Governor Ernie Fletcher’s Communication Office
Governor Fletcher Announces Details of Impact Study on Employee Choice in Kentucky

Press Release Date:  Tuesday, January 24, 2006  
Contact Information:  Brett Hall
Jodi Whitaker
Troy Body

Michael Goins

Study finds increased jobs, income tied to passing employee choice

FRANKFORT, Ky. – More jobs, more personal income and more revenue for Kentucky.  Those are the findings of a study commissioned by Governor Fletcher and the Office of State Budget Director on the economic impact of employee choice in Kentucky.

Impact on the commonwealth would create nearly 9,500 new jobs within three years, with a total personal income of $428 million.  The numbers accelerate with 55,115 new jobs and $5.537 billion in personal income within 23 years of worker choice becoming law.

“This study confirms our contention that employee choice will bring more jobs, more revenue and more opportunities to all Kentuckians,” said Governor Fletcher.  “To be competitive with our southern counterparts for new manufacturing jobs, it is imperative that we pass employee choice.”

Governor Fletcher and State Budget Director Brad Cowgill released the findings of the report during a meeting of Associated Industries of Kentucky (AIK) in Frankfort.  Dr. William T. Wilson, Managing Director & Chief Economist, Keystone Business Intelligence India, Chicago, conducted the study, with input provided by Dr. Paul Coomes, Professor of Economics, University of Louisville.

Dr. Wilson’s study concludes that in Kentucky employee choice would:

  • Increase personal income by $92 million in calendar year 2007
  • Add more than 55,000 new jobs in direct and indirect employment by calendar year 2030.
  • Raise state revenues by $6.4 million in FY07 and $13.6 million in FY08, and
  • Bring in $383 million in new revenues between the current year and FY2015. 

“State revenues will grow by $20 million in the coming biennium, which will help pay for one additional day of teacher salaries,” Governor Fletcher said.  “By fiscal year 2030, state revenues will grow by $414 million with worker choice.  We level of new revenue will help us in building new schools, health care facilities and infrastructure for communities across the commonwealth.”

Wilson notes that his study focused only on worker choice’s impact on the state’s manufacturing sector and didn’t measure impact of other sectors, including transportation and service. 

The study also found employment grew almost one percent faster in employee choice or right to work states between 1970 and 2000 compared to non-employee choice states like Kentucky, and the percentage of people living in poverty dropped nearly seven percent in employee choice states from 1969 to 2000.

“It is likely that right to work legislation in the public sector would lead to more competition and choice in these professions and industries, leading to higher productivity and a lower cost of living for state residents,” Wilson concludes in his report.