Artists must learn business skills to make a living from their art

November 17, 2014

lackyJohn Lackey at his studio at North Limestone and Sixth streets. Photo by Tom Eblen

 

Lexington is starting to become a city where an artist can earn a living, but it requires almost as much focus on business as art.

Successful artists tell me they have had to learn strategy, salesmanship, client management and finance to earn money from their passion. Most of all, they have had to be flexible entrepreneurs, willing to try new things and see where they lead.

I talked about these issues last week with John Lackey, an independent artist in Lexington for a dozen years. Since 2010, he has operated Homegrown Press Studio & Gallery at the corner of Limestone and Sixth streets.

Lackey is best known for his intricate block prints and colorful acrylic paintings of Kentucky landscapes. They are fanciful scenes from nature, filled with swirling clouds and curly trees that almost seem to dance.

But Lackey does a lot more, both out of passion and necessity. He has done logos and other commercial art for businesses, including Alfalfa restaurant, where he once worked, and North Lime Coffee and Donuts, which shares his studio building. He also has produced more than a dozen concert posters for his favorite band, Wilco.

Lackey, this month, was commissioned by Kroger to paint an outside mural for its new Euclid Avenue store. The five interconnected, 12-by-7-foot panels along Marquis Avenue will depict “the trees with the most personality in Woodland Park, with human activity in the background,” he said.

He also is getting into filmmaking, after years of playing with time-lapse and animation photography. Lackey has an Indiegogo.com campaign that runs through Tuesday to raise money for a full-length movie. It will be set in Lexington’s northside and focus on themes of community and sustainability.

Lackey learned figurative art and print-making at the University of Kentucky, but some of his most useful professional skills were acquired during several years of hiatus between his studies, when he worked at lumber yards and car dealerships.

“I learned a lot that I still use today when I sold cars,” he said, including negotiating skills and how to read customers.

Lackey spent 14 years as a graphic artist for two Lexington TV stations, where he learned more about art and deadlines. He was then able to begin building an independent art career, thanks to an understanding wife with a steady paycheck.

Early on, he realized the work is a lot like being a home-improvement contractor. Customers who commission work have ideas, but often don’t know exactly what they want. That’s where listening skills and artistry come in.

Lackey said that being willing to try new things has helped him both get jobs and stretch artistically.

“At first, I didn’t do a lot of saying no, because I needed the money, and it pushed me out of my comfort zone,” he said. “It’s good if you have different things you like to do in art.”

The Kentucky Arts Council helped Lackey expose his work to potential clients. After being included in a show at the Governor’s Mansion, he was chosen to create the 2011 prizes for the Governor’s Award in the Arts. The council also helped him get a commission for four seasonal landscape paintings that now hang in the Kentucky Chamber of Commerce’s board room in Frankfort.

Many artists advise against doing free work to get exposure. While Lackey generally agrees, he follows his instinct on some projects where the payoff isn’t obvious.

For example, as a Wilco fan, he engaged others on the band’s website and volunteered to do artwork for a charity event. The band liked it and hired him to create concert posters.

The head of the Clyde’s restaurant chain around Washington, D.C., also is a Wilco fan. He saw Lackey’s posters and hired him to do artwork for the restaurants. The Clyde’s work was seen by Virginia-based Potter’s Craft Cider, which hired him to design its logo and labels. Such jobs can be vital income bridges between fine art projects.

Other free artwork has enriched his life, if not his bank account. Lackey has done more than 60 posters for the Holler Poet’s series at Al’s Bar, across East Sixth Street from his studio, where he occasionally reads his own poetry. Each poster became an opportunity to experiment with new techniques that have improved his work.

“For me, one of the benefits of being an artist is not having to do the same thing twice,” he said. “It keeps your brain regenerating.”


Kentucky development leaders showcase high-tech innovation

September 30, 2014

gamersJason Mize, left, a partner in the Lexington company Really Big Spiders, demonstrated its online game, “Tales from the Strange Universe,” to Jonathan Gay of the Kentucky Innovation Network. Lexington is now a hotbed for electronic game development. Photo by Tom Eblen

 

Who knew Lexington was becoming a hotbed for electronic game development?

That’s exactly why Commerce Lexington and the state Cabinet for Economic Development brought seven freelance journalists here to visit with local game developers at Awesome Inc., the tech business incubator on Main Street.

