Kentucky Economics AssociationOctober 2014

Paul Coomes, Ph.D.Emeritus Professor of Economics

University of Louisville

Nine Economic Regions of Kentuckyprovocative facts, policy challenges for future

What was Kentucky’s 1958 rank among states in terms of earned per capita income?

32nd

38th

46th

50th

Kentucky’s rank among 50 statesPersonal income minus transfer payments, per capita

1958: 46th

2013: 46th

Thank goodness for West Virginia, Mississippi, South Carolina, and Arkansas.

0.62

0.64

0.66

0.68

0.70

0.72

0.74

0.76

0.78

0.80

0.82

0.84

1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008 2013

Relative ProsperityEarned Income per Capita, Kentucky vs. US

Source: US Bureau of Economic Analysis; calculated by subtracting transfer payments from total personal income, then dividing by population. Chart shows the ratio of Kentucky to United States. For example, in 2013, Kentucky had$27,800 in earned income per capita vs. $36,800 in the US overall. So, the ratio is 0.75. Kentucky ranked 46th among states, ahead of Mississippi, West Virginia, Arkansas and South Carolina.

46th rank among 50 states

43rd rank

47th rank

46th rank

Regional Economic Development in KentuckyWhere are we? Where have we been? Where are we going?

Talking about the per capita income of Kentuckians is like talking about the average elevation of Colorado. It is the variation around the average that is interesting.

The State of Kentucky is not an economy in any meaningful sense – not a labor market, not a housing market, not a retail market, not a media market. States, counties, municipalities are political and administrative entities.

While a county is closer than a state to a market boundary, most markets encompass many counties. Consider television market areas (the ABC, CBS, NBC network broadcast territories).

Television Market Boundaries

The maps linked below were retrieved from the U.S. Census Bureau web site (http://quickfacts.census.gov/qfd/) and altered to show TV markets by county. The TV Market information was derived from pictures once available on the now defunct www.echostarmerger.com, select TV station web sites and other sources on the web. At no time was the Nielsen Media Research Co. web site nor any other material directly attached to same ever consulted The TV Market borders change slightly every September. The most if not all the maps linked below are current as of the 2006-2007 season. The map above is derived from information retrieved in the 2002-2003 season and is there for historical purposes. If you have any questions, comments or corrections, please e-mail me at tvmarkets@echostaruser.com

KY is somewhere in here. TV stations don’t care.

http://dishuser.org/TVMarkets/Maps/kentucky.gif9 Available on Dish Network: Bristol (TN/VA) Cincinnati (OH), Charleston/Huntington (WV), Evansville (IN), Knoxville (TN), Lexington, Louisville, Nashville (TN), Paducah 1 Not Available on Dish Network: Bowling Green

Somerset: cable provides WBIR-NBC from Knoxville TN

Bowling Green: CBS broadcast is from WTVF in Nashville TN

10 Television Market Boundaries around Kentucky

all except Lexington and Bowling Green stations are multi-state

A Google Map View

Cincinnati- Northern Kentucky

Ashland-Huntington-CharlestonLexington

Bowling Green-Hopkinsville-

NashvillePaducah-Purchase

Evansville-Owensboro-Henderson

Louisville-Elizabethtown-

Southern Indiana

Mountain

Stylized economic regions based on major cities, TV

markets, and terrain.

Somerset-Cumberland-

Knoxville

Developing Useful Economic Development GeographiesDetailed County Assignments to Nine Regions

Thankfully, the Census Bureau gives us a good start by defining metropolitan, micropolitan, and combined statistical areas based on employment interchanges between counties.

For example, the Frankfort, Mt. Sterling, and Richmond micropolitan areas are part of the Lexington Consolidated Statistical Area. Using these definitions, we can assign 48 of Kentucky’s 120 counties to one of the nine economic regions.

The hard part is looking at counties at the margins of the major market areas, and assigning them to one economic region. I look at television markets and commuting patterns from the Census Bureau’s American Community Survey 2006-2010.

For example, where to assign Danville and its two micropolitan counties – Boyle and Lincoln?

Both counties receive television from the Lexington market.

