By James G. LeMaster, President & CEO, Kentucky Association of Manufacturers

Good morning Madam Chair and members of the committee. My name is Jim LeMaster and I serve as President and Chief Executive Officer of the Kentucky Association of Manufacturers (“KAM”). In existence since 1911, KAM is Kentucky’s only trade association focused exclusively on the manufacturing sector.

Kentucky currently has several well-intended business incentive and financial programs. These programs, however, do not adequately address the statewide development, growth and preservation of the manufacturing industry in the Commonwealth through the retention of existing businesses and jobs. KAM is intent on supporting passage of legislation which fills this vacuum.

Before I address the specifics of this newly drafted legislation, let me provide some brief background information on KAM. After that, I’ll address why this legislation is vitally important to the manufacturing industry and Kentucky’s future prosperity.

The Kentucky Association of Manufacturers was founded in 1911, making us one of Kentucky’s oldest and most successful trade associations.

KAM is proud to be affiliated with the National Association of Manufacturers, which represents the interests of manufacturing across the United States. Kentucky is one of America’s most manufacturing-intensive states.

Virtually all of Kentucky’s most famous companies and brands involved in manufacturing belong to KAM….companies like Toyota, Ashland, GE, Ford, GM, and PPG. But we also represent many smaller manufacturers, many of whom you probably have never heard of…..names like Boneal, the I.B. Moore Company, Star Manufacturing, Wagstaff.

One of the challenges we face as an industry is that many of our media, leaders and citizens simply do not understand the economic impact we make on the state’s economy.
Taking a look at economic data, the Kentucky manufacturing industry is, by more than a two-to-one margin, the number one contributor to the state gross product, producing $27 billion in goods and accounting for 97 percent of Kentucky’s exports. The number two commercial industry, real estate, contributes only 9 percent of our state gross product. All other industries contribute less.
In addition, manufacturers in Kentucky employ roughly 260,000 well-paid workers with benefits. But the impact of manufacturing jobs extends far beyond the boundaries of the industry…..it is estimated that seven additional jobs in other industries depend on each manufacturing job.

In fact, imagine if our industry dramatically declined or didn’t exist. Think about how many homes would not be built….how school budgets would be affected….the small businesses that would close….donations to churches would decline….and our medical industry would suffer, not to mention retail, wholesale and other businesses.

How well are manufacturing workers paid? A just-released survey of more than 200 manufacturers around Kentucky shows that our employees make an average annual base salary of $45,094 in addition to having health care and other benefits. This is more than $15,000 higher than Kentucky’s per capita income of $29,000.

As this slide shows, the average manufacturing wage in Kentucky has steadily climbed since the year 2000, clearly showing why our industry is so critical to the economic future of Kentucky.
But as we have seen in the past few years, the industry is facing challenges. Kentucky is continually at risk of losing employers and workers due to an aging infrastructure, a reduction in the number of qualified workers, and substantial competition from foreign and domestic markets. Kentucky manufacturing jobs are especially under attack from low-wage nations such as China, India and Mexico.
And let me make a very important point about the difference between manufacturing and most other Kentucky businesses. When you look at most Kentucky businesses, their competitors are most often in the same town or region…and sometimes are only a block or two away. On the other hand, Kentucky manufacturers are competing in a global economy. Our competitors have lower wages, far fewer regulations, and in most cases much lower taxes and other costs.

We also need workers with high-tech knowledge. So we are in danger of losing Kentucky manufacturers who can’t lower costs fast enough or find enough qualified workers.

Last year we asked our members to name their most important priorities. This slide provides and overview of what those issues are, most of which involve cost-cutting and finding qualified workers.
That’s why we believe our vision for the industry is also a vision for Kentucky’s future prosperity. We want to make Kentucky one of the world’s most desired locations for manufacturing by the year 2012.
We believe one of the most important ways to achieve that vision is to provide new economic incentives for manufacturers that allow them to improve efficiency and productivity. This will allow them to compete and survive against low-wage nations.

And these new incentives should not just be tied to job creation.

So let’s think about having a paradigm shift in the way we think about economic incentives….
In addition to the existing programs that tie economic incentives to new job creation…

Let’s provide economic incentives to keep the jobs we have.

