Call to Order and Roll Call
The 2nd meeting of the Interim Joint Committee on Economic Development and Tourism was held on Thursday, August 18, 2016, at 1:00 PM, in Room 154 of the Capitol Annex. Senator Alice Forgy Kerr, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Alice Forgy Kerr, Co-Chair; Representative John Short, Co-Chair; Senators Perry B. Clark, Chris Girdler, Ernie Harris, Jimmy Higdon, Wil Schroder, Reginald Thomas, Mike Wilson, and Max Wise; Representatives Lynn Bechler, Kevin D. Bratcher, George Brown Jr., Tim Couch, Mike Denham, Jeffery Donohue, Myron Dossett, Daniel Elliott, Richard Heath, Cluster Howard, James Kay, Martha Jane King, Brian Linder, Tom McKee, Terry Mills, Ruth Ann Palumbo, Dean Schamore, Arnold Simpson, Fitz Steele, Wilson Stone, Jeff Taylor, and Russell Webber.
Guests: Erik Dunnigan, Acting Secretary, Cabinet for Economic Development; Luther Deaton, Jr., Chairman, President, and CEO of Central Bank & Trust Company/Vice Chairman, Kentucky Economic Development Partnership Board; James Mallory, Vice Chairman, Lewis and Clark Trust, Inc.
LRC Staff: John Buckner, Chip Smith, and Karen Brady.
Minutes
A motion was made and seconded to approve the minutes of the July 21, 2016 meeting and carried by voice vote.
Kentucky’s Economic Landscape – Opportunities and Obstacles
Secretary Dunnigan, Cabinet for Economic Development, stated that Kentucky is on pace for a third consecutive record year for new investments and job creation. Manufacturing is the biggest contributor to the state’s gross domestic product (GDP), making up nearly 20 percent. Manufacturing GDP has grown at almost twice the national average since 2008.
Secretary Dunnigan said the cabinet has three focus key areas: access to market, workforce, and business environment. Kentucky’s location helps in competing on a global stage. The state is on pace for its sixth record year in exporting, with aerospace leading the way. Main obstacles to overcome in access to market are all related to infrastructure.
Internally, the cabinet is focusing on personnel, becoming more efficient, and engaging in more marketing.
Luther Deaton identified opportunities in tax reform, infrastructure in eastern Kentucky, education, and workforce development.
In response to comments from Representative Donohue, Secretary Dunnigan stated that Brunswick Corporation turned Kentucky down because it is not a Right to Work state. Mr. Deaton commented that it is hard to know how many companies turn Kentucky down over Right to Work status, but consultants tell the cabinet that it happens.
In response to a question from Representative McKee, Secretary Dunnigan stated the cabinet is evaluating each industrial park in the state.
In responding to a question from Representative Linder, Secretary Dunnigan said that the aerospace industry presents the biggest opportunity for Kentucky.
Lewis and Clark National Historic Trail
James Mallory requested a letter of support from the committee for a completed Lewis and Clark National Historic Trail in Kentucky for the period 1803-1809. The trail will allow an increase in cultural heritage tourism and promote preservation of cultural and natural resources.
Mr. Mallory testified that funds are needed for a third printing of the “Kentucky’s Lewis and Clark Legacy” brochure and map, which also needs to be included on Kentucky Tourism’s website.
Chair Kerr stated that the committee would draft a letter to the National Park Service in support of the completed Lewis and Clark Trail in Kentucky, to be signed by the Chair and Co-Chair. Representative Bechler moved that all members of the Interim Joint Committee have an opportunity to sign the letter. Senator Wilson seconded the motion and it carried by voice vote.
There being no further business, the meeting was adjourned at 2:47 p.m.