At a reception Tuesday, they were to meet with other local business leaders, including Carey Smith, CEO of Big Ass Solutions, the giant fan company.

Earlier in the day, some of the journalists toured Northern Kentucky University’s College of Informatics, a new program that focuses on data science applications. Others went to Morehead State University to see the Space Science Center. Later this week, most will be covering the annual Idea Festival in Louisville.

“We just wanted to show them that from small business to big you can do it here in Lexington,” said Gina Greathouse, Commerce Lexington’s senior vice president for economic development.

Lexington has seven full-fledged companies developing electronic and online games and several programmers and artists who work on them part-time, said John Meister. He is a board member of RunJumpDev, a local organization that helps game developers network and promote their products.

Meister also is a partner in one of those companies, Super Soul. After working 10 years as a software engineer, he teamed up with artist Richie Hoagland to develop the Xbox game Compromised in 2012. Their company will soon release Speak Easy, a 1920s-themed fighting game for PlayStation 4.

Meister said game development has been growing in Lexington because many technology workers play games and become interested in making them. Lexington’s low cost of living helps, because it is much cheaper to develop games here than in many other cities with large high-tech communities.

While he wasn’t that interested in gaming, Terry Troy, a Cleveland-based journalist who writes for Scientific American magazine, said he came away from the tour with many story ideas. He was especially impressed by Morehead’s Space Science Center, which has become a national leader in developing small space satellites for research.

“Kentucky is a state of dichotomies; you have the Creation Museum and then over in Morehead is the cutting edge of satellite technology,” Troy said. “I knew there was a lot of innovation in the state, but you just don’t realize how much until you see it. I’m impressed.”


Lessons for Appalachia in Wales’ recovery from coal’s collapse

September 29, 2014

SouthWalesThe Tower Colliery near the village of Hirwaun, in Glamorgan, South Wales, in 2009. Tower Colliery was the oldest continuously worked deep-coal mine in the United Kingdom, and possibly the world. Photo by Kirsty Wigglesworth/Associated Press. 

 

People in the remote hills and valleys were subsistence farmers before the mining industry came. For generations afterward, King Coal provided most of the decent jobs and dominated almost every aspect of life.

But mechanization gradually eliminated tens of thousands of mining jobs. When economic and political conditions suddenly changed, most of the coal industry shut down. Communities were left with high unemployment, a ravaged landscape and an uncertain future.

This is the story of Eastern Kentucky. It also is the story of South Wales.

These two regions separated by the Atlantic Ocean share many traits and experiences. Community leaders working to create a post-coal economy in Central Appalachia think there are lessons to be learned from Wales, which has been dealing with many of the same challenges for three decades.

Two longtime coal community leaders from Wales will be in Eastern Kentucky on Oct. 7 to speak about their experiences. The 7 p.m. program at Appalshop Theatre, 91 Madison Avenue in Whitesburg, is free and open to the public.

Hywel Francis and his wife, Mair, are no strangers to Kentucky. They have been coming here for years as part of a community exchange program started in the 1970s by Helen Matthews Lewis, a well-known Appalachian scholar and activist.

“The interest between these two areas has been there for a long time, but it has really picked up as we’ve seen the sudden decline of mining jobs here,” said Mimi Pickering of Appalshop. “We think this is an exciting opportunity for folks to talk with people from another place who have been though this.”

Francis is a member of the British Parliament, a college professor and labor historian. His wife is a founder of Dulais Opportunity for Voluntary Enterprise, known as the DOVE workshop, a women’s education and job-training organization.

South Wales was a few decades ahead of Central Appalachia, both in the development and collapse of its coal economy.

Beginning in the early 1800s, coal mines in South Wales fueled Britain’s industrial revolution and, in many ways, the British empire. At the industry’s peak just before World War I, more than 250,000 men labored in nearly 500 Welsh deep mines and open pits.

As in Appalachia, mechanization steadily reduced mine employment. After World War II, British mines were nationalized. In the mid-1980s, Prime Minister Margaret Thatcher closed unprofitable mines, sparking a bitter miners’ strike. The industry all but collapsed and 85,000 miners lost their jobs. Only a few hundred miners still dig coal in South Wales.

Tom Hansell, a filmmaker and professor at Appalachian State University in Boone, N.C., is finishing After Coal, a documentary comparing the experiences of coal communities in South Wales and Central Appalachia. He said it will be shown on Kentucky Educational Television next year or in 2016.

