Anyone else looking forward to Nov. 3rd?

OK, I'll admit it. I'm as big a "fan" of politics as anyone. I enjoy the banter, the ideas, the advocacy, the little details that make U.S. democracy hum along and churn.

That hum, however, is sounding more and more like fingernails across a chalkboard a little over two weeks from Election Day. Here in Owensboro, the local, state representative and state senator races are somewhat hum-drum with little dirt flinging, if any at all. Most of these candidates are content to make their case for why they should be elected. If we were only so lucky at the national level.

Despite the lack of rain, U.S. Senate candidates Rand Paul and Jack Conway have cobbled together mud pies and are heaving them at record pace. Make no mistake that there are a lot of differences between these two guys. Paul is the TEA party favorite while Conway is not afraid to lean to the left on some issues. I only wish both would spend more time and more advertising money telling us why they are the best candidate for Kentucky instead of why the other guy is bad. I've met and spent time with both Paul and Conway and believe they're both fine people with strong ideas. You don't usually get to be a U.S. Senate candidate for both major parties without having success at many levels along the way. Yet, here we are nearing the end of another long election season and the negativity is astounding.

Yes, independent groups are running negative ads of all sorts in record amounts after a Supreme Court ruling earlier this year. I can't say with certainty whether it's a good idea or not for these groups to spend money on campaigns in this fashion. What I do know is that the resulting negativity I'm seeing is not good for democracy. Anyone else looking forward to November 3rd?

Good things happen when people work together

There we were last Friday, in far west Kentucky, Hickman County at Columbus-Belmont State Park, another of Kentucky's great treasures. Sitting in front of a crowd of about 30 people were Kentucky Transportation Secretary Mike Hancock (at podium) and Indiana Department of Transportation Commissioner Michael B. Cline (second from left) as well as the I-69 project managers for both states, Ted Merryman from Kentucky and Sam Sarvis from Indiana. They had come at the invitation of the West Kentucky Chamber Regional Chamber Alliance (WKRCA), and many of us were in awe.

I and a few others couldn't help but think back to early 2008 when we'd made our first trip to Frankfort to talk about I-69. Transportation officials there were nice but also a long way from any commitments for the project. Due to a lack of funding, the thought of seeing the 156 miles of I-69 through the Commonwealth making much progress in the near future seemed remote at best. We didn't give up.

Working through the 12 chambers of commerce in Chamber Leadership Initiatives for Northwestern Kentucky (C-LINK) and later the 14 chambers that comprise WKRCA, we continued to beat the drum for I-69. Two years later, Kentucky has an I-69 project manager, 800 people attended an I-69 rally disguised as "West Kentucky Night" during the legislative session, there's $51 million of projects in the state road plan for I-69, and now we await the results of Kentucky's application for a special grants program through the U.S. DOT to upgrade 70 miles of Kentucky parkways to become a big part of I-69.

Last Friday, Secretary Hancock was asked what the chambers should do. "Continue your united front, advocate together," was his only answer. Twenty-six chambers of commerce representing 6,500+ business members are marching to the same beat and getting the attention of those who make the decisions. Good things happen when people work together.

It's all about people

Yesterday, Larry Vick, superintendent of Owensboro Public Schools, gave me a tour of the new $23 million expansion and renovation project at Owensboro High School. It's well done with a 2,500-seat gymnasium and 14,000-square-foot fine arts wing that is probably second to few in Kentucky.

You could see the pride in Larry's face as he explained the details and thought process that was behind every decision. As we walked, he introduced me to several teachers who shared Larry's enthusiasm; it was obvious that they, too, were filled with pride and anticipation about their new surroundings and what it means for students as they return to school today. When I mentioned the teachers' bright eyes, he smiled and said, "It's all about people." Thirty-six years as a school superintendent has taught him that fact.

I thought about the irony of a $23 million facilities upgrade and how that is actually a people investment. It's true. People make the difference in any organization or business. "Get the right people on the bus," "Hire the best you can." Those are all staples of any best-selling leadership book I've ever read. At Owensboro High School, teachers' enthusiasm about their new surroundings will certainly lead to more motivation for learning

Philosophies come and go. I've learned in my career that there's actually few new ideas. What makes systems go or fail are the people behind them. This might seem quaint, but I was reminded yesterday for one hour of how true it still is.

More highway funding woes

As I left a Kentuckians for Better Transportation meeting last week in Frankfort, a fellow board member lamented that "he's never seen transportation in such bad shape in my 40 years in the business." The KBT board had just spent two hours discussing the sad state of affairs that funding our nation's most critical infrastructure--highways--has become.

I blogged about this just three months ago but a fact I heard at the KBT meeting drove it home even further: Over the next year, seven new all-electric vehicles will be introduced for sale in the U.S. Great, most people say. Save the environment and get away from fossil fuels. I won't argue the merits of that, but the growing influx of non-gasoline powered vehicles will soon accelerate the problem of how to continue funding highway construction/maintenance in America. For years, the system has revolved around the federal gas tax. In 2010, however, we have a perfect storm building of crumbling highways and bridges combined with a funding stream that is shrinking and won't be solved without major change.

Major change is not in the picture in D.C. these days. Congress continues to kick a new five-year reauthorization bill down the road because there's not nearly enough revenue to fund it. What's needed is a hike in the federal gas tax, which hasn't occurred in 17 years. Politicians are in no mood to discuss tax increases. Various plans to replace and/or supplement the fuel tax with a "miles traveled" tax system haven't gained serious traction. A major national study that outlined incremental change and would have brought solutions was dismissed by the Bush administration a few years ago and has yet to be resurrected.

Now, the Obama administration is more determined to promote mass transit and other forms of transportation. Department of Transportation Secretary Ray LaHood just last week announced new policies would "put non-motorized transportation on equal footing with motorized transportation." I'm all for biking and walking, but someone might want to tell Secretary LaHood that it takes a lot of bicycles to carry the same cargo as a tractor-trailer. After loud complaints by a national trucking group, LaHood backed away from those comments.

It's been nearly three years since the Interstate bridge in Minneapolis collapsed due to age and lack of necessary maintenance. How many bridges need to fail and kill motorists before D.C. gets serious about highway funding?

"Green jobs"

The continued assault by the Obama administration and the EPA on coal-fired power plants in the name of "green" and "saving" the environment should be a wake-up call to every person in the midwest. While everyone can agree on the need for "clean" air, many simply don't understand that it comes with a hefty price.

The fact is that much industry and large business is in Kentucky because of the low-cost electricity pricing associated with coal-fired power plants. I would further argue that low-cost power is Kentucky's only real economic development advantage. Fortunately, coal and its associated low-cost electricity have in many cases trumped Kentucky's non-business friendly labor laws and judicial systems. Keep adding to the costs of producing that electricity, however, and soon industry and its good-paying jobs and benefits will be fleeing the midwest.

When you hear someone talk about "all the green jobs" that will be created in the future, don't be fooled. Sure, there can be job growth in the manufacturing of components and parts needed for wind farms, solar panels and other "green" products but there's absolutely no guarantee those jobs will come to Kentucky. On the other hand, take away the state's low-cost electricity and it's virtually assured that aluminum smelters and other heavy industry will leave the state.

The hefty price for "clean" air in Kentucky is a certain loss of high-paying jobs and not just in coal mines and heavy manufacturing. How many service and retail jobs exist because well-paid manufacturing workers are able to treat their families to a meal at restaurants or to a weekend getaway? While that number is unknown, it's definitely more than will be created by "green jobs" in Kentucky.

Downtown plan fallout fails to materialize in election

Bruce Kunze, John Kazlauskas and David Johnson all voted for the insurance premium tax increase in February of 2009 that will fund Owensboro's downtown improvements. In fact, they were the only three who voted for the increase who were on Tuesday's local ballot. They all survived quite nicely and will be on the November ballot despite opposition from several newcomers.

