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MayCoverFinal.qxd:Layout 1 5/6/10 10:58 AM Page 991 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 42 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 6 MAY 2010 KYBIZ.COM • THE LANE REPORT May Lane 1-30.qk:Layout 1 5/6/10 10:59 AM Page 7 May Lane 1-30.qk:Layout 1 5/6/10 10:59 AM Page 8 May Lane 1-30.qk:Layout 1 5/6/10 10:59 AM Page 11 May Lane 1-30.qk:Layout 1 5/6/10 10:59 AM Page 10 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. ■ 10 MAY 2010 KYBIZ.COM • THE LANE REPORT May Lane 1-30.qk:Layout 1 5/6/10 10:59 AM Page 9 May Lane 1-30.qk:Layout 1 5/6/10 10:59 AM Page 12 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.