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Kentucky Chamber Blog
Wednesday, August 25, 2010
Kentucky makes valiant effort, but trips at the finish line
Posted by kycc1 on 8/25/2010 3:59:00 PM
On Tuesday, Arne Duncan, U.S. Education Secretary, announced the winners of round two of the Race to the Top funding for states. Once again, Kentucky didn’t make the list. Dave Adkisson, Chamber president and CEO, said that this is an “utter disappointment.”
“Kentucky education officials presented a strong application,” said Adkisson, “but it was lacking in one important area that would have boosted the state’s score and improved its chances of winning $175 million in federal education funding: charter schools.”
Education Commissioner Terry Holliday presented a charter school proposal during the 2010 legislative session, a move supported by the Kentucky Chamber as a way to secure funding to support teacher professional development and other important areas, but interest groups could not agree on an approach. Without the additional funding Race to the Top would have brought to Kentucky, our teachers have lost desperately needed training money to help Kentucky students achieve the higher standards now required in the state.
“It is disappointing for Kentucky’s business community that consensus could not be reached on charter schools and that the state missed out on federal funds as a result,” said Adkisson. Despite multiple attempts by the Senate, a bi-partisan group of House legislators and Holliday to move the issue forward, interest groups successfully blocked its passage to the detriment of Kentucky students. The Kentucky Chamber will continue to press the case that charter schools, in situations where certain schools consistently underperform, should be one of the tools by which Kentucky schools can improve.
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Monday, August 16, 2010
Kentucky Chamber launches video update
Posted by kycc1 on 8/16/2010 4:04:00 PM
In an effort to keep Kentucky’s business community better informed about pressing issues, the Kentucky Chamber is now posting video updates to its YouTube Channel.
The first video update is now live, and can be viewed both on YouTube and on the Chamber’s homepage. In today’s video, Kentucky Chamber President and CEO Dave Adkisson discusses Kentucky's improved ranking on the 2010 State Business Tax Climate Index.
Video updates will be posted bi-weekly. Subscribe to the Chamber’s YouTube Channel or follow us on Twitter to find out when the latest videos have been uploaded.
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Thursday, July 22, 2010
Education and workforce council holds first meeting
Posted by kycc1 on 7/22/2010 9:28:00 AM
The Chamber’s education and workforce council, chaired by Mike Owsley of English, Lucas, Priest & Owsley, LLP in Bowling Green, held its first meeting of the summer this week to begin the policy formation process for the business’s community’s 2011 legislative agenda.
The council, made up of nearly 35 of the Chamber’s most education-minded members, heard from representatives of the state’s leading education organizations and government departments. These included the Kentucky School Boards Association, Kentucky Association of School Superintendents, Prichard Committee for Academic Excellence, Department of Education, Council on Postsecondary Education, Education and Workforce Development Cabinet and Kentucky Adult Education.
Each representative shared their organization’s policy priorities with the council and fielded questions from the members. The council will continue to work throughout the summer to review education issues facing the state and refine the Chamber’s legislative priorities.
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Monday, July 12, 2010
Kentucky moving ahead, but gains slow in some areas
Posted by kycc1 on 7/12/2010 12:50:00 PM
Kentucky is making progress in education, competitiveness and other areas, but the gains are slow in some cases, emphasizing the need for more focused attention. That is the conclusion of two updates developed by the Kentucky Chamber of Commerce and released July 12 during the Chamber’s annual economic summit in Louisville.
The updates grew out of initiatives the Chamber has developed over the past several years: the New Agenda for Kentucky and the Task Force on Postsecondary Education. The New Agenda initiative encouraged Kentuckians to share their ideas about ways to improve their state while the postsecondary task force reviewed the progress that has been made since Kentucky changed its higher education system in 1997.
The New Agenda, released in January 2008, focused on five transformational goals that have now become the foundation of the Kentucky Chamber’s strategic plan:
1) improving the education attainment of Kentuckians;
2) modernizing government;
3) promoting wellness and healthy Kentuckians;
4) preparing Kentucky to successfully compete in the global marketplace; and
5) expanding Kentucky’s role as an energy leader.