Top external destinations for work of Boyle + Lincoln residents:Mercer (1,056 + 372) = 1,428Fayette (811 + 429) = 1,240Jessamine (368 + 457) = 825Pulaski ( 54 + 517) = 571Garrard (257 + 250) = 507Franklin (187 + 155) = 342

Mercer, the top destination, and Garrard are also served by the Lexington TV market. Fayette, Jessamine and Franklin are in the Lexington CSA. So, assign Boyle, Lincoln, Mercer and Garrard to the Lexington region.

Note there is a pull towards Pulaski County from Lincoln County. So, assignment is not perfect.

Louisville

Cincinnati

New York

DestinNaples

Which of the nine regions is the most densely populated?

Louisville

Northern Kentucky

Mountain

Lexington

232.7218.5

134.3

80.473.3 69.2 68.4 68.3

58.3

110.3

0

50

100

150

200

250

Density: Population per Square Mile, 2012

Northern Kentucky and Louisville regions three times more dense than five most sparse regions: economies of scale in

cost of delivering public services (e.g., schools, safety, roads, health care).

19.422.222.423.525.626.027.327.328.529.629.930.330.630.832.232.332.532.633.2

136.8137.3140.0159.9172.2175.1194.3212.3217.1235.9256.8260.5

290.1305.1329.6

505.2599.6

1,003.71,083.9

1,966.1

0 500 1,000 1,500 2,000 2,500

HickmanCumberland

RobertsonOwsley

CrittendenCarlisle

LeslieBreathitt

LewisLivingston

ButlerOwenFulton

MenifeeTrigg

MonroeWolfeElliottTodd

LaurelMontgomery

ClarkBoyle

HardinScott

MadisonDaviessWarrenFranklin

BullittMcCrackenJessamine

BoydOldham

BooneCampbell

KentonFayette

Jefferson

Population Density by County, Top 20 and Bottom 20Top three

counties over 30 times more dense than

sparsest counties.

Which of the nine regions has the least population growth this decade?

Mountain

Cumberland

Paducah - Purchase

Louisville

-8,500

-1,846

-428

843

1,136

6,337

9,246

21,030

28,120

-15,000 -10,000 -5,000 0 5,000 10,000 15,000 20,000 25,000 30,000

Mountain

Ashland

Paducah-Purchase

Cumberland

Owensboro-Henderson

Bowling Green-Hopkinsville

Northern Kentucky

Lexington

Louisville

Total Population Change, 2010 to 2013Source: US Census Bureau

Kentucky as a whole gained

56,000 persons

This decade so far

declining population at tails of state

-2.5%

-1.2%

-0.2%

0.3%

0.4%

1.6%

2.0%

2.2%

2.3%

-3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0%

Mountain

Ashland

Paducah-Purchase

Cumberland

Owensboro-Henderson

Bowling Green-Hopkinsville

Northern Kentucky

Louisville

Lexington

Percent Population Change, 2010 to 2013Source: US Census Bureau

Kentucky State Total: 1.3%

This decade so far

-808

-754

-73

1,285

1,321

5,626

8,384

10,887

16,415

-2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000

Mountain

Paducah-Purchase

Ashland

Owensboro-Henderson

Cumberland

Bowling Green-Hopkinsville

Northern Kentucky

Lexington

Louisville

Natural Population Increase, 2010 to 2013, Births minus DeathsSource: US Census Bureau

Kentucky State Totals:179,000 births137,000 deaths

net gain of 42,000 persons

This decade so far

more deaths than births

991,333

539,488

324,982 308,477 273,042 243,900 194,843 187,678134,257

311,575

379,293

7,267158,097

131,213

49,130 109,63335,438

15,649

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Population of Regions, 1969 and 2013

Growth 1969 to 2013

1969 Source: US Census Bureau

Mountain region was third most populated; now is fifth,

and heading towards seventh.

Regions contain 28 counties, with combined population less than that of Jefferson County

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Population of Regions East of I-75, Four Decades

Source: US Census Bureau

Mountain

Peak: 408,000 in 1983

Net loss of 76,000 since 1983

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Population of Regions East of I-75, Four Decades

Source: US Census Bureau

Mountain

Cumberland

Ashland

Net loss of 76,000 since 1983

Net gain of 49,000 since 1983

Which region has the highest income from farming?

