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EDUCATION AND WORKFORCE DEVELOPMENT The

® LaneReportKENTUCKY’S BUSINESS NEWS SOURCE FOR 25 YEARS MAY 2010 $4.50 lanereport.com

LANE ONE-ON-ONE: ED LANE Publisher of The Lane Report MayCoverFinal.qxd:Layout 1 5/6/10 10:58 AM Page 992 May Lane 1-30.qk:Layout 1 5/6/10 10:59 AM Page 1 May Lane 1-30.qk:Layout 1 5/6/10 10:59 AM Page 2 May Lane 1-30.qk:Layout 1 5/6/10 10:59 AM Page 3 May Lane 1-30.qk:Layout 1 5/6/10 10:59 AM Page 17 May Lane 1-30.qk:Layout 1 5/6/10 10:59 AM Page 5 May Lane 1-30.qk:Layout 1 5/6/10 10:59 AM Page 6

MAY The 2010 Lane Report ® Kentucky’s Business News Source For 25 Years Volume 25 Number 5

FEATURES 34 HIGH-IMPACT EDUCATION Centre College sets the bar high and tops it with a culture of enthusiastic achievement 38 RE-ENGINEERING STAFFING 34 Recessionary layoffs allow healthcare companies to sharpen their business processes 42 DEVELOPING AN ADVANTAGE Mayfield’s Mid-Continent University’s adult education program grows Kentucky grads by sending faculty to the students

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DEPARTMENTS 10 Perspective 12 Fast Lane 24 Interstate Lane 26 Kentucky Intelligencer 28 Corporate Moves 29 On the Boards 31 Lane One-on-One: Ed Lane Publisher of The Lane Report 44 Legislative Wrapup 46 Opinion 48 Commentary 50 Viewpoint 52 Economic Commentary 54 The Lane List 56 Exploring Kentucky 58 Passing Lane 60 Kentucky People ON THE COVER Various covers of The Lane Report over the 25-year history of the publication. INSIDE: A special eight-page insert in the center of this issue presents comments from Kentucky leaders on occasion of our magazine’s 25th anniversary. KENTUCKY BUSINESS NEWS AVAILABLE ONLINE

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The PERSPECTIVE Lane Report ® Kentucky’s Business News Source for 25 Years EDITORIAL DIRECTOR locked up, but per-pupil expenditure in Mark Green THE ROAD TO FISCAL elementary and secondary education ASSOCIATE EDITOR RESPONSIBILITY amounts to just over $9,200 a year. Karen Baird Medicaid now provides coverage to CREATIVE DIRECTOR Kentucky’s spending issues more than 745,000 Kentuckians, about Jessica Merriman magnify need for state budget 17 percent of our total population. CORRESPONDENTS Despite the escalating investments of Amanda Arnold; Rena Baer; Katherine Tandy Brown; Patrice Bucciarelli; BY DAVE ADKISSON tax dollars, Kentucky’s health status Shannon Leonard Clinton; remains among the worst in the nation. Anne Charles Doolin; Debra Gibson; Kentucky’s public employee health Susan Gosselin; Robert Hadley; Carl Heltzel; ITH the budget debate continu- plan costs more than $1.2 billion a year, Feoshia Henderson; Kara Keeton; ing in Frankfort beyond the April and the cost of healthcare is a key driver Meredith Lane; Nancy Miller; of rising pension costs, accounting for Robin Roenker; Robyn Sekula; Eddie Sheridan; 15 adjournment of the General WAssembly, the Kentucky Chamber’s posi- 55 percent of state government’s contri- Don Ray Smith; Gary Wollenhaupt tion remains unchanged: The state must butions to its pension system. SYNDICATED COLUMNS Creators Syndicate have a fiscally responsible spending plan Spending on these major leaks, if left for the 2010-2012 biennium. unaddressed, will mean the state will DESIGN Stone Advisory never have enough money to fund needed services like public education. PRINTING, OUTPUT & PRE-PRESS SERVICES Dave Adkisson is As lawmakers return to Frankfort to Publishers Printing Co. president/CEO of the Ken- finalize the state’s spending plan, the ■ tucky Chamber of chamber is optimistic an accord can be Commerce and a PUBLISHER reached that will not negatively impact Ed G. Lane member of the Governor’s employers. The failure thus far of the Task Force on ASSOCIATE PUBLISHERS House and Senate to reach agreement Dick Kelly Unemployment Insurance Robin Lachapelle on the budget should not obscure the Donna Hodsdon fact that the versions approved by the

BUSINESS MANAGER In our view, such a budget would two chambers had several positive ele- Jim Curry protect education funding as much as ments in common: restructuring the

CHIEF FINANCIAL OFFICER possible during the recession, reduce public employee health insurance pro- Steve Rohlfing, CPA unsustainable expenditures, limit gram to reduce costs, smoking cessa-

CIRCULATION growth in the state debt level and spare tion coverage for Medicaid recipients, P&B Services Kentuckians from a greater tax burden. reductions in personal service contracts

COMPTROLLER The chamber developed this posi- and political appointees, and cost-sav- Alma Kajtazovic tion largely as a result of the research it ing measures in Medicaid and correc- has done in the past several months on tions. In essence, the General Assembly Lane Communications Group state spending – and our approach to is moving closer to begin addressing is a member of state budget and spending issues will issues identified by the Chamber’s reflect our research findings well spending research. beyond the current debate. That’s Significant points of contention because of the bottom-line reality that focus on how much additional debt the The Lane Report is published monthly by: Kentucky is spending an increasing state should incur for construction Lane Communications Group amount of money on unsustainable projects and whether business taxes 201 East Main Street 14th Floor areas and shifting its priorities away should be increased to provide addi- Lexington, KY 40507-2003 from funding for education – the foun- tional revenue. The Kentucky Cham- [email protected] dation of our future prosperity. ber has consistently encouraged the For more information and Spending on what we describe as the General Assembly to pass a fiscally advertising rates contact: PHONE: 859-244-3500 major budget leaks – corrections, Medicaid responsible budget – one that protects FAX: 859-244-3555 and public employee health benefits – is education funding to the extent possi- The annual subscription rate is $29. growing faster than the state budget over - ble, reduces unsustainable expendi- (Kentucky residents add $1.74 sales tax.) all. In fact, more than half of the growth in tures, limits the growth in the state Newsstand price is $4.50. Kentucky’s budget since 2000 has been in debt level and spares Kentuckians from Send check or money order to: those three areas. Compared to a 33 per - a greater tax burden. Circulation Manager THE LANE REPORT cent growth in total spending: corrections As the General Assembly works toward 201 East Main Street 14th Floor increased by 44 percent, Medicaid grew by an agreement on the budget, legislators Lexington, Kentucky 40507-2003 67 percent, and public employee health should not increase the tax burden on THE LANE REPORT corrects all significant errors that benefits grew by 174 percent. individuals or employers and should limit are brought to the editors’ attention. Beyond the percentages, certain facts the use of debt to sustainable levels. Creat- © 2010 Lane Communications Group stood out. For example, Kentucky has the ing jobs by bonding construction projects All editorial material is fully protected and must not be fastest-growing prison population in the is a laudable goal. But in our view, the bet- reproduced in any manner without prior permission. country, according to a recent national ter approach is to protect the jobs Ken- report, but a relatively low crime rate com- tucky employers are already providing – pared to other states. Even more striking: not to put those jobs at risk by increasing It costs $19,000 a year to keep one inmate taxes on business. ■

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FAST LANE A compilation of economic news from across Kentucky

WINCHESTER: LIFEPOINT HOSPITALS ACQUIRES CLARK STATE: PPL AGREES TO BUY REGIONAL MEDICAL CENTER, NEW FACILITY PLANNED E.ON U.S. FOR $7.6 BILLION; Courtesy of Lifepoint Hospitals Inc. LARK Regional Medical Center HQ TO STAY IN KENTUCKY has been acquired by LifePoint Hospitals Inc., a Brentwood, .ON, a global power and gas com- CTenn.-based company that operates 47 pany headquartered in Germany, acute-care facilities in 17 states. announced on Apr. 28 that it plans Eto sell Louisville-based E.ON U.S. to As part of the acquisition agreement, LifePoint has committed to invest Pennsylvania power company PPL approximately $60 million to build and Corp. for $7.6 billion. equip a new 132,000-s.f. hospital to E.ON U.S., headquartered in replace the existing 100-bed facility. Louisville, is the parent company of Clark Regional Medical Center’s new facility is Construction on the new hospital is Louisville Gas and Electric Co. (LG&E) expected to be complete within 18 to 24 months. expected to begin this year and be com- and Kentucky Utilities Co. (KU). In pleted within 18 to 24 months. making the announcement, Victor A. “Clark Regional Medical Center’s board of directors worked diligently to select the Staffieri, chairman, CEO and president right partner for our hospital,” said Clark Regional CEO Bob Fraraccio. “LifePoint’s mis- sion and values are very consistent with ours, and that was critical to our decision. Life- Point operates non-urban hospitals very similar to Clark Regional and has a significant presence in the Lexington area. Most importantly, LifePoint is committed to delivering quality services to meet the needs of our community now and in the future. We believe this partnership is a great fit and will be a strong asset for our community.” LifePoint has eight affiliated hospitals in Kentucky, including Bluegrass Community Hospital in Versailles, Bourbon Community Hospital in Paris, Georgetown Community of E.ON U.S., emphasized that PPL has Hospital in Georgetown, Jackson Purchase Medical Center in Mayfield, Lake Cumber- committed to keeping the LG&E/KU land Regional Hospital in Somerset, Logan Memorial Hospital in Russellville, Mead- headquarters in Louisville and Lexing- owview Regional Medical Center in Maysville, and Spring View Hospital in Lebanon. ton, respectively, for 15 years and would not be eliminating any jobs as a result of the transaction. Staffieri added that the LEXINGTON: STUDY PROJECTS THAT WEG WILL CREATE LG&E/KU management team would ECONOMIC IMPACT OF $167 MILLION FOR KENTUCKY remain intact as well and that the com- pany’s community investment levels and ENTUCKY could realize a $167 mil- support of economic development lion economic benefit from the 2010 would continue. Alltech FEI World Equestrian Games, “It is a winning combination that Ka significant increase from early projections benefits employees, customers, investors of $150 million, organizers said. and the Commonwealths of Kentucky The 2010 Alltech FEI World Equestrian and Virginia,” Staffieri said. Games will be held for the first time in the LG&E serves 321,000 natural gas cus- United States at Lexington’s Kentucky tomers and 396,000 electric customers Horse Park. The world championships in in Louisville and 16 surrounding coun- eight equestrian sports will be held from ties. KU serves 545,000 electric cus- Sept. 25 to Oct. 10, with as many as 60 tomers in 77 Kentucky counties and five countries represented. counties in Virginia. The study, conducted by Dr . Paul To recognize the community rela- Coomes, professor of economics at the Uni- tionship it has built during the eight versity of Louisville, shows a direct impact years in which it has owned LG&E and to state and local governments through pay- KU – E.ON acquired the companies roll taxes and taxed purchases by spectators from Powergen plc in 2002 – E.ON is in regional hotels, restaurants, retailers and donating $2 million to the University of car rentals. Kentucky for clean coal research; $2 Current ticket sale projections estimate Lexington will host the World Equestrian Games million to the University of Louisville that more than 85 percent of the event’s this fall from Sept. 25 through Oct. 10. for engineering and energy efficiency spectators will come from outside Kentucky, programs; and $2 million to the E.ON bringing new dollars into the region’s economy. Current ticket purchasers are aver- U.S. Foundation for community and aging five days of attendance, and the lodging that comes with those visits could charitable needs. account for more than $20 million in spending on accommodations alone. The companies anticipate complet- In addition, the study estimates significant employment opportunities, bringing ing the transaction by the end of the employees and payroll taxes into the state and local economies. year, subject to regulatory approvals and The study also noted impacts that worldwide television exposure, branding, adver- customary closing conditions. tising and media coverage would bring to Kentucky for years to come.

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HART COUNTY: AUTOMOTIVE SUPPLIER BUSINESS BRIEFS LAUNCHES OPERATIONS IN HORSE CAVE

new start-up automotive supplier has announced BOWLING GREEN plans to establish its manufacturing operations in ■ The National Corvette Museum Horse Cave. in Bowling Green has opened a AKentucky Chrome Works will manufacture decorative new educational driving simulator chrome plating and metal finishing services for the automo- theater, a learning tool designed tive and appliance industry. The company is leasing a 50,000- to instruct visitors on realistic driv- s.f. facility on five acres in Horse Cave and anticipates hiring ing situations. The one-of-a-kind 80 employees to staff the plant within two years. theater features realistic driving

The Kentucky Economic Development Finance Authority scenarios played out on simulated National Corvette Museum photo has preliminarily approved Kentucky Chrome Works for up highways in urban and rural set- to $750,000 in tax incentives through the Kentucky Indus- tings and in different weather trial Development Act. The incentive can be earned over a conditions. As drivers maneuver 10-year period. the simulator, they feel tension on the steering wheel, feel the In addition, the Department for Local Government has car react to the road sur face, and hear highway and vehicle approved a $780,660 Community Development Block Grant sounds. The experience includes a variety of common driving to the Hart County Industrial Authority for the benefit of tasks, taking drivers through situations involving some of the Kentucky Chrome Works. The funds will be used to pur - most prevalent factors in highway crashes. The Corvette chase multiple pieces of equipment. Museum, which is one of the area’s top tourist attractions, received a $198,000 Transportation Enhancement award in 2007 to fund the project. LEBANON: ANGELL-DEMMEL EXPANSION TO CREATE 52 MANUFACTURING JOBS ■ Country Oven Bakery is expanding its operations in Bowling Green and will add 33 new jobs as a result of the expansion. The PRNewswire photo NGELL-Demmel North Bowling Green bakery, which is owned by The Kroger Co., pro- America Corp. has been duces frozen dough products, breads and iced cakes for Kroger. awarded a $1 million The expansion will add 50,000 s.f. to the company’ s existing Acommunity development 177,000-s.f. facility to accommodate a second cake line. Country block grant (CDBG) and $2.5 Oven Bakery currently employs 450 people with a total annual million in state tax incentives payroll of $22.3 million. The new jobs will have an average for the expansion of its auto- annual wage of nearly $50,000 including benefits. motive parts production facil- ity in Lebanon, which is home CAMPBELLSVILLE to the company’s metal prod- ■ Campbellsville University is expanding the bachelor and Angell-Demmel has been awarded a graduate degree programs being offered at its Louisville cam- seven-year contract to supply door ucts division. and instrument panel trim for the Angell-Demmel has pus. New offerings include a masters of business administra- Mercedes M-Class. recently been awarded a tion degree and a Rank 1 education program that allows seven-year contract with Mer- experienced teachers to develop a new area of expertise or cedes-Benz, U.S. Interna- strengthen a familiar area. tional Inc. to produce decorative aluminum trim for the doors and instrument panels for Mercedes M-Class. The CYNTHIANA CDBG grant will allow for the purchase of an EPIC curtain ■ 3M is investing $4.2 million to purchase new equipment for coater and a wet buff machine necessar y to begin produc- its plant in Cynthiana, where it manufactures Post-it notes and tion of the trim parts. pads and Scotch packaging tapes. The new equipment will The project will create 52 new full-time jobs for the area, enable the plant to produce new products and retain its 500 at least 27 of which will benefit low-to-moderate income per- employees. Company officials said the new equipment could sons. The Lebanon facility currently employs 102 workers position the plant for future packaging opportunities that and provides more than $8 million annually in gross wages would lead to additional jobs. for the local economy. Angell-Demmel first located in Lebanon in 1965 and has DANVILLE grown to become one of the leading manufacturers of deco- ■ Caterpillar Track Components has announced plans to invest rative trim worldwide for the automotive, home appliance some $2.8 million to expand operations at its plant in Boyle and consumer electronics industries. Products manufactured County, where it produces components for Cat machines, includ- at the Lebanon facility include aluminum wheel covers, auto- ing pins and bushings for tractors and hydraulic excavators, and motive interior trim products and aluminum appliance pan- hinge pins for wheel loaders. The expansion is part of the com- els. According to the company, the new contract with pany’s decision to move an existing product line from its facility in Mercedes-Benz represents a breakthrough into a broader Franklin, N.C., to the Danville plant. In addition to retaining the market for Angell-Demmel with other contracts to follow in Danville plant’s existing jobs, the expansion will create approxi- future years. mately 18 new positions.

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BUSINESS BRIEFS BOWLING GREEN: WKU DEDICATES NEW MANUFACTURING AND ROBOTICS LAB ERLANGER .S. Senator Mitch ■ Remke Markets, an Erlanger-based chain of supermarkets, McConnell traveled to has announced plans to purchase seven Bigg’s stores and Bowling Green last pharmacies in the Cincinnati area from Bigg’s parent, Super- Umonth for the formal dedica- Valu. Minnesota-based SuperValu is closing its five remaining tion of Western Kentucky Uni- Bigg’s stores in the area by the end of May . The acquisition versity’s new advanced brings Remke Markets’ complement of stores in the area to manufacturing and robotics lab.

