L.B. Schmidt & Associates, LLC - Consulting Services

Welcome to L.B. Schmidt & Associates, LLC

Latest News

Article was originally posted to the WKYT-TV (Lexington) Web site http://www.wkyt.com/home/headlines/Somerset-group-announces-study-of-potential-unified-government-201456651.html
SOMERSET, Ky. (WKYT) – Somerset would become Kentucky’s third-largest city, if it and Pulaski County merged their governments.
Today a group in Somerset announced a study to see if a “unified” government should be explored. The group Somerset-Pulaski County United held a news conference announcing a study to cost about $35,000 to simply examine the idea of a unified government. The group is made up of dozens of people from all walks of life, government, and community. They say they simply want to study the idea of a merged government, but those behind the movement say if the unified government did happen, the benefits to the average citizen would be great. The Somerset-Pulaski County United group says they will pay for a third of the cost. The Somerset City Council and Pulaski Fiscal Court will be asked to each pay a third of the cost. Officials say the study will explore similar unified governments in Athens and Clarke County, GA., as well as communities in Nevada and Louisiana.  

 

Article was originally posted to the (Somerset) Commonwealth-Journal Web site http://somerset-kentucky.com/newslive/x2015918125/Calling-for-a-Unified-Pulaski/print.

BY BILL MARDIS, Editor Emeritus and KEN SHMIDHEISER, Managing Editor
Commonwealth Journal

Somerset —

A group of about 60 community leaders, clustered as Somerset-Pulaski County United (SPCU), is embarking on a study to determine if a consolidated or united government in Pulaski County would be more efficient and more responsive to the county’s 63,000 residents.
“This is a study, nothing more,” said SPCU chair and local developer Brook Ping. He stressed that simply conducting the study does not mean any local governments are unifying. Under Kentucky law only voters can determine whether local governments consolidate. And that will only occur after a formal plan is developed by an official Unified Government Commission whose members would be appointed by participating city councils and Pulaski Fiscal Court.
The unified government proposal was unveiled during a press conference held yesterday morning at The Center for Rural Development.
Briefly, the plan as explained by consultant L.B. Schmidt, president of Louisville-based L.B. Schmidt & Associates, SPCU would complete a study in about four months and present its findings to local governmental bodies.
Then, Pulaski Fiscal Court, Somerset City Council and governing bodies of Burnside, Ferguson and Science Hill by ordinance would create an official Unified Government Commission made up of between 20 and 40 members to plan a structure for a unified city-county government.
Pulaski Fiscal Court would appoint half the members of a Unified Government Commission, and the remaining members would be appointed by participating cities prorated on population.
Eubank, because its boundary extends into Lincoln County, would be prohibited by state law from participating in a unified government. Schmidt said he hopes some kind of agreement could be worked out so Eubank could feel a part of a united county government.
Any city can opt out of being a part of a unified government. “That means they won’t have a seat at the table,” observed Schmidt.
Under state law, a unified government would not affect school districts, existing taxing districts in the county, or local option areas. It would not alter boundaries of precincts and legislative districts. Unified government, if approved by voters, would vacate current political positions and establish a new governing structure.
A new Somerset-Pulaski County unified government would create Kentucky’s third largest city with a population of 63,700. It would be the first unified government of its kind in Kentucky. Metro governments in Louisville and Lexington were created under different statutes, although in principle the way they operate would be similar to a merged government here, according to Schmidt.
SPCU members believe that a government here passing the 50,000 population threshold would get “looks” from businesses and industries interested in locating in larger communities. They believe it would enhance the community’s economic development efforts and assist in creating new jobs.
“A unified government would greatly increase the county’s bonding capacity,” Schmidt said, noting that the City of Somerset is approaching its bonding limits.
Somerset, with its current population of 11,296, is the 33rd largest city in Kentucky. Unified, with a population of more than 63,000, Somerset, now a third-class city, would be the third largest city in the state, qualifying for 2nd-class status.
Ping pointed out that unification, if approved by voters, is a slow-moving procedure. He estimated it would take at least four years.
“Speaking with one voice will make it easier to provide for the community’s needs,” assured State Senator Chris Girdler, who spoke in favor of the study.
“This is a once-in-a-lifetime opportunity for all of us to stop and do three things: (1) Examine how our current local government jurisdictions work by identifying strengths and weaknesses; (2) find out how unified governments have worked in other communities around the country; and (3) consider whether unified government might work for us.”
“I look forward to joining my fellow citizens in this process during the next few months as the study takes shape and I encourage everyone to keep an open mind,” said Girdler, who serves as deputy district director for Congressman Hal Rogers.
SPCU spokespersons said recent publicized disagreements between Somerset and Pulaski County had little or nothing to do with formation of the study group.
The first key to success of the planned study is funding. Ping said SPCU plans to raise a third of the necessary $35,000. Somerset City Council and Pulaski Fiscal Court will each be asked to contribute a third of the money next during their regular meetings next Monday and Tuesday, respectively, Schmidt said.
The recently formed SPCU is unique in its scope. Said one observer: “I’ve never seen such a diverse organization in Pulaski County.”
SPCU’s members represent all segments of the community. It includes agriculture, business and industry, education, elected officials, health care, law enforcement and public safety, professionals, religion and transportation.

