1. 2nd Annual Progress Report Board of Trustees June 2008
Strategic Plan
2nd Annual Progress Report
Board of Trustees
June 2008

2. 2006-2009 Strategic Plan Five Goals
I. Enhance the University’s Stature among its Peers
II. Prepare Students for Leadership in the Knowledge Economy and Global Society
III. Enhance the Intellectual and Economic Capital of Kentucky through Growth in Research
IV. Embrace and Nurture Diversity
V. Engage Kentuckians through Partnerships to Elevate Quality of Life

3. Measures Across Six Domains
Strategic Plan
Measures Across Six Domains
Undergraduate Education
Graduate and Professional Education
Faculty Development
Research
Engagement
Staff Development

4. Undergraduate Education
Measures of Progress
BASELINE
Year 1
Year 2
Year 3
2009
Milestone
Progress
ACT/SAT Middle 50%
21-27
Available fall 2008
22-28 
High School GPA Middle 50%
Student to Faculty Ratio
17.6 to 1
17.9 to 1
17.4 to 1
17.2 to 1 ▲
Six-year Graduation Rate:
African American
All Students
46.2%
59.8%
45.0%
59.1%
50.3%
61.4%
47.5%
62.0%
Education Abroad Participants
450 (est.)
481
551
600
Recall that when we established the milestones we used fall 2006 data as the baseline for ACT and GPA, so there is a lag until fall 2008 for getting Year 2 data.
Note that we have found 7 more students with degrees, and the six-year graduation rate jumped to 61.4%, rather than 61.2%.

7. Undergraduate Education Highlights
Student Success
Advising
Tutoring
Academic Alert System
USP Revision
Internationalization
Transfer Study
Undergraduate Education Highlights
Strengthened advising and tutoring to support students in their academic pursuits, and required reporting of mid-term grades for undergraduate students to facilitate timely intervention by advisors.
Implemented new Academic Alert System to identify students at risk and provide them with additional support; improved fall-to-spring retention to 91.6% -- the highest since fall 2003 – and improved the first-fall GPA of new freshmen from 2.63 in fall 2006 to 2.75 in fall 2007.
Established Design Principles of a Revised General Education Curriculum with University Senate approval to guide general education reform.
Established a Director of Study Abroad and developed Study Abroad Business Plan. The Plan contains measures to improve risk-management, increase avenues for international experiences for students across the campus, and puts forth a plan to minimize financial obstacles to study abroad. UK saw a significant increase in the academic year in the number of students participating in study abroad programs (from 481 to 551).
Established Trustees Scholarship for KCTCS transfer students; assigned a full-time undergraduate admissions recruiter to KCTCS; and conducted research study of transfer student enrollment and success at UK, all aimed toward reversing the persistent decline in new transfer student enrollment.

8. Graduate/Professional Education
Measures of Progress
BASELINE
Year 1
Year 2
Year 3
2009
Milestone
Progress
Doctorates & Professional Doctorates Awarded
634
653
Available fall 2008
694 ▲
Graduate Degrees Awarded to Minority Students:
African American
All Minorities 69
109 75
117 80
130

11. Graduate/Professional Education Highlights
Record number of research doctorates awarded
National exposure for UK graduate students
International applications increased by 9%
Graduate / Professional Education Highlights (there are a few more below than in the slide)
Produced a record number (N=294) of research doctorates in (note that this excludes the first professional degrees)
Funded over 560 students to present research findings at national conferences
Hosted the National Conference on Graduate Student Leadership
Held the second UK Graduate Student Interdisciplinary Conference with over 75 posters and presentations
Increased international applications by 9%