Owensboro-Henderson

Bowling Green - Hopkinsville

Cumberland

Lexington

$255,523,100$242,299,000$239,723,000

$200,756,100

$80,180,100

$22,089,700$5,642,600

-$3,718,200 -$9,913,400

-$50,000,000

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

Average Annual Farm Income, 2003-2012, by Economic Region

Source: US Bureau of Economic Analysis; includes wages, salaries and farm proprietors' income.

Equine…Grain, poultry, livestock

Which region has the highest income from mining?

Owensboro-Henderson

Paducah - Purchase

Mountain

Lexington

$1,253,119,000

$398,868,000

$201,759,000

$68,542,000 $58,235,000 $39,632,000 $33,143,000 $29,334,000 $3,858,000$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

Earnings from Mining Industries, 2012, by Economic Region

Source: US Bureau of Economic Analysis; includes wages, salaries and proprietors' income. Some county-level estimates imputed by author; $138 million could not be assigned to any county.Mountain and

Owensboro-Henderson regions ($1.7 billion) account for 75% of Kentucky total

Which region has the highest income from manufacturing?

Louisville

Ashland

Lexington

Northern Kentucky

$5,421,629,000

$3,622,803,000

$1,683,255,000$1,629,833,000

$1,275,473,000

$817,746,000$669,310,000

$378,213,000$125,637,000

$0

$1,000,000,000

$2,000,000,000

$3,000,000,000

$4,000,000,000

$5,000,000,000

$6,000,000,000

Earnings from Manufacturing Industries, 2012, by Economic Region

Source: US Bureau of Economic Analysis; includes wages, salaries and proprietors' income.

Louisville and Lexington regions ($9 billion) account for 58% of Kentucky total

$2,547,205,000

$731,517,000$582,648,000

$367,043,000$222,557,000 $203,341,000 $184,580,000 $174,393,000 $150,239,000

$0

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

$3,000,000,000

Earnings from Distribution Industries, 2012, by Economic Region

Source: US Bureau of Economic Analysis; includes wages, salaries and proprietors' income. Distribution includes alls transportation and warehousing industries. Estimates imputed for some counties by author; about $660 million could not be assigned to any county.

Louisville accounts for 44% of state total. Louisville, NKy, Lexington regions combined account for 66% of Kentucky total

$2,643,889,000

$1,358,505,000

$559,664,000

$283,357,000$162,867,000 $161,675,000 $124,528,000 $122,822,000 $105,255,000

$0

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

$3,000,000,000

Earnings from Office Industries, 2012, by Economic Region

Source: US Bureau of Economic Analysis; includes wages, salaries and proprietors' income. Distribution includes all professional, scientific, and technical service industries. About $275 million could not be assigned to any county.

Louisville region accounts for 46% of state total.

Louisville, Lexington, Nky regions combined account for 79% of Kentucky total

Which region has had the strongest job growth since the bottom of the 2008-09 recession?

Lexington

Bowling Green - Hopkinsville

Paducah - Purchase

Ashland

13.1%

-5.3%

6.4%

11.3%

6.7%

8.5%

12.7%

8.0%

3.4%

9.9%

7.3%

3.4%4.8%

6.6%

12.6%

-8.5%

8.5%

22.3%

12.6%

0.7%

11.1%

3.6%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

Employment Growth Since Bottom of Last RecessionAll Industries, and Manufacturing

All IndustriesManufacturing

Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages, compiled from county details. Growth is from July 2009 to December 2013.

17.3%

-9.7%

8.5%

17.0%18.8%

20.2% 20.1%

23.6%

5.8%

16.8%

25.0%

14.8%

2.3%

28.3%

33.7%

17.7%

30.0%

33.6%

39.8%

9.7%

27.1%

23.7%

-20%

-10%

0%

10%

20%

30%

40%

50%

Wage and Salary Growth Since Bottom of Last RecessionAll Industries, and Manufacturing

All IndustriesManufacturing

Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages, compiled from countydetails. Growth is from 2009 II to 2013 IV.

Which region has had the highest ratio of employed persons to population?

