Over 300 enterprise leaders gathered on the Kentucky Chamber’s Legislative Preview Convention in November to listen to from legislators and the governor on high points heading into the 2023 session.
Kentucky Chamber Senior Vice President of Public Affairs Kate Shanks kicked off the convention by recapping the successes of the 2022 legislative session, which included insurance policies to enhance Kentucky’s tax code, unemployment insurance coverage system, and entry to youngster care.
Well being Care
A panel centered on well being care had a dialog on the essential impression of the workforce scarcity on the business and what is going to occur if the scarcity just isn’t alleviated.
“Time is coming shortly if you may present as much as a hospital and there’s no one there to deal with you,” stated Sen. Ralph Alvarado.
Whereas discussing the contributing elements to the workforce scarcity, Alvarado said that Kentucky is now second within the nation for lawsuits per capita, which is a key cause Kentucky is struggling to draw suppliers.
Throughout a dialog on substance use dysfunction, Rep. Kim Moser stated “we’ve performed an excellent job of getting therapy into place.” Nevertheless, she stated Kentucky must do a greater job of getting individuals into therapy, pointing to providers like transportation which can be essential to eliminating boundaries for people that need assistance.
As Kentucky is ranked among the many lowest within the nation in lots of well being areas, panelists talked about the necessity to meet people the place they’re and the significance of offering incentives and entry for these people to hunt care.
Tax Reform
Following the monumental tax reform laws that was handed within the 2022 legislative session, a panel supplied an replace on how Home Invoice 8 will impression the Commonwealth, which begins in January 2023 with a discount in Kentucky’s revenue tax from 5 to 4.5 p.c.
Panelists talked about misconceptions that decreasing the revenue tax will create the necessity to elevate the gross sales tax. Rep. Brandon Reed stated that if Kentucky continues to maintain its funds reserve belief fund at an excellent stage, that won’t occur.
Home Appropriations and Income Committee Chair Jason Petrie stated each half level the revenue tax lowers, $600 million stays within the pockets of Kentuckians. He stated “these are merely investments” when speaking concerning the impression that has on native communities throughout the Commonwealth.
Referring to the most important bulletins occurring in numerous areas of the Commonwealth, Rep. Reed stated, “if we mix the alternatives which can be coming from the investments in our communities with these tax reforms, Kentucky is fixing to develop.”
On the subject of rising native communities, Rep. Michael Meredith mentioned the alternatives that may come from offering extra flexibility to native taxing authorities. Home Invoice 8 was designed to enrich native tax reform, he stated, and this subject is a part of the overarching effort to shift Kentucky to a broader, consumption-based tax system.
As for what comes subsequent, the panelists stated the legislature will take a methodical strategy, together with bringing many teams to the desk, to make sure the very best path ahead.
Training
Because the schooling system continues to recuperate from the coronavirus pandemic, a panel of lawmakers, together with Rep. Steve Riley, Rep. Josie Raymond, Rep. Killian Timoney, and Sen. Maxwell Clever mentioned the important thing areas that can assist enhance schooling in Kentucky in a panel moderated by Goodwill Industries of Kentucky President and CEO Amy Luttrell.
After a disaster occasion like COVID-19, Timoney stated it’s essential to do a wants evaluation—have a look at the info to seek out out what labored for some college students and what didn’t work for different college students. The panelists agreed that household involvement is important to pupil success, and that has been evident earlier than, throughout, and after the pandemic.
Rep. Raymond confused that bettering salaries is a key step to addressing Kentucky’s instructor scarcity and bettering outcomes for the schooling system and alongside the identical strains, Rep. Riley inspired a shift within the message round instructor recruitment and retention. “We’ve got to exit and say that is an honorable occupation, and you are able to do nice issues in it,” he stated.
Panelists mentioned the necessity to educate college students on all professions which can be obtainable to them and what it would take to get them there, whether or not that features a four-year faculty diploma, a certification, or one other type of postsecondary schooling.
Sen. Clever pointed to the revolutionary packages throughout Kentucky offering technical coaching and highlighted the efforts by chambers of commerce in selling these packages.
