When it comes to broadband, why is Kentucky stuck in slow lane?

August 17, 2014

broadband

 

When Dr. Pamela Graber traveled in Uzbekistan and Turkey, she was surprised to find fast, reliable Internet connections. She just wishes she could get that kind of service at her home, 20 miles from Kentucky’s State Capitol building.

“I sit here and wait for things to come up” on the screen, said Graber, an emergency physician who lives in the Beaver Lake area of Anderson County.

She and neighbors have petitioned a major Internet provider in their area for service, with no luck. So they use a satellite dish service. With data charges, Graber’s monthly bill is more than $100 — much higher than she pays for excellent service in Florida, where she lives and works each winter.

While slow Internet is annoying for Graber and her husband, Melvin Wilson, it’s a serious problem for two neighbors who have home-based online jobs. “When there’s a wind storm, they can’t work,” she said.

“Internet’s the main infrastructure we’re going to need to work in the future,” Graber said. “It’s going to be a huge issue.”

It already is. Akamai Technologies’ quarterly State of the Internet report last week highlighted Kentucky — and not in a good way. It said that while Alaska has the nation’s worst average Internet connection speed, at 7.0 megabits per second, Kentucky, Montana and Arkansas are almost as bad, at 7.3 Mbps.

By comparison, 26 states have average connection speeds of 10 Mbps or above, which is now considered a minimum by tech-savvy homeowners. The fastest average speeds are above 13 Mbps in Virginia, Delaware and Massachusetts.

Kentucky also was near the bottom of the list when it came to improvement of average speeds over the past year. And when Akamai measured states’ “readiness” for ultra-high definition (4k) video streaming, Kentucky was dead last.

“Embarrassing, actually,” is how Brian Kiser described the report. He is executive director of the Commonwealth Office of Broadband Outreach and Development, and I called to ask him why Kentucky is so far behind.

“Our broadband speeds are left up to the providers, and I’m not sure the providers are investing enough in infrastructure,” said Kiser, who takes between three and 10 calls a day from citizens wanting help with Internet service.

Other studies rank Kentucky 46th nationally in broadband availability, with 23 percent of state residents having no access at all.

Part of the issue is a chicken-and-egg problem. Virtually all of Kentucky’s Internet providers are private companies, which are reluctant to invest in infrastructure if they can’t see a potential return on their investment. Providers usually want at least a dozen customers per mile in rural areas. “The problem is that 10 minutes outside our biggest cities it’s rural,” Kiser said.

Kentucky has one of the nation’s lowest demand rates for home Internet, at about 60 percent. “Surveys show people say either it’s too expensive or they don’t see a need for it,” he said.

(It’s worth noting that Kentucky has a high adoption rate for smart phones. Kiser said that’s because smart phones can be a more economical way for poor people to meet many needs — phone, Internet, camera, entertainment — especially in rural areas under-served by broadband.)

Kiser said his office has partnered with Community Action Kentucky to build 30 public Internet facilities in rural parts of the state to encourage technology literacy and use. The centers have proven quite popular for things such as résumé writing and social media use. “We just want people to not be intimidated by it,” he said.

Internet costs in Kentucky are comparable to neighboring states. But Internet all over the United States is much more expensive than in many other countries. “The real problem, I think, is we don’t have enough competition,” Kiser said.

Connected Nation, a national broadband advocacy group, says that improving Internet service requires a two-prong strategy: pushing Internet providers to offer better service and making the public more technologically literate and savvy, so they will create the business demand for that better service.

Tom Ferree, the president of Connected Nation, said the states with the best Internet infrastructure are those that have had strong leadership on the issue at both state and local levels, plus a lot of grassroots advocacy.

Many states got a jump on Kentucky because they were well-positioned with “shovel ready” broadband expansion plans in 2009 when Congress and the Obama administration put about $7 billion in economic “stimulus” money into data network development.

But there may be more funding opportunities ahead, Ferree said. The Federal Communications Commission is changing policy to shift subsidies away from traditional telephone service to digital data networks. That could be a big opportunity for states that develop good broadband plans.

As an outgrowth of the bipartisan Shaping Our Appalachian Region initiative, Gov. Steve Beshear and U.S. Rep. Hal Rogers have proposed a $100 million public-private effort to begin building a 3,000-mile, high-speed fiber optic network across Kentucky to connect with local Internet providers.

“I cannot emphasize enough the need for local planning and plan building,” Ferree said. “I think that plan holds great promise. I hope Kentucky makes the most of it.”


Eastern Kentucky jobs outlook: health care and more broadband

August 11, 2014

crouch1Ron Crouch is the director of research and statistics for the Education and Workforce Development Cabinet in Frankfort. He says a growing health care industry in Eastern Kentucky should help offset jobs lost to coal’s decline. Photo by Mark Mahan

 

There is more talk than usual about the need to create jobs and a more diverse economy in Eastern Kentucky because of the coal industry’s decline.

It made me wonder: what are the latest trends? For some answers, I called Ron Crouch, director of research and statistics for the Education and Workforce Development Cabinet. He previously headed the Kentucky State Data Center for two decades and is better than anyone I know at analyzing this sort of information.

People are alarmed because coal-industry employment in Eastern Kentucky has dropped to about 7,300 — half what it was five years ago. Coal-mining jobs have been important to the region because they pay well: about $65,000 a year.

President Barack Obama’s critics have blamed stricter environmental regulations for the sudden drop in coal employment. But the biggest factors have been cheap natural gas and the fact that Eastern Kentucky’s best coal seams have been depleted over the past century; the coal that is left is more costly (and environmentally damaging) to mine.

But Crouch notes that coal employment in Eastern Kentucky has been declining steadily for more than six decades — even accounting for periodic booms and busts — mainly because of mechanization. Coal production peaked in 1990, but coal employment peaked in 1950, when there were 67,000 miners.

Some Eastern Kentucky leaders have pursued manufacturing as a source of new jobs. But Crouch says the long-term prospects for manufacturing aren’t too good, either, also because of automation.

“Manufacturing is coming back to the United States, but not necessarily manufacturing jobs,” he said. “We’re producing far more goods, but with far fewer workers.”

Still, Crouch sees hopeful signs for Eastern Kentucky.

While the region still lags the state in college degrees, high school graduation rates have improved significantly, as have the number of people completing other levels of training between high school and a bachelor’s degree. Many new, good-paying jobs are for people with that level of education.

Those areas include health care as well as professional, scientific and technical services. Some of these jobs pay well. For example, the number of registered nursing jobs, which pay about $55,000, is growing significantly.

Eastern Kentucky’s health care industry should see big growth in coming years. One reason is demographics. Baby Boomers are now entering their 60s and 70s and will require more health services. Another reason is the Affordable Care Act.

“You’re going to see a huge increase in the number of people in East Kentucky who have health insurance,” Crouch said.

Because Eastern Kentucky families are smaller than in the past, there will be less pressure for young people to leave.

“You now have a population with more people in their 40s, 50s and 60s than in their teens and 20s,” Crouch said. “If those young people can get the education and training they need after high school, there will be jobs for them in East Kentucky.”

But many of the growing economic sectors in the region, such as health care, have traditionally been dominated by women, while shrinking sectors, such as mining and manufacturing, have been mostly male. In some Eastern Kentucky counties, women now have higher employment rates than men.

“The good news is the economy has been transitioning to a broader economy,” Crouch said. “But how do you transition a population of males who have been involved in mining and manufacturing to jobs in professional, technical services and food services and health care, which have largely been female?”

Crouch said improving broadband service in Eastern Kentucky, which has the state’s poorest connections to the Internet, is vital.

“That would accelerate the growth in higher-skilled jobs,” he said.

Crouch is troubled that many Eastern Kentucky counties have high percentages of working-age people not in the formal labor force. He thinks many are “getting by” in the cash and barter economy, some of which is illegal.

He also is concerned that much of the job growth has been in low-wage service industries. Because the legal minimum wage hasn’t kept pace with inflation, full-time work in many low-wage jobs doesn’t produce a living wage for a family.

“The good news is that East Kentucky is not having a brain drain, despite what people think; it’s having a brain gain,” he said. “But, as the saying goes, we’re halfway home and have a long way to go.”


The real issues in this Senate campaign? Speeches offer a clue

August 9, 2014

140806Clinton-TE0255Former President Bill Clinton appeared at a fundraising luncheon in Lexington on Aug. 6 for Secretary of State Alison Lundergan Grimes. Photos by Tom Eblen

 

I spent time in the past week listening to a lot of speeches by the two U.S. Senate candidates and their surrogates.

We don’t hear as many political speeches as we used to. Campaigns have mostly become a series of TV attack ads in which candidates trash their opponents and stretch the truth as much as they can in 30 seconds.

Political speeches are longer than attack ads, increasing the odds that a candidate might mention accomplishments or goals or reveal the values behind his or her campaign.

When Sen. Mitch McConnell and his Democratic challenger, Secretary of State Alison Lundergan Grimes, faced off Aug. 2 at the Fancy Farm Picnic, they mostly mocked each other and professed more love for the coal industry than for clean air, clean water and good health.

McConnell used the rest of his time to slam Gov. Steve Beshear, Attorney General Jack Conway, the “liberal” media and President Barack Obama, perhaps the only politician with a lower approval rating in Kentucky than his own.

McConnell vowed to repeal Obama’s health-care law, which has provided insurance to tens of thousands of Kentuckians who didn’t have it. He also urged voters to re-elect him to lead Senate Republicans so the gridlock in Washington can continue.

