Since 1990, Kentucky’s growth trends have been very positive. Population in Kentucky reached four million persons this year - an increase of over 300,000 since the 1990 census, and a growth rate of 9.1 percent.

During the period 1981-1990 the state’s population only increased by 23,000 persons - less than one percent. Per household incomes have increased from $32,655 in 1990 to $45,755 this year. Many areas and cities in Kentucky that experienced drops in population during the 1980’s are now experiencing growth.

Most economists, including Dr. Charles Haywood, who is interviewed in this month’s issue of The Lane Report (pg. 16), attribute population and income growth to the creation of new jobs. Good jobs keep people from moving to other states for employment. Kentuckians who now reside in other states are moving back to the Commonwealth. Based on significant increases in population and household income, one would have to conclude that during the past decade Kentucky’s incentives for companies to expand or build new businesses in Kentucky and create new jobs have been extremely successful.

The state’s efforts to improve Kentucky’s educational system and enhance the quality of the workforce coupled with incentives have been a powerful force to boost the economy and the quality of life in Kentucky.

Without the efforts of state and local government to recruit new business, Kentucky could have been faced with low tech industries moving to foreign countries, a static but aging population, low per capita and per household incomes and an eroding tax base that would require higher tax rates or a decline in governmental services. Instead, Kentucky is growing at a healthy rate and its economic vitality is excellent. Prosperity has created big tax surpluses for state and local governments.

Investing tax dollars in incentives for new businesses has proven to be a successful strategy to make Kentucky a great place to work, live and raise a family. According to Dr. Haywood, the payback on the $300 million incentive to Toyota will be so substantial- $1.5 billion - that it may be adequate to fund most of the incentives granted to other companies over the past decade.

All incentives may not deliver a superlative return, but the economic results on a cumulative basis are what is important. Without question, Kentucky’s incentive program has helped insure that the future will be prosperous and full of opportunity.