Talk of U of L joining the public university system of Kentucky began in the 1960s. As a municipally funded school (meaning funding only came from the city of Louisville), the movement of people to the suburbs of Louisville created budget shortfalls for the school and forced tuition prices to levels unaffordable for most students. At the same time, the school's well established medicine and law schools were seen as assets for the state system. Still, there was opposition to U of L becoming public, both from faculty and alumni who feared losing the small, close-knit feel of the campus, and from universities already in the state system who feared funding cuts. After several years of heated debate, the university joined the state system in 1970, a move largely orchestrated by then Kentucky governor and U of L alumnus Louie Nunn.
The first years in the public system were difficult, as enrollment skyrocketed while funding was often insufficient. Several programs were threatened with losing accreditation due to a lack of funding, although schools of nursing (1979) and urban & public affairs (1983) were added.
Stevenson Hall on the Belknap Campus
John W. Shumaker was named U of L's president in 1995. Shumaker was a very successful fund raiser, and quickly increased the school's endowment from $183 to $550 million. He also developed the REACH program[18] to encourage retention. In 1997, he hired athletics director Tom Jurich, who restored the athletics program and raised over $100 million to raze abandoned factories and old parking lots next to campus and replace them with on-campus athletic facilities, which vastly improved the aesthetics of the Belknap Campus. Academically, U of L moved closer to parity with the state's flagship University of Kentucky as retention rates and research funding increased, and average GPAs and ACT scores were much higher for incoming freshman.
The school's current and 27th president is James R. Ramsey, the former state budget director. Ramsey has continued the endowment and fund raising growth started by Shumaker, but added more emphasis on improving the physical aspects of the Belknap Campus. To this end, he started a million dollar "campus beautification project" which painted six overpasses on the Belknap Campus with a 'U of L theme' and planted over 500 trees along campus streets, and doubled the number of on-campus housing units. The school's federal research funding has also doubled under Ramsey, and three buildings have been built for nanotechnology and medical research. UofL's retention rates have also increased from 30 percent in 1999 to 40 percent in 2006.
In 2008, the University of Louisville revealed it was cooperating with a federal inquiry into possible misuse of a $694,000 federal education grant Robert Felner managed while Dean of the university's College of Education and Human Development
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