 

 

Article was originally posted to Lexington Herald-Leader Web site http://www.kentucky.com/2013/04/04/2586569/merger-of-somerset-and-pulaski.html

By Greg Kocher — gkocher1@herald-leader.com
SOMERSET — With fewer than 12,000 residents, Somerset ranks 33rd in population in Kentucky. But if the city plus three others — Ferguson, Science Hill and Burnside — consolidates with Pulaski County into one government representing more than 63,000 residents, it would rank as the third-largest in the state, behind only Louisville and Lexington.
On Thursday, a newly formed group announced that it will seek funding for a study to look at the pros and cons of merging Pulaski County and the four municipal governments.
Somerset-Pulaski County United, a group of 56 residents representing a cross-section of the community, said they will approach Pulaski Fiscal Court and Somerset City Council next week to seek help in financing the study.
How far this effort will go is unknown, and members of the steering group acknowledged that efforts to consolidate governments elsewhere in Kentucky were defeated at the ballot box.
Nevertheless, state Sen. Chris Girdler, R-Somerset, said “the time is now” to study the issue of consolidated government.
“I believe some form of unified government can make this community stronger and a better place to live,” Girdler said. “However, it is imperative that we have more information so that we can make an informed decision.
“We live in a global marketplace, and we want to do everything we can to give Pulaski County a competitive advantage,” Girdler said.
A merged community of more than 63,000 people might attract more attention from businesses and industries and could bring more jobs to the area, Girdler said.
It also would give the community one voice and make it easier to seek grants and appropriations in Frankfort and Washington, D.C.
Moving from “micropolitan” to “metropolitan” status would enhance the community’s job-creation efforts and would create new opportunities for state and federal grants to help the community as a whole.
Some researchers have questioned whether a merger delivers significant savings. Studies of Jacksonville, Fla.’s consolidation with Duval County and of Miami’s merger with Dade County found that costs actually rose post-consolidation “as new bureaucracies emerged,” the Wall Street Journal reported in 2011. The paper also cited a 2004 study by Indiana University’s Center for Urban Policy and the Environment that found that costs creep back in and offset the savings of job cuts.
Material given to reporters Thursday by Somerset-Pulaski County United acknowledged that “while unified government may not save money, it will spend money more efficiently and help to hold down the rising cost of providing government services.
“Somerset-Pulaski County United is raising private contributions for one-third of the study’s $35,000 cost, said Brook Ping, a local developer and chairman of the group. The city and the county will be asked to contribute $11,600 each.
The cities of Burnside, Ferguson and Science Hill have been informed about the effort and could theoretically merge with Somerset and Pulaski County. The city of Eubank probably won’t be allowed to merge because it straddles the Pulaski-Lincoln line. Although a city can cross county lines, a merged government cannot under state law.
Ping emphasized that conducting a study does not mean that any local governments are consolidating. Under Kentucky law, only voters can determine whether local governments should merge.
Lexington and Louisville are the only merged city-county governments in Kentucky. Lexington voters approved merger in 1972; Louisville voters, in 2000. But voters rejected merger proposals in Franklin and Scott counties in 1988, in Daviess and Warren counties in 1990, in Taylor County in 2002, in Franklin County again in 2004, and in McCracken County in 2012.
The SPCU has a proposal from L.B. Schmidt & Associates LLC, a Louisville consulting firm, to conduct the study, which would compare existing forms of government to a unified government. The study would look at other cities across the country that have consolidated, including Lexington and Louisville.
The study would take about four months. The Schmidt firm would then present its findings to the community and make a recommendation on whether to pursue a unified government.
If the community decides to pursue a merger, the mayor and county judge-executive would jointly determine the size of a unified government commission, which would have 20 to 40 members.
That commission would develop a legal plan of unified government within two years of the commission’s appointment. If a majority of the members were unable to agree on a plan for unification within two years, the commission would dissolve.
If, on the other hand, the commission came up with a plan, it would hold public hearings to address questions from residents.
After its final public hearing, the commission would vote on the proposed plan and then submit it to voters. If the unification plan were rejected by voters, another vote could not be held for five years.
Somerset Mayor Eddie Girdler and Pulaski County Judge-Executive Barty Bullock were out of town Thursday could not be immediately reached for comment.
Greg Kocher: (859) 231-3305 Twitter: @HLpublicsafety.

 

Article was originally posted to The (Elizabethtown) News-Enterprise Web site http://www.thenewsenterprise.com/content/etown-msa-finishes-11th-gdp-growth
By Marty Finley
Sunday, February 24, 2013 at 2:05 am (Updated: February 24, 5:44 am)

The Elizabethtown MSA is no longer the alpha dog when it comes to real gross domestic product growth.

Of 366 MSAs nationally, the Elizabethtown MSA finished 11th nationally in real gross domestic product growth in 2011, recording a 6.1 percent increase from 2010, according to a report issued by the U.S. Department of Commerce, Bureau of Economic Analysis late last week. Odessa, Texas, finished first with a growth rate of 15.16 percent followed by nearby Midland, Texas, at 9.50 percent.

The Elizabethtown MSA rate ranks first among the eight other Kentucky MSAs, and local officials said it reflects consistent growth in GDP. Hardin County United in a news release noted the figures reflect a roughly 30 percent jump in overall GDP growth since 2008. Luke Schmidt, a consultant with HCU, said the MSA also is outperforming peer military markets in GDP growth, such as Hinesville-Fort Stewart, Ga., and Manhattan-Fort Riley, Kan.

“The area is doing well,” Schmidt said.

Real GDP measures an area’s gross product based on the national prices for goods and services produced in an MSA, according to the BEA. The rate is adjusted for inflation.

In real money, the MSA ranked 259th nationally in GDP at $5.6 billion, according to the report.

HCU in its release argued the rankings help attract companies wanting to expand into progressive and flourishing communities, opening up more job opportunities.

“And it’s sustained growth,” Schmidt said. “It’s not a flash in the pan.”

Elizabethtown was ranked first in GDP growth in 2010 with a 14.4 percent growth rate, but revised rankings for 2010 on the bureau’s website listed a growth rate of 16.62 percent during that year, dropping Elizabethtown to fifth.

Schmidt reviewed the documents but said the changes for 2010 were made quietly. The BEA, he said, has not issued follow-up statements explaining the reasons behind the revision.

Hardin Judge-Executive Harry Berry said the MSA has consistently finished strong in GDP growth and the 11th place ranking for 2011 reflects well on the area’s ability to maintain its success.

Berry said the rankings are impressive considering the Elizabethtown MSA is significantly smaller than the major metropolitan areas touting much larger GDP totals, referencing the Dallas and San Francisco MSAs.

Real GDP increased in 242 of the 366 MSAs during 2011 — growth sparked by professional and business services, durable-goods manufacturing and trade, according to the report.

