ASHLAND — While no decisions have been made for proposed casino gambling locations in Kentucky, gubernatorial candidate Steve Beshear says Ashland might be a strong contender due to its proximity to Ohio and West Virginia.

“Obviously up (Interstate) 64 is a heavily traveled area and it could draw people from West Virginia and Ohio,” Beshear said on Thursday while addressing the Editorial Board at The Independent via telephone. “It is obviously one of the areas to be considered.”

Casino gambling has become a key issue for many voters in the upcoming governor’s race, with Beshear advocating limited casino gambling at the commonwealth’s horse tracks as well as free-standing locations in strategic locations along state lines.

Beshear said Kentucky money is already paying for education reforms in Indiana, health care costs in Illinois and to pave highways in West Virginia.

“We have to decide if we want that to continue or if we want to bring that money home,” Beshear said, adding studies indicate the state could collect an additional $500 million in revenues with limited casino operations.

Beshear said decisions about where such casinos should be located must be considered carefully.

“We have a general concept of combination locations at racetracks and freestanding casinos along borders to take advantage of tourism dollars. We want the state to determine how many licenses to create so we will know the number of casinos we’ll have unless there is a vote. That solves the concerns about proliferation,” he said, explaining he is aware that many communities do not want casino gambling, “in their back yard.”

Proceeds from casino gambling should also be distinctly designated, he said, adding, “It ought to be spelled out in some detail.”

Beshear said his plans to generate additional income for the state would not be compromised if voters reject the proposal to allow casino gambling.

“We propose raising revenue in two ways, without raising taxes. The first is a very aggressive jobs plan to create more revenue from our present tax base. The second is a comprehensive study of state spending for everything from light bulbs to fuel for the state fleet,” Beshear said, explaining other states have realized significant savings from such studies. A two percent reduction in Kentucky’s spending could represent $160 to $180 million a year, he said.

If elected, Beshear said his administration will also work to find a solution to the state’s underfunded retirement system.

“We have allowed a large unfunded liability in our retirement funds. That happened over many years. We have shortchanged those systems and we have a legal and moral contract with those people,” he said, explaining a task force recommendation is expected on the issue in December. Beshear said the state should not change benefits for retired employees or those already in the system, although changes may have to be adopted for those hired in the future.

“It will have to be a longterm solution,” he commented.

Rising tuition costs at state universities and colleges are another area of concern, Beshear said.

“Since 2001 there has been an 83 percent tuition increase. There are a number of families at the point they can’t afford to send their kids to Kentucky colleges and universities. I don’t blame the colleges and universities for that,” he said, explaining state leaders have tasked the state’s higher learning institutions with many ambitious goals and the schools have strived to meet those ambitions.

“At the same time we have been pulling back funds,” he said, leaving colleges and universities little option other than to increase tuition, room and board costs. He advocated adoption of “Kentucky First Scholarships,” which would provide “forgivable loans” to help Kentucky students meet the gap between available funds and school costs. “After they graduate the state would forgive a year of the loan for every year they work in the state. We have a brain drain in Kentucky. We lose some of the best and brightest to other states.”

Beshear said energy would be a top priority for his administration.

“We are in a position to be one of the major suppliers for the U.S. with the coalfields of eastern and western Kentucky,” he said, adding the state needs to become a leader in technologies allowing coal and other natural resources including agricultural products for alternative fuels to be used without contributing to global warming concerns. “We need to cut greenhouse gas emissions. That’s why we need to step up. If we do, we can assure that Kentucky coal will be burned for many years to come.”

Beshear said he hopes partisan politics can be set aside for the sake of Kentucky’s future.

“This rank partisanship has got to come to an end. When this election is over everyone becomes a Kentuckian again. People expect our state leaders to move the state forward,” he said. “If we win we will send a message to put down the partisan politics banner and come together on things like economic development and health care.”

Beshear also said he hopes to make the state’s tax system more fair for small business owners, and to develop a new state office dedicated to helping the state’s small businesses grow and provide services, such as health care coverage and retirement plans, to small business employees.

Beshear said he plans to use running mate Dan Mongiardo as, “a full partner” in his administration, particularly when considering health care and adventure tourism issues.

TIM PRESTON can be reached at (606) 326-2651 or at tpreston@dailyindependent.com