So let’s take a look at what this new legislation might look like.

As passed by the General Assembly in 2003, the Kentucky Reinvestment Act (“KRA”) created a tax credit program for existing companies engaged in motor vehicle body manufacturing, automobile manufacturing, light truck and utility vehicle manufacturing, and heavy duty truck manufacturing. The KRA, which is administered by the Cabinet for Economic Development, was well-known to be enacted for the primary purpose of creating an incentive program to keep the Jefferson County Ford plants in Kentucky.

As stated in KRS 154.34-020, the General Assembly determined that the general welfare and material well-being of the citizens of the Commonwealth depend in large measure upon the reinvestment and development of existing industry in the Commonwealth. To this, KAM can only say, “Amen.”
In enacting the KRA, the General Assembly determined that offering inducements for existing manufacturing companies to reinvest in their Kentucky operations served to:

• relieve or stem unemployment by preserving jobs that may no longer exist if not for the inducements; and,
• preserve and create sources of tax revenues for the support of public services provided by the Commonwealth.

KAM wholeheartedly agrees with the purpose of KRA. The KRA currently specifies that only companies within the automotive manufacturing sector that employ at least 1,000 persons within the same county are eligible for inducements if a project has eligible costs of not less than $100,000,000. The inducement available to the company is recovery, over a period of 10 years, of up to 10% of the eligible costs against Kentucky income tax.

However, it is apparent that the stated goals of the act also apply to the retention of other manufacturing jobs in general within the Commonwealth. The draft legislation with which you have been provided incorporates not only the structure of KRA, but also incorporates the sound intent of the act. The draft legislation opens the KRA door to all manufacturers, but creates tiered eligibility criteria, dependant upon the size of the business. Under the proposal:

• companies employing more than one hundred (100) persons within the Commonwealth would be eligible for inducements if the project contains eligible costs in excess of one million dollars ($1,000,000);
• companies employing more than twenty-five (25), but less than one hundred (100) persons within the Commonwealth would be eligible for inducements if the project contains eligible costs in excess of five hundred thousand dollars ($500,000); and,
• companies employing twenty-five (25) or fewer persons within the Commonwealth would be eligible for inducements if the project contains eligible costs in excess of two hundred fifty thousand dollars ($250,000).

Under this proposal, all of the safeguards previously in existence through the Kentucky Economic Development Finance Authority, such as the strict application, approval, and oversight process, will remain. The proposal merely seeks to take a well-constructed incentive and make it better by making it available to all Kentucky manufacturers who choose to make a major reinvestment for jobs within the Commonwealth.

If you look at Kentucky’s future tax base, the cost of the incentives associated with this new legislation pale in comparison to the negative impact of the loss of thousands of manufacturing jobs to China, India and Mexico in the coming years.

Thank you for your attention today and I look forward to working with the committee in the future to address this important matter.

