Kentucky Economic Watch | Publications | Press Releases | Resources
Tax and budget policy is a significant part of Kentucky Youth Advocates' efforts to help low and moderate income families in Kentucky. Taxes affect families directly and also provide most of the funding for vital government services, such as education, health care, transportation, child welfare and other safety net programs. State budget decisions reflect the priorities of Kentucky's leaders and carry long-term impacts on its citizens. KYA's goal through tax and budget work is to:
- Provide research on state budget and tax policies
- Emphasize state fiscal policies that promote long-term economic vitality
- Ensure appropriate state fiscal decisions are made (pdf)
- Promote a tax and budget system that is adequate, sustainable and transparent (pdf)
- Demonstrate the impact of tax and budget decisions on low-income and other vulnerable populations, especially children.
Recent Work
3/12/10 Highlights of the House Budget
After some three‐and‐a‐half hours of debate on Wednesday, March 10, the House passed its version of the next two‐year budget. It differs from the Governor’s proposal by not including $780 million in new revenue from expanded gaming. However, the House budget does include a projected $371 million in new revenue over the course of the biennium put forth in HB 530; now awaiting approval in the Senate. Read more.
02/17/09 Needs of Kentuckians Rise during Recession, Balanced Approach Needed to Meet Demand
Lawmakers currently face a $1.5 billion gap between what it will take to meet people's needs over the next two years and how much Kentucky has available for the state budget. A new report released by Kentucky Youth Advocates offers several concrete strategies Kentucky lawmakers can use to increase revenue and balance the budget responsibly.
01/14/09 Kentucky’s Structural Deficit: Well‐Documented and Persistent
A new report released by Kentucky Youth Advocates makes the case that the end of the recession will not bring the end of Kentucky’s financial challenges. The slow and persistent decline in the growth of state revenues can only be remedied if legislators intentionally balance the tax structure to provide adequate revenues that prove stable and predictable over time.
01/14/09 Recurring Budget Shortfalls Require Balanced Approach for the 2011-2012 Budget
A new report, released by Kentucky Youth Advocates analyzes how budget shortfalls have been handled thus far and makes the case that it is time for the Governor and Legislators to take a balanced approach that includes new revenue measures.
01/07/10 2010 Budget Briefing
Join Kentucky Youth Advocates, and others from across the state, to discuss Kentucky's fiscal situation in greater detail. Come learn just how big Kentucky’s budget gap is, and what the options are for closing the gap. Also, learn from an experienced state budget advocate, Jon Shure, Deputy Director of the State Fiscal Analysis Initiative of the Center on Budget and Policy Priorities, on how to talk about the budget crisis effectively.
Information | Tentative Agenda | Registration
10/12/09 Kentucky Tax and Budget Initiative Launches Kentucky Economic Watch
Kentucky Youth Advocates' Tax and Budget Initiative introduces Kentucky Economic Watch today. This new effort will provide consistent and comprehensive analysis of the three most telling data points reflecting the reality of Kentucky's economic climate; state General Fund revenue receipts, the state unemployment rate, and food stamp participation rates. The following examination of September's revenue receipts marks the first of the series.
Kentucky Economic Watch (pdf) | Press Release (pdf)
09/09/09 More than Just Numbers on a Page: State Programs Help Kentuckians
In an effort to engage Kentuckians in a discussion on the need for statewide tax reform, Kentucky Youth Advocates released four interviews. Each video features an individual from across the state who is receiving or who has received help from state-funded programs or services.
08/27/09 Guiding Principles
To ensure appropriate state fiscal decisions are made and to promote an adequate and sustainable tax and budget system, Kentucky Youth Advocates has released two resources to guide policymakers and analysts.
State Fiscal Decisions (pdf) | State Tax and Budget Systems (pdf)
08/27/09 Fact Sheet: The Importance of the Consensus Forecasting Group in the State Budget Process
Legislators developing the state budget rely heavily upon accurate forecasts
determining how much money the state will have to spend. Learn how the Consensus Forecasting Group anticipates how much money the Commonwealth will have to spend during the budget cycle.
07/07/09 Oped: Kentucky needs more tax reform, fewer tax credits
A melancholy and familiar song is playing again: the Kentucky Budget Blues. We've been hearing the song for the past decade, but over the past three years the volume has increased as state leaders made cuts to balance the budget, with each shortfall worse than the last.
06/30/09 Brief: New Minimum Wage Rate: A Net Benefit to Kentucky
The minimum wage is set to increase to $7.25 on July 1st, meaning larger paychecks for approximately 100,000 workers currently making the minimum wage in Kentucky. The wage increase will help working families by increasing their incomes and benefit Kentucky’s economy by increasing spending.
Report (pdf) | Press Release (pdf)
04/30/09 Report: Federal Economic Stimulus Money Will Provide Only Temporary, Partial Fix for Kentucky's Budget Problems The expected $7 billion that the American Recovery and Reinvestment Act (ARRA) will bring to Kentucky over the next two years will help mitigate the $800 million to $1.4 billion budget shortfall for 2010 but the temporary relief will not solve the long-term structural budget problems the Commonwealth has faced for years.
Report (pdf) | Press Release (pdf)
Earlier this month, Governor Beshear signed two bills which will enact a combination of spending cuts, fund transfers, and new tax revenue to close the $456.1 million shortfall in the current year state budget. The General Assembly took little action to reduce a likely similar shortfall in 2010; instead they appear to be relying on federal stimulus dollars to balance next years’ budget.
Analysis (pdf)
02/09/09 Presentation:The Commonwealth's Budget FY 2008-2010
Learn where the money in Kentucky's state budget comes from, where it goes and how the decisions made by our legislators in the coming sessions will impact generations for years to come.
02/02/09 Analysis: Weighing Budget Shortfall Options in Times of Economic Crisis FY 2008-2010
As the General Assembly returns to Frankfort this week, policymakers will be making very important decisions on how to deal with a $456 million budget shortfall. None of the solutions put on the table take into account Kentucky's troubling economy nor strengthen the budget against a similar, possibly worse shortfall next year.
Analysis (pdf) | Press Release (pdf)
01/26/09 Op-Ed: Many Options for State Budget Crisis
Times are tough for the Kentucky state budget. In such times, essential questions emerge. Is it preferable to cut budgets or increase revenues? How can Kentucky balance its budget with the least possible harm to an already damaged economy?
12/19/08 Issue Brief: The Right Tobacco Tax Rate: Balancing Efficiency and Equity Kentucky needs to raise the cigarette tax significantly to offset smoking-related social costs and discourage smoking. The current tax rate does neither. Further, an increase of less than 70 cents would merely produce revenues, doing little to decrease smoking and smoking-related costs.
12-16-08 Watch a recent episode of the public affairs show Kentucky Tonight that discusses the state budget. The panel is joined by Terry Brooks, executive director of Kentucky Youth Advocates. Watch online.
Learn More
Find out more about tax and budget issues in Kentucky: