President, Provost and Dean’s meeting May 27, 2009

“It was the best of times, it was the worst of times. “ - Charles Dickens CEHD Neurosurgery Economy/Budget A Challenging Year

3 We know that nationally times have been unprecedented

US Monthly Job Loss

5 And Kentucky has not been immune to those impacts (Nonfarm employment in thousands) Oct ,833.6 Apr ,788.4 (p.) Jun ,870.8 p: preliminary Update as of Friday 5/22/09 Jun ,777.6 Note: Kentucky employment today is the same as a decade ago

6 Loss of Manufacturing Jobs in KY Continues to be a Major Concern p: preliminary (p) Apr Jan. 1999

Of course… Employment Losses Cuts/Cuts/Cuts 9 for 9 State Individual Income Tax/Sales Tax

Options Throw in the towel – give up on mandates Limp Along Remain focused/committed and passionately committed to our task

1.Reengineer 2.Underperforming strategies 3.Fundraising 4.Clinical Income PPP University of Louisville Hospital 5.Partnerships 6.Contract research/commercializing 7.Being creative (e.g. TIF) Our 7 Strategies to Achieve Mandates Given Fiscal Environment

Examples $100 million in cuts, savings & efforts to find money to move forward Refinanced debt Self-funded health insurance Power-down vending machines

To offset cuts… Leased internet space Dataseam

Dataseam - to offset cuts

Investing in quality at U of L Alumni giving fiscal year goal increase 17% $93,000,000

Enhanced food service Partnership Student Housing – The Province Siemens Energy Audit

Building Clinical Income Outpatient Center

Challenges Remain, But we’ve made progress…

Freshman class average ACT – 24.4 State avg. – 20.8 National avg. – 21.2 Our Students

U of L Graduates 2,396 degrees awarded on May 9 th – Up 38% (662 students) since beginning of reform Graduation rates are up to 45.7% 7 Fulbright Scholars in 2009 First time more students from outside Jefferson County than inside

Making Kentucky a better place Research Funding and NIH Funding Total grants for $102 M

Investing in quality at U of L The Conn Center for Renewable Energy Research and Environmental Stewardship

Economic Development for the Community New arena and other construction projects ShelbyHurst Louisville Arena Haymarket

Frankfort – Budget FY10 - ??? CFG this week Stimulus FY10/FY11 Since we last met

Stimulus FY10/FY11 Competitively Determined NIHDOENSFOther State 3b 1b Medicaid 1b Education Designated $350 mm K-12 Higher Ed $550 mm 1b Other

Thank you for your leadership!