Hansell also helped organize a program in Elkhorn City two weeks ago about what Eastern Kentucky could learn from Wales’ tourism industry, which now employs 30,000 people.

A third forum will be at 6 p.m. on Oct. 28 at the Harlan campus of Southeastern Kentucky Community and Technical College. Richard Davies of College Merthyr Tydfil in Wales will lead a conversation about the role of youth and the arts in preserving vibrant coalfield communities.

While working on his film, Hansell said he made three trips to Wales. He noted that some of its circumstances are different than in Central Appalachia.

Because Welsh mines were owned by the government, laid-off miners got good severance payments to help them start businesses or train for new jobs. Britain also has a stronger social safety net than the United States, including a public health care system.

But Hansell said there is one smart thing Britain did that the United States could emulate: the government invested heavily in environmental reclamation, cleaning up the mess from generations of coal mining.

“There were jobs created with that, but more importantly it provided a foundation for future economic development,” he said.

Another good strategy: community funds have been created around major industrial investments, such as a wind turbine farm built by a Swedish company. The funds are similar in some ways to Kentucky’s coal severance tax, but transparently managed by local community boards rather than state and local politicians.

Wales has a focus on entrepreneurship and small-business development, which organizations such as Kentucky Highlands Investment Corp. have done here. Everyone realizes that the future is lots of small employers rather than a few big ones, Hansell said.

“It would be misleading to say that Wales has solved all their economic problems,” he said, noting that unemployment remains high and many people in former mining communities commute to jobs in coastal cities. “But towns have found ways to survive and find creative ways to re-invent themselves.”


Concerns about militarized police ignore bigger, underlying issues

September 27, 2014

Should Andy Taylor and Barney Fife be equipped like Rambo?

That has been a much-debated topic since police in Ferguson, Mo., responded with paramilitary aggressiveness to protesters after one of their white officers shot and killed a black teenager.

The situation focused public attention on the U.S. Defense Department’s 1033 program, which has given away hundreds of millions of dollars worth of “surplus” military equipment to state and local police forces, whether they need it or not.

Kentucky’s House Local Government Committee held a hearing last week on this issue. The 1033 program has furnished 33,000 military weapons and supplies, valued at more than $44 million, to Kentucky police agencies over the past decade.

That includes the Lexington Police Department’s two helicopters, hundreds of automatic rifles for the Kentucky State Police and a $689,000 mine-resistant vehicle for the Owensboro Police Department. And you know who is paying to buy, operate and take care of all these goodies. You are.

This trend raises many issues, but I haven’t seen some of the biggest ones discussed.

Access to this kind of firepower only increases the chances for abuse of power and tragedy among badly managed police forces. But problems such as those in Ferguson have more to do with what is in officers’ hearts than what is in their hands. Bull Connor’s Birmingham cops needed only fire hoses to show their moral bankruptcy in the 1960s.

Besides, I understand why police officers want and sometimes need military-style weapons. Thanks to the NRA and other gun-rights radicals, any Tom, Dick or lunatic now has easy access to military-style weapons, and many think they have a constitutional right to flaunt them in public.

It is no wonder the FBI reported last week that the number of mass shootings has increased dramatically in recent years. Authorities studied 160 shootings that killed or wounded 1,000 people, many of which occurred in schools or businesses. In one-fourth of those cases, the shooter committed suicide before police arrived.

Do we really have more crazy people than in the past? Or is it simply that society’s gun lust has made it easier for them to inflict maximum carnage? Until the United States is mature enough to enact common-sense gun control measures, police will sometimes need serious firepower to keep themselves and the public safe.

But the issues go much deeper. When I read about the Defense Department doling out all of this “surplus” equipment, I wonder why they have it all to give away.

As Dwight Eisenhower was leaving the presidency in 1961, he gave a famous farewell speech that warned about the corrupting influence he saw in the rise of America’s “military industrial complex.”

Eisenhower, a Republican and the greatest general of World War II, was no wild-eyed pacifist. But he clearly saw what was happening.

“The potential for the disastrous rise of misplaced power exists and will persist,” Eisenhower warned. “Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together.”

Eisenhower’s fears have been realized, and the 1033 program is just a small example.

The International Institute for Strategic Studies in 2012 estimated U.S. military spending at $645 billion, more than half the government’s discretionary spending. It was 40 percent of the world’s total military spending — more than six times China’s $102 billion and 10 times Russia’s $59 billion.