Lexington

Bowling Green - Hopkinsville

Northern Kentucky

Louisville

58.7%

54.7%

38.6%

44.1%

44.8%

52.3%

53.1%

54.8%

57.8%

58.6%

62.4%

0% 10% 20% 30% 40% 50% 60% 70%

United States

Kentucky

Mountains

Cumberland

Ashland

Paducah - Purchase

Owensboro-Henderson

Bowling Green -Hopkinsville

Lexington

Louisville

Northern Kentucky

Employment Rate, by Region

Source: US Census Bureau, American Community Survey, 2008-12; Employed Civilians plus Armed Forces, divided by Population aged 16+.

urban, dense

rural, sparse

26.9%

28.2%

29.9%

31.6%

31.8%

32.7%

33.4%

34.5%

36.2%

36.4%

61.1%

61.4%

62.7%

62.7%

62.8%

62.8%

63.4%

64.0%

64.3%

67.0%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Martin

Clay

Owsley

Wolfe

Elliott

McCreary

Magoffin

Leslie

Harlan

Lee

Bullitt

Jessamine

Campbell

Woodford

Kenton

Anderson

Scott

Fayette

Spencer

Boone

Employment Rate by County: Top 10, Bottom 10

Source: US Census Bureau, American Community Survey, 2008-12; Employed Civilians plus Armed Forces, divided by Population aged 16+.

Less than one-third employed

Which region accounts for the largest share of private industry payrolls in Kentucky?

Louisville

Bowling Green - Hopkinsville

Lexington

Northern Kentucky

2.7%4.3%

4.9%

5.0%

6.1%

7.6%

11.4%

20.1%

38.0%

Share of Private Industry Earnings in Kentucky, 2012

Louisville

Ashland

Mountain

Owensboro-Henderson

Bowling Green-Hopkinsville

Northern KY

Lexington

Cumberland

Paducah-Purchase

70% of private payrolls in Kentucky from three of the nine regions: your tax base.

$36,223

$27,453

$17,417

$17,615

$21,201

$24,011

$25,533

$25,998

$27,930

$32,490

$32,710

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000

United States

Kentucky

Cumberland

Mountain

Ashland

Bowling Green-Hopkinsville

Owensboro-Henderson

Paducah-Purchase

Lexington

Northern Kentucky

Louisville

Earned Income per Capita, 2012, by Region

Source: US Bureau of Economic Analysis; includes wages, salaries, proprietors' income, property income.

urban, dense

rural, sparse

Private EarningsShare of

State

Share of All

Earnings in

County

Jefferson $26,501,818,000 30.8% 88.4%

Fayette $8,771,357,000 10.2% 75.6%

Boone $4,197,889,000 4.9% 91.0%

Kenton $3,567,815,000 4.2% 82.8%

Warren $2,518,242,000 2.9% 81.8%

McCracken $1,920,737,000 2.2% 87.2%

Daviess $1,808,665,000 2.1% 76.1%

Hardin $1,674,054,000 1.9% 46.9%

Boyd $1,481,972,000 1.7% 88.2%

Scott $1,387,776,000 1.6% 91.6%

rest of state $32,076,812,000 37.3% 71.4%

Kentucky, total $85,907,137,000 100.0% 78.2%Source: US Bureau of Economic Analysis

Top Ten Counties in Terms of Private Industry Labor and Proprietors' Earnings, 2012

Four counties account for one-half of Kentucky total private sector income

Note: all top counties are urban, except Scott (Toyota)

Louisville

Lexington

Florence

Covington

Bowling Green

Paducah

Owensboro

Elizabethtown

Ashland

Georgetown

Which of the nine regions has the highest government payroll per capita?

Lexington

Bowling Green - Hopkinsville

Louisville

Mountain

$11,291

$5,999

$5,004

$4,106 $4,000 $3,890$3,267 $3,096 $2,880

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

Government Payrolls per Capita, 2012, by Economic Region

Source: US Bureau of Economic Analysis.

