As I assess the accomplishments and challenges of the past year, one truth stands out: The University of Wisconsin–Madison has embraced the priorities of Wisconsin’s people, enriched their lives and earned its place among the nation’s best universities.

From time to time, we ask Wisconsin citizens about their expectations — and whether the university is meeting them. We’ve learned that you take great pride in the university, that you believe strongly that advancing research benefits the people of the state, that UW–Madison benefits the quality of health care in Wisconsin and that the university is a good value for the money.

You also told us that we provide an abundance of opportunities for continuing education and that our graduates leave the campus well-prepared to face the rigors of the working world.

In short, you believe that the university serves as a great resource for the citizens of the state.

This annual report includes stories about some of our many achievements during the past year. The stories demonstrate how the university promotes its research mission, continues its leadership in teaching, and shares its findings statewide and globally to improve our lives. Each story illustrates how the people on this campus embody Wisconsin’s values and mirror the priorities of people from Superior to Kenosha, and from Prairie du Chien to Marinette.

Our teachers and researchers embrace the Wisconsin spirit, take their work beyond the laboratory and classroom, and push the frontiers of discovery. I am proud of how Wisconsin citizens and those who work at UW–Madison are committed to these shared values.

Our greatest challenges as administrators lie in providing the mechanisms and resources that allow this important work to flourish. If we clear away the obstacles and find pathways to accomplishment, we know that the university community will continue to meet your expectations through creativity, resourcefulness and the spirit of discovery.

Doing so has seldom been more difficult. With state government facing daunting deficits, our resources have been stretched. We have been compelled to look beyond personal values to economic values.

As we struggled with some painful state budget deliberations during the past few years, we discovered that we could make some cost-cutting sacrifices while maintaining value. But it has been a difficult balance to strike, and we anticipate additional worrisome budget challenges during the next two-year budget cycle. Yet throughout these tough times, we have not compromised our guiding principles. We are committed to retaining our position of leadership in research and to providing a first-class education for students.

These days, we are all looking for value. Whether we’re browsing at the grocery store, writing checks for college tuition or paying our taxes, we want the best deal for ourselves, our families and our communities. But we also know that economic value involves more than cents-off coupons and quick fixes. It calls for wise, targeted investment that helps to build a strong future.

That sort of investment has been difficult as the state share of tax support for the university has dipped from 30 percent a decade ago to under 20 percent in the 2004–05 fiscal year. We continue to be resourceful in diversifying our funding base, collecting federal and private grants that allow us to rank second nationally in research expenditures. As further evidence of our shared values as a state and university, the UW Foundation’s $1.5 billion “Create the Future: The Wisconsin Campaign” drive is moving strongly ahead and engaging friends of the university in philanthropy that will help transform our great university into one that is extraordinary.

Although budget realities have forced a rise in tuition, the cost of resident undergraduate tuition at UW–Madison still ranks ninth among the 10 public Big Ten Conference universities.

When we asked, you told us of your confidence in the university’s value to families, students and the state’s economy. And others agreed. In fact, the Southern Growth Policies Board named UW–Madison one of the top 12 research universities in the nation for fostering state and regional economic development. More than 132,000 UW–Madison alumni are living in Wisconsin, paying taxes and contributing to their local economies.

Wisconsin has a mature, slow-growth economy. As a state, we are increasingly looking at high-growth strategies built on brainpower, research and technology. UW–Madison is advancing that combination, leading the way in the creation of jobs to support families and help communities to prosper. Brainpower is earning power, and earning power provides value. Those graduating with UW–Madison bachelor of science degrees earn almost $1 million more than a high school graduate during their careers, and those with doctorates or professional degrees earn twice that amount.

No matter what management challenges may lie ahead, UW–Madison’s future is bright with promise. Our aspirations are high and our sights are set on new breakthroughs. We have not — and will not — abandon our bedrock principles in the face of budgetary uncertainty. We are inspired by your confidence, by knowing that we in Wisconsin see this university and its mission with the same eyes and with the same proud spirit.

John D. Wiley
Chancellor

Our teachers and researchers embrace the Wisconsin spirit, take their work beyond the laboratory and classroom, and push the frontiers of discovery.

I am proud of how Wisconsin citizens and those who work at UW–Madison are committed to these shared values.