You heard it here, "Central Kentucky has a mega site ready for you. So they're open for business."
This is Real State, a podcast from CSG South.
Join us as we talk with policymakers and public leaders shaping state-level decisions across the
South and explore how ideas move from policy to real impact.
Hello and welcome to Real State. I'm your host, Lindsey Gray. Across the South,
economic development remains one of the top priorities for state leaders. States are competing
for investment, jobs, talent, and innovation while also working to strengthen infrastructure,
grow their workforce, and ensure communities of all sizes can participate in that growth.
In Kentucky, those conversations have included major manufacturing investments,
infrastructure improvements, workforce development, housing availability, broadband expansion,
and efforts to position the commonwealth for long-term economic competitive deaths.
Our guest today is Speaker, ProTem, David Mead of Kentucky. Speaker ProTem Mead has served in
the Kentucky House of Representatives since 2013 and currently serves as the second highest-ranking
member of the House leadership team. He also currently serves as chair of the Council of State
Government Southern Office and the Southern Legislative Conference, bringing both a state and
regional perspective to today's conversation. Speaker ProTem Mead, thank you for joining us today.
Thanks for having me, Vince. You've had a front-row seat to Kentucky's economic evolution
over the past decade. Looking back to when you first entered the legislature in 2013,
how would you describe the biggest challenges you've seen in Kentucky's economic development landscape?
Well, I think when I first came in, it was a totally different scenario for me. I was in
serving the minority at the time, served there for four years before our already became the majority.
And at that time, we had a lot of ideas that were kind of, there was some thin-knit frustration,
I guess you would say, and we passed a lot of that economic policy the first couple of years to
get us on the pathway. A lot of reducing regulation on restrictions on some of these larger
companies to try to bring them to the state. And so we really focused on that, but also on our small
businesses and being able to give them some relief to be able to expand and hire for a visit with.
As you look at Kentucky today, what do you see as the state's biggest economic opportunity
over the next decade? Well, I think the aviation industry is growing with leaks and bounds.
The automotive industry is well right now. We're doing a lot of things for both of those industries
to try to grow that and stay to the techie. One thing that we have continued to do is make sure that
we have sites ready for companies when they come and be prepared for that. A lot of times you don't
know who's going to be coming to your state or who's from the arresting mistake that you want to
be ready when they do, and that's what we've tried to do. You should prepare for that.
Well, economic development looks very different today than it did even 10 years ago. So,
Kentucky's experienced significant investment and job creation in recent years, but states are
increasingly recognizing that economic growth depends on more than simply recruiting companies.
So, when you think about economic development today, has the definition of success changed
from when you first into the legislature and if so, how? I think it is. I think we have realized
that what we have to do is prepare with our infrastructure, first and foremost, they need that
infrastructure. When they're coming to do business in your state, you also have to prepare your
workforce, get them educated in rating video. So, I think that those are probably the primary two
things that we have been working on in getting everything ready. You also have to have a good
tax structure for businesses to make sure that they're in a tax environment that they can actually
make profits and want to come to the business in real estate. What do you think Kentucky's getting
right right now when it comes to creating an environment where businesses want to invest and grow?
Well, one thing I believe that we did very well was then the COVID time period when a lot of federal
money was coming into the states. A lot of states would end up spending a lot of that money once
it first came in on recurring costs. We did not do that. What we did was make sure that the money that
we received for one time funding, the spend on one time things, they're not recurring costs. And so,
what we did was we prepared for infrastructure. We started updating that, our roads, our bridges,
our water lines, our gas lines, those type of things to make sure that we had everything in order
when companies were coming or expanding in our state. And I think that we have created now an
environment that we're going to have everything is necessary for them to come as well as as I've
mentioned before, we're starting to educate our workforce better, making sure that we are partnering
with those companies and they come to make sure that the folks are prepared for jobs that they
want you to need them. And that actually goes kind of into the next side of this conversation. So,
increasingly states are recognizing that economic development and quality of life investments are
deeply connected. So, this session, Kentucky Lawmakers, advanced significant investment in infrastructure
and economic development projects across the Commonwealth. Additionally, housing has emerged as a
growing policy discussion as states examine workforce availability and affordability challenges.