What McConnell did not mention was any accomplishments during his three decades as Kentucky’s longest-serving senator. He also didn’t say what he would do to improve the lives of average Kentuckians.

At least Grimes used some of her time to talk about how she would try to grow a middle class that has been shrinking for three decades because of globalization and “trickle down” economic policies that favor the wealthy.

Grimes called for raising the minimum wage and legislating equitable pay for women, both of which McConnell opposes. She also voiced support for strengthening Social Security and Medicare, making college more affordable and protecting the right of workers to bargain collectively for better pay and benefits.

With polls showing the race essentially tied, Grimes brought in former President Bill Clinton to campaign for her Wednesday in Lexington and Hazard. Clinton carried Kentucky in both of his presidential elections, and his administrations presided over an era of balanced budgets, job growth, welfare reform and economic prosperity.

Clinton is a gifted speaker with a knack for putting things in perspective.

“Creating jobs and raising incomes and giving poor people a chance to work into the middle class, that is the issue,” Clinton told those who attended a Grimes fundraising luncheon in Lexington.

He endorsed Grimes’ call for raising the $7.25 federal minimum wage, which hasn’t been increased in five years.

“We have not kept up with inflation,” Clinton said, adding that a reasonable increase in the minimum wage will create jobs, not kill them as Republicans always claim. “These people are going to spend that money; it’s going to circulate in their communities; all the local merchants are going to be better off; incomes will go up; more people will get hired; more people will get a pay raise.

“Creating more jobs and shared prosperity, as opposed to fewer jobs and more concentrated wealth with all the benefits going to people at the top, is the main issue people face in country after country and country,” he added. “We Americans have not done enough for broadly shared prosperity, because we have not done enough to create jobs.”

Clinton also discussed the political obstruction McConnell has led in Congress since Obama became president in 2009.

He contrasted McConnell to former U.S. Sen. Wendell Ford, a Democrat who while in Senate leadership worked well with colleagues and presidents of both parties, and to Beshear, a Democrat, and U.S. Rep. Hal Rogers, a Republican, who together last year formed the Shaping Our Appalachian Region initiative to help diversify Eastern Kentucky’s economy.

“I’ve been everywhere, and I’m telling you: whenever people are working together, good things are happening,” Clinton said. “Whenever they spend all their time fighting, good things are not happening. The founders of this country gave us a system that requires us to treat people who disagree with us with respect and dignity and to make principled compromise so that something good can happen. Cooperation works, and constant conflict is a dead-bang loser.”

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Morehead space program shows Eastern Kentucky can aim high

July 26, 2014

140721KySpace-TE0025

Zach Taulbee, 21, of Prestonsburg uses a computerized CNC machine to make an aluminum part for a small “cubesat” satellite. Taulbee is an undergraduate and machine shop manager at Morehead State University’s Space Science Center.  Photo by Tom Eblen

 

MOREHEAD — When people talk about diversifying an Eastern Kentucky economy dominated for a century by coal mining and poverty, they often don’t aim very high: low-wage factories and corporate call centers.

But you can see another possibility at Morehead State University’s Space Science Center. Over the past decade, in partnership with the Kentucky Science and Technology Corp. and the University of Kentucky, the center has become a world leader in designing and building small, high-tech spacecraft of the future.

One morning last week, I stood with Kris Kimel, president of KSTC, in the center’s control room as engineers used computers to locate two Morehead-built satellites now circling the Earth. Faculty and students use the control room to download data and upload instructions to the satellites as they pass within range of one of the world’s biggest space-tracking antennas, visible out the window on a nearby hilltop.

“This is a different kind of call center,” Kimel said.

Lexington-based KSTC was created 27 years ago as a non-profit corporation to develop innovation-driven, entrepreneurial companies in Kentucky. A decade ago, Kimel saw an opportunity to grow Morehead’s already strong astrophysics program in a new direction.

He realized that the micro-technology then revolutionizing computers and cellphones would also change spacecraft, especially as NASA was turning over much of its traditional work to private industry. Somebody needed to design and build this new stuff, Kimel thought. Why couldn’t it be done in Kentucky?

“We knew we had really smart people here; we knew we had smart students,” he said. “But we had to be aggressive and ambitious and move quickly.”

140721KySpace-TE0086KSTC set up a lab in California’s Silicon Valley. Benjamin Malphrus, chairman of Morehead’s Department of Earth and Space Sciences, and UK engineering professor James Lumpp spent several weeks there in 2005 with about 20 graduate students, learning all they could about new satellite technology.

They collaborated with engineers at NASA and Stanford University. Among them was Robert Twiggs, who helped develop some of the first small satellites, including the CubeSat, which has become an industry standard. Twiggs left Stanford in 2009 and moved to Morehead to teach.

KSTC created Kentucky Space LLC in 2010 as a non-profit corporation to coordinate this university research with industry. Last week, KSTC created Space Tango, a for-profit enterprise, to commercialize the work.

Much of that work involves designing and building CubeSats, which are 10-centimeter cubes packed with off-the-shelf technology and powered by solar panels.

When launched from a rocket or the International Space Station, the satellites take advantage of space’s zero-gravity environment to gather a variety of scientific and commercial research data. Other CubeSat uses range from tracking ships at sea to making high-resolution photographs of Earth for mapping and surveillance. Almost all of Kentucky Space’s hardware and software is designed and built in Kentucky.

“We’re trying to develop a home-grown set of technologies that can integrate into spacecraft,” Malphrus said. “There’s an incredible variety of applications people have thought of, but we don’t even know what all the applications are yet.”

Another Kentucky Space product is the DM processor, whose development was funded by the Defense Department. It is a supercomputer — 20 times more powerful than a desktop computer — that can be built into a small satellite for such applications as on-board processing of high-resolution images. It weighs about 12 ounces.

Kentucky Space, Morehead and UK have had several experiments on the Space Shuttle and International Space Station. They also have built two research platforms on the space station and are developing more.

“We’re clearly one of the global leaders in trying to work on and design this next generation of spacecraft,” Kimel said. “Our specialty is building small machines quickly.”

Kentucky Space also recently announced a partnership with FedEx Corp. to develop a Space Solutions division to help global clients safely move payloads between laboratories and launch sites.

Morehead’s space studies program now has about 60 students. This fall, it will start its first master’s degree program, in space systems engineering, with 10 students. While many are from Eastern Kentucky, about one-third of the students are internationals who sought out Morehead, Malphrus said.

140724KySpace0103Kentucky Space and Space Tango are small, with five contract employees and one full-time engineer: Twyman Clements, 27, a UK engineering graduate who grew up on a farm near Bardstown. But Kimel said a half-dozen small companies already have been created out of Kentucky Space’s work, and he said he thinks that is just the beginning.

Spacecraft might seem an unlikely Kentucky product, but it’s not. Aerospace products have become Kentucky’s largest export, edging out motor vehicles and parts, according to the state Cabinet for Economic Development. A diverse array of aerospace exports totaled $5.6 billion last year — 22 percent of the value of all Kentucky exports.

Economic development strategies are changing from the old model of luring corporate branch plants with jobs that are here today and may be gone tomorrow when incentives run out or cheaper labor is found elsewhere. There is more long-lasting economic impact in creating specialized knowledge and an environment where entrepreneurs can use it to create high-value companies.

“This is not just about education; we’re growing a new industry here,” Kimel said. “If we don’t commercialize this technology, these students won’t stay here, because there won’t be opportunities for them.

“I’m not one of these people who thinks everyone should stay in Kentucky; they shouldn’t,” he added. “But for those that have the opportunity and want to, great. And we want people to come here from other places who are interested in this industry. We want them to say this is the place to be.”

Eastern Kentucky has a long way to go in creating the workforce to support many high-tech companies, but Kentucky Space shows what is possible. It isn’t the only answer for the region’s economic challenges, but neither are low-wage factories and call centers.

“Kentucky historically has done an excellent job of putting together other people’s ideas,” Kimel said. “What we need to start doing is building our own ideas, because that’s where the value proposition is. We have to find things that we can do better than anybody else.”

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Plan would create 200 miles of multi-use trails in Scott County

July 15, 2014

legacyGabe Schmuck, 9, left, Nate Schmuck, 5, and their father, Paul Schmuck, rode on the Legacy Trail in Lexington in 2012. Photo by Mark Ashley.

GEORGETOWN — The popular Legacy Trail out of Lexington now stops just short of the Scott County line at the Kentucky Horse Park. But what is now the end of the trail could someday be just the beginning.

Scott County leaders have worked for three years with the regional visioning group Bluegrass Tomorrow and the National Park Service to develop an ambitious plan for Kentucky’s most extensive trails network. Plans call for 200 miles of biking, hiking, horseback riding and waterway trails throughout Scott County.

“Our vision is that this is going to eventually branch out and include the whole region,” said John Simpson, director of Georgetown/Scott County Tourism.

The Bluegrass Bike Hike Horseback Trails Alliance unveiled a draft of the proposed master plan Monday at the monthly meeting of the Georgetown/Scott County Chamber of Commerce.

Alliance leaders hope to finish the plan by the end of the year and begin negotiating property easements, designing trails, raising private money and applying for federal transportation grants.

Some trails would be shared, with bike/pedestrian and horse paths side-by-side, but most would be separate. The plan was developed with help from interested residents during a June 2013 design workshop, and the alliance is eager for more public participation.

At this point, there are no cost estimates, but such a trails network would run well into the millions of dollars. Still, many officials think it would be a great investment.