The 2010 update concluded that the state has made progress in several areas despite the tough economy:
• Kentucky is moving ahead in education as a result of new standards that the state has adopted to better prepare students for college and work; legislation to make it easier for community college students to transfer to four-year public universities; improving student scores on national tests and other developments. Although the high school graduation rate has slipped, the dropout rate has improved.
• Government modernization is another area showing progress. The legislature enacted a 2010-12 budget that included significant savings in corrections, Medicaid and public employee health benefits. And Kentucky has been recognized as a national leader in making budget, salary and contract information available to the public online. On the negative side, a recent national report cited “serious concerns” about Kentucky’s public pension system.
• The update described Kentucky’s status in wellness as “standing still,” in view of the state’s continued low rankings on national indicators and the failure of wellness initiatives in the 2010 General Assembly. More positive was the legislature’s decision to include funding in the 2010-12 budget for a smoking cessation program for Medicaid recipients.
• Kentucky’s global competitiveness has improved. The state’s business tax climate ranking moved from 34th to 20th in a Tax Foundation report, the result of the legislature’s refusal to raise taxes during the economic downturn. Also cited was the consensus solution crafted by business and labor leaders to restore the balance in the state’s unemployment insurance trust fund – saving Kentucky and its employers an estimated $700 million over the next decade.
• Finally, the New Agenda update concluded that Kentucky was moving forward in energy. Key points there included Kentucky’s continued leadership in coal production and low electricity prices, federal support for university research on cheaper ways to remove carbon dioxide from power plant releases and plans for the nation’s second-largest algae factory.
The postsecondary education update included a review of several indicators that the task force considered in its report, released in late 2008. Key points of the progress report included:
• In the past eight years, Kentucky’s rate of increase in the percentage of people age 25-34 with bachelor’s degrees has exceeded the national rate.
• Enrollment in postsecondary institutions continues to increase steadily – up by 6 percent in 2009 over 2008. The Kentucky Community and Technical College System has shown the greatest growth.
• A record number of degrees and credentials were awarded by postsecondary institutions in 2010 – 57,247 at public and private schools.
• The progress has not affected Kentucky’s per capita income relative to the national average. It remains at about 80 percent – where it has been for the past 30 years.
• Transfers from two- to four-year institutions are increasing, but very slowly. The legislation enacted this year to ease the process is expected to accelerate the pace of transfers.
• Tuition continues to go up, but at a slower pace than in the previous decade as a result of the Council on Postsecondary Education establishing ceilings for tuition and fees at the state’s public institutions.
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Friday, May 28, 2010
State budget and unemployment insurance reforms pass
Posted by Bryan Sunderland on 5/28/2010 10:32:00 PM
The extraordinary session of the General Assembly continues into the night as legislators continue to try to hash out the road plan and Transportation Cabinet budget. They are expected to work late into the night and will return on Saturday in an effort to pass a road plan. Two important measures passed earlier tonight – a two-year $17.1 billion spending plan and the Chamber-supported unemployment insurance reforms – but two measures designed to help Kentucky’s signature bourbon industry unfortunately failed.
Legislators passed HB 1, a two-year budget which includes many cost reductions pushed by the Kentucky Chamber. After leaving Frankfort without a budget during the regular session, lawmakers returned and reached agreement on a plan that includes no new taxes on businesses or individuals and protects education as much as possible. During these difficult economic times for employers and families, this state budget recognizes the need to reduce expenditures and limit the state debt. The budget reduces long-term costs in the public employee health plan, includes study language to find additional cost reductions in Medicaid and corrections costs, provides for smoking cessation funding for Medicaid and reduces personnel and contract costs. It also includes provisions to permit the executive branch to implement furloughs of state workers, giving the governor another tool to manage the costs of government.
As a companion bill to the budget, the legislature also passed HB 2, a revenue measure which included a number of employer tax credits. These measures, supported by the Kentucky Chamber, included a new markets tax credit, an acceleration of the small business tax credit and a measure to help Toyota take advantage of the previously agreed-upon environmental credit to build the Camry Hybrid at the Georgetown plant.
Also passed was HB 5, the Chamber-supported unemployment insurance reform, which creates a new financial structure that will save employers an estimated $700 million over a decade. By increasing state contributions, employers will save a great deal of federal taxes and interest on the more than $800 million borrowed from the federal government. It makes modest reductions in the wage replacement rate to add long-term costs savings to the program. Kentucky’s current system has been out-of-balance for nearly a decade, paying out more in benefits than it had taken in. This plan is a huge step toward returning the system to solvency and allowing the reduction of employer tax rates.
