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July 2018 Newsletter.Indd 464 Chenault Road | Frankfort, KY 40601 Phone: 502-695-4700 Fax: 502-695-5051 www.kychamber.com 464 Chenault Road | Frankfort, KY 40601 Phone: 502-695-4700 Fax: 502-695-5051 www.kychamber.com NEWSJULY 2018 Kentucky Chamber Senior Vice President of Public Affairs Ashli Watts testifies in favor of House Bill 2 alongside bill sponsor Rep. Adam Koenig, Kentucky Coal Association President Tyler White, and Kentucky League of Cities Deputy Executive Director J.D. Chaney. WORKERS’ COMPENSATION LEGISLATION ANNUAL MEETING RESULTS IN SIGNIFICANT KEYNOTE SPEAKER ARTHUR BROOKS: Savings for Employers Bringing After the legislature passed important reforms to the the entire bill goes into effect, there will most likely be America Together state’s workers’ compensation system during the 2018 additional future savings to the workers’ compensation As America sees an session, employers in Kentucky are expected to see system, in addition to the -5.3%. increasing amount of big savings because of the new law modernizing the political disagreement system. House Bill 2 sponsor, Rep. Adam Koenig (Erlanger), told The Bottom Line, “The legislature was confident and a contemptuous In May, the National Council on Compensation that House Bill 2 would not only provide treatment for national dialogue, Insurance (NCCI) filed advisory loss cost changes due the injured worker but decrease costs for employers as American Enterprise to the passage of House Bill 2, workers’ compensation well. I am happy to see that the actions of the General Institute president Arthur modernization, which has been reviewed and approved Assembly in passage of House Bill 2 will result in Brooks wants to see by the Department of Insurance. This filing is required significant savings for all Kentucky businesses.” compassion and dignity by Kentucky law. enter back into politics. Senate President Robert Stivers also discussed the NCCI’s filing concludes that multiple provisions in bill with The Bottom Line, stating the new law should In an interview with House Bill 2 will likely produce savings of 5.3% to the address the biggest cost driver within the workers’ ARTHUR BROOKSS The Bottom Line PRESIDENT ahead of his keynote Commonwealth’s workers’ compensation system over compensation system which he said is the medical American Enterprise Institute time. side. He added workers who are hurt and truly address to the need medical benefits will still get the same type of Kentucky Chamber’s Annual Meeting on July At this time last year, after the Supreme Court decision payments. 19 in Louisville, Brooks said his talk to Kentucky on Parker v. Webster County Coal, employers were business leaders and policymakers will aim to give looking at a significant increase in workers’ comp costs Since the passage of House Bill 2, the Kentucky people a new way of thinking about the division if modernization was not passed in the 2018 General Labor Cabinet has formed the Kentucky Workers’ seen in the country and a way to better connect Assembly. Compensation Regulatory Advisory Committee to work with one another “despite the unpleasantness of on further implementation of the new law, which will our current political environment.” Analysis by NCCI of House Bill 2 concluded that once result in additional cost savings for employers. SEE ARTHUR BROOKS, PAGE 5 LEGISLATIVE LEADERS SAY PENSION REFORM WAS A TOXIC ISSUE AND More Work Remains on Tax Reform After a difficult 2018 legislative session with reforms made to the state’s pension Senate President Stivers said he believes communication was a central problem systems and tax code while balancing a with the process on pension reform as there were many messages budget, Senate President Robert Stivers and floating around and a lot of misinformation. Acting House Speaker David Osborne spoke exclusively with Kentucky Chamber news site It has the potential for However, both leaders said they feel the changes made in the 2018 session will stabilize the systems and the legislature can shift its focus to The Bottom Line about what was accomplished being a better system than by legislators and what must come next. funding the systems while there will need to be additional tax reform in what they currently have order to make Kentucky more competitive. Acting Speaker Osborne said the pension with portability. reform issue was “toxic from the beginning” and “It’s a fair system. And even the teachers’ unions for the KTRS are saying — Senate President Stivers called the pension crisis the most controversial it has the potential for being a better system than what they currently and divisive issue he has seen in the 12 years have with portability,” Stivers said, adding new teachers could now take he has been in the legislature and “the most their retirement savings with them if