Berry said Hardin County has benefited from expansions in manufacturing and industry with companies restoring their workforces to pre-recession levels.

“People like to be with a winner,” he said.

The Elizabethtown MSA also finished in the top five in personal and per-capita income growth in 2011.

“With continuing high rankings in personal income growth, per-capita income growth and GDP growth, our region will continue to receive ‘looks’ from companies that are interested in expanding to a dynamic and growing market,” Berry said.

Marty Finley can be reached at (270) 505-1762 or mfinley@thenewsenterprise.com.

 

Article was originally posted to the (Somerset) Commonwealth-Journal’s Web site http://somerset-kentucky.com/newslive/x1951907198/Airport-survey-confirms-potential

by Bill Mardis Commonwealth Journal

Somerset —

Results of a regional survey of airline travelers announced Tuesday indicate a robust market in this Southern Kentucky area for commuter airline service at Lake Cumberland Regional Airport.
Released by the Somerset-Pulaski County Development Foundation, the survey indicates a potential annual enplanement of 142,166 passengers who would use airline service in and out of the Somerset airport.
Both Martin Shearer, executive director of the development foundation and Luke B. Schmidt, president of L.B. Schmidt & Associates, LLC, project consultant, said a airline company is interested in providing commuter service at the local airport.
“It’s like recruiting an industrial prospect,” said Schmidt. “Name of the interested commuter service is confidential at this point.” He said there is still a lot of work to do, “ … dotting i’s and crossing t’s … like putting together a jigsaw puzzle.”
Schmidt noted the survey’s two strategic goals:
• Recruit a regional airline that is aligned with a major carrier such as American, Delta or US Airways.
• Establish service to a major connecting hub.
Schmidt said the interested airline service meets these objectives. The company has service in several small markets and  “ … has been around a long time,” Shearer revealed. He said the company is interested in establishing connection with a major airline hub and flying out of Somerset.
“We have made a lot of progress toward establishing a major market profile,” said Schmidt. The survey’s findings include the following information:
• Responding companies reported booking a total of 312 round trips by air each month.
• Approximately 612 visitors fly to the region each month to meet with responding companies.
• Total number of round trips by air to/from the region with responding companies equals 923 each month.
• Lexington is currently the preferred airport for flyers in Somerset, London and Corbin.
• Hours required to drive (one-way) to the primary airport in Lexington averaged 1.5 hours.
• Ninety-one percent of responding companies will use the service if a major connecting hub with reasonable fares is provided.
Although a commuter airline service out of Lake Cumberland Regional Airport would ultimately serve 16 counties in Southern Kentucky, Schmidt said the survey focused on the Somerset, London and Corbin areas. The reason, he said, is because these communities are the core of the proposed market with a combined population of 384,000. Schmidt met personally with several large employers in Somerset, London and Corbin areas.
A Florida-based commuter airline operated out of Lake Cumberland Regional Airport, first to Nashville and then to Washington, D.C., for a little more than two years. It was subsidized with about $900,000 obtained by Congressman Hal Rogers from the U.S. Department of Transportation and $100,000 in local matching funds. No sustaining local source of funding developed before the federal funds were exhausted and the airline shut down February 19, 2010.
The survey to reestablish commuter air service out of Lake Cumberland Regional Airport is an effort by Somerset-Pulaski Development Foundation, Somerset-Pulaski County Chamber of Commerce, Somerset-Pulaski Convention & Visitors Bureau, Corbin Economic Development Agency, London/Laurel County Chamber of Commerce, local airport board and Somerset and Pulaski County governments

 

 

Article originally posted to the (Pikeville) Appalachian News-Express Web site http://news-expressky.com/

BY RUSS CASSADY

Editor

After months of waiting, the controversy over whether coal severance funding should be used to finance a commercial air service project at the Pikeville-Pike County Regional Airport ended Friday when it was announced that $1 million had been allocated to the project.

In a press conference at Pikeville City Hall on Friday, representatives of the groups working to establish commercial air service at the airport gathered to make the announcement, made official by a statement from Gov. Steve Beshear that the project would receive the funding.