Kunze stepped up to the judge executive race and easily won the Democrat nomination. Kazlauskas finished third and Johnson fifth in the 12-way battle to choose the top eight candidates for four spots in November. What may be more telling is that those most vocal in their opposition to the downtown plan were soundly defeated. In the GOP primary for judge executive, former city commissioner Al Mattingly trounced his two opponents--both very vocal opponents of the insurance tax increase. Mattingly didn't campaign against the downtown plan. Neither did the two top vote-getters in the city commission race, Pamela Smith-Wright or Roger Stacy.

Surely, there's been many vocal opponents of the tax increase and the downtown plan. Everyone seems to have an opinion, and many of us who supported the plan have wondered if it was simply a loud minority or majority. Tuesday's results would seem to indicate that there are in fact many "quiet" supporters of it.

Downtown Owensboro has a long way to go to be all its supporters envision. Tuesday night, however, those who predicted a "complete sweep" of local government should be disappointed. More appropriately, those who support the downtown plan should be heartened.

There's no substitute for hard work

I had the fortune last week to speak to honor students at my alma mater, Gibson Southern High School near Ft. Branch IN. The first night I spoke to 6th through 12th graders and on the second night it was 1st through 5th graders. I must admit that I was a little nervous. I hadn't been in my high school gym since graduating 26 years ago this month, and there were a handful of my classmates there probably questioning if I was worth their time.

I took the opportunity to talk about the value of working hard, looking for opportunities to stand out from the crowd and getting outside one's "comfort zone" to learn something different. I told the 6th through 12th graders that their parents give them advice and responsibility based on many more years of experience; they, in turn, are best served listening to them and not questioning when they heard the dreaded word: "no."

That is a summary of my life experiences and I have my parents to thank. Both of mine were hard-working, dedicated and headstrong. My dad was a truck driver and my mother worked at home and later in a furniture factory. They put "first things first" and somewhere along the way, it rubbed off on me. Little did I know that their example was being engraved in me and how much the adage to "work hard" would play out in my life.

Today, many students don't have that example at home. Modern America's staggering divorce rates and other struggles leave us with many single-parent homes and lost opportunities to instill sustaining values in kids' minds. I, myself, split custody of my two teenage sons with their mother and I try to make up for that lost time by purposely looking for chances to make points and teach them lessons that will hopefully make them successful adults.

I've found hard work will overcome many obstacles. There are no shortcuts. The same goes for good parenting.

The Chamber brand has never been stronger (and more important)

As the president of one of the larger "local" chambers of commerce in the state, I'm fortunate to be included as an ex-officio director of the Kentucky Chamber of Commerce. The state chamber celebrated the opening of its office expansion/renovation this week in Frankfort with its quarterly board meeting which included a teleconference with U.S. Chamber President Tom Donahue.

Under Donahue's leadership, the U.S. Chamber has become a pro-business juggernaut; it has been very successful in defending free enterprise and is a genuine thorn in the side of the Obama White House. The group spent more than $144 million on lobbying activities in 2009 and under its political director, Bill Miller, is becoming adept at grass-roots organizing around the U.S. Donahue left little doubt during his call on Wednesday that the U.S. Chamber plans to play a major role in working to elect pro-business candidates and defeat others this fall.

In Frankfort, Kentucky Chamber President Dave Adkisson has been very fittingly added to the U.S. Chamber's board of directors. Since returning to his native Kentucky in 2005, Adkisson has taken a sleepy state organization that was losing members at an alarming rate and turned it into a juggernaut of its own. The Chamber's "Leaky Bucket" campaign the past year shed light on the unsustainable growing expenditures on state employee pension and healthcare, corrections and Medicaid. It gained attention across Kentucky and, more importantly, with legislative leaders. Its work with metro chambers across the state also helped defeat House plans to tap business for enough funding the next two years to bond a new construction program. The Kentucky Chamber is also ramping up its PAC with plans to become more involved in legislative races.

Under Adkisson's charge, the state chamber has also forged a better relationship with local chambers. As a recent president of the statewide chamber executives group, I've seen this work firsthand and am helping to create a web-based system for allowing business leaders to convey their thoughts about important legislation to Frankfort leaders.