Packages like this will likely be key to filling the roles which can be coming from financial investments like the brand new Ford battery plant, stated Rep. Raymond.
When requested what Kentucky can do to make the state extra engaging, lawmakers stated it’s essential to proceed making the Commonwealth as business-friendly as attainable and benefit from Kentucky’s geographic benefit.
Chief Panel
Senate President Robert Stivers and Home Speaker David Osborne opened their dialog with Kentucky Chamber President and CEO Ashli Watts by recapping the outcomes of the 2022 election, which included development within the Republican majorities within the Home and Senate and failure of each constitutional amendments on the poll.
The legislative leaders mentioned the necessary work of the legislature through the 2022 particular session to supply reduction funds and assist the communities impacted by the historic tornadoes and flooding throughout Kentucky.
Osborne credited the work of Home A&R Chairman Petrie in crafting the state funds in such a approach that it gives alternatives for the legislature to cross laws just like the reduction package deal.
Equally, President Stivers counseled each Chairman Petrie and Senate A&R Chairman McDaniel for his or her mindset of, “let’s not funds for the subsequent yr; let’s funds for the subsequent 15 years.” Stivers stated that type of considering by the Basic Meeting will transfer Kentucky ahead.
Speaker Osborne pointed to the truth that 2023 would be the first time in 4 years that the legislature is not going to craft a funds, which can present time to concentrate on different priorities.
As for priorities for the upcoming session, the leaders touched on pro-business points together with tax reform, signature industries, sports activities wagering, and infrastructure.
President Stivers touted the tax reform package deal that was handed through the 2022 session and the impression it would have on Kentucky when competing with different states. This will likely be what companies and people will have a look at when selecting whether or not to find right here, he stated.
Freshman Faces
Through the lunch keynote, attendees had the chance to get to know a number of the new faces they are going to be seeing within the legislature.
Coming off the latest elections, Representatives-elect Amy Neighbors and Wade Williams and Senator-elect Amanda Bledsoe joined freshmen lawmakers Reps. Keturah Herron and Sarge Pollack to have some enjoyable discussing their marketing campaign slogans, what they realized from on the marketing campaign path, what tune that describes them, and far more.
Exterior of attending to know the brand new lawmakers personally, Rep. Pollock, who moderated the dialogue, requested every panelist what they wish to pursue throughout their time in workplace.
Bledsoe stated in Lexington, there are a lot of instances of individuals capturing firearms into occupied houses and vehicles. At present, that’s not a violent offense, and she or he wish to see laws to verify it’s. Herron shared related sentiments as she stated she will likely be spending most of her time engaged on methods to finish gun violence, probably even by working to construct an workplace much like the Workplace of Drug Management Coverage to make sure statewide efforts.
Neighbors and Williams each pointed to areas of well being care they wish to concentrate on, which embrace guaranteeing suppliers can entice, practice, and retain employees and deal with assaults in healthcare settings. Williams additionally said he would like to work on insurance policies that can assist the state turn out to be extra economically aggressive.
Wrapping up the session, Pollock gave the brand new lawmakers some lighthearted recommendation together with doing their homework on points, not explaining their vote greater than as soon as per week as a freshman, and extra.
Vitality and Atmosphere
A panel of power leaders together with Rep. Jim Gooch, Rep. Josh Branscum, and Kentucky Vitality and Atmosphere Cupboard Deputy Secretary John Lyons had a dialog on priorities to make sure Kentucky maintains reasonably priced and dependable power charges.
Chairman Gooch mentioned a coverage that has but to cross the Basic Meeting that may guarantee Kentucky doesn’t have extra stringent rules than the federal authorities. He additionally spoke a few new examine referring to various price mechanisms which may impression laws in addition to securitization.
Deputy Secretary Lyons stated their priorities embrace reauthorization of the hazardous waste charge, and a dam security program, amongst different plans to assist deal with growing older infrastructure throughout the Commonwealth.
Rep. Branscum stated that when rules are being reviewed, it is very important take into account whether or not the foundations are going to assist or harm companies. He additionally spoke about his laws associated to making sure photo voltaic initiatives are decommissioned appropriately and bonding is supplied to take action ought to they be wanted.