12. Faculty Development  ▲ Measures of Progress
BASELINE
Year 1
Year 2
Year 3
2009
Milestone
Progress
Number of Faculty*
1,942
2,028
2,057
2,023 
Percent Female Full-Time Faculty*
33.2%
33.5%
34.6%
34%
Percent Minority Full-Time Faculty*
African American
All Minorities
3.4%
14.7%
15.8%
3.5%
16.1% 4%
14% ▲
Average Salary Relative to Benchmark Median
89.1%
89.2%
89.4%
91%
National or International Awards
90**
117
10% above baseline
NOTE Gold Box and Star --- Percent Female Full-Time Faculty – This is the first time we have ever attained this EEO goal, and it deserves some attention. The 34% goal, based on studies of availability, was established quite a few years ago.
NOTES on Number of Faculty –
Fall 2006 Full-time Faculty and where they went
2028 full time faculty in fall 2006
-179  faculty who left their positions (this includes FT temporary or visiting faculty who are recognized in official counts)
-  16  faculty who now have academic administrator assignments and are not included in official FT faculty counts
-  21  faculty who are now VA faculty and are not included in official FT faculty counts
1812 full time faculty who returned as such in fall 2007
Fall 2007 Full-time Faculty and where they came from
1812 returning faculty in fall 2007
 +12 faculty returned from academic administrator assignments
  + 6 faculty returned from VA assignment
1830  total faculty returning from previous faculty, VA or administrator assignments
+168 new faculty hired from outside the university
 + 59 new faculty who held a different position at UK in fall 2006
2057 total full time faculty reported in fall 2007
In summary, we appointed 227 new faculty in fall 2007.  Of these 227, 168 came from outside UK and 59 moved from other positions (professional staff, house staff, postdocs, PT faculty, etc.) within UK.  With 179 departed faculty from fall 2006, UK actually netted a total of 48 new faculty positions. This shows up as a net of 29 because 19 were counted as academic administrators or VA faculty.
Average Salary Relative to Benchmark Median – this is the average salary data for the group of instructional faculty as defined by IPEDS – regular, special title and lecturer series, excluding ALL College of Medicine, Ag Extension, and library faculty and excluding those faculty with more than 50% in administrative assignment. With a 5% pool, this group of faculty saw a 4.3% average salary increase, compared to a 4.1% increase for the benchmark median. Thus, we gained somewhat.
National or International Awards – The colleges have identified 313 national and international associations that should be considered for tracking recognition awards and honors bestowed upon faculty. Included in these 313 associations are those also tracked by TheCenter and Academic Analytics. In 2007, the colleges reported 90 awards to faculty from these associations; in 2008, they reported 117 (in reality, these numbers are probably a little higher, as I am quite sure that somewhere along the line, someone was missed).
*All faculty numbers include library faculty.
**The baseline was established during Year 1.

14. Faculty Development Highlights
Faculty Recruitment
Website
Enhanced New Faculty
Development Sessions
Annual Directory
Department Chair Support
Faculty Development Highlights
Created new website for faculty recruitment, orientation, and development; highlighted promotion and tenure policies and procedures.
Initiated monthly faculty development sessions for new faculty with average attendance of 25 participants. Sessions included promotion and tenure, diversity in the classroom, and an emphasis on networking.
Completed first annual directory of new faculty.
Established online resources for department chairs to orient them to policies, procedures, and mentoring activities
Three faculty selected to participate in new Southeastern Conference Academic Consortium (SECAC) Academic Leadership Development Program (ALDP)

