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Attorney General Andy Beshear is taking another step in the fight against what he believes is the single greatest threat to Kentucky – the state’s drug epidemic.
Beshear today announced that his office intends to file multiple lawsuits against drug manufacturers, distributors and retailers where there is evidence that they contributed to the opioid epidemic by illegally marketing and selling opioids to Kentuckians.
To support this litigation, Beshear is issuing a request for proposal (RFP) for legal services to assist the Commonwealth in multiple lawsuits and to ensure that Kentucky tax dollars are not used for the costs of the litigations.
Last week Beshear announced Kentucky was one of several states participating in a bipartisan coalition among AGs using their investigative tools, including subpoenas for documents and testimony, to address the opioid crisis.
Beshear is co-chair on the National Association of Attorneys General Substance Abuse Committee.
The RFP, Beshear said, is a critical next step in moving the investigation into immediate and future litigation.
“Kentuckians have seen the effort this office has made to combat addiction and to go after those who have willingly contributed to the opioid epidemic that has caused children to lose their parents, and parents to lose their children,” Beshear said. “The ongoing commitment by my office will continue as we actively work to leave no stone unturned and hold accountable those responsible.”
The RFP names McKesson Corporation, a California-based pharmaceutical distributor, as well as other potential “entities and individuals.”
Beshear said Kentucky, like other states, is experiencing personal and economic devastation from the opioid epidemic. According to the CDC, the total economic burden associated with prescription opioid abuse, including the cost of health care, lost productivity, substance abuse treatment and the impact on the criminal justice system in the United States is $78.5 billion a year.
Attorneys general in Ohio, Mississippi, Missouri and West Virginia have recently filed legal actions against drug manufacturers, distributors and retailers.
Beshear’s latest action follows numerous steps the office has already taken to combat the state’s opioid epidemic.
The AG’s office previously settled a $24 million lawsuit with Purdue Pharma regarding OxyContin. Beshear’s office has provided $8 million from that settlement directly to 15 substance treatment centers across Kentucky.
From a different drug company settlement, the office dedicated $2 million to expand and enhance Rocket Docket programs that expedite drug cases, generate significant cost savings and allow select defendants rapid access to substance abuse treatment.
Recently, Beshear joined a multistate lawsuit alleging the drugmaker of Suboxone, a drug used for treating opioid addiction, tried to monopolize the market.
Beshear is currently working with local law enforcement and community leaders to host substance abuse awareness forums across the state. The office has also been instrumental in numerous drug related arrests, including working with federal authorities on arresting a fentanyl dealer whose drugs had killed several Kentuckians.
“It is my hope that the governor and lawmakers commit to use the more than $11 million the AG’s office will provide for the next budget to fund additional drug treatment and to combat violence in our cities and counties because drugs drive virtually all crime. Only by working together can we save our families and communities from the crisis of our times.”
Citing a resurgence in the auto industry, Forbes magazine has named Louisville as the No. 1 city in the U.S. where manufacturing is thriving. Since 2011, manufacturing employment in the Louisville-area has grown 30.2 percent, bringing the employment total to 83,300 jobs, representing 12.41 percent of jobs in the local economy.
“Louisville continues to lead the way with our long-standing tradition of excellence in manufacturing. And that tradition provides the foundation necessary to be a global leader as we shift into a new era of flexible, advanced manufacturing,” said Mayor Greg Fischer. “This No. 1 ranking is an affirmation of the strength, quality and dedication of Louisville’s outstanding manufacturing workforce.”
Louisville’s diverse manufacturing economy includes such major manufacturers as Ford, GE Appliances, Clariant Corporation, Faurecia and Raytheon. Louisville also is home to FirstBuild, an innovative makerspace dedicated to designing, engineering, building and selling the next generation of home appliances.
To ensure that Louisville remains competitive in the manufacturing sector, the city is partnering with the Kentucky Manufacturing Career Center (KMCC) and the Kentucky Federation of Advanced Manufacturing Education (KY FAME) to create a pipeline of highly skilled employees who provide employers with the workforce they need.
