In his first address to the legislature, Morehead recommended a plan of expanded internal improvements, including improvements along the state's rivers. The legislature responded by creating a state board of internal improvements, and named Morehead the ex-officio president of the board. In this role, he authorized many surveys of Kentucky's rivers and formulated several plans for improvements, but most of them were blocked by the Panic of 1837. One improvement that did proceed was construction of the Lexington and Ohio Railroad, which was completed in 1835. Though education was not a high priority for Governor Morehead, the Kentucky Common School Society and the Kentucky Association of Professional Teachers were formed during his term.