A 2014 Business Insider report found Kentucky lagging behind its northern and southern neighbors in a ranking of all 50 states’ economic growth.  The report, which took into consideration a number of factors including unemployment rate, GDP and average wages, ranked Kentucky nine and 12 places behind Indiana and Tennessee respectively.  The state’s job growth has been alarmingly stagnant.  

What is the difference between Kentucky and its neighbors that explains this shortcoming?  Indiana and Tennessee have statewide right-to-work laws.  However, things could be looking up in Kentucky.

On December 19, 2014, Warren County in Kentucky made history by becoming the first ever locality to pass a right-to-work ordinance in a non-right-to-work state.  This step was not only a huge win for local government, but has also yielded tangible benefits for the people of Warren County. 

In the months following the ordinance’s passage 47 new projects have been proposed in the county, according to the Bowling Green Area Chamber of Commerce.  These active projects have the potential to translate into 4,700 new jobs.  To put that into perspective, for the entire year of 2013 the state of Kentucky as a whole introduced only 32 new manufacturing projects and just under 2,400 jobs.  If one county can generate that much job growth, imagine the potential for economic growth if Kentucky were to pass a statewide right-to-work law.

Using Warren County as a model, 11 additional counties have followed suit passing right-to-work ordinances, and an additional four have ordinances pending.  It is no surprise that all of the counties that have passed or introduced ordinances either touch or are near the border of the right-to-work states of Indiana and Tennessee. 

Ron Bunch of Bowling Green’s Chamber of Commerce reiterates that half of site selector consultants say clients make right-to-work a non-negotiable requirement when looking for a location to build their businesses.  Prior to Boone County passing its ordinance, KMK Consulting’s Jim McGraw told the Fiscal Court there just that.  “On any kind of level playing field, right-to-work is going to make the difference.”

This difference has caused Kentucky to miss out on hundreds of new projects and thousands of new jobs in the years since it has been sandwiched between two right-to-work states.  Since its passage of right-to-work in February 2012, Indiana has developed 100 new projects resulting in 10,000 new jobs attributable to the new legislation.  As a result, Hoosiers have benefitted from an average income increase of $1,000 in the first year following right-to-work implementation.

The 12 counties that have passed ordinances are working to get Kentucky on pace with the growth in right-to-work states.  Bluegrass Institute president, Jim Waters refers to it as the “opportunity gap.”  With each passing month that Kentucky is not right-to-work, more and more potential Kentucky jobs are falling into the gap, never to be seen again.