Stories of wasteful, unnecessary and even fraudulent military spending are legion. In an unholy alliance with corporate “defense” contractors, Congress continues to appropriate billions for high-tech planes, ships, weapons systems and equipment the military doesn’t need and may never use.

In another speech, in 1952, Eisenhower said, “Every gun that is made, every warship launched, every rocket signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed.”

So the next time your congressman tells you we can’t afford better health care, better schools and better infrastructure, you will know why. That $689,000 mine-resistant vehicle in Owensboro is only the tip of the iceberg.


UK seminar will focus on challenges of local food economy

September 22, 2014

Creating strong local food economies has become a trend, if not a fad, all over the country. But the prospects in Kentucky seem more promising than in many places.

Kentucky’s fertile soil, temperate climate, abundant water, central location and dispersed population have made the state an agriculture powerhouse for more than two centuries.

Since the collapse of the tobacco economy, more Kentuckians have been exploring ways to recreate and reinvent local food systems like those that prevailed before World War II.

But local food is not just an issue of local economics and self-sufficiency.

It is often more nutritious than food grown in huge quantities and shipped great distances. That’s a big issue as America struggles with an obesity epidemic, lifestyle diseases such as diabetes and soaring health care costs. And local food also just tastes better.

But there are big challenges, from processing facilities to distribution networks. The biggest challenge is this: how can locally grown food be both profitable for farmers and affordable for consumers, especially those with low incomes?

Those questions are at the heart of this year’s Lafayette Seminar in Public Issues, an annual program sponsored by the University of Kentucky’s Gaines Center for the Humanities. The seminar will explore these issues in three programs over the next three weeks, all of which are free and open to the public.

The seminar’s keynote speaker at 5:30 p.m. Wednesday at the Lyric Theatre is Robert Egger, who has spent 25 years feeding and providing food-related job training to poor people in Washington, D.C. and Los Angeles. His talk is called, “Revealing the Power of Food.”

As a young nightclub manager, Egger volunteered at what he found to be a well-intentioned but inefficient soup kitchen for homeless people in Washington, D.C. The experience prompted him to start D.C. Central Kitchen in January 1989 by getting a refrigerated van, picking up food left over from President George H.W. Bush’s inauguration and delivering it to local shelters.

The non-profit organization uses food donated by hospitality businesses and farms to feed hungry people and train poor people for food-related jobs. During 24 years as president of D.C. Central Kitchen, Egger helped start more than 60 similar community kitchens around the country.

Egger recently moved to Los Angeles to start LA Kitchen, which recovers fresh fruit and vegetables for use in a culinary arts job training program for men and women coming out of foster care or prison. He is author of the 2004 book, Begging for Change: The Dollars and Sense of Making Nonprofits Responsive, Efficient and Rewarding For All.

The seminar’s second session, at 5:30 p.m. on Oct. 1 at the Lyric Theatre, is a panel discussion called “Whose Farm to Whose Table?” It focuses on increasing access to local food in Central Kentucky’s underserved communities.

Panelists are community garden activist Jim Embry; Mac Stone, co-owner of Elmwood Stock Farm and a founder of the Kentucky Proud program; Karyn Moskowitz of New Roots Inc. and the Fresh Stop Project; and Ashton Potter Wright, Lexington government’s new local food coordinator. The panel will be moderated by Lexington food blogger and cookbook author Rona Roberts.

The final session, at 5:30 p.m. on Oct. 9 at UK’s W.T. Young Library, is a panel discussion moderated by former UK Agriculture dean Scott Smith. It will explore challenges of getting local food into universities, schools, businesses and other large institutions.

Panelists are Sarah Fritschner, Louisville’s local food coordinator; John-Mark Hack, executive director of the Midway-based Local Food Association; UK agriculture professor Lee Meyer; and Tony Parnigoni, Aramark Corp.’s regional vice president.

The topic is especially timely given UK’s controversial move to outsource its dining services to Aramark, the giant food corporation that is putting up $70 million to build new campus dining facilities.

Amid pressure from local food advocates, Aramark agreed to contribute $5 million to a new local food institute at UK and to purchase millions of dollars worth of food from Kentucky farmers.

“There has been a lot of buzz about local food and enhancing access to local food and capitalizing on the agricultural economy of the Bluegrass,” said Phil Harling, a UK history professor who recently became director of the Gaines Center. “We’re trying to bring together a bunch of different strands.”

