The 3rd meeting of the Interim Joint Committee on Labor and Industry was held on Thursday, August 21, 2014, at 2:00 PM, in Whitney Hall, at The Kentucky Center for the Performing Arts, Louisville, Kentucky. The meeting was a joint meeting with the Interim Joint Committee on Economic Development and Tourism. 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; Senators Julian M. Carroll, Jimmy Higdon, Dennis Parrett, and Mike Wilson; Representatives Lynn Bechler, Regina Bunch, Denver Butler, Jeffery Donohue, Jeff Greer, Dennis Horlander, Joni L. Jenkins, Thomas Kerr, Mary Lou Marzian, Terry Mills, and Jim Stewart III.
Guests: Kim Baker, President, The Kentucky Center for the Performing Arts; Kent Oyler, President and CEO, Greater Louisville, Inc; Sarah Davasher-Wisdom, Vice President, Government Affairs and Collaboration, Greater Louisville, Inc; James Reddish, Vice President, Economic and Workforce Development, Greater Louisville, Inc; Dr. Neville Pinto, Dean, University of Louisville J.B. Speed School of Engineering.
LRC Staff: Carla Montgomery, Matt Ross, Adanna Hydes, and Sasche Allen.
Approval of Minutes
A motion by Representative Jenkins and second by Representative Greer to approve the minutes of the July 17 meeting carried by voice vote.
The Kentucky Center for the Performing Arts
Kim Baker, President of The Kentucky Center for the Performing Arts, welcomed members to the center. She said that the center had recently been ranked 26th in the world, seeing more than half of a million people a year. She gave an overview of The Kentucky Center Governor’s School for the Arts, which is sponsored by the center with support and sponsorship with state funds. She expressed appreciation for state funds, which helped to provide a new roof for the center and also appropriations to increase the number of children able to attend The Kentucky Center Governor’s School for the Arts.
Greater Louisville, Inc
Kent Oyler, President and CEO of Greater Louisville, Inc. (GLI), summarized the vision of GLI and how its goal is to advance the Greater Louisville region through job and wealth creation. GLI is a member-led business leadership organization that is present in 26 counties across Kentucky and Indiana with 1,900 paid members who employ 219,000 people. GLI implements economic development programs that boost job creation, supports laws and policies that create a business friendly environment, and provides programs, products, and events that increase profits and lower costs for the Metro Chamber members and their companies.
Sarah Davasher-Wisdom, Vice President of Government Affairs and Collaboration for Greater Louisville, Inc, highlighted GLI’s plans for the public policy committees and the policies the company has supported in recent years. GLI has shown support for and advocated tax credits for angel investors, tax reform initiatives, and the local option sales tax. GLI has created an Indiana issues committee to better represent its members. GLI is creating committees for local, state, and federal issues.
James Reddish, Vice President of Economic Development and Workforce for Greater Louisville, Inc, described GLI’s history and also some of the past regional economic development efforts with which it has been involved. Over the 15 years that GLI has been in existence, it has taken on 1,200 projects that have collectively generated 74,000 new jobs and $8.2 billion in new capital investments, including companies such as UPS, Ford Motor Company, and General Electric. More recently, GLI was involved with the Bluegrass Economic Advancement Movement (BEAM) and partnered with the Brookings Institute on a collaborative plan for economic growth in the region by getting a better understanding of businesses and industries that will thrive in the region and what economic forces help promote or stifle growth within the regional economy.
Some other programs resulting from GLI partnerships are Ford Next Generation Learning, where some high schools in Jefferson County were transformed into career themed high schools and the Degrees at Work program in conjunction with the Lumina Foundation, which helps to provide resources to businesses that want to assist their incumbent workers who want to pursue post-secondary education. GLI has assisted with Kentuckiana Works, which opened the Kentucky Manufacturing Career Center and Greater Louisville International Professionals and plans to open Where Opportunity Knox soon.
In response to a question from Representative Adams, Ms. Davasher-Wisdom stated that the newly established Indiana issues committee will study Indiana’s tax structure. Mr. Reddish said that, when taking into account companies that may want to relocate to the area, the overall tax burden has to be contemplated instead of specific taxes, such as personal taxes, which may detour not necessarily the business as a whole but the business executives and other employees. When analyzing other states, comprehensive tax reform is a signal of progression. States that make bold moves with tax reform often show indicators of economic growth.
