Nine Economic Regions of Kentucky provocative facts, policy challenges for future Kentucky Economics Association October 2014 Paul Coomes, Ph.D. Emeritus Professor of Economics University of Louisville What was Kentucky’s 1958 rank among states in terms of earned per capita income? 32nd 38th 46th 50th Kentucky’s rank among 50 states Personal income minus transfer payments, per capita 1958: th 46 2013: th 46 Thank goodness for West Virginia, Mississippi, South Carolina, and Arkansas. Relative Prosperity Earned Income per Capita, Kentucky vs. US 0.84 43rd rank 0.82 0.80 0.78 0.76 0.74 46th rank among 50 states 46th rank 47th rank 0.72 0.70 0.68 0.66 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. 0.64 0.62 1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008 2013 Regional Economic Development in Kentucky Where 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 KY is somewhere in here. TV stations don’t care. 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 10 Television Market Boundaries around Kentucky all except Lexington and Bowling Green stations are multi-state Bowling Green: CBS broadcast is from WTVF in Nashville TN http://dishuser.org/TVMarkets/Maps/kentucky.gif 9 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 A Google Map View Stylized economic regions based on major cities, TV markets, and terrain. LouisvilleElizabethtownSouthern Indiana CincinnatiNorthern Kentucky Lexington AshlandHuntingtonCharleston EvansvilleOwensboroHenderson Mountain PaducahPurchase Bowling GreenHopkinsvilleNashville SomersetCumberlandKnoxville Developing Useful Economic Development Geographies Detailed 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) = 1,428 Fayette (811 + 429) = 1,240 Jessamine (368 + 457) = 825 Pulaski ( 54 + 517) = 571 Garrard (257 + 250) = 507 Franklin (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. Cincinnati Louisville New York Destin Naples Which of the nine regions is the most densely populated? Louisville Northern Kentucky Mountain Lexington Density: Population per Square Mile, 2012 250 232.7 218.5 200 150 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). 134.3 110.3 100 80.4 50 0 73.3 69.2 68.4 68.3 58.3 Top three counties over 30 times more dense than sparsest counties. Population Density by County, Top 20 and Bottom 20 Jefferson Fayette Kenton Campbell Boone Oldham Boyd Jessamine McCracken Bullitt Franklin Warren Daviess Madison Scott Hardin Boyle Clark Montgomery Laurel 1,966.1 1,083.9 1,003.7 599.6 505.2 329.6 305.1 290.1 260.5 256.8 235.9 217.1 212.3 194.3 175.1 172.2 159.9 140.0 137.3 136.8 Todd Elliott Wolfe Monroe Trigg Menifee Fulton Owen Butler Livingston Lewis Breathitt Leslie Carlisle Crittenden Owsley Robertson Cumberland Hickman 33.2 32.6 32.5 32.3 32.2 30.8 30.6 30.3 29.9 29.6 28.5 27.3 27.3 26.0 25.6 23.5 22.4 22.2 19.4 0 500 1,000 1,500 2,000 2,500 Which of the nine regions has the least population growth this decade? Mountain Cumberland Paducah - Purchase Louisville This decade so far Total Population Change, 2010 to 2013 Source: US Census Bureau Louisville 28,120 Lexington 21,030 Northern Kentucky 9,246 Bowling Green-Hopkinsville 6,337 Owensboro-Henderson 1,136 Cumberland 843 declining population at tails of state Paducah-Purchase -15,000 -10,000 -428 Ashland -1,846 Mountain -8,500 -5,000 0 Kentucky as a whole gained 56,000 persons 5,000 10,000 15,000 20,000 25,000 30,000 This decade so far