1. Business First Editorial Board Dr. James Ramsey President, University of Louisville NOVEMBER 8, 2013

2. 2 Thank you

3. LOUISVILLE.EDU Our Trajectory – Pretty “Damn” Amazing

4. LOUISVILLE.EDU 4 http://www.ksba.org/protected/PrintArticle.aspx?iid=50GAYB&dasi=3UBI So, While Modest Economic Recovery, State Budget (2008-14) Continues To Be Ugly Because of Expenditure Side of Budget

5. LOUISVILLE.EDU 5 The Real Issue 136,290,000 US jobs December 2007 137,982,000 Jobs lost in the recession Jobs gained in the recovery US jobs September 2013 Still 1.69m fewer people working today http://beta.bls.gov/dataViewer/view/timeseries/CES0000000001 http://www.deptofnumbers.com/employment/us/

6. LOUISVILLE.EDU 6 Kentuckians working August 2013

7. LOUISVILLE.EDU 7 But there is more to it Kentucky Manufacturing Employment Why Important? WAGES! August 2013

8. LOUISVILLE.EDU 8 Just a little comparison U.S.KY Jobs Lost7,500,000120,000 Jobs Regained5,787,00096,300 % of Jobs Regained77%80%

9. LOUISVILLE.EDU 9 Continue to face difficult state and fiscal challenges that impact our future Slow State General Rund revenue growth (estimate 2013/14 is 2.5%, FY 14/15: 2.4%, FY 15/16: 2.3% State’s structural budget imbalance still exists (more funding needed for state pensions) Our Outlook

10. LOUISVILLE.EDU 10 Limited / if any funding for higher education Funding, if available, tied to “performance” Funds, if available, tied to specific initiatives; i.e. “college readiness” Continued pressure on modest tuition increases Tough Fiscal Outlook to Continue 2014 - 2016 Our Outlook

11. LOUISVILLE.EDU 11 1. Continuing re-engineering of processes and expense management 2. Aggressively improving balance sheet management, with an emphasis on converting underperforming assets 3. Increasing clinical income to support education and research 4. Increasing contract research and commercialization income 5. Creating private sector partnerships 6. Being creative in expanding the research mission through innovative financing tools like the tax increment financing plan 7. Enhancing fund raising “Our Seven Strategies”

12. LOUISVILLE.EDU 12 Our Trajectory 1.Continue on our trajectory – 2020 Plan 2.Trajectory slows down – push out date in 2020 Plan 3.We accept where we are – flatline 4.The “unthinkable.” Possible Paths of Future

13. LOUISVILLE.EDU 13 Next step in campus discussions of “University of 21 st Century” 1. “Clusters” of excellence 2. Reviewing education delivery models that are student centered 3. Look at organization/structural/financial processes 4. Build culture of excellence

14. LOUISVILLE.EDU 14 Um – Not Good, is it Well – no one knows, but my guess is “OK” recovery will continue in Kentucky KY will continue to add jobs, but … probably late 2014 before we return to job level of late 2007 Jobs of the future continue to be different than jobs of the past “Pockets” of problems — e.g. Eastern KY But what does the future hold for Higher Education in 2014 Biennial Budget Session

15. LOUISVILLE.EDU 15 Other Expenditure areas of budget will be higher priority than higher education – because questions of: o Is Higher Education accountable? o Is Higher Education effective? o Higher Education hasn’t sold itself o Higher Education has alternative revenue sources And: