State of the City

Jerry E. Abramson

I appreciate the opportunity to join you for my 19^th State of our City address.

It always feels like a whirlwind tour … to take stock of the changes that are transforming our community … in a 15-minute presentation.

I want you to think of this speech as …

• First … a report card … I’ll give you my perspective on how our community is doing.
  
• Second … a weather report … I’ll talk about the winds of change that I believe may affect us throughout 2008.
  
• And finally … I want to leave you with an inspirational message. My hope is that it will move you to engage in new ways to make a difference in our community.

First: the report card. How are we doing?

As you know, I am a lifelong Louisvillian. And I don’t remember any time with more new projects transforming the landscape of Louisville.

As the Downtown Rotary, you know that our downtown is ablaze with activity: our new arena; the Museum Plaza skyscraper that will dramatically redraw our skyline;

the expansion of Fourth Street Live with more retail and entertainment; new office space, additional hotels and an array of new downtown housing … from the Fleur de Lis condos rising near Slugger Field … to the six square blocks of Liberty Green at the eastern gateway to downtown.

As you know, Louisville is the hub of a 13-county two-state metropolitan area -- population 1.2 million. And so what happens downtown doesn’t just stay downtown … Study after study show that thriving center-cities are good for their adjacent suburbs, bringing greater prosperity to the entire region.

In addition, it’s important to note that now, more than ever before … U of L has become a dynamic force in shaping our downtown -- from its downtown life sciences research park with $2.5 billion in potential development … to plans for the graduate business school and expanded fine arts programs. The fortunes of great cities and universities are linked, as Dr. Ramsey made clear in his state of the university speech last fall. There are strong new ripples around U of L’s Belknap campus, too, with more than a thousand new student housing units on the horizon that promise to add vitality to nearby neighborhoods and transform campus life. Along with U of L’s growth comes new programs and facilities at many our higher ed institutions. Hats off to them as well.

Our report card should also show an A-plus for our City of Parks: Look at a map of our community and you see dozens of park improvement projects in progress or recently completed -- in all corners of our city:

The biggest -- roughly 4,000 acres along Floyds Fork -- is one of the largest park expansions in the nation and will shape development…quality of life… for residents and businesses in the surrounding area – that’s roughly 60 square miles … Think of it: That’s approximately the size of the old city of Louisville. This year we got a foot in the water – literally -- as we opened the first canoe launch. And the master plan for Floyds Fork’s parkland is well underway.

Other parks and recreation projects in progress all across Louisville:

• Our 100-mile Louisville Loop …a bike and pedestrian trail.
  
• Our $33 million 85-acre Riverview Park in the PRP/Valley Station area.
  
• Champions Park at River Road and Zorn with soccer, field hockey, lacrosse and cyclocross. 
  
• A new 100-acre park and community center in Fern Creek designed for use by all citizens …including those with disabilities … from throughout the region.
  
• Expansion of Jefferson Memorial Forest in Fairdale.
  
• The $45 million Salvation Army Kroc recreation center out Cane Run Road … just to name a few.

We are not only all over the Louisville map with parks projects. Louisville is also on the national map as we continue to attract high-profile recreation and sports events: Last year, we hosted the National Senior Games, the 30th Anniversary McDonalds All-America Basketball Classic; the AVP Pro Beach Volleyball competition; the Ford Ironman triathlon and more. Later this year, we’ll welcome the Ryder Cup and its teams of European and U.S. golfers.

In the area of public safety, Louisville remains one of the safest large cities in America. Overall, crime was down 2 percent last year, despite an increase in homicides, with drugs a prevalent factor. And we’ll start construction soon on two new firehouses, with a third on the drawing board.

In the area of public health, I am proud that our community’s public buildings are once again smoke-free -- that our city, which once prospered from tobacco production, has joined the ranks of progressive communities who take their public health responsibilities to heart …literally …and stand up for the health of workers … the health of children and families.

Our community report card should also take note of strong job growth in our metropolitan area.

We hit a new high in the year 2007 for total employment -- more than 630,000 jobs -- according to the latest estimate by the Bureau of Labor Statistics … with increases in important sectors like professional and business services. This is great news, really worth celebrating. And it doesn’t include the 5,000 new workers UPS plans to add in the next 3 years or the regional job growth we anticipate on a few important fronts … including up to 5,000 new civilian jobs coming to Ft. Knox. We will feel those ripples, too.

Now: I also promised you a weather report for the upcoming year.

As we move forward, I don’t want you to think it is all sunny skies. There are clouds on the horizon and we should be prepared to respond.

On one hand ... Yes, we have a record number of jobs. But on the other hand … the financial picture for the year ahead will challenge us to make the most of our resources: The revenue we collect from corporate net profits is down … home sales are slow ... health and pension costs continue to rise at 4 times the rate of revenue

growth ... the federal government is trimming community development block grants for cities … and you may have heard the governor say this week that the Commonwealth of Kentucky is facing a serious budget crisis.

With the financial chill in the air very clear … I ordered a freeze in city government hiring and travel in early December. And this week I directed city department heads to come up with plans to cut expenses further over the next 18 months.

We are not alone: Budget shortfalls are raining on cities coast-to-coast. New York City is facing its first hiring freeze in 7 years. Phoenix, Arizona is considering layoffs that may include police and fire and service cuts that may affect parks and libraries. Indianapolis is sharply reducing the number of take-home city cars. Atlanta is worried it can’t afford to add police at a time when crime is surging. Earlier this month San Francisco’s mayor called for 13 percent across-the-board cuts to city departments. And on and on.

