Young AlumniNew York City, New York

Dr. James RamseyPresident, University of Louisville

Thank you for being here!

We love being in the

Some Blue Dots and A Red Triangle

15% 20% 25% 30% 35% 40%$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

New video here

Great Things Are Happening But It Hasn’t Been Easy

1st Q05

2ndQ05

3rdQ05

4thQ05

1stQ06

2ndQ06

3rdQ06

4thQ06

1stQ07

2ndQ07

3rdQ07

4thQ07

1stQ08

2ndQ08

3rdQ08

4thQ08

1stQ09

2ndQ09

3rdQ09

4thQ09

1stQ10

2ndQ10

3rdQ10

4thQ10

1st Q11

2nd Q11

3rd Q

11

4th Q11

-10

-5

0

5

10

2.8%

US GDP

Very slow recovery

Kentucky Employment Non Agricultural December 2011

1750.0

1770.0

1790.0

1810.0

1830.0

1850.0

1870.0

1890.0

Jan '991769.4

Oct '001833.6

Jul '031777.6

Nov '071872.4

Dec '111808.7

Notes – 1 – Most people employed since January 20092 – Still 63,700 fewer people working today

63,700 job loss

Kentucky Employment ManufacturingDecember 2011

Jan-99

Jul-99Jan

-00Jul-0

0Jan

-01Jul-0

1Jan

-02Jul-0

2Jan

-03Jul-0

3Jan

-04Jul-0

4Jan

-05Jul-0

5Jan

-06Jul-0

6Jan

-07Jul-0

7Jan

-08Jul-0

8Jan

-09Jul-0

9Jan

-10Jul-1

0Jan

-11Jul-1

1Jan

-12200.0

220.0

240.0

260.0

280.0

300.0

320.0

308.3

Dec '11217.3

• Economy• Productivity gains• Offshore

Some Observations•New economy

– Knowledge based– Human capital…

Microsoft/Google/etc.•Global economy• Paradigm shift

– Jobs follow people– Richard Florida – Creative Class

3 T’s

Some Observations• Importance of New Clusters

– Healthcare/Life science Human genome project – game changer

– Logistics/distribution But…

– Advanced (“additive”) manufacturing Nano/MEMS

– Energy Renewable

– Business services Start-ups/Entrepreneurial

What’s all this have to do with Higher Education?

• Creating “creative class”– Human capital – Brightest

• Research– It is economic development– Start-ups– Business proximity (Milken Institute)

•Quality of life– Social/culture/artistic vibrancy– Owsley Brown effect

Rather Than Investing In Higher Education

• Revenue growth FY 07-12 – 1.1% • Expenditures – the bad news

— Some History

FY 07-12

Medicaid 32.1%

Health Insurance

Schools 33.1%

State Government 14.6%

KTRS 40.9%

KERS 75.0%

Debt Service 14.5%

Corrections 13.0%

Student Financial Aid 14.6%

“Higher Ed” -4.8%

%

Students or Inmates?

Source: KY Chamber of Commerce – Leaky Bucket

Education PaysPer Capita Income in All 50 States v. Adults with Bachelors Degrees or Higher

Data for 2009

15% 20% 25% 30% 35% 40%$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

$31,883

Some Numbers1998 2002* 2011

Average ACT score of all entering freshmen 21.4 23.2 24.7

6-year Graduation Rate 30.1% 33.0% 50.8%

Undergraduate Degrees Awarded 1,734 1,849 2,618

Doctoral Degrees Awarded 76 90 163

Research Expenditures $39.1M $80.9M $195.5M

Formal Patents Issued 55 72 190

Start-Up Companies (cumulative) 1 6 36

Endowment $317.0M $478.9M $773.3M

Today and Going Forward…We Need You More Than Ever!

• Be engaged• Help us communicate• Help us recruit• Talk to policy makers• Give back