Fort Campbell

FrankfortFort Knox

Earnings from Government

Share of All

Earnings in County

Share of Kentucky

Total Government

EarningsChristian $3,489,293,000 73.8% 15.3%

Elliott $25,756,000 68.2% 0.1%McCreary $82,947,000 57.4% 0.4%

Franklin $936,163,000 52.8% 4.1%Hardin $1,884,742,000 52.8% 8.2%

Menifee $20,209,000 48.9% 0.1%Robertson $6,477,000 48.4% 0.0%

Owsley $13,595,000 48.3% 0.1%Edmonson $38,435,000 48.1% 0.2%

Lyon $48,048,000 46.1% 0.2%Clay $93,492,000 44.6% 0.4%

Wolfe $20,245,000 40.4% 0.1%Spencer $31,593,000 37.1% 0.1%

Martin $66,100,000 36.8% 0.3%Breathitt $56,219,000 36.2% 0.2%

Green $37,718,000 35.9% 0.2%Rowan $163,922,000 35.9% 0.7%

Jackson $34,485,000 34.2% 0.2%Calloway $264,448,000 33.7% 1.2%

Bath $26,833,000 33.5% 0.1%

rest of state $15,538,042,000 15.9% 67.9%

Kentucky $22,878,762,000 20.8% 100.0%Source: US Bureau of Economic Analysis

Top Twenty Counties in Terms of Government's Share of Total Labor and Proprietors' Earnings, 2012

In twelve counties, over 40% of earnings from government employment.

Two counties – Christian and Hardin – dominated by military.

Franklin is home state government.

Lyon County: KY State Penitentiary at Eddyville.

Other eight are all in eastern Kentucky.

Which region has the highest transfer payments per capita?

Lexington

Paducah - Purchase

Ashland

Mountain

$7,512

$8,190

$6,580

$7,417

$7,578

$7,737

$8,610

$8,963

$10,002

$10,476

$11,653

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000

United States

Kentucky

Northern Kentucky

Lexington

Louisville

Bowling Green-Hopkinsville

Owensboro-Henderson

Paducah-Purchase

Ashland

Cumberland

Mountain

Transfer Payments per Capita, 2012, by Region

Source: US Bureau of Economic Analysis

Mountain: $3.9 billion total, or 40% of personal income

Cumberland: $3.2 billion total, or 38% of personal income

NKY: $3.1 billion total, or 17% of personal income

0.8

0.9

1.0

1.1

1.2

1.3

1.4

1.5

1.6

0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6

Tran

sfer

Pay

men

ts p

er C

apita

, 201

2

Transfer Payments per Capita, 1969

43 Years of Transfer Payments by Regionrelative to national average

National average: $310 in 1969; $7,733 in 2012

Source of county data: US Bureau of Economic Analysis

Lexington

Mountains

Cumberland

Bowling Green -Hopkinsville

Paducah - Purchase

Owensboro-Henderson

Louisville

Northern Kentucky

Ashland

0.8

0.9

1.0

1.1

1.2

1.3

1.4

1.5

1.6

0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6

Tran

sfer

Pay

men

ts p

er C

apita

, 201

2

Transfer Payments per Capita, 1969

43 Years of Transfer Payments by Regionrelative to national average

National average: $310 in 1969; $7,733 in 2012

$387 in 1969; $11,653 in 2012

Source of county data: US Bureau of Economic Analysis

Mountain and Cumberland regions

much more dependent in 2012 than in 1969.

0%

10%

20%

30%

40%

50%

60%

Ow

sley

Mag

offin

Men

ifee

Bell

Lesl

ie

Lew

is

Way

ne

Knott

Letc

her

John

son

Perr

y

Case

y

Fulto

n

Russ

ell

Butle

r

Trim

ble

Pike

Muh

lenb

erg

Row

an

Cald

wel

l

Boyd

Was

hing

ton

Loga

n

Todd

Gre

enup

Mar

shal

l

Hic

kman

Hen

ders

on

Mer

cer

Web

ster

Bour

bon

Mad

ison

Fran

klin

Trig

g

War

ren

Chris

tian

Jeff

erso

n

Spen

cer

Faye

tte

Woo

dfor

d

Transfer Payments as Share of Total Personal IncomeKentucky Counties, 2011

Source: US Bureau of Economic Analysis3 counties above 50%

28 counties 40% or higher

National average is 18%

10.0%

15.5%

6.9%

11.8%

13.3%

13.9%

14.3%

15.6%

19.8%

20.3%

28.6%

0% 5% 10% 15% 20% 25% 30% 35%

United States

Kentucky

Owensboro-Henderson

Northern Kentucky

Louisville

Lexington

Paducah-Purchase

Bowling Green-Hopkinsville

Ashland

Cumberland

Mountain

Percent of Adult Population Reporting a Disability, by Region

Source: US Census Bureau, American Community Survey, 2008-12, Table C1820, universe includes population aged 18 to 64.

