Can state government provide needed services without new revenue?
Yes
No
“We don’t need additional taxes. I think we need to learn to live within our budget.” – Gov. Ernie Fletcher
“(The revenue-neutral tax modernization legislation) is truly historic, unprecedented and astounding.” – Gov. Ernie Fletcher
“P-12 Education received an increase of $526 million, including $9 million in debt service for new local school construction. Postsecondary education was increased by $123 million, including $18 million for debt service for campus construction projects.” – Midterm Report
Office of the Governor
“In Fiscal Year 2005, a combination of improved revenue collections and a focus on realizing efficiency savings resulted in a $214 million budget surplus.” – Midterm Report
Office of the Governor
“…lowering the (state) income tax rate is the single most important thing we can do to increase opportunity.”
– Gov. Ernie Fletcher
“A pledge is a pledge, and a promise is still something your father would warm your behind for if you break it.”
(A reference to the “no new tax” pledge taken by many state legislators.)
– Chris Derry, president
The Bluegrass Institute
“The road to higher (state government) revenues can no longer be paved with new tax dollars…Higher taxes hurt Kentucky’s already fragile economy by discouraging investment and job creation… (We need to consider) spending cuts to the massively repetitive and unnecessary state programs already in place.”
– Bluegrass Institute
“Kentucky will continue to deteriorate as long as a “revenue neutral” climate dominates the Kentucky legislature, steering Kentucky in the wrong direction.”
– Kentucky Economic Justice Alliance
“The dominant politics of our time and the threadbare promise of progress through low taxes and minimal public investments …is like a hurricane churning slowly offshore. When the budget storm makes landfall in Kentucky, the casualties and costs will be severe.” – Kentucky Economic Justice Alliance
“…generating more tax revenue will require real courage, not only from a … governor who already believes taxes are toxic, but also from a legislature that loves to play games with campus budgets.” – Louisville Courier-Journal editorial
Nov. 21, 2005
“Either we mount an aggressive effort to build on our accomplishments (in education) or we relegate our state to continued mediocrity.” – Mark Chellgren
Associated Press
Sept. 12, 2005
“You can’t do this (sustain a high quality educational system) with corn flakes.” – Humana Co-Founder David Jones
“It is not morally acceptable to have 118,000 children in Kentucky without health care.” – Ed Monahan
Catholic Conference of Kentucky
“Budgets are moral documents, because they reflect our priorities.” – Interfaith Alliance
National Council of Churches
Why is the state budget important to Owensboro-Daviess County?
In Fiscal Year 2003, our community received from state government…
$146.6 million in projects and services, including:
$63.4 million for K-12 education
$17.2 million for Medicaid and K-Chip benefits and administration
$8.2 million for transportation construction and maintenance
$6.7 million for Owensboro Community and
Technical College
$3.1 million for our courts
$3.0 million for family and community services
$2.4 million for juvenile justice
$2.0 million for teacher retirement
$2.0 million for mental health/mental retardation services
$1.9 million for KEES scholarships
$1.6 million in administrative services/PVA allowance
$1.6 million for our jail
$1.4 million for temporary assistance for needy families
$1.3 million for public health
$1.3 for family resource and youth services centers
…plus allocations in dozens of additional categories.
Source: Paul A. Coomes, Ph.D.; Professor of Economics; National City Research Fellow; University of Kentucky
The Tax Foundation found that Kentucky’s business-tax burden was worse than all but six states. (Bluegrass Institute, February 15, 2005)
Businesses pay 44.3 percent of all taxes in Kentucky, 10 percent higher than the national average. (University of Kentucky Martin School of Public Policy)
YES.
In 2005, Kentucky was ranked 9th in the nation for its business climate (Site Selection Magazine’s Annual Competitiveness Award) and 3rd in the nation for its workforce training programs (Expansion Magazine).
Kentucky has the lowest overall cost of doing business in the eastern U. S. (Economy.com and North American Business Cost Review)