KMCC and KY FAME offer workforce development programs to participants at no cost. KY FAME has a 98 percent job placement rate for graduates and has more than 125 member companies, while KMCC has awarded more than 3,000 certificates and credentials, and recently celebrated its 1,000 job placement.
To learn more about manufacturing workforce development programs, visit http://kcc.kentuckianaworks.org/JobSeekers/KMCC.aspx or http://kyfame.com/about/
Building on Louisville’s economic momentum, Ford Motor Company last week announced a $900 million investment in its Kentucky Truck Plant to build the all-new Expedition and Navigator.
“To be globally competitive in manufacturing, you have to have strong partners willing to collaborate with you and shape a common vision. We are proud to have Louisville as our partner, and congratulate them on being named No.1,” said Curt Magleby, Vice President, U.S. Government Relations, Ford Motor Company.
Ford’s new investment is in addition to the $1.3 billion investment and 2,000 jobs created at the plant in late 2015. According to Census figures, the auto industry alone accounts for 27,000 jobs in the Louisville area.
Louisville continues to be a place where locally grown manufacturers can establish themselves as global competitors. Louisville Plate Glass, founded in 1911, exemplifies the potential for long-term success in Louisville. The company recently opened a new $4 million production facility, more than doubling the company’s employment with 65 new jobs.
“After more than 100 years of continued operations, we chose to reinvest in Louisville with a new state-of-the-art glass production facility that will further strengthen our position as a leader in our market,” said Bill Stone, President, Louisville Plate Glass. “We feel confident that Louisville, with its central location and high quality of life, is the best place to invest in our employees and in our new production lines.”
The Forbes ranking is based on employment in the manufacturing sector over time, short-, medium- and long-term trends dating to 2005, plus variables that measure persistence and momentum.
To read the full article, visit https://www.forbes.com/sites/joelkotkin/2017/06/12/where-manufacturing-is-thriving-in-the-u-s/#5ab452ab1ff7
An agreement reached between Louisville Gas & Electric (LG&E) and Louisville Metro Government that significantly reduced a proposed utility rate increase was accepted with minor modifications Thursday by the Kentucky Public Service Commission (PSC).
Louisville Metro Government, along with a number of other intervenors in the case before the PSC, reached a settlement on April 19 that was more than $40 million below LG&E’s initial request for new revenue and included a drastic cut to LG&E’s proposed fixed monthly charges of $46 for residential customers who have both electric and gas service. The PSC upheld those provisions, and further reduced LG&E’s new revenues by approximately $4 million.
Jefferson County Attorney Mike O’Connell, in his authority as legal representative for Louisville Metro Government, has personally represented the city in the case, including settlement negotiations held in Frankfort in April.
“I take great pride that my office and I worked for more than six months to limit the impact this rate case would have on utility bills for Louisville Metro Government and for all residents in Jefferson County,” said County Attorney Mike O’Connell. “Without our efforts, customers would have experienced an additional $45 million in annual rate increases and seen a dramatic increase in LG&E’s fixed rate charges. In addition, we were able to help secure additional support for low-income customers.
“The Public Service Commission upheld nearly every provision of the agreement that Louisville Metro Government and the other interveners reached with LG&E. The PSC commissioners have stated this revised settlement represents rates that are fair, just and reasonable for customers. I hope that LG&E will honor the PSC’s decision.”
LG&E asked the PSC in November to grant an increase to its electric and gas rates that would boost the company’s annual revenues by $107.5 million. Louisville Metro Government intervened in the case on December 2 and presented facts and expert testimony that called for a substantial cut to LG&E’s request. The new rates are set to go into effect July 1.
Louisville Metro’s intervention paid especially high dividends in the debate over the fixed electric service charge. LG&E proposed to more than double the current service charge of $10.75 to $22 per meter. This increase raised concerns about impacts on low-income families, seniors and others living on fixed income, and from those in Louisville who had invested in energy conservation efforts, including solar technology. The high level of proposed increases in fixed charges was a significant factor in Louisville Metro’s decision to intervene.