0% 5% 10% 15% 20% 25% 30% 35%

OldhamFayetteShelby

ScottKenton

JeffersonChristianSimpson

RowanHardinGrant

BallardAnderson

ClarkOhio

FranklinMasonOwen

HancockCarrollHenry

BarrenFleming

AllenBoyd

CaseyMontgomery

PulaskiLivingston

KnoxMorgan

BathPerry

BellEstill

MenifeeMagoffin

JacksonMcCrearyBreathitt

Percent of Population Aged 18 to 64, Reporting a Disability, Kentucky Counties

Source: US Census Bureau, American Community Survey, 2008-12, Table C18120.

Martin 33.4%Harlan 32.5%Breathitt 30.6%Leslie 30.3%Pike 30.2%

National average 10.0%

Top 18 counties are in eastern Kentucky

Which region has the highest rate of high school graduates?

Lexington

Owensboro - Henderson

Northern Kentucky

Bowling Green - Hopkinsville

87.4%86.4%

84.1% 83.7% 83.2%

80.5%79.2%

72.2%

69.2%

82.4%

85.7%

60%

65%

70%

75%

80%

85%

90%

Percent of Adults with a High School Diploma or HigherSource: US Census Bureau, American Community Survey, 2008-2012.

Which region has the highest rate of college graduates?

Lexington

Louisville

Northern Kentucky

Bowling Green - Hopkinsville

26.6%25.2% 24.8%

18.4%

16.5%14.7%

13.1%11.5% 11.2%

21.0%

28.5%

0%

5%

10%

15%

20%

25%

30%

Percent of Adults with a Bachelor Degree or Higher

Nostalgia EconomicsAgriculture and Mining’s Share of Labor Income4.6%

4.0%

3.6%

3.3% 3.3%

3.0%

2.7%2.6%

2.5%

2.3%

2.1%2.3% 2.2% 2.2% 2.2% 2.2%

2.5%2.3%

2.6% 2.7% 2.6% 2.7%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Agriculture, Forestry, Mining Share of Total Employee Compensation, All Industries, Kentucky

Source: US Bureau of Economic Analysis

Includes tobacco, corn, soybeans, equine, cattle, pork, chickens, logging, coal mining, oil and gas production……

1780 - 1912“The original motivation for having so many counties was to ensure that residents in the days of poor roads and horseback travel could make a round trip from their home to the county seat and back in a single day, as well as being able to travel from one county seat to the next in the same fashion”

– Counties, The Kentucky Encyclopedia, John E. Kleber, editor, The University Press of Kentucky, 1992.

Kentucky’s 120 counties, the most per square mile of any state

Pike is largest, 788 sq. mi.

Average county size is 330 square miles, so if county

seat is central, a horse could make the round trip from

border in 5-6 hours.

Horse, at 4 MPH, would take 16+ hours to get from Majestic

to Pikeville and back

Constitution requires each county to have County judge, county court clerk, county attorney, county treasurer, county sheriff, jailer, coroner, surveyor, three to eight justices of the peace, and three to eight constables. In counties; where the fiscal court is composed of commissioners, three commissioners must also be elected The state also pays for a county attorney, PVA, jails, DMV, in every county.

How far could a Kentucky resident travel today, round trip, in 6 hours?

Well, three hours each way, averaging 45 MPH, would be 135 miles. For a round region, that would imply a government center serving 57,000 square miles, larger than Kentucky’s total of 40,000 square miles.

The largest economic region is Lexington, with 6,800 square miles and 26 counties. The longest travel time round trip, using a car at 45 MPH, would be 4 hours. So, transportation improvements have allowed access to a ‘local’ government center to be the same now for a region containing 26 counties as it was 200 years ago for one county.

Thank you!

Go to http://kentuckyeconomicassociation.org/ to download a copy of this presentation.