Percent Population Change, 2010 to 2013 Source: US Census Bureau Lexington 2.3% Louisville 2.2% Northern Kentucky 2.0% Bowling Green-Hopkinsville 1.6% Owensboro-Henderson 0.4% Cumberland 0.3% Kentucky State Total: 1.3% Paducah-Purchase -0.2% -1.2% Ashland -2.5% -3.0% -2.0% -1.0% Mountain 0.0% 1.0% 2.0% 3.0% This decade so far Natural Population Increase, 2010 to 2013, Births minus Deaths Source: US Census Bureau Louisville 16,415 Lexington 10,887 Northern Kentucky 8,384 Bowling Green-Hopkinsville 5,626 Cumberland 1,321 Owensboro-Henderson 1,285 Ashland -73 Paducah-Purchase -754 Mountain -808 -2,000 Kentucky State Totals: 179,000 births 137,000 deaths net gain of 42,000 persons more deaths than births 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Population of Regions, 1969 and 2013 1,400,000 Growth 1969 to 2013 1,200,000 311,575 1969 Source: US Census Bureau 1,000,000 800,000 379,293 600,000 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 991,333 400,000 158,097 131,213 7,267 539,488 200,000 0 49,130 109,633 35,438 324,982 308,477 273,042 243,900 15,649 194,843 187,678 134,257 Population of Regions East of I-75, Four Decades 450,000 Peak: 408,000 in 1983 400,000 Net loss of 76,000 since 1983 350,000 Mountain 300,000 250,000 200,000 150,000 100,000 50,000 0 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 Source: US Census Bureau Population of Regions East of I-75, Four Decades 450,000 400,000 Net loss of 76,000 since 1983 350,000 Mountain 300,000 Cumberland Net gain of 49,000 since 1983 250,000 200,000 150,000 Ashland 100,000 50,000 0 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 Source: US Census Bureau Which region has the highest income from farming? Owensboro-Henderson Bowling Green - Hopkinsville Cumberland Lexington Average Annual Farm Income, 2003-2012, by Economic Region $300,000,000 Equine… Grain, poultry, livestock $255,523,100 $242,299,000$239,723,000 $250,000,000 Source: US Bureau of Economic Analysis; includes wages, salaries and farm proprietors' income. $200,756,100 $200,000,000 $150,000,000 $100,000,000 $80,180,100 $50,000,000 $22,089,700 $5,642,600 $0 -$3,718,200 -$50,000,000 -$9,913,400 Which region has the highest income from mining? Owensboro-Henderson Paducah - Purchase Mountain Lexington Earnings from Mining Industries, 2012, by Economic Region $1,400,000,000 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. $1,253,119,000 Mountain and Owensboro-Henderson regions ($1.7 billion) account for 75% of Kentucky total $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $398,868,000 $201,759,000 $200,000,000 $68,542,000 $58,235,000 $39,632,000 $33,143,000 $29,334,000 $0 $3,858,000 Which region has the highest income from manufacturing? Louisville Ashland Lexington Northern Kentucky Earnings from Manufacturing Industries, 2012, by Economic Region $6,000,000,000 Louisville and Lexington regions ($9 billion) account for 58% of Kentucky total $5,421,629,000 $5,000,000,000 $4,000,000,000 Source: US Bureau of Economic Analysis; includes wages, salaries and proprietors' income. $3,622,803,000 $3,000,000,000 $2,000,000,000 $1,683,255,000$1,629,833,000 $1,275,473,000 $1,000,000,000 $817,746,000 $669,310,000 $378,213,000 $125,637,000 $0 Earnings from Distribution Industries, 2012, by Economic Region $3,000,000,000 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. $2,547,205,000 $2,500,000,000 Louisville accounts for 44% of