15. Research Productivity
Measures of Progress
BASELINE
Year 1
Year 2
Year 3
2009
Milestone
Progress
Number of Programs in Top Quartile 17
18* 20 ▲
Total Research Expenditures**
(in millions)
$307
$324
$332
$350
Citations of Publications
44,928
48,231
Available July 2008
49,000
Top Quartile Programs (leaving the final number open until end of June to give deans additional time to identify others…..)
Anatomy and Neurobiology (NIH and Academic Analytics)
Behavioral Science (NIH; referred to as Psychology by NIH)
Business Administration (Academic Analytics)
Computer Science (Academic Analytics)
English Language and Literature (Academic Analytics)
Entomology (Academic Analytics)
Hispanic Studies (Academic Analytics)
Molecular and Biomedical Pharmacology (NIH)
Molecular and Cellular Biochemistry (NIH)
Nursing (Academic Analytics and USNWR)
Nutrition Sciences (Academic Analytics)
Obstetrics & Gynecology (NIH)
Pharmaceutical Sciences (NIH)
Pharmacy (USNWR)
Plant Pathology (Academic Analytics)
Political Science (Academic Analytics)
Psychology (Academic Analytics and USNWR)
Public Finance (USNWR)
Baseline and Year 1 Top Quartile Programs
Anatomy and Neurobiology (NIH & Academic Analytics)
Behavioral Science (NIH)
Molecular and Cellular Biochemistry (NIH)
Communications (Academic Analytics)
Educational Leadership (Academic Analytics)
English Language and Literature (Academic Analytics)
Entomology (Academic Analytics)
Hispanic Studies (Academic Analytics)
History (Academic Analytics)
Nursing (US News & Academic Analytics)
Obstetrics & Gynecology (NIH)
Molecular and Biomedical Pharmacology (NIH)
Pharmacy (US News)
Philosophy (Academic Analytics)
Plant Pathology (Academic Analytics)
Public Administration (US News)
Public Finance (US News)
TOTAL RESEARCH EXPENDITUERS – RECALL THAT THIS NUMBER IS FOR RESEARCH EXPENDITURES, WHICH IS DIFFERENT THAN GRANT AND CONTRACT AWARDS. I WILL BRING THE MOST RECENT VERSION OF THE DIAGRAM ANGIE AND I ARE WORKING ON TO DEPICT THE DIFFERENCE.
* Preliminary
** As reported on National Science Foundation Survey of R&D Expenditures in Universities and Colleges
in science and engineering fields

16. in science and engineering fields.
Based on National Science Foundation Survey of R&D Expenditures at Universities and Colleges
in science and engineering fields.

17. Research Highlights Record-high research expenditures in FY2007
Awards down 8.4% in FY2008 through April
Key awards:
$5.4M to Agriculture from Gates Foundation
$4.5M to Medicine from KCHFS
$3.1M to Center on Aging from NIH
$10.2M to Agriculture from NIH Superfund Grant
$5M to KGS and $2M to CAER from state
Research Highlights
In spite of a shrinking federal research budget, federal research expenditures increased from $151.2 million in FY to $154.7 in FY (a 2.2 percent increase).
Federal research expenditures in science and engineering fields reported to the National Science Foundation (NSF) in showed an increase of 2.9% over the previous year; whereas, UK reported an increase of 5.9% for the same time frame (based on NSF report released in November 2007).
Through April 2008, overall grant and contract awards are 8.4 percent below where they were for the same period last year. Federal awards for the same period are 7.4 percent lower.
Key awards in included $10.2 million to Agriculture from NIH Superfund grant; $5.4 million to Agriculture from the Gates Foundation; and $4.5 million to Medicine from the Kentucky Cabinet for Health and Family Services.
Additional notes;
$10.2M NIH Superfund Grant on Nutrition and Superfund Chemical Toxicology. This is a renewal award. UK’s application was one of only two selected from among 18 university applications nationally. There are only 14 programs in the entire U.S. Bernie Hennig is the PI.
Kentucky Geological Survey received $5M from the state (HB1 special summer session 2007) to investigate underground storage of CO2. Center for Applied Energy Research received $2M in the same bill, which is being used for capital improvements at the laboratory.

