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November 21, 2014 By Luke Schmidt

Minimum wage hike – let’s think this through Louisville Business First

Article originally posted to the Louisville Business First web site http://www.bizjournals.com/louisville/print-edition/2014/11/21/minimum-wage-hike-let-s-think-this-through.html?page=all

Minimum wage hike — let’s think this through

Guest Comment

Luke B. Schmidt

As the president of a small management-consulting firm, I have followed with interest recent discussion in the community about raising the minimum wage.

To begin with, I think that it is fair to say that each of us as employers, employees or consumers want to see that workers are fairly compensated. It goes back to the old saying: “an honest day’s pay for an honest day’s work.”

But recent interest on the part of some Louisville Metro Council members in raising the minimum wage in Louisville raises several red flags. It would be easy for the council to pass minimum wage legislation, but there would be several ramifications, including:

Is it really government’s place to dictate to business what workers should be paid? The answer is NO.

Our country operates on the free enterprise system, meaning that government should stay out of the way when it comes to everyday operating issues. Government’s role is to ensure a safe workplace and a competitive marketplace.

Raising the minimum wage would only make Louisville even less competitive with surrounding counties — in both states.

Louisville Metro would transform into an island unto itself and would become a less competitive marketplace when compared to surrounding counties. Retail prices would go up in Jefferson County and could surpass retail prices in surrounding counties, thereby putting local merchants at a real competitive disadvantage.

Raising the minimum wage would result in businesses passing along this added cost to customers. This would affect my consulting firm and every business in Jefferson County.

It most likely would result in some of my company’s local purchases for goods and services being diverted to merchants outside Jefferson County or to the Internet.

The purpose of the minimum wage is to serve as an entry-level wage or a part-time wage, not a full-time wage. The goal should be to get full-time workers up and beyond the minimum wage as quickly as possible.

Focusing on raising the local minimum wage misses the point entirely.

The focus should be on what can be done to improve the climate for creating new jobs — not only in Jefferson County but all of Kentucky.

Here are three things that government can do to create really good jobs going forward:

1. Pass right to work legislation. Kentucky is the only state in the Southeast and one of several in the Midwest that does not have this legislation, which has proven to be a magnet for big-time industrial development. (Read: new high-paying jobs.)

2. Pass meaningful tax reform. The change needs to be more than just a line in the tax code here and a line in the tax code there. Comprehensive, overall reform is required. Kentucky needs a competitive tax system that generates meaningful revenue to fund appropriate government programs/services but doesn’t send potential new business/industrial investment to Tennessee.

3. Pass LIFT, or local-option sales tax, legislation. This would give local voters a say in funding special projects in all 120 counties — projects that would create lots of new construction jobs.

In many respects, Kentucky is no longer (and hasn’t been for quite a while) competitive with most of our surrounding states. Look at the rate of growth, jobs, population, etc., in Kentucky and then compare it with Georgia, North Carolina, South Carolina and Tennessee.

Rather than focus on a small piece of the puzzle, let’s focus on big steps that will create thousands of new, high-paying jobs in Kentucky — and Jefferson County. It’s time for bold leadership!

Luke B. Schmidt is president of L.B. Schmidt & Associates LLC, a Louisville-based full service international management consulting firm.

Filed Under: 2014, Economic Development News, Government Relations News, Latest News Tagged With: Economic development, Government relations, luke schmidt

October 29, 2014 By Luke Schmidt

Commercial Air Service From Pikeville to Nashville Officially Takes Flight WEKU-FM (Eastern Kentucky University NPR Radio)

Article originally posted to the WEKU-FM web site http://weku.fm/post/commercial-air-service-pikeville-nashville-officially-takes-flight

By Stu Johnson WEKU News

New Commercial Airline Service in Pikeville Could Bring Economic Benefits

The official launch of Appalachian Air occurred earlier this week in eastern Kentucky.  Officials are hopeful new daily commercial air travel between Pikeville and Nashville will allow for new economic development in the region.  Luke Schmidt is a Project Consultant for Pikeville Air.  “It will now become easier for people who want to travel to Pikeville and eastern Kentucky from other business centers around the country, including people who might be representing companies that are interested in investing in the region, maybe building a factory, creating new jobs,” said Schmidt.

