870

$95,

000,

000

Building Clinical Income

Outpatient Center

“For every action, there is a reaction”

• Our theory – pie bigger• Others disagree – zero sum

Enhanced food service

Our Partnerships

Student Housing – The Province Siemens Energy Audit

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

We have been and will be challenged, but we (all of us) must stay intensely

focused!4 keys to Kentucky’s future

• Education

• Education

• Education

• Education

Why?

So let’s wrap up…

Education Pays Per Capita Income in All 50 States v. Adults with

Bachelors Degrees or Higher - Data for 2007

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

15% 20% 25% 30% 35% 40%

2007

Changing Priorities

Students or Inmates?

Never needed you more

• Family

• Support

Students

Messaging

Financial

Moral

• Stay in touch

• Review of alumni

And we have

Education Pays