How has Kentucky's approach to economic development evolved from simply attracting employers to also
addressing infrastructure, housing and community readiness? Well, a lot of times what you see is these
especially larger coffers are needing more land they spend on. Most of that land is going to be in
a rural community. So, we have to prepare those communities for that. And what we've done is when
you're a employer and you're looking for a place to put your business, you want to make sure that
your employees are going to have a good quality of life. And there's going to be playing their housing
available and it's going to be thanks for them to do in their all-time. There needs to be parts that
needs to be things to spend time outside of that with your family. So, what we're trying to do is
make sure that once we get past the infrastructure part and we've paired several of our sites. We have
some megacytes in our state that are ready to go. So, when those companies come, once we move past that
now we are working on that housing issue. It's become a crisis in many states. The affordability is a
huge thing. We've seen the increased cost of real estate over the past few years and that's
heard families especially when it comes to starter homes. So, we're trying to, we've been working
on a housing bill. We didn't get a past this year. We couldn't come to a agreement with the Senate.
It was kind of late in the session. So, we weren't able to get that done. We have already started in
this interim working for us the next session to make sure that we can have a bill that it's going to
help with affordability and availability for those homes for folks from the company.
Big business here. I know Kentucky has invested heavily in site readiness and industrial development.
So, being proactive rather than reactive when competing for those major projects, I imagine is
extremely important to position yourself in that proactive stance. It is. May these businesses spend
years trying to prepare for expansions or new businesses coming into a state. But when they're
ready to go, they're ready to go. And so, we have to be up. I have your sites ready yet to be available.
Yes, I had everything in order for them. You already need the infrastructure there. You already
need the land there and the boot prepared together. So, we've been trying to do that over the past
several years to make sure that Kentucky is right there at the top of the list and anytime
anybody is building good breaks. Great. That proactivity. So, in businesses evaluate locations today,
what do you believe are the biggest competitive advantages states need to offer that may not
have been top priorities even 10 years ago? I think resources are a big thing.
Water, sewer, electric energy is a huge thing across the south right now, especially as we've
seen the expansion of industry across the south. I think all of our states are struggling a little bit
with that and what we're going to do to make sure that they have enough energy. So, I think it's
the biggest thing they're ready for right now is does this state have the resources that we need
to operate our business? I think outside of that second, do they have the workforce that we need
to make sure that we can operate part? Absolutely. Economic competitiveness often requires states to
think ahead about emerging industries and future opportunities. This year, you sponsored House Bill 545,
legislation designed to support alternative aviation fuel production while creating new opportunities
for Kentucky's agriculture and transportation sectors. So, what opportunities did you see that
led to you sponsoring House Bill 545? And how does it fit into Kentucky's broader economic development
strategy? Kentucky's a large agriculture state. We have, cattle is one of our primary industry,
but also crops is wailed. And one of the things that we look at is how can we help our farmers,
but plus how are aviation community because it's our fastest growing industry. And our largest
industry right now in the state is the aerospace industry. And so, we were trying to help them in
that way. We worked with many of the airports, many of the airlines, UPS, Amazon,
those cutters on making sure that we could give them what they need. And right now, a lot of them
in their business plans are looking for alternative aviation for you. They're kind of forced into that,
especially in the European market. Right now, our largest airport up in Cincinnati is looking to
add some European flights into Germany. And Germany requires that those flights have that
aviation fuel in them when they come into the cutters, sir. We're trying to help them with that and
be a producer here in the state. What we did was we made a producing tax credit. So our refineries
will get a credit for producing the fuel, but our farmers get a large credit as well for
producing the soybean and the foreign that will go into this fuel. And so, we're trying to help our
farmer for them anything right now as well as our industry. And I think we're on the right path.
