State government's policy group says that Kentucky's revenues are sinking, and will continue to sink until KY passes revenue reform.

The Kentucky Long-Term Policy Research Center (KLTPRC) --a group of policy analysts commissioned by the '92 General Assembly--has released a report about the sinking ship that is Kentucky's General Fund revenue.

The March 2010 report looks at the "buoyancy" of the state's revenue, which refers to how well our revenue keeps pace with the economy.  Here's what they found:

• Over the last 30 years, Kentucky's General Fund Buoyancy has steadily declined.  In short, we haven't been buoyant at all.


• Kentucky's national ranking has also declined:  "From 1998 to 2008, Kentucky's General Fund growth lagged behind economic growth more than the nation or surrounding states." Our national ranking has fallen from  20 to 30.  Some calculations give Kentucky a 46 rank.
  


• And the conclusion:  "The long-term decline in buoyancy will likely continue in the absence of fundamental revenue modernization...Fixing the decline in General Fund buoyancy will go a long way toward solving Kentucky's structural deficit."
  

The report is called "The Long-Term Decline in Kentucky General Fund Revenue Buoyancy." It's linked through the pic on the left.

How did our legislators react to the report, which is yet another reason that they should finally choose tax and revenue reforms?  In their 2-year budget proposal, the Senate eliminated funding for Kentucky Long-Term Policy Research Center.