1. November 18, 2009 Dr. James R. Ramsey President GLI Top Investors and Executive Committee

2. Economists like pictures and graphs Some dots and a triangle… 2

3. Wind Ice Flood Neurosurgery Personnel Issues And of course, the worst economy since the Great Depression. Last year was a … of a year! 3

4. We know that nationally times have been unprecedented… and who knows? 4 GDP Declines During Postwar Recessions (peak-to-trough percent change; date is year of peak quarter)

5. U. S. Job Loss Are we out of the woods yet? 5

6. Kentucky has not been immune to those impacts Nonfarm employment in thousands 6 Notes: Employment 2009 < employment 1999 Dec. ’07 1872.4 Sep. ‘08 1845.0 Sep. ’09 1758.6 Employment loss – 4.7% State General Fund loss – 4.0%

7. Kentucky Economy: Manufacturing – Our Bread and Butter Manufacturing employment (in thousands) p: preliminary Sep. 2009 208.9 (p) 7

8. We (Kentucky) face challenges Big challenges Structural challenges We will struggle for a while – next biennium budget will be ugly In the words of that great philosopher, Lily Tomlin, “It’s going to get a lot worse before it gets worse.” 8

9. Some numbers… (Depressing, aren’t they) 9 e – estimate a – actual r - revised 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) $8,295 (r-May ‘09) $8,214.0 (r-Aug. ‘09) $8,135.0 (r-Oct. ’09) FY11$8,315.0 (Oct. ‘09) FY12$8,623.0 (Oct. ‘09)

10. 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. 10

11. “U of L to be Premier Nationally Recognized Metropolitan Research University” “Challenge for Excellence” (1998 – 2008) “We met Challenge” 2020 Plan 11

12. The weak economy has an impact on us too… Kentucky Employment Losses Cuts/Cuts/Cuts 9 for 9 State Individual Income Tax/Sales Tax 12

13. But no one is… hanging it up or calling it quits just because we are challenged – To the contrary… 13

14. 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 14

15. 1.Commitment to quality – Our Covenant 2.Affordable 3.Small campus experience – Freshman English classes are limited to 22 students – 19:1 student/faculty ratio – Active student advising 4.Engagement – 250 student organizations and growing – Campus 5.A “research” university 6.Our Community – UofL named one of America's Top 25 'Best Neighbors' - #12 Why we are getting the best students… 15

16. Our Graduates… 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 16

17. And while we like our athletic success… 17 5 th Men’s Basketball (‘08-’09 season) 17 th Men’s Baseball (‘08-’09 season) 22 nd Men’s Tennis (current) 29 th Men’s Swimming/Diving (current) 40 th Men’s Golf (current) 2 nd Women’s Basketball (‘08-’09 season) 11 th Women’s Field Hockey (current) 16 th Women’s Golf (current) 18 th Women’s Rowing (current) 22 nd Women’s Swimming/Diving (current) 22 nd Women’s Indoor Track & Field (‘08-’09 season)

18. How ‘bout these rankings/numbers! 18 #1 World ranking for Cardinal Singers 2 nd Percent of growth in Federal Research funding 2001-08 9.5% Increase in transfer students 11 th School of Dentistry Research rank 12 th Best “Community” Neighbor 13 th Medicaid managed healthcare plan Top 15% Military Friendly School 16 th School of Business Graduate Entrepreneurship 20 th Entrepreneurship productivity 20 th Number of Fulbright Scholars 20 th University increase/jump in Business Week public ranking 24National Merit Scholars in Freshman class Fast 50 – Jonathan Blue – Louisville’s fastest growing privately held company

19. Our Research… 19 Research Funding and NIH Funding Total grants: 1998 - $42 M 2009 - $140 M 2020 Goal - $400 M

20. “From mind to marketplace” 199820082020 Goal Startup companies (cumulative)12234 Patents (cumulative) Applications filed 1517101,064 License option agreements (cumulative) 1773110 Note: By 2008, 130 patents were issued, a 136% increase since 1998. 20

21. And our research helps Kentucky... The Conn Center for Renewable Energy Research and Environmental Stewardship Argonne National Laboratory Cancer Care/Drugs E.g. Gardasil Heart care/research E.g. Adult Stem Cells to regenerate heart 21

22. Our faculty is critical to Kentucky’s healthcare… State of the art medical care provided by 460 faculty physicians who are the best teachers and researchers James Graham Brown Cancer Center University Hospital Level I Trauma Center The safety net for the underinsured and the uninsured – ULH: 21% uninsured normal times; today => 30% 22

23. We are driving the economy… New arena and other construction projects ShelbyHurst Louisville Arena Haymarket Center for Translational Research 23 Since 2002 – over $800 million in capital construction

24. We have… Been challenged Made progress Have more to do And despite challenges, we are focused and committed. And we embrace “Idea City” Louisville will be the idea capital of the world, where imaginations and individuals thrive 24

25. 25 Keeping the engines running… 4 keys to Kentucky’s future Education The fuel for an economic recovery is educating Kentucky’s citizens.

26. Education Pays Per Capita Income in All 50 States v. Adults with Bachelors Degrees or Higher Data for 2007 2007 26

27. Students or Inmates? 27

28. 2010 Legislative Priorities 28 Fund maintenance and operations for current buildings Increase base funding Fund additional classroom space Keep “Bucks for Brains” alive Support CPE Recommendations

29. We need your support… You are our messengers to the legislators! 29

30. THANK YOU! 30