Pikeville City Manager Donovan Blackburn, who has been an active participant in several events and announcements this week regarding new projects in the City of Pikeville, said during the press conference that the air service project is “extremely important” to the success of the region.

“The face of Pikeville is forever changing,” he said. The commitment of $1 million in multi-county coal severance funding, Blackburn said, brings the total that those working on establishing the service have to $1.75 million, which will be used to establish a revenue guarantee program for the carrier which commits to coming to Pike County.

And, with the commitment, the air service could be established fairly quickly, according to Luke Schmidt, the consultant hired by the Southeast Kentucky Chamber of  Commerce, City of Pikeville and Pikeville-Pike County Airport Board to work on establishing the service.

“We hope to have a commitment in hand by the end of the first quarter of next year,” Schmidt said.
According to Schmidt, he works in several communities throughout the state, but that this one sets itself apart. “This is clearly one of the most progressive cities in the state,” he said. And according to Chamber President Jared Arnett, this project is just one of many that is helping to change the  business climate in Eastern Kentucky, despite questions over the energy industry.

“It’s imperative that we step up … and create a climate conducive to new investment,” Arnett said.

A statement from Beshear’s office said the successful recruitment of an airline will “significantly enhance economic development efforts and the creation of new jobs not only in Pikeville and Pike County, but also in the surrounding 12 counties.”

The funding was almost not obtained earlier this year. After announcing that the funding was  possible and that the support of Floyd County’s fiscal court had been obtained, organizers ran into questions from the Pike County Fiscal Court over the viability of the project and whether the multi-county coal severance funding, which had been uncommitted, should be used for the project.
After weeks of debate and a public forum hosted by the Appalachian News- Express, the Pike Fiscal Court voted 5-2 to support the funding. The county’s support was required for the funding to be processed.

One of the “No” voters, Dist. 6 Magistrate Chris Harris compared the funding, which will guarantee revenue for an airline, to “corporate welfare.”

“Many of us here would like to see commercial air service in Pike County; that’s not the issue,” Harris said during a fiscal court meeting. “The issue is, ‘At what cost do we want to see commercial air service in Pike County?’ At a time when we are looking at a loss of jobs, declining tax revenue, a limited amount of funding, I don’t think Pike County, right now, I don’t think we can afford this kind of project.”

Both Blackburn and Schmidt spent time on Friday thanking Pike Judge-Executive Wayne T. Rutherford and Floyd Judge-Executive R.D. “Doc” Marshall for their support. Blackburn said that a formal check presentation ceremony for the funding, which will include Beshear’s presence will be held at a later date.

Pike airport recieves $1M grant

Pike_airport_recieves_1M_grant0_1351912898
 Julia Roberts Goad

Staff Writer

PIKEVILLE, Ky. — The Pikeville/Pike County Airport came a step closer to commercial air service with the announcement of $1 million in grants from the Kentucky Department for Local Government from multi-county coal severance tax money.

The grant will be awarded once an airline is selected to provide commercial air service to the airport (PBX).

In addition, a Federal Small Aviation Grant granted the Pikeville City Commission received in 2011 was granted an extension of the $750,000 grant that was received for commercial air service last year, bringing the total of funds for the airport to $1.75 million.

Two commercial airlines have expressed interest in serving PBX, although both companies have remained anonymous.

Recruiting an airline to provide commercial service is one of the purpose of the grant. One of the methods of recruiting an airline is a revenue stream package. An airline doing business in the county would set a financial goal for each month. If the company falls short, money from the revenue guarantee package would be used to bring the amount of money the airline makes up to the monthly goal. The money would be given to the airline on a monthly basis so the company would not incur financial losses during the first two years of operation.

Luke Schmidt of LB Schmidt Associates, a consulting company which has been working with the City of Pikeville and the East Kentucky Chamber of Commerce on the airport project, said the revenue stream package is essential to an airline.