18. Engagement ▲ Measures of Progress Year 1 Year 2 Year 3 2009 Milestone
Develop and pilot a university-wide assessment strategy to inventory engagement activities and provide information on outcomes and impacts.
Five stage process defined; now at stage three.
Six-point assessment strategy established; now moving toward documenting outcomes
Engagement assessment strategy established; outcomes/impact information available ▲
Undertake and evaluate at least three major engagement projects designed to have significant economic impact.
Six projects identified for impact evaluation by 2009.
Ongoing
Economic impact of three major engagement projects evaluated and made available
Will use 6-point checklist to evaluate progress for More detail in notes for next slide:
Inventory Engagement Activities
Achieve Carnegie Engagement designations
Document impact of Commonwealth Collaboratives
Attain regional and national prominence in Engagement
Work with CPE to define and measure statewide engagement indicators
Begin to establish baselines for NASULGC engagement indicators

19. Engagement Highlights
Engagement Measurement
Carnegie Outreach and
Partnerships Classification
13 new Commonwealth
Collaboratives
KY Engagement Conference
Engagement Highlights
Established six-point checklist as assessment strategy to measure progress:
1. Inventory UK Engagement Activity – Collected engagement activity from 432 faculty and staff using the UK Engagement Measurement Instrument.
2. Achieve both levels of Carnegie Classification as an engaged institution – “Outreach and Partnership” designation achieved; now working on “Curricular Engagement” designation.
3. Document impact through the Commonwealth Collaboratives – Evaluation of impact of first-round Commonwealth Collaboratives underway and 13 new Commonwealth Collaboratives established.
4. Attain regional and national prominence in engagement – sponsored annual Kentucky Engagement Conference for last three years; now being modeled in Texas and Michigan.
Collaborate with Council on Postsecondary Education to define statewide engagement indicators – in fall 2007 submitted first round of accountability data to CPE on the nature and extent and engagement activities supported by faculty and staff
Begin to establish UK baselines relating to NASULGC pilot engagement criteria – in planning for

20. Staff Development  ▲ Measures of Progress BASELINE Year 1 Year 2
2009
Milestone
Progress
Complete compensation analysis and implement enhancement plan. --
Compensation analysis completed
Staff salary adjustments completed
Enhancement plan implemented. 
Percent Minority in Executive/Administrative/ Managerial positions:
African American
All Minorities
3.7%
5.3%
4.9%
6.8%
4.6%
6.7% 5% 6% ▲

21. Staff Development Highlights
Staff salary enhancement
Staff Shared Leave Pool
Family Education Program
Program enhancements for—
career advancement and professional development
supervisor effectiveness training
Staff Development Highlights
Moved appropriate staff (N=2,593) to at least first quartile of pay grade based on time in position; total Funds expended for increases = $3,773,426 ($2,344,559 general funds)
Enrolled 50 Sponsored Dependents in health care benefits program
Family education program (FEP) participants totaled 320 in Fall 2007 and 306 in Spring 2008; over 60 enrolled for Summer I & II. Total cost for was approximately $1.2 million.
Manager hired to support career advancement and professional development programming
Training Specialist hired to initiate efforts to improve supervisor effectiveness of performance management and evaluation
Staff shared leave pool initiated in August
Total vacation leave donated = 440 days (3, hrs)
148 employees donated
45 applications received
10 applications approved
total leave hours provided to applicants = 1,444.50

22. Key Indicator Summary ▄ ▲  ACT/SAT High School GPA
Student to Faculty Ratio
Six Year Graduation Rate
Education Abroad Participants
Doctorates Awarded
Graduate Degrees to Minorities 
Total Faculty
Female Faculty
Minority Faculty
Average Faculty Salary
Faculty Awards
Top Quartile Programs
Research Expenditures
Citations
Staff Enhancement
Minority E/A/M Staff
Two measures show no progress (black box).
Eleven measures show some progress (green upward arrow)
Four measures show achievement (blue stars).