With the Obama regime talking job creation on one hand and cranking out policies on the other that will strangle job growth, now is the time for chambers of commerce to flex their muscle. Leaders like Donahue and Adkisson are leading the way.

Charter schools = competition

I've been someone who until recently thought the Daviess County and Owensboro school districts should strongly consider merging. During one of our Emerge Owensboro leadership classes last fall, however, a local school administrator made the point that there's a healthy "competition" between the districts that keeps both of them striving to do better. He went on to say that merging them would take away that incentive. I agree.

The Kentucky Senate has passed a bill that would bring charter schools to Kentucky. With the opposition of the KEA established, the House is not likely to approve the bill before the session ends on April 15th. The charter school issue went from nowhere to the front seat in recent weeks as Kentucky competed for--and lost--nationwide competition for federal Race to the Top funds. The state lost several points because charter schools are not currently allowed.

I'd like to see more discussion of charter schools in the legislature before they're approved because the issue is too important to not be thoroughly examined. That can come in a special session or during the 2011 General Assembly, but I believe more "competition" in public schools would be a good option. We're blessed in Owensboro-Daviess County and other areas of Kentucky to have good public schools, but education is too important to not always be looking for new and better ways.

Critics say charter schools are not always successful, but with many states having them, Kentucky is in good position to examine what works and what doesn't and design them accordingly. Kentucky's kids deserve no less.

Meanwhile, KY's legal climate worsens

Tort reform—comprehensive changes to lessen the practice of "defensive medicine"—is nowhere to be found in the healthcare reform package passed by the U.S. House yesterday. There is no doubt that defensive medicine is a driver of healthcare costs. Too add insult to injury, there are no malpractice caps in Kentucky, which means physicians in the state pay very high malpractice insurance premiums.

Today, the U.S. Chamber's Institute for Legal Reform issued its annual state-by-state rating of how reasonable and balanced the states' tort liability systems are perceived to be by U.S. business. It found that Kentucky has fallen from the 29th worst to 40th. This is not good news; it's not good for attracting business and industry to Kentucky, and it's not positive for businesses to expand operations.

What are the numbers? According to the Kentucky Administrative Office of the Courts, the number of civil lawsuits filed in the state’s circuit courts, which decide civil cases seeking over $4,000, surged from 39,439 in 2002 to 63,958 in 2009, a jump of 60%.2. Kentucky’s district courts, which hear civil cases seeking less than $4,000 and small claims, experienced a similar surge of civil suits from 97,871 in 2002 to 138,982 in 2009, a 42% rise.

Meanwhile, Indiana is ranked much better at 5th on the list. Tennessee, to our south, is ranked 19th. See the whole report here:
http://www.instituteforlegalreform.com/lawsuit-climate.html

Highways in limbo

Amid growing concerns about the national debt, conflicting priorities and overall D.C. gridlock, the nation's system of funding its surface transportation networks is in serious limbo. Every five to six years, Congress has provided the states with a roadmap of what it will fund. The last such bill was passed in 2005--remember the "bridge to nowhere" in Alaska?--and "expired" last September. Since then, it's been extended with short-term "fixes" that have become a political football.

Earlier this week, I joined economic development leaders from northwest Kentucky, southwestern Kentucky and southeastern Illinois for the first-ever tri-state D.C. fly-in. One of our priorities was Interstate 69, which will cut through the heart of our region. There's been significant progress in Indiana and Kentucky for I-69, but the next reauthorization bill holds the promise of major funding that the states can't afford on their own.

Problem is, no one we talked with in D.C. knows when a new bill will be passed. Too many other issues such as healthcare reform are dominating the landscape. Another issue is the very real concern that the highway bill has been funded in the past by the federal gas tax. With cars getting better mileage and hybrids and electric cars becoming more mainstream, there's less tax being paid. The federal gas tax has become unreliable to sustain the highway system, much less build badly-needed new bridges and roads.

