What are legislators doing about revenue?

This year is Kentucky's best opportunity to pass meangingful tax reforms. The Blue Ribbon Commission meetings invited Kentuckians from all over the state to participate in the conversation, the governor is showing leadership, and the need has never been greater.

And yet, the Kentucky Forward Plan – the only comprehensive, revenue-generating tax plan that makes our state taxes fairer across income levels – has yet to have a hearing. To learn more about the Kentucky Forward Plan (House Bill 142), see KFTC's handout or a bill summary.

Here is a list of the impacts of our state budget. This is largely from a presentation by Mary Lassiter, the governor's cabinet secretary (and former state budget director), to the House and Senate Appropriations and Revenue Committees on February 5. Budget cuts in the last 5 years have taken $1.6 billion from essential state programs and services, representing about 38% of these agencies’ budgets.

• Legislators have provided no money for textbooks in last five years.
• Tuition is up more than 200 percent at state universities and community colleges since 1998
• Two-thirds of students who qualify for need-based financial aid – about 73,000 students – are being denied this assistance because of a lack of funds
• There are more than 7,000 fewer state employees than there were in 1974, doing more work but without a raise in 4 years.
• There has been no increase in funding to Kentucky’s community mental health centers since 1998; support for Kentucky’s behavioral health services was once tops in the nation and now we’re ranked 45^th .  We’re also losing school nurses, who are often the front line of ensuring that our children our healthy.
• Environmental laws are not being enforced due to inadequate staffing
• 300,000 fewer Meals on Wheels will be served this year than in 2010
• We have fewer state police on the road than we’ve had in a generation
• School safety programs have been cut by 60%
• There’s a moratorium on applications for the Child Care Assistance Program in April and a reduction in eligibility for FY 14
• There will be no new applications for Kinship Care Program, which helps people care for children in their family who would otherwise likely enter into foster care
  
• Already, about 100 additional children entered the foster care system instead ofreceiving intensive services that would keep them in the family home as a direct result of the elimination of diversion services in Community Based Services.

Without new revenue, there will be a $300 million revenue deficit in the first year (FY 2014-15) of the next biennial budget, and a $1 billion shortfall by 2020.

Call your legislator and ask them what they plan to do to make sure that the legislature will pass a comprehensive tax reform plan that is fair and raises revenue this year. You can find their phone numbers here.