“This has the potential to have a tremendous impact, economically and socially, on the community,” said Russell Clark, the alliance’s National Park Service representative.

Clark and Rob Rumpke, president of Bluegrass Tomorrow, cited the economic impact that trail systems have had on Damascus, Va., a once-depressed logging town where hikers and mountain bikers now flock to the Appalachian and Virginia Creeper trails; Loveland, Ohio; and Indiana’s Brown County.

The trails alliance has more than a dozen partners, including the cities of Georgetown, Sadieville and Lexington; Scott County Fiscal Court; the state tourism department; the Horse Park; the Kentucky Horse Council; Georgetown College; the University of Kentucky College of Agriculture; the Bluegrass Area Development District; St. Joseph Health System/Kentucky One; and several horseback-riding and cycling groups.

Rumpke said horse trails should be especially popular, given the number of local horse enthusiasts and the tourists who come to Central Kentucky to see horse farms and events.

“We’re the horse capital of the world; why are there so few horseback-riding facilities?” he asked. “This is an opportunity to address that.”

The first step in the plan is to extend the Legacy Trail 6.6 miles from the horse park to Georgetown. Christie Robinson chairs a steering committee that commissioned an engineering feasibility study, which was recently completed. The study estimates the total cost at about $8.3 million, including trailheads, bathrooms and other amenities. It could be built in four phases as money became available.

Georgetown recently awarded the Legacy Trail committee $25,000 as a match to a $100,000 federal grant that it will apply for this fall, Robinson said. That would move the design process forward.

Claude Christensen, mayor of Sadieville, said he sees the trail system as an opportunity to revitalize his town of 303 people at the northern tip of Scott County. Sadieville is applying for “trail town” status with state tourism officials. But it needs trails.

“It’s huge for Sadieville,” Christensen said. “It makes us a destination.”

Simpson, the tourism official, said many Scott County business and government leaders support trails development because they have seen the economic benefit that road cycling enthusiasts have had in the area.

The Bluegrass Cycling Club’s annual Horsey Hundred ride each Memorial Day weekend is based at Georgetown College. This year, more than 2,000 cyclists came from all over North America to ride Central Kentucky’s scenic back roads on marked routes ranging from 25 to 104 miles.

Georgetown hosted a downtown party for the cyclists, who filled Georgetown College’s residence halls and more than half of the 1,100 local motel rooms. A big group from Ontario, Canada, came for an entire week of cycling before the event.

An extensive trail network, along with Central Kentucky’s world-class cycling roads, could make Georgetown a major recreation destination, Simpson said.

“We’re at the starting point of something that could be phenomenal,” he said. “It could bring thousands of tourists to our community and enhance our own quality of life.”


Developing local food economy is focus of new Lexington job

June 16, 2014

As a child growing up in Gratz Park, Ashton Potter Wright often walked downtown to the Lexington Farmers Market with her parents, who were early owners in Good Foods Co-op.

“They instilled in me that it’s important to know where your food comes from and to support local growers and business owners,” she said. “It makes sense to me, and I hope to help make it make sense to other people.”

That will be a big part of Wright’s new job as Lexington’s first local food coordinator.

Wright1Wright, 29, started earlier this month in the pilot position, where she will work with Central Kentucky farmers to help them find markets for their meat and produce. She also will help educate and create more individual and institutional demand for locally produced food.

“With local food, you’re not only helping the economy and the environment, but you’re getting great, healthy, delicious food that’s grown by somebody nearby,” she said. “We’re keeping dollars in the region and improving the health of the region.”

Wright will be part of the city’s Office of Economic Development. The job is funded through private grants, agriculture development funds and $25,000 from the city. Steve Kay, an at-large member of the Urban County Council, worked for several years to create the job.

“It’s exciting, but it’s a bit overwhelming,” Wright said. “There’s so much that can be done and so much that needs to be done.”

Wright brings a strong background to the job. After graduating from Henry Clay High School and Rhodes College in Memphis, she worked at the Centers for Disease Control in Atlanta and earned a master’s degree in public health from Georgia State University while her husband, Jonathan Wright, went to Emory University’s law school.

Last fall, Wright finished her doctorate in public health at UK and went back to Atlanta for a fellowship at the CDC. She also worked in Lee County, helping create a program where local farmers provided food for schools.

Kay assembled an advisory committee a couple of years ago that includes a who’s who of local food players, including Nancy Cox, the new dean of the University of Kentucky College of Agriculture; chef and restaurant entrepreneur Ouita Michel; youth nutrition activist Anita Courtney and Mac Stone of Elmwood Stock Farm, a national leader in the organic farming movement.

Wright said she will begin by working closely with the advisory committee to assess needs and opportunities, both immediate and long-term.

“Everyone has an opinion about what needs to be done,” she said. “So these first few months are going to be spent listening and understanding.”

There also are good ideas to be gleaned in Louisville, where Sarah Fritschner, a former food editor at the Washington Post and The Courier-Journal, has been the farm-to-table coordinator since 2010.

“There’s a lot to be learned from her and also from cities across the country that are doing similar work,” Wright said, citing Baltimore and Asheville, N.C., as examples.

Wright sees opportunities to educate young people about the importance of healthier eating and local food. Wright previously worked with Courtney on her Tweens Coalition and Better Bites youth nutrition programs, as well as her effort to bring fresh produce to two small markets in low-income Lexington neighborhoods.

Much of Wright’s job will involve connecting local farmers to schools, hospitals and other institutions that could purchase their food. She said public schools already buy some local food, but could do much more if they had the right help.

Eventually, she hopes to develop more infrastructure for the regional food economy. Those include more local meat processing plants, such as Marksbury Farms in Danville, as well as aggregation, processing and distribution facilities for local vegetables and fruits.

Also, the region needs more commercial kitchens where farmers can take what they grow and turn it into value-added products, such as preserves and sauces, and process food for consumption off-season. Wright also is intrigued by the use of Internet technology to connect producers with consumers.

“People have been interested in local food here for years,” she said. “But there are so many people and groups working on it here now that the time feels really right for the next big step.”


Kentucky needs leadership for change, not the politics of fear

June 8, 2014

I have had mixed emotions since the U.S. Environmental Protection Agency announced its long-awaited plan to reduce coal-fired power plant pollution, setting a goal to cut carbon dioxide emissions 30 percent by 2030 from 2005 levels.

I felt happy that my government was finally taking some action to fight manmade climate change, which threatens humanity’s safety, prosperity and future.

But I felt sad as I watched a bipartisan majority of Kentucky politicians fall all over each other to condemn this long-overdue action. Pandering to public fear may be good politics, but, in this case, it is an irresponsible failure of leadership.

SenateCandidatesRepublican Sens. Mitch McConnell and Rand Paul called the EPA’s plan illegal and vowed to repeal it. (It is legal, according to a 2007 U.S. Supreme Court ruling.)

Not to be outdone, McConnell’s Democratic challenger, Allison Lundergan Grimes, launched an ad blitz repeating the coal industry’s “war on coal” talking points.

“The Obama administration has doubled down on its war on Kentucky coal jobs and coal families,” said another industry parrot, U.S. Rep. Andy Barr, a Republican from Lexington.

State House Speaker Greg Stumbo, a Democrat from Prestonsburg, called the pollution-cutting plan “a dumb-ass policy.”

Let us review the facts:

An overwhelming majority of climate scientists think manmade carbon pollution is contributing significantly to climate change. We are already seeing the disastrous results: more frequent killer storms, droughts, shrinking glaciers and rising seas.

Public opinion polls show that a substantial majority of Americans, even in coal-dependent states, understand these realities and want stricter carbon limits.

In addition, health experts say the EPA plan will reduce cancer, heart disease and lung disease through fewer emissions of mercury, nitrogen oxide and sulfur dioxide. The American Lung Association says the plan will prevent as many as 4,000 premature deaths in its first year alone.

So why all the political nonsense? It’s simple: the coal, utility and business lobbies that fund these politicians’ campaigns will see their profits suffer, at least in the short term.

The coal industry’s disinformation campaign portrays the desire for cleaner air and water as a “war on coal.” In reality, there are two “wars” on coal, and environmental regulation has only a minor role in each.

The first “war” is one on coal-company profits. It is being waged largely by natural gas companies, whose fracking technology has produced cheaper energy and hurt coal sales. Solar, wind and other renewable energy sources pose another threat.

The second “war” is being waged by coal companies and their political allies against miners and their communities. Kentucky lost about 30,000 coal mining jobs between 1979 and 2006, mostly because of industry mechanization. Add to that a historic disregard for mine safety. Kentucky legislators recently cut the number of state safety inspections at mines from six per year to four.

It is worth noting that the EPA’s new rule could have hit Kentucky much harder had it not been for the coal-friendly administration of Gov. Steve Beshear, a Democrat. Energy Secretary Len Peters pushed a plan, which the EPA adopted, to give states flexibility in achieving carbon-reduction goals. It set different targets for each state. Kentucky will be required to cut power-plant emissions by 18 percent, much lower than the national average of 30 percent.

Kentucky now gets more than 90 percent of its electricity from coal. The state has some of the nation’s cheapest power because the true cost of coal mining and burning to our health and environment has never been reflected in the rates.

America is gradually moving away from coal toward cleaner energy sources. This will happen no matter how loud and long Kentucky politicians scream. Unless this state acts aggressively to develop alternative energy sources to eventually replace diminishing coal reserves, Kentucky will be left behind — again.

