| In conclusion, learning and leading 
              have been more than mere words to our University 
              over the past year; they have been signposts for the new directions 
              we are taking and symbols of what makes us unique as the largest 
              public university in the nations fourth-largest city. All 
              of our major accomplishments this past year could be said to influence 
              how these words have been defined.  However, no other major accomplishment of 2001 will 
              affect how we learn and lead in the future at the University of 
              Houston more than the Texas Excellence Fund. Passed by the 77th 
              Texas Legislature, the fund will provide UH with an average of a 
              little more than $6 million each year over the current biennium. 
             These funds will not automatically thrust us into 
              the ranks of the nations Tier I research and teaching universities, 
              but they will help us bring together the elements needed to achieve 
              this goal. Among these elements are more world-class faculty, students, and support staff, 
              and better-equipped classrooms and research facilities. Over this 
              next year, we will see an additional seventy-six to eighty new and 
              replacement faculty positions filled with both top researchers established 
              in their fields and outstanding young faculty members beginning 
              their careers.
 But reaching the goal of becoming a Tier I research 
              and teaching institution involves more than just funding. It also 
              involves developing an identity and fulfilling our own role in the 
              ranks of major urban universities. As we continue to set high standards 
              for learning and leading, we will refine our identity and further 
              our reputation as an exceptional environment for higher learning 
              and a recognized leader in the exploration of the frontiers of new 
              knowledge.   Arthur K. Smith, President
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