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

48 53 57 60 70 73 80 81 90 01 08-5

-4

-3

-2

-1

0

GDP Declines During Postwar Recessions(peak-to-trough percent change; date is year of peak

quarter)

Jan. 2

008

Feb. 2

008

Mar. 2008

Apr. 2008

May. 2

008

Jun. 2008

Jul. 2008

Aug. 2008

Sept. 2

008

Oct. 2008

Nov. 2008

Dec. 2008

Jan. 2

009

Feb. 2

009

Mar. 2009

Apr. 2009

-800

-700

-600

-500

-400

-300

-200

-100

0

US Monthly Job Loss

5

And Kentucky has not been immune to those impacts

(Nonfarm employment in thousands)

Oct. 2000 1,833.6

Apr 2009 1,788.4 (p.)

Jun. 20071,870.8

p: preliminaryUpdate as of Friday 5/22/09

Jun. 2003 1,777.6

Note: Kentucky employment today is the same as a decade ago

6

Loss of Manufacturing Jobsin KY Continues to be a Major Concern

p: preliminary

212.7 (p)Apr. 2009

308.3Jan. 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. Reengineer2. Underperforming strategies3. Fundraising4. Clinical Income

• PPP• University of Louisville Hospital

5. Partnerships6. Contract research/commercializing7. 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%

$93,00

0,00

0

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 9th – 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 2009 - $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

Since we last metStimulus FY10/FY11

Competitively Determined

NIH DOE NSF Other

State 3b

1bMedicaid

1b Education

Designated $350 mm

K-12 Higher Ed

$550 mm

1b Other

Thank you for your leadership!