Entrenched business interests have always predicted that each new environmental regulation would destroy the economy. It has never happened. Instead, regulation has sparked innovation that created new jobs and economic opportunities and made America a healthier place to live.

More limits on pollution will raise electricity rates in the short term. But Kentuckians will be rewarded with better health, a less-damaged environment, more innovation and a stronger economy in the future.

Change is hard, but it is necessary. Forward-thinking business people and citizens must demand that our politicians stop pandering to fear and become the leaders we need to make this inevitable transition as painless as possible. A brighter future never comes to those who insist on living in the past.


Alltech’s business strategy is to embrace change, not fight it

May 20, 2014

Alltech1Alltech founder and president Pearse Lyons, left, presented the Humanitarian Award to Lopez Lomong at Alltech’s symposium Monday. Lomong was kidnapped by soldiers in his native Sudan at 6, but eventually became two-time Olympic runner. Photo by Tom Eblen

Nobody likes change — it’s human nature. Kentuckians seem especially averse to it, which is ironic considering our heritage.

Two centuries ago, the pioneering risk-takers who came to Kentucky seeking a better life were on the cutting edge of change in America. But their adventurous spirit was soon replaced by a cautious, conservative mindset.

Too many Kentuckians fear innovation, mistrust higher education, deny science and instinctively oppose new ideas and ways of doing things. That is one reason I attend the Alltech Symposium each May. It is always an eye-opener.

The 30th annual Alltech Symposium, which began Sunday and ends Wednesday, brought 1,700 people from 59 nations to Lexington Center. The theme was “What If?”

The discussions — simultaneously translated into four languages — revolved around a question no less audacious than how a world of 9 billion people will feed itself in the year 2050.

Alltech began in a suburban Lexington garage in 1980. The privately held animal nutrition, food and beverage company now has operations in 128 countries and annual sales of $1 billion. The company’s energetic founder and president, Pearse Lyons, who turns 70 in August, has set a sales goal of $4 billion through growth and acquisition during his lifetime.

Lyons is not a native Kentuckian, but perhaps the next closest thing: an Irishman. Alltech has been wildly successful because Lyons and his wife, Deirdre, have used their complementary skills to create a company that tries to embody the strengths and avoid the shortcomings of both cultures.

“Sometimes I think we’re our own worst enemies,” Lyons said, noting that both Kentuckians and the Irish have often been stereotyped as backward.

Alltech’s often-contrarian approach to business is about problem-solving through science, education, innovation, sustainability, creativity, challenging boundaries and anticipating global needs. “We’ve built a business by walking the road less traveled,” he said.

Alltech’s science is based on natural ingredients and processes. That has been controversial, because many corporate agriculture models rely heavily on artificial chemicals. But the strategy has become a plus with consumers who worry about food safety and nutrition.

Lyons said Alltech’s stand against the routine use of antibiotics in food animals has cost it customers, but is simply common sense in light of scientific evidence of the problems caused by antibiotic abuse. “My mum used to say common sense is the rarest sense out there,” he said.

Lyons is equally forthright about the scientific evidence of man’s role in climate change. “The carbon footprint issue is with us to stay,” he said. “Those of us who embrace it will be successful.”

Because he spends so much time traveling around the world, Lyons brings valuable international perspectives to an often insular state. That has made him more open to new ideas, and, he thinks, more cognizant than most Kentuckians of the state’s unrealized economic potential.

Kentucky is already a globally recognized brand, thanks to Kentucky Fried Chicken, the Kentucky Derby and bourbon whiskey. Lyons thinks it is the best state brand in the nation. “The name that resonates, the name that people like, is Kentucky,” he said. “It’s open. It’s warm.”

That has certainly been true for Kentucky Ale, which Alltech began producing in Lexington in 2006 and is now sold in 20 states and four other countries.

Alltech this week unveiled big plans for Eastern Kentucky: a brewery and distillery in Pikeville, whose waste heat and grain byproducts will then be used for raising fish in tanks. Alltech has been studying this at its Nicholasville headquarters.

“The question is this: What are we going to do when we can’t get all those fish from the oceans?” he said. “Where poultry is today, many predict the aquaculture industry will be in five, 10, 15 years, and we propose to be right out there.”

Alltech plans to produce trout, chickens and eggs in Eastern Kentucky and brand them to the region. “We don’t need to be in Kentucky,” Lyons said, noting that 98 percent of Alltech’s revenues come from outside the state. “But Kentucky’s still a great place to do business.”

Alltech embraces big problems, Lyons said, because the flip side of every problem is a business opportunity for solving it.

“I’m a scientist at the end of the day, and scientists look for solutions,” he said. “If we put our heads in the sand, we’re never going to achieve anything.”


Once Kentucky’s biggest cash crop, it’s high time hemp returned

May 19, 2014

hempknightPhotographer Thomas A. Knight took this photo of hemp stacks in the early 1900s. 

 

Kentucky Agriculture Commissioner James Comer last week sued the Drug Enforcement Administration, Customs and Border Protection and the Justice Department, seeking the release of 250 pounds of Italian hemp seeds for planting in Kentucky test plots this spring.

Kentucky is one of 10 states seeking to once again legalize the production of industrial hemp, which has been banned since World War II because of resemblance to its botanical cousin, marijuana.

Hemp has only a fraction of the chemical THC that makes marijuana narcotic, so it has virtually no drug value. But states seeking to re-establish America’s industrial hemp industry have met stiff resistance from the DEA.

Hemp was Central Kentucky’s biggest cash crop during most of the 19th century, because the plant’s oil, seeds and fibers were very useful for such things as rope, fabric and even paper. But after prohibitionists began outlawing marijuana in the 1930s, hemp fell victim to guilt by association.

Could hemp become a big Kentucky industry again? Probably not. Should it be allowed to make a comeback as part of agriculture diversification? Absolutely. Banning hemp has never made much sense. And since nearly half the states have acted to decriminalize or allow limited marijuana use, it makes even less sense.

 


War on Poverty vets see lessons for today’s Appalachia reformers

May 13, 2014

BEREA — The War on Poverty’s 50th anniversary has reignited debate about its effect on places such as Eastern Kentucky, where President Lyndon B. Johnson famously came to launch the “war” from a Martin County laborer’s front porch.

Like the real wars in Vietnam, Iraq and Afghanistan, it is easy to declare the War on Poverty a costly failure. America still has plenty of poor people. Eastern Kentucky continues to lag the nation in education, health care and job prospects beyond a boom-and-bust coal industry where little of the wealth ever trickles down.

Declaring failure is easy, but it isn’t accurate. The National Bureau of Economic Research recently published a study that estimated without the government anti-poverty programs since 1967, the nation’s poverty rate would have been 15 percentage points higher in 2012.

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Bob Shaffer of Berea holds a photo of himself with a mule presented to the Republican Governors Conference in Lexington in May 1969 by Wanita Bain, Knox County, Secretary of the Kentucky Poor People’ s Coalition, which he organized and advised. Photos by Tom Eblen

Eastern Kentucky is significantly better off than it was a half-century ago, thanks largely to government-funded infrastructure and assistance. But the question remains: Why wasn’t the War on Poverty more successful?

I recently posed the question to two aging veterans of that war. Their observations offer food for thought as Gov. Steve Beshear and U.S. Rep. Hal Rogers ramp up their Shaping Our Appalachian Region (SOAR) initiative, the latest in a long series of efforts to “fix” Eastern Kentucky’s economy.

Robert Shaffer, 84, is retired in Berea. In 1963, he accompanied his father to the March on Washington for Jobs and Freedom and was inspired to public service by the Rev. Martin Luther King Jr.’s “I have a dream” speech.

The next year, after the Economic Opportunity Act was passed, Shaffer began working with poor people in new community action agencies in his native New Jersey. He was recruited to Washington, but wanted to work on the front lines instead. After reading Harry Caudill’s book,Night Comes to the Cumberlands, he told federal officials, “I’ll take the job if you’ll send me to Kentucky.”

Hollis West, 83, is retired in Lexington. A coal miner’s son from southern Illinois, he served in the Air Force and went to college on the G.I. Bill. He worked in community action and job-training agencies in Michigan, New York and West Virginia before coming to Knox County in 1965.

Although the War on Poverty is often portrayed as welfare, Shaffer said, “It wasn’t welfare. It was using social services for economic development and ownership.”

West and Shaffer worked with community groups to start small, worker-owned companies, mostly in furniture, crafts and garment-making and train workers to do those jobs. They said they created hundreds of jobs, although many were later lost as U.S. manufacturing jobs moved overseas.

Their biggest accomplishment was creating Job Start Corp. in 1968. It evolved into Kentucky Highlands Investment Corp., which has created more than 18,000 jobs and is recognized as one of the most enduring legacies of the War on Poverty.

“I think we made a significant change in parts of Eastern Kentucky,” West said. “I brought the toughness, and Bob brought the brains.”

Toughness was important. West said he often traveled with an armed bodyguard. A key principle of War on Poverty programs was that poor people should have a voice in decisions that affected them. Local politicians and power brokers saw that as a threat.

Hollis West

Hollis West

“These people weren’t used to other people having money to work with that they didn’t control,” Shaffer said. “It was a pretty hostile environment.”

Shaffer said Gov. Louie B. Nunn stymied War on Poverty efforts and tried to get West fired. Officials resisted giving poor people a voice on the Area Development District boards that allocated federal money. Then, as now, many of those boards were controlled by good ol’ boy networks.