Unfortunately, agreement was not reached on two measures to help Kentucky’s signature bourbon industry. A tax credit designed to take effect after this budget cycle and an important marketing tool to allow sampling of their products were passed by the Senate. The sampling bill failed in the House by a vote of 43-51. The House refused to concur by voice vote with the Senate amendment creating the tax credit.
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Friday, May 28, 2010
Mid-day session update
Posted by Bryan Sunderland on 5/28/2010 1:27:00 PM
What looked to be a promising start to what many anticipated would be the last day of special session, hit a speed bump this morning when House leaders indicated there was trouble with the Senate changes to legislation. There were questions surrounding amendments to the budget regarding the inclusion of a funding mechanism to rebuild Category 5 schools, some of the state’s most dilapidated schools. The Senate budget committee clarified this language with an amendment earlier today. Senate Leaders still believe an agreement can be reached today.
The Senate version of the budget added $5.9 million to address the Category 5 schools. It also provided some certainty to the $94 million in health care savings by restoring the original language from the regular session budget detailing how these savings will occur. The latest House version counted the savings, but did not specify how these savings would occur. The Chamber supports the efforts to save this money and is hopeful the Senate changes adding certainty to the cost-savings will survive the House-Senate budget negotiations.
The Senate also offered a number of positive business credits in HB 2, the revenue bill. Chamber-supported measures like the New Markets tax credit, the ad valorem tax credit for distilleries, the acceleration of the small business tax credit and a clarifying amendment to a previous tax credit for Toyota to build the hybrid Camry were included. These changes will need to be ironed out before the session ends. We will keep you posted as news develops.
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Wednesday, May 26, 2010
State budget clears first hurdle
Posted by Bryan Sunderland on 5/26/2010 1:42:00 PM
Today the House passed House Bill 1, a two-year, $17.1 billion budget to fund the operations of state government. This budget does not rely on increased business taxes or the higher debt levels of prior House versions. It protects education from cuts as much as possible and does not reduce our educational commitment by reducing the days of classroom instruction. It contains several cost-saving measures advocated by the Kentucky Chamber to reign in state spending in areas that had grown unsustainable over the past several years. The budget passed by the House is very close to previous Senate versions and the governor’s proposed compromise that adopted much of the Senate plan. Highlights of HB 1 include:
· The (SEEK) education formula is slightly higher in HB 1 than previous
Senate versions.
· The budget retains 177 instructional days for students, with flexibility for
districts to pay for one day.
· Cost savings included for public employee health care, but details left
to Personnel Cabinet. Allows for collection of premiums from employees.
· Studies will be performed to help the state address Medicaid and
Corrections costs. These items were specifically identified by
the Chamber’s Leaky Bucket Campaign.
· The budget gives the governor the ability to implement limited employee
furloughs.
· It includes a study of the classification of schools.
· Would reduce non-merit (politically appointed) employees by $10 million
per year and would reduce government contracts by $165 million
over the biennium.
The budget now goes to the Senate, where some changes are likely. The Senate is expected to pass their budget by Friday. Any differences between the two bills will need to be ironed out before it goes to the governor for his signature.
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Wednesday, May 26, 2010
Bourbon sampling bill fails in House, passes in Senate
Posted by Allyson Hamilton-McIntire on 5/26/2010 1:39:00 PM
UPDATE: May 27, 2010
On Thursday the House gave SB5, a bill to allow distillers and wineries to provide samples of their products at locations other than their premises, its second reading, leaving the door open for continued action on the measure. In the Senate Appropriations and Revenue Committee, an amendment to provide an ad valorum tax credit for the state's signature bourbon industry was added to the revenue measure, HB2. Please contact your representative and let them know you support both of these important measures. Find your representative here. Call your representative directly at 502-564-8100 or leave a message for them toll-free at 1-800-372-7181.