state total. Louisville, NKy, Lexington regions combined account for 66% of Kentucky total $2,000,000,000 $1,500,000,000 $1,000,000,000 $731,517,000 $582,648,000 $500,000,000 $367,043,000 $222,557,000 $203,341,000 $184,580,000 $174,393,000 $150,239,000 $0 Earnings from Office Industries, 2012, by Economic Region $3,000,000,000 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. $2,643,889,000 $2,500,000,000 Louisville region accounts for 46% of state total. $2,000,000,000 $1,500,000,000 $1,358,505,000 Louisville, Lexington, Nky regions combined account for 79% of Kentucky total $1,000,000,000 $559,664,000 $500,000,000 $283,357,000 $162,867,000 $161,675,000 $124,528,000 $122,822,000 $105,255,000 $0 Which region has had the strongest job growth since the bottom of the 2008-09 recession? Lexington Bowling Green - Hopkinsville Paducah - Purchase Ashland Employment Growth Since Bottom of Last Recession All Industries, and Manufacturing 25% Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages, compiled from county details. Growth is from July 2009 to December 2013. All Industries Manufacturing 22.3% 20% 15% 13.1% 12.7% 12.6% 11.3% 11.1% 9.9% 10% 8.5% 8.5% 6.6% 6.4% 5% 12.6% 8.0% 7.3% 6.7% 4.8% 3.4% 3.4% 0.7% 0% -5% -5.3% -10% -15% -8.5% 3.6% Wage and Salary Growth Since Bottom of Last Recession All Industries, and Manufacturing 50% All Industries Manufacturing Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages, compiled from county details. Growth is from 2009 II to 2013 IV. 39.8% 40% 33.7% 33.6% 30.0% 28.3% 30% 27.1% 25.0% 23.7% 23.6% 20% 17.3% 17.0% 18.8% 17.7% 20.2% 20.1% 16.8% 14.8% 8.5% 10% 9.7% 5.8% 0% 2.3% -10% -20% -9.7% Which region has had the highest ratio of employed persons to population? Lexington Bowling Green - Hopkinsville Northern Kentucky Louisville Employment Rate, by Region Northern Kentucky 62.4% Louisville 58.6% Lexington urban, dense 57.8% Bowling Green Hopkinsville 54.8% Owensboro-Henderson 53.1% Paducah - Purchase 52.3% Ashland 44.8% Cumberland 44.1% Mountains 38.6% rural, sparse Source: US Census Bureau, American Community Survey, 2008-12; Employed Civilians plus Armed Forces, divided by Population aged 16+. Kentucky 54.7% United States 58.7% 0% 10% 20% 30% 40% 50% 60% 70% Employment Rate by County: Top 10, Bottom 10 Boone 67.0% Spencer 64.3% Fayette 64.0% Scott 63.4% Anderson 62.8% Kenton 62.8% Woodford 62.7% Campbell 62.7% Jessamine 61.4% Bullitt 61.1% Lee 36.4% Harlan 36.2% Leslie 34.5% Magoffin 33.4% McCreary 32.7% Elliott 31.8% Wolfe 31.6% Owsley 29.9% Clay 28.2% Martin Less than one-third employed Source: US Census Bureau, American Community Survey, 2008-12; Employed Civilians plus Armed Forces, divided by Population aged 16+. 26.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% Which region accounts for the largest share of private industry payrolls in Kentucky? Louisville Bowling Green - Hopkinsville Lexington Northern Kentucky Share of Private Industry Earnings in Kentucky, 2012 2.7% 4.3% Cumberland 4.9% Ashland Paducah-Purchase 5.0% Mountain 38.0% 6.1% Owensboro-Henderson Louisville Bowling Green-Hopkinsville 7.6% 70% of private payrolls in Kentucky from three of the nine regions: your tax base. Northern KY Lexington 11.4% 20.1% Earned Income per Capita, 2012, by Region Louisville $32,710 Northern Kentucky $32,490 Lexington urban, dense $27,930 Paducah-Purchase $25,998 Owensboro-Henderson $25,533 Bowling Green-Hopkinsville $24,011 Ashland $21,201 Mountain $17,615 Cumberland $17,417 rural, sparse Source: US Bureau of Economic Analysis; includes wages, salaries, proprietors' income, property income. Kentucky $27,453 United States $36,223 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Top Ten Counties in Terms of Private Industry Labor and Proprietors' Earnings, 2012 Share of All Earnings Share of in Private Earnings State County Louisville Jefferson $26,501,818,000 30.8% 88.4% Lexington Fayette $8,771,357,000 10.2% 75.6% Florence Boone $4,197,889,000 4.9% 91.0% Covington Kenton $3,567,815,000 4.2% 82.8% Bowling Green Warren $2,518,242,000 2.9% 81.8% Paducah McCracken $1,920,737,000 2.2% 87.2% Owensboro Daviess $1,808,665,000 2.1% 76.1% Elizabethtown Hardin $1,674,054,000 1.9% 46.9% Ashland Boyd $1,481,972,000 1.7% 88.2% Georgetown 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 Four counties account for one-half of Kentucky total private sector income Note: all top counties are urban, except Scott (Toyota) Which of the nine regions has the highest government payroll per capita? Lexington Bowling Green - Hopkinsville Louisville Mountain Government Payrolls per Capita, 2012, by Economic Region $12,000 $10,000 $8,000 $6,000 $11,291 Source: US Bureau of Economic Analysis. Fort Campbell Frankfort $5,999 Fort Knox $5,004 $4,106 $4,000 $2,000 $0 $4,000 $3,890 $3,267 $3,096 $2,880 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. Christian Elliott McCreary Franklin Hardin Menifee Robertson Owsley Edmonson Lyon Clay Wolfe Spencer Martin Breathitt Green Rowan Jackson Calloway Bath Earnings from Government $3,489,293,000 $25,756,000 $82,947,000 $936,163,000 $1,884,742,000 $20,209,000 $6,477,000 $13,595,000 $38,435,000 $48,048,000 $93,492,000 $20,245,000 $31,593,000 $66,100,000 $56,219,000 $37,718,000 $163,922,000 $34,485,000 $264,448,000 $26,833,000 Share of All Earnings in County 73.8% 68.2% 57.4% 52.8% 52.8% 48.9% 48.4% 48.3% 48.1% 46.1% 44.6% 40.4% 37.1% 36.8% 36.2% 35.9% 35.9% 34.2% 33.7% 33.5% Share of Kentucky Total Government Earnings 15.3% 0.1% 0.4% 4.1% 8.2% 0.1% 0.0% 0.1% 0.2% 0.2% 0.4% 0.1% 0.1% 0.3% 0.2% 0.2% 0.7% 0.2% 1.2% 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 Which region has the highest transfer payments per capita? Lexington Paducah - Purchase Ashland Mountain Transfer Payments per Capita, 2012, by Region Mountain: Mountain$3.9 billion total, or 40% of personal income $11,653 Cumberland: Cumberland $3.2 billion total, or 38% of personal income $10,476 Ashland $10,002 Paducah-Purchase $8,963 Owensboro-Henderson $8,610 Bowling Green-Hopkinsville $7,737 Louisville $7,578 Lexington $7,417 NKY: $3.1 billion total, or 17% of personal income Northern Kentucky Kentucky $6,580 $8,190 United States $7,512 $0 $2,000 $4,000 $6,000 $8,000 Source: US Bureau of Economic Analysis $10,000 $12,000 $14,000 43 Years of Transfer Payments by Region relative to national average 1.6 1.5 Transfer Payments per Capita, 2012 1.4 1.3 1.2 1.1 1.0 National average: $310 in 1969; $7,733 in 2012 0.9 Source of county data: US Bureau of Economic Analysis 0.8 0.8 0.9 1.0 1.1 1.2 1.3 Transfer Payments per Capita, 1969 1.4 1.5 1.6 43 Years of Transfer Payments by Region relative to national average 1.6 Mountains $387 in 1969; $11,653 in 2012 1.5 Transfer Payments per Capita, 2012 1.4 Cumberland Ashland 1.3 1.2 Mountain and Cumberland regions much more dependent in 2012 than in 