Shaffer and West think the War on Poverty would have had a bigger impact had Richard Nixon, a Republican, not been elected president in 1968 and scuttled his Democratic predecessor’s programs. But the ideas behind the War on Poverty still have value today, they said.

“You’re never going to change the culture of Appalachia until you have a legitimate organization of the poor and their allies,” Shaffer said. “The majority of the people in the mountains are just as capable as anyone else if they have the same education and economic opportunities as anyone else.”

What are the lessons of the War on Poverty? Not that poverty can’t be overcome, or that government efforts won’t work. It is that change will never come from people with a vested interest in the status quo.


Pencils of Promise founder keynotes Lexington conference

May 12, 2014

Adam Braun was a Brown University student planning a career in high finance when he was inspired by a film to travel to developing countries to see poverty firsthand.

In India, he asked a boy he encountered what he wanted most. The reply stunned him: “a pencil.” Braun gave the boy his pencil and never forgot how his face lit up.

140513Emerge0002AThat encounter, and others on Braun’s semester abroad, made him realize the power of education to change lives. He returned home with a goal to gain enough financial expertise to start an organization to raise money to build a school overseas.

Since 2009, Pencils of Promise has partnered with communities and governments to build 206 schools in Latin America, the Caribbean, Africa and Asia. It also trains teachers and covers other school costs. Braun’s book, The Promise of a Pencil, released this spring, was a New York Times best-seller.

Braun will be in Lexington on Thursday to be the keynote speaker at Emerge 14, a one-day conference organized by Commerce Lexington to engage young professionals in the community.

Other speakers include Josh Nadzam, founder of Lexington’s Manchester Bidwell Replication Project, which aims to create a version of a Pittsburgh program that fights poverty through arts education and job training; Whit Hiler and Griffin Van Meter of the state pride organization Kentucky for Kentucky; and Matt Jones, founder of Kentucky Sports Radio.

Breakout session topics include “turning your passion into reality,” “leveraging the community to grow your business,” “pursuing elected leadership,” “developing your best professional self” and “growing a movement.”

The conference will be at the Hilton Lexington/Downtown hotel, with breakout sessions at nearby locations.

The idea for the conference, which is planned as an annual event, came from Commerce Lexington’s Leadership Visit last year to Omaha, Neb., which hosts a similar conference, where Braun has been one of its most popular speakers.

Not only are Braun’s personal story and accomplishments inspiring, but New York-based Pencils of Promise represents a new business model for doing good that is gaining attention from many young professionals.

In many ways it resembles a traditional nonprofit organization, but Pencils of Promise uses for-profit business strategies to accomplish its goals. All donations go to programs, and overhead, which accounts for less than 20 percent of the organization’s budget, comes from other sources. All finances are disclosed online at Pencilsofpromise.org.

IF YOU GO

Emerge 14
One-day conference organized by Commerce Lexington to engage young professionals in the community, featuring keynote speaker Adam Braun of Pencils of Promise, Josh Nadzam of the Manchester Bidwell Replication Project, Whit Hiler and Griffin Van Meter of Kentucky for Kentucky, Matt Jones of Kentucky Sports Radio, Megan Smith of Cake + Whiskey magazine, Carey Smith of Big Ass Solutions, Colmon Elridge, assistant to Gov. Steve Beshear, and more.

When: 8 a.m.-6 p.m. May 15. Schedule available at Emergebluegrass.com.

Where: Hilton Lexington/Downtown hotel, 369 West Vine Street.

Fee: $99, includes breakfast and lunch. Register and learn more at Emergebluegrass.com

 

 


Mayer may not become mayor, but he has some good ideas

May 10, 2014

What makes a good mayor? Someone with both good ideas and the political and management skills to make them happen. Jim Gray has demonstrated both qualities during his four-year term.

Gray has two challengers for re-election in the May 20 primary: Anthany Beatty, who became a University of Kentucky vice president after retiring as Lexington’s police chief, and Danny Mayer, an English professor at Bluegrass Community and Technical College who for four years published the community newspaper North of Center.

Beatty has demonstrated good management and political skills, but he doesn’t seem to have many ideas. His campaign website and public statements have offered only vague generalities about city issues and what he would do as mayor.

Mayer has little political or management experience, but he has developed a detailed issues platform. While some of his proposals are controversial, there are good ideas there worth discussing.

The Gray and Beatty campaigns have raised well into six figures. Mayer said he has taken only three contributions totaling $250 and has loaned his campaign a few hundred more. He hasn’t even invested in yard signs, which he admits was a mistake, and is mostly campaigning door-to-door and online.

“A lot of my work has been trying to plan out alternative visions and ideas; I look at it as the end point of what I did with North of Center,” Mayer said. “But rather than just talking about what we are doing wrong, this was a way to flesh out a positive vision for the city.”

DannyMayer

Danny Mayer

Among Mayer’s proposals is a $15 hourly minimum wage for city employees and contractors, as Seattle is considering. He also wants to decriminalize marijuana use, which probably would require state rather than just city action. Both moves, he said, would strengthen low-income neighborhoods by putting more money in families’ pockets and fewer people in jail.

Mayer’s two main proposals are less controversial, and they make so much sense that they should be part of the election conversation whether or not he is the candidate who emerges from the primary to challenge Gray in November.

Mayer said that as mayor he would strategically invest in growing Lexington’s local food economy and developing the city’s “greenways” — abused and neglected urban streams and watersheds whose restoration could improve overall water quality, create recreational opportunities and provide paths for walkers and cyclists.

Lexington developed an extensive Greenways Master Plan in 2001, which was approved by the Planning Commission. But Mayer said too little has been done to implement and expand on that plan.

Under a consent decree with the U.S. Environmental Protection Agency, Lexington must spend hundreds of millions of dollars to correct long-ignored water quality problems caused by suburban development. That provides the perfect opportunity to make the most of our natural greenways, Mayer said.

Greenway development could help connect Lexington’s fragmented trail system, making it easier for suburban residents to get around on foot or bike. Modest infrastructure investments at key connecting points around Lexington could make a big difference, he said.

More walking and biking trails, along with investment in Lextran to expand routes and service hours would reduce traffic congestion and air pollution and increase mobility for low-income residents.

Mayer also said that as mayor he would budget $1 million for investments in local food, which has been growing in popularity. Growth in that sector will be important as climate change and rising transportation costs erode the nation’s industrial agriculture models of the past few decades.

Nutritious local food also fights obesity and other health problems that are contributing to rising health care costs, Mayer noted.

Investment in local food projects would create work for the growing number of UK and BCTC students graduating with sustainable agriculture expertise, as well as lower-skilled people who need jobs. It also would allow non-profit organizations such as Seedleaf and Food Chain to build on work they already are doing.

Some unused city park land could be used for expanding greenway trails or producing food, Mayer said, and the city could do more to promote backyard and community gardens.

“I see that as a 21st century economy,” he said. “These markets and segments are growing, but we haven’t talked about how we could legitimately scale them up. You just need models and an emphasis, like we did with Victory Gardens in the 1940s.”


Lexington, Louisville business people to seek ideas in Charlotte

April 7, 2014

College basketball rivalry aside, Lexington and Louisville are working more cooperatively than ever before. The latest example is the upcoming “leadership visit” to Charlotte by members of Commerce Lexington and Greater Louisville Inc.

More than 200 business and civic leaders from Lexington and Louisville will travel to Charlotte June 1-3 to meet with their counterparts there. It is the second time leaders from Kentucky’s two largest cities have made a joint trip; the first was to Pittsburgh in 2010.

This trip’s emphasis will be regional economic development, said Bob Quick, president of Commerce Lexington.

“Charlotte is a place where a lot of regional initiatives occur,” he said, explaining the choice of destination. “We think there could be some good lessons in how they operate as a region. It’s built into their culture.”

Other potential lessons in Charlotte include workforce development initiatives at Central Piedmont Community College, which has forged partnerships with area industries for technical training, much as Bluegrass Community and Technical College has done with Toyota Motor Manufacturing Co. and others, Quick said.

“They fully grasp what a complete educational system you have to have” to create a growing, dynamic regional economy, Quick said.

Another thing Charlotte has that Lexington and Louisville would like to have: authority to ask voters for a local-option sales tax for specific city improvement projects. Government and business leaders in Lexington and Louisville are generally supportive of such taxing authority, but Kentucky’s rural-dominated General Assembly has consistently balked at granting that authority.

While Lexington and Louisville leaders say they have learned a lot from annual study visits to other cities, they are always quick to point out that every city is different and no city is perfect.

Charlotte, for example, has had some recent leadership problems Lexington and Louisville have been fortunate to avoid. Charlotte Mayor Patrick Cannon was arrested by the FBI in late March on bribery and corruption charges. Undercover agents pretending to be investors say they made almost $50,000 in payoffs to the mayor, a 47-year-old Democrat, in return for his help with the city’s permit and zoning process. An indictment is expected later this month.

Quick said Commerce Lexington and Greater Louisville Inc. have worked closely together on economic initiatives for years. But cooperation between the cities has grown considerably since the 2010 trip to Pittsburgh.

Another big reason for the more cooperative atmosphere, Quick said, is the close personal and working relationship between the cities’ mayors, Jim Gray of Lexington and Greg Fischer of Louisville. Both are Democrats and former chief executives of family-owned businesses.

“It’s unprecedented to have the level of trust we now have between Kentucky’s two largest cities,” Quick said.

