May 19, 2010

Memorandum

To: The UAH Community

From: Malcolm Portera

As I reported to the Board of Trustees in our April meeting at UAH, our System faces
harsh realities that result from unparalleled challenges to the economy. This comes at a
time when we are also working to shape and create our future, pursuing new and
exciting opportunities that offer great promise.

State appropriations have declined precipitously for us, down more than $160 million
for our three campuses in 18 months or so. In terms of the overall budget, we now
receive only 14 percent of our revenues from the Alabama Education Trust Fund.
Dealing with this situation has required many difficult decisions on our campuses.

In addition to raising tuition and fees, there has been significant reorganization. For
example, UAB successfully merged three schools to create a College of Arts and
Sciences. The merger occurred this calendar year. In this day and time, merger is no
longer a radical measure.

The leadership at UAH has developed a strategic plan to raise standards, grow the size
and scope of the research program, and target areas of strength. Additionally, a
commitment has been made here in Huntsville to enhance on-campus life through an
investment in residence halls, food service, and student recreation. UA and UAB have
made parallel investments.

As a result of these economic realities and the commitment to continue to improve

quality, it is clear that we have work to do. I have spoken at some length with faculty
department chairs, and President Williams has informed me that he has arranged a
meeting with that group for additional discussions.

Our commitment is to those things that will allow UAH to be the best that it can be. My
hope is that together we can work for the betterment of UAH and our University
System. In my view this is our best opportunity for future success.