Kentucky's soaring pension and health care costs create a perfect storm for financial disaster
A Northern Kentucky bank finds a niche by helping retailers handle the overwhelming demands of returned checks
Coming Attractions
Kentucky moves to find new ways to expand and enhance the state park system
Former Gov. Brereton Jones reflects on his time in office and shares his thoughts on the current political landscape
Passing Lane
Commentary on life in Kentucky
Senate President David Williams Demonstrates Leadership in Dealing With State Pension Crisis
The state’s over-generous and under-funded retirement plans are billions in the red. The failure of the Kentucky House of Representatives – by dodging the issue and not acting on the Kentucky Senate’s bi-partisan plan to financially strengthen the pension plans for current and future beneficiaries – demonstrates a serious lack of leadership in a critical situation.
Each day that passes, the cost to Kentucky’s taxpayers escalates, the financial security of the pension plans is further reduced, and a future catastrophe for state employees and taxpayers becomes more of a certainty.
Gov. Ernie Fletcher must call a special session of the General Assembly to ensure that the pension funds are actuarially and financially secure into the future.
Horse Park Unveils Plans for New Arena
A rendering of the proposed outdoor arena at the Kentucky Horse Park shows permanent and temporary sections. The facility will go into service in 2009 for trial events prior to the Alltech FEI World Games in 2010. Funding is pending and was not given final approval by Kentucky’s General Assembly at the 2007 legislative session that ended on March 28th. Gov. Ernie Fletcher has indicated that he will call a special session of the legislature to obtain funding approval.
Alltech FEI World Equestrian Games Unveils New Logo
The World Games 2010 Foundation unveiled a new merchandising and marketing logo for the Alltech FEI World Equestrian Games, which is coming to the Kentucky Horse Park in 2010. 
The new merchandising logo will give the games, Alltech and the Fédération Equestre Internationale (FEI) a striking visual identity and will encourage those who support the event to wear the image proudly.
Clothing and novelty items adorned with the new logo are available online at the Games’ official Web site, www.feigames2010.org. Many new lines of merchandise are currently being developed by Kentucky-based AllPro Championships, the official licensing partner of the games.
The inspiration for the red, white and blue horse graphic came from Kentucky’s Unbridled Spirit™ brand.
Kentucky’s Metro Areas to Lead State’s Growth
Based on recent estimates, the population in Kentucky’s five metropolitan statistical areas – Louisville, Lexington, Bowling Green, Elizabethtown and Owensboro – will contain 58 percent of all Kentuckians in 2011. That figure is an increase from 47 percent in 2006.
Standard & Poor’s and Moody’s Upgrade Kentucky’s Financial Ratings
Standard and Poor’s (S&P) and Moody’s, two of three prominent bond rating services, have both announced improved outlooks for Kentucky’s credit picture.
Both agencies noted that the improved outlook is the result of favorable trends in Kentucky’s economy, corresponding revenue performance, and strong budget balancing measures. These efforts have resulted in a projected $401 million dollar surplus for the current biennial budget period and the replenishment of reserves – including a recommended deposit of nearly $152 million into the Budget Reserve Trust Fund. Under the Fletcher administration, the state’s “rainy day fund” has increased from a balance of $5 million in 2003 to $383 million, the highest level of reserves since the reserve trust fund was formally established in 1995.
Moody’s revised its outlook for the state’s bond ratings from “negative” to “stable” on Feb. 6, 2007, which is a level last seen on June 10, 2002. Since June 2002, the commonwealth has been on and off Moody’s watch list for a possible downgrade.
In its most recent report, Moody’s states that the commonwealth’s “credit strengths are: an ongoing trend of strong financial control; improved finances, including strengthened revenues that have outperformed estimates; and economic strengthening, reflected in recently increasing non-farm payroll employment growth following prior year declines.”
On Jan. 18, 2007, S&P revised its outlook for the commonwealth’s bond ratings from “stable” to “positive.” This marks the first rating action by S&P since Kentucky was downgraded on Oct. 9, 2002, when the bond rating service cited the General Assembly’s inability to pass a timely budget and the state’s deteriorating financial position.
Unemployment Rate in Kentucky Falls to 5.7 Percent For 2006
Kentucky’s annual unemployment rate declined to 5.7 percent in 2006 from 6 percent in 2005, while gaining 20,600 jobs. The state recorded the most nonfarm (agriculture and self-employed jobs excluded) jobs of any year in Kentucky’s history with 1,845,100 nonfarm jobs in 2006.
The U.S. unemployment rate decreased to 4.6 percent in 2006 from 5.1 percent in 2005, making it the lowest annual U.S. unemployment rate since 2000 when it was 4 percent. Unemployment rates declined in 43 states. Hawaii posted the lowest 2006 annual jobless rate in the country at 2.4 percent. Michigan had the highest annual rate at 6.9 percent.
Dam Repairs Leave Cumberland Lower But Not Dried Up
A photo at Jamestown Marina on Lake Cumberland shows the impact of lowering the lake’s water pool due to emergency repairs to Wolf Creek Dam by the U.S. Army Corps of Engineers. According to statistics compiled by the Kentucky Department of Tourism, after the emergency draw-down of the water level, Lake Cumberland’s current surface area is 35,000 acres and it now ranks third in size among all of Kentucky’s major lakes.
Lane Communications Group Purchases Prep Magazine
Lane Communications Group, publisher of The Lane Report and Kentucky Business Online (kybiz.com), has purchased Prep Magazine, a statewide business-to-business magazine serving the food service industry.
“Our editors are pleased to add Prep Magazine to our portfolio of statewide and regional business magazines. We believe that the publication fits well with our company’s mission of being Kentucky’s business news source,” said publisher Ed Lane.
“Food service is a $7.4 billion industry in Kentucky. Our state has a longstanding tradition of Southern hospitality and cooking,” Lane added.
Dan Weldy, (seated) the founder of Prep Magazine, joins Lane Communications Group as associate publisher managing the business and editorial aspects of Prep Magazine. Weldy will also contribute to Lane Communications’ other business publications.
Lane Communications Group plans to publish Prep Magazine quarterly, with the next issue being delivered in June.