The most notable cooperative venture is BEAM, the Bluegrass Economic Advancement Movement. It seeks to foster growth in high-tech manufacturing in both cities and the counties along Interstate 64 between them, primarily through focused recruiting and workforce development efforts.

This marks the 75th year that Lexington chamber leaders have made this annual trip to other cities. And while some good local-improvement ideas and momentum have come from the trips, most people go because it is easily the best local networking opportunity of the year.

Where else can you spend almost three days uninterrupted with the mayor, council members and other top leaders in local government and educational institutions, as well as senior executives of local banks, businesses and nonprofit organizations?

There are still spaces available for those wanting to attend. The cost is $2,200 per person ($200 less if you share a hotel room, and another $300 less if you find your own transportation to and from Charlotte rather than taking one of the chartered jets from Lexington and Louisville.)

Four $1,000 scholarships will be given to “emerging leaders” who want to attend. The deadline for applications was to have been Monday, but it has been extended to April 18.

Scholarship candidates must be ages 21-39 and have demonstrated community involvement, including leadership positions in organizations, said Amy Carrington, Commerce Lexington’s leadership development director.

Registration and more information: Commercelexington.com.

 


Ex-UK athlete hopes to replicate anti-poverty program in Lexington

April 6, 2014

mbcStudent art is displayed in the lobby of Manchester Bidwell Center’s performing arts hall in Pittsburgh. Visitors from Commerce Lexington toured the center as part of their trip to Pittsburgh in May 2010. Photos by Tom Eblen

Josh Nadzam grew up as the only child of a single mother in a small Pennsylvania town. He hoped to escape poverty, if only he could run fast enough.

But university track coaches weren’t impressed. The only school that showed any interest in him was the University of Kentucky, which allowed Nadzam to join its team as a walk-on.

“I just wanted somebody to believe in me,” he said. “Not even open the door; just unlock it.”

Nadzam borrowed all the money he could and moved to Lexington in 2007. He ran fast enough to earn a full track scholarship after his freshman year.

NadzamHe became a talented cross-country competitor, but his biggest Southeastern Conference honors were for academics and community service. While earning bachelor’s and master’s degrees in social work, he co-founded a drive that collected thousands of used shoes for charity.

“I grew up in the projects, a very bad situation, so my dream has always been to help people in similar situations,” said Nadzam, 25, recalling how eight childhood friends have died of heroin overdoses.

With his mother’s encouragement, Nadzam became an avid reader. “It opened my eyes to the fact that there was something different,” he said. “The way I ‘got out’ was sports, but that won’t work for most people.”

Then he read Bill Strickland’s book, Make the Impossible Possible. Strickland started the Manchester Bidwell Center in Pittsburgh, an award-winning program that fights poverty through arts education for young people and job-training for adults.

“I was just blown away,” Nadzam said. “It was like learning about a cure for overcoming a disease.”

Strickland, 66, grew up in Pittsburgh’s poor Manchester neighborhood and had his life changed by a high-school ceramics teacher. Art’s transformative power led him to start the Manchester Craftsmen’s Guild, an after-school youth arts program, while he was still a college student. Success there led him to be asked in 1971 to run the Bidwell Training Center for displaced workers.

Since then, Manchester Bidwell has blossomed into a major Pittsburgh institution. It has been successfully replicated with locally owned and run centers in eight other cities, which tailor their job-training programs to local markets and needs.

Nadzam drove to Pittsburgh to see the center and met Strickland. Then he drove to see the replications in Cincinnati, Cleveland and Grand Rapids, Mich. “I wondered if I could pull this off in Lexington,” he said.

He began early last year gathering supporters for a Manchester Bidwell Replication Project. Then he discovered that others had the same idea. Strickland had inspired several Lexington leaders when he spoke at the Creative Cities Summit here in April 2010. The next month, Commerce Lexington visited Pittsburgh, heard Strickland speak and toured Manchester Bidwell.

The Pittsburgh center’s youth arts program includes a ceramics shop, concert hall and commercial recording studio. Adult job-training programs tailored to Pittsburgh produce lab technicians, horticulture specialists and high-end chefs.

A Lexington replication effort never got off the ground in 2010. That was largely because of the expensive, methodical process Strickland insists upon to make sure replication centers succeed. It requires an initial fundraising effort of about $150,000 for a feasibility study to determine local job-training needs and opportunities, partners and buildings that could be renovated for facilities.

Nadzam and Tom Curren, a longtime manufacturing executive who took early retirement, now co-chair a Lexington steering committee of experienced business people and social work professionals. Strickland flew here last May for a kickoff event at the Lyric Theatre. The event was moved from a meeting room to the large theater when 200 people showed up.

So far, the group has raised $38,000 through the Blue Grass Community Foundation to show potential corporate funders that project organizers are serious.

“This isn’t the answer to everything,” Curren said of the Manchester Bidwell approach. “But it’s a program with a proven track record that would really add to the other things going on in town.”

When Nadzam isn’t at his full-time job at GreenHouse 17, formerly known as the Bluegrass Domestic Violence Program, or running, he is focused on fundraising and friend-raising for his Manchester Bidwell dream.

“I want it to be as collaborative as possible, but this is very personal to me,” Nadzam said. “When you get out of poverty, it’s like surviving an avalanche. This would be my way of thanking Lexington for taking me in.”

 


Creating a city where people want to move, natives want to stay

March 29, 2014

In a 21st-century economy where jobs often follow people instead of the other way around, what assets help a city prosper?

That question has led researchers, civic and business leaders to focus on things previously considered nice but not essential: arts, culture and a sense of place that make people feel engaged and invested in their community.

Anne Gadwa Nicodemus, a dance choreographer-turned-urban planning researcher, has studied one variation on this phenomenon called “creative placemaking.”

She was here Thursday to speak at the annual Lafayette Seminar in Public Issues put on by the University of Kentucky’s Gaines Center for the Humanities. It was co-sponsored by LexArts, the McBrayer law firm, the North Limestone Community Development Corp. and Commerce Lexington.

Nicodemus has researched the economic and social vibrancy created when various community sectors — government, business, non-profit organizations and citizens groups — come together to use arts and culture to strategically shape the physical and social character of a city.

That kind of development has been happening organically in many parts of Lexington in recent years. “Lexington has become a place that people are excited about,” said Steve Kay, an Urban County council member. “This conversation couldn’t have happened five years ago.”

Three recent examples were discussed at the seminar. The first is Walker Properties’ redevelopment of National Avenue, a former light industrial street east of downtown, into a mixed-use retail, restaurant and arts district.

The second was Jefferson Street, which has blossomed into a restaurant district thanks to early investments by Wine + Market, Stella’s Deli and West Sixth Brewery. The brewery’s four partners played a big role in that, because they chose to buy a 90,000-square-foot former bread factory, now called the Bread Box. One of their challenges was figuring out what to do with all of that space.

Rather than just try to rent to other commercial tenants, Ben Self said, they wanted to foster a community of people, businesses and organizations that shared their values and vision for creating a vibrant community. He added that city regulators helped the partners cut through red tape to make it all work.

In addition to the brewery and tap room, the Bread Box now houses a non-profit bike shop, a coffee roaster, artist studios, a restaurant and an urban agriculture non-profit that grows fish and greens for the restaurant. “It just felt like the right way to do it,” Self said. “It’s a development that has a heart to it.”

Later this year, the Bread Box also will house an expanded Plantory, which has co-working space for non-profit organizations. The Plantory has outgrown its space in the Community Ventures Corp. building at East Third Street and Midland Avenue.

A third example in Lexington is the North Limestone neighborhood, where young entrepreneurs have been restoring century-old homes and commercial buildings and starting new businesses.

The North Limestone Community Development Corp. recently won a $425,000 grant from Artplace, a consortium of private foundations, banks and federal agencies that is investing in creative placemaking efforts around the country.

The money will be used to begin renovation of a former factory and 40 old shotgun houses to create studios and homes for artists and craftsmen. The idea is to turn a neighborhood liability — old buildings needing rehabilitation and occupants— into a cultural and economic asset.

An important key to creative placemaking is that, in addition to economic activity, it creates a sense of place that people find attractive. It makes a city a place where natives want to stay or return, and others want to move to.

“What we’re seeing now is a tying together of the economic and the sentimental,” said Jeff Fugate, president of the Downtown Development Authority. “That’s what’s exciting.”

For creative placemaking to reach its full potential, civic and business leaders must make sure public policy supports it and strategic thinking helps small initiatives add up to something bigger.

“It’s about bringing disparate groups together to make something special happen,” LexArts President Jim Clark said. “There is no cookie-cutter way to make a creative place. But you recognize it when you see it.”


If SOAR wants to get off the ground, it needs diverse leadership

March 25, 2014

When Gov. Steve Beshear and Rep. Hal Rogers launched their Shaping Our Appalachian Region (SOAR) project last year, they promised it would be different.

They said SOAR would succeed in bringing economic vitality and diversity to long-troubled Eastern Kentucky, where so many past efforts have failed, because it would seek new ideas and leadership from a broader representation of the region’s people.

So far, it isn’t looking much different. Beshear and Rogers announced a leadership team Monday to guide the SOAR process. The list raised eyebrows not so much because of who was included as who was excluded, which was pretty much everybody outside Eastern Kentucky’s establishment power structure.

“It was a missed opportunity, for sure,” said Justin Maxson, president of the Berea-based Mountain Association for Community Development, which has been working on innovative economic development strategies in Central Appalachia since 1976.