The fixed monthly charge for electric service will now be $12.25, nearly $10 a month less than LG&E’s request.
Louisville Metro spends more than $17 million annually on utility bills. Following the settlement in April, Louisville Metro estimated $650,000 in cost avoidance for its utility bills compared to LG&E’s original rate increase request.
This case marked Louisville’s first significant intervention in a LG&E rate case heard before the PSC in more than 30 years. Of the Louisville Metro Council members present and voting on Dec. 15, they unanimously approved (20-0) a resolution in support of intervention. Councilmen Bill Hollander and Kevin Kramer both have offered written testimony in the case.
Other notable pieces of the settlement that the PSC upheld include an increase of $200,000 (up from $500,000) for low-income customer support through a contribution to the Association for Community Ministries; an electric bus infrastructure and rates study; and a LED lighting collaborative focused on reducing the costs that cities spend on street lights.
Full details on the revised agreement can be found on the PSC’s website at the following link:
Gov. Matt Bevin and Kentucky Labor Sec. Derrick Ramsey today filed a motion to dismiss the purely political, frivolous lawsuit brought by the AFL-CIO and Teamsters challenging Kentucky’s Right-to-Work Act. This lawsuit threatens to hurt Kentucky’s families, robbing them of high-paying job opportunities. The historic new law protects employees in the Commonwealth from being forced to pay union dues in order to keep their jobs.
“Companies like Braidy Industries made it clear from the beginning that right-to-work laws are a major factor in deciding to locate to Kentucky,” said Amanda Stamper, Communications Director. “What purpose does this lawsuit serve, except to hurt working families that are depending on these jobs? This ridiculous legal action by the AFL-CIO and Teamsters will not quell the momentum building across the state. Kentucky is winning, and this will not slow us down.”
In the motion, Gov. Bevin and Sec. Ramsey fight to protect employees from being forced to pay their hard-earned money to unions. Exactly 70 years ago today, with the enactment of the Taft-Hartley Act, Congress authorized states to enact Right-to-Work laws and Kentucky’s decision to do so is a constitutional exercise of the state’s authority.
The legislature’s adoption of Right-to-Work and other pro-growth policies has already borne fruit in the form of $6.7 billion in new investments and the promise of thousands of new jobs in the Commonwealth in just the first six months of the year, including a $1.3 billion investment in the Ashland area that will create hundreds of high-paying jobs.
The majority of Kentucky’s border states—Indiana, Missouri, Tennessee, Virginia and West Virginia—have also enacted right-to-work legislation.
Studies examining Bureau of Labor Statistics (BLS) data show that right-to-work states report faster per capita income growth, greater capital expenditures, lower unemployment, fewer work stoppages and faster growth in manufacturing and non-agricultural jobs than non-right-to-work states.
Contrary to critics who claim that right-to-work protections eliminate opportunities to affiliate with a union, 2015 BLS data also shows that union membership in right-to-work states actually grew more quickly than in non-right-to-work states.
Click here for copy of motion to dismiss.
Photo: Kentucky Cabinet For Economic Development
Gov. Matt Bevin, Cabinet for Economic Development Sec. Terry Gill, other state officials and business representatives will attend the 52nd International Paris Air Show in France this week to discuss new business and expansion opportunities with aviation and aerospace executives from around the globe.
“Kentucky is a top location in the U.S. for aviation and aerospace engineering, manufacturing and R&D. We offer formidable advanced-manufacturing resources and experience, plus workforce programs that set the bar nationally, logistics hubs that deliver products nearly anywhere globally overnight, and a network of available sites and buildings in attractive communities,” Gov. Bevin said. “Meetings we have scheduled with corporate executives during the Paris Air Show will give us the opportunity to demonstrate how Kentucky meets their needs and provides the environment for long-term success.”
