Commerce Lexington Inc. Blog

​Last Tuesday was a significant day in Frankfort and Lexington. It was the deadline for candidates to file for local, state and federal offices in 2018. In the non-partisan race for Lexington's Mayor, seven candidates filed to run. They are: former Public Safety Commissioner Ronnie Bastin, former Vice Mayor Linda Gorton, Skip Horine, former Mayor Teresa Isaac, LFUCG Council Member Kevin Stinnett, Ike Lawrence and William Weyman. The top two vote-getters will advance to the November General Election.
 
In the General Assembly, all 100 House seats and 19 of 38 Senate seats are on the ballot this year. The overwhelming majority of House and Senate incumbents face opposition. Of the Fayette County delegation, Rep. Robert Benvenuti and Rep. Sannie Overly are not seeking re-election. It is yet to be seen how these political dynamics will impact legislative issues in Frankfort like pension reform or budget negotiations.
 
In the 6th District Congressional race, Congressman Andy Barr faces Chuck Eddy of Lexington in the Republican Primary. There is a six-way Democratic Primary between Lexington Mayor Jim Gray, State Senator Reggie Thomas, Amy McGrath, Theodore David Green, Daniel Kemph and Geoff Young. The primary winners will advance to the General Election.
 
View all Fayette County Election Filings
 
The Primary Election is on May 22, and the General Election is on November 6.

This week, Commerce Lexington held a special policy briefing on international trade. Christopher Wenk, the Executive Director of International Policy at the U.S. Chamber of Commerce, led a presentation and discussion about the importance of free trade agreements to Kentucky’s economy, and why members of the business leaders should be engaged in advocating for these agreements at the federal level of government. 
 
Chamber members were given insight on current free trade agreements and how trade creates big markets for small economies. In a global economy, international trade significantly impacts Kentucky's businesses by providing access to new markets. 

• 41 million American jobs depend on international trade.
• 1/2 of the 12 million U.S. manufacturing jobs depend on exports.
• 1 in 3 acres on U.S. farms planted for export.
• For Kentucky, trade supports $29 billion in exports and more than 539,000 jobs.
• Close to 79% of Kentucky exporters are small/medium businesses.  

 
Kentucky’s top trading markets are Canada, UK, France and Mexico. Therefore, negotiations related to Brexit and the North American Free Trade Agreement (NAFTA) will be important to watch.  For example, NAFTA supports 14 million U.S. jobs, including 184,309 Kentucky jobs.
 
Although the economic benefit is clear and public sentiment toward trade is positive, challenges remain for these agreements.  U.S. markets are largely open to imports, but tariffs in developing countries can be much higher, creating a competitive disadvantage.  Discriminatory regulations and non-tariff barriers are also a problem.  President Trump has expressed concerns about imbalances, particularly with China, and indicated a willingness to withdraw from agreements like NAFTA. While modernizations may be needed to level the playing field, withdrawing from NAFTA could be economically devastating for the U.S. and Kentucky.  Wenk said the Administration favors bilateral negotiations with countries over multi-lateral agreements.  
 
Because of Trade Promotion Authority, Congress has a role to play in this debate. Wenk urged the Lexington business community to closely monitor the Administration’s ongoing negotiations and to engage with Kentucky’s Congressional delegation to share real stories about the impact of trade on Lexington businesses.   
 
On July 11-12, Commerce Lexington will be taking a delegation of business leaders to Washington, D.C. for the annual Fly-In.  Trade is expected to be a top issue. 
 
For more information about trade, visit http://tradeworksforus.com/.
 
If you have questions about this issue, or would like to share the impact of trade on your businesses with officials in Washington, D.C, please contact Andi Johnson, CLX Chief Policy Officer, at 859-226-1614 or by email.
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State legislators have convened in Frankfort for the 2018 Regular Session of the Kentucky General Assembly.  During the 60-day session, the primary focus will be formulating the next two-year state budget.  Balancing the budget, as is required by the Constitution, will be an extremely difficult task.  Lack of sufficient growth in state revenue to meet Kentucky's needs continues to be a chronic issue.  Significant costs for required contributions to the financially troubled public pension systems and Medicaid expansion are predicted to force severe cuts to remaining governmental agencies and programs, including K-12 education.  These factors have put more pressure on the need for tax reform to stimulate economic growth and additional revenues. 
 