“It is expensive to for an airline to start a new route,” Schmidt said. “They have to invest in new planes, employees, equipment. If they lose too much money too soon, they aren’t going to stay. We need to make it profitable sooner rather than later.”

The grant was obtained after garnering support from the Floyd and Pike Counties Fiscal Courts.

However, the support of the Pike Court was not unanimous vote. Two of the six magistrates on the Court were not in favor of asking for coal severance tax money for the airport. Both Chris Harris and Jeff Anderson said they felt the airport would not be profitable. After initially refusing to throw his support behind the request for coal severance funds, Judge Executive Wayne T. Rutherford did vote in favor of the request.

Millions of dollars have already been used in the development of PBX, Pikeville City Manage Donovan Blackburn said, including $3,383,971 to complete the parallel taxiway alongside the airport’s primary runway, $330,513 in improvements and repairs to the primary runway, 679,000 for a new nine-aircraft T-hangar and $109,304 for the installation of a new Automated Weather Observation System.

Jared Arnette, President of the East Kentucky Chamber of Commerce, said the airport is the result of groups working together.

“This is the best example I have ever seen of teamwork,” Arnette said. “Our businesses spoke in one voice. The airport is part of the vision of economic development, they see value of a commercial airport. It is a milestone we have reached. In a time when people are concerned with energy, it is important to step up and say we are creating opportunity.”

 

Press release originally posted to Kentucky.gov Web site http://kentucky.gov/Pages/home.aspx

Friday, 11 02, 2012

Kerri Richardson
Terry Sebastian
502-564-2611

Multi-county coal severance tax grant to support new airline service at the Pikeville – Pike County Regional Airport

PIKEVILLE, Ky. – Governor Steve Beshear and the Kentucky Department for Local Government today announced a pledge of a $1 million multi-county coal severance tax grant to the city of Pikeville. The grant will be used to support the development of new airline service at the Pikeville – Pike County Regional Airport (PBX).

Pikeville’s elected officials, along with the Pikeville – Pike County Airport Board and the Southeast Kentucky Chamber of Commerce have been spearheading efforts to develop scheduled passenger airline service at the Pikeville field for more than two years. The grant will be awarded once an airline is selected to provide the public service. The proceeds of the grant will be matched with a $750,000 federal grant that the city of Pikeville received last year, and will be used as part of the project’s revenue guarantee program to assist a carrier in reaching sustainability during the start-up phase of service.

“So far, two airlines have expressed interest in serving PBX,” said Gov. Beshear. “Local officials have demonstrated strong leadership on this project, and the Commonwealth is pleased to partner with the community and airport officials to support ongoing efforts to develop new airline service.”

The grant will play an important role in the final stage of recruiting an airline to PBX. The successful recruitment of an airline will significantly enhance economic development efforts and the creation of new jobs not only in Pikeville and Pike County but also in the surrounding 12 counties.

“This is great news for our community,” said Sen. Ray Jones of Pikeville. “This grant puts us further down the road toward our goal of establishing scheduled airline service at PBX.”

“I want to thank Governor Beshear for his support of this important community goal,” said Rep. Leslie Combs of Pikeville. “We’re getting closer to our goal of new airline service to a major connecting hub which will truly connect Pikeville and Pike County to the global economy.”

“Our city appreciates the support of Governor Beshear and the Commonwealth,” said Pikeville Mayor Pro-Tem Jimmy Carter. “New airline service at PBX will help us to create new jobs in the coalfield.”

“The Commonwealth has been a wonderful partner at PBX ever since the field first opened in 1983,” said Bill Hickman, Chairman of the Pikeville – Pike County Airport Board. “This is yet another confirmation of this partnership as the airport continues to grow and serve the community.”

“New airline service at PBX will make it much easier for our business and professional community to compete in the global economy,” said Jared Arnett, president and CEO of the Southeast Kentucky Chamber of Commerce. “This grant helps us get closer to our goal of securing service.”

“This project enjoys widespread support,” said Luke B. Schmidt, President, L.B. Schmidt & Associates, LLC and consultant to the project’s leadership group. “Airline service will be a real game-changer for this community. I want to also thank Pike County Judge/Executive Wayne T. Rutherford and Floyd County Judge-Executive R.D. “Doc” Marshall for their support of our grant application.”