May 26, 2010
A Chamber-supported bill to allow distillers to provide samples of their products at locations other than their premises passed the House Licensing and Occupations Committee on Tuesday, but failed to pass the full House on Wednesday. HB 6, co-sponsored by Reps. Linda Belcher and Susan Westrom, passed the committee after the approval of a committee amendment that would include wineries and sunset the provisions of the bill in October 31, 2010. This committee amendment was not called before the full House. Down the hall, the Senate Licensing and Occupations Committee and the full Senate approved SB5, sponsored by Sen. Ernie Harris, which would also allow distillers and wineries to provide samples of their products at locations other than their premises. The House will now have a second chance to take up the issue. The Kentucky Chamber supports this measure and will continue to urge legislators to provide our signature industry with this important marketing tool.
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Wednesday, May 26, 2010
Unemployment insurance reform passes House
Posted by Bryan Sunderland on 5/26/2010 1:28:00 PM
The House voted 95-0 Wednesday to pass House Bill 5, Chamber-supported legislation to fix Kentucky’s broken unemployment insurance system. The measure now moves to the Senate, where it did not receive a vote in the regular session. Please contact your senator and encourage him or her to support HB 5. Click here to find out who is your Senator. Call your senator directly at 502-564-8100 or leave a message for them toll-free at 1-800-372-7181.
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Thursday, April 08, 2010
Three key steps forward still possible for General Assembly
Posted by on 4/8/2010 1:10:00 PM
The Kentucky General Assembly has an opportunity to move the state forward in three critical areas before final adjournment of the 2010 session next week by: • Passing a fiscally responsible budget • Addressing the state’s out-of-balance unemployment insurance program • Positioning Kentucky for success in the federal Race to the Top competition for education funding The Budget Without question, the executive budget is the most important piece of legislation that lawmakers consider during their sessions in even-numbered years. The failure thus far of the House and Senate to reach agreement on the 2010-2012 budget should not obscure the fact that the versions approved by the two chambers had several positive elements in common: restructuring the public employee health insurance program to reduce costs, smoking cessation coverage for Medicaid recipients, reductions in personal service contracts and political appointees, and cost-saving measures in Medicaid and corrections. Significant points of contention focus on how much additional debt the state should incur for construction projects and whether business taxes should be increased to provide additional revenue. The Kentucky Chamber has consistently encouraged the General Assembly to pass a fiscally responsible budget – one that protects education funding to the extent possible, reduces unsustainable expenditures, limits growth in the state debt level and spares Kentuckians from a greater tax burden. As the General Assembly works toward an agreement on the budget, legislators should not increase the tax burden on individuals or employers and should limit the use of debt to sustainable levels. Creating jobs by bonding construction projects is a laudable goal. But in our view, the better approach is to protect the jobs Kentucky employers are already providing – not to put those jobs at risk by increasing taxes on business. Unemployment Insurance A measure awaiting Senate action would save Kentucky employers hundreds of millions of dollars through a comprehensive reform of the state unemployment insurance system. Kentucky’s system was out of balance before the economic downturn hit. When it did, the state was forced to borrow heavily from the federal government to pay unemployment benefits. A task force of business, labor and government representatives worked for several months to reach consensus on a solution that shares the responsibility for addressing the growing deficit among all parties. Without the legislation, which won unanimous House approval, Kentucky’s employers will be subject to automatic federal tax increases far more onerous than the new financial structure that is part of the Kentucky-sponsored solution. Education Kentucky had a strong application for federal education funding under the Race to the Top program, making it onto the list of finalists. But the state came up short for the first round of funding for one primary reason: the absence of a state law allowing charter schools. Education Commissioner Terry Holliday has pointed out that, with the additional points a charter-school law would have provided, Kentucky would have moved up the list to No. 2 – high enough to bring $200 million to the state’s schools. We have another chance in the second round of the federal program, and the state Senate has moved to fill the gap in Kentucky’s application by approving legislation that would allow Kentucky school districts to create charter schools. The bill now awaiting House action would address several other education matters – including some Dr. Holliday has said would also help the state’s federal application. Its final passage and gubernatorial approval would significantly improve Kentucky’s prospects for success with federal education officials. Conflict, debate and disagreement are part of any legislative session. Love it or hate it, that’s the way the system works. As the 2010 General Assembly enters its final two days, we encourage Kentucky’s lawmakers to take advantage of the opportunity they have to ensure this one will be a truly successful session for the state and its citizens.
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