Can a 9.5% jobless rate be called "steady"?

Today, the Commonwealth of Kentucky issued a press release announcing last month's unemployment numbers with this headline:

"Kentucky's jobless rate steady at 9.5 percent in August 2011"

It's interesting that the Education and Workforce Cabinet chose to label the jobless rate "steady." To me, the word "steady" implies the sense that affairs are on solid footing and that the outlook is certain. While it is true that the jobless rate didn't move from July to August, a label of "steady" is a very misleading representation of the current situation.

Our jobless rate continues to remain above the national average (9.1 percent), and there is no euphemism that can paint the current economic outlook in a brighter light than reality: over 9 percent of Kentucky's workforce is out of work. I'd hardly call that steady.

Loan paid by borrowing?

Late last night, Gov. Steve Beshear announced that the state has paid the $28 million interest payment that was due to the federal government by September 30, 2011. The state's loan has been used to pay for unemployment insurance benefits.

On one hand, Kentucky businesses dodged a big bullet. Without the commonwealth paying the interest, Kentucky businesses would have footed the penalty bill. They would have to pay roughly $400/worker, a cost totaling over $600 million.

The problem? How the money was paid. The commonwealth has again borrowed money from itself to pay the federal government. The governor took an "internal loan" to make up the difference needed for the interest pyament. While the governor has claimed budget surplus, how is it that the commonwealth continues to borrow funds from itself?

Sen. David Givens, R-Greensburg, questioned the governor's move: "I'm disappointed because basically what we've done in Kentucky is written a check for an account that doesn't have sufficient funds in it."

While in the short term, the problem has been addressed, how will Kentucky fare in the long run? Continuing to borrow more money we don't have doesn't seem promising to me.

Tax "incentive" questions, transparency

Governor Steve Beshear's office posted a press release today outlining some tax break incentives granted to a rail company for expanding their operations in Kentucky. The press release states that the expansion will create 75 new jobs.

New jobs are great, especially given Kentucky's unemployment rate.

This does bring up a couple of questions though:

1. What businesses in Kentucky are not receiving these tax incentives for expansion?
2. In an effort to make the Commonwealth as business friendly as possible, why don't we just extend these "tax incentives" to every business operating in the the state?

This is a great example of how transparency can be improved in the state. Citizens deserve to know why some businesses receive tax incentives while others do not.

Kentucky leaders, where are our right-to-work laws?

Senator Jim DeMint's office released a report that shows states with right-to-work laws are more successful.  The study found that these 22 states that don't force unionization as a condition of employment have more new residents, new businesses, new jobs, and faster income growth.

With Kentucky's unemployment rate at 10.2%, I think the state could use all those benefits.

So, Kentucky leaders, the question is: why is Kentucky behind on this? Where are right-to-work laws in Kentucky?