By Bernadette Budde

A noble experiment to go early and thus focus both parties and all candidates on the economy, didn’t work out that way. Both parties may have had a point in controlling the calendar, but with so much at stake this cycle, voters were entitled to hear and see more than they did in a significant industrial state whose process was set up so that anyone could vote in this primary simply by declaring a party intention at the ballot box. Instead, this devolved into irrelevance for the Democrats when they decided to take away all delegates and their hotel rooms from the national convention. Only Hillary was on the ballot along with an uncommitted slate, and she vowed not to campaign here. Of the Republican Big Five, only three spent any time here, and the dialogue was pretty basic, even though half the state’s delegates can be seated at the convention. Instead of punishing the delegates, the parties ended up punishing Michigan voters, and in turn voters in the February 5 states who might not get to see the candidates handle priority issues in a state resembling theirs.Between New Hampshire and last night, candidates thought they talked about the great issues of the day, just not here. Competing rights of union workers … um … that would be the fight between Culinary Workers and Teachers in Las Vegas, not manufacturing and industrial unions and public employees in Michigan. Democratic views on the survival of old-line manufacturing jobs … um … that would be textiles and furniture in South Carolina, not cars in Michigan. Border issues related to commerce and tourism … um … that would be Florida and Central America, not Michigan and Canada. Legacy of Martin Luther King and progress for African-Americans in all phases of life … um … that would be a bizarre exchange of press releases, not a debate on the streets of Detroit. The dreams of second-generation immigrants in a multi-cultural America … um … that would be Hispanics in Nevada or Cubans in Florida, not Arab-Americans in Michigan. Housing foreclosure and impact on the local social fabric … um … that would be coastal Florida and desert Las Vegas, not heartland Michigan.Disenfranchisement and silence from experts comes at a time when the Michigan congressional delegation is in a powerful spot. No Democrat had the chance to sort out their platforms with Representative John Dingell (D MI), chair of Energy and Commerce, who has something to do with the future of unions, manufacturers, autos, climate change, health care. Want to talk about race and justice, why not in the backyard of Representative John Conyers (D MI), the chair of Judiciary. Want to talk about Homeland Security, why not in the state of the chair of the committee, Senator Carl Levin (D). Michigan deserved better.A no-suspense election outcome of this 30-delegate Republican primary, with the major reporting services naming Mitt Romney by 9 p.m. based on exit polls and early returns. Romney made much of his home-state legacy, his auto background and the time and resources devoted here while others were encamped elsewhere. He took 39 percent with John McCain placing second with 30 percent, Mike Huckabee third with 16 percent and Ron Paul with 6 percent ahead of the rest of the scattered field. Romney called his victory a triumph of optimism over pessimism. McCain, who delivered his cheerful concession speech from South Carolina, said he was ready for a fight. Romney won among traditional Republicans, especially in the greater Detroit suburbs. About a fourth of the Republican turnout came from independents, the mainstay of McCain’s victory here in 2000. McCain carried independents, but there weren’t enough of them to push him ahead. He also had support from older voters and the unchurched, but again, not enough of them relative to total Republican turnout.On the Democratic side, the no-delegate primary attracted enough voters that Hillary Clinton, who never campaigned here and was the only major contender on the ballot, came within about 30,000 votes of Romney’s totals. The Democrats who participated were similar to the party’s long-time base, with under 20 percent of the turnout from independents. Just under half came from union households, and that bloc was strongly for Clinton. Clinton took 57 percent, with the uncommitted slate (advocated by Edwards and Obama backers) at 38 percent. Exit polls showed “uncommitted” did better among African-Americans and young voters. If a deal eventually is struck, it won’t look so smart for Obama and Edwards to have ignored this state when there are 156 potentially “re-enfranchised” delegates somewhere out there.   

By Jack Fillenworth and Carol Storch of ThomasNet

Your website is where potential customers look first before buying from you.According to a recent study by ThomasNet and Google, more than 9 out of 10 industrial buyers use the Internet to research and purchase industrial products and services. If your website doesn’t provide the information they need, your biggest competitor online is the back button, and then the supplier who does provide the right information.This explains why your website should be more than an electronic brochure.Instead, think of your website as an indispensable member of your sales team. Like your star salesperson, your website must anticipate customers’questions and answer them clearly. It should provide details, product information , everything customers need before calling you to make a purchase.Essentially, your website must persuade customers to buy from you. Besides offering nuts-and-bolts information, it must clearly show potential customers that you sell what they need, while answering their questions and earning their trust. If your website does all of these things, it will serve as a powerful sales channel.More and more industrial suppliers see the critical role an effective website can play in driving sales. According to the ThomasNet and Google study, 97 percent of buyers who researched or compared products online took one or more actions either online or offline (A).However, there still remains a glaring disconnect between what buyers hope to find when they visit a potential supplier’s website and what suppliers actually provide. If you are among the eight in ten industrial suppliers who plan to revamp their website this year, what steps can you take to convert website visitors into customers?

(A) Buyers After Conducting Research & Comparison Phases Online

86% Made a Recommendation59% Sent a Puchase Order56% Sent an RFQ to a Supplier

Online Buyer Expectations

If an industrial supplier’s website is going to be effective, it is important to provide visitors the information they want. This means providing detailed information such as product descriptions and specs, product pricing, product applications, details on tech support and CAD drawings, if appropriate. Also, buyers want to be able to search and compare products and services fast, and be able to contact you every step of the way.. In short, online buyers want to be able to take action, whether that means asking for more information, sending you an RFQ, or sending a purchase order.

Put Your Site to the Test: VSET

In order to gauge the effectiveness of a supplier website, it can be helpful to take a step back and approach a website the way a potential customer would. Using ThomasNet’s process called VSET (Verify, Search, Evaluate, Take Action), it is possible to conduct an objective website review, asking yourself the following questions:

Verify: Can buyers instantly Verify they are on a site that has the information they want?

Search: Can buyers quickly Search for the exact products, services and specifications they need?

Evaluate: Can buyers easily Evaluate the information so they can make a decision?

Take Action: Can buyers Take Action at every step of the way – to call, email, send an RFQ or order?Online buyers are visiting supplier websites looking for specific tools and information to help them make a purchase.

Most industrial buyers, while aware of the importance of a company website, are not providing the right type of details that these visitors need to take action.Conversion: Getting a buyer to take any action that leads you closer to a saleConversion is key. Giving buyers specific information and ways to contact you, or actions to take on your site will lead you closer to a sale. Actions might include a phone number, way to e-mail you, submit an RFQ, download technical specs, CAD drawings, etc.Take the VSET test and see how your website fares. From this, you can build a plan to add the exact information your potential buyers want from you and turn your website into you star salesperson.Get the full White Paper on how to make a winning website at http://www.thomasnet.com/pressroom/wp.html?wp=Winning_Websites_White_Paper. Jack Fillenworth and Carol Storch are both senior representatives for ThomasNet and work closely with manufacturers in Kentucky. You can reach them at jack@thomasnetindiana.com and carolstorched@cs.com.

About ThomasNet

ThomasNet (www.ThomasNet.com) helps industrial sellers target their marketing investment to reach the most qualified industrial buyers online and convert them into customers. ThomasNet.com is where many buyers and engineers from Fortune 500 companies, the government, the military and more go to find suppliers.Drawing from the company’s experience in the industrial market, ThomasNet has helped thousands of clients create websites that incorporate online catalogs, CAD drawings and e-commerce capabilities. The result is a strong Internet presence that sets ThomasNet clients apart from the competition to increase sales from new and existing customers.For industrial buyers, ThomasNet.com is where they go to find the exact product, service or supplier they need, when they’re ready to buy. ThomasNet.com gives buyers immediate access to the detailed information they need to make a purchasing or specifying decision, including detailed product or service information, catalogs, CAD drawings, and more. ThomasNet is part of Thomas Industrial Network, Inc., a wholly owned subsidiary of Thomas Publishing Company, LLC.

By Bernadette Budde

A great song title to describe the Iowa outcome. Forgive us our longstanding bias that Iowa didn’t mean anything, so how come millions of dollars and thousands of ads and hundreds of days were spent on this adventure? But, we repeat. Iowa didn’t mean very much. Convoluted process, arcane rules, hocus pocus formulas and even the morning after, we’re still not sure how many delegates will cast votes for what prospective nominee at the national party conventions. That’s because Iowa’s delegates are selected in a later gathering, and nobody needs to follow what happened last night. No matter what the pundits say about Iowa and regardless of the weekend aftermath for various campaigns, why would I feel vanquished when my home state primaries are coming up on February 5 and they have way more delegates and more intelligible rules.

Think New York, Illinois, Massachusetts, Arkansas, Arizona, New Mexico and Tennessee. If a Democrat gets 15 percent of California under proportional representation (instead of winner takes all), why fret about a few hundred caucus attendees in Iowa? I still say we’ll look at February 5 primaries with the same stupor that befalls us as we evaluate what just went on in Iowa. Thus, a later state matters, and those who have a broader national potential along with ties to organized groups can revive in Wisconsin (February 19), Ohio (March 4) and Pennsylvania (April 22).

CNN called it for Mike Huckabee at 8:56 pm partly based on entrance polls showing the sample had large numbers of voters describing themselves as very conservative and evangelicals. The Huckabee over Mitt Romney margin hovered from 9 to 10 percent most of the night.Fred Thompson, John McCain and Ron Paul were grouped in the next rung with 10 to 13 percent. Final totals for the Republicans:Huckabee 34 percent, Romney 25 percent, Thompson 13 percent, McCain 13 percent and Paul 10 percent (95 percent precincts reporting).