Dep. Sec. Lyons additionally talked concerning the EPA’s “Good Neighbor” regulation and expressed the cupboard’s concern. He additionally expressed concern concerning the EPA’s proposal to control PFAS as hazardous supplies.
Discussions additionally included constructing superior nuclear energy and issues concerning deregulating the electrical energy markets.
Catastrophe Response
Kentucky has skilled a major quantity of devastation over the past yr with tornados hitting western Kentucky in December 2021 and flooding in jap Kentucky this July.
A panel of lawmakers from the areas together with Rep. Richard Heath from western Kentucky and Reps. John Blanton and Angie Hatton together with Sen. Jason Howell from jap Kentucky mentioned the place issues stand of their areas in a dialogue moderated by AT&T Kentucky President Carlos Sanchez.
The lawmakers every pointed to the truth that their communities had been already coping with inhabitants loss or stagnant populations, and each jap and western Kentucky had seen their native leaders come collectively to construct on financial growth, tourism and different efforts earlier than the pure disasters hit and a lot was misplaced.
Discussing laws that has been handed to assist the communities, the legislators stated they wish to see the Basic Meeting construct upon the progress of payments handed through the 2022 particular and normal classes the place nice bipartisan work was performed to assist the areas. The lawmakers stated they really feel these legal guidelines have been very profitable in retaining the communities going.
A number of the progress they wish to see transferring ahead consists of an elevated concentrate on housing and revitalizing communities. Additionally, the lawmakers wish to have a look at what insurance policies would have been helpful to have in place when the disasters hit and what new legal guidelines will be applied after studying from the experiences.
Whereas a lot devastation got here from each pure disasters, the lawmakers mentioned ways in which their communities are rebuilding, reminiscent of making downtown areas much more engaging to companies and people, in addition to planning new housing to assist keep away from individuals being within the path of catastrophe once more, particularly in jap Kentucky.
“This may occasionally knock us again a couple of ft, but it surely received’t knock us down. And we will likely be stronger than earlier than,” Blanton stated, encouraging companies to find and spend money on jap Kentucky.
Infrastructure Funding
Kentucky Transportation Cupboard Secretary Jim Grey supplied an replace on the Infrastructure Funding and Jobs Act one yr after its passage. Secretary Grey said that federal funding from the freeway administration has elevated from $700 million to $900 million because of the laws, which can assist broaden Kentucky’s capabilities and capability.
Because the nation quickly strikes from conventional gas-powered autos towards electrical and hybrid autos, state transportation leaders try to remain forward of the curve when it comes to getting ready for the longer term, particularly in the case of amassing a tax or consumer charge on stated autos.
The infrastructure funding panel heard from Kentucky Transportation Secretary Jim Grey, Senate Transportation Committee Chair Jimmy Higdon, and Home Transportation Committee Chair Ken Upchurch at a panel moderated by Seth Cutter of CVG Airport Monday in a dialogue that lined a variety of subjects within the infrastructure sector.
Secretary Grey pointed to the truth that electrical automobile gross sales have elevated by round 70 p.c within the final yr.
“This yr alone, electrical automobile gross sales are up 70 p.c nationwide and are actually being supplied at a really reasonably priced worth,” Grey stated. “This isn’t one thing that’s coming slowly or progressively. It’s coming in a short time, and preparing for that’s precisely what we’re doing.”
Senator Higdon stated that Kentucky was taking a look at miles-driven know-how, which might require some type of tracker on every automobile, saying that they had been assembly with a number of different states who’ve employed pilot packages round this know-how.
“We nonetheless have an extended approach to go to determine this out,” Higdon famous.
Whereas challenges stay in amassing income, panelists stay excited concerning the bulletins of electrical automobile manufacturing vegetation and battery vegetation close to Elizabethtown and Bowling Inexperienced will make Kentucky the “electrical automobile battery capital of North America,” in response to Secretary Grey.
Grey additionally stated optimistic progress was being made towards a Brent Spence Bridge companion bridge in Northern Kentucky by way of the assistance of the federal infrastructure invoice that handed in 2021.
