Great to join you. It is always a pleasure to host you in Louisville.

We are city boosters here – and appreciate the opportunity to welcome public servants who represent cities across our Commonwealth.

In Louisville…these are exciting times – as seeds we have planted and cultivated over the past decade…are bearing fruit…especially in projects throughout our downtown.

But whether our cities have 600 residents or 600,000, we all face extremely challenging times.

Even before the current national financial crisis, you and I were dealing with a long list of difficult issues:

· Rising health care costs.

· Increasing costs for employee pensions.

· Soaring gas prices (Here in Louisville, every 1 cent-a-gallon increase translates to nearly $30,000 a year.)

· Tight funding for education … the key to economic prosperity for individuals and communities.

· Roads in need of repair. . . and other infrastructure needs. Many of our cities (including Louisville) have century-old water and sewer lines that need replacing. . .

We have bridges that need to be built. And the public is clamoring in many communities (including Louisville) for expanded mass transit when rising costs mean we can barely sustain current service.

In the midst of it, windstorms tore down trees and power lines in a number of Kentucky cities …and added to our bottom lines. Louisville recently submitted $4.2 million in estimated storm recovery costs to FEMA. More than 300,000 local homes and businesses lost power – a record. It will be months till we are done collecting storm debris and making repairs.

And there is the storm of upcoming financial challenges that we can only speculate about: Today’s precarious economy.

In a recent survey of more than 300 municipalities, the National League of Cities reported that 4 out of 5 finance officers said their cities would be less able to meet needs in 2009 than this year.

The study’s author, a dean at the University of Illinois in Chicago said: “This the first time for at least 2 decades that all 3 major general tax sources — property, income and sales — have all declined at the same time.”

He added: “It’s not like the 2000 or 1991 recessions; those hit the coasts first and flowed to the middle. This one doesn’t differentiate between high-tech and low-tech cities, manufacturing towns or new exurbs.”

AND THIS SURVEY WAS DONE in SEPTEMBER.

I meet weekly with my cabinet of department directors. And we have become increasingly proactive as we look at revenue projections and spending.

Last week we began to talk about disturbing trend lines that are clear from the first quarter of our budget year.

I told the group we need to be prepared to limit pay-as-you-go capital projects …look for other savings … fill job vacancies only after careful deliberation. . . continue our commitment toward “go-green Louisville” initiatives that will net savings in energy costs.

But times like these call for big-picture thinking. We need to be strategic … innovative… collaborative…

And we need to be sure that a new administration in Washington … and the new Congress… recognize that they must be our partners. They must invest in cities … in metro areas…the centers for jobs, finance, education and innovation … if America and our residents are to prosper.

I hope you will join with me in spreading that message loud and clear…to your representatives and other elected officials.

As for your stay here in Louisville: I hope you are able to explore and enjoy downtown. First and foremost, enjoy Main Street – just named one of the 10 greatest streets in America by the American Planning Association – whether you are drawn to the Frazier International History Museum, the award-winning 21 C gallery and hotel, the Science Center or the Kentucky Center, where a brand-new KentuckyShow …a 30-minute multimedia experience…is being shown on the hour. Actors Theatre of Louisville has two shows, Dracula and Pride and Prejudice, and a late seating

at 10:30 of works by local artists. You can appreciate the extremely large hole in the ground at Second and Main where a new multipurpose arena is being built…thanks in part to strong leadership from the state. If I sound proud, I am. Main Street was a derelict row of abandoned warehouses before we made its revival a priority. The “best streets” award praised our “visionary planning, dedicated public leadership and public and private investment.”

Visit Waterfront Park…our zoo…our expanding city of parks…and you will know as professionals…that great things don’t happen in any of our cities without those components. …planning…leadership…regional public/private partnerships.

If you like what you see, know that it’s there for you, too.

Louisville is a great destination for weekend trips. And from an economic perspective, see us as a revenue generator for the entire state. When we succeed…if we attract a Ryder Cup or Breeders Cup…for example, and if Lexington’s Horse Park attracts the World Equestrian Games …it has a tremendous positive impact on the Common Wealth in Kentucky.

So: Keep up the good work.

I hope you have a productive conference – and enjoy your time here.