Very uncharacteristically, the U.S. Chamber board has approved a ten-cent increase in the federal gas tax, which hasn't been increased in 17 years. Anyone who follows the U.S. Chamber knows the very aggressive pro-business group almost never advocates tax increases. That fact alone speaks to the seriousness of adequate funding for highways.

SB54 is a bad bill

It's not a good year for incumbents. Politicians at every level--federal, state and local--have drawn many opponents and it's in this atmosphere that Senate Bill 54 is making its way through the Kentucky General Assembly. The bill, sponsored by Sen. Carroll Gibson, would mandate that public agencies that require employees to wear uniforms must use garments from American-made sources. Other "safety equipment" is also covered in the legislation. The bill is being pushed by a 300-employee Larue County garment manufacturer and sounds innocent enough. Legislators from both sides of the aisle sense a political victory with a "good old U.S.A." bill.

The problem is that the vast majority of garment manufacturing left the U.S. a long time ago. The bill might have been a good idea in 1990, but that ship has already sailed. In fact, there's other Kentucky employers that stand to lose if this bill is passed. Companies like Unifirst in Owensboro employs 300+ and Sitex in Henderson employs 160+. These companies employ Kentuckians, provide benefits and are good corporate citizens. They stand to be punished, however, by SB54 because they often use materials made outside the U.S. They have no choice to be competitive.

A similar bill passed the Minnesota legislature with little debate and took effect in January. Public agencies are crying foul there because garments they can source in the U.S. are usually twice as expensive as those produced elsewhere. Law enforcement agencies who use and have training programs designed around the Austrian-made Glock pistols are wondering if they can still buy them. Kentucky's own LRC issued a local mandate opinion that SB54 could result in "substantial costs" to government agencies--just what they need in these difficult financial times.

SB54 passed the Senate in late January with only Sen. Dorsey Ridley of Henderson voting against it. Good for him. It appears it will be heard in the House State Government Committee this Thursday. That's too bad for good Kentucky employers like Unifirst and Sitex. Maybe common sense will prevail. Maybe not.

"Hate" is a dirty word

Three times this week I've heard about good legislation in the Kentucky General Assembly that's passed either the House or Senate but is bogged down in the other chamber because a particular lawmaker "hates" the legislator sponsoring it. And, yes, the word hate was used each time. We all know that Republicans and Democrats have philosophical differences, but this is something more.

The "something more" in this case means much less for Kentucky citizens and business. All three of these bills offer something very positive and deserve full consideration. However, because a certain bill is sponsored by a certain legislator, it's held up or considered "hands off" at the other end of the building. This is not how the process should work and smacks more of children fighting than how the people's business should be conducted.

Sure, hate among lawmakers has probably existed since the first Kentucky General Assembly met way back when. I've been bothered more lately, however, by the increasing polarity of the political process in D.C. and Frankfort. The middle ground is not tolerated by the fringe of either party and lawmakers known to understand the word compromise are now targeted by growing segments of their own party for stiff primary challenges.

I've always told my two sons, now age 12 and 14, to not use the word hate. I tell them it's a dirty word. It's a word that always struck me as being hopeless, perhaps without recourse. And now, this week I've been struck by how the word is being used to further describe the acrimony and partisanship that grips both political parties. And I'm increasingly being struck by how the people's business is left undone for dirty reasons. I hate that.

My time with Evan Bayh

It was June of 1990 and I was a TV reporter for WEHT, the then CBS (now ABC) affiliate in Evansville IN. The small town of Petersburg IN had been rocked first by flooding and then a devastating F3 tornado that rolled through town on a Saturday evening killing seven. I covered both events over two long weeks; Indiana Governor Evan Bayh, then 35 years old and barely into his first term, paid a visit to the community to see the damage firsthand.

It was quite the scene at the small Petersburg town hall with TV stations from Evansville, Terre Haute, Indianapolis and other places crowding around Governor Bayh in a back room. I was only 24 at the time, very raw but very passionate about my job. After Bayh made some opening remarks about what he had seen from above on his helicopter ride over town, he took questions from the media. I immediately piped up and chimed in with the first question. Later that day, back at the station our news director was watching the footage with me and expressed surprise that I had been the first to lob a question at the governor. "The first question is usually reserved for the media from the larger markets," I remember him saying. "Good job, that's the way to get after it."