This past week, both the Kentucky House and Senate met to introduce bills and handle organizational requirements.  At this time, a pension reform bill has not been introduced in the House or Senate.  The House adopted rules that differed from last year by including a process to establish a bipartisan committee to investigate charges filed by any two members against another member.  This rule change was taken advantage of by 8 members who immediately filed charges against House Speaker Jeff Hoover, alleging inappropriate conduct.  Last week, Hoover announced he would stand aside from his leadership position until the Legislative Ethics Commission completes its investigation into the same allegations.  House Speaker Pro-Tem David Osborne (R-Prospect) continues to serve as the acting Speaker of the  House.   
 
It is yet to be seen if the internal issues in the House will impact the progress of legislative priorities, such as pension reform, tax reform and regulation reduction. Governor Matt Bevin is expected to deliver both the State of the Commonwealth and his budget address on January 16.  
 
In 2018, all 100 state House seats and 19 Senate seats will be up for election. The filing deadline for candidates is January 30.  Frequently, controversial legislation is not considered until after the filing deadline.
 
Other priority issues for Commerce Lexington this session include: workers compensation system reforms, medical liability reforms to improve the healthcare economy and essential skills legislation to encourage soft skills development in schools.  
 
Commerce Lexington will be monitoring legislation and providing regular email updates throughout the session to keep you informed about the issues impacting the business community.  If you have questions or concerns, you may contact Andi Johnson, CLX Chief Policy Officer, at 859-226-1614 or by email.

Elizabeth Bishop will be working under Commerce Lexington Inc. Chief Policy Officer and Director of Regional Engagement Andi Johnson and the Director of Leadership Development Amy Carrington. She will be completing her final semester of her Master’s Program in Public Policy at the University of Kentucky. With a background and degree in Community Leadership Development and knowledge in Public Policy with a focus in Information Communication Technology she plans to experience the legislative process from the Chambers point of view. Throughout her time here, gaining knowledge and insight about facilitating policy on issues in the city she calls home, will be a valuable experience for both her career and state. We look forward to providing her with the foundation for facilitating and managing many responsibilities to nurture her development. 

From taxes and regulation to health care and education to energy and environmental issues, government impacts all aspects of economic development.  Businesses leaders are often too busy attracting investments, creating jobs and running operations to focus large amounts of time on monitoring legislation and regulations, analyzing their effect and advocating for their passage, defeat or modification.  That’s why – whether at City Hall, the State Capitol, or in Washington – Commerce Lexington Inc. is proud to work on your behalf as an effective public policy voice. 
 
Throughout the year, Commerce Lexington’s Public Policy Council researches, analyzes and discusses important policy issues from the perspective of how it may affect the Central Kentucky business community, then recommends advocacy position statements.  The group is comprised of more than 45 volunteer leaders and represents a cross section of Commerce Lexington’s 1,700 member organizations.  Commerce Lexington’s Executive Board reviews and approves the Policy Statements recommended by the Public Policy Council. 

​Please take a few minutes to review the 2018 Legislative Focus to learn about issues we will be tracking on behalf of the business community at the local, state and federal levels this year.

In January, state lawmakers return to Frankfort for a 60-day legislative session.  The “long session” occurs in even-numbered years.  The primary focus will be on reforms to the state’s financially troubled public pension systems, and the crafting of the next $20 billion two-year state budget and road plan.   Tax reform is also expected to be discussed.  Without pension or tax reform, the Governor and General Assembly members may have to make significant cuts to state government to balance the state’s budget as is required. 
 
Other priority issues include: workers compensation system reforms, medical liability reforms to improve the healthcare economy and essential skills legislation aimed at focusing schools on soft skills development. Commerce Lexington will be hosting its Annual Evening in the Bluegrass on February 22 at Berry Hill Mansion from 5:00 p.m. – 7:30 p.m.  The reception offers members with the opportunity to engage with legislators and administration officials. 

At the local level, Commerce Lexington will continue to monitor regulatory, environmental and other economic development issues.  The chamber continues to be focused on local and state policy efforts to improve the education and workforce development systems.  This includes the partnership with the Business and Education Network (BEN) and work to identify current and future workforce needs and develop a plan to meet those needs through collaborative community partnerships such as the Fayette County Public Schools Career Academies. 
 