23. Annual Progress Report Board of Trustees June 2008
Strategic Plan
Annual Progress Report
Board of Trustees
June 2008

24. UNIVERSITY OF KENTUCKY
Board of Trustees
June 17, 2008
Summary
Operating
and Capital Budget

25. UK’s Original Operating Budget
through
In Millions
Total budget increased from $1.1 billion in to $2.2 billion in , a 110% increase
Over the last 10 years, total state appropriations have increased 12%; tuition and fee revenue 156%, and the hospital system 182%

26. Original Budget 1998-99: $1.1 Billion 2008-09: $2.2 Billion
Tuition and Fees
State Appropriations
Tuition and Fees
State Appropriations
: State appropriations and tuition and fee income = 37%, or $388.5 million of UK’s $1.1 billion budget ;
: State appropriations and tuition and fee income = 26%, or $579.3 million of UK’s $2.2 billion budget;
‘Other’: endowment and investment income; auxiliary and self-supporting units such as housing and dining; and fund balances;
State Appropriations
Tuition and Fees
UK HealthCare
Gifts, Grants, & Contracts
Affiliated Corporations
Other

27. Tuition and Fee Revenue vs. Net State Appropriations
Funds available for the primary instructional mission include: -tuition and fee revenue and
-state appropriations for operations.
State funds for operations do not include funds for:
debt service of bonds ($4.6 million in 08-09) and
mandated programs ($80 million in 08-09)for non-instructional purposes
agriculture cooperative extension service
Ag experiment stations
Kentucky Geological Survey
The burden of cost of instruction has shifted from the state to the student.
For the first-time, tuition and fee revenue is expected to exceed net state appropriations.
: state funds = 65% and tuition & fees revenue = 35%.
: state funds = 48% and tuition & fees revenue = 52%;
Note: State appropriations are net of debt service and mandated programs.
*Projected

28. Fund Balance Nonrecurring 3.7%
Undesignated General Funds
for Educational and General Activities - Recurring
State Appropriations - Operating
$316,853,500
Tuition
225,075,800
Other (e.g., investment income)
26,605,300
Total
$568,534,600
Designated Funds - Recurring
UK HealthCare
$764,659,100
UK Research Foundation
268,174,900
Gifts, Grants, and Contracts
227,842,800
Athletics
65,496,300
Fees (e.g., noncredit, mandatory, housing, dining, course, program)
32,681,500
Federal and County Appropriations
31,824,000
Other Affiliated Corporations
19,862,600
State Appropriations - Debt Service
4,649,100
Other (e.g., sales and services, restricted endowment earnings)
139,974,200
$1,555,164,500
Fund Balance - Nonrecurring
 $81,155,400
Grand Total
$2,204,854,500
Operating Budget
Fund Balance Nonrecurring 3.7%
Undesignated Funds %
Funds:
recurring undesignated funds
Recurring designated funds
non-recurring fund balance
Recurring vs. Nonrecurring
Recurring: revenues that expect to be earned or received every year and expenses that are paid every year
State appropriations, tuition, clinical income
Salary and wages, benefits, and utilities
Recurring expenses should be supported with recurring revenues or must find one-time savings every year to cover costs

29. Absorb Recurring Cut with Recurring Funds
Priorities
Absorb Recurring Cut with Recurring Funds
Minimize Tuition Increase
Protect Scholarships
Minimize Reduction in Workforce
Cover Health Care Premium Increase
Preserve Staff Enhancements
Priorities considered as we developed the recommended budget:
Remain good stewards of the university’s financial resources
Protect student access by minimizing tuition increases and ‘purchasing power’ of scholarships; we are here for the students;
Keep the elimination of positions as low as possible
Keep as much net pay in the pockets of our employees as possible;

30. Changes in Recurring Funding Sources Undesignated General Funds, 2007-08 to 2008-09
State Appropriations (6% Cut)
($19,817,500)
State Appropriated Earmarks:
Robinson Scholars Programs
$1,000,000
Joint Engineering Program
250,000
Mining Engineering Scholarships
100,000
Oenology & Viticulture Program
1,600,000
Tuition Revenue
7,946,400
Other Net Revenues
1,092,900
Total
($9,178,200)
Undesignated General Funds are expected to decrease $9.2 million, or 1.6%:
Not only do we have a state budget reduction, we also have financial pressure from lower than expected tuition revenue.
Tuition Revenue: Function of tuition rates and enrollment
CPE has the statutory responsibility to establish tuition and mandatory fees;