First held in 1909, the Paris Air Show is the world’s largest aerospace event. It brings together key players in the aerospace industry to pursue business deals, showcase technology and develop industrial partnerships.
“Aerospace has been one of the fastest growing industries in Kentucky for several years now, and it is important we use every opportunity to build upon that success,” Sec. Gill said. “The Paris Air Show provides the greatest opportunity to do just that. The ability to meet in person with aerospace executives from around the world and discuss Kentucky’s many advantages will go a long way toward developing new relationships and strengthening those we have already established.”
Across Kentucky, the aerospace industry is on the rise.
Through May 2017, Kentucky announced more than $1.3 billion in investment by aerospace-related companies. Projects include the nation’s first aluminum rolling mill built on a greenfield site in more than a generation. The Braidy Industries mill, expected to open in 2020, will produce high-strength aluminum alloy sheet for the aviation and aerospace industry as well as other sectors. The investments are expected to create nearly 600 full-time jobs.
Already, the aviation and aerospace sector is a pillar of Kentucky’s economy. It employs nearly 17,000 people statewide at almost 80 different manufacturing, service and technology-related facilities. Advanced manufacturers of carbon brakes, jet engines and turbines, cockpit avionics, wiring and control systems, micro satellites, software development, data analytics, advanced materials R&D, micro-gravity research services, industry logistics and support services and missile defense system manufacturing and overhauling.
Aerospace products and parts continue to be Kentucky’s top export category, with more than $10.8 billion in products shipped abroad in 2016. Nearly $2.9 billion in aerospace products were exported from the commonwealth in the first quarter of 2017, a 9.4-percent increase over the same months a year ago.
To learn more about Kentucky’s aerospace industry, visit http://thinkkentucky.com/Aerospace/.
This year’s Paris Air Show will include more than 2,300 exhibitors with more than 130 aircraft scheduled to be on display.
In 2015, the air show shattered its previous attendance records with more than 350,000 visitors, including more than 4,300 journalists from 72 countries.
To learn more about the Paris Air Show, visit www.siae.fr/en/.
Information on Kentucky’s economic development efforts and programs is available at ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook or follow on Twitter. Watch the Cabinet’s “This is My Kentucky” video on YouTube.
Photo: Churchill Downs Inc.
Churchill Downs Incorporated has announced it is investing approximately $60 million to construct a state-of-the-art historical racing machine (“HRM”) facility in Louisville. The 85,000-square-foot facility will be built at 4520 Poplar Level Road—Churchill Downs’ former Trackside (also known as the former Sports Spectrum) site, and conveniently located less than half a mile from the Poplar Level Road exit off the Henry Watterson Expressway (I-264). CDI’s request to offer exotic wagering on historical racing was conditionally approved by the Kentucky Horse Racing Commission this afternoon.
“With a state-of-the-art facility and new, innovative historical racing machines, we will deliver an exciting and compelling product for our customers in Louisville. This is a great opportunity for us to revitalize another area of our city while strengthening the Commonwealth’s equine industry through larger purses and greater incentives for Kentucky breeders and owners,” Churchill Downs Race Track president Kevin Flannery said. “Stronger horse racing means a stronger Kentucky.”
The company says the facility will create 450 new jobs for the local economy, including 250 construction jobs. An estimated 200 new full- and part-time jobs will be created to operate and manage the facility. Churchill Downs will hire both hourly and salaried employees in areas including operations, marketing, finance, food and beverage, maintenance, information technology, human resources, security and administration. Job fairs will be held at Trackside for the neighborhoods surrounding the facility and the Churchill Downs Race Track.
This announcement comes on the heels of CDI’s decision to relocate its TwinSpires.com business to Louisville from Silicon Valley, California, creating more than 70 high-tech, high-paying jobs for the city.