The Democratic call didn’t come until 9:29 pm for Barack Obama as the returns inched his margins forward over Hillary Clinton and John Edwards. Obama won by an eight percent margin because he had wide support throughout the state, especially in Des Moines and Iowa City. Both caucuses had high turnout of first-time attendees, with age diversity and plenty of independents joining a disgruntled base who wanted change. Final totals for the Democrats: Obama 38 percent, Edwards 30 percent, Clinton 29 percent and Richardson 2 percent (100 percent precincts reporting). After dismal performances despite much time and effort in Iowa, Dodd and Biden announced their withdrawal from the presidential race.

If you are the old guard in either party, the voters had a clear message: they’re just not that into you. And the voters are listening to many different voices, such as bloggers, neighbors, Oprah and the regular folks on the street, while rejecting the ads. Dismiss the percentages and placements in Iowa, but remember the broader principles. Iowa ought to tell us something about the climate for elections and legislative battles in the coming months. You’ve heard this before: Unlikely voters are ready to participate, independents trump the base, issues don’t fall neatly along old political breakdowns, an angry electorate is in a listening mood and can pick up a phony spun line the first time it is uttered, pollsters still divide the public along demographic lines of race/religion/national origin/gender but the public doesn’t distinguish candidates based on these factors.KAM is a partner with BIPAC on the Kentucky Prosperity Project to encourage your employees to get involved in the political process in a non-partisan fashion. For more information on how you can get involved, click HERE.

Testimonials from Attendees Point to Forum’s Value

Follow-up surveys of those who attended the KAM-Greenebaum Time’s Up for Changing Kentucky Road Tour in Louisville indicate the event provided lots of business value for the time invested. Registration information for upcoming stops on the tour can be found at www.kamanufacturers.com. Below are some comments from attendees:I thought the “Time’s up for Changing Kentucky” in Louisville was informative and provided me with insight on recruiting, health insurance trends and concerns of manufacturers in Kentucky and what KAM and the state are doing. Well worth the time.David Joyce, Protec America Research & Technology, Inc.Manufacturing is the cornerstone of our economy, and I learned how instrumental KAM is in making sure that Frankfort does what it can to “level the playing field” with other states — and countries — that may have certain perceived advantages over Kentucky. I especially found useful the afternoon session on Human Resources. There was information in the “tools and rules” section that each of my clients would find useful.James Childress, Ameriprise Financial ServicesKAM and the Policy Forum are powerful tools for Kentucky companies like mine. The KAM staff is obviously plugged into the decision-makers network in Frankfort. The time at the forum was well spent and I made some great contacts for my business. We need to work together and KAM and the Policy Forum is the place to do that in a collegial, professional way.K.W. (Bill)Holladay Jr., President, Indesco,Inc.

Kentucky Covenant Will Motivate Students to Excel

By Ernie Fletcher, Governor of Kentucky and Republican Party Nominee for Governor of the Commonwealth of Kentucky in the 2007 Election

In Kentucky we understand how education and workforce development go hand-in-hand with economic development. I am committed to creating a business-friendly environment in Kentucky, and that requires educating and developing the best workforce we possibly can. First, I have aligned our education system so that our educational institutions are working in partnership to ensure every student receives the best education possible. I reorganized state government, bringing the Department of Education, the Council on Postsecondary Education and the Education Professional Standards Board together under one roof. While they remain independent, they are working together to set uniform standards for student achievement across the state and coordinate teacher instruction so they will know how to help our children reach these goals.Next, I have delivered record funding to education. When I came to office, P-12 education funding had stagnated from 1995-2004, rising from $3.1 billion to only $3.3 billion in inflation adjusted dollars. My administration has invested an additional 25%, raising the total to $4.1 billion. We have provided a 20% increase in base funding to postsecondary education, a 130% increase in capital funding and a 132% increase in funding to KCTCS, which has allowed Kentucky to take a step forward in creating public education partnerships with the business community. We have invested in technology to establish better tools of for sharing knowledge and accountability. We are creating a system of longitudinal tracking which will track student performance in real time, make it available on the web for parents, and help us identify students that need intervention before they start to fall behind. Our teachers are receiving an average 10% raise this biennium, taking the first step to bring Kentucky’s teacher compensation in line with our surrounding states. I will continue my efforts to make Kentucky a place where good teachers want to work. With our efforts aligned and the funding in place, we must work to motivate our students to excel. I am convinced that if a student is plagued by fears that higher education will be unaffordable, the student is likely to disregard the rigorous courses needed to become academically prepared. In my State of the Commonwealth speech, I called for the creation of a Kentucky Covenant, a pact with Kentucky students that if they work hard, earn good grades and take rigorous courses, we will guarantee them an affordable postsecondary education in this state. We are polishing our system to create a motivated and well-prepared workforce. We should not dilute our workforce by introducing casinos to our state. Not only do casinos breed social ills like crime and divorce, they also erode productivity and destroy businesses. The mere presence of a casino produces increased absenteeism, reduced productivity and gambling on company time. We don’t need to roll the dice on Kentucky’s future, we simply need to manage wisely and invest our resources according to our priorities. A prepared workforce is the key to attracting jobs, encouraging growth and making Kentucky more prosperous, and I am committed to this goal.
My Workers First Plan Will Help Kentucky Manufacturers Find Qualified Workers

