1. Louisville Cardinal Editorial Staff October 30, 2009

2. Thank you for this opportunity! 2

3. Goals  Dialogue – ongoing  Some history  Where we want to go  Listen to you 3

4. Economists like pictures and graphs Some dots and a triangle… 4

5. Wind Ice Flood Neurosurgery Personnel Issues And of course, the worst economy since the Great Depression. Last year has had its challenges… 5

6. We know that nationally times have been unprecedented… GDP Declines During Postwar Recessions (peak-to-trough percent change; date is year of peak quarter) 6

7. U. S. Job Loss Are we out of the woods yet? 7

8. …and Kentucky has not been immune to those impacts Nonfarm employment in thousands Sep. 2009 1,758.6 (p) Dec. 2007 1,871.9 8 Employment 2009 = employment 1999 p: preliminary

9. Kentucky Economy: Manufacturing – Our Bread and Butter Manufacturing employment (in thousands) p: preliminary Sep. 2009 208.9 (p) 9

10. We (Kentucky) face challenges Big challenges Structural challenges We will struggle for a while – next biennium budget will be ugly 10

11. 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. 11

12. “U of L to be Premier Nationally Recognized Metropolitan Research University” “Challenge for Excellence” (1998 – 2008) “We met Challenge” 2020 Plan 12

13. The weak economy has an impact on us too… Kentucky Employment Losses Cuts/Cuts/Cuts 9 for 9 State Individual Income Tax/Sales Tax 13

14. 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) 14 e – estimate a – actual r - revised

15. Despite cuts and other distractions, we are making progress… And… 15

16. 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 16

17. 1.Commitment to quality 2.Small campus experience – Freshman English classes are limited to 22 students – 19:1 student/faculty ratio – Active student advising 3.250 student organizations and growing 4.Our Covenant 5.Affordability Why we are getting the best students… 17

18. 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 18

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

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. We have far, far more to do despite the challenges! 21

22. 1.Reengineer operations 2.Convert underperforming assets to fully performing assets 3.Increase fundraising 4.Expand clinical activities 5.Develop partnerships 6.Improve contract research/commercializing 7.Being creative (e.g. TIF) How do we do this with cuts? 22

23. How do we do this with cuts? 2. Under performing assets… 3. Increase fundraising… 4. Expand clinical activities 1. Reengineer operations 23

24. How do we do this with cuts? 5. Develop partnerships… 7. Being creative (e.g.. TIF) 6. Improve contract research/commercialization… 24

25. Biggest dividends Minimized unit cuts Continue to leave “carry forward with Deans/VPs but We know…salaries/operating/etc.” Some other thoughts… 25

26. 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… 26

27. Per Capita Income in All 50 States v. Adults with Bachelors Degrees or Higher - Data for 2007 2007 27

28. The 2020 Plan What we will try to do 28

29. 2020 Strategic Plan Creation 29