31. Changes in Recurring Funding Needs Undesignated General Funds, 2007-08 to 2008-09
Personnel
$ 3,592,800
Utilities
2,310,100
Student Financial Aid
1,400,000
Dedicated Tuition Revenue
1,352,700
State Appropriated Earmarks
1,600,000
Operating Expenses
758,900
Total
$11,014,500
Personnel:
Mid-year faculty salary increase effective 1/1/ $1,236,500
Faculty and highly technical staff ‘fighting fund’ $1,100,000
Health Benefits (3.5%) $850,000
Faculty promotions $446,000
Student Financial Aid – as a result of tuition rate increases -- $1.4 million increase in core scholarships (about 3% increase on $47.9 FY base).
Tuition revenue – additional revenue generated by expanding Pharmacy, Physical Therapy, Physician Assistant, and nursing programs;
Utilities: 11% increase – not enough.
Operating Expenses: $350,000 for providing more services to hospital (hospital paying cost thru service assessment); internal audit; materials management; legal office; and, $260,000 for summer school expenditure budget;

32. Budget Summary Undesignated General Funds, 2007-08 to 2008-09
Total Sources
( $9,178,200)
Total Needs
11,014,500
Funding Gap
($20,192,700)
Response:
Budget Reduction Allocated to Colleges and Units - Recurring
$14,000,000
Reallocation from Central Sources - Recurring
4,315,200
Fund Balances - Nonrecurring
1,877,500
$20,192,700
Need $20.2 million recurring; only identified $18.3 million – balancing the budget using $1.9 million of fund balances;
Allocated $14 million across the institution
Reduced budgeted faculty and staff benefits to more closely align budget to projected actual -- $4.3 million
Using $1.87 million of nonrecurring funds to balance budget.

33. 2008-09 Strategic Investments Provost’s $3.5 million pool
Strengthening student success
Serving the Commonwealth
Leveraging synergies across academic disciplines
With the Deans, Provost created a $3.5 million strategic investment pool to have some funds to:
improve student success;
provide critical services to the Commonwealth;
and build upon academic synergies.
The pool will be distributed back to the colleges in the summer for high priority programs and critical needs.

34. Budget Reduction Impact Undesignated General Funds
(As of June 10, 2008)
Elimination of 188 positions supported with undesignated General Funds:
71 vacant faculty lines
117 staff positions (102 vacant)
32 additional positions no longer supported with General Funds:
1 faculty line
31 staff positions
$3.7 million reduction in operating expense budgets
A total of 220 positions supported with undesignated General Funds are impacted (these are also known as ‘State’ and ‘Mandated’ funded positions.
188 positions eliminated
71 vacant faculty lines
117 staff positions (including 102 vacant positions and 15 filled positions)
32 positions were moved to other fund sources causing a ripple effect throughout the institution as, in most cases, it was ‘new’ revenue to the University.
$3.7 million reduction in operating expense budgets.

35. 2008-09 Capital Budget Highlights
Construct Biological Pharmaceutical Complex
Legislative Authorization: $132.8 million
UK Board of Trustees Approved Scope: $132.8 million
Construct Patient Care Facility Legislative Authorization: $700 million
UK Board of Trustees Approved Scope: $450 million
Expand and Upgrade Livestock Disease Diagnostic Center Legislative Authorization: $28.5 million
UK Board of Trustees Approved Scope: $8.5 million

36. In Conclusion
The budget before you is far from perfect. There is pain here that no one seeks and no one deserves. In it lies the sacrifice of our students, who will pay more tuition. In it too lies the sacrifice of our faculty and staff, who will not see their pay increase.
We do a disservice to those sacrifices if we abandon our aspirations or put them on hold until circumstances change.
Every budget represents a choice. We can choose to go forward or we can choose to retreat. Today we choose to go forward.
-- Lee T. Todd, Jr., President