13. Financial details of the transaction were not released. WKU photo by Clinton Lewis WKU renovated 3,500-s.f. of FLORENCE space in the university’s Envi- ronmental Sciences and Tech- ■ A reduced racing schedule for the 2010 winter/spring meet left nology Building to house a U.S. Mitch McConnell has been Turfway Park with significant declines in on-track and all-sources state-of-the-art facility for instrumental in obtaining funding handle compared to the same meet last year , but daily averages advanced manufacturing, indus- for WKU’s advanced manufactur- were up for the Florence horse racing track. The track presented ing and robotics lab. trial automation, robotics and 435 races over 45 days in the 2010 meet, compared to 619 races digital design graphics for animation and simulation. The depart- over 62 days in 2009 and saw a 24.3 percent decrease in on-track ments of Architectural and Manufacturing Sciences, Computer handle and a 19.1 percent decrease in all-sources handle for the Science and Engineering share the use of the facility. winter/spring meet that began Januar y 1 and ended March 28. McConnell has secured almost $6 million in federal Daily averages, however, were up 4.2 percent on track and 11.5 appropriations over the past three years for WKU’ s Ogden percent from all sources, the latter bolstered by a 14.1 percent College of Science and Engineering, of which nearly $2 mil- increase in out-of-state play. Turfway, along with some other Ken- lion has been used for the lab and equipment. tucky tracks, reduced racing days in an effort to bolster purses and Dr. Blaine Ferrell, dean of the Ogden College of Science field sizes and better compete with tracks in other states. and Engineering said that in terms of academics, the auto- GEORGETOWN mated robotics lab moves WKU to the cutting edge in man- ufacturing technology. Ferrell said the facility will also ■ Two Georgetown companies, Green Metals Inc. and ARK Inc. provide students the opportunity to participate in hands-on (American Recyclers of Kentucky), have merged to create a total applied research or technical projects that will help them waste management support firm with 204 employees. ARK, which learn how to design more efficient and economical manu- began as a part of Toyota Tsusho America Inc. and was spun off facturing processes. into a wholly owned subsidiary in 1993, provides on-site waste management of hazardous and non-hazardous waste streams. Green Metals, Inc., established in 2000, provides environmentally LEXINGTON: FORBES RANKS LEXINGTON safe scrap metal recycling. The merged company, which is a AMONG BEST U.S. CITIES FOR BUSINESS wholly owned subsidiary of Toyota Tsusho America, is operating under the Green Metals name but is expanding to provide total waste management recycling and support services.

GLENDALE ■ A 1,551-acre industrial site in Glendale has been certified as a CSX Megasite, a designation that identifies the property as being suitable for large-scale development projects. “The dis- Lexington CVB photo tinction of being named a CSX Megasite by McCallum Sweeney Consulting is a tremendous benefit to the Glendale site in Elizabethtown,” said Gov. Steve Beshear. “The site has previously been a finalist in many potential large-scale proj- ects and this new honor will once again put a spotlight on this prime piece of shovel-ready property.” Property size, access to CSX rail service, proximity to an interstate, labor availability, natural gas, wastewater and water infrastructures were part of the criteria necessary for consideration.

LEXINGTON Lexington has been ranked by Forbes magazine as one of the nation’s best ■ Lexmark Interna- cities for business. The magazine’s Best Place for Business and Careers list – tional has formed a which ranks the nation’s 200 largest cities – placed Lexington at No. 9, based on 12 metrics that include business and living costs, job growth (both past new division that is and projected), income growth, educational attainment and projected eco- focused on enhancing nomic growth. Forbes also factored in quality of life issues such as crime, cul- the company’s ability to tural and recreational opportunities; net migration patterns; the percentage of service and support federal government agencies. Lexmark Gov- subprime mortgages issued over a three-year period; and the number of highly ernment Solutions will provide dedicated products, ser vices and ranked four-year colleges in the area. Des Moines, Iowa, was the top-ranked solutions to help government agencies manage their data and doc- city on the list, followed by Provo, Utah; Raleigh, N.C.; Fort Collins, Colo.; Lincoln, Neb.; Denver, Colo.; Omaha, Neb.; Huntsville, Ala.; Lexington; and uments more efficiently and securely while also lowering costs. Austin, Texas.

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BUSINESS BRIEFS STATE: SIX KENTUCKY CORPORATIONS ACHIEVE 2010 FORTUNE 500 RANKING LEXINGTON IX Kentucky– ■ American Eagle Air- based corpora- lines, a regional affiliate tions have been of American Airlines, has Snamed to Fortune mag- launched daily nonstop azine’s annual Fortune jet service between Blue 500 list, which ranks Grass Airport and the nation’s largest Chicago O’Hare Interna- public companies tional Airport (ORD). according to their 2009 Eagle is operating the revenues. service with 44- and 50- Making their seat Embraer jets. appearance on the 2010 list were Humana, ■ The board of directors for Kentucky Employers’ Mutual Yum Brands, Ashland, Omnicare, General Cable and Kindred Insurance (KEMI) has approved a total dividend of $30.8 mil- Healthcare. lion, a decision the company says will impact more than Humana, a Louisville-based health insurance company, 73,000 employers. The move marks the first time in its 15-year led the Kentucky companies, coming in at No. 73 (up from history the company has issued a dividend payment to current No. 85 in 2009) based on revenue of $30 billion. and former policyholders. Dividend checks will be issued in Yum Brands, the Louisville-based parent company of July of this year to customers who were insured by KEMI KFC, Pizza Hut, Long John Silver’s, Taco Bell and A&W, between Sept. 1, 1995 and Dec. 31, 2008. Under the moved up to No. 219 from last year’s No. 239 and reported approved plan, only policyholders who had a KEMI policy for 2009 revenue of $10.9 billion. at least six months and maintained a total loss ratio below 75 Ashland, a major chemicals company headquartered in percent are eligible to receive a dividend payment. Covington, came in at No. 280 (up from 310 in 2009), with revenue of $8.1 billion. ■ Littler Mendelson P.C. has opened its newest law office in Omnicare, a pharmaceutical company also headquar- Lexington, with Susan Sears named as the office’s managing tered in Covington, came in at No. 347 with revenue of $6.2 shareholder. Littler Mendelson focuses exclusively on man- billion, moving up from No. 392 in 2009. agement representation in employment and labor law . With General Cable, a Highland Heights company that made the addition of the Lexington office, the firm has 49 locations its first appearance on the list last year with a ranking of 396, and more than 750 attorneys. dropped to No. 469, with revenue of $4.3 billion. Louisville-based Kindred Healthcare returned to the For- ■ Smashburger, a Denver-based fast-casual restaurant chain, has tune 500 for the first time since 2007, coming in at No. 477 opened the first of six planned Kentucky restaurants in Lexing- with revenue of $4.3 billion. ton, near the University of Kentucky campus. Owned by Bill Lear, Jim Phelps and Wayne Wellman, the Lexington location features customized menu items inspired by the Bluegrass state, such as Wild Turkey bourbon barbecue sauce and Ale-8-One soft drinks. FRANKLIN: EXPANSION AT WORLDCOLOR Smashburger was named a 2009 Hot Concepts! award winner by WILL CREATE 135 NEW FULL-TIME JOBS Nation’s Restaurant News. ORLDCOLOR, a Canada-based company that pro- ■ The University of Kentucky Markey Cancer Center has vides comprehensive print services, has announced signed a formal agreement with the Shanghai First People’s plans to expand its facility in Franklin, Ky. Hospital Comprehensive Cancer Center in Shanghai, China, WThe expansion represents an investment of $9.7 million that outlines plans for cooperative initiatives in cancer prevention and will add 105,000 s.f. to the existing 406,000-s.f. Franklin and treatment, research collaboration and personnel exchanges plant. The additional space will accommodate new binding for training and education. Shanghai First People’s Hospital, affil- equipment needed to meet a significant increase in cus- iated with Shanghai Jiaotong University, is one the largest major tomer print volume to ser vice magazine and catalog cus- hospitals in the Shanghai metropolitan area. Its cancer center has tomers. With the additional binding equipment, the more than 43,000 outpatient visits and over 5,700 cancer surger- Franklin plant will be able to handle magazine printing and ies per year. Major research interests are focused on gastrointesti- will serve as the company’s primary magazine production nal cancer, lung cancer and breast cancer. facility, producing four major publications: Cosmopolitan, Redbook, Country Living and Seventeen. ■ SIS Holding Co., a Lexington-based technology solutions The expansion will add 135 new full-time jobs to the provider, has announced plans to expand its operations, plant’s current 425-member workforce. adding 15 new jobs with an average annual salary of The Kentucky Economic Development Finance Author- $80,000. SIS has been headquartered in Lexington for ity has preliminarily approved Worldcolor for tax incentives more than 25 years and currently employs a staff of 35 in up to $1.95 million through the Kentucky Business Invest- Lexington. The company also has offices in Louisville and ment program. The incentive can be earned over a 10-year London, Ky.; Cincinnati; Indianapolis; Charleston, W. Va.; period through corporate income tax credits and wage and Alexandria, Va. assessments.

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BUSINESS BRIEFS FRANKLIN: DANAFILMS IS ADDING MORE SPACE, NEW JOBS AT KENTUCKY PLANT LEXINGTON ANAFILMS Inc. is adding 50,000 s.f. to its plant in ■ Tempur-Pedic Interna- Franklin to make room for a new co-extrusion line tional Inc., the Lexington- and accommodate future growth. based manufacturer, DDanafilms manufactures premium monolayer and coex- marketer and distributor of truded barrier films for a wide variety of specialty applica- premium mattresses and pillows worldwide, has acquired its tions and markets, including lawn and garden, pet food and Canadian distributor, Tempur Canada Inc. Tempur Canada supplies, food packaging, electronic packaging and indus- will operate as a wholly owned subsidiary and continue to pro- trial products such as films, tapes and release liners. The vide the Canadian market with products from Tempur-Pedic. company is investing $7 million in the expansion project, LOUISVILLE which is expected to be complete before the end of the year. The expansion will create about 20 new jobs, bringing the ■ Raytheon Missile Systems is investing $3 million to expand facility’s total employment to 50. its operation in Louisville. The company, which has operated “Adding this equipment is about redundancy,” said Aaron in Louisville since 1996, plans to lease an additional 25,000 LaPointe, the co-extrusion technical manager at Danafilms. s.f. of space at its existing 327,000-s.f. facility to increase its “This really allows us to cut the lead times for coextruded production rate of retrofitting and modifying weapon systems products. We do a great deal of custom work, tweaking the for the U.S. Army and Navy. The expansion will add 30 new properties of the films. With a seven-layer coextrusion, we full-time jobs to the company’s current 335-member staff. can provide very precise properties in the most cost-effective configuration possible and get the finished work to the cus- ■ FetterGroup has added 12 new jobs at its company headquar- tomer much faster. This Windmoeller & Hoelscher line is a ters in Louisville, where it operates a label division that supplies fantastic piece of equipment, and the new one has all the lat- the paint and coatings industry and a technology division that est bells and whistles.” uses custom software and Web-based tools to create sales and mar- The expansion is being built by Gray Construction, the keting materials, primarily for healthcare clients. The new jobs Lexington-based company that built the original facility. span both divisions and include managerial positions. Businesswire photo ■ Frontier Airlines has LOUISVILLE: YUM BRANDS WINS NAMING launched new nonstop RIGHTS FOR NEW LOUISVILLE ARENA flight service between Louisville and the Denver International Airport. The flights operate daily utiliz- ing Airbus 319 aircraft.

■ Norton Cancer Institute is among 14 new sites chosen by the National Cancer Institute, part of the National Institutes of Health, to join a national network of community cancer centers offering expanded research opportunities and state- of-the-art cancer care at healthcare organizations serving largely rural, suburban, small-town and underser ved urban populations. Norton Cancer Institute is the first site in Ken- tucky to be chosen by the National Cancer Institute for its Community Cancer Centers Program and one of only 30 sites in the entire country.

NORTHERN KENTUCKY ■ St. Elizabeth Healthcare has converted its current paper- based medical record system to the Epic electronic medical record system, a move that is part of the company’s efforts to implement a unified electronic health record for all patients in the St. Elizabeth system. The conversion enables medical information to be immediately accessible to caregivers, which With a $13.5 million bid, Louisville-based Yum! Brands – parent company of in turn should improve coordination of care and patient KFC, Pizza Hut, Taco Bell, Long John Silver’s and A&W Restaurants – has safety. “We are not the first system to implement Epic, but the won the 10-year naming rights for Louisville’s new downtown arena, which will be home to the University of Louisville basketball team. “Yum! Brands is first in the area to standardize our electronic records in mul- extremely proud that Louisville’s newest and most spectacular venue will be tiple physician offices, offsite locations, and our hospitals,” named the KFC Yum! Center,” said Yum Chairman and CEO David Novak. said St. Elizabeth Chief Information Officer Alex Rodriguez. “As the world’s largest restaurant company based in Louisville, with 1,400 “The objective of the implementation of Epic is not to stan- local employees, we have always been committed to investing in our own dardize care, but ultimately to improve the standard of care.” hometown. The KFC Yum! Center is another great way for us to give back to St. Elizabeth Healthcare operates six healthcare facilities in the community and make it a great place for our employees and their fami- lies.” The 721,000-s.f. facility will feature seven different restaurant conces- Northern Kentucky and employs more than 6,000 workers. sion areas where guests can purchase KFC, Taco Bell and Pizza Hut products.

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BUSINESS BRIEFS LANCASTER: MINE SHIELDS LLC TO BEGIN MANUFACTURING IN GARRARD COUNTY Comair photo NORTHERN KENTUCKY INE Shields LLC, a new start-up company that will ■ Delta Air Lines has reinstated non- produce mine refuge chambers, has announced stop air service between the Cincin- plans to establish operations in Lancaster, creating at nati/Northern Kentucky Mleast 35 new full-time jobs. International Airport and San Anto- Mine Shields will produce a mine refuge chamber that nio, Texas. The flights were discontin- will have the capacity to secure the comfort and sur vival of ued last May. The airline is utilizing the 70-seat CR-7 jet aircraft miners for no less than 96 hours. The unit is formed of one- for the Cincinnati – San Antonio route. quarter gauge steel throughout and is designed for under - ground application in non-caustic environments. ■ Statistics released by the Northern Kentucky Tri-County Mine Shields CEO Connie Hendren said the company is Economic Development Corp. (Tri-ED) show that new and the only manufacturer of metal refuge chambers in Ken- expanding companies in Northern Kentucky accounted for tucky and one of only five in the United States. 2,760 new jobs within the Cincinnati metropolitan statistical The company will establish two production lines at its 60,000- area (MSA). A report compiled by Northern Kentucky Uni- s.f. Lancaster plant and anticipates it will produce 500 units versity’s Center for Economic Analysis indicates that in addi- annually. The 35 new jobs, which are expected to be filled within tion to new job creation, new and expanding businesses in six months of operation, are estimated to have an average hourly Northern Kentucky invested more than $63.9 million in land, wage of more than $16 an hour, including benefits. buildings and equipment in 2009. Gov. Steve Beshear noted that mining tragedies like the PADUCAH one last month in West Virginia – the worst such accident in more than 25 years – deepen the resolve to make sure min- ■ Paducah-based Waterway ers are kept safe. Innovations has been approved “The mine refuge chambers that Mine Shields will produce for up to $150,000 in funding are uniquely designed to save lives underground,” Beshear said. from the Kentucky Cabinet for “This announcement is a huge step forward for our miners.” Economic Development’s High-Tech Investment Pool, which is used to build technol- BOWLING GREEN: XHALE’S HAND HYGIENE ogy-based and research-intensive companies and projects. The SYSTEM WINS MEDICAL DESIGN AWARD award will assist the company in developing two monitoring sys- tems that relay vital information to barge owners and operators. hand hygiene system The two systems can provide cost-saving opportunities for barge developed by Xhale operators and owners, including more effective use of manpower, Innovation’s engi- reducing insurance premiums, minimizing missed drop-offs and Aneering facility in Bowling Xhale photo helping avoid barge collisions. A client of the Murray Innovation Green has been selected as and Commercialization Center, Waterway Innovations expects a winner in the 2010 Med- to create nine new high-tech jobs paying an average annual salary ical Design Excellence of $68,000, exclusive of benefits. Awards competition. HyGreen is a wireless RACELAND system that was designed Xhale’s Hygreen system is designed to ■ The (Ashland) Independent reports that 125 employees have decrease the number of healthcare-asso- to help hospitals decrease ciated infections. been furloughed indefinitely from Progress Rail Services the nearly two million Corp.’s Raceland Heavy Repair Shop, which provides repair healthcare-associated infections that occur each year. After work for CXS Transportation. According to information cleaning their hands with alcohol-based sanitizers (soap or released by CXS, improvements in freight car utilization, a gel), healthcare workers place them under the HyGreen sen- move toward more shipper-owned cars and new car purchases sor that sniffs for alcohol and sends a wireless “all clean” mes- and leases have affected the number of rail cars needing sage to a badge worn by the healthcare worker . A wireless heavy rebuilds, and CSX does not expect additional heavy monitor mounted above the patient bed searches for the rebuilds to be needed in the near future. message – if it’s absent, the badge vibrates, reminding the healthcare worker to wash. All interactions are recorded in SMITHLAND real-time, showing who is washing and who is not. ■ Construction work is now under way on a cofferdam for “This award recognizes the important work that medical American Municipal Power’s Smithland Hydroelectric proj- device companies are doing to advance the design and func- ect, the second of five such projects the company currently tionality of products that contribute to improved patient out- has under development. (The company broke ground on the comes and aid medical professionals on the front lines of first project, the Cannelton Locks and Dam near Hawesville, delivering care,” said Xhale Innovations CEO Richard Allen. Ky., last summer.) The Smithland Hydroelectric project has Entries in the Medical Design Excellence Awards compe- an estimated capacity of 76 MW and represents a capital tition were reviewed by a multidisciplinar y panel of third- investment of approximately $432 million. The construction party jurors with expertise in biomedical engineering, phase, which is expected to take approximately four years, will human factors, industrial design, medicine and diagnostics. employ 200-400 workers. Once the plant is operational it will Hygreen was also the winner of the 2009 Popular Science employ seven to nine permanent operators. Best of What’s New Award.

