LOUISVILLE.EDU Dr. James R. Ramsey, President, University of Louisville The American College & University ELFH 678 April 3, 2014 1
Feb 24, 2016
L O U I S V I L L E . E D U
Dr. James R. Ramsey, President, University of Louisville
The American College & UniversityELFH 678April 3, 2014
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Thank You
Let’s start with some history of higher education in Kentucky
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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
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A Brief History of the University of Louisville
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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
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• 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
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1,745.0
1,765.0
1,785.0
1,805.0
1,825.0
1,845.0
1,865.0
1,885.0
1,814.4
1,870.6
1,750.6
1,828.4 (P)
But Kentucky’s twelve years have been a challenge
February, 2014
(P) Preliminary http://www.bls.gov/eag/eag.ky.htm 7
200.0
220.0
240.0
260.0
280.0
300.0
320.0
226.7 (P)
And of Course – The Reality of Being a Manufacturing StateOur Best Paying Jobs
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February, 2014
http://www.bls.gov/eag/eag.ky.htm(P) Preliminary
So What’s All This Mean to Us - UofL?The Kentucky “General Fund”
Kentucky State General Fund
$9.3B 100%
Individual Income Tax $3.7B 40%State Sales Tax $3.1B 32%Combined $6.7B 72%
Income Tax/Sales Tax highly correlated with economic activity —i.e. Employment! People working!
State Funded?OR
State assisted?FY 13
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State Revenue Growth
Public Pensions Medicaid Debt Service Corrections/Adult Prisons
K-12 Base Higher Ed-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
10.0%
63.5%
41.9%
32.8%
15.3%
-1.0% -14.0%
And so…The State Budget Has Been A Challenge (2008-2014) Slow Revenue Growth/Structural Imbalance
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In Fact
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2002 – 2005 5 State Budget Cuts
2007 – 2015 9 State Budget Cuts
Strategy one –“Pick low hanging fruit.”$114.8M in cost efficienciesNOTE: Not always easy
How have we (UofL) moved forward in a tough fiscal environment
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Strategy two –Taking “underperforming assets and making them perform.”
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NOTE: Some outcry
Strategy three –Increasing value from our research/IP
Dr. Suzanne Ildstad14
Strategy four –Use private sector to do what we are not good at
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Strategy five –Generate clinical income to support teaching/academics
• Joint Operating Agreement with UofL Hospital• UofL Physicians
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NOTE: A challenge
$5.5 M
Strategy six –Being creative and clever, what no other universities do
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And biggest yetBelknap Research Park
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$600 M$750 M
$983 M $1B
Strategy seven –Our friends/alums/donors – increase philanthropic support
“Hot shot” consultant
2010Our BOT
Today April 10, 2014
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Importance of “Seven Strategies”
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Fiscal Year 2001-02 Fiscal Year 2013-14
Our Trajectory – Pretty “Damn” Amazing
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And the fiscal challenges continue …
FY152.6%
FY162.6%
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Governor Proposed
-2.5% -0-
As we speak
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House/Senate free conference committee
-1.5% cut
but
New classroom building
But in addition to fiscal challenges, we face
• Market challenges
• Questions about efficiency/effectiveness
of education delivery models
• Pricing issues
• Integrity issues
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1. Stay with 2020 goals – what does it take2. Back off 2020 goals
• What must be changed to move forwardo Organizationally/structurally?o Can we/will we
3. Be content with where we are4. Give up revert to where we were
“21st Century University Initiative”
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“21st 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
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“21st 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
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
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Every department and school will examine its academic and scholarly, research, and creative strengths in view of five multidisciplinary areas of excellence
Action Steps
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• We will develop a new general education program
Action Steps
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• 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
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– 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
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• 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
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– 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
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• 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
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So…
The 21st Century University initiative
should help us take the next steps so
we can continue on our trajectory
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Questions?
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