Schmidt says present day economic development is all about access and travelling from corporate headquarters to remote operations. Schmidt says a person travelling from Pikeville could make it to Los Angeles before noon Pacific Time.  “You can get on the plane at Pikeville at 6:30 in the morning, arrive in Nashville about 7:00 a.m. with the time change and Central Time. And then you can connect with 50 some odd cities from Nashville,” added Schmidt.

Listen to the interview by clicking on the following link:

http://weku.fm/post/commercial-air-service-pikeville-nashville-officially-takes-flight

Filed Under: 2014, Economic Development News, Latest News Tagged With: Airline service, aviation, Community Developmen t, Economic development, luke schmidt, pike county, pikeville

October 28, 2014 By Luke Schmidt

Appalachian Air Takes Off WOWK-TV (Charleston/Huntington)

Article originally posted to the WOWK-TV web site http://www.wowktv.com/story/27060556/appalachian-air-takes-off

PIKEVILLE, Ky. (AP) – Appalachian Air is celebrating its first round-trip commercial flight.

WYMT-TV reports the airline flew from Pikeville, Kentucky, to Nashville, Tennessee, on Monday and returned about 12 hours later.

The maiden flight had fewer than 10 aboard, but Appalachian Air officials say they think seats will fill up as more people learn about the service. The Jetstream J32 turboprop aircraft holds 19 passengers.

Appalachian Air spokesman Luke Schmidt says officials hope that bringing commercial air service to eastern Kentucky will help the economy.

The flight came about six months later than originally planned because airport officials had to wait to get the proper certifications.

The service will offer daily flights from Pikeville to Nashville.

Information from: Appalachian News-Express, http://www.news-expressky.com

Filed Under: 2014, Economic Development News, Latest News Tagged With: Airline service, aviation, Community Developmen t, Economic development, luke schmidt, pike county, pikeville

October 28, 2014 By Luke Schmidt

Appalachian Air takes off from Pikeville to Nashville Lexington Herald-Leader

Article originally posted to the Lexington Herald-Leader web site http://www.kentucky.com/2014/10/28/3505445/appalachian-air-takes-off.html

PIKEVILLE, Ky. — Appalachian Air is celebrating its first round-trip commercial flight.

WYMT-TV reports the airline flew from Pikeville, Kentucky, to Nashville, Tennessee, on Monday and returned about 12 hours later.

The maiden flight had fewer than 10 aboard, but Appalachian Air officials say they think seats will fill up as more people learn about the service. The Jetstream J32 turboprop aircraft holds 19 passengers.

Appalachian Air spokesman Luke Schmidt says officials hope that bringing commercial air service to eastern Kentucky will help the economy.

“We think that by connecting Pikeville and Eastern Kentucky to the global air system, it will help create jobs,” Schmidt said. “It will help people interested in investing in the region to get here and find out what a great community it is and what is available here.”

The flight came about six months later than originally planned because airport officials had to wait to get the proper certifications.

Skip Holmes with the Southeast Kentucky Chamber of Commerce was aboard the flight and said landing close to home was the best part.

“Being able to come here, get in my car, be in my easy chair in 15 minutes, that’s perfect,” Holmes said.

The service will offer daily flights from Pikeville to Nashville.

Meanwhile, the Appalachian News-Express reports that officials are still working with the Transportation Safety Administration in an effort to get screeners at the airport.

Pikeville City Manager Donovan Blackburn called the start of air service in Pikeville a “great day.”

“The development of commercial air service in Pikeville has been a community goal going all the way back to 1968,” he said in a statement. “The City of Pikeville appreciates the commitment and the investment that both Corporate Flight Management and Public Charters have made to the city. Now we want anyone who is planning a trip by air to first consider flying Appalachian Air, no matter where you are going. Chances are you will be able to fly right out of Pikeville and avoid the six hour roundtrip drive to Lexington.”