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BUSINESS BRIEFS LEXINGTON: UK’S BUSINESS COLLEGE RECOGNIZES 2010 HALL OF FAME CLASS SOMERSET OSEPH W. ■ Gator Made Inc. is investing $300,000 to expand its opera- Craft III, tions in Somerset, where it produces utility trailers, goose- Richard J. necks and cargo trailers. Gator Made plans to add a new line JHuxley, Henry of box trailers and a powder coating paint line to its 305,000- Clay Owen and s.f. facility, which currently houses Gator Made Trailers; Geoffrey Rosen- Bondtech Corp., a manufacturer of autoclave systems; and berger are the Innovacycle, a document destruction and recycling facility. newest inductees The expansion is expected to add 15 new full-time jobs to the into the Univer- current staff of 54. sity of Kentucky Joseph W. Craft III Richard J. Huxley STATE Gatton College of Business and Eco- ■ Affiliated Computer Services Inc. has nomics’ Alumni announced plans to add 320 jobs in Ken- Hall of Fame. tucky to help handle an increase in busi- Craft (Class of ness. The new jobs are customer care and 1972) is presi- supervisory positions and include 270 dent, CEO and positions in Lexington – 80 full-time and director of 190 temporary – and 50 at the company’s Pikeville facility. Alliance Resource ACS is one of the state’s largest employers, with approximately Partners LP, a 4,000 Kentucky employees. diversified coal producer that was ■ The Green River Workforce Investment Board (GRWIB), Henry Clay Owen Geoffrey Rosenberger named by Busi- the Cumberland Workforce Investment Board and the Lincoln ness Week maga- Trail Workforce Investment Board have received a total of zine as the nation’s 14th hottest growth company in 2007. In $750,000 in state funding to implement programs to specifically June 2008, Ernst & Young recognized Craft as “Entrepreneur serve low-income, unemployed or underemployed adults who are of the Year” for the Southwest Region in the energy, chemi- interested in an education or training program leading to a cal and mining category. career in the healthcare sector. The funds are being provided by Huxley (Class of 1980) is the owner of Richard J. Huxley, the American Recovery and Reinvestment Act through the Gov- LLC and has over 28 years of experience in the investment ernor’s Workforce Investment Act Statewide Reserve, and will field. Huxley retired in 2008 from Clover Capital Manage- fund the Prescription for Success Health Care initiative. The ment as executive vice president – investment. Prior to that U.S. Department of Labor projects that healthcare will generate position, he was vice president and manager of the Capital 3.2 million new jobs in the United States between 2008 and 2018, Markets Forecasting Group at Chase Lincoln First Bank, NA more than any other industry. (and its predecessor). Huxley, a resident of Fairport, N.Y., was also a recipient of the 1980 Wall Street Journal Award for ■ Verizon Wireless is investing $7.8 academic achievement. million to add more capacity to its Owen (Class of 1961) joined the University of Kentucky advanced high-speed 3G network in business staff in 1964, and was appointed controller in 1969 Kentucky. The project entails and treasurer in 1982. During his 43-year tenure, he was installing equipment on hundreds of cell sites across Ken- instrumental in establishing UK’s automated accounting and tucky, increasing data capacity of the network by as much as internal control systems. 26 percent. This $7.8 million investment is part of the com- Rosenberger (Class of 1974 and 1976) is a chartered pany’s overall $29 million being spent on its Kentucky net- financial analyst (CFA) with CFA Institute (formerly Associa- work this year, which will also include building several new tion for Investment Management & Research). Rosenberger cell sites, among other initiatives. started his career with Manning & Napier Advisors Inc. in 1976 as a security analyst and portfolio manager and in 1984 ■ Kentucky’s seasonally adjusted preliminary unemployment co-founded Clover Capital Management Inc. Rosenberger, a rate fell to 10.7 percent in March 2010 from a revised 10.9 resident of Pittsford, N.Y., now manages his personal hold- percent in February 2010, according to the Kentucky Educa- ing company, Lily Pond Ventures LLC. tion and Workforce Development Cabinet. March 2010’s job- less rate is .6 percentage points higher than the 10.1 percent rate recorded in March 2009 for Kentucky. “Kentucky’s econ- SUBMISSIONS WELCOME omy showed some signs of stabilization in March 2010. How- To submit news and photographs ever, the employment gains are inflated by employees at a for publication in Fast major manufacturer returning to work after a temporary lay- Lane, please mail information to: The Lane Report, 201 East off and temporary hiring at a federal agency engaged in data Main Street, 14th Floor, Lexington, KY 40507-2003 or send collection efforts,” said Dr. Justine Detzel, OET chief labor via e-mail to [email protected]. market analyst. The U.S. seasonally adjusted jobless rate Color photographs are preferred, either in standard form remained at 9.7 percent from February 2010 to March 2010, or digital. For digital photographs, a resolution of 300 dpi is according to the U.S. Department of Labor. required, formatted in either jpeg or tif.

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INTERSTATE LANE Business news from Indiana, Ohio, Tennessee and West Virginia

BUSINESS BRIEFS INDIANA: HEARTLAND EXPANSION WILL CREATE 265 NEW MANUFACTURING JOBS INDIANA ■ Jasper Engine and Transmission Exchange has transferred EARTLAND Recre- 100 percent of its stock to the company’s employees, who have ational Vehicles has formed a new company – Jasper Engine and Transmission announced plans to Hexpand its operations in 100% Employee Stock Ownership Plan. Jasper President and CEO Doug Bawel said, “We are so proud of what our associ- Elkhart, Ind., creating up ates have built the last 68 years. We wanted to have a method to 265 new jobs by 2013. to reward our people for their efforts, preserve the jobs in the The company, which communities of southern Indiana and Willow Springs, Mo., manufactures fifth wheel, along with passing along the Jasper Legacy. It was a natural fit lightweight and extended and the right thing to do.” stay RVs will invest more than $2.6 million to pur- Ford Motor Company photo OHIO chase and equip a 125,000-s.f. manufacturing facility. Heartland ■ Ford Motor Co. is invest- announced in February that it has purchased the remaining ing $155 million and trademarks of the towable brands of Fleetwood Enterprises Inc., adding 60 jobs at its Cleve- which filed for bankruptcy protection in 2009. land operations to build a “Elkhart’s recreational vehicle industry continues to show new fuel-efficient V -6 resilience in the face of a tough national economy,” said engine for the 2011 Mus- Mitch Roob, Indiana secretary of commerce and CEO of the tang. The investment and Indiana Economic Development Corp. “Heartland’s invest- jobs at the Cleveland ment further proves that Elkhart’s traditional industries will Engine Plant No. 1 brings the company’s investment in pow- play an equal part with emerging sectors in bringing new ertrain engineering and facility upgrades in North America opportunities to this region.” to $1.8 billion to support its 2011 vehicle launches – with Heartland employs more than 1,000 associates across more to come. The total number of jobs being added as part north-central Indiana and plans to begin hiring additional of these investments is 1,260. manufacturing and supervisory associates immediately as the new product lines are phased in. The acquisition of the for- ■ General Motors is mer Fleetwood brands will allow Heartland to expand into adding a third shift markets in the western United States.

at its Lordstown, GM photo “Our ability to gain ground in a down market has clearly Ohio, complex, positioned Heartland to make a tremendous market share gains adding 1,200 jobs to and further grow our dealer body in 2010, said Heartland Pres- support production ident and CEO Brian Brady. “This is shaping up to be the best of the new 2011 year in our history.” Chevrolet Cruze compact car. Production will begin in the third quarter and will increase the Lordstown workforce from 3,300 to 4,500. OHIO: GE AVIATION ANNOUNCES PLANS FOR NEW ELECTRIC POWER R&D CENTER TENNESSEE ■ Musical instrument distributor KHS America is moving E Aviation has announced plans to create an Electri- its headquarters from Austin, Texas, to the Nashville area, cal Power Integrated Systems Research & Develop- where the company is building a new 100,000-s.f. facility . ment Center (EPISCENTER) near Dayton, Ohio. KHS President Tabor Stamper said the Nashville location, GThe center will be directed at several markets including which will create 54 new jobs, is centrally located to more on- and off-highway hybrid and electric vehicles, more elec- of the company’s customers and will provide a strong base tric aircraft and marine applications. from which to grow. KHS distributes Jupiter wind instru- “The close proximity to the University of Dayton ments, Mapex drums, Majestic concert percussion and Research Institute, Wright-Patterson Air Force Base, and its Altus flutes. Air Force Research Labs was a big part of GE’s decision to come to Dayton,” said Vic Bonneau, president of Electric WEST VIRGINIA Power for GE Aviation Systems. “This center will be used to ■ Armstrong World Industries is investing up to $35 million design products that will deliver electrical power efficiently to build a 30,000-s.f. mineral wool plant in Millwood, W. Va., for our military and commercial customers.” that will employ up to 45 permanent employees. Mineral wool GE Aviation currently has more than 1,000 employees at is a key raw material used in the manufacture of Armstrong’s facilities in the Dayton area. The company is working closely acoustical ceiling tiles. Armstrong said the West Virginia site with the University of Dayton Research Institute as a collab- was selected because it was easily accessible to raw material orative research partner on the venture. The project will cre- suppliers as well as other Armstrong ceiling manufacturing ate 10 to 15 new jobs in the first year , with the potential of locations. Armstrong also operates a flooring plant in Beverly, an additional 100 to 200 jobs depending on future contracts. W.Va., that employs nearly 700. GE expects EPISCENTER operations to begin in 2012.

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KENTUCKY INTELLIGENCER®

A sampling of economic development data

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CORPORATE MOVES New leadership for Kentucky businesses

ACCOUNTING EDUCATION INSURANCE ■ Christopher Gilles has been appointed ■ Dr. A. Gordon Emslie has been ■ Chris Hall has joined Marsh’ s senior staff in the tax business unit of named provost and vice president for Louisville office as vice president, Crowe Horwath’s Lexington office. academic affairs at Western Kentucky national brokerage producer. University. ARTS TECHNOLOGY ■ Joseph Mechavich has joined The ■ Silas House has joined the faculty of ■ Jerry Bowman has been named chief Kentucky Opera as music director and Berea College as the National Endow- operating officer of Beacon Enterprise principal conductor. ment for the Humanities Chair in Solutions Group Inc., a Louisville informa- Appalachian Studies. tion technology infrastructure company.

■ Dr. Janna Vice has been appointed UTILITIES provost and vice president for academic ■ Mike Williams has been promoted to affairs at Eastern Kentucky University. president and chief executive officer of Blue Grass Energy, a Nicholasville-based not-for- HEALTHCARE profit electric cooperative. Williams previ- ■ James A. Miller has been appointed ously served as senior vice president and executive vice president and chief oper- chief operating officer and succeeds Dan ating officer for Danville-based Ephraim Brewer, who has retired from the company. McDowell Health. Joseph Mechavich Joe Kenney WORKFORCE DEVELOPMENT ■ Benjamin A. Br eier has been ■ Sally Evans has been named executive BANKING appointed chief operating officer of director of administration for Experi- ■ Joe Kenney has been promoted to assis- Louisville-based Kindred Healthcare. ence Works Inc., a nonprofit training tant vice president, financial center man- Breier succeeds Frank J. Battafarano, and employment organization. Billy ager of American Founders Bank’ s who has retired from the company. Wooten has been named executive Southland Financial Center in Lexington. director of program operations.

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ON THE BOARDS New leadership for Kentucky organizations

AMERICAN ASSOCIATION Louisville. Deaton is president and chief ing for PrimeDP LLC, a drug develop- OF COMMUNITY COLLEGES executive officer of Central Bank. ment company, and bioLOGIC Corp ■ G. Edward LLC, a life science accelerator. Hughes, president BLUEGRASS AREA and chief executive DEVELOPMENT DISTRICT GREATER LOUISVILLE INC. officer of Gateway ■ The Bluegrass Area Development Dis- ■ Greater Louisville Inc. – The Metro Community and trict has named the following individu- Chamber of Commerce has announced Technical College, als to its executive committee for the its 2010 board of directors and execu- has been elected to coming year: Anderson County – Mayor tive committee: Chair – Bob Lekites, the board of direc- Edwinna Baker (treasurer), Bourbon president of UPS Airlines; Immediate tors of the Ameri- County – Judge-Executive Donnie Foley Past Chair – Chuck Denny, regional can Association of (secretary), Boyle County – Judge-Exec- president of Kentucky/Tennessee Bank- Community Col- G. Edward Hughes utive Harold McKinney, Clark County – ing for PNC Bank; Incoming Chair – leges for a three- Dodd Dixon, Estill County – John Shep- Mary Pat Regan, president and CEO of year term beginning in July. herd, Fayette County – Mayor Jim New- AT&T Kentucky; Treasurer – John berry, Franklin County – Linda Magee, Hawkins, managing partner of Deloitte; AMERICAN COLLEGE OF TRUST Garrard County – Judge-Executive John Secretary – Kennedy Helm, chairman of AND ESTATE COUNSEL Wilson, Harrison County – Mayor Jack Stites & Harbison PLLC. Scott Trager, ■ Glen Bagby, a partner in the Lexing- Keith, Jessamine County – Ben Brown, president of Republic Bank & Trust Co., ton law office of Dinsmore & Shohl, has Lincoln County – Judge-Executive Bill was appointed to the executive commit- been appointed regent of The Ameri- Demrow, Madison County – Mayor Con- tee. Five new members were also can College of Trust and Estate Counsel. nie Lawson (vice chair), Mercer County appointed to GLI’s board of directors: The Board of Regents is ACTEC’s gov- – Phil Crump, Nicholas County – Judge- Denise Spalding, president of Allegra erning body and has approximately 40 Executive Larry Tincher (chair), Powell Print & Imaging-East; James Clay Smith, members. As a regent, Bagby’s responsi- County – James Caudill, Scott County – president of Central Bank of Jefferson bilities will include working with fellow John Fitch, and Woodford County – Co.; Kevin Flanery, president of members to improve and reform, pro- Floyd Greene. Churchill Downs Racetrack; Dan Bar- bate, trust and tax laws and procedures. bercheck, president and CEO of red7e; CENTER and Michael White, president and CEO AMERICA’S BLOOD CENTER FOR RURAL of America’s Finest Filters. ■ Kentucky DEVELOPMENT Blood Center ■ Garrard County HOSPICE OF THE BLUEGRASS CEO William Economic Devel- ■ Hospice of the Bluegrass has Reed has joined opment Director announced its board officers for 2010: the board of Nathan Mick has Chair – Darryl K. Love, Ashland Inc.; directors of been appointed to Vice Chair – Laura Tanno Boison, E.S. America’s Blood serve on The Cen- Barr & Co.; Treasurer – Melba Bjorn- Centers. Reed will ter for Rural Devel- son, Villa Hills; and Secretary – Wood- serve a three-year opment’s board of Nathan Mick ford Webb, The Webb Companies. term as a director directors. Randy LeMay (Lexington Clinic) and of the organiza- William Reed Jen Shah (Dean, Dorton and Ford) have tion, which is CERTIFIED ASSOCIATION been named to Hospice’s board of made up of 77 blood banks that ser ve EXECUTIVE COMMISSION directors. more than 3,500 hospitals in the ■ John A. Ruffin, president and chief United States and Canada. executive officer of Lexington-based KENTUCKY BANK AMR Management Services, has been ■ Kentucky Bank has named Carolyn BI-STATE BRIDGE AUTHORITY appointed to serve on the Certified McDonald to its regional board of direc- ■ Gov. Steve Association Executive Commission. tors for Woodford County. McDonald is Beshear has a Realtor with Rector Hayden Realtors. appointed Lex- GATEWAY COMMUNITY AND ington banker TECHNICAL COLLEGE FOUNDATION NATIONAL COUNCIL Luther Deaton Jr. ■ Margaret M. FOR THE SOCIAL STUDIES to the Bi-State van Gilse has ■ Dr. John Moore, associate professor in Bridge Authority, joined the board Western Kentucky University’s School the group of directors of the for Teacher Education, has been elected charged with Gateway Commu- vice president of the National Council developing a nity and Technical for the Social Studies. NCSS is the financing plan to Luther Deaton Jr. College Founda- largest association in the countr y ensure construc- tion. Van Gilse is devoted solely to social studies educa- tion of two bridges between Louisville vice president of tion, with more than 17,000 members in and Indiana and the reconstruction of business develop- all the 50 states, the District of Colum- the Kennedy Interchange in downtown ment and market- Margaret M. van Gilse bia and 69 other countries.

