FRANKFORT — Kentucky, which once had a vital business climate and modest prospects for development, is slowly receding into the economic backwater, according to a report released today.

        Low pay growth, minimal employment prospects and a continued education deficit are the primary factors for the state's performance, according to the Corporation for Enterprise Development.

        The Washington-based think tank gave Kentucky a grade of D in economic performance, down from the C of a year ago. Business vitality rated a C, and the state's development capacity remained the same D grade it has received each of the last five years.

        Leslie Parrish, a researcher for the organization, said the annual report, which covers 73 factors, has been a useful tool for state economic development officials elsewhere.

        Crit Luallen, secretary of Gov. Paul Patton's executive cabinet, said the report in some ways reflects Kentucky's poor economic history. In areas such as education, disparity between urban and rural prosperity and lack of technology, Kentucky has long lagged the rest of the nation.

        Kentucky ranked among the top 10 percent of the states in only four categories — low energy costs, low housing costs, new business job growth and crime rate.

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