they choose a different career path. difficult process I’ve ever been through.” SEE TAX REFORM, PAGE 2 FROM THE FRONT Tax Reform: Stivers said tax reform is not something they “particularly care to do, but it is After the reforms for future hires have been made, the state still faces around something we had to do.” The Senate President said they would have liked to $60 billion in unfunded liability for the pension systems. Osborne said the liability go further on tax reforms in areas such as lowering the personal and corporate has an enormous impact on the Commonwealth, but it must be paid. He added income rates and other areas. the legislature has made a strong commitment to fund the systems, which he said began with the additional $1.2 billion put toward the systems in the budget passed “The individual will be able to control his tax exposure because we are dropping in the 2018 session. the rate and it will be based on your consumption, not on how much you earn,” Stivers said. “And if we can go further to make it more like a Tennessee, a North “There is no amount of reforms that we can do that will alleviate the underlying Carolina, or a Florida system, that’s where I believe we should go.” issue, which is they’re underfunded,” Osborne stated. On the issue of tax reform passed at the end of the 2018 session, in part to put more money toward the pension systems while also stabilizing the budget, READ MORE Osborne said reforming the state’s tax code will be a long process that has now been started by easing the burden on many Kentuckians. For more on what the legislative leaders said on this and other issues and to watch the interviews, visit The “We’ve got to continue to make sure we stay focused on the ultimate goal of where tax reform needs to be, which is to make Kentucky the best place in the Bottom Line at kychamberbottomline.com. world to build a business and raise a family,” Osborne said. ANNOUCING A New! Member Savings Program Members save 15% on A GLOBAL LEADER IN oil changes and a wide range WORKFORCE DEVELOPMENT of preventative maintenance Dedicated to providing services (excl. batteries) at multi-dimensional staffing solutions any of 65 Kentucky locations. Fleets enjoy special pricing too, plus added service controls, flexible ways to pay and a Comprehensive talent fulfillment services, local account manager. including permanent/direct hires and contract and contract to hire Specialized project deployments CONTACT US TO LEARN MORE Hilary Morgan at (502) 848-8724 or Innovative career track solutions at [email protected]. visit us online at kychamber.com/membersavings Ranked as the 4th fastest-growing woman-owned business in the U.S. by the Women Presidents’ Organization and American Express FOR MORE INFORMATION ON HOW WE CAN FIND THE RIGHT TALENT FOR YOUR BUSINESS: www.TKTandAssociates.com 502.499.9440 | INTERIM KENTUCKY EDUCATION COMMISSIONER LEWIS FOCUSED ON Education Performance and Career Readiness After the resignation of Kentucky Education Commissioner Stephen Pruitt in April, in Kentucky, and I am asking senior leadership in the Department of Education the Kentucky Board of Education named Dr. Wayne Lewis for the interim role. to help me to explore what the possibilities could be for charter schools moving forward.” In his fi rst week on the job, Lewis gave an exclusive interview to The Bottom Line laying out his top priorities he hopes will help Kentucky move forward, stating his Lewis stated one of his top priorities is strengthening career and technical main focus will be on improving Kentucky’s education performance and preparing education within the Department and around the state, saying “I think we’ve Kentucky students for success in the workplace. made some headway over the years in raising the stature in career and technical education in Kentucky, but quite honestly we still have a long way to go.” Lewis explained the essential skills legislation, championed by the Kentucky Chamber and passed in the 2018 session as a key component to preparing Lewis said he is focused on raising profi ciency rates, specifi cally in reading and students for careers. “These are the types of things that employers tell us day after mathematics. He commends Kentucky’s education reforms and improvements day, week after week, that are critical for folks that they’re trying to recruit and made in the early 1990s but says since then the progress has been stagnant and retain in their places of business. We have to do a better job in Kentucky’s schools has created various achievement gaps. of ensuring that we are helping students to learn and master these skills so that they’re prepared for success in the workplace.” Interim Commissioner Lewis is enthusiastic about his new role and the possibilities for his future as the Kentucky Education Commissioner.
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