L O U I S V I L L E . E D U

Dr. James R. Ramsey, President, University of Louisville

The American College & UniversityELFH 678April 3, 2014

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Thank You

Let’s start with some history of higher education in Kentucky

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Founded 1780

A Brief History of Transylvania University

Since its founding in 1780 as the first college west of the Allegheny Mountains, Transylvania has been pioneering

new frontiers in higher education

Transylvania University

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A Brief History of the University of Louisville

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HB1: “Postsecondary Education Improvement Act”

HB4: $$$

Past 17 Years Have Been Real Game Changers!Landmark Date in UofL History

1997

• “Higher Education has a public agenda – increase economic opportunity/improved quality of life for people of our communities/state”

• UofL’s specific statutory mandate• Funding to achieve mandate

Special Legislative Session KY General Assembly

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• Increased funding– Base budgets increased– “Jump start” funds for research– $350M Bucks for Brains– Increases in student financial aid

(e.g. lottery)

Golden Era of Higher Education

1997-2002

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1,745.0

1,765.0

1,785.0

1,805.0

1,825.0

1,845.0

1,865.0

1,885.0

1,814.4

1,870.6

1,750.6

1,828.4 (P)

But Kentucky’s twelve years have been a challenge

February, 2014

(P) Preliminary http://www.bls.gov/eag/eag.ky.htm 7

200.0

220.0

240.0

260.0

280.0

300.0

320.0

226.7 (P)

And of Course – The Reality of Being a Manufacturing StateOur Best Paying Jobs

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February, 2014

http://www.bls.gov/eag/eag.ky.htm(P) Preliminary

So What’s All This Mean to Us - UofL?The Kentucky “General Fund”

Kentucky State General Fund

$9.3B 100%

Individual Income Tax $3.7B 40%State Sales Tax $3.1B 32%Combined $6.7B 72%

Income Tax/Sales Tax highly correlated with economic activity —i.e. Employment! People working!

State Funded?OR

State assisted?FY 13

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State Revenue Growth

Public Pensions Medicaid Debt Service Corrections/Adult Prisons

K-12 Base Higher Ed-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

10.0%

63.5%

41.9%

32.8%

15.3%

-1.0% -14.0%

And so…The State Budget Has Been A Challenge (2008-2014) Slow Revenue Growth/Structural Imbalance

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In Fact

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2002 – 2005 5 State Budget Cuts

2007 – 2015 9 State Budget Cuts

Strategy one –“Pick low hanging fruit.”$114.8M in cost efficienciesNOTE: Not always easy

How have we (UofL) moved forward in a tough fiscal environment

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Strategy two –Taking “underperforming assets and making them perform.”

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NOTE: Some outcry

Strategy three –Increasing value from our research/IP

Dr. Suzanne Ildstad14

Strategy four –Use private sector to do what we are not good at

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Strategy five –Generate clinical income to support teaching/academics

• Joint Operating Agreement with UofL Hospital• UofL Physicians

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NOTE: A challenge

$5.5 M

Strategy six –Being creative and clever, what no other universities do

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And biggest yetBelknap Research Park

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$600 M$750 M

$983 M $1B

Strategy seven –Our friends/alums/donors – increase philanthropic support

“Hot shot” consultant

2010Our BOT

Today April 10, 2014

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Importance of “Seven Strategies”

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Fiscal Year 2001-02 Fiscal Year 2013-14

Our Trajectory – Pretty “Damn” Amazing

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And the fiscal challenges continue …

FY152.6%

FY162.6%

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Governor Proposed

-2.5% -0-

As we speak

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House/Senate free conference committee

-1.5% cut

but

New classroom building

But in addition to fiscal challenges, we face

• Market challenges

• Questions about efficiency/effectiveness

of education delivery models

• Pricing issues

• Integrity issues

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1. Stay with 2020 goals – what does it take2. Back off 2020 goals

• What must be changed to move forwardo Organizationally/structurally?o Can we/will we

3. Be content with where we are4. Give up revert to where we were

“21st Century University Initiative”

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“21st Century University” the last 18 months

BOT Discussion at 2012 Summer Retreat

State of the University Sept. 2012 – Charge to the Provost

Launched campus-wide SWOT analysis Oct. 2012  

Used findings from SWOT to form 4 committees, each headed by a Dean:

Technology, Engagement and International

Academic and Research Priorities

Financial Health

Culture of Excellence

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“21st Century University” the last 18 months

Numerous campus led discussions October 2012 – May 2013

Committees developed initial recommendations endorsed by Board of Trustees - 2013 Summer Retreat

Committees reconvened to refine recommendations – September 2013 to

present

Student committee formed -  September 2013

Preliminary progress report to Board of Trustees – February 2014

Action Steps

• We have identified five multidisciplinary and collaborative areas of excellence in teaching, scholarship and research and community engagement: – Human expression, creativity and communication – Health and wellness – Applications of technology to contemporary issues – Understanding human and natural systems – Understanding economic systems and

development

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Every department and school will examine its academic and scholarly, research, and creative strengths in view of five multidisciplinary areas of excellence

Action Steps

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• We will develop a new general education program

Action Steps

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• We will selectively grow the population of our programs but will evaluate market opportunities for meeting the needs of specific segments of the population:

Action Steps

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– We will expand offerings for adult learners in specific programs

– We will create a Center for Global Engagement to lead our international learning/research opportunities for our faculty and students and to enhance our attractiveness to international students

– We will grow professional programs as dictated by workforce and population needs and selectively grow graduate programs

Specifically

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• Supporting the Work of the University – We will implement a budget system tied

directly to the mission and performance of all activities at the university

– We will immediately search for a CFO to help us implement a financial management system that creates unit accountability with central financial controls and recognizes the specific program needs of each unit

Action Steps

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– We will create a Technology Innovation Center to support faculty, staff and students

– We will integrate our business enterprise systems with our technology systems

Action Steps

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• Developing a Culture of Excellence – We must continue our campus dialogue

that allows us to develop a campus culture committed to our values of excellence, diversity, and respect of all individuals, and supports creativity, innovation, and trust.

– We must develop compensation policies that reward excellent work congruent with market pressures.

Action Steps

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So…

The 21st Century University initiative

should help us take the next steps so

we can continue on our trajectory

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Questions?

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