SOAR_logoMaxson would seem a logical choice for SOAR’s 15-member executive committee or to chair one of its 10 working groups. But the only person with ties to MACED on the SOAR leadership team is Haley McCoy of Jackson Energy, an electric cooperative in Jackson County, who also happens to serve on MACED’s board.

Maxson praised McCoy’s selection, and that of SOAR’s interim executive director, Chuck Fluharty, president of the Rural Policy Research Institute. “He understands that a region needs a diverse set of economic development strategies,” Maxson said of Fluharty. “But it’s unclear what his role will be.”

If Beshear and Rogers really want new ideas, MACED would be a good place to look. “We’re not afraid to say hard things,” Maxson said. “Most of the solutions the region needs are not going to be easy.”

Excluded from SOAR’s leadership is anyone from Kentuckians for the Commonwealth, a citizens group with more than 8,000 members statewide. KFTC has been working effectively in coal-dominated Eastern Kentucky since 1981.

“I’m trying to be nice about this, but everything they do, it seems like it’s the same old, same old bunch,” said Carl Shoupe of Harlan, a KFTC executive committee member. “We’re a little bit too progressive for them, maybe.”

In addition to McCoy, SOAR’s executive committee, co-chaired by Beshear and Rogers, includes coal executive Jim Booth of Inez; Pikeville banker Jean Hale; Rodney Hitch of Winchester, economic development manager for East Kentucky Power; entrepreneur Jim Host of Lexington; Tom Hunter of Washington, D.C., retired executive director of the federal Appalachian Regional Commission; Ashland lawyer Kim McCann; and Bob Mitchell of Corbin, Rogers’ former chief of staff and a board member of the Center for Rural Development that Rogers created in Somerset.

Four elected officials are ex-officio members: House Speaker Greg Stumbo of Floyd County; Senate President Robert Stivers of Clay County; and county judge-executives Albey Brock of Bell County and Doc Hardin of Magoffin County.

Former Gov. Paul Patton, 76, of Pikeville, leads the Futures Forum committee “responsible for framing and advancing the long-term vision of the region.”

Among the 10 people appointed to chair working groups is Phil Osborne, a Lexington public relations executive. He chairs the Tourism, Including Natural Resources, Arts & Heritage group. Osborne is a talented marketing executive, but his appointment to head that group sends a strong message of its own.

Osborne was a key leader in Faces of Coal, the coal industry’s multimillion-dollar propaganda campaign to block federal enforcement of environmental laws related to mining. The “war on coal” divisiveness that campaign fueled in the region is one of many obstacles SOAR must overcome.

In an interview, Shoupe of KFTC read key passages from the report by SOAR’s consultant on takeaways from a public forum Dec. 9 in Pikeville, where more than 1,500 people gathered to launch the initiative:

“People appreciate the governor and congressman, but fear entrenched interests will wait them out. … Folks want the dialogue deepened and broadened. … Next generation leadership is essential. The young men and women of this region must feel a stronger sense of SOAR engagement than is currently evident, moving forward. Specific leadership attention to this dimension of governance and program design and delivery is so critical to SOAR’s mission achievement.”

“And what did they do?” Shoupe said of the leadership appointments. “They did everything backwards.”

Maxson and Shoupe said they have been assured that SOAR working groups will listen to everyone’s ideas and perspectives. That’s not good enough, and Beshear and Rogers should know it.

If they want new ideas and the broad public support and credibility SOAR needs to succeed, they must be willing to give some seats at the decision-making table to people besides Eastern Kentucky’s Old Guard. Otherwise, SOAR won’t be any different than the failed efforts of the past.

 


Inequality will keep growing as long as big money controls politics

March 24, 2014

The gap between America’s rich and poor has been growing for nearly four decades. Many people worry about what this could mean for our economy, our society — and even the survival of our republic.

This trend is a stark reversal of the four previous decades, and it has sparked a lot of populist anger, from Occupy Wall Street on the left to the Tea Party on the right.

Consider, for example, a recent study that found incomes in Kentucky rose 19.9 percent from 1979-2007, but that 48.8 percent of that money went to the top 1 percent of earners. According to the Economic Policy Institute, that 1 percent saw their incomes rise an average of 105.1 percent, while the average income of the other 99 percent of Kentuckians grew only 11.2 percent.

Democrats have made inequality and economic opportunity their main campaign theme. Republicans are talking about it, too, but offering very different solutions for rebuilding the American middle class.

“Economic and Political Inequality in the United States” is the title of a conference March 27-28 at the University of Kentucky featuring several nationally recognized speakers. The event is free and open to the public. Details at: Debrassocialstimulus.com.

The keynote speaker is Pulitzer Prize-winning columnist Ellen Goodman, whose talk is titled “Inequality: Working Moms, Designated Daughters, and the Risks of Caregiving.” She speaks at 7:30 p.m. March 27 at Memorial Hall.

The next day, beginning at 9:30 a.m. in the Student Center’s Worsham Theater, speakers include longtime UK history professor Ron Eller and economist Dean Baker, co-director of the Center for Economic and Policy research in Washington. Topics include inequality in Appalachia and how the “culture wars” have influenced these trends.

I will be interested to hear what the speakers have to say. I will be especially interested to see if they can go beyond lamenting the problems and offer solutions that could have some chance of success in America’s increasingly toxic political environment.

For most of human history, stark inequality was the rule, contributing to both the rise and fall of countless empires. This began to change in the late 1600s with the Enlightenment, which led to creation of the representative democracies now found in most developed nations.

Representative democracy led to government-regulated capitalism and a flowering of technology and prosperity that, while uneven, was far better than anything that preceded it.

In this country, coming out of the Great Depression and World War II, it led to a dramatic narrowing of the wealth gap and an accompanying rise in economic and social opportunity and mobility that made America the envy of the world.

Wealthy industrialists realized that a prosperous middle class was needed to buy the goods they manufactured. A rising tide really did lift all boats. But research shows that America now lags many other nations in economic opportunity and mobility.

The spread of capitalism has lessened inequality in much of the world, although, as Pope Francis has consistently reminded us since assuming leadership of the Roman Catholic church a year ago, not nearly as much as it should.

While the global economy has been good for some overseas workers, it has cost many American jobs. It also has created a worldwide “race to the bottom” for labor costs, while making financial elites fabulously wealthy.

The collapse of communism seemed to show that, over the long haul, capitalism works best when it goes hand-in-hand with representative democracy. Or does it? China’s economic success since the 1980s under a ruling-class dictatorship raises some troubling questions.

Those questions are even more troubling amid the rising power of big-money influence in American politics, especially since the U.S. Supreme Court’s 2010 Citizens United ruling opened the floodgates. There seems to be a new Golden Rule: those with the gold can make the rules.

While conservatives now worry about oppressive government, liberals worry about oppressive capitalism and corporate-controlled government. The rise of inequality since the 1970s has mirrored the rising clout of big business and high finance and the decline of organized labor.

Until the balance of power shifts back toward what it was a generation ago, it is hard to imagine that the balance of wealth will, either.  


Voters should push back against pro-pollution politicians

February 17, 2014

Politicians say a lot of dumb things. What’s puzzling, though, is how much we listen to them.

Some of the dumbest things politicians say these days involve criticism of the U.S. Environmental Protection Agency and other state and federal environmental watchdogs. These politicians are indignant that “regulators” are enforcing the laws they and their predecessors passed to keep air fit to breathe and water safe to drink.

The Democrats and Republicans who passed those environmental laws and created the watchdog agencies during the last half of the 20th century were smart enough to realize that pollution spoils our nation, makes us sick and, in the long run, is bad for business.

So why are many politicians today fighting for more pollution? It’s really very simple: Companies pay them to.

If you look at these politicians’ campaign funds, you will see big contributions from polluters: coal companies, chemical companies, electric utilities and other corporations that make more money when they can push the environmental costs of their businesses off on the public.

The politicians who complain loudest about environmental regulation tend to get the most money from polluters. Funny how it works that way.

When these politicians can’t repeal or ignore environmental laws and regulations, they argue that they should be enforced by state rather than federal agencies. That’s easy to understand, too: the smaller the watchdog, the easier it is to muzzle.

Federal prosecutors last week launched a criminal investigation into the relationship between North Carolina regulators and Duke Energy after 82,000 tons of coal ash and 27 million gallons of contaminated water spilled into the Dan River on Feb. 2. It was the third-largest coal ash spill in U.S. history.

The Associated Press reported last week that North Carolina regulators repeatedly thwarted attempts by environmental groups to use the federal Clean Water Act to force Duke to clean up leaky coal ash dumps near its power plants.

Two recent incidents in West Virginia, another state where politicians are frequently hostile to environmental regulation, also has raised questions about cozy political relationships with polluters.

The water supply for more than 300,000 people in nine counties around Charleston hasn’t been right since Jan. 9. That’s when storage tanks owned by Freedom Industries leaked as much as 7,500 gallons of coal-processing chemicals into the Elk River.

Freedom Industries has filed for bankruptcy protection to avoid lawsuits. The spill will cost taxpayers millions of dollars.

Then, last Tuesday, a pipe ruptured at a Patriot Coal processing plant about 18 miles from where the chemical spill occurred. It sent more than 100,000 gallons of coal and chemical slurry into Fields Creek, a Kanawha River tributary. State officials said the spill “wiped out” six miles of stream, causing “severe, adverse environmental impact.”

We’ve heard these stories many times before. Remember the 2008 coal ash pond collapse in East Tennessee that released 5 million cubic yards of ash and cost $1.2 billion to clean up? Or the spill in Martin County, Ky., in 2000 that sent 306,000 gallons of coal sludge into two tributaries of the Tug Fork River? And there are many more smaller incidents that never make headlines.