The planned facility will house two quick-service, walk-up food venues, as well as a bar with seating for 50 and large format televisions for guests to take in all the best sporting action year-round. The gaming area will open with 600 cutting-edge historical racing machines and a player’s club reward center offering special perks and benefits, including an exclusive parking area for loyal guests.
Construction is slated to begin later this year, and CDI hopes to open the facility by summer of 2018.
Photo: Kentucky Cabinet For Economic Development
Gov. Matt Bevin, Kentucky Cabinet for Economic Development leaders Sec. Terry Gill and Executive Officer Vivek Sarin, and officials from KentuckyUnited will attend the 2017 SelectUSA Investment Summit in Washington D.C. this week, engaging with executives from companies around the world and working to develop opportunities for investment and job creation in the state.
Gov. Bevin is scheduled to speak at the summit on Monday, reaffirming the state’s commitment to building a welcoming environment for global companies and discussing the state’s actions to do so. Attracting international investment creates news jobs for Kentuckians and positive economic impact for communities across the state.
“We’re making tremendous strides in growing Kentucky’s business community. Already this year, we shattered the commonwealth’s all-time, full-year corporate investment record. Companies the world over are discovering our many advantages, including a central geographic location, a robust logistics industry, a highly skilled workforce, low energy costs, excellence in engineering and manufacturing and our increasingly strong pro-business climate,” Gov. Bevin said. “Business expansion in Kentucky is on a roll and internationally owned companies – which already employ more than 105,000 Kentuckians – and domestic businesses alike, are taking notice.”
The three-day summit begins Sunday at the Gaylord National Resort and Convention Center. This year’s theme, “Grow with US,” will focus on the nation’s innovative business climate.
Terry Gill, secretary of the Kentucky Cabinet for Economic Development, said the theme reflects across Kentucky.
“Kentucky’s success in attracting new corporate investment this year puts us on track to create the highest number of new jobs in a decade,” he said. “We’re helping put in place innovative workforce-development programs that ensure our current and future corporate partners can hire the skilled employees they need. These efforts adjoin the many advantages our state already offers to internationally based businesses.”
Kentucky is home to nearly 500 internationally owned business facilities, including manufacturing plants, corporate offices, logistics providers, service-related companies and tech firms and research operations. This year through May, the state announced nearly $1.77 billion in foreign direct investment (FDI), which is expected to create 2,160 jobs.
FDI accounts for about one-third of the record-breaking nearly $5.8 billion investment announced in Kentucky through May, as well as approximately 23 percent of the 9,500-plus jobs announced this year.
Hal B. Goode, president and CEO of the Kentucky Association for Economic Development, said the opportunities Kentucky offers for investment from international corporations will connect with the SelectUSA audience.
“Kentucky offers outstanding and enticing benefits for foreign direct investment and SelectUSA gives us and our partners in KentuckyUnited the venue to these opportunities to business influencers and decision makers from across the world,” Goode said. “In addition to the work by cities counties and communities across the commonwealth to prepare for economic development success, we will be promoting Kentucky’s recent policies and programs in workforce development and business-climate improvement.”
KentuckyUnited is a public-private partnership of state, local and regional economic development organizations, utilities and private corporations, formed to market Kentucky’s business advantages to site location consultants and companies interested in siting a new location, expansion or relocation.
SelectUSA, which promotes foreign direct investment in the US, will offer networking opportunities for state, regional and local economic development officials to make their pitch to global investors. Keynote speakers and exhibitors will be on hand to discuss various investment opportunities and to showcase how FDI is a driver of economic development throughout the nation.
In 2016, more than 2,500 people participated in the summit from 70 markets and 52 states and territories.
SelectUSA is the US Government-wide program that promotes and facilitates business investment in the US. The organization provides services to international investors of all sizes and US state, regional and economic development organizations working across the federal government.
To learn more about SelectUSA or the 2017 Investment Summit, visit www.selectusa.gov.
Information on Kentucky’s economic development efforts and programs is available at ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook or follow on Twitter. Watch the Cabinet’s “This is My Kentucky” video on YouTube.
