1. LOUISVILLE.EDU Dr. James R. Ramsey, President, University of Louisville The American College & University ELFH 678 April 3, 2014 1

2. Thank You Let’s start with some history of higher education in Kentucky 2

3. Founded 1780 A Brief History of Transylvania University Since its founding in 1780 as the first college west of the Allegheny Mountains, Transylvania has been pioneering new frontiers in higher education Transylvania University 3

4. A Brief History of the University of Louisville 4

5. HB1: “Postsecondary Education Improvement Act” HB4: $$$ Past 17 Years Have Been Real Game Changers! Landmark Date in UofL History 1997 “Higher Education has a public agenda – increase economic opportunity/improved quality of life for people of our communities/state” UofL’s specific statutory mandate Funding to achieve mandate Special Legislative Session KY General Assembly 5

6. Increased funding –Base budgets increased –“Jump start” funds for research –$350M Bucks for Brains –Increases in student financial aid (e.g. lottery) Golden Era of Higher Education 1997-2002 6

7. But Kentucky’s twelve years have been a challenge February, 2014 (P) Preliminary http://www.bls.gov/eag/eag.ky.htm 7

8. And of Course – The Reality of Being a Manufacturing State Our Best Paying Jobs 8 February, 2014 http://www.bls.gov/eag/eag.ky.htm (P) Preliminary

9. So What’s All This Mean to Us - UofL? The Kentucky “General Fund” Kentucky State General Fund$9.3B100% Individual Income Tax$3.7B40% State Sales Tax$3.1B32% Combined$6.7B72% Income Tax/Sales Tax highly correlated with economic activity — i.e. Employment! People working! State Funded? OR State assisted? FY 13 9

10. And so… The State Budget Has Been A Challenge (2008-2014) Slow Revenue Growth/Structural Imbalance 10

11. In Fact 11 2002 – 2005 5 State Budget Cuts 2007 – 2015 9 State Budget Cuts

12. Strategy one – “Pick low hanging fruit.” $114.8M in cost efficiencies NOTE: Not always easy How have we (UofL) moved forward in a tough fiscal environment 12

13. Strategy two – Taking “underperforming assets and making them perform.” 13 NOTE: Some outcry

14. Strategy three – Increasing value from our research/IP Dr. Suzanne Ildstad 14

15. Strategy four – Use private sector to do what we are not good at 15

16. Strategy five – Generate clinical income to support teaching/academics Joint Operating Agreement with UofL Hospital UofL Physicians 16 NOTE: A challenge

17. $5.5 M Strategy six – Being creative and clever, what no other universities do 17

18. And biggest yet Belknap Research Park 18

19. $600 M $750 M $983 M $1B Strategy seven – Our friends/alums/donors – increase philanthropic support “Hot shot” consultant 2010 Our BOT TodayApril 10, 2014 19

20. Importance of “Seven Strategies” 20 Fiscal Year 2001-02 Fiscal Year 2013-14

21. Our Trajectory – Pretty “Damn” Amazing 21

22. And the fiscal challenges continue … FY15 2.6% FY16 2.6% 22 Governor Proposed -2.5% -0-

23. As we speak 23 House/Senate free conference committee -1.5% cut but New classroom building

24. But in addition to fiscal challenges, we face Market challenges Questions about efficiency/effectiveness of education delivery models Pricing issues Integrity issues 24

25. 1.Stay with 2020 goals – what does it take 2.Back off 2020 goals What must be changed to move forward o Organizationally/structurally? o Can we/will we 3.Be content with where we are 4.Give up revert to where we were “21 st Century University Initiative” 25

26. “21 st Century University” the last 18 months BOT Discussion at 2012 Summer Retreat State of the University Sept. 2012 – Charge to the Provost Launched campus-wide SWOT analysis Oct. 2012 Used findings from SWOT to form 4 committees, each headed by a Dean: Technology, Engagement and International Academic and Research Priorities Financial Health Culture of Excellence 26

27. 27 “21 st Century University” the last 18 months Numerous campus led discussions October 2012 – May 2013 Committees developed initial recommendations endorsed by Board of Trustees - 2013 Summer Retreat Committees reconvened to refine recommendations – September 2013 to present Student committee formed - September 2013 Preliminary progress report to Board of Trustees – February 2014

28. Action Steps We have identified five multidisciplinary and collaborative areas of excellence in teaching, scholarship and research and community engagement: –Human expression, creativity and communication –Health and wellness –Applications of technology to contemporary issues –Understanding human and natural systems –Understanding economic systems and development 28

29. Every department and school will examine its academic and scholarly, research, and creative strengths in view of five multidisciplinary areas of excellence Action Steps 29

30. We will develop a new general education program Action Steps 30

31. We will selectively grow the population of our programs but will evaluate market opportunities for meeting the needs of specific segments of the population: Action Steps 31

32. –We will expand offerings for adult learners in specific programs –We will create a Center for Global Engagement to lead our international learning/research opportunities for our faculty and students and to enhance our attractiveness to international students –We will grow professional programs as dictated by workforce and population needs and selectively grow graduate programs Specifically 32

33. Supporting the Work of the University –We will implement a budget system tied directly to the mission and performance of all activities at the university –We will immediately search for a CFO to help us implement a financial management system that creates unit accountability with central financial controls and recognizes the specific program needs of each unit Action Steps 33

34. –We will create a Technology Innovation Center to support faculty, staff and students –We will integrate our business enterprise systems with our technology systems Action Steps 34

35. Developing a Culture of Excellence –We must continue our campus dialogue that allows us to develop a campus culture committed to our values of excellence, diversity, and respect of all individuals, and supports creativity, innovation, and trust. –We must develop compensation policies that reward excellent work congruent with market pressures. Action Steps 35

36. So… The 21 st Century University initiative should help us take the next steps so we can continue on our trajectory 36

37. Questions? 37