By Steve Beshear, Democratic Party Nominee for Governor of the Commonwealth of Kentucky in the 2007 Election Countless manufacturing jobs are lost each year in Kentucky. A study conducted by Manufacturer’s News, Inc. showed that Kentucky lost 26,545 jobs in the past five years, although employment seems to have stabilized more recently with a loss of 1,400 manufacturing jobs in the past two years. More jobs, however, could be in jeopardy in the future. Changes in technology and organization already impact the ability of manufacturers in Kentucky to compete in the global economy. Industrial employment accounts for a significant number of jobs in Kentucky more than 65,000 jobs in Louisville alone. For Kentucky to maintain these jobs and other manufacturing jobs in the future it must invest in its workers. In my Workers First plan available at www.SteveBeshear.com, I emphasize the importance of building a well-educated, highly-skilled workforce in order for Kentucky to be competitive in the 21st Century economy. Today, Kentucky ranks at the bottom of all states in the percentage of adults with a four-year degree or more. Poor educational status, low wages and high poverty rates are holding our economy back. One of the most important ways to move Kentucky and its economy forward is to invest in our workers. My Workers First plan is based on three interrelated components: Focusing workforce development on industries that represent our futureIncreasing educational and training opportunitiesModernizing our approach to developing a skilled workforce. As Governor, I will match programs to industry needs. It’s not just about increasing the variety of programs offered by the Kentucky Community and Technical College System. It’s important that we ensure that workers who leave these programs have the knowledge and skills that our businesses and industries demand. In addition, as Governor, I will strengthen our career readiness certificate program so when businesses set out to hire workers they have a better sense of the knowledge and skills of potential employees and how they can be the most valuable to the organization. And I will rethink the way we deliver workforce-training programs so that they are integrated with statewide education and economic development strategies. Doing so will enable us to be more flexible and responsive to the businesses and industries we serve and ensure that Kentucky spends every federal dollar it receives to invest in and create a world-class workforce. As Governor, I want to make it easier for businesses and industries such as manufacturing to seek out and find highly skilled workers in Kentucky. That’s why Kentucky needs new leadership with the experience and authority to build a strong workforce and to create a thriving economy with more good-paying jobs.

KAM’s experienced 10-member Government Relations Team is already looking out for members in advance of the proposed Special Session of the General Assembly later this summer. Like everyone else, we’re waiting to see what the full agenda is going to be, says Hank List, VP of Government Relations. The session has not yet been formally called by Gov. Fletcher.One issue that will be debated is the now-designated Incentives for Energy Independence Act that proposes to provide millions in tax incentives for private investing in alternative fuel facilities such as coal to liquids or bio fuels. The idea that Kentucky might be out front on new energy is attractive, but there are questions.

What impact will the defeat of the Federal energy bill last week have on Kentucky’s energy policies? The Federal bill would have guaranteed a market for liquid coal or other new energy fuels, even if the cost to produce them exceeds the price of energy at the time the facilities are on-line. What impact will new energy facilities have on the environment? Time will tell, but some are saying the facilities could negatively impact air and water quality.Bottom line, what does this bill mean to Kentucky manufacturers? That’s debatable.