In July, Commerce Lexington will take a delegation of regional business and community leaders to Washington, D.C., for a two-day Fly-In. The visit will include meetings with members of the Kentucky Congressional Delegation and their staffs to discuss the impact of federal policies on local businesses. 
 
Commerce Lexington will also host the Public Policy Luncheon series presented by Kentucky American Water.  The purpose of the events is to educate members about key policy issues and offer opportunities for members to engage with key policy leaders. 
 
HOW TO CONTACT LEGISLATORS:
 www.lrc.ky.gov/whoswho/county.htm
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FOR MORE INFORMATION:
If you have questions, need assistance with a policy issue, or would like to get involved with advocacy efforts, contact Andi Johnson, Chief Policy Officer and Director of Regional Engagement, at ajohnson@commercelexington.com or  (859) 226-1614.
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Commerce Lexington Inc. joined the Kentucky Chamber of Commerce and other local chambers in signing a support letter to both U.S. Senate Majority Leader Mitch McConnell and U.S. Senator Rand Paul urging the passage of federal tax reform to help our job creators. 

VIEW THE LETTERS HERE:
U.S. Senator Mitch McConnell Letter
U.S. Senator Rand Paul Letter
 
Commerce Lexington Inc. has a long-standing position of supporting tax reform to improve Kentucky’s competitiveness, including lower corporate tax rates.  We were pleased to see Congressman Andy Barr and the U.S. House of Representatives pass federal tax reform and encourage the Senate to continue to move forward with this critical issue. 
 
In expectation of progress being made, the Kentucky business community believes that:

• A lower corporate tax rate would better allow U.S. businesses to compete in today’s globalized marketplace.
• The best means of achieving a more competitive tax system is through a reduction in the U.S. statutory corporate tax rate, currently the highest in the industrialized world.
• A lower corporate tax rate would benefit both domestic and multinational companies and would increase incentives to invest in the U.S., enhancing economic growth and benefitting American workers, consumers, and small businesses.
• A lower corporate tax rate will result in increased economic growth, but the Chamber recognizes budget responsibility and is willing to put all tax expenditures on the table to achieve a globally competitive rate.
• Further, we recognize small businesses, which are critical to Kentucky’s economy, are often organized as pass-through entities. We believe tax reform should also consider the tax burden of small businesses by simplifying the code and reducing costs to ensure small businesses do not incur a greater tax burden.

On April 17, Bluegrass Community and Technical College (BCTCS) officially dedicated the new Advanced Manufacturing Center in Georgetown, KY.  Several local and state officials, and business and community leaders, from the Central Kentucky region were on-hand for the event.

The Advanced Manufacturing Center includes space for traditional classes and some meeting space, but a unique component of the facility is the flexible high-bay area equipped with modern manufacturing equipment such as computers, robotics and other electronics intended to help students become comfortable in manufacturing settings. Viewed as a game changer for workforce development, it has the capacity to train more than 1,000 students for jobs related to the advanced manufacturing field including technicians, industrial maintenance, electronics, industrial electricity, robotics, mechanical drives, fluid power, machining and welding.   
 
Commerce Lexington Inc. joined in support of Toyota and BCTC in advocating for the facility during the 2014 legislative session.  The facility received $24 million in state bond funding in the FY14-16 budget.  

​Messer Construction broke ground on the 78,000-square-foot center in spring 2015 and worked on a rapid schedule to ensure it would be open for January classes. The facility was designed by Omni Architects. The facility is located in the Lanes Run Business Park near Toyota Motor Manufacturing Kentucky in Scott County.  

By Vice President for Research Lisa Cassis 
(Published April 13, 2017)

In December, with bipartisan support, Congress passed the 21st Century Cures Act, a major piece of legislation designed to re-energize medical research within the National Institutes of Health (NIH) – the world’s premier biomedical research government agency. But the recently released so called “skinny” budget within the America First budget blueprint, which includes a roughly $6 billion cut to the NIH, would profoundly curtail discovery and innovation across the U.S.

Members of the House and Senate from both parties have voiced their doubts about such cuts in federal funding for research and discovery, and the budget in its current form is by no means what will eventually pass. However, as UK is the flagship land-grant research institute of our state, we would be remiss if we did not portray to our citizenry, both within and external to the institution, why research matters and what is at stake. This week we outline the importance of federal funding for research at UK, with an emphasis on the realities of how these proposed cuts in research funding would influence not just UK, but the Commonwealth and nation at large.  Read more here