Yeah. And the South leads the way for aviation and aerospace also ag production. So it does seem
like a great fit for Kentucky to have stepped out as one of the leaders in that space. And to your point,
kind of forward looking and creating those opportunities that weren't available years ago, a decade
ago weren't things that y'all are grappling with. But what does that next step look like? And I heard
you blabbing clear and I agree. I've heard this across multiple southern states that, you know, our
resources available in our states in order to support the industries that create the jobs that
create innovation and the future. So thanks for taking the lead on something in Kentucky and
we're watching. I'm sure you've got a couple other things up your sleeves as well for that. So in the
future, your legislative work this year has also touched on higher education, workforce development
and prison education programs. So looking ahead, what industries or sectors do you believe are most
important to Kentucky's long term economic future? And how can the Commonwealth position itself to
compete for those opportunities? Well, I think that as I'm already midgey, we have the aviation
industry of course is going to continue to expand. I think you're going to see the automotive industry
continue to expand. But it's not just about those larger companies either. It's our small businesses
and we need to make sure that all those small businesses are on main streets in our small towns
are successful as well. And they're primary, the ones that are going to be more and most of
your people in your state are your small businesses. So we just need to create an environment that
with our tax structure, with our policies and our procedures and our regulations in our state,
to reduce those enough that these folks can operate in the way that government gets out of their
way and that allows them to live their lives. And that's actually kind of the next direction is
that rule economic development piece. So one issue that resonates across much of the South is ensuring
economic growth reaches every region of a state. So you've been involved in effort supporting
regional development projects, including major investments in economic infrastructure in central
Kentucky. So Kentucky includes, let's start that question over, Kentucky includes major metropolitan
areas as well as many rural communities. So what lessons has the Commonwealth learned about
ensuring economic growth reaches every region of your state, every district? Well, like I said,
a lot of your larger companies who are now starting to come back to the United States are going to
need expansive areas to build on. And most of that is going to be in those rural areas. And so that's
what we're doing is comparing that in my district, we at my district in Representative Josh Brage
Difter, we established a very large industrial market, some megacytes of 1600 acres. We've got
all the infrastructure there, it's there to go. We want to be ready for the future. And that site now is
one of the top 10 sites in the nation as far as the data sites go. And so we're hopeful and
we're in discussions with some folks now and hopefully thanks for paying out very soon. Okay,
we heard it here. Central Kentucky has a megacytes ready for you. So they're open for business.
So call speaker, protein, mead, oh, really probably call the economic development folks in Kentucky,
but we're I can you treat contact with it, but they're ready. So that brings us to the broader picture.
Kentucky has experienced significant economic momentum in recent years while continuing to navigate
workforce, infrastructure and competitiveness challenges that many states are facing. Where do you
see Kentucky leading or making the most meaningful progress right now when it comes to economic development?
I think that energy is one of our areas that we have always led in, you know, with the coal industry
that is kind of transitioned open natural gas, most of our power plants and things like that.
But it's something that we're facing in the future as far as the difficulty, do we have enough energy
for these companies that are coming because a lot of these larger companies, the more especially
things like data centers or some of our larger automotive industries, they're digging so much energy
that we're trying to prepare for that. And part of that is making sure that your electric infrastructure
was up to date as well. So we partner with our co-offs, we partner with our electric companies to try
to make sure that we're advancing in that area. So I think that's something that a lot of our states
are scurrying with all across the South is how are we going to have the easier for these companies
that is needed. One of the greatest resources we have across the South of course, water and
water these companies need, need that resources as well. So we're positioned very, very well,
don't be in the South. And I think that as we come together, especially when we come to get at
CSG South, all of our states come together and being able to work through these things and
partner together and developing solutions. It's been a good thing for all of us and being able
to reach out to each other and say, "Hey, what are you doing in your state to advance this? What are
you getting doing in your state to be prepared for this?" So it's a good collaboration of states.
Yeah, we're seeing energy bills pass across the Southern states. I know you all are talking and
sharing that information and I think that we'll see more and more of those over the next several
sessions, particularly to address the data concerns and opportunities around data centers as well
as the energy usage that beyond data centers that we're consuming as individuals but also as these
industries are consuming. So a lot of our states are working on that issue. So I'm glad that Kentucky's
at the table being that you all are such a strong energy-producing state as well as to your point
a water forward state. So where do you believe Kentucky still has the greatest opportunity for
improvement when it comes to long-term economic competitiveness? I think that one of the areas that
we continue to need to work on is preparing our workforce, making sure that they're educated,
making sure that we have the perfect number of people out there. Kentucky is a heavily dependent
Medicaid state. We're then cracking down on making sure that the fraud or the use of that program
is cut out and that is what built on our focus is recently. And so we're trying to make sure also
that we partner with our economic development and our health and family services can for those who
are on the program completely able by that we partner in order to get them to training necessary
and help them to get back out into the water force. And it's interesting. I don't think the just normal
citizen would think about how Medicaid and economic development actually do have to work together.