If you go

  • UK’s Lafayette Seminar this year focuses on local food. All sessions are free and open to the public.

    5:30 p.m. Sept. 24, Lyric Theatre, 300 E. Third St. Robert Egger, founder of LA Kitchen and DC Central Kitchen, speaks on “Revealing the Power of Food.”

    5:30 p.m. Oct. 1, Lyric Theatre. Panel discussion about expanding access to local food.

    5:30 p.m. Oct. 9, W.T. Young Library, 401 Hilltop Ave. Panel discussion about challenges of getting local food into large institutions.


Labor Day a reminder of how working people are falling behind

August 31, 2014

Each year on Labor Day, I think of Myles Horton and something he once told me.

Horton started Tennessee’s Highlander Center in 1932 and spent most of his 84 years crusading for racial, environmental and economic justice. Rosa Parks called him, “the first white man I ever trusted.” He was a mentor to the Rev. Martin Luther King Jr.

During an interview in the 1980s, I asked Horton about his focus. “Working people,” he replied. “People who work for a living rather than own for a living.”

Labor Day celebrates Americans who work for a living, which is most of us. But each year there seems to be less to celebrate. Stock markets, corporate profits and executive compensation are hitting record highs. But at the other end of the spectrum, there aren’t enough good jobs for people who want to work.

There has been a lot of political talk about job creation, but a more important issue is the quality of jobs. More and more people are working hard at full-time or several part-time jobs and still can’t earn a decent living.

The Kentucky Center for Economic Policy, a non-profit think tank in Berea, issued a report last week that offers a gloomy assessment of recent trends. The full report is at Kypolicy.org, but here are some key findings:

Kentucky is experiencing job growth, but still needs 80,800 jobs to get back to the pre-recession 2007 level and accommodate population growth since then. Nearly one in four Kentucky part-time workers say they would rather have full-time jobs.

A lack of jobs has led to a decrease in the labor force as many Kentuckians have given up looking for work. One third of Kentucky’s unemployed people have been that way for a long time.

Wages are depressed by high unemployment levels. The late 1990s, when the unemployment rate was below 4 percent, was the only time in the past 35 years when Kentucky workers’ real wages actually grew.

The inflation-adjusted median wage has fallen 8 percent since 2001, and low-wage workers’ pay has fallen by 7 percent. Much of that is because higher-paying jobs that produce goods — especially in manufacturing — have been replaced by service jobs. Many service jobs pay low wages, which have been further depressed by a $7.25 hourly minimum wage that hasn’t been raised since 2009.

What are some solutions? First, the center recommends long-needed reform in Kentucky’s 1950s-era tax code to reflect the modern economy. That would provide more revenue for the state to invest in education and infrastructure, both of which would create jobs and spur economic development.

Another good idea the center recommends is raising the minimum wage. The value of the minimum wage has been eroded by inflation to the point that it is too little for an individual, much less a family, to live on.

What is especially obscene is huge, profitable corporations that pay workers so little they are eligible for public assistance. That leaves taxpayers subsidizing the profits of companies such as Wal-Mart and McDonald’s. Raising the minimum wage would save taxpayers money.

Opponents argue, as they always have, that increasing the minimum wage costs jobs and raises prices. But evidence shows those effects are minimal. A higher minimum wage, which also pushes up pay for workers just above it, puts more money in the pockets of people who will spend it, which boosts the economy.

Conservatives argue that Kentucky could spur economic growth by enacting anti-union laws and loosening environmental regulations. But that kind of growth does more harm than good. Pollution creates health problems and lowers the state’s quality of life. Anti-union laws boost business profits at the expense of workers.

Cynically named “right to work” laws make it harder for workers to organize for higher wages and better working conditions. States that enact those laws generally have lower average wages and more poor people than those that do not.

Similarly, repealing “prevailing wage” laws would make public construction projects cheaper, but only by taking money out of the pockets of the people doing the work.

It is no accident that the decline of the middle class since the 1970s has mirrored the decline of organized labor, which had a big role in creating the middle class in the first place. More and more of this nation’s wealth is rising to the top at the expense of everyone else.

Yes, we need to create more jobs. But we need to do it in ways that will improve the fortunes of people who work for a living and not just those who own for a living.

 


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.

140409WarOnPovVets0026A

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.”