Yes, on the one hand … we do have a record number of new projects underway in our downtown and in all corners of our community.

But on the other hand we face a national economy that is in a “downward spiral” … from housing to other financial sectors. That uncertain weather … in the overall economy … may slow progress on some projects in this community. It may raise potential costs on others.

But as we face this period of national uncertainty and local fiscal challenges, we must keep investing. We must plant the seeds today that will bloom as the sun shines and the economy regains strength in the future. Projects like our bridges and rebuilding Spaghetti Junction can’t get lost in the fog of short-term financial uncertainties. They must stay on course.

We must also continue to invest in education -- a top priority for our community: On one hand, positive winds of change are blowing. Thousands more kids in our city are reading at grade level, thanks to Every1 Reads, a program your Rotary Club supports with volunteers and funding. Thanks to a boost in federal funding, we are reaching out to provide job training this year for three times as many low-wage earners … so they can take home bigger paychecks in a matter of months. And yes, it’s great that …overall … the number of post-secondary degrees granted in our community continues to climb.

But, on the other hand, we still have miles to go when it comes to education. We must keep improving our public libraries – reinventing, redefining the library as an institution for the future even though, unlike 106 counties in Kentucky, we don’t have a dedicated source of tax revenue.

Truly we need to fast-forward educational progress across the board: preschool for every child … cut the troubling high school dropout rate ... and energize more adults to go higher up the education ladder. This year you will hear more about a new community-wide campaign to get folks who have started college and quit … to finish their degrees.

On one hand, we are adding new green space through our city of parks and have also taken steps to “go green” in other ways -- from creating more bike paths to changing 600 traffic signals in the city to LED lights, which consume 80 percent less energy, saving $250,000 a year.

On the other hand, now it’s time to push harder: We have begun working on a “Go Green Louisville” action plan for city government -- and a strong partnership with the community … U of L, public schools, as well as the private sector. It’s clearer than ever before that being green is not only the right thing to do -- it’s the financially smart thing to do. So stay tuned as we go green to save green. You will see more energy-efficient management of buildings and fleet, more recycling and a commitment to engage more citizens and businesses to join in this effort.

Now let’s talk inspiration. Let’s focus on your role as informed, engaged citizens -- not mere residents on our community. I second the opinion of the great U.S. Supreme Court justice born in Louisville — Louis Brandeis – who said, “The most important political office is the office of private citizen.”

You’ve heard a lot of “on one hand” and “on the other hands.” This is the point in my speech when we talk about joining hands … giving a hand.

Whether the sun shines … or we face inevitable storms … we can weather challenges with strong partnerships that pave the way to progress. That includes citizens as partners, corporations as partners, other elected officials like our governor Steve Beshear, Louisville's hard-working new U.S. congressman John Yarmuth and our senior Senator Mitch McConnell. They understand Louisville’s role as an economic engine for our region and state.

I would like to challenge you and your organization to get involved in new ways … that can make a positive impact on the climate of our community.

I would like to challenge you and your organization to get involved in helping Louisville Go Green. We have some pacesetters in the public and private sectors of our community who can inspire and coach the rest of us … companies like GE, Humana, Aegon, to name just a few.

I’d like to challenge you and your organization to adopt as a campaign the finish-college initiative I just mentioned: Provide your employees front-end tuition assistance. Offer flexible work schedules so they can get to class. Make it clear that a college degree opens the door to opportunities in your organization.

Why should you care if we get more folks to finish college? Because a better educated workforce sets in motion a positive cycle … we attract good jobs because we have the talent to fill them.

I would like to challenge you and your organization to join the community conversation as we develop a new student assignment plan for Jefferson County Public Schools. As you know, we’re required to come up with a new plan as a result of last year’s U.S. Supreme Court ruling. Our new school superintendent and school board are committed to maintaining diversity … racially, economically, culturally … within the court’s guidelines … and at the same time they want to provide as much stability as possible for our families and children. Community forums and surveys will be held throughout the next several months. A successful plan needs guidance from the entire community. We need to get this right. It will truly make a difference in the future of our hometown.

My final challenge is this: Watch for ways to engage on issues that affect our community. Locally, regionally, nationally.

If you support or oppose gaming, an important potential source of new revenue, speak up.

If you think we need new financial or legal mechanisms to build the Ohio River bridges and to untangle Spaghetti Junction, speak out.

If you have ideas about how to improve our libraries, share them.

If you are concerned about home foreclosures -- their impact on individuals and neighborhoods -- join the conversation.

If you care about state funding for education – for our public schools K through 12 … for our community and technical colleges … for our universities -- talk about it with state officials and state legislators.

That is my challenge to you: Speak up, speak out, get involved.

Sure, we face some substantial challenges.

But who would have thought our small airport could be transformed into a high-tech hub for a company that has become the state’s largest employer?

Who would have guessed that deciding to clean up our riverfront 20 years ago would not only create a world-class waterfront park …but also spur hundreds of new jobs and $1.3 billion invested in the surrounding area?

Who would have expected a 62-story skyscraper planned for downtown Louisville to make headlines around the world?

Or that we would be planning the parks-project-of-a-lifetime … with spectacular terrain… in one of our last remaining unspoiled green spaces?

The answer to all those questions is: We did. We … the people in this room … believed in bold ideas.

We … the people in this community … have a tradition of working hand in hand on ambitious projects.

And that’s the way we will face our opportunities and our challenges today. Together.

Thank you … as an organization … as individuals … for your role in that partnership.

Now I’d be happy to hear comments and answer questions.