MACED releases report on rtwaqInvesting in Kentucky's Working Familiesrtwaq

Thirty-three percent of Kentucky's working families are low-income. It's Kentucky's own state policies that are holding families back, including our lack of a tax and budget structure that works for our people.

This, according to a new report released by The Mountain Association for Community Economic Development (MACED).  The report, "Investing In Kentucky's Working Families: a path to shared prosperity in the commonwealth," addresses the obstacles facing working poor families and their solutions categorized in three main areas: 1) education and skills training for Kentucky adults; 2) economic development; and 3) income and work supports.

The report offers a staggeringly stark picture of how difficult our state policies make it for workers to lift themselves out of and away from poverty, as well as policy solutions that would free up more state dollars to help people access education and afford to work.

An excerpt from the introduction:

Our leaders often start by thinking about what the state can attract to Kentucky.  They rarely think about how closely our prosperity is linked to our direct investment of and support of the working families that make up our citizenry.  Removing the barriers that working families face, and tapping the potential they possess, is in fact a central strategy for our shared prosperity....Legislators must consider how their decisions affect the daily reality of low-income working families and the future prosperity of the Commonwealth.

And this:

These are difficult economic times in Kentucky, but they are not new.  The Commonwealth's longstanding economic weakness continues to hold the state and its citizens back.  Our leaders cannot wish away the struggles of low-income working families as they attempt to solve our state’s economic problems. Instead, policy-makers must understand that investing in low-income families is central to addressing Kentucky’s problems. With the power of that understanding, we can build a Commonwealth where prosperity is both shared and abundant.

The report details the challenges faced by low-income working families, like the percentage of income that goes to pay off energy costs, the inadequacy of support for child care, adult education, health, and housing--all impacted by our elected leaders' refusal to pass tax and revenue reforms. 

Here are some quick hits:

• Kentucky’s 105,000 poorest households spend an average of 55% of their household income on energy, including heating, cooling, and gasoline.  To put an even finer point on it, if your household makes $50,000 a year--and these households don't--could you imagine setting $25,000 aside for energy alone?


• Sixteen percent of Kentuckians between 18 and 64 lack a high school diploma or GED, more than half of our adults read at basic or below basic literacy levels.  Still, Kentucky's investments in adult education--even before the House budget proposal--are inadequate.  In 2006, Kentucky invested about $48 a year for every adult without a high school diploma or GED.  The national average is about $77.
  


• Kentucky is one of just 16 states that still collect income tax from some
  families living below the poverty line.  (Before 2005, a family of four earning just $5,500 had to pay income taxes.  In 2005, KFTC and allies worked to  move up that threshold, taking more than 200,000 low-income families off the income tax rolls.  There's still work to be done to make our structure fair for everyone.)
  


• In 2008, payday loan stores stripped an estimated $158 million in predatory
  fees from Kentucky’s working families. (For more info, including county data, visit the Kentucky Coalition for Responsible Lending.)
  

That's just a sampling of the information in the report.  MACED also describes policy recommendations for each of the focus areas, including a state Earned Income Tax Credit and revenue reforms, and policies to support workforce and economic development. 

Thanks to MACED, and enjoy!