February 17, 2010

Dr. James R. RamseyPresident

University of Louisville

KentuckyCCIM

Luncheon

Thank you for inviting me!

It is an honor to be here with you today.

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1. Quick look at the environment2. Our responsibility at UofL3. 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

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Our GoalsNext Few Minutes

Let’s take a quick look at the environment

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We know that nationally times have been unprecedented…

5Sources: NBER, BEA, and BLS.

* Lowest level during the current recession. The next two quarters (2009:III and IV) have been positive.

Peak Decline in real GDPDec-07 (IV) -3.70%Mar-01 (I) 0.40%Jul-90 (III) -1.40%Jul-81 (III) -2.90%Jan-80 (I) -2.20%Nov-73 (IV) -3.20%Dec-69 ((IV) -0.20%Apr-60 (II) -1.10%Aug-57 (III) -3.70%Jul-53 (II) -2.60%Nov-48 (IV) -1.70%

U. S. Job LossAre we out of the woods yet?

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Mar-0

8

Apr-08

May-0

8Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-0

9

Apr-09

May-0

9Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10-800

-700

-600

-500

-400

-300

-200

-100

0

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And Kentucky has not been immune to the downturn

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Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-101750.0

1770.0

1790.0

1810.0

1830.0

1850.0

1870.0

1890.0

Jan '991769.4

Dec '071872.4

Dec'091764.5

Kentucky Economy:Manufacturing – Our Bread and Butter

Manufacturing employment (in thousands)

p: preliminary 8

Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10200.0

220.0

240.0

260.0

280.0

300.0

320.0308.3

Dec. 208.8 (p)

So??

Kentucky Employment Losses

Cuts/Cuts/Cuts

9 for 9With two more on the way…

State Individual Income Tax/Sales Tax

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ButWe cannot forget…

We have a public missionWe are expected to help improve economic

opportunity and quality of life for Kentuckians (HB1 – 1997)

10Pikeville Dental Clinic - June 2009

We are more intensely focused than ever!

We continue to make progress

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Despite cuts and challenges…

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

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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 Scholar13

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Our progress since reform…Our commitment to research

Total extramural funding awards:

1998 - $42 M2009 - $140 M

2020 Goal - $400 M

3 – Research – policy importance

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Research, Creativity and Discovery

James Graham Brown Cancer CenterBreast Accreditation

First in Kentucky

Adult Heart Stem Cell TransplantRebuilding hearts and lives

Fueling with bio-diesel

Our progress since reform…Our commitment

12th 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

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4 – Community – policy importance

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“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

• 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

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UofL – the DriverJob Creation

The University of Louisville: An Engine of Growth from 2003-2009

Manoj ShankerJanuary 2010

We are driving the economy…Construction projects

ShelbyHurst

Louisville Arena

Outpatient Center

Center for Translational Research

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Belknap Entrance/OvalBelknap Research BuildingCardinal StationChemistry Vent Phase ICode Improvements-Fire SafetyCommunity Park DormEkstrom Basement ArchivesEkstrom Library ExpansionErnst HallGreek HousingHouchens-Graduate SchoolKentucky TrailerKersey Library RenovationKurz Hall

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UofL – the DriverMajor Construction Projects

Lacrosse FieldMinardi HallMITCNatatoriumOld World Pasta PlantPatterson Baseball StadiumSecond Street PropertyThe BellamyThe ProvinceThrelkeld Hall Honors ProgramTrager Center FieldhouseTrager Field Hockey ExpansionYum Center

Belknap Campus

Health Sciences CampusCancer Center RenovationCardiovascular Innovation InstituteChestnut Garage ExpansionCII RenovationClinical & Translational Research Bldg.Delia Baxter ResearchDental School 1st FloorHaymarketHSC Fitness FacilityHSC Parking Garage IIInhalation LabsPhoenix Place ApartmentsSchool of Public HealthTunnel Extension/Improvements

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UofL – the DriverMajor Construction Projects

Shelby CampusCenter for Predictive MedicineRegional Computer Forensics LabShelbyHurst Development Work

OtherCressman Center – DowntownLouisville Arena - Downtown

• From 2003 – 2009• UofL activities added $1.2 billion to Kentucky’s

economic output

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UofL – the DriverEconomic Engine

UofL State0%20%40%60%

52%36%

Net Increase in Economic Output from FY03 to FY09

Source: Manoj Shanker

• 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

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UofL – the DriverGreat Investment

Source: Manoj Shanker

• Expense management/reengineering• Focus on “underperforming assets”• Fundraising• Growing clinical programs• Grow research/commercialization/industry

contracting • Partnerships• Being creative (e.g. TIF)

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How we do this with budget cuts…

• Education – “creative class” – jobs follow people• Research – is economic development• Helping build new “clusters–Healthcare/life sciences– Logistics/distribution– Energy

• Investing in community

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Economic GrowthThe Big Picture

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Keeping the engines running…4 keys to Kentucky’s future

• Education

• Education

• Education

• Education

The fuel for an economic recovery is educating

Kentucky’s citizens.

Yet – Kentucky Chamber: The Leaky Bucket

Corrections

Other big leaks…

• Medicaid• Public employee benefits• Retirement• Health insurance

Diverting money from our future growth

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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

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www.louisville.edu/legislativeaction

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Thank you!

Questions/Discussion

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