Weekend College 2009Dallas, Texas

August 1, 2009

Thank youMitch and David and Keith

We were warned…

Home of 2,396 alums,

97 students in 2008 and 3 incoming Freshmen this fall

“It was the best of times,It was the worst of times.”

- Charles Dickens

5

We know that nationally times have been unprecedented…

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

1948 1953 1957 1960 1970 1973 1980 1981 1990 2001 2008 1st Qtr 2009

Series1 -1.8 -2.7 -3.7 -1.5 -1.1 -3.1 -2.2 -3.8 -1.4 -0.2 -4.8 -5.7

-5.5

-4.5

-3.5

-2.5

-1.5

-0.5

6

And Kentucky has not been immune to those impacts

(Nonfarm employment in thousands)

p: preliminary

Jun. 20091,774.2 (p)

Dec. 20071,871.9

Oct. 20001,833.6

Jun. 20031,777.6

Manufacturing employment in thousands

p: preliminary

Jun. 2009 207.0 (p)

Jan. 1999308.3

Kentucky Economy:“The Biggest Problem We Face”

There are challenges

Kentucky 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

So while we all face challenges…

We will never lose sight of our mandates!

U of L to be Premier Nationally Recognized Metropolitan Research University

Our Mandates

1997 Post Secondary Education

Improvement Act

1996 Boyle Report

1998 – 2008“Challenge for Excellence”

“We met Challenge”

2020 Plan

1. Reengineer operations2. Convert underperforming assets to fully

performing assets3. Increase fundraising4. Enhance clinical income (460 physicians)

• PPP• University of Louisville Hospital

5. Develop partnerships6. Improve contract research/commercializing7. Being creative (e.g. TIF)

Our 7 Strategies to Achieve Mandates Given Fiscal Environment

And so…

• $105 million in cuts, savings and efforts to find money to move forward

• Big things• Refinanced debt• Self-funded health insurance

• Little things• Washing windows• Power-down vending machines

Dataseam – avoiding new costs

Note: Three cancer drugs in clinical trials

Enhanced food service

Our Partnerships

Student Housing – The Province Siemens Energy Audit

Ramping up Giving

$42,

434

,018

$36,

382,

594

$42,

382,

805 $6

4,47

6,59

6

$61,

511,

069

$51,

367,

489

$86,

571,

870

$95,

000,

000

Building Clinical Income

Outpatient Center

And we are making progress…

Our Students

• Freshman class average ACT• 2008 – 24.4• 1998 – 21.8• State avg. – 20.8• National avg. – 21.2

U of L Graduates

• 1998 – 1,734 degrees awarded• 2009 – 2,428 degrees awarded– Up 39% (694 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 1997 – 2009 - $140 M

Investing in quality at U of L

The Conn Center for Renewable Energy Research and Environmental Stewardship

Community/Economic Development

New arena and other construction projects

ShelbyHurst

Louisville Arena

Haymarket

We have been and will be challenged, but we are intensely focused!

4 keys to Kentucky’s future

• Education

• Education

• Education

• Education

We need your help!

Women’s Sports

Basketball – Big East Runner up Big East Tourney Runner Up NCAA #3 seed Final Four! National Runner Ups! #2 in nation

Track – D’Anna McCarty NCAA Champ!

Softball – Top 25

Golf – Top 15

Track – Big East Champions!

Men’s Sports

Basketball – Big East Champs Big East Tourney Champs NCAA overall #1 seed #1 in Nation Final Poll Elite Eight #5 in Nation

Golf – Top 25

Tennis – Top 25

Track – Big East runner up

And finally!How ‘bout those Cards!