Replying to a question from Representative Short, Ms. Davasher-Wisdom said that GLI has not taken a stance on whether minimum wage should be raised. However, GLI has sent questionnaires to members to see how they feel about the issue. Mr. Reddish said that very few of the companies that GLI directly works with would be affected by a minimum wage increase because most pay above the proposed minimum wage. He did not feel comfortable addressing the effect of the minimum wage increase on the retail industry due to the lack of experience from an economic development and membership standpoint.
Addressing a question from Senator Carroll, Mr. Oyler said that The Kentucky Center is a hub for cultural and economic development, hosting various events and enhancing the retail and restaurant community in downtown Louisville. Senator Carroll said that businesses choose their location based on educational and social or cultural opportunities. The Kentucky Center assists in fulfilling the social and cultural criterion.
In response to a question from Senator Carroll, Mr. Oyler stated that, although the YUM Center has became competition for other large cities, the original goal of 174 events per year must be met for it to be more profitable. The YUM Center has brought development to the downtown Louisville area, including the impending Omni hotel and retail development. Mr. Reddish said that, while GLI does not deal in retail, the increase of better paying jobs that move into the area will result in more disposable income, which will lead to economic success.
Answering a question posed by Representative Denham, Mr. Oyler described how GLI elects its directors, saying that they are chosen by an executive committee. The process is being reassessed and may be changed because governance is critical, especially with GLI starting to cross state lines.
Responding to Representative Donohue, Mr. Reddish said that Texas, Florida, North Carolina, South Carolina, and the southeast region of the country in general would be good examples for Kentucky to mirror in regards to different segments of tax reform and economic development.
Institute for Product Realization: Connecting Education, Research, and Job Creation
Dr. Neville Pinto, Dean of the University of Louisville J.B. Speed School of Engineering, testified about the Institute for Product Realization project, made possible with state funds and support from Representative Clark. The Cabinet for Economic Development, Greater Louisville, Inc., and the mayors’ offices of Louisville and Lexington, through the BEAM initiative, have assisted with the project. The focus is to create an institution to assist in growing the manufacturing industry in Kentucky on a long-term basis.
Dean Pinto compared the institute to an ecosystem, which in order to prosper would require collaboration with co-located industries, strong support from the University of Louisville, through human potential and research capabilities, and a global co-creation. He described the four areas that are going to support the Institute for Product Realization which include research and education, a launch pad, a co-creation platform, and a micro-factory. Through the Institute for Product Realization, an internet based group composed of people from around the world will formulate ideas and designs for products. The product will then be built at the micro-factory, located in Louisville, and once built consumers will test it, either physically or virtually, and determine if they would buy the product by giving direct feedback. If the feedback is positive, then the product will be manufactured through a launch pad. By connecting to consumers immediately through the internet, the cycle time between the primary idea and the manufacturing of the final product will be much more rapid.
Dean Pinto, in response to a question from Senator Kerr, stated that, through the J.B. Speed School of Engineering’s admissions office, students are recruited from across the state. There are programs that target children as early as elementary school.
Answering a question from Representative Bechler, Dean Pinto said that the students enrolled in the J.B. Speed School of Engineering comprise about 10 percent of the University of Louisville, and about 77 to 78 percent of first year students go on to their second year, while others change their major. Between 50 to 60 percent of students complete the engineering program from start to finish.
Representative Clark pointed out some enhancements to the University of Louisville over the years and commended Dean Pinto for his work.
Replying to a question from Senator Kerr, Dean Pinto gave examples of how the J.B. Speed School of Engineering is trying to keep students engaged. The school is opening an office to advise and connect with the students as individuals.
Other Business
Co-Chair Kerr provided a list of upcoming committee meetings:
1. September 10 (Wednesday), Kentucky Dam Village, Labor and Industry Committee Meeting at the Labor Management Conference, 10:30 am (CT), 11:30 am (ET)
2. September 18, Shaker Village, Economic Development and Tourism Committee meeting, 1:00 pm
There being no further business, the meeting adjourned at 3:36 pm.