Manufacturers love the fact that Kentucky already has some of the lowest energy rates in America due to its vast coal reserves and coal-fired power plants. Will new energy plants impact Kentucky energy rates one way or another?When it comes to using state tax dollars to make the biggest impact on Kentucky’s economy, KAM believes one of the wisest uses of state business tax incentives is to help existing manufacturers modernize their facilities, train their workers and improve efficiencies to out-produce low-wage nations like China, India and Mexico. This will help slow or stop the exodus of well-paying manufacturing jobs (and existing tax revenues) from Kentucky to the lands of $3 per day wages.If you have a viewpoint on Kentucky’s proposed Incentives for Energy Independence Act, we’d like to hear it.

Last week a co-worker asked if I was planning on voting next week in the primary election. Shrugging my shoulders I replied probably not, as I went over in my mind my busy schedule and determined the lack of room for adding a trip to the voting polls.As the workweek was winding down on Friday afternoon, I was anxious to start a relaxing weekend. Just one quick stop to the local discount store and I would be on my way. As I pulled into the parking lot, I noticed the large travel bus of one of the gubernatorial candidates. My interest was piqued. I wandered over to the small crowd that had gathered and began to listen to one of our state senators who had come to speak on the candidate’s behalf. As I took a closer look, I saw not only the candidate and running mate, but also my local neighborhood mayor and the metro councilman representing my area of town. So, I continued listening, as this was not an everyday occurrence, and they introduced the candidate who began to speak on the current issues.First, there was the issue of taxes. Kentucky has one of the worst records in the nation in regard to its business tax climate. That is a pretty stunning statistic. We should all be concerned about where our tax dollars are going. Score one for Vote.Next, the issue of education. There was talk of math and science skills and the need to ensure our children are equipped with the necessary skills to keep up with growing technology. Along with the fact that education costs, it was discussed how we should make higher education affordable to all Kentuckians. As a parent of a soon to be high school student, the issue of education and college is important. Score another one for Vote.As the issues continued, economic development rose to the top. There was talk of growing Kentucky businesses and attracting new companies. We can all recall what has happened to cities and towns where companies closed down or moved away. I enjoy living in a thriving community and don’t want to think about what would happen if companies in my community had to make those choices. Score another one for Vote.The issues were plenty. There was transportation and roads, then healthcare. Once again, issues that affected me. The score for Vote continued to rise.After several minutes had passed and the applause of the crowd complete, I began to realize that my previous statement about not voting in Tuesday’s election had been made prematurely. Just how that particular candidate scored with me that afternoon will be decided on Tuesday in the polling booth. Instead, the perfect score went to the Vote. Kentucky has a lot of important issues at stake and it is both our right and responsibility to cast our vote on the issues and the leaders who will guide us through them. So, on Tuesday, May 22 take the few extra minutes in your busy schedule to vote. I know I will.

All nine Kentucky Gubernatorial candidates have submitted original blogs for posting only on KAM’s website beginning Monday, Apr. 16, and continuing until primary election day, May 22. The candidate blogs will be posted in alphabetical order, with a new blog being posted every four days until all nine have been posted over the 36-day period.