Filed Under: 2014, Economic Development News, Latest News Tagged With: Airline service, aviation, Community Developmen t, Economic development, luke schmidt, pike county, pikeville

October 27, 2014 By Luke Schmidt

Appalachian Air completes first commercial flight from Pikeville to Nashville WYMT-TV (Hazard)

Article originally posted to the WYMT-TV web site http://www.wkyt.com/yourtown/locations/pike/headlines/Appalachian-Air-takes-trial-flight-from-Pikeville-to-Nashville–245305681.html

PIKEVILLE, Ky. (WYMT) Update: 10/27/14

Monday marked the beginning of a new era in transportation in Eastern Kentucky with the first round trip commercial flight between Pikeville and Nashville.

The plane left Pikeville/Pike County Regional Airport at 6:30 a.m. Monday and returned about 12 hours later.

“The community has had a long-held goal to bring commercial air service to the mountains and today was the day we made it happen, so it’s a big day,” Appalachian Air spokesman Luke Schmidt said.

“We think that by connecting Pikeville and Eastern Kentucky to the global air system, it will help create jobs,” Schmidt said. “It will help people interested in investing in the region to get here and find out what a great community it is and what is available here.”

Fewer than 10 people were aboard Monday’s flight, but Appalachian Air officials are optimistic seats will start filling up as more people hear about the service.

Skip Holmes with the Southeast Kentucky Chamber of Commerce made the round trip Monday. He said the best part is being close to his home in Floyd County when the plane lands instead of having to drive back from the airports in Lexington or Louisville.

“Being able to come here, get in my car, be in my easy chair in 15 minutes, that’s perfect,” Holmes said.

Right now, one round trip flight per day is scheduled to leave Pikeville every morning at 6:30.

To book a flight and look up ticket costs, visit AppalachianAir.com.

To watch the television news story, please click on the following link:

http://www.wkyt.com/yourtown/locations/pike/headlines/Appalachian-Air-takes-trial-flight-from-Pikeville-to-Nashville–245305681.html

Filed Under: 2014, Latest News Tagged With: Airline service, aviation, Community Developmen t, Economic development, luke schmidt, pike county, pikeville

October 24, 2014 By Luke Schmidt

Appalachian Air to launch first flight from Pikeville on Monday The Lane Report

Article originally posted to The Lane Report web site http://www.lanereport.com/40567/2014/10/appalachian-air-to-launch-first-flight-from-pikeville-on-monday/

Inaugural flight will go to Nashville

PIKEVILLE, Ky. (Oct. 24, 2014) — Appalachian Air is ready to launch its inaugural first flight from Pikeville. The first flight, from Pikeville to Nashville International Airport, is scheduled for leave Kentucky at 6:55 a.m. on Oct. 27. Flight time will be a little more than one hour. The new service is operated by Public Charters Inc. of Avoca, Pa,. and Corporate Flight Management of Smyrna, Tenn.

“After nearly four years of planning, recruiting, meetings, teleconferences, addressing regulatory hurdles, etc., on the part of our community and air service partners, we are ready to launch the very first commercial air flight from Pikeville and Eastern Kentucky,” said Luke B. Schmidt, President of L.B. Schmidt & Associates, LLC, the Louisville-based consulting firm that has been facilitating the development of air service in Pikeville for the City of Pikeville, the Pikeville – Pike County Airport Board, and the Southeast Kentucky Chamber of Commerce. “Everything is set and we are ready to welcome our first passengers on board the Jetstream J32.”

Appalachian Air will launch the service with one daily roundtrip (the return flight departs BNA at 4:30 PM CDT and arrives back in Pikeville at 6:55 PM EDT).  The Appalachian Air aircraft will overnight each night at the Pikeville – Pike County Regional Airport.

“This is a great day for the City of Pikeville,” said Donovan Blackburn, Pikeville City Manager. “The development of commercial air service in Pikeville has been a community goal going all the way back to 1968.”