Different subjects lined by the panel included tackling ongoing workforce challenges and stressing the significance of different modes of transportation to our financial system reminiscent of rail, riverports, and aviation.
Flooring Chief Panel
The Republican ground leaders from the Home and Senate stated they are going to actually concentrate on smaller points in 2023 after monumental modifications and new legal guidelines in latest classes.
“Decrease your expectations,” Senate Majority Flooring Chief Damon Thayer informed the group concerning the 2023 session whereas he and Home Majority Flooring Chief Steven Rudy mentioned the monumental new legal guidelines in Kentucky round tax reform, unemployment insurance coverage reforms, faculty selection, youngster care, and far more.
On the similar time, transferring into the 2023 session there are 25 new members getting into the state Home and 6 new state Senators. Thayer stated he sees the Basic Meeting returning to the intent of a brief, 30-day session and never passing a ton of payments in 2023.
“I hope that we don’t open the state funds, don’t open the highway plan, and actually make the principle focus tweaks and enhancements to current legal guidelines,” Thayer stated.
Rudy stated he believes essentially the most vital and impactful factor that can occur in 2023 will likely be follow-up to Home Invoice 8 and the triggers decreasing the non-public revenue tax.
“We already know we’re going from 5 to 4.5 p.c in January 2023. That’s occurring. And we, because the Basic Meeting, can take motion to go from 4.5 to 4 p.c in 2024. I feel it is vitally cool for brand new legislators that the primary vote they take will likely be to decrease Kentucky’s revenue tax,” Rudy stated.
As for what is not going to be tackled in 2023, Thayer and Rudy agreed there seemingly is not going to be an urge for food to vote on any constitutional amendments, particularly following the failure of each amendments on the poll within the 2022 elections. “What’s the push?” Thayer requested, discussing a possible native tax reform modification and pointing to the truth that any amendments can not seem on the poll till 2024.
Different points they’re every concerned with, Thayer stated he is able to sort out sports activities wagering and thinks it’s “just a little embarrassing” Kentucky doesn’t have it. “We’re a sports-crazy state. And I do know some individuals say it’s not numerous income however I feel if we ever cross it, will probably be a house run and wildly in style,” he stated.
Rudy stated a good portion of the Home caucus retreat will likely be spent discussing suggestions popping out of many interim committees round issues like bourbon and different points.
Giving the viewers a “scoop” after the 4:00 pm deadline, Thayer stated nobody has filed to run in opposition to him for his management function. And discussing the 2023 governor’s race, Rudy joked that Thayer is not going to be his operating mate within the election as a result of he is not going to be on the poll. Thayer adopted up by saying “we often is the solely two Republicans within the state not operating for governor.”
Governor Beshear
“These previous few years have been exhausting and it’s okay to confess they had been exhausting,” Beshear stated, first pointing to the COVID-19 pandemic which has claimed so many Kentucky lives and was so difficult for all. However Beshear additionally took a second to thank Kentucky companies for doing their best possible through the pandemic and placing the well being of individuals first.
Kentucky has additionally confronted pure disasters, and all of us got here collectively to assist our fellow Kentuckians to be there throughout essentially the most troublesome instances, he stated. On high of these struggles, Kentucky and the nation battle with inflation which is extremely exhausting on households, and now a conflict in Europe with so many financial repercussions.
However, the governor stated, Kentucky can also be seeing so many alternatives and has such a shiny future.
He celebrated large financial growth bulletins in recent times bringing new investments and jobs of the longer term to the state.
“Individuals are selecting Kentucky,” Beshear stated.
As for insurance policies the governor says he’s centered on, Beshear pointed to giving Kentucky lecturers a elevate to fill vacancies and guarantee educators are usually not having to work multiple job to outlive, implementing common pre-Okay to assist with workforce and so many extra points, a concentrate on supporting Kentuckians with profession paths and choices for the longer term, bettering the well being of residents and get them off of incapacity, second probability employment by guaranteeing secure employment to these popping out of therapy, and extra.
“We’re at a basic second the place now we have an opportunity to actually enhance the Commonwealth and be a high ten state financial system,” Beshear stated.