Candidates:Ernie Fletcher

In my four years as Governor I have constantly worked to improve Kentucky’s competitiveness and I am personally involved in selling this state to new businesses. I visited Europe to promote our state, and I have made trips to Japan to secure Hybrid production in Georgetown and to China to open Kentucky’s fifth international office. When Ford announced its intention to restructure, I went immediately to Michigan to let them know of our sincere intention to help in any way. I am proud of this state and its opportunities to grow businesses, and I am eager to tell everyone what makes Kentucky attractive:An educated workforce — I have concentrated on running state government efficiently and effectively which has allowed us to invest record amounts in education and workforce training.Affordable health care — I have worked to make health care more affordable for businesses, revamping the regulatory environment for captive insurers, enacting three consecutive years of insurance reform that has attracted new insurers to Kentucky, creating new insurance products and the ICARE program to help small businesses afford health insurance for their employees.Low energy costs — Kentucky boasts of some of the cheapest electricity in the country, and I have established the Office of Energy Policy with the goal of developing Kentucky’s energy economy to maintain our attractive rates.Roads and infrastructure — As Governor I aim to devote our transportation dollars to the projects our state needs, not on spending in Frankfort. This commitment has resulted in investing over $1 billion in transportation projects in a one-year period for the first time in state history.Through my Prescription for Innovation, we lead the nation in broadband growth and are nearing our goal of 100% broadband access by the end of this year.Reducing taxes — In tax modernization, we cut corporate income taxes almost 30%, cut personal income taxes for 78% of working Kentuckians, and eliminated the very unfriendly corporate license tax and the tax on intangible property. We are always looking for ways to lower taxes further. This session, we passed a wholesale revision of Tax Increment Financing to ensure the state has the tools we need to help businesses be successful in their early years.I made a commitment to create a business friendly environment in Kentucky, and will continue my efforts to create jobs and opportunity in this state.Steve Beshear Putting Kentucky Business FirstWe must move Kentucky forward in the way we work and compete, or risk being left behind. It is time we shift our economic development approach away from luring out-of-state businesses and industries that don’t need help with the promise of tax reductions, abatements and direct grants, and instead grow our economy from within, putting Kentucky Businesses first.I know firsthand from my experience as Lieutenant Governor how government can help or hinder a state’s ability to succeed and prosper economically. Economic development in Kentucky long has been focused heavily on recruiting businesses from outside our state’s borders by offering them tax subsidies at the expense of those taxpayers and businesses already in Kentucky. Nearly two decades ago, in 1986, the Kentucky Tomorrow Commission took an in-depth look at how we could improve Kentucky’s economy and create a better tomorrow for all. The Commission concluded, [E]conomic initiatives born of Kentucky know-how and Kentucky talent must be the foundation of our future economy Policies geared toward the recruitment in industries and branch plants from outside the state will not meet Kentucky’s long-term job needs.I ought to know: I chaired the Commission. We were right then and that is still right, now. We need a governor who understands that Kentucky’s economic growth will come from Kentucky-based businesses.Changes in technology and organization already impact the ability for manufacturers in Kentucky to compete in the global economy. Industrial employment accounts for a significant number of jobs in Kentucky more than 65,000 jobs in Louisville alone. For Kentucky to maintain and grow these and other manufacturing jobs in the future it must provide a strong business climate.We must focus our energy and resources on growing businesses from within. We should redirect some of the funds now spent on recruiting out-of-state businesses with the promise of tax credits, and instead invest taxpayer dollars to help existing Kentucky businesses grow and expand.My plan to put Kentucky Businesses First will focus on the following three areas:

• Creating a High-Growth State Economic Development Strategy for the 21st Century

• Improving Kentucky’s Business Climate

• Helping Kentucky’s Small Businesses Grow and Prosper

Please visit our website, www.SteveBeshear.com, to read all the details of our Kentucky Business First plan.

Kentucky made national news recently with its story on Eminence School District’s consideration of eliminating C as a passing grade. We would all applaud the Eminence School District’s desire to find new ways to motivate students to achieve. However, I join with those who would offer a word of caution. I question if it is in the best interest of the students or teachers to reduce the grading scale to only A or B.Removing the lower end of the grading scale does not automatically guarantee that everyone moves to the top. The intent of the grading scale of A through F was to provide educators and students a standard by which the student’s progress could be measured. The reduction of that standard grading system to only an A or B doesn’t paint a complete picture of all students needs or progress. All students do not learn in the same way. Unfortunately those who are not motivated to learn by challenge or those students with learning disabilities will be left behind in such a system.Today’s manufacturing industry, which is the economic engine of Kentucky, cannot afford to have any students left behind. In fact, the Kentucky Association of Manufacturers strongly supports improving math and science skills for our students.In the Associated Press article a middle and high school teacher was quoted as saying Getting a D is like doing the bare minimum, Life isn’t like that. However, getting a D does not necessarily mean that a student is unmotivated and doing the bare minimum. It could be an indication of a learning disability, needed additional instruction or other problems, such as lack of parental support or even poor teacher performance.Measuring success in life, and in the manufacturing industry, isn’t about everyone getting A’s and B’s. Often the best lessons come from failure. Let’s not prevent our students from learning those lessons by taking away C’s, D’s and F’s.