Filed Under: 2014, Economic Development News, Latest News Tagged With: Airline service, aviation, Community Developmen t, Economic development, luke schmidt, pike county, pikeville

February 13, 2014 By Luke Schmidt

Appalachian Air takes trial flight from Pikeville to Nashville WYMT-TV (Hazard)

Article and video news report by Hillary Thornton originally posted to the WYMT-TV web site http://www.wkyt.com/wymt/home/headlines/Appalachian-Air-takes-trial-flight-from-Pikeville-to-Nashville–245305681.html

PIKEVILLE, Ky. (WYMT) Get ready for take off. In November, state and local leaders announced a new commercial air service coming to Eastern Kentucky. On Wednesday, many local leaders were on board for the trial flight.  WYMT also flew along as they toured the facilities in Nashville.

More than a dozen people boarded the plane and took part in the hour long flight.

Project leaders have been busy preparing for the launch of Appalachian Air.

Luke Schmidt says, “We are daling with things like improving infrastructure at airport and dealing with creating TSA screening and security plan…we are in the middle of that right now.”

Officials say Wednesday’s trip is another step to getting the service up and running…touring the operating company, Cooperate Flight Management’s maintenance facilities.

CFM Chief Executive Allen Howell says, ” I think the community leaders have a real vision for what air service does for a community from the economic development stand point. The community understands this is an infrastructure issue, just like having a good highway system.”

Wednesday’s passengers, also getting a first hand look at Nashville International Airport, which officials say will be a huge gateway to Eastern Kentucky.

Passengers on Appalachian Air will fly in and out of Terminal C, which is in the main hub of the Nashville airport….with 70% of the airport’s business taking place in that terminal.

Once in Nashville, passengers will not have to go back through security, making for easy connections and quick travel.

Schmidt says, “The Nashville airport is growing and it has a lot of service but it is not Atlanta and it is not Chicago, which on any scale are huge, complex, and can be cumbersome.”

Officials  hope to get Appalachian Air officially off the ground on April 14th, with ticket sales starting on February 24th.

That start date is a little later than officials had anticipated, due to some delays they could not control like the time it took to get proper certifications…which they say was slowed down due to the government shutdown.

Schmidt says, “Everyone involved in this project, whether they are in Pikeville or one of our providers, we are all comitted to doing this thing 100% – – first class all the way. We don’t want anything to slip through, so that’s why we did that.”

Officials say a new website should be operating soon and will feature a trip calculator to help folks compare prices from other airports, while taking into account driving time and expenses.

 

 

Filed Under: 2014, Economic Development News, Latest News Tagged With: Airline service, aviation, Economic development, luke schmidt, pike county, pikeville

January 25, 2014 By Luke Schmidt

Tone of SPCU report is positive (Somerset) Commonwealth Journal

Article originally posted to the (Somerset) Commonwealth-Journal’s web site http://www.somerset-kentucky.com/local/x1768000277/Tone-of-SPCU-report-is-positive

by Chris Harris Commonwealth Journal         Fri Jan 24, 2014, 05:29 PM EST

Somerset — Around 140 people attended Thursday night’s public unveiling of a $35,000 study designed to determine the feasibility of a united city-county government here in Pulaski County.
The tone of the presentation was overwhelmingly positive toward the idea that the area could benefit from a merging of local governments, focusing on several communities — including Athens, Ga., Butte, Mont., and Lexington and Louisville, Ky. — that apparently benefited from a similar unification.
“I think this community is at a real crossroads,” announced Luke Schmidt, president of Louisville firm L.B. Schmidt & Associates, and the man who conducted the study and presented it Thursday at the Somerset-Pulaski County Chamber of Commerce  “Business After Hours” event at The Center for Rural Development.

 
“You have a lot of great things here, a very good quality of life,” he continued. “… I think you have a real question to ask yourselves, and that is: Do we want to take our good local government and make it great? Do we want to bring new opportunities for growth and development and new jobs into the community that we might not get otherwise, unless we consider a change in … government?

 
“My recommendation to the community is, I think unified government, if it’s carefully crafted, carefully considered, and properly implemented … can, in fact, bring some benefits to the community,” he added. “If you draft a poorly-drafted plan, it won’t work. But if you really get involved, stay on it, and take the time and put together a really good plan, I think the opportunity exists to really move this community to the next level.”