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LANE ONE-ON-ONE Kentucky’s leaders express their opinions

SEEING OTHERS SUCCEED IS GRATIFYING company and asked Tracy Farmer to be my first client. That’s how I launched Publisher Ed Lane discusses how he came to Central Kentucky, my business and real estate firm – Lane and Associates. I will always appreciate went into business, started a magazine and entered politics the fact that Tracy Farmer recruited me to Kentucky and helped me start my BY MARK GREEN first business.

MG: When and why did you decide to Editor’s note: During the past 25 years, The chised Long John Silver’s Seafood Shops start The Lane Report? Lane Report has not quoted or provided nationwide. For five years, I helped man- EL: Our firm was the only full-service news coverage about Ed Lane, the magazine’s age the acquisition of real estate for Long commercial real estate company in cen- publisher. On the occasion of The Lane John Silver’s restaurants in 35 states. tral Kentucky. After a few years, people Report’s 25th anniversary, the editorial staff In 1980, I was offered a job in Lex- started contacting us and asking for decided to make an exception to this policy in ington by Tracy Farmer, a banker and information about the Central Kentucky order to conduct this interview. entrepreneur. I was very familiar with area. We developed the idea to publish a Lexington, having visited Jerrico’s cor- community economic profile called The Mark Green: What is your professional porate headquarters many times. Lex- Lane Report. The report provided infor- background and training as it relates to ington was a great community then mation on new development, employ- journalism and magazine publishing? and I thought the move here was a ment levels, population trends, vacancy Ed Lane: My major in college was journal- great opportunity. I was the president rates, etc., and became a valuable tool ism; I received an ABJ (Bachelor of Arts in of Farmer Enterprises – a firm owned for people managing businesses and companies interested in moving to Ken- Ed Lane tucky. Initially, The Lane Report was pub- Ed Lane is publisher of The Lane Report, which lished two times a year. he founded 25 years ago. It is a monthly mag- azine that is Kentucky’s only statewide busi- MG: How did it become a monthly pub- ness news periodical. It is the flagship of Lane lication? Communications Group, which also includes EL: American City Business Journals Prep Magazine covering Kentucky’s restaurant started Business First of Louisville, and and hospitality industry, BG – A Way of Life, that piqued my interest because our which targets young professionals and cre- firm received so much positive feed- atives in the Bluegrass region, and a variety of back about The Lane Report. I started annual and biannual business and economic thinking perhaps we could start a busi- development publications targeting specific ness newspaper in Lexington. I did call Kentucky industries and regions. Lane is CEO in a consultant who suggested a city of of Lane Consultants, a commercial real estate at least one million was required for a brokerage, and he is a three-term elected business newspaper. Our consultants member of the Lexington-Fayette Urban suggested that we convert The Lane County Council. He is a member of the Ken- Report from an economic profile to a tucky Arts Council, secretary of the Lexington- quarterly business magazine. The first Fayette Airport Board and a member of the year we published quarterly, the second Lexington Downtown Development Author- year we came out six times, and the ity. Lane is vice chairman of the LFUCG third year we went monthly. Finance Committee and a member of the LFUCG Internal Audit Committee. MG: Did you have specific long-term expectations or goals for The Lane Report? EL: I thought the magazine would be a Journalism) degree from the University of by Farmer and involved in business valuable tool for our community – a Georgia. I was an intern with an affiliate of acquisitions and the development of good source of business information BBDO advertising agency in Atlanta while real estate. and a demographically targeted adver- in college. When I graduated, I worked for tising medium. But The Lane Report has Compton Advertising in New York City, MG: At what point did you go into business? grown quite a bit more over the last 25 which was a major Proctor & Gamble EL: During the early 1980s, the U.S. years than I initially expected. Our edi- agency and at that time, one of the top 10 economy was suffering from what was torial coverage went statewide in 1997. marketing firms in the world. called “the misery index” – high infla- Our reporting touches every part of the tion, interest rates and unemployment. state, and the response from our read- MG: What brought you to Central Ken- Those economic conditions made it ers has been very enthusiastic. People tucky and why did you decide to stay? more attractive to invest in T-bills and really like to read our magazine, and EL: Before I moved here I worked in the bank CDs and less inviting to develop advertisers invest because it’s a very Atlanta regional office for Lexington- new business opportunities. In 1981, I cost effective way to reach the top lead- based Jerrico, which developed and fran- decided to start my own consulting ers in Kentucky.

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LANE ONE-ON-ONE

MG: How long did it take for the maga- be made. Being one step behind the February 2005. Dr. Clark died on June zine to become profitable? leading edge is the way to go. Software 28, 2005, and was over 100 years old. His EL: It took a while. In the early ’90s, when and hardware are then almost state-of- recall of facts during the inter view was the U.S. economy was in a major reces- the-art, the glitches are gone and the amazing. During my interview, I asked sion, our sales dropped and several people cost is less because newer technology Clark what was the most important tech- in the company said why don’t we just save has driven the price down. nological advance made in the United money and quit publishing The Lane States or in the world during his life- Report. Something told me the future of MG: What’s the background of the One- time. He said “electricity.” The Lane Report was going to improve. After on-One interview? That was an insightful answer. When some soul searching, I met with our staff EL: In the beginning, we did not present you think about it, without electricity and said our strategy would be to publish one-on-one interviews. I initiated the our country would be in a serious The Lane Report come hell or high water. interview because there was an extended predicament. No credit cards, comput- Our new goal would be to publish an even period in Lexington when the community ers, telephones, cell phones, Twitter, better magazine and to have a long-term was drifting and there seemed to be a vac- streaming video, traffic controls, gaso- financial commitment to succeed. uum of leadership in government and line pumps, medical services, etc. Every- business. The one-on-one would ask lead- thing in America today uses electricity. MG: The Lane Report is known for its ers in the community about where they Dr. Clark had an unusual perspective quality. How did you develop criteria stood on issues of importance. Over a because he was born and lived on a farm for an effective visual magazine presen- period of time with many leaders speak- in east-central Mississippi before there tation? What are the key elements? ing out, the interviews were helpful to the was rural electric service. EL: Being visually appealing is important. community in building a consensus on The big mistake many publications make what the priorities of Lexington and Cen- MG: What differentiates The Lane Report is that they are not very interesting to look tral Kentucky should be. in the marketplace? at. Our editors and designers tr y to pro- EL: The magazine is written for top man- vide a lot of photos, graphics and charts so agers of business, government and the the articles are interesting to read. I look professions. The information is presented at each magazine we publish, but I’m not a in an executive summary format. Business great graphics designer. leaders can read our publications and get This reminds me of the Supreme Court a really clear and concise overview of judge who said, “I don’t know how to what’s happening around the state. Circu- define pornography but I know it when I lation is statewide so an advertiser can see it.” I’m not a designer, but I know a reach top leaders throughout Kentucky good cover when I see it. Over the years, with one ad once a month; that’s a very our staff has worked with some of the best cost-effective marketing investment. The design people in the business, and each Lane Report has a large and significant one has added another quality touch to the pass-a-long readership because our read- publication. We try to continually upgrade, ers find it so valuable they route it making every issue better than the last one. through their office and put it in public areas in their businesses. MG: The publishing industry has had major technology changes in the past 25 MG: What has been the most gratifying years. What have been the impacts on part of operating The Lane Report? The Lane Report? Ed Lane, right, with Col. Harland Sanders, EL: There have been many occasions EL: The first magazine issue of The Lane the founder of Kentucky Fried Chicken who where we profiled a man or woman in our Report was designed on a computer, and passed away in 1980. state who had done something excep- that was in 1988. We were early into the tional or started a business. The news arti- computer age – from computer design to When The Lane Report went statewide, cle provided them some initial exposure computerized production. Technology the same approach continued. I tr y to and publicity. A few years later and they’ve allows our designers to go direct from talk with the top people in our state and grown their business and become very the computer to the (printing press) solicit their ideas and suggestions, with successful. That’s very exciting when you plate and to use four-color on every page a focus on the future. Interviews do take see that happen to an entrepreneur. we publish. We can now publish in four- a lot of effort, but I’ve found it to be one The Lane Report also promotes educa- color for what it used to cost in black- of the most rewarding experiences as tion and the arts. The future of Ken- and-white. Publishers Press has been a publisher because I’ve had the opportu- tucky’s economy is a well-educated great partner for two decades and has nity to speak with many of the brightest workforce. Better educated Kentuckians allowed our magazine to excel. and most successful people in Kentucky will make our state more competitive in and to hear what they have to say. I find the global economy. MG: Is there a formal process for deter- that very enriching. mining when it is time to adopt a new MG: Did you have any key mentors in technology? MG: Do you have any favorite inter- your professional life? EL: You never want to be on the leading views or subjects? EL: Most of my mentorship was in early edge. When technology is in alpha EL: One of the most intriguing was the positions with larger companies. Sug- mode, there are usually a lot of glitches interview of Dr. Thomas D. Clark, the gestions on dress, grooming and per- and refinements that probably need to state’s historian laureate, published in sonal appearance, and being energetic

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and enthusiastic about your work – have synergy and be of interest to The District seat. I received very broad-based there were many things I learned in my Lane Report’s readers. Special publica- support. That’s how I got into politics. early business career that continue to be tions are targeted to specific markets very helpful. My parents and family like economic development, workforce MG: What ideals guide you politically? instilled ethical values and a positive development, education, research, EL: A couple of points. America is an outlook on my life and future. healthcare, education, food service, hos- exceptional country. This has been pitality, tourism and travel. proven to me by the many people who MG: How has the Kentucky business have come to Kentucky from foreign world changed since 1985? MG: You are a three-term member of lands with just $50 or $100 in their EL: The most significant event was state Lexington Urban County Council, pub- pocket. After working hard and saving legislation allowing banks to own and lisher of The Lane Report, and principal money, they start and build a business, operate branches outside of their home of a commercial real estate services their kids earn college degrees, and they county. Local banks started expanding firm. How do you manage your time? own their own home. They have been and acquiring other banks. Out-of-state EL: Managing your time means that you very successful and created a high qual- banks began to acquire Kentucky banks. will have to invest more than 35 to 40 ity of life for their families. This in turn, in my judgment, encouraged hours a week into work. I am fortunate Having seen that happen over and legal, engineering, architectural, CPA, because I really enjoy what I do for a liv- over, I am a very strong proponent of the insurance, energy and logistic companies ing. Secondly, I have really good people free-market system. I believe it creates as well as other types of businesses to focus working with me and managing, editing, exceptional opportunities for anybody on statewide business expansion. Ken- designing and selling our magazines. I willing to work hard and apply themselves. tucky is now a statewide economy. That’s also am learning to delegate more to a The free-market system allows individuals been very good for our citizens. great management team that deserves to make millions of decisions a week on most of the credit for our success. Dele- how much they are willing to pay for prod- MG: The Lane Report maintains a lean gating responsibilities and being willing to ucts and which products they want to buy. overhead. Describe your structure. Has spend extra time each week to make sure It’s important for our citizens to this always been your approach? each aspect of the business is being prop- remember that we now have a free-mar- EL: In today’s economy there’s no such erly managed and energized are key com- ket system in Kentucky and America, thing as a low-overhead business because ponents to being “successfully busy.” and we need to protect it. Freedom is there are many costs you have to incur to one of the great strengths of our coun- operate a business. Because The Lane MG: What led you to enter the political try. Opportunity and freedom are the Report is not published daily and its work- arena? reasons why the brightest people in the loads are variable during each month, we EL: Three particular issues were of con- world come to America. Competition have elected to outsource some ser vices. cern to me. One is that America is a creates better and better products, and Design, circulation data management, republic with a representative form of the free market sets prices – not the gov- research, pre-press, printing and distribu- government. If people are not willing to ernment. I am concerned by the recent tion are outsourced. We found this to run for elective office and represent actions of the federal government that work very effectively. Outsourcing can be constituents, then our cities, states and are taking over more and more of our a good business practice for small and country are in serious trouble. At the economy. This is a threat to the future large companies. time I ran, I felt Lexington’ s city coun- of America. Another important benefit of outsourc- cil needed members who could bring I believe in being fiscally conservative. ing is redundancy. If you are outsourcing good business practices to local govern- One of the problems we have at the local, to a firm that has multiple employees, then ment. I also ran because I was opposed state and federal level is when govern- if one of them is sick, resigns or retires you to the condemnation by the council of ments have surplus money, the politicians still have trained, qualified people with a private business for the financial gain spend it. They don’t save. When an eco- equipment who know your business and of the city. I felt condemnation for nomic downturn like we are now experi- can deliver the same quality ser vice on a financial gain alone was an inappropri- encing arrives, government should have uninterrupted basis. ate action for the city council to take. money in the “rainy day” account to sup- plement the downturn in tax revenues. MG: What have been the key lessons MG: Did anyone ask you to get involved I highly recommend that ever ybody you’ve learned running the magazine? in politics or was that something you ini- vote for political representatives who are EL: Each magazine has to be treated as tiated? going to protect the free-market system an individual profit center. You can’t say EL: Being in business development and and the constitution of our countr y. If we are going to put out all these maga- real estate, I had always been a strong we do that the future will be bright for zines and we’re going to make a profit. advocate of merging the former multi- our children, grandchildren, our coun- Just like any product any other company ple economic development agencies of try and way of life. ■ makes, you have to evaluate your over - Lexington into one entity. I was very head, expenses and profit for each mag- impressed when Louisville created azine issue published. Greater Louisville Inc. When Lexing- Mark Green is ton’s economic development entities editorial director of MG: You now have a family of publica- decided to merge into one group, I felt The Lane Report. tions associated with The Lane Report. like this was a really good omen for the (editorial@ How did that come about? future of central Kentucky. Several busi- lanereport.com) EL: Our core publication is The Lane ness people and leaders asked me if I Report; any magazines we’ve added must would consider running for the 12th

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EDUCATION

Chris Floyd/Centre College photo

Centre students traditionally line up for Commencement in front of Old Centre, the High-Impact college’s original building, completed in 1820. Supreme Court. The epic 1921 Praying Colonels team took down the then- titans of college football, Harvard, 6-0 in what the AP in 1950 deemed the great- Education est sports upset of the half centur y. It hosted the 2000 U.S. vice presidential debate, very much the smallest school Centre College sets the bar high and tops it and town to ever do so. with a culture of enthusiastic achievement Centre students continue to excel academically. The past 10 years have yielded two Rhodes scholars, seven BY MARK GREEN Goldwater and 29 Fulbright winners. Centre has Kentucky’s only Phi Beta Kappa chapter. Beyond the stellar academics, stu- ENTRE College, the little One grad was a professional and dents earning Centre degrees typically Presbyterian liberal arts political mentor to Abraham Lincoln, emerge from the campus culture school in pastoral Danville, advising the state’s most famous son to imbued with an activist urge to get rakes in the accolades annu- study law and loaning him the books involved and make a contribution to the ally. Its alumni ranks have when he was still a lanky young man world. Certainly their impact on the life Cbeen storied since its founding in 1819 seeking direction in life. Another of the commonwealth is larger than that with Isaac Shelby, Kentucky’s first gover- became the youngest vice president in of most 1,215-student colleges. A “Cen- nor, chairing its board. U.S. history. Two served on the U.S. tre mafia” – an affectionate term – can

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be found in leadership roles in business games and performances unrelated to in another country for a semester. It’s and civic life. their classes, to have students come to rated one of the five best such programs And former students remain dedi- their homes for dinner. in the United States. cated to their alma mater. For the past “They didn’t just do their job,” Ely Warner, of Lexington, spent the fall 25 years, Centre has had the highest said. “They took it to a completely dif- of 2007 in Strasbourg, France, with a rate of alumni donations in the United ferent level.” group of fellow students. A Centre his- States. While most colleges and univer - Told about Ely’s bouncing professor tory professor taught two courses, while sities get contributions from fewer than anecdote, Chase Warner, current stu- French citizens taught courses on the 10 percent of their alums in a given year, dent body president, said, “One of my European Union and the Council of Centre alumni twice set the standing teachers does the same thing. They are Europe government, French culture national record: 74.5 percent. so excited. They put a lot of enthusiasm and French language. Clearly this little school operating in into teaching.” Warner declared a French major and Kentucky’s rolling heartland manages to Warner shared his own anecdote graduates this semester. He also has lots maintain an academic culture at a level from a classroom experience he said of science coursework and has been few others ever attain. happened earlier in the day when he was accepted conditionally into the Univer- Centre Presi- interviewed. A student in biology class sity of Kentucky College of Pharmacy dent John Roush had mentioned having a sick fish, and School for the fall of 2012. First he will today cites the their professor go to New Zealand on a Rotar y Ambas- quality of the fac- used that as a sador scholarship. ulty and the care teaching opportu- Centre College’s small size means with which they are nity. The class is lots of interpersonal interaction and integrated into the now culturing a connection, Warner said. “You thrive on college’s activist sample from the that. You look for that,” he said, and culture of high fish’s tank in hope “you develop people skills.” expectations as a of identifying the Ely said he continues to feel the key best practice. John Roush, president, origin of its illness. impact Centre had on him pretty much “We value Centre College The active daily. When he encounters other Centre scholarship. We engagement prac- Chase Warner, grads, which happens regularly in honor scholarship,” Roush said, “but to ticed by faculty president, Centre Louisville because the greater Jefferson be a successful faculty member here you becomes instilled Student Body County area sends the most students to must be an outstanding teacher.” into students, Danville, he assumes that he will be Hiram Ely III, an attorney with the Warner said. “You incorporate that into working with someone who is intelli- Greenebaum Doll McDonald law firm how you do presentations.” gent, has intellectual curiosity, is inter- in Louisville and president of Centre’s Students engage, too, with service ested in public service and has “a desire alumni board, recalls a professor so projects that involve charitable or pub- to make a difference in a positive way .” enthused with his subject matter – phi- lic service. And then perhaps the most Roush cites the culture Centre culti- losophy – that he’d literally bounce off influential components of Centre’s vates and nurtures as a key best practice the floor into the air during lectures. engagement-with-the-world package is that creates the school’s success. He “Every class I its study abroad program. Eighty-five teaches one course a year himself, Rain- had at Centre had percent of students participate, some making: The Study of and Preparation an outstanding pro- more than once, immersing themselves for Leadership. fessor,” Ely said. “I can’t think of a sin- gle exception.” It made an impact also that when Ely arrived on campus for the Hiram Ely III, first time in fall of president, 1969, the dean of Centre Alumni Board students greeted Chris Floyd/Centre College photo him by name although they’d never met. The dean had done his homework with the face- book for incoming students. “He knew a lot about me, not just my name.” A strong connection between faculty and students is a key element of the Centre campus culture. Class sizes are small, averaging 18 to 19, so that each student can be actively engaged. At Cen- tre, though, the link extends beyond the classroom. Professors are known to call to check on a sick student, to attend Centre's new Campus Center opened in fall 2009 to rave reviews.

