Transcript President’s Update – Board of Overseers

Louisville Cardinal
Editorial Staff
October 30, 2009
Thank you for
this opportunity!
2
Goals
 Dialogue – ongoing
 Some history
 Where we want to go
 Listen to you
3
Economists like pictures and graphs
Some dots and a triangle…
4
Last year has had its challenges…
• Wind
• Ice
• Flood
• Neurosurgery
• Personnel Issues
And of course, the worst economy
since the Great Depression.
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)
0
-1
-2
-3
-4
-5
-6
1948
1953
1957
1960
1970
1973
1980
1981
1990
2001
2008
1st Qtr
2009
2nd Qtr
2009
-1.8
-2.7
-3.7
-1.5
-1.1
-3.1
-2.2
-3.8
-1.4
-0.2
-4.8
-5.7
-1
6
U. S. Job Loss
Are we out of the woods yet?
0
-100
-200
-300
-400
-500
-600
-700
-800
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…and Kentucky has not been immune
to those impacts
Nonfarm employment in thousands
Dec. 2007
1,871.9
Sep. 2009
1,758.6 (p)
Employment 2009 = employment 1999
p: preliminary
8
Kentucky Economy:
Manufacturing – Our Bread and Butter
Manufacturing employment (in thousands)
Sep. 2009
208.9 (p)
p: preliminary
9
We (Kentucky) face challenges
• Big challenges
• Structural challenges
• We will struggle for a while – next biennium
budget will be ugly
10
What’s all this have to do with UofL?
We are expected to help improve
economic opportunity and quality
of life for Kentuckians (HB1 – 1997)
Law has not changed.
11
“U of L to be Premier Nationally Recognized
Metropolitan Research University”
“Challenge for Excellence”
(1998 – 2008)
“We met Challenge”
2020 Plan
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The weak economy has an
impact on us too…
Kentucky Employment Losses
State Individual Income Tax/Sales Tax
Cuts/Cuts/Cuts
9 for 9
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Some numbers…
(Depressing, aren’t they)
Year
e – estimate
a – actual
r - revised
State General Fund
(000,000)
FY 08
$8,664.0 (a)
FY09
$9,005.7 (e-budget '08)
$8,548.4 (r-Nov. '08)
$8,426.0 (a)
FY10
$9,417.6 (e-budget)
$8,412.3 (r-May ‘09)
$8,214.0 (r-Aug. ‘09)
$8,133.0 (r-Oct. ’09)
FY11
$8,315
FY12
$8,623
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And…
Despite cuts and
other distractions,
we are making
progress…
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Our Students…
• 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
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Why we are getting
the best students…
1. Commitment to quality
2. Small campus experience
– Freshman English classes are limited to 22 students
– 19:1 student/faculty ratio
– Active student advising
3. 250 student organizations and growing
4. Our Covenant
5. Affordability
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Our Graduates…
• 1998 – 1,734 degrees awarded
• 2009 – 2,475 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
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Our Research…
Research Funding and NIH Funding
Total grants:
1998 - $42 M
2009 - $140 M
2020 Goal - $400 M
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“From mind to marketplace”
Startup companies (cumulative)
1998
2008
2020 Goal
1
22
34
151
710
1,064
17
73
110
Patents (cumulative)
Applications filed
License option agreements
(cumulative)
Note: By 2008, 130 patents were issued, a 136% increase since 1998.
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We have far, far more to do
despite the challenges!
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How do we do this with cuts?
1.
2.
3.
4.
5.
6.
7.
Reengineer operations
Convert underperforming assets to fully
performing assets
Increase fundraising
Expand clinical activities
Develop partnerships
Improve contract research/commercializing
Being creative (e.g. TIF)
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How do we do this with cuts?
1. Reengineer operations
3. Increase fundraising…
2. Under performing assets…
4. Expand clinical activities
23
How do we do this with cuts?
5. Develop partnerships…
6. Improve contract
research/commercialization…
7. Being creative (e.g.. TIF)
24
Some other thoughts…
• Biggest dividends
• Minimized unit cuts
• Continue to leave “carry forward with
Deans/VPs
but
• We know…salaries/operating/etc.”
25
So let’s wrap up…
1. We have been challenged, significantly
challenged
2. But we have progress, significant progress
3. It isn’t going to get any easier – challenges are
not going away
4. But we will stay focused and do the best we can
WHY?
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Per Capita Income in All 50 States v. Adults with
Bachelors Degrees or Higher - Data for 2007
$55,000
$50,000
2007
$45,000
$40,000
$35,000
$30,000
$25,000
15%
20%
25%
30%
35%
40% 27
The 2020 Plan
What we will try to do
28
2020 Strategic Plan Creation
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