 
Schmidt specified that this is because it gives the community “the ability to speak with one voice” in Frankfort and Washington; because clashes between local governments — and as Schmidt alluded to multiple times, the Pulaski County government and City of Somerset have had their share over the last year, particularly over occupational tax distribution — can potentially drive away businesses looking to locate here; and becoming the third-largest community in the state in terms of population.

 
Schmidt said that he saw only two disadvantages to a merger: the loss of USDA loans due to population thresholds (which would take place if the city reached second-class status with a population of 20,000 — which, Schmidt said, has been a stated goal of Somerset Mayor Eddie Girdler anyway), and potential loss of community identity, which Schmidt also downplayed, as “it’s not like the complexion of the community will just dry up and disappear,” as he put it.

 
The results of the study are available at www.spcunited.com. SPCU (Somerset-Pulaski County United) is the group made up of numerous local citizens and businesspersons who pushed for the feasibility study to take place.

 
The study was just research; any unification of local governments would have to be voted upon by Pulaski County citizens, and the process could take years if it ever gets off the ground at all. Schmidt stressed that without participation by the City of Somerset, the plan wouldn’t work.

 
To date, Mayor Eddie Girdler and the Somerset City Council have been resistant to working with those conducting the study.

 
Pat Bourne was one councilor who attended the Thursday meeting. He said he hadn’t “established an opinion” on the matter but was just there as a citizen to learn more.

 
“It didn’t tell me anything that I hadn’t already thought of,” he said of the presentation. “I don’t know where this thing’s going or if they’re going to continue doing research on it or not.”

 
Bill Leslie of the Burnside City Council was in attendance too. He didn’t expect a unified government situation to ever transpire given Somerset’s opposition, nor did he think it was a good idea for his own city.
“No, I don’t,” he said when asked if he thought unified government would be in Burnside’s best interests. “We would lose our identity as Burnside. … We have these individual forms of government because that’s what we chose. If we’re going to merge, why not merge all the states? Do away with all local governments? No, that’s not the way to do it.”

 
Other officials had a more favorable reaction, particularly those representing the county government. The Pulaski County Fiscal Court, unlike the Somerset City Council, opted to help fund a third of the cost of the study.
“I think personally that we need to look into bettering our county,” said Fifth District Magistrate Mike Strunk. “… I think we need to look into (the merger plan) more. From what I heard tonight, yeah, I think it could be the best thing for our county.”

 
“My take as a magistrate is that I feel like we owe it to the county to look into this,” said Third District Magistrate Glenn Maxey. “… We have talked to these people a couple of times before. (The presentation) did shed light on a couple of different things I didn’t realize, like some of the cities that had gone into (a similar situation).”

 
Judge-Executive Barty Bullock was present Thursday night and said a lot of “good questions” were asked and answered.

 
“I think as elected officials, it’s our responsibility to look at every option to see if there’s something out there that’s better for the people of the county,” he said. “It’s something I can’t do or the mayor can’t do on his own. It has to go to a public vote. We as officials would abide by whatever the people vote for.”

 
Tiffany Bourne, Community Development Director with the county government, said that streamlining government would create less competition over financial resources.

 
“It is hard enough to compete with other counties and states for grant money without having to compete with our local cities,” she said. “No matter who the voice is, we need to speak as one voice.”

 
Bobby Clue, executive director of the Somerset-Pulaski County Chamber of Commerce, said that Schmidt’s presentation was “solid” and provided a lot of good information.

 
“The jury’s still out as far as we’re concerned,” he said. “We (the Chamber) are going to go back and meet as a board and we’re going to truly review what we’ve seen tonight. As soon as we do that, hopefully we’ll be able to come up with some conclusions on how we truly feel about united government.”

 
Clue said that having lived in Lexington, which merged with Fayette County decades ago, he saw lots of positives and very few negatives in that community. He noted that it’s difficult to tell if all of the developments Schmidt pointed out that occurred in other unified communities happened because of a merger similar to what’s being proposed in Pulaski County.

 
“We’re cautiously optimistic,” he said.