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EDUCATION

Chris Floyd/Centre College photo makes it a special, his foot involuntarily Best Liberal Arts Colleges for Under- stamps the floor as he makes a point. graduate Teaching; and No. 7 for per- He does not make a habit of touting the centage of students studying abroad. various lists that flatter the college. Brag- • Consumer Digest: No. 1 value in the gadocio is not Centre’s style, plus Roush nation among private liberal arts colleges. sees little real significance in individual lists • Kiplinger’s Personal Finance: No. 29 and rankings. What he does admit to enjoy- among all U.S. private liberal arts col- ing is the impression and conclusion one leges on Best Value list. can’t avoid when entity after entity deems • Princeton Review: Named an “out- the school to be one of the top post-sec- standing undergraduate educational ondary operations in the country. opportunity” for 2010. “I have been critical of these rankings Over the years Centre has educated forever,” Roush said. “That said, when you 11 governors, 13 U.S. senators, 43 U.S. start to appear on all of them, as Centre representatives and 10 moderators of does, it sends a signal that Centre College the General Assemblies of the Presbyte- In 2000, Centre hosted the Vice-Presidential Debate has become one of those very special rian Church. It produced the late, between Dick Cheney, facing, on left, and Joe Lieber- places for undergraduates in America.” He beloved voice of the Kentucky Wildcats, man. After the event, Janet Brown, executive director of the Commission on Presidential Debates, adds quickly though, “That’s not a new Cawood Ledford. said the College “has set the standard by which other phenomenon.” “The faculty who work here see them- debates will be judged.” Norris is less reluctant to inform those selves as mentors not just teachers,” Roush who inquire how Centre ranks. He’s com- said. “What we do here in terms of our “John is a coach and a motivator, and piled a Rankings Roundup of the praise. undergraduate teaching is best practice. he knows how to bring the best out of From just the past few years, it includes: … What we do with our Study Abroad pro- people,” said Mike Norris, director of • Forbes magazine: No. 13 among all gram is off the charts. … Visual and per - communications at Centre for the past U.S. colleges and universities in 2008; forming arts is best practice.” 30 years. Roush was a three-time aca- No. 14 in 2009; Best Educational Insti- Another best practice, said Roush: demic All-American football player tution in the South in 2010. “We know how to raise money.” when he attended Ohio University. • U.S. New & World Report: No. 46 Ely said strong alumni loyalty to Cen- Roush’s enthusiastic for Centre is read- among top 50 liberal arts colleges in the tre is tied directly to the experience they ily evident. Sitting and discussing what United States; No. 11 in the nation for enjoyed as students. “I am amazed … at

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the impact the school still has on my John Todd Stuart, Class of 1826, life,” said Ely, who is back on campus was a major influence on President several times a year. Lincoln, steered him to the law and The ability to raise money has allowed into politics and was a cousin of Mar y Centre to engage in an $85 million con- Todd Lincoln. struction campaign in recent years. Since John Breckinridge, Class of 1838, was 2005, Crounse Hall, the main academic elected vice president in 1856, became building and home of the campus librar y, secretary of war of the Confederacy and

has been expanded and renovated; a new a later vigorous opponent of the Ku Chris Floyd/Centre College photo Campus Center and residence hall have Klux Klan. been constructed; the Norton Center for John Marshall Harlan, Class of 1850, the Arts has been renovated; so has the Sut- while associate justice on the U.S. cliffe Hall athletics and fitness center; and a Supreme Court for 34 years, cast the 40,000-s.f. addition to the Young Hall sci- lone dissenting vote in Plessy v. Fergu- ence building is nearing completion. Pearl son 1896. The text of his dissent became Hall, a LEED Gold-certified residence hall, the basis for Brown v. Board of Educa- opened last year. tion in 1954. Roush said he did not expect to preside Frederick Moore Vinson, Class of over a construction campaign, but the 1909, Law 1911, was 13th Chief Justice alumni board got excited and kept raising of the Supreme Court 1946-53. He held money once it got started a few years ago. several positions in Franklin Roo- The school has what its president sevelt’s administration and helped refers to as a “Mighty Mouse” attitude of found the International Monetary taking on challenges out of proportion Fund. to its size – and succeeding. The 1921 football team was led by Reflecting on the college’s perform- All-American Bo McMillan. ■ ance, he said, “I believe in luck, but I a lso believe luck favors the well prepared.” Mark Green is editorial director of Dr. Sarah Goodrum, left, associate professor Oh yes, about those references at the The Lane Report. He can be reached at of sociology at Centre College, works with two top of the article: [email protected]. of her students. May Lane 31-60.qk:Layout 1 5/6/10 11:37 AM Page 38

WORKFORCE DEVELOPMENT Re-Engineering Staffing Examining business processes Although layoffs have become com- monplace during the recession, experts say they are part of a predictable boom/bust cycle most businesses undergo throughout their lifespans. “You’re always wanting to toss out the things that don’t need to be done,” said Joe Labianca, an asso- ciate professor of management with the University of Kentucky’s Gatton College of Busi- Joe Labianca, ness and Econom- Associate Professor ics. “In times of of Management, crisis, the process UK Gatton College of is accelerated. Business and Economics Absolutely, it can lead (a company) to being more productive.” “During good times, companies get fat,” said Michael Bechara, managing director of Granite Consulting Group Inc., a Brewster, N.Y.-based management Recessionary layoffs allow healthcare companies consulting firm. “They add staff, they add costs, they increase marketing to sharpen their business processes budgets. Things that aren’t absolutely necessary end up being a part of the company’s costs.” BY ROBERT HADLEY The staff bloat is not always noticeable until a business faces pressure to cut costs, which often occurs during a recession. HEN two of the housekeeping workers under an agree- “I think the state’s largest health- ment with Aramark. Under this agree- growing economy sector employers, ment, 250 additional workers and revenues Humana Inc. and contracted by two other vendors would were covering up Jewish Hospital and become Aramark employees. Days later, a lot of poor busi- St.W Mary’s HealthCare (JHSMH), JHSMH announced an additional (and ness practices and announced staff layoffs just weeks separate) cut of 500 more jobs across delivery systems,“ apart, it went almost unnoticed as just the organization through a combina- said Don V an- one more piece of evidence that the tion of attrition and layoffs. pool, owner of recession economists had told us was In both cases, the companies had Vanpool Consult- over was, in fact, not over. seemed to almost do the miraculous. ing, a Waukesha, Don Vanpool, Owner, But with both companies, something One was eliminating jobs while creating Wis.-based busi- Vanpool Consulting deeper was going on. Humana didn’t an almost equal amount of new oppor - ness process and simply announce 2,500 layoffs from its tunities, while the other was saving organization adviser. “During the 10,000-member workforce, they also money by bringing in a third-party ven- recession, with the credit crunch and announced 1,100 new jobs would be dor, an almost counter-intuitive move. lower revenues, the sins were becom- created, for a net job loss of 1,400. Actually, both companies were doing ing more visible.” JHSMH’s announcement was a bit what experts say has become common Although a typical reaction of many more complex, as it involved workers during this recession’s layoffs: re-engi- businesses facing a tough economy is to contracted through third-party vendors, neering their processes to achieve either trim the payroll or tr y to increase as well as cuts due to attrition. The hos- greater efficiency, lower costs and sales or market share, consultants advise pital company announced it was out- higher productivity, without compro- sourcing 250 foodser vice and mising customer service. Continued on page 40

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WORKFORCE DEVELOPMENT

Continued from page 38 the number of ity concerns, Gessel declined to disclose people who are the names of the other bidders or the examining your business processes first, unemployed and amount the system stands to save from before you look at sales or infrastructure. don’t have outsourcing foodservice and house- The Six Sigma management strategy employer-spon- keeping functions. developed in the 1980s remains effective sored insurance.” According to Gessel, Aramark stood for many. Six Companies out because it has provided similar serv- Sigma provides a facing economic ices to 1,000 other hospitals and nursing discipline frame- pressure often homes across the country. Gessel specif- work for examin- look to downsize, ically cited Aramark’s expertise with a ing business although a Tom Gessel, Senior Vice room-service style “meals-on-demand” processes, said tougher business President with JHSMH program for patients, plus best practices Vanpool, who has climate does not always signal that training for pest-control procedures, as a U.S. Army back- there is less work to be done. In competitive advantages. ground, a Univer- Humana’s case, there was a business Aramark spokesman Chris Collom sity of Chicago reduction (fewer insurance customers) said JHSMH committee members were MBA and worked behind its choice to downsize. For Michael Bechara, swayed when they visited another client, for years with GE Managing Director, JHSMH, the opposite was true: There St. Vincent’s Hospital in Indianapolis, Capital. In a nut- Granite Consulting were more (uninsured) customers. and saw Aramark processes in action. shell, Six Sigma Group Inc. To cut costs, companies can orches- An evaluation of processes likewise advises looking at trate layoffs in one of two ways, Bechara played a role in Humana’s decision to your product from the customer’s point explained. A head-count-driven layoff eliminate staff. of view. Business processes typically means a company can arbitrarily state it “The workforce reduction is include everything from product devel- wants to cut a certain number of work- intended to create a more efficient, opment and manufacturing to sales and ers from the payroll. agile infrastructure while providing the delivery to the customer, as well as the “Clearly, the better way is to look at resources required to invest in new generation of cash back into the business. employees’ functions, salary and what growth opportunities,” T urner “Anything a customer won’t pay you they’re contributing, with the goal of explained. to do is not a value-add,” Vanpool said. cutting (a specific dollar amount) off Although Humana is eliminating “The more you can eliminate those the payroll,” Bechara said. 2,500 positions, the company is adding things from your system, the more effi- Both Humana and JHSMH chose to 1,100, primarily in medical cost-con- cient you are, which allows you to be make dollar-based layoffs after analyzing tainment, pharmacy management and more competitive in the marketplace their companies for workforce efficiency. specialty-benefit products, Turner said. because you can be more competitive Turner said Humana’s downsizing of 2,500 “Already, more than 100 associates on price.” employees was part of an overall strategy whose positions are being eliminated to align its costs with revenue and current are actively interviewing for (the newly Two recent case studies membership levels while cutting adminis- created) positions,” he said. Both Humana trative expenses by $200 million a year. “We’ve made sure all our team mem- and JHSMH JHSMH undertook a six-month bers are offered employment,” Gessel (either directly or process to examine ways to increase effi- said. “They will (however) have to go indirectly) blame ciency and cut costs by combining serv- through the same pre-employment the recession for ices across the entire organization, process (with Aramark) as they would their layoffs. Gessel said. JHSMH includes Jewish with any employer.” “In recent Hospital, Sts. Mary and Elizabeth Hos- Both Humana and JHSMH reported years, Humana’s pital, Frazier Rehab Center, in-patient that the keys to managing employee medical (insur- mental health facility Our Lady of Peace perceptions of the layoff include trans- ance) member- plus several healthcare facilities in parency and frequent communication. ship has Jim Turner, north-central Kentucky. “We tried to use every vehicle we dropped,“ said Director of Media “There were a lot of areas within our could, including face-to-face meetings, Jim Turner, Relations, Humana organization where we had not gone to CEO forums, memos, newsletters, e- Humana’s direc- standardized approaches to providing mails,” Gessel said. “Not everyone reads tor of media relations. “A significant support to our clinical staff,” Gessel e-mail; some people like a paper publi- contributing factor in that decline is the said. “We wanted to see if we could find cation they can hold in their hands.” employment losses experienced by vendor partners that could provide bet- “Carrying out the workforce reduc- Humana customer groups.” ter support in foodservice, nutrition tion gradually over the course of the Tom Gessel, a senior vice president and environmental services.” year, rather than all at once, will enable with JHSMH, pointed to unemployed JHSMH issued a request for proposal the company to adapt,” Turner said. patients who cannot afford insurance (RFP) that drew bids from three ven- “Also, we’ll rely on attrition wherever but still require care. dors, including Aramark Corp., a com- possible, which will further enable the “Over the last seven years, uncom- pany that already had a business company to adjust.” ■ pensated care has doubled within our relationship with JHSMH. Wellspring organization,” Gessel said. “It’s been a Partners LTD (now a part of Chicago- Robert Hadley is a correspondent pretty dramatic shift nationally, and based Huron Consulting) assisted with for The Lane Report. He can be reached we’re seeing that shift locally in terms of the RFP processes. Citing confidential- at [email protected].

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EDUCATION

Dr. Stephen Wilson leads a class discussion in a Bardstown associate class that was taking place at a local industry.

make-up dates – students earn an associate degree. If they begin with an associate degree, that same time period yields a bachelor’s degree. “Every single class they need to grad- uate is in the evening … and the light bulb comes on,” Imhoff said. It’s fully legit, too, accredited by the Southern Association of Colleges and Schools, the same entity that accredits the University of Kentucky and Univer - sity of Louisville. Credits can transfer to other SACS-accredited institutions. Norton Healthcare in Louisville hosts the largest operation. Advantage classes began there in 2007. To date, 38 Norton employees have graduated, 98 were active students in April and a new cohort is beginning this month, said Al Cornish, system vice president for learning and organizational development with Norton and its chief learning officer. The degree program at Norton is in Developing business management, which is Advan- tage’s primary and most-pursued pro- gram, Imhoff said. Tuition is $315 per credit hour, which puts a 60-hour pro- gram at $18,900. Advantage students, an Advantage however, are eligible for and many receive assistance through the Kentucky Mayfield’s Mid-Continent University’s adult education program Tuition Grant program for private col- leges, she said. grows Kentucky grads by sending faculty to the students For the 2009-2010 academic year, KTG awards range from $200 to $2,964, BY MARK GREEN according to the program’s Web page. Norton employees also can get up to $2,500 annually in tuition assistance as a workplace benefit, said Cornish, who EPLICATING a successful Work and fam- is an Advantage program advocate. formula at dozens of loca- ily duties plus cost “It is part of our leadership develop- tions across the common- and lack of ready ment process,” Cornish said of Advan- wealth, the Advantage access to a school tage. “It also impacts our employee program at Mid-Continent combine to keep engagement and retention.” RUniversity, a small Baptist liberal arts many Kentuckians Norton views the tuition assistance it school in Mayfield, is becoming a work- from pursuing the has put toward Advantage as an invest- force-enhancing, hometown college edu- college education ment that has a positive return, he said. cation option for Kentucky communities. goals they set “We’ve had comments from employ- In April, more than 1,550 adults were aside or never ees that they would never have been taking college courses in 29 Advantage pursued in their Jackie Imhoff able to complete their studies if it were locations, most in Kentucky with others in younger days. VP for Adult Programs not for this program,” Cornish said. southern Illinois. Another 20 groups begin But MCU sends Mid-Continent University Norton’s employees laud the conven- Advantage classes this month. its Advantage pro- ience, he said, as well as the company The secret sauce is simple: gram faculty to the adult student – teens financial assistance. “We’ve removed the barriers that adults need not apply – for accelerated classes face when they want to return to college,” one night a week in a local setting, often- Adults-only education said Jackie Imhoff, vice president for adult times at their workplace. Three-credit- Imhoff became an adult education programs at Mid-Continent U. “Many have hour courses are completed each five advocate and administrator at the urg- given up on college because they couldn’t weeks, and in 20 to 24 months – calendars ing of her husband, Mid-Continent figure out how to do it.” include holidays, breaks and weather President Robert Imhoff.

