RESOLUTION TO BOARD OF DIRECTORS OF THE UNIVERSITY OF LOUISVILLE FOUNDATION, INC SUPPORTING PRESIDENT JAMES R. RAMSEY Board of Directors ~ March 7, 2016 RECOMMENDATION: ‘The Chairman recommends that the Board of Directors approve the attached resolution supporting President James R. Ramsey. BOARD ACTION: Passed Did Not Pass Other. ‘Assistant SecretaryMOTION FOR CONSIDERATION BY THE UNIVERSITY OF LOUISVILLE FOUNDATION BOARD OF DIRECTORS: March 7, 2016 WHEREAS, this Board of Directors of the University of Louisville Foundation has utmost. confidence in the leadership of James Ramsey, who serves concurrently as President of University of Louisville Foundation and the University of Louisville, and WHEREAS, this Boatd of Directors recognizes the significant and measurable progress, during President Ramsey's leadership, that is transforming the University of Louisville into a "premier, nationally-recognized metropolitan research university by 2020," as mandated by the Kentucky Post-Secondary Education Improvement Act of 1997, and WHEREAS, this Board of Directors acknowledges President Ramsey has succeeded in creating an efficient and effective model of university governance that has allowed the University of Louisville to withstand fifteen (15) budget reductions in its state appropriation since 2002, and WHEREAS, this Board of Directors praises Dr. Ramsey for the positive academic trajectory of the University of Louisville since his appointment in 2002 while enduring record economic and financial downturns presented by circumstances far outside local control, and WHEREAS, this Board of Directors acknowledges and applauds the significant impact on local and statewide economic development that has occurred during Jim Ramsey's presidencies of the University of Louisville Foundation and the University of Louisville, ‘THEREFORE BE IT RESOLVED THAT this Board of Direotors restates its strong support for the basic tenet of accessible collegiate education for al citizens of the Commonwealth of Kentucky and encourages President Ramsey to continue to use the Foundation as a key partner in preserving access to higher education, especially for minority and economically-disadvantaged citizens, and BE IT ALSO RESOLVED THAT this Board of Directors recognizes the decade of accomplishments over the past thirteen (13) years that is directly attributable to James Ramsey's leadership as president of the University of Louisville Foundation and the University of Louisville, and strongly endorses the continuation of his tenure in both presidencies until 2020 to insure the citizens’ mandate can be achieved. BACKGROUND: ‘The present model of governance of the University of Louisville and University of Louisville Foundation has served the mission of the University well, even as the two entities are discrete by function, It should be noted James Ramsey was appointed on November 14, 2002, as President of the University of Louisville, and was independently appointed as President of the University ofLouisville Foundation on January 16, 2003. While leading these institutions, the ensuing results during Dr, Ramsey's tenure have been unquestionably positive: In 2002, the average freshman ACT score was 23.2; today it is 25.5 (state average is 20.0) In 2002, the six-year graduation rate was 33%; today itis 53.6% In 2002, the number of Bachelor’s Degrees awarded was 1,849; today it is 2,832 1n 2002, the number of Ph.D."s awarded was 90; today itis 172 In 2002, the Foundation’s assets were $597,361,000; today it is $1,046,779,000 © In 2002, the Foundation provided $35,0M to the University; today it provides $154,7M_ ‘Also of note: Uofl. has outpaced the state in producing alurnni who remain and work in Kentucky (Wofl. ~ 83%; all 4-year public institutions - 76.1%) Itis clear the academic trajectory of the University under President Ramsey is positive, and the two boards should strive to keep this efficient and effective model in place to insure the academic improvement and expanded educational access continues. One of the key reasons the University operates at such an incredible academie pace is the current President has embarked on a strategic plan to achieve financial protection for the students, faculty, and staff of the University. What once was the University's top (and most politically sensitive) revenue source — its appropriation from the Commonwealth of Kentucky ~ is now its fifth largest source of funds, Because the President, in his role at the Foundation, has charted a creative and innovative path to achieve more reliable and consistent sources of revenue, the University has sustained its progress during fifteen budget cuts (and two more are projected during the next biennium), As the current University President publicly stated in January 2008, his forecast that the Commonwealth would face serious fiscal challenges during his tenure and would threaten University funding proved to be true, Global and national economic incidents negatively impacted institutions of higher education worldwide, ‘These challenges continue today in the form of demands on public money for public teacher and state employee pensions, Medicaid, corrections, debt service, and other critical needs. Indeed, policymakers in Frankfort this month are currently negotiating large cuts to higher education appropriation during the current fiscal year and upcoming biennium that will have detrimental effect on the delivery of collegiate education. Because of President Ramsey’s ability to foresee such an economic threat, the current model of leadership and growth of the Foundation has served to preserve the University’s ability to continue its upward academic mobility. This means the best and brightest students, faculty, and staff are ‘more insulated ftom the hard decisions made by the state’s policymakers regarding financial circumstances beyond our control. Further, the current model protects an important aspect of the University’s mission — to extend educational access to all parts of Louisville and Kentucky. This board embraces that model of govemance, which assures community access to higher education, and rejects restricting higher education to the privileged (an unintended result of separating the presidencies of the Universityand the Foundation, would increase administrative costs for divided operations and thus increase tuition). Another issue to consider are the efficiencies the current President has achieved by serving as the head of the University and the Foundation, The Foundation operates at an overhead rate of just approximately 2%, well below other non-profit foundations. This allows more donor money to be spent on intended academic purposes, as well as fiscally prudent economic development. This board applauds and supports the efficiency and efficacy of this implementation. ‘Supporting the current model of governance, under the leadership of President Ramsey during these fiscally challenging times, will continue an era of high achievement for the University and its Foundation. This board is proud of what has been accomplished, and rejects any public statements that attempt to degrade the leadership of President Ramsey or the academic performance of the University of Louisville as exhibited by the facts. ‘This board is well pleased with President Ramsey's leadership and encourages all people in positions of authority or oversight at the University and Foundation to take note of the positive results that have come to both institutions under the leadership of President James Ramsey. BOARD ACTION: Passed Did Not Pass. Other. Assistant Secretary