 
Numerous other individuals not in a public office of some kind also came to the meeting to hear what Schmidt had to say, and came away with a collectively mixed reaction.

 
Patty Ping of Childers Financial Services was all for the plan she heard about on Thursday night.

 
“I think it’s a great thing, long overdue,” she said. “I think there’s a lot of waste, a lot of repetition (in government). It would make things much simpler for us as citizens with what they’re trying to do to draw in industry and keep the population here, and even bring in new population. … I think (the study) was very informative, especially if you have an open mind.”

 
Ross Rutt, director of operations for Blackboard Student Services, didn’t share the same optimism.

 
“My biggest issue is that I think the priority of the county is job growth … and I just don’t see where any unified government at this point in time shows any data that it would improve net job adds,” he said. “My concern is that I see a lot of folks as public officials, representatives of the community organizing around this as opposed to job growth and that just sort of perplexes me. … I believe from an efficiency perspective (the plan) makes sense. I just believe that if we really want to improve our community, it’s going to be about focusing on really bringing some real jobs in. That’s what’s driving the issues with our community, like drug use and poverty.”

 
Real estate appraiser John Haney said that a unified government could be a “great step forward” for the community, and that the presentation raised a lot of intriguing questions for him.

 
“(The study) didn’t sway me either way,” he said. “My opinion has been that I’ve been on board with the merger or the prospect of looking into it since Day 1.”

 
According to Dave Weddle of Wellhead Energy Systems — the man whose Progress Somerset group successfully led a drive to make Somerset “wet” with alcohol sales in 2012 — it’s all just speculation unless Somerset city leaders indicate that they’re on board.

 
“It’s really impractical to do this without Somerset being fully engaged in the unification process,” he said. “… You’d have to assume that if the city (voting base) comes back and keeps things as they are (in the upcoming election), that would be a strong point on them saying they’re happy with the way things are.

 
“I think any place that doesn’t look at change every day … will probably fall behind,” added Weddle. “There are real, positive attributes to looking (at a unified government plan), but again, the devil is in the details.”

Filed Under: 2014, Consolidated (Metro) Community Government News, Latest News Tagged With: consolidated government, Government relations, luke schmidt, pulaski county, somerset, somerset - pulaski county united, Unification, Unified government

January 23, 2014 By Luke Schmidt

“Unified Government” Study released in Pulaski County WYMT-TV (Hazard)

Article originally posted to WYMT-TV web site http://www.wkyt.com/wymt/home/headlines/Unified-Government-Study-released-in-Pulaski-County-241772741.html

 

The Pulaski County Unified Government Study Findings Presentation was held Thursday at the Center for Rural Development in Somerset. The study was commissioned by “Somerset-Pulaski County United” and the Pulaski County Fiscal Court and was conducted by a Louisville-based consulting firm.

A study to explore a unified government in Pulaski County that was the topic of conversation in Somerset Thursday, but what exactly is a “unified government” anyway?

“It’s essentially a merger of two or more local governments.  Instead of having, say four cities and one county government.  In theory, a combined or unified government could consolidate all of those governments into one streamlined government,” said Luke Schmidt of L.B. Schmidt & Associates, LLC, the firm that conducted the study.

And that was the theory presented to dozens of community members.  More specifically, organizers say the goal was to explain how such a government could be implemented in the future.

“We just want to educate the community on what the possibilities are for economic development and opportunity in Pulaski county and Somerset,” said Brook Ping of Somerset – Pulaski County United.

But not everyone in the area supports the idea of unifying municipal governments.  The city of Somerset elected not to participate in the study, its mayor saying such a path would have negative consequences.

“It’s not in the best interest of our citizens, or voters of Somerset, to take our resources and the efforts we’ve made and to virtually give them away to the county,” said  Eddie Girdler, mayor of Somerset.

But organizers behind the study say this presentation should not be misinterpreted as a vote of support for a unified government, but merely as a starting point to begin the conversation.

Filed Under: 2014, Consolidated (Metro) Community Government News, Latest News Tagged With: consolidated government, Government relations, luke schmidt, pulaski county, somerset, somerset - pulaski county united, Unification, Unified government

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