Louisville Cardinal Editorial Staff

October 30, 2009

Thank you for this opportunity!

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Goals

· Dialogue – ongoing · Some history

· Where we want to go

· Listen to you

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Economists like pictures and graphsSome dots and a triangle…

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• Wind• Ice

• Flood• Neurosurgery

• Personnel IssuesAnd of course, the worst economy

since the Great Depression.

Last year has had its challenges…

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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

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

Mar. 2008

Apr. 2008

May. 2008

Jun. 2008

Jul. 2008

Aug. 2008

Sept. 2008

Oct. 2008

Nov. 2008

Dec. 2008

Jan. 2009

Feb. 2009

Mar. 2009

Apr. 2009

May.2009

Jun. 2009

Jul. 2009

Aug. 2009(

p)

Sep. 2009(

p)

-800

-700

-600

-500

-400

-300

-200

-100

0

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…and Kentucky has not been immune to those impacts

Nonfarm employment in thousands

Sep. 2009 1,758.6 (p)

Dec. 20071,871.9

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Employment 2009 = employment 1999p: preliminary

Kentucky Economy:Manufacturing – Our Bread and Butter

Manufacturing employment (in thousands)

p: preliminary

Sep. 2009208.9 (p)

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We (Kentucky) face challenges

• Big challenges

• Structural challenges

• We will struggle for a while – next biennium budget will be ugly

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What’s all this have to do with UofL?

We are expected to help improve economic opportunity and quality

of life for Kentuckians (HB1 – 1997)

Law has not changed.

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“U of L to be Premier Nationally Recognized Metropolitan Research University”

“Challenge for Excellence”(1998 – 2008)

“We met Challenge”

2020 Plan

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The weak economy has an impact on us too…

Kentucky Employment Losses

Cuts/Cuts/Cuts

9 for 9

State Individual Income Tax/Sales Tax

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Year State General Fund (000,000)

FY 08 $8,664.0 (a)

FY09$9,005.7 (e-budget '08)

$8,548.4 (r-Nov. '08)$8,426.0 (a)

FY10$9,417.6 (e-budget)$8,412.3 (r-May ‘09)$8,214.0 (r-Aug. ‘09)$8,133.0 (r-Oct. ’09)

FY11 $8,315

FY12 $8,623

Some numbers…(Depressing, aren’t they)

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e – estimatea – actualr - revised

Despite cuts and other distractions,

we are making progress…

And…

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Our Students…

• 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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1. Commitment to quality2. Small campus experience

– Freshman English classes are limited to 22 students– 19:1 student/faculty ratio– Active student advising

3. 250 student organizations and growing4. Our Covenant5. Affordability

Why we are getting the best students…

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Our Graduates…

• 1998 – 1,734 degrees awarded• 2009 – 2,475 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

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Our Research…

Research Funding and NIH Funding

Total grants:

1998 - $42 M

2009 - $140 M

2020 Goal - $400 M

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“From mind to marketplace”

1998 2008 2020 Goal

Startup companies (cumulative) 1 22 34

Patents (cumulative)

Applications filed

151 710 1,064

License option agreements (cumulative)

17 73 110

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

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

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1. Reengineer operations2. Convert underperforming assets to fully

performing assets3. Increase fundraising4. Expand clinical activities5. Develop partnerships6. Improve contract research/commercializing7. Being creative (e.g. TIF)

How do we do this with cuts?

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How do we do this with cuts?

2. Under performing assets…

3. Increase fundraising…4. Expand clinical activities

1. Reengineer operations

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How do we do this with cuts?

5. Develop partnerships…

7. Being creative (e.g.. TIF)

6. Improve contract research/commercialization…

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• Biggest dividends

• Minimized unit cuts

• Continue to leave “carry forward with Deans/VPs

but • We know…salaries/operating/etc.”

Some other thoughts…

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1. We have been challenged, significantly challenged

2. But we have progress, significant progress

3. It isn’t going to get any easier – challenges are not going away

4. But we will stay focused and do the best we can

WHY?

So let’s wrap up…

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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

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The 2020 Plan

What we will try to do

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2020 Strategic Plan Creation

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