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“He bought into student is in their late 30s, the adult education Jackie Imhoff said. concept before I The formula MCU employs did,” she admits. today began in the mid-1990s Advantage has when Robert Imhoff was grown vigorously. It assigned to research the subject went from 585 reg- for Belhaven University, a Pres- istrations in 2003 byterian school in Jackson, to 1,851 in 2009. Miss., where he was vice presi- And eight of nine dent. Imhoff soon became pres- Robert Imhoff registrants stay ident at Bethel University , President with the program, another Presbyterian college in Mid-Continent University according to McKenzie, Tenn., and founded MCU’s most recent statistics. From 2003 an adult ed program there. to ’09, annual retention ranged from a When it took off “like wildfire,” he tion, U.S. History, Business Math and low of 82.3 percent in 2006 to a high of enlisted help from his wife, who has a Personnel Supervision. 88.9 percent last year. social work and public school teaching The classes reflecting MCU’s religious Meanwhile, according to projectonstu- background. orientation do not include proseltyzing dentdebt.org, Mid-Continent graduates fin- After three years at Belhaven, they but focus rather on values-based decision ish a degree with $8,805 in student debt – took the lessons of that experience to making, said Robert Imhoff. third-lowest among the 24 Kentucky institu- Mayfield when Robert Imhoff became MCU is leasing space in nearby Paducah tion for which there was information. president of MCU in 1999. They for Advantage at present but recently pur - Beyond sending faculty to the stu- launched the Advantage program at the chased 20 acres along I-24 and has an archi- dent, Advantage pursues an adults-only then-167-student school. tect designing a 45,000-s.f. building that will audience. Associate-degree applicants Since Mid-Continent is a Baptist become the program’s “second face” when must be at least 22 years old, bachelor’s school, a 20-course curriculum includes it is completed late next year. ■ students must be at least 24. Younger one to three classes such as Life of students are not prepared for an accel- Christ or Foundation Issues of Life. The Mark Green is editorial director of erated presentation of material, while remainder are standard higher-ed and The Lane Report. He can be reached at adults desire it. The typical Advantage business fare such as English Composi- [email protected]. May Lane 31-60.qk:Layout 1 5/6/10 11:37 AM Page 44

LEGISLATIVE WRAPUP

UNFINISHED BUSINESS you play out this metaphor. The national political struggle to find commonality may 2010 session ends with few winners be the ultimate reason why no compro- mise was found on the state fiscal plan. A palpable sense of caution is in the air BY SEAN CUTTER both nationally and in Frankfort. The anger and skepticism that has presented itself in the form of the tea party move- RANKFORT is one of the most beau- would allow the ment has put both Republicans and tiful state capitals in our country and commonwealth Democrats on in many ways it is unique in its char - to continue on guard. Action in Facter and stature. However, Frankfort was solid footing. these uncertain surprisingly similar to other state capitals This task cer - times has often this year in that the primar y topic of dis- tainly proved to been met with cussion was the state budget, and terms be more difficult skepticism, and used to explain its fiscal woes may have just than anyone that makes moving as easily been overheard in Tallahassee, could have pre- the common- Topeka or Trenton. dicted. wealth forward The House, Gov. Steve Beshear more difficult. This always tasked with challenging atmos- presenting a budget first, struggled phere may explain Senate President David Williams mightily to prepare a budget devoid of why this state is the revenue assumed by the executive beginning to lose some of its top policy branch and without the usual blueprint makers. Several senior legislators decided provided by the governor. Its version of to call it quits after this year. In a fiscal and the budget included a mix of cuts to political atmosphere where it is becoming existing services and bonding for water, more and more difficult to produce bene- sewer and school projects and was ficial results for your constituents, it is not hailed as a “jobs” bill by Speaker Greg surprising that some have grown frus- Stumbo. This sparse budget was met trated and are looking for new venues in with skepticism by business interests which to serve. who took issue with the method by There were few winners in the 2010 which those projects would be financed, regular session. A special session costs and the Senate, in turn, abandoned the taxpayers about $60,000 a day, and the House’s plan. The Senate’s attempt at a governor has indicated he may call a state budget included even deeper cuts special session to initiate a budget com- in services and was equally unacceptable promise in May. It is difficult to believe to the House. that this prospect will be met by the So we arrived post-session without a public with anything but disregard. Sim- Perhaps hosting large fish in such a game plan for the next two years. ilar situations have caused governors small pond inherently causes friction, but Leaders in and the legislature to rise to the chal- this year, midterm elections and national both the House lenge and above political sparring to politics as well as a lack of money all played and Senate seem find common ground. their part in making this a very rancorous to have taken on There are special challenges to com- session. State leaders gathered to discuss the roles of pleting the unfinished business left and address a budget shortfall spiraling national politi- behind in this session. It is going to take past $1 billion for the first time in Ken- cians who are real leadership on all fronts to meet the tucky’s history. This situation, which was engaged in high- challenges we face today – and success precipitated by a national shift in eco- stakes partisan and could be contingent on selective amne- nomic fortunes, is now on the doorsteps of philosophical sia of the midterm elections and fan- most state capitals across the nation. political battles ■ House Speaker tasies of Potomac River politics. Gov. Steve Beshear threw what that will undoubt- Greg Stumbo many would compare to a passed ball edly shape the out- when he unveiled a budget proposal come of mid-term elections. Senate that included an estimated $750 mil- President David Williams issued a state- Sean Cutter is lion in gaming revenue to stabilize the ment recently that likened Gov. Beshear to director of government ailing biennial spending plan. In cho- President Obama, Rep. Stumbo to relations for the rus, legislative leaders on both sides of Speaker Nancy Pelosi and lauded the fact McBrayer McGinnis the aisle balked at the governor’s plan that there was no Harr y Reid in the state Leslie & Kirkland law and agreed that they would dig deep Senate. However, Sen. Williams and U.S. firm, headquartered in into the state’s beleaguered budget Sen. Mitch McConnell, the minority Lexington. and come up with a compromise that leader, could just as easily be compared if

44 MAY 2010 KYBIZ.COM • THE LANE REPORT May Lane 31-60.qk:Layout 1 5/6/10 11:37 AM Page 45 May Lane 31-60.qk:Layout 1 5/6/10 11:37 AM Page 46

OPINION

A V-SHAPED BOOM IS COMING Recovery numbers are looking solid

BY LAWRENCE KUDLOW

OMETIMES you have to take out recovery in a basically free-market econ- your political lenses and look at the omy that is a lot more resilient than cap- actual statistics to get a true picture italist critics think. Sof the health of the American economy . Rather than blow their credibility Right now, those statistics are saying a over a cyclical rebound that is backed by modest cyclical rebound following a very the statistics, free-market conservatives deep downturn could actually be turning should tell it like it is. into a full-fledged, V-shaped recovery Let’s begin with the March employ- boom between now and year-end. ment numbers recently released by the I’m aiming this thought especially at Labor Department. Those numbers many of my conservative friends who seem were solid. People say small businesses to be trashing the improving economic are getting killed by taxes and regula- outlook – largely, it would appear, to dis- tions from Washington, but the reality is credit the Obama administration. that the small-business household Don’t do it folks. It’s a mistake. The employment survey has produced 1.1 numbers are the numbers. And pros- million new jobs in the first quarter of chasing-managers reports for manufac- perity is a welcome development for a 2010, or 371,000 per month. If that con- turing and services indicate that the nation that has suffered mightily. tinues, the unemployment rate will drop economy in the next few quarters could Credibility is at issue here. Conserva- significantly. be much, much stronger than the con- tive credibility. Capitalist credibility. Additionally, the corporate payroll sensus expects – maybe 5 percent to 6 Now, I have written extensively about number for March increased by 224,000 percent. Another V-shaped recovery. the tax-and-regulatory threats of the – not 162,000, as some claim – with the Commodity charts, meanwhile, are Obamanomics big-government assault. prior two months being revised up by roaring. All manner of raw industrial But most of that is in the future. The 62,000. And this is being led by private- materials have been booming – iron ore, current reality is that a strong rebound sector job creation. steel, you name it. More V-shaped recov- in corporate profits (the greatest and And according to just-released data, ery. So with higher commodity prices run- truest stimulus of all), ultra-easy money retail chain-store sales for the year end- ning virtually across-the-board, there is from the Fed and some small stimuli ing in March were up a blowout 10 per- every incentive for rapid inventor y from government spending are working cent. Ten percent. That’s a V-shaped rebuilding. (Inventory prices are going to generate a stronger-than-expected recovery. And the real-time ISM pur- up as commodity prices go up.)

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At this point, it’s impossible to project a long-lived economic boom, such as we had following the deep recession of the early 1980s. For one thing, tax rates will rise in 2011 for successful earners and investors, quite unlike the Ronald Rea- gan cuts of the 1980s. So it’s possible that entrepreneurs and investors are bringing income, activity and investment for ward into 2010 in order to beat the tax man in 2011. This would artificially boost this year’s economy, stealing from next year’s economy. Recall that when Hillary Clinton took her Rose Law Firm bonus in December 1992, rather than January 1993, she knew full well that her husband Bill would raise the top tax rate in 1993. So the fourth quar- ter of 1992 grew at nearly 4.5 percent, but the first quarter of 1993 saw less than 1 per- cent growth. The temporary growth spurt for all of 1992 was 4.3 percent, but activity dropped to 2.7 percent the following year. It could happen again in 2010 and 2011. Although the Obamacons deny it, tax-rate incentives matter a lot. And at some point, monetary policy will tighten, with higher interest rates on top of higher tax rates. That, too, could slow growth markedly next year. And then there’s the dozen tax hikes in the Oba- macare health takeover, and a possible VAT attack from Paul Volcker, all of which will work against growth in the out-years. Clearly, we are not operating a supply- side, free-market model today. What I wish for is sound money and lower tax rates, which would promote sustainable economic growth. Instead, we’re getting easier money and higher tax rates, which could mean a temporary boom today and disappointingly slow growth after that. But then again, who knows? Maybe the tea party revolution overturns the obstacles to future growth and the boom is sustained. Free-market populism and a return to Reaganism, along with an anti- federal-spending coalition that is the most powerful force in politics today could right the economic ship. That’s the credible take. ■

Lawrence Kudlow is CEO of Kudlow & Co., an economic and investment research firm in New York City. May Lane 31-60.qk:Layout 1 5/6/10 11:37 AM Page 48

COMMENTARY

haps their families. Following that tradi- tion, marriage today should be a private arrangement, requiring minimal or no state intervention. Some religious or secular institutions would recognize gay marriages, others would not; still others would call them domestic partnerships or assign another label. Join whichever group you wish. The rights and respon- sibilities of partners would be governed by personally tailored contracts — con- sensual bargains like those that control most other interactions in a free society. Regrettably, government has inter- ceded, enacting more than 1,000 fed- eral laws dealing mostly with taxes or transfer payments, and an untold GAYS ARE AMERICANS TOO number of state laws dealing with such questions as child custody, inheritance The moral and constitutional case for a right to gay marriage and property rights. Whenever gov- ernment imposes obligations or dis- BY ROBERT A. LEVY penses benefits, it may not “deny to any person within its jurisdiction the equal protection of the laws.” That OLLOWING bitter defeats in Cali- Thomas Jefferson set the stage in the provision is explicit in the 14th fornia, Maine and New York, the Declaration of Independence: “[T]o Amendment to the U.S. Constitution, gay and lesbian community had a secure these Rights, Governments are applicable to the states and implicit in FNew Year’s victory to celebrate. New instituted among Men.” The primary the Fifth Amendment, applicable to Hampshire joined four other states — purpose of government is to safeguard the federal government. Connecticut, Iowa, Massachusetts and individual rights and prevent some per- Of course, government discriminates Vermont — in legalizing gay marriage. sons from harming others. Heterosexu- among its citizens all the time. In the And the nation’s capital is also on als should not be treated preferentially 1920s, 38 states prohibited whites from board. Washington Mayor Adrian Fenty when the state carries out that role. And marrying blacks and certain Asians. put it this way: “Marriage inequality is a no one is harmed by the union of two Until 1954, all states were allowed to civil rights, political, social, moral and consenting gay people. operate segregated schools. Thankfully, religious issue.” For most of Western history, mar- the Supreme Court invalidated both He covered all the bases, except one: riage was a matter of private contract interracial marital restrictions and It’s a constitutional issue as well. between the betrothed parties and per- school segregation. The court applied May Lane 31-60.qk:Layout 1 5/6/10 11:37 AM Page 49

the plain text of the Equal Protection mented an irrational and unjust system same-sex “marital” benefits. According to Clause despite contrary practices by the that provides significant benefits to just- the federal Office of Personnel Manage- states for many years even after the 14th married heterosexuals while denying ment, nearly 60 percent of Fortune 500 Amendment was ratified in 1868. benefits to a male or female couple who companies confer employment benefits To pass constitutional muster, racial have enjoyed a loving, committed, faith- on domestic partners. discrimination had to survive “strict ful and mutually reinforcing relationship Yet our politicians, unwilling to pri- scrutiny” by the courts. Government had over several decades. That’s not the way vatize marriage, seem congenitally to demonstrate a compelling need for its it has to be. Government benefits trig- unable to extricate themselves from our regulations, show they would be effective gered by marriage could just as easily be most intimate relationships. One would and narrowly craft the rules so they did- triggered by other objective criteria, leav- hope, in the coming months and years, n’t sweep more broadly than necessar y. ing the definition of marriage in the that more enlightened federal and state That same regime should apply when hands of private institutions. legislators will have the courage and government discriminates based on gen- For instance, the Senate Homeland decency to resist morally abhorrent and der preference. Security and Governmental Affairs Com- constitutionally suspect restrictions No compelling reason has been prof- mittee recently voted to extend employee based on sexual orientation. Gay cou- fered for sanctioning heterosexual but benefits to same-sex partners of federal ples are entitled to the same legal rights not homosexual marriages. Nor is a ban employees. The qualifying criterion, and the same respect and dignity on gay marriage a close fit for attaining which could also apply to heterosexual accorded to all Americans. ■ the goals cited by proponents of such couples, is an affidavit identifying the bans. If the goal, for example, is to domestic partner and certifying that the strengthen the institution of marriage, a partnership is intended to be exclusive more effective step might be to bar no- and permanent, within a common resi- fault divorce and premarital cohabita- dence, with shared responsibilities. Robert A. Levy is chair- tion. If the goal is to ensure procreation, Similarly, some states dispense bene- man of the Cato Institute. then infertile and aged couples should fits to qualifying gay couples joined in be precluded from marriage. predefined civil unions. Even private-sec- Instead, most states have imple- tor employers are increasingly offering

THE LANE REPORT • KYBIZ.COM MAY 2010 49 May Lane 31-60.qk:Layout 1 5/6/10 11:37 AM Page 50

VIEWPOINT

GOOD RIDDANCE! Justice Stevens defer? Government offi- cials. Why would those who wrote the Supreme Court Justice John Paul Stevens did lasting damage Constitution waste good ink putting that protection in there, if not to protect citi- zens from the very government officials to BY THOMAS SOWELL whom Justice Stevens deferred? Stevens is a classic example of what has been wrong with too many Republicans’ HEN Supreme Court Justices the way, they can take that property, pro- appointments to the Supreme Court. retire, there is usually some pious vided that they pay you its value. Democratic presidents appoint talk about their “service.” But the The Supreme Court case of Kelo v. City judges who will push their political Wcareers of all too many of these retiring of New London involved local govern- agenda from the federal bench, even if jurists, including currently retiring Justice ment officials seizing homes and busi- that requires stretching and twisting the John Paul Stevens, have been an enor- nesses – not for “public use” but to turn Constitution to reach their goals. mous disservice to this country. this private property over to other private Republicans too often appoint judges Justice Stevens was on the High Court parties, to build more upscale facilities that whose confirmation will not require a for 35 years, voting to sustain racial quotas, would bring in more tax revenues. big fight with the Democrats. You can creating “rights” out of thin air for terror- Stevens wrote the Supreme Court opin- always avoid a fight by surrendering, ists, and taking away American citizens’ ion that expanded the Constitution’s and the Republican Party long ago mas- rights to their own homes in the infamous authorization of seizing private property tered the art of preemptive surrender. “Kelo” decision of 2005. for “public use” to seizing private property The net result has been a whole string The Constitution of the United States for a “public purpose.” Who would define of Republican Justices of the Supreme says that the government must pay “just what a “public purpose” is? Those who Court carrying out the Democrats’ compensation” for seizing a citizen’s pri- were doing the seizing. agenda, in disregard of the Constitution. vate property for “public use.” In other Just who was this provision of the Con- There may have been some excuse words, if the government has to build a stitution supposed to restrict? Answer: for President Ford’s picking such a man reservoir or bridge, and your property is in government officials. And to whom would when he was an unelected president who came into office in the wake of Richard Nixon’s resignation after Water- gate, creating lasting damage to the public’s support of the Republicans. But there was no such excuse for the elder President Bush to appoint David Souter, much less for President Eisen- hower, with back-to-back landslide victo- ries at the polls, to inflict William J. Brennan on the country. In light of these justices’ records and how long justices remain on the court, nominating such people was close to criminal negligence. If and when the Republicans return to power in Washington, we can only hope that they remember what got them suddenly and unceremoniously dumped out of power the last time. Basically, it was running as Republicans and then governing as if they were Democrats, running up big deficits, with lots of earmarks and inter fering with the market. But their most lasting damage to the country has been putting people like John Paul Stevens on the Supreme Court. ■

