1. University of Louisville
Kentucky
CCIM Luncheon
Dr. James R. Ramsey
President
University of Louisville
February 17, 2010

2. Thank you for inviting me! It is an honor to be here with you today.2

3. Our Goals Next Few Minutes
Quick look at the environment
Our responsibility at UofL
Progress on five fronts
All tied to economy/quality of life
Results of recent independent analysis of UofL’s impact
The “Pitch”
Questions

4. Let’s take a quick look at the environment4

5. We know that nationally times have been unprecedented…
Peak
Decline in real GDP
Dec-07 (IV)
-3.70%
Mar-01 (I)
0.40%
Jul-90 (III)
-1.40%
Jul-81 (III)
-2.90%
Jan-80 (I)
-2.20%
Nov-73 (IV)
-3.20%
Dec-69 ((IV)
-0.20%
Apr-60 (II)
-1.10%
Aug-57 (III)
Jul-53 (II)
-2.60%
Nov-48 (IV)
-1.70%
* Lowest level during the current recession. The next two quarters (2009:III and IV) have been positive. 5
Sources: NBER, BEA, and BLS.

6. U. S. Job Loss Are we out of the woods yet?6

7. And Kentucky has not been immune to the downturn

8. Manufacturing – Our Bread and Butter
Kentucky Economy:
Manufacturing – Our Bread and Butter
Manufacturing employment (in thousands)
p: preliminary

9. Kentucky Employment Losses
So??
Kentucky Employment Losses
State Individual Income Tax/Sales Tax
Cuts/Cuts/Cuts
9 for 9
With two more on the way…

10. But We cannot forget… We have a public mission
We are expected to help improve economic opportunity and quality of life for Kentuckians (HB1 – 1997)
Pikeville Dental Clinic - June 2009

11. Despite cuts and challenges…
We are more intensely focused than ever!
We continue to make progress

12. Our progress since reform…
1 – Better students – policy importance
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 12

13. Our progress since reform… Our Commitment going forward
2 - Our Graduates – policy importance
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
A Rhodes Scholar 13

14. Our progress since reform… Our commitment to research
3 – Research – policy importance
Total extramural funding awards:
$42 M
$140 M
2020 Goal - $400 M 14

15. Research, Creativity and Discovery
Adult Heart Stem Cell Transplant
Rebuilding hearts and lives
James Graham Brown Cancer Center
Breast Accreditation
First in Kentucky
Fueling with bio-diesel 15

16. Our progress since reform… Our commitment
4 – Community – policy importance
12th Best “Community” Neighbor University in the country
Earned a B+ from Sustainable Endowments Institute; tied for top honor with Berea College
Scholar House – 56 apartments housing single mothers working on their education
Dental School – dental clinics in Eastern Kentucky
Signature Partnership
Revitalizing neighborhoods
Park Hill
Province
Reynolds Lofts

17. Our progress since reform… Our commitment
5 – The Economy – Everyone understands importance
“The University of Louisville and the city of Louisville drive our state.” – John Calipari, UK Basketball Coach
Courier Journal, January 22, 2010

18. UofL – the Driver Job Creation
From 2003 – 2009 – a time of state budget cuts
9,764 jobs created (direct & indirect)
Roughly – 40% of net new jobs created in Kentucky during the time frame studied
The University of Louisville:
An Engine of Growth from
Manoj Shanker
January 2010

19. We are driving the economy…
Construction projects
Louisville Arena
Center for Translational Research
ShelbyHurst
Outpatient Center 19

20. Major Construction Projects
UofL – the Driver
Major Construction Projects
Belknap Campus
Belknap Entrance/Oval Belknap Research Building Cardinal Station Chemistry Vent Phase I Code Improvements-Fire Safety Community Park Dorm Ekstrom Basement Archives Ekstrom Library Expansion Ernst Hall Greek Housing Houchens-Graduate School Kentucky Trailer Kersey Library Renovation Kurz Hall
Lacrosse Field Minardi Hall MITC Natatorium Old World Pasta Plant Patterson Baseball Stadium Second Street Property The Bellamy The Province Threlkeld Hall Honors Program Trager Center Fieldhouse Trager Field Hockey Expansion Yum Center

21. Major Construction Projects
UofL – the Driver
Major Construction Projects
Health Sciences Campus Cancer Center Renovation Cardiovascular Innovation Institute Chestnut Garage Expansion CII Renovation Clinical & Translational Research Bldg. Delia Baxter Research Dental School 1st Floor Haymarket HSC Fitness Facility HSC Parking Garage II Inhalation Labs Phoenix Place Apartments School of Public Health Tunnel Extension/Improvements
Shelby Campus Center for Predictive Medicine Regional Computer Forensics Lab ShelbyHurst Development Work
Other
Cressman Center – Downtown
Louisville Arena - Downtown

22. Net Increase in Economic Output from FY03 to FY09
UofL – the Driver
Economic Engine
From 2003 – 2009
UofL activities added $1.2 billion to Kentucky’s economic output
Net Increase in Economic Output from FY03 to FY09
Source: Manoj Shanker

23. UofL – the Driver Great Investment
Taxpayer ROI (return on investment)
Every dollar UofL receives in state funds results in an additional $4.12 going into the economy
In 2003 the ROI was $2.71
Source: Manoj Shanker

24. How we do this with budget cuts…
Expense management/reengineering
Focus on “underperforming assets”
Fundraising
Growing clinical programs
Grow research/commercialization/industry contracting
Partnerships
Being creative (e.g. TIF)

25. Economic Growth The Big Picture
Education – “creative class” – jobs follow people
Research – is economic development
Helping build new “clusters
Healthcare/life sciences
Logistics/distribution
Energy
Investing in community

26. Keeping the engines running…
4 keys to Kentucky’s future
Education
The fuel for an economic recovery is educating Kentucky’s citizens. 26

27. Yet – Kentucky Chamber: The Leaky Bucket Corrections

28. Diverting money from our future growth
Other big leaks…
Medicaid
Public employee benefits
Retirement
Health insurance
Diverting money from our future growth 28

29. We need your support… CPE budget recommendations
Fund maintenance and operations for current buildings
Funding for strategic initiatives – retention/graduation
Fund additional classroom space
Keep “Bucks for Brains” alive 29

30. 30

31. Thank you! Questions/Discussion31