###

 

Reporter: Paige Quiggins

PIKEVILLE, Ky. (WYMT) – It is a project that has been in the works for quite a while and on Friday, officials in the city of Pikeville announced they have been able to secure funding to bring commercial air service to eastern Kentucky.

“If it’s ever going to happen, this is going to be the time,” said Jared Arnett, President/CEO of the Southeast Kentucky Chamber of Commerce.

Officials said that time has come.

“It’s just not conducive to the global economy to not have ticketed service right here locally,” said Arnett.

Arnett and many others said it was the time for officials to announce $1 million in multi-county coal severance money has been set aside to help bring commercial air service to the region.

City officials said it is an economic boost that will help industrial parks within the region. He said when they are told the closest airports are in Lexington or Louisville, it changed the game for some.

“When these site developers say ‘we want to come look at it’ and when we tell them you have to fly in and drive three hours, we really don’t even get into negotiation stage,” said Arnett.
“If we could have the opportunity where they could fly right in, see our sites, it would make a tremendous difference.”

Mayor Pro-Tem Jimmy Carter of the City of Pikeville said it will affect more than a dozen surrounding counties.

“This definitely makes us the hub of eastern Kentucky and with commercial air service, it solidifies the whole deal,” said Carter.

The project’s consultant said carriers must agree before the project fully takes off.

“We are in a great position to go and make our final push on recruiting with the two airlines who have expressed interest in this market so our intent to be now to get in front of them as quickly as we can,” said Luke Schmidt.

Schmidt said they could know that answer by March of next year and if the two considering commercial carriers commit by then, it will likely take six months to a year from then for the services to begin.

Officials said this million is in addition to a $750,000 federal grant which has already been set aside for the project.

 

Article originally posted to the Lexington Herald-Leader Web site http://www.kentucky.com/2012/08/24/2309254/sensible-ruling-on-liquor-sales.html#storylink=cpy

Published: August 24, 2012
Unfair to prohibit sale by grocers
You can fill a prescription at many grocery stores. You can pick up a gallon of milk at many pharmacies. You can buy a six-pack of beer at groceries and pharmacies.
But if it’s bourbon or a little of the bubbly you want, you’re good to go in many pharmacies but out of luck at most groceries. (A grocery can get a license to sell the hard stuff and wine if there is a separate entrance to that part of the store.)
This distinction between pharmacies and groceries when it comes to the sale of alcoholic beverages is unconstitutional, according to U.S. District Judge John G. Heyburn II. In a ruling issued last week, he said the Kentucky law barring liquor and wine sales at groceries and convenience stores violates the Equal Protection Clause of the U.S. Constitution.
Kentucky’s statute on this issue dates back to Prohibition days, when a prescription was need to buy alcoholic beverages. But Prohibition and the prescription requirement ended decades ago. Logically, the playing field should have been leveled then. But it wasn’t. As is so often the case, a statute outdated by changing times stayed on the books until someone (in this case, Maxwell’s Pic-Pac Inc. of Louisville and the Food and Wine Coalition) asked a court for a common sense application of the law.
And Heyburn’s ruling makes perfect sense. As he noted, the difference between modern groceries and pharmacies is minimal. So minimal that treating them differently on alcohol sales not only is unfair but is also totally illogical.
Heyburn’s ruling may well be appealed, which could delay its effect for months or years. However, there is a way to render any appeal of this decision moot.
Gov. Steve Beshear recently appointed a task force to study the state’s laws on alcoholic beverages. In a state with more than 70 different types of licenses for the sale of booze and wet, dry and “moist” conditions that can change voting precinct by voting precinct, the panel has much to study.
But one of the task force’s easiest calls should be a recommendation that the 2013 General Assembly repeal the archaic law that limits groceries and convenience stores to the sale of beer while allowing pharmacies to cater to all alcoholic beverage tastes. It’s the fair and sensible thing to do.