Yesterday, when now Senator Evan Bayh pulled the latest political shocker and announced he would not seek a third term, I remembered that day in Petersburg and how he had taken my question and answered it when cub reporters like me were supposed to wait for "big guys" to ask the first questions. I remembered how Bayh had seemed very likeable, humble and perhaps in office "for the right reasons."

In the almost 20 years since my encounter with Bayh, he forged a reputation as a pretty much unbeatable political icon and was frequently mentioned as a potential vice president or perhaps presidential candidate. He's considered a moderate, a Democrat yes, but someone who can work in a bipartisan fashion to accomplish positive legislation for Americans.

Yesterday, Bayh denounced the brutal partisanship that now grips D.C. Some Republicans like to think he was vulnerable this fall. I don't believe it. With plenty of money in his campaign account and his poll numbers high, I take him at his word that he's fed up with a Congress more concerned with making political points than progress. I viewed conservative Congressman Mike Pence of Indiana—once rumored to be a challenger to Bayh—as having the best chance to give him a strong run. Pence, however, announced weeks ago that he was staying in the House.

A few weeks ago, I opined in this space that bipartisanship was unfortunately a lost concept in politics today. Evan Bayh had come to realize that and now he's stepping away. That's too bad.

Incumbents vs. public sentiment

When Scott Brown shocked the world last month and won the seat to replace Senator Ted Kennedy in Massachusetts, it seemed that everyone and anyone who ever wanted to run for public office decided this was their year, particularly if they were a Republican. Whether it's Congress, the state legislature or local races, it's candidates a-plenty this year.

This coincides with polls showing incumbents being held in lower regard than perhaps at any time ever. If there's been a time when the "power of incumbency" is at a disadvantage, this is the year. Who would have dreamed just a year ago that heavyweights like Ben Chandler and Evan Bayh would be considered beatable? Who would have surmised that the GOP might have a chance to get control of the U.S. House? Who would have thought an unknown eye doctor from Bowling Green would be considered "the favorite" in the GOP primary over "Senator in waiting" Trey Grayson? Though not an incumbent Senator, Grayson might be suffering from having held office for eight years while Rand Paul is the "outsider."

Will this be the year when incumbents fall like never before? It's a long way to go until November, and the onslaught of TV advertising will certainly change some opinions. Democrats in Congress will look to champion issues the rest of the year that will help their chances at re-election. Congressional Republicans will fight that but must also be careful to not increase their reputation as the party of no. In Frankfort, legislators are deflecting tough budget decisions until after the November elections.

For political observers like myself, it's fun to watch. How it all turns out is still anyone's guess.

Bipartisanship remains elusive

President Obama's first State of the Union address Wednesday night was a "do over." Fresh from the devastating Senate race loss in Massachusetts last week, Obama and team realize they must shift course. Part of that was reiterating the word "bipartisanship" several times. Obama even offered to meet with Republicans.

At the same time, Obama couldn't resist the urge to remind his audience that his predecessor took office with a budget surplus and left him a huge deficit. When the cameras quickly turned to John McCain, you could clearly see him lean over to a colleague and say in an exhausted manner, "Blame Bush." Mr. President, reminding everyone that George W. Bush wasn't the best at math won't help your push for bipartisanship.

This is not to say that this is all Obama's fault. From the day Obama took office, Republicans in Congress have rebuked him at every turn. Sure, they have genuine policy differences with him, but it's no secret that the GOP hierarchy would rather Obama fail with the hope of re-taking the White House in three years. That's politics, but it's also turning off Americans and quickly growing the number of people who call themselves Independents. Meanwhile, the country's problems grow and solutions remain elusive. Republicans might be happy that healthcare reform has been derailed, but medical attention is still expensive and is bankrupting families and governments alike.