Does this sound like environmental regulation that is too strict, or too lax?

Many Kentucky politicians like to complain about the “war on coal” — a phrase coined for a well-financed industry propaganda campaign. But the real war is being waged against Kentucky’s land, water, air and public health by companies that want more freedom to blast mountains, bury streams and release toxins into the environment.

Many people support polluters because they buy into the argument that you can’t have both a strong economy and a clean environment.

Sure, sometimes environmental regulation does cost jobs and raise costs in the short run. But history has shown that it has always been good for the economy in the long run because it creates a healthier environment and sparks job-creating innovation. Perhaps the best example is government fuel-efficiency standards for automobiles, which over several decades have given us better cars and cleaner air.

How long will some politicians keep fighting for more pollution? As long as polluters keep paying them to. And as long as we keep listening to and re-electing them.


Could Eastern Kentucky’s coalfields learn from Eastern Germany?

January 25, 2014

140123Doering12

An old mine in eastern Germany is used for a film screening.  The metal construction is the retooled front end of an overburden spreader that will function as a pier once the lake in the former mining pit has filled.  Photo by Frank Doering

 

Coal is still mined in this region, but the industry employs only a fraction of the people it did for more than a century. Huge tracts of damaged land must be reclaimed. Leaders struggle to build a new economy, create jobs and keep young people from leaving.

Eastern Kentucky? No, eastern Germany.

Frank Doering, a German-born freelance photographer who has lived in Lexington for nearly two decades, spent three years documenting the land and people of eastern Germany’s Lausitz region.

Except for the flat topography, this area the size of Rhode Island has much in common with the coal-rich mountains of Central Appalachia. And it could offer a few ideas for Kentucky leaders grappling with the same issues, Doering said.

Coalscapes, an exhibit of Doering’s compelling photographs, opened last Thursday at Institute 193, the small, nonprofit gallery at 193 N. Limestone. The free show continues through Feb. 26.

140123FrankDoering0006Doering, 55, grew up in western Germany and earned degrees in German literature, history and philosophy. He came to this country to earn a Ph.D. at Princeton University, where he met his wife, Wallis Miller, an architectural historian.

They lived for several years in Europe, where Doering worked as a cognitive science researcher at the École Polytechnique in Paris. Miller was hired in 1994 by the University of Kentucky, where she is an associate professor of architecture.

Doering taught philosophy at Johns Hopkins University and the University of Cincinnati before quitting in 2000 to pursue photography, a hobby since his youth. He now works on personal projects between commercial commissions.

The Coalscapes project grew out of a 2004 trip to Canada, where the couple visited a huge, open-pit asbestos mine.

“It was visually overwhelming,” Doering said. “I’ve always been interested in the industrial underpinnings of society and the scale on which it happens. This was a chilling landscape because it was all manmade.”

The experience made Doering want to photograph large surface mines in Eastern Kentucky, but the mountain topography and lack of access made that difficult.

When Miller made a research trip to Berlin, Doering discovered the Lausitz region, less than two hours away. It had been an industrial powerhouse of the former East Germany, but state-owned industries there all but collapsed after German reunification in 1990.

Only three of 17 former mines still operate there, he said, but they are vast. More than 136 villages have been obliterated by mining, and more are targeted by Germany’s decades-long mine-planning process.

The region has some of the world’s richest deposits of lignite coal, used primarily to fuel nearby electric power plants. Despite Germany’s ambitious commitments to solar and wind energy, it uses a lot of coal and will for decades.

Still, Lausitz is economically depressed. Since the Berlin Wall fell, many former miners have been employed by the government, which has spent billions to dismantle old industrial plants and reclaim former surface mines.

“Many people there feel they have gotten the short end of the stick since reunification,” Doering said, adding that the region has a stigma within Germany similar to what Appalachia has in this country. “There is a distrust of outsiders.”

But the more trips Doering made to Lausitz, where he rented an apartment, the more locals opened up to him and the better his pictures got. The project was supported by a grant from the Graham Foundation in Chicago.

Although initially attracted by the raw landscape, he said, “The project took on much more of a human side. The industrial history and the people’s life stories are unbelievably interesting.”

Doering’s photographs document efforts to restore old mine pits as lakes that will attract tourists. Former mines have even been used for concerts and film screenings, and even public art installations.

There is also a push for “industrial” tourism — with mining companies building observation platforms so visitors can watch the mining process, which Doering said is fascinating because it is done on such a super-human scale. For example, the conveyor assemblies that remove soil above the coal seams are twice as long as the Eiffel Tower is tall.

“People from different backgrounds come and look at stuff they wouldn’t normally look at,” he said. “It starts some unexpected conversations” about balancing energy needs and the environment — conversations that rarely happen in an Appalachia polarized by “war on coal” rhetoric.

One metal fabricating company, which used to make industrial buildings, now makes innovative housing for locals and vacation rentals. It reminds Doering of the UK College of Design’s efforts to retool idled houseboat factories near Somerset to make energy-efficient modular housing.

Doering said his photos have been used in Germany to both document and promote the sparsely populated region, where leaders realize they must rebuild to high standards. “It had better be cutting-edge stuff, because that’s the only way to attract outsiders who might pour some money into the area,” he said.

Doering said he doesn’t know enough about Eastern Kentucky to say what lessons its leaders might learn from Germany. But he said the keys to progress there have been locals and outsiders overcoming traditional fault lines to find creative solutions.

“They have forged some odd alliances,” he said. “They have found a way to work together and get stuff done.”

 

If you go

  • What: Coalscapes, a photography exhibit
  • Where: Institute 193, 193 N. Limestone.
  • When: Now until Feb. 26. The gallery is open 11 a.m.-6 p.m., Wednesday through Saturday, and by appointment. Admission is free.
  • More information: Institute193.org, Coalscapes.com, Doeringphoto.com
Read more here: http://www.kentucky.com/2014/01/25/3052745/tom-eblen-eastern-germany-eastern.html#storylink=cpy

 

Click on each photo to see larger image and read caption:


Higher minimum wage would be a step toward economic justice

January 20, 2014

On this national holiday honoring the legacy of the Rev. Martin Luther King Jr., it is worth remembering that he focused on more than racial justice. The next big issue on his agenda was economic justice.

King was murdered in 1968 while in Memphis to help striking sanitation workers get better pay and treatment. At the 1963 March on Washington for Jobs and Freedom, where King delivered his “I have a Dream” speech, one of the key issues was raising the minimum wage enough to lift many workers out of poverty.

While America has made great strides in racial equality and opportunity, it finds itself in a similar economic situation to what those marchers faced 50 years ago. The income of the wealthiest Americans has soared over the past three decades, while middle-class wages have stagnated and many low-wage workers have fallen into poverty.

The gap between the rich and everyone else is wider than it has been for a century. There are many reasons for this, from manufacturers moving overseas for cheap labor to the decline of unions and tax code changes that favor non-wage income, most of which goes to wealthier people.

The minimum wage hasn’t risen in five years, and low-wage workers’ earnings have continually fallen behind inflation. The Economic Policy Institute estimates that 28 million workers — the bottom 20 percent by income — earn less than $10 an hour.

The minimum wage of $1 to $1.25 an hour that marchers in 1963 said was too little would now, with inflation, be worth more than today’s minimum wage of $7.25. The $2 minimum wage the marchers were seeking would now be worth more than $15.

President Obama favors a plan by Congressional Democrats to raise the minimum wage to $10.10 over three years, with future increases automatically tied to the rate of inflation.

At least seven Nobel Prize-winning economists and eight former presidents of the American Economic Association have endorsed the move. But the idea has met opposition from Congressional Republicans, whose economic agenda can best be described as Robin Hood in reverse.

Assuming political gridlock keeps Congress from acting, the General Assembly should adopt a similar proposal by House Speaker Greg Stumbo, D-Prestonsburg, to gradually raise Kentucky’s minimum wage to $10.10.

Opponents of raising the minimum wage argue that it causes many companies to hire fewer workers, but there is little evidence to prove that. A number of studies by respected economists show little job loss from minimum-wage increases.

Another argument is that higher minimum wages lead to higher consumer prices. But studies show price increases, when they occur at all, amount to only a fraction of the wage increase.

Another argument is that few people actually earn the minimum wage, and many of them are teenagers. After years of high unemployment, many workers at or slightly above the minimum wage are adults supporting families.

Increasing the minimum wage tends to have a ripple effect on slightly higher wage rates at the bottom of pay scales, and that also would be a good thing.

What I find most galling is that many low-wage workers at some of the nation’s biggest and most profitable corporations earn so little that they qualify for public assistance.

Bloomberg News estimated last month that Walmart employees get $2.66 billion in government assistance each year because of their low wages. University researchers in Illinois and California reported last year that Kentucky’s 32,000 frontline fast-food workers make such low wages that 46 percent qualify for public assistance that costs taxpayers $115 million.

Why should taxpayers be subsidizing profitable companies? Shifting some of the burden back onto employers in the form of a higher minimum wage only seems fair.

In addition to being good for low-wage workers, a higher minimum wage would help the whole economy. Low-income people spend a much greater share of what they earn than do wealthier people. So, when they have more money to spend, it helps the whole economy and generates more tax revenues.

The minimum wage is long overdue for an increase. If Congress won’t do it, Kentucky lawmakers should.

As King once said: “The time is always right to do what’s right.”