Kentucky has good options to fairly generate new revenue and put an end to year after year of deep cuts to vital public investments, as outlined in a report released by the Kentucky Center for Economic Policy (KCEP).
The report, “Revenue Options that Strengthen the Commonwealth,” identifies more than 30 options to clean up Kentucky’s tax code, raise new revenue and restore and sustain critical investments in schools, higher education, health and more.
These options and others are an alternative to even deeper cuts to public investments like those proposed in Gov. Matt Bevin’s recent budget proposal, which generally calls for a 4.5 percent across the board reduction in this fiscal year and 9 percent over each of the next two budget cycles.
“For nearly a decade, our state has endured budget cut after budget cut, while dozens of options to generate new revenue are ignored,” Jason Bailey, executive director for KCEP, said. “Enacting one or more of these much-needed reforms would help ensure everyone contributes to a stronger Commonwealth, allowing us to invest in, not further harm, our priorities.”
The options include limiting income tax breaks for high earners, expanding the sales tax base to include services and closing special interest loopholes that are draining resources from the state budget.
The report also suggests reforms to help the struggling Road Fund.
“If lawmakers adopted any number of these options, funding education, roads, public health and other state priorities would be much easier to do every two years,” Bailey said. “We have the tools to build a better Kentucky.”
You can view the report here.
The Kentucky Center for Economic Policy is a non-profit, non-partisan initiative that conducts research, analysis and education on important policy issues facing the Commonwealth. Launched in 2011, the Center is a project of the Mountain Association for Community Economic Development (MACED). For more information, please visit KCEP’s website at www.kypolicy.org