Leadership could mean getting party leaders from both sides behind closed doors and figuring a way to give both parties a little of what they want. Maybe Democrats would give up anti-business labor ideas and Republicans could agree to support some limited but meaningful ways to reduce healthcare costs. Both parties might be pleasantly surprised at how a little "win-win" bipartisanship would be received by most Americans. Will it happen? I doubt it.

Is Obama a UK fan or a Kentucky fan?

What an honor it was Tuesday for President Obama to call the UK basketball team and congratulate them for the money it raised for the efforts in Haiti. UK basketball is riding high again at the top of the college basketball world and deserves the president's kudos for another job well done.

As I watched the replay of the call on TV, however, I couldn't help but think about the irony of it. President Obama lost big in Kentucky to John McCain, his environmental policies threaten Kentucky coal, its corresponding low electricity rates and economic competitiveness. Plus, Obama's chief antagonist in the Senate is, of course, Kentucky's Mitch McConnell. To add to the irony, Lexington Congressman Ben Chandler joined the president in the call. Chandler's vote for the liberal and controversial cap and trade bill in the House soiled him badly in his home district and promptly stripped him of his previous "unbeatable" status.

Make no mistake. The call to the UK squad and Coach Cal from Obama was very appropriate (and perhaps a precursor to another congratulatory call later this spring). UK basketball is bigger than politics and is probably at least one thing Governor Beshear and Senator David Williams agree upon. Still, I couldn't help but smile at how the president shined a positive light on Kentucky for a few moments; at the same time, many don't think his environmental priorities are positive for the state in any way.

Note: I wrote this prior to UK's loss to South Carolina on Tuesday night.

Economy-choking laws won't create jobs

Here we are several months after the mega-billion dollar federal stimulus plan and unemployment remains stubbornly high. What was supposed to stimulate job creation has led to no more than a blip on the job front and now there seems to be a renewed interest by President Obama in job creation by the private sector.

The private sector, however, is too busy being wary of Washington. Job creators must keep their eye on Congress because of at least three issues on the White House agenda that are counterproductive to the idea of creating jobs. Business doesn't know yet how much healthcare reform will cost. We're now hearing that the very anti-business "card check" union issue will be back on the front burner soon. And while environmental "cap and trade" appears to be stuck in the mud in Congress, the EPA has moved forward with its own job-choking regulations.

Make no mistake that the results of all three of these issues would be expensive for business. More to the point, all three issues force business to take their eyes off their business of creating products or providing services and helping customers. That's no way to create jobs and as long as these three issues are hovering over business, job growth is likely to remain skittish at best.

Yes, we want clean air. There should be a balance of employer and employee interests in the workplace and healthcare is too expensive. The fact remains, however, that business creates jobs. When you make it harder and more expensive to do business, the jobs won't come. There's no amount of stimulus that will change that.

Sales tax exemptions are expensive

The 2010 Kentucky General Assembly goes into session this Tuesday and money will be the issue. More specifically, the lack of money and how to craft a new two-year budget with the state's coffers reeling from the economic downturn will dominate all talk. The numbers are huge and for simplicity sake, the legislature is looking at a $1 billion deficit. Lawmakers will be forced at some point between now and mid-April to decide to make drastic cuts to existing programs (state employees?) or find more money (tax increases). More than likely, some of both will be the final answer.

One of the state's primary income generators is the 6% sales tax that is applied to most goods we buy. In 2010, the state is budgeted to collect $9.1 billion from the sales tax. According to a story in Sunday's Herald-Leader, however, various sales tax exemptions will mean about $6.9 billion will not be collected this year.

Most people know Kentucky does not tax groceries or prescription drugs, but there are a wide variety of other goods that are not taxed. According to the story, the money lost to sales tax exemptions is rising about seven percent per year, and the Kentucky Dept. of Revenue won't tell what all is covered by exemptions.

As the deficit discussion grows, many are calling for "comprehensive tax reform." While that sounds good and might be a good idea, often times voters consider "tax reform" to be code for "tax increases" and that usually gives lawmakers cold feet. Perhaps another discussion could involve that list of tax exemptions and which ones make sense and which ones are simply political favors. If the exemptions total nearly $7 billion per year, my guess is a billion or so could be found.