Thomas Sowell is a senior fellow at the Hoover Institution, Stanford University

50 MAY 2010 KYBIZ.COM • THE LANE REPORT May Lane 31-60.qk:Layout 1 5/6/10 1:03 PM Page 51

WORKFORCE DEVELOPMENT

THE REAL REASON EMPLOYEES LEAVE Keep your best by investing in an emotional connection

BY JIM WELCH

HY do people leave teams and what you can do as a leader to help organizations? The No. 1 reason them build their future dreams. is that they fail to connect with • Take your entire team out together to Wtheir bosses as leaders and as people. celebrate a special event. When I was with People are rarely honest about why Hallmark, I would take my team out every they leave a company. There is no upside year for a holiday meal in the private din- incentive. While the primary reason peo- ing room of a local restaurant. I would say ple leave companies is because of the rela- something special about each of the team tionship and lack of emotional connection members at the end of the meeting. The with their boss, it is almost never talked primary message, delivered in front of the about in the exit inter view. Who wants to entire team, focused on the unique skill burn a bridge they may need for a future sets each person brings to the table to job reference? make us all successful. It’s easier to talk about work/life bal- • Create a surprise, fun outing as ance, moving on to build skill sets, or part of a team business trip. I took my the need to make more money. Salary is team on a business trip together to the much further down the list than what is West Coast. While on the trip, we made usually reported in exit interviews. an “unexpected” stop at “The Rock,” or Most companies talk a great deal about Alcatraz in San Francisco. The experi- the need to retain the best people to sus- ence directly enhanced team bonding. tain growth, but they lack an integrated • Create local, fun activities for the plan to create retention momentum. team. These fun team activity events What is your current game plan to keep should be done during regular business your best people? hours to truly be appreciated. Weekend As a leader, you are personally account- activities that cut into personal time are able to acquire and retain the very best almost guaranteed to land with a giant people. It is that simple. If you fail to thud. Your team wants you to be a great recruit and retain top talent, you will not leader; they aren’t looking for another sustain growth over time. The effective weekend friend. leader embraces a retention plan. • Utilize your boss to deliver special praise for a job well done in a one-on-one Emotional connection points meeting. This should be unexpected and Emotional connections provide the fuel focus on results and accomplishments as that greatly enhances retention. It is well as the recognition of the unique driven by the trust and development of strengths of the individual. your individual team members. It starts • Create an unexpected personalized with building your emotional connec- memento for individual team members tions with each team member. celebrating the accomplishment of a The power of the “unexpected” is the major event. most powerful way to emotionally connect with another person. Think about it; do Make time to connect you get more credit with your significant Why do leaders so often fail to build other when you send a handwritten note these emotional connections with their when they least expect it? Of course you people? It takes time and places many do. The same concept applies to you as a leaders outside their comfort zones, leader. It is the “unexpected” things a thus increasing their vulnerability. It is leader does that really make the difference: easier to tackle those 85 e-mails. What • Write a personal note or send a greet- many leaders fail to realize is that they ing card to the spouses or significant oth- are actually more vulnerable if they ers, telling them what a difference their choose not to invest the time to do it. ■ partner is making to your business. • Take the employee to breakfast, Jim Welch is founder of The Growth lunch or dinner (if appropriate) and Leader Inc., thegrowthleader.com, a business ask what “really matters” to them and leadership consulting firm. May Lane 31-60.qk:Layout 1 5/6/10 11:37 AM Page 52

ECONOMIC COMMENTARY

AND THE WINNER IS? INFLATION BY TKO I believe Fed Chairman Ben Bernanke has decided that monetizing our debt is the only way to fix the bal- Bloc forming at Fed will resolve inflation-deflation debate ance sheets of banks, homeowners, and the U.S. government. We are a nation of BY JOHN R. FARRIS debtors and, whether we want to acknowledge it or not, we owe the Chi- nese a lot of U.S. dollars. N politics, you often see two candi- nor Donald Kohn, who plans to step Because we are debtors, inflation dates on the absolute opposite sides of down in June. decreases the real value of our debt. So, by a basic issue. But, it is somewhat rare Subsequently, the White House has printing more money, or “monetizing our Ito hear so many financial analysts and said the top candidates for the other two debt,” Mr. Bernanke believes we will even- economists vehemently disagree over remaining board slots are the relatively tually fix our balance sheet problem. the basic issue as to whether we are in unknown attorney Sarah Raskin, Mary- It sounds counterintuitive, but con- headed into an “inflationary” or a land’s commissioner on financial regula- sider this example: Y our name is “deflationary” spiral. tion, and Peter Diamond, a well-known Ronald McDonald and you can pro- For example, Warren Buffett sug- Social Security specialist from MIT. duce Big Macs and sell them at a cost gests, “We are certainly doing things The three appointments together sug- of $3 (U.S.) in all international mar- that could lead to a lot of inflation. In gest a new bloc of votes on the policy-set- kets. You happen to owe your rich Chi- economics, there ting Federal Open nese business partner $1,000. In other is no free lunch.” Market Committee words, you owe your Chinese business On the other for dovish monetary partner either $1,000 or 333 Big Macs. hand, Nobel prize- policies, i.e. those However, if because of a dramatically winning Princeton less concerned with cheaper dollar the price of Big Macs economist and containing inflation suddenly rises to $50 because of a dra- New York Times than reducing matically cheaper dollar, you then only columnist Paul unemployment. owe your Chinese business partner 20 Krugman retorts, Yellen’s influ- Big Macs instead of the 333. “Deflation, not ence is likely to be Through this example, one can see inflation, is the crucial, and it is that monetizing our debt, which will clear and present abundantly clear cheapen dollars’ value, has the added danger.” that she is in no rush effect of causing the Chinese and other Watching this to raise interest countries to stop pegging their currency inflation versus rates. The key rea- to our dollar at artificially low levels. deflation debate son is the weak labor Monetizing our debt implicitly makes play out over the market. In a speech other countries want to hold fewer dol- last 12 months has on March 23rd, she lars because these dollars will lose their been very interest- implied that the value quickly. ing. In fact, we still “extended period” So what should you do to protect your have about 50 per- of low rates could purchasing power during this expected cent of economists last until 2013. It rise in inflation? Consider investing in on either side of the may be just coinci- multinational companies that produce argument. The win- dence that such tim- goods that are in dollar-denominated ner of this inflation- ing would be just assets (e.g. gold, oil, steel, coffee and deflation struggle after the next presi- most other commodities). As the world will have a dramatic effect on your portfo- dential election, but common sense would continues to shift away from dollars, the lios. In a nutshell, if you knew the likely suggest otherwise. absolute value of these companies winner, you could position your portfolio As the market began to digest should only rise because the underlying to try to stay ahead of the macroeconomic Yellen’s approach, the spread on 2-10 price (in dollars) of the goods they pro- curve for the rest of the year. Treasury yields began to widen. I duce will increase. In other words, these As we search for reasons behind the believe this is a sign that the market is companies will have bigger and bigger recent rise in the equity markets, we forecasting that inflation is the now the margins as the absolute value of your dol- find a major macroeconomic event in most likely winner of the great infla- lar decreases. ■ the United States that overshadowed tion-deflation debate. both the healthcare bill and sovereign As such, your portfolio should be John R. Farris is the debt issues. On March 13th, there were heavily weighted toward an equity mar- founder/president press reports that President Obama is ket that will rise in absolute terms. In of Farris Capital and intending to nominate Janet Yellen as other words, it is hard to bet against the also serves as a vice chairman of the Fed – the No. 2 rise in the nominal value of U.S. equity professor of economics spot after Fed Chairman Ben markets as long as Bernanke and his and finance at Centre Bernanke. The vice-chair position new trio of inflation doves are at the College. comes by way of the retiring Fed gover- helm of the Fed’s printing press.

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THE LANE LIST

KENTUCKY’S LARGEST PUBLICLY HELD CORPORATIONS By revenue

COMPANY (TICKER) CEO MARKET CAPITALIZATION TOTAL REVENUE (FY 08) COMMENTS LOCATION WEB SITE (RANK) NET INCOME (FY 08)

Humana is one of the nation’s largest Humana Inc. (HUM) Michael McCallister $7.42 billion $30,960,000,000 publicly traded health benefits humana.com (4) $1,040,000,000 companies, with approximately 1 Louisville 11.3 million members

The parent company of KFC, Yum! Brands (YUM) David Novak $20 billion $10,960,000,000 Long John Silver’s, Pizza Hut, Taco Bell yum.com (1) $1,090,000,000 and A&W ranks as the world’s largest 2 Louisville restaurant company.

Since its inception in 1924 as a Ashland (ASH) James O’Brien $4.63 billion $8,160,000,000 regional petroleum refiner, Ashland ashland.com (6) $273,000,000 has evolved into a specialty chemical 3 Covington company with a global reach.

Omnicare provides pharmaceutical Omnicare (OCR) Joel Gemunder $3.49 billion $6,170,000,000 care for 1.4 million seniors in 47 states omnicare.com (7) $234,820,000 and conducts clinical research for the 4 Covington pharmaceutical and biotech industries.

General Cable develops, produces General Cable (BGC) Gregory Kenny $1.47 billion $4,390,000,000 and distributes wire and cable generalcable.com (10) $108,400,000 products for the energy, industrial and 5 Highland Heights communications markets.

Kindred operates 82 hospitals and Kindred Healthcare Paul Diaz $713.78 million $4,270,000,000 249 nursing centers, as well as kindredhealthcare.com (13) $61,900,000 institutional pharmacy and Louisville 6 (KND) Louisville pharmacy management businesses.

Since entering the market in 1991 Lexmark Int’l (LXK) Paul Curlander $3.13 billion $3,880,000,000 as a spin-off of IBM, Lexmark has lexmark.com (8) $145,900,000 become an international leader in 7 Lexington computer printers and peripherals.

Though Brown-Forman at one time Brown-Forman (BFB) Paul Varga $8.54 billion $2,440,000,000 owned product lines ranging from brown-forman.com (2) $456,700,000 china to luggage, it is returning to 8 Louisville its wine and spirits industry roots.

ResCare provides a variety of ResCare (RSCR) Ralph Gronefeld $367.21 million $1,580,000,000 services to people with disabilities rescare.com (17) -$9,440,000 and special needs in the U.S., 9 Louisville Puerto Rico and Canada.

Since opening its first restaurant Papa John’s Int’l (PZZA) John Schnatter $755.71 million $1,110,000,000 in 1985, Papa John’s has expanded papajohns.com (12) $57,450,000 to 3,000 locations in 49 states and 10 Louisville 29 international markets.

Texas Roadhouse G. J. Hart $1.1 billion $942,330,000 Texas Roadhouse opened its first steakhouse in 1993 and now oper- 11 (TXRH) Louisville texasroadhouse.com (11) $47,480,000 ates 263 restaurants in 44 states.

Ventas is a leading healthcare real Ventas (VTR) Debra Cafaro $7.43 billion $936,090,000 estate investment trust company, ventasreit.com (3) $194,750,000 with a portfolio that includes more 12 Louisville than 500 healthcare facilities.

Boardwalk Pipeline Rolf Gafvert $5.69 billion $909,200,000 Through its three subsidiaries, Boardwalk oversees the transport 13 Partners (BWP) Owensboro boardwalkpipelines.com (5) $144,800,000 and storage of natural gas.

Tempur-Pedic produces premium Tempur-Pedic Int’l (TPX) Mark A. Sarvary $2.45 billion $907,940,000 mattresses and pillows utilizing tempurpedic.com (9) $104,800,000 pressure-relieving material 14 Lexington developed by NASA.

Robert Evans Churchill Downs owns and operates Churchill Downs (CHDN) $532.71 million $439,700,000 racetracks and simulcast operations churchilldowns (14) $17,360,000 in Kentucky, Illinois, Florida and 15 Louisville incorporated.com Louisiana.

Founded as Caretenders in 1976, the Almost Family (AFAM) William Yarmuth $353.44 million $297,850,000 company changed its name in 2000 almost-family.com (18) $24,690,000 and has expanded to include home 16 Louisville health operations in nine states.

Sypris provides technology-based Sypris Solutions (SYPR) Jeffrey Gill $90 million $265,900,000 and specialty services, and is a sypris.com (22) -$5,430,000 major defense and government 17 Louisville contractor.

The bank holding company for Republic Bancorp Steven Trager $480.73 million $221,820,000 Republic Bank & Trust, which has republicbank.com (15) $61,000,000 locations in central Kentucky, 18 (RBCAA) Louisville southern Indiana and central Florida.

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COMPANY (TICKER) CEO MARKET CAPITALIZATION TOTAL REVENUE (FY 08) COMMENTS LOCATION WEB SITE (RANK) NET INCOME (FY 08)

Industrial Services of Harry Kletter $80.88 million $181,050,000 Industrial Services of America is a leader in scrap recycling and waste 19 America (IDSA) Louisville isa-inc.com (23) $5,280,000 management.

U.S. Computer Services provides U.S. Computer Services Steven A. Powless $295.12 million $148,940,000 data and transaction processing, Inc. (CSVI) Paducah csiweb.com (20) $21,980,000 eBusiness service and hardware 20 to financial firms.

Community Trust operates 74 banking Community Trust Jean Hale $461.68 million $129,580,000 locations and five trust offices in east- Bank (CTBI) Pikeville ctbi.com (16) $25,270,000 ern and central Kentucky, as well as 21 five West Virginia branches.

S.Y. Bancorp is the holding company S.Y. Bancorp (SYBT) David Heintzman $320.16 million $78,260,000 of Stock Yards Bank & Trust, with syb.com (19) $16,550,000 locations in Greater Louisville, and 22 Louisville southern and central Indiana.

Farmers Capital Bank is a financial Farmers Capital Bank Lloyd D. Hillard Jr. $63.02 million $60,970,000 holding company, operating 27 banks farmerscapital.com (24) -$47,960,000 locations in 23 communities through- 23 (FFKT) Frankfort out Central and Northern Kentucky.

NGAS Resources is an independent NGAS Resources (NGAS) William Daugherty $54.64 million $57,820,000 exploration and production company ngas.com (25) -$7,700,000 focused on natural gas plays in the 24 Lexington southern Appalachian basin.

Bank of Kentucky (BKYF) Robert W. Zapp $107.65 million $48,580,000 The Bank of Kentucky is a holding company with 28 branch and ATM 25 Crestview Hills bankofkyhb.com (21) $6,970,000 locations in northern Kentucky.