1969. Paducah - Purchase Owensboro-Henderson 1.1 Bowling Green Hopkinsville 1.0 Louisville Lexington National average: $310 in 1969; $7,733 in 2012 0.9 Northern Kentucky Source of county data: US Bureau of Economic Analysis 0.8 0.8 0.9 1.0 1.1 1.2 1.3 Transfer Payments per Capita, 1969 1.4 1.5 1.6 0% Woodford Fayette Spencer Jefferson Christian Warren Trigg Franklin Madison Bourbon Webster Mercer Henderson Hickman Marshall Greenup Todd Logan Washington Boyd Caldwell Rowan Muhlenberg Pike Trimble Butler Russell Fulton Casey Perry Johnson Letcher Knott Wayne Lewis Leslie Bell Menifee Magoffin Owsley 60% Transfer Payments as Share of Total Personal Income Kentucky Counties, 2011 3 counties above 50% Source: US Bureau of Economic Analysis 50% 28 counties 40% or higher 40% 30% 20% National average is 18% 10% Percent of Adult Population Reporting a Disability, by Region Mountain 28.6% Cumberland 20.3% Ashland 19.8% Bowling GreenHopkinsville 15.6% Paducah-Purchase 14.3% Lexington 13.9% Louisville 13.3% Northern Kentucky 11.8% Owensboro-Henderson 6.9% Kentucky Source: US Census Bureau, American Community Survey, 2008-12, Table C1820, universe includes population aged 18 to 64. 15.5% United States 10.0% 0% 5% 10% 15% 20% 25% 30% 35% Percent of Population Aged 18 to 64, Reporting a Disability, Kentucky Counties Top 18 counties are in eastern Kentucky Breathitt McCreary Jackson Magoffin Menifee Estill Bell Perry Bath Morgan Knox Livingston Pulaski Montgomery Casey Boyd Allen Fleming Barren Henry Carroll Hancock Owen Mason Franklin Ohio Clark Anderson Ballard Grant Hardin Rowan Simpson Christian Jefferson Kenton Scott Shelby Fayette Oldham Martin 33.4% Harlan 32.5% Breathitt 30.6% Leslie 30.3% Pike 30.2% National average 10.0% Source: US Census Bureau, American Community Survey, 2008-12, Table C18120. 0% 5% 10% 15% 20% 25% 30% 35% Which region has the highest rate of high school graduates? Lexington Owensboro - Henderson Northern Kentucky Bowling Green - Hopkinsville Percent of Adults with a High School Diploma or Higher Source: US Census Bureau, American Community Survey, 2008-2012. 90% 87.4% 85% 86.4% 85.7% 84.1% 83.7% 83.2% 82.4% 80.5% 80% 79.2% 75% 72.2% 70% 65% 60% 69.2% Which region has the highest rate of college graduates? Lexington Louisville Northern Kentucky Bowling Green - Hopkinsville Percent of Adults with a Bachelor Degree or Higher 30% 28.5% 26.6% 25.2% 25% 24.8% 21.0% 20% 18.4% 16.5% 15% 14.7% 13.1% 11.5% 10% 5% 0% 11.2% Agriculture, Forestry, Mining Share of Total Employee Compensation, All Industries, Kentucky Nostalgia Economics 5.0% Source: US Bureau of Economic Analysis Agriculture and Mining’s Share of Labor Income 4.6% 4.5% 4.0% 4.0% 3.6% 3.5% 3.0% 3.3% Includes tobacco, corn, soybeans, equine, cattle, pork, chickens, logging, coal mining, oil and gas production…… 3.3% 3.0% 2.7% 2.5% 2.6% 2.6% 2.5% 2.7% 2.6% 2.7% 2.5% 2.3% 2.3% 2.2% 2.2% 2.2% 2.2% 2.1% 2.3% 2.0% 1.5% 1.0% 0.5% 0.0% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 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 Horse, at 4 MPH, would take 16+ hours to get from Majestic to Pikeville and back 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. Pike is largest, 788 sq. mi. 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. 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. Thank you! Go to http://kentuckyeconomicassociation.org/ to download a copy of this presentation.