They are not two separate things with separate conversations that don't ever intersect in these
really complex issues, really for a state. So when you think about the next five or ten years,
what would convince you that Kentucky is not just attracting investment but truly building a
strong and more resilient economy? Well, I think that we focus on who we're going
partner here when it comes to economic development through our budget process and also through the
camera for economic development. We look at long-term growth. We look at people that we're going to
partner with that we're going to try to incentivize that we're going to introduce to this state
are going to be long-time partners. And so when especially when we develop a plan for those
companies or the incentive package or where it may be it's a long-term package they're going
to actually be here for a while. And so we know that they're going to be good partners from
again to stir. Nice. Well, kind of looking more at the regional lens right now as chair of CSG South,
you have the opportunity to engage with leaders from across the region and really across the country
who are facing many of the same challenges. So what economic development trends are you seeing
across southern states that excite you the most? Well, I think you're seeing a large amount of
growth across the entire southern region and I think it's because a lot of our policies line up
with each other. We worked very hard to develop those policies and we've gotten feedback from these
business leaders to say what do we do to help you? What can we do to make sure that growth
is to suck these good for you, sustainable for you, how can we help? And so those are the I think
that's the biggest thing that gives me hope across the South is because we're all most of us are
like minded, we're all taking the same way trying to work on the same type of policies and if you look
across the nation right now the South is the leader in this industrial boom where the ones bring
most of the companies to our areas. And still looking through that lens of CSG South chair,
what is one economic development challenge that nearly every southern state seems to be talking
about right now? I think I think energy, water, data centers is kind of that natural fit. Is there
anything beyond that that you think is really taking center stage as a big challenge? Medicaid right now
is drawing to hit us probably pretty hard in our budgets across the South, across the country, but the
South there is a heavy dependence on Medicaid in our areas and so when that reduction in our budgets
come we're going to have less money to spend on those economic development projects and things
like that because when I back there are some holes. So we're going to have to do some some
subdating on that and figure out ways that we can make sure that we are defining it ready for
those economic development projects. That's also as I mentioned before is getting those
folks that we can back out to work as the Medicaid roles decrease and making sure that we can help them
and have a sustainable life that we're yeah and actually we have a data center session at the Southern
Legislative Conference in July as well as we have our main policy planaries actually Medicaid
and President Stivers is going to moderate that so we'll have a very thoughtful conversation
about Medicaid so it's a great point and then we are also hosting on July,
love it the first day of SLC the regional energy summit so we are very much though highlighting
two of those big topics at SLC next month under your leadership so thank you for that and
and you brought it full circle. So before we close I'd like to end with a question we ask all
of our guests what is the best piece of professional advice you've ever received and how does it
shape the way you approach leadership today? I don't know that it's just one piece of the
advice that I've received I think it's over time folks pretty used as mentors who you know kind of lead
you along and tell you how to conduct yourself I think one of the best things that I've been told
is when I first came in the general assembly was that mood to sit back listen get a full grasp of
the issue that you're talking about before you speak on it and be knowledgeable about it and so
that's one of the things I'll be about but also I think that it goes back to how you know I was raised
and it grew up and I believe that two of the three of the greatest qualities that a leader can have are
kindness, compassion and humility and so I try to operate in that way with your kind to everyone
show everyone respect there within willing to work with you work for you and so that's still I
try to free everybody as good as possible can you compassion you have to have your heart in it you have
to you have to make sure that you you do things in a way that you're caring I can't allow motions to
drive policy but we do need to have a heart in it would know that we're helping people and why we're
helping people with your and then of course humility is I don't think that though you know I think
the greatest leaders are the ones who do create it there to want us and don't take that credit
themselves so I try to make sure that my colleagues in the caucus or in the house get most of the
good at anytime I speak ammunition well I can attest you being my chair you've led with kindness as
well as your heart and I have watched your skill the art that you explained of sitting back and
listening and really understanding and I've had several conversations that you're not aware of
where people said he listens he is absorbing everything and then when he speaks he means it but
he has been listening and learning so that's it's interesting that you that was your professional
advice I have watched you live that many many times and it's working for you so speaker pro to
mead thank you for joining us and for sharing your perspective on Kentucky's economic future and
the opportunities ahead for the Commonwealth and the South also want to thank you for your
leadership as chair of CSG South and for your continued commitment to strengthen collaboration
among Southern states we can't wait for the Southern Legislative Conference in Lexington,
Kentucky this July under your leadership. Well, if I get lazy and I can't say enough great things about
even and our work working relationship this year and how much work you have done not just on the
conference but for CSG South our year. I appreciate that sir and to our listeners thank you for tuning in
to real estate for more conversations like this and to register in advance for the Southern Legislative
Conference visit csg south dot org I'm Lindsey Gray let's keep it real.
Thank you for joining us today on real estate where we keep it real about what really matters.