Source: www.reuters.com; www.bloomberg.com; www.nasdaq.com

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EXPLORING KENTUCKY

Pine Knob Theatre Summer Playtime Caneyville pineknob.com, (270) 991-8191 Theater presentations entertain summertime audiences across Kentucky “Dock Brown – Legend of an Outlaw” – June 12, 19; July 3, 10, 17, 24 BY KATHERINE TANDY BROWN “Down in Hoodoo Holler” – June 11, 18; July 2, 9, 16, 23 “At the Hop” – June 26, July 31, Aug. 28 UMMER is here. And with it come “Elvis Night” – June 25, July 30, Aug. 27, long hot days with frosty glasses of Sept. 24 Ssweet tea and lemonade, crickets “Lucy and Ruth’s Diner (LARD)” – Aug. 6, chirping in twilit evenings and live pro- 13, 20; Sept. 3, 10, 17 ductions rockin’ on theater stages all “Daddy Took the T-Bird Away” – Aug. 7, 14, across the commonwealth. It’s time to 21; Sept. 4, 11, 18 sit back and be entertained. “Theatre Festival” (three plays for the price of Now in its 34th season, the Kentucky one) – July 31, Sept. 26 Repertory Theatre (KRT) in Horse Cave draws audiences not just from its home Pioneer Playhouse near Mammoth Cave, but from sur- Outdoor Dinner Theatre rounding states as well. USA Today Danville named the KRT as one of the top small pioneerplayhouse.com, (859) 236-2747 regional theaters in the country, and “A Nice Family Gathering” – June 11-26 readers of Kentucky Living magazine just “Miranda: The Catch of the Day” – June 29- chose it as their second-favorite theater July 10 in the state, just behind Louisville’s Ken- “The Dillinger Dilemma” (world premiere) – tucky Center. A scene from “Pygmalion” during a performance by July 13-24 Another venue with exceptional Kentucky Repertory Theatre actors in Horse Cave. “For Better” – July 27-Aug. 7 longevity is the Pioneer Playhouse Dinner “Run for Your Wife” – Aug. 10-21 Theatre, the state’s oldest outdoor the- “Big Daddy’s Barbecue (or: It’s Okay to Be ater. Started in 1950 by Col. Eben C. Hen- “The Globe Players Present Much Ado About Married)” – Aug. 26-28 son, president and founding member of Nothing” – July 14-18 the Kentucky Arts Council, the Danville “Twelfth Night: A Special Presentation for Ragged Edge Community Theatre theater received national attention early Young Audiences” – June 19, 26; July 3, 10, Harrodsburg on from New York trade publications as 17 raggededgetheatre.org, (859) 734-2389 the “King of Summer Stocks.” “Fiddler on the Roof” – May 6-9, 13-16 Though there’s an indoor option in Jenny Wiley Theatre “Seussical the Musical” – June 7-25 case of rain, Pioneer Playhouse is the Prestonsburg quintessential outdoor venue. jwtheatre.com, (877) 225-5598 Stephen Foster Productions “There’s nothing like outdoor the- “Cinderella” – June 26-July 24 (Jenny Wiley Bardstown, My Old Kentucky Home State Park ater,” said Holly Henson, artistic direc- State Resort Park Amphitheatre) stephenfoster.com, (800) 626-1563 tor. “It’s the age-old experience of “Mid-Life! The Crisis Musical” – June 11-July “The Stephen Foster Stor y” – June 12-Aug. 13 sharing stories around a campfire under 25 (Wilkinson/Stumbo Convention Center) “Floyd Collins” – June 24, 26, 29; July 1, 3 the stars. It speaks to your soul.” “Joseph and the Amazing Technicolor Dream- “Footloose” – July 8-Aug. 12 coat” (Amphitheatre) – July 31-Aug. 14 “Jack and the Beanstalk” (Convention Cen- Twilight Cabaret Productions Kentucky Summer ter and Amphitheatre) – July 13-29; Aug. Gilbertsville Theater Guide 8, 10 twilightcabaretproductions.org, (270) 436- 2399 Music Theatre Louisville Kincaid Regional Theatre Company “Swan Song”– June 25, 26, July 9, 10 at the Kentucky Center Falmouth (not at Kincaid Lake State Resor t (Cadiz Renaissance Center); July 23, 24, Louisville Park) 30, 31 (Kenlake State Resort Park) musictheatrelouisville.com, (502) 589-4060 krt.citymax.com, (800) 647-7469 “1776” – June 25-July 3 “Pippi Longstocking” – June 18-24 Greenbo Lake Amphitheatre “Nunsense” – July 18-27 “Paint Your Wagon” – July 10-31 Greenup, Greenbo Lake State Report Park “Annie” – Aug. 6-15 parks.ky.gov, (800) 325-0083 Kentucky Repertory Theatre “A Midsummer Night’s Dream the Musical” Kentucky Shakespeare Festival Horse Cave – June 3-6, 10-13 ■ in Central Park kentuckyrep.org, (800) 342-2177 Louisville, 50th anniversary, free “You’re a Good Man, Charlie Brown” – July Katherine Tandy Brown is a kyshakes.org, (502) 637-4933 16-25 correspondent for The Lane Report. “The Tempest” – June 16-20, 23-27 “Mark Twain” – Aug. 16-22 She can be reached “Richard III” – June 30-July 4, 7-11 “The Book of Revelation” – Aug. 24-29 at [email protected].

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at the Norton Center for the Arts with an Upcoming Events across Kentucky emphasis on Civil War music, and a hot- Kentuckytourism.com photo or saddle your horse and ride the trails. air balloon race on Friday. Join the evening owl prowl to learn about nighttime predators. All Adventure Day Glasgow Highland Games activities are free; regular admission 1149 State Park Road charged for Shaker Village tour and river- Barren River Lake State Resort Park boat and wagon rides. Glasgow June 3-6 Great American (270) 651-3141 Brass Band Festival parks.ky.gov Downtown Danville and Centre College Danville Don your kilt and join this rollicking June 11-13 annual celebration of Scottish culture Adventure Day at Shaker Village of (800) 755-0076 and heritage, which includes a Celtic Pleasant Hill gabbf.com Fest on the Square, Lunch with the 3501 Lexington Road, Harrodsburg Chiefs, Ceilidh (dancing to traditional June 5 An old-time brass band concert in the and rock music), genealogy seminars, (800) 734-5611 park on a grand scale, the Great Ameri - Governor’s Breakfast, Tartan Ball, and shakervillageky.org can Brass Band Festival recaptures the a Celtic rock band concert. Demon- nostalgia of peaceful, turn-of-the- strations and exhibits include High- Head to Pleasant Hill for a day of guided century America. World-renowned bands land Games, working sheep dogs, hikes, fishing, waterfalls, vista views and begin playing early Saturday morning period reenactments, rugby, Parade of fresh air. Track animals in the woods, and continue through Sunday evening. Tartans, and competitions such as pipe search for hidden treasures with your Other events include a Chautauqua tea and drum, battle ax, Kilted Mile, hand-held GPS, identify migrating birds, on Thursday, a band history conference ladies’ haggis toss and bonniest knees.

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PASSING LANE Commentary on life in Kentucky

Big Star, Big Heart Campbellsville University photo

OUNT country music star Vince arch Ron Finley and a golfing buddy of Gill among the white hats in the Gill’s. Finley said he asked the favor Cworld. He came to Campbellsville more for CU’s future athletes than its in late March, played a free concert and past ties – mainly freshman football gave generously of himself in a fundrais- player Westley Cadena, whom Finley has ing effort that produced $40,000 for mentored since age 6. Campbellsville University athletics. “His performance was terrific and his The Baptist school’s More Than a love to help others comes through with Game campaign is raising money to put such sincerity,” Carter said. synthetic turf and lights on its football Gill has sold 26 million albums, earned field and lights in the baseball stadium. 18 CMA Awards, including Entertainer of When someone suggested that because the Year in 1993 and 1994, and has they play golf with Gill they thought received 19 Grammy Awards. Besides they could get him to come to a being known as a performer, musician and fundraiser, CU athletics officials said, songwriter, Gill is regarded as one of coun- well, go ahead and ask. Quickly, how- try music’s best-known humanitarians, par- ever, came a response suggesting three ticipating in hundreds of charitable events possible dates he could do a show. throughout his career. Gill came to town March 27. Prior to “I love my friends, and I tell you, the concert, he was the dinner guest of nine times out of 10 when you do some Campbellsville President Dr. Michael V. kind of a charitable thing, you’re react- Carter at the president’s home on cam- ing to someone else’s passion. It just pus. Then, accompanied by a keyboardist, makes sense to help somebody else out,” Gill played acoustic guitar and sang for a Gill said in Campbellsville. “Plus, I’ve sold-out crowd in the school’s Ransdell always had a soft spot in my heart for Chapel. For the last section of the show , Kentucky. When I moved away from he took requests from the audience. home at 18, this was my home. I really Vince Gill plays acoustic guitar at Campbellsville Give some credit to Steve Finley, love the state.” University, where $40,000 was raised to benefit nephew of Campbellsville football patri- Thanks, Vince, and amen to that. the More Than a Game athletic fundraiser.

Lexington’s New Landmark To Serve and Protect EXINGTON Police Officer Bryan J. Durman, 27, was killed Lin a hit and run on April 29 as he performed his duties, the first death in the line of duty in more than 20 years in Lexington. Durman’s funeral took place May 4. There was a solemn and overwhelming outpouring of sup- port from and for the law enforcement community of our state. A procession of more than 600 law Officer Bryan J. Durman enforcement vehicles from dozens of cities and counties across Kentucky, and even a few from Ten- ID-April saw the opening of a 5,700-s.f. glass struc- nessee and Indiana, participated. It took some 45 minutes for ture, the Fifth Third Bank Pavilion in Cheapside Park the procession to pass through downtown Lexington, where a Min downtown Lexington. “This building is a public- giant flag was suspended over Main Street. Thousands of area private partnership in the truest sense,” said Mayor Jim New- residents silently lined the route, some holding American flags. berry, thanking Fifth Third, which donated $750,000 to the Law enforcement officers don’t always get their due. Downtown Lexington Corp. Foundation to build the facility , Their presence usually means something wrong did or and other businesses that donated to the construction of the might happen. But they are the point of the sword for the pavilion and reconstruction of Cheapside Park, including Big rule of law that binds our society together. Their job is vital Ass Fans, Henkel-Denmark and Environmental Landscape. to our quality of life. And lamentably, officers sometimes The metal-roofed pavilion is the new home for the Saturday lay down their lives for us. downtown farmers market. The structure sits on granite Thank you, gentlemen and ladies, for your ser vice to pavers, but permeable pavers in the park allow water to pass our communities and commonwealth. through, decreasing storm-water run-off.

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Kentucky Chamber Opens A Yummy ‘Front Door to Frankfort’ Marketing Idea ENTUCKY Chamber of Com- merce leaders, Gov . Steve PRIL was a great month for Yum! Beshear and more than 100 Ken- Brands, Inc. (NYSE: YUM). The K decision of the world’s largest tucky business leaders gathered April 20 A for the dedication of the chamber’s food service corporation to invest $13.5 newly renovated and expanded build- million for the 10-year ing, which is being callled the business right to name the new community’s “front door to Frankfort.” 721,000-s.f. Louisville Donations and sponsorships from arena – the KFC Yum! members paid for most of the $3.2 mil- Gov. Steve Beshear, center, cuts the ribbon on the Cham- Center – was a smart, lion project, which increased space by 70 ber’s newly expanded and renovated building, located long-term marketing percent to 17,000 s.f. Kentucky compa- at 464 Chenault Road, in Frankfort. Pictured with him decision and a big boost are, Mary Jean Riley, Wayne Martin, Jill Wilson, Dave for greater Louisville, the Louisville Arena nies and chamber members did most of Adkisson, Bill Jones, Joan Coleman, Mary Pat Reagan work. The AT&T Videoconferencing and Darby Turner. Authority, and Kentucky. Center links it to every state university Yum’s recent decision is very com- and community and technical college, every health department and some school systems. patible with its decision to become the The building features pieces commissioned by Kentucky artists. presenting sponsor of the Kentucky “We were glad to provide Kentucky business with an opportunity to work on this project Derby in 2006. Yum’s marketing strat- during these tough economic times,” said Chamber President and CEO Dave Adkisson. egy promotes its corporate name to “We hope that the Kentucky Chamber’s new headquarters here in Frankfort investors and its 34,000+ restaurants in reflects our optimism and bold direction, and will serve as a symbol of a bright future more than 100 countries and territories for Kentucky’s business community,” said 2010 Chairman Bill Jones, of U.S. Bank. around the globe. Yum’s major brands include KFC, Taco Bell, Pizza Hut, Long John Silver’s A Lesson in Corporate Giving and A&W. In recent years, Yum has been building more than 1,000 new OYOTA USA Foundation is giving a $500,000 grant to a University of Ken- restaurants annually. tucky program to help K-12 teachers continue to develop more effective meth- Tods of teaching math and science. This act of savvy good corporate citizenship will expand a successful science, technology, engineering and math (STEM) educa- tion effort developed by UK’s Appalachian Math and Science Partnership. Your Bridge There is a need in the state to improve educational attainment, which lags espe- cially in portions of Appalachia. Education is proven to be the tide that lifts all boats. Is Missing Better-educated workers make more money, achieve business success, boost the econ- omy and improve the quality of life not just for themselves but everyone. couple of readers e-mailed last And some of those better-educated Kentuckians will end up either as productive month to report a missing bridge. Toyota team members or as buyers of Camrys, Avalons and Venzas. AOur cover story on the impact of Because of the Toyota USA Foundation grant, Kentucky’s bridges on the national logistics teacher-driven teams in 13 Central and Northern Ken- system included a list of 24 Kentucky

tucky school districts will develop local strategies to TOYOTA MOTOR MANUFACTURING, NORTH AMERICA bridges that cross the Ohio River. improve student learning in mathematics or science programs with help from uni- There are, however, 25 such bridges. versity faculty through the UK Partnership Institute for Mathematics and Science The one not in our list was the Simon Education Reform (PIMSER) program. Minton Bridge, the busy Interstate 64 cross- “We look forward to their successful mission to enhance the teacher-student expe- ing from west Louisville to New Albany, Ind. rience,” said Steve St. Angelo, president of Toyota Motor Manufacturing Kentucky. And while we’re filling in the blanks, PIMSER’s Partnership Enhancement Project will provide planning and training to officials at Bernheim Arboretum and teachers to help determine their students’ specific mathematics and science needs. Math Research Forest in Bullitt County reached and science professors at UK and several other colleges and universities then will use out to our editors to suggest their lovely research-based strategies to provide intervention plans for those specific needs. locale could have been included in our PIMSER is an outgrowth of a National Science Foundation grant to UK that estab- April Lane List, which was Top Tourist Des- lished the Appalachian Math and Science Partnership program to help K-12 math and tinations in Kentucky. They had 176,000 science teachers develop innovative and more effective teaching methods in rural school visitors in 2009, which was indeed plenty districts. Some of the teaching methods were so successful UK professors integrated them enough to have made the list. into their classrooms. Bernheim, located just east of I-65 off The original $24 million NSF grant has expired, but UK is continuing to expand KY 245, has been a bit of a well-kept the program through private foundation and corporate grants. secret, officials there say, but they’re Perhaps a few other Kentucky business entities will see the wisdom of Toyota USA working to change that. Find out more Foundation’s strategy and follow its example? about this gem at bernheim.org.

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KENTUCKY PEOPLE

LOUISVILLE: KELLEY CONSTRUCTION IS DUBAI: KY CHAMBER EXECUTIVES BUILD HONORED WITH EXCELLENCE AWARD ON ECONOMIC TRADE TIES WITH DUBAI Kentucky Chamber of Commerce photo

Louisville-based Kelley Construction received the 2009 BKD President’s Kentucky Chamber of Commerce executives recently joined more than 40 cham- Award in Construction at the annual Chairman’s Banquet held earlier this ber executives from across the country on a tour of Dubai hosted by the Dubai year by the Kentuckiana Chapter of the Associated Builders and Contractors Chamber of Commerce, with the goal of promoting trade between American Inc. The company was awarded the honor for its work on the Louisiana Off- cities and Dubai. Pictured here are (from left) Dave Adkisson, president and shore Oil Port Headquarters. Pictured here accepting the award are (left to CEO of the Kentucky Chamber; Steve Stevens, president of the Northern Ken- right): Jeff Conatser (Kelley Construction), Mark Kelley (Kelley Construc- tucky Chamber, and Robert Quick, president and CEO of Commerce Lexington, tion), Joe Kelley (Kelley Construction), Chris Kramer (BKD LLP), and Matt at the stables of the new $1.3 billion Meydan Race Course, with one of Sheikh Daniels (BKD LLP). Mohammed’s horses.

LOUISVILLE: LEADERSHIP LOUISVILLE’S COLUMBIA: LINDSEY WILSON DEDICATES CONNECTORS HOLD FIRST GATHERING $10M HEALTH AND WELLNESS CENTER Leadership Louisville photo Lindsey Wilson photo The first official gathering of Leadership Louisville’s Connectors was held last Students, faculty, staff and area residents recently gathered at Lindsey Wilson month at an invitation-only event at Churchill Downs. The Leadership College in Columbia to dedicate the new $10 million Doris and Bob Holloway Louisville’s Connectors organization consists of a diverse group of 128 individu- Health & Wellness Center, named in honor of Lindsey Wilson Board of Trustees als – ranging in age from 28 to 71 and representing all walks of life – who have Chair Bob Holloway of Middletown, Ky., and his late wife, Doris. Pictured at been recognized for their success in “getting things done through their distinc- the dedication ceremony are (left to right) LWC Athletics Director Willis Pooler; tive style of trusted leadership.” Pictured here at the event are Kirt Jacobs, Holloway Center Director Joel Peterson; Dean of Students Chris Schmidt; LWC Louisville Metro Government; Sundar Sridharagopal, SHPS/Techneek LLC; senior Tracy McClain of Harrodsburg, Ky.; Rebecca Morris; LWC Board Chair Dr. Judy Green, Louisville Metro Councilmember; Graham Honaker, Univer- Bob Holloway; Jennifer Thompson; LWC senior Justin Cason of Louisville; sity of Louisville; and David Jones Jr., Chrysalis Ventures LLC. LWC Vice President of Student Services and Enrollment Management Dean Adams and LWC President William T. Luckey Jr. The 73,232-s.f. facility is the largest building on the college’s A.P. White Campus.

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