Kentucky's economic downturn

 

Gov. Steve Beshear announced Friday that he would call the General Assembly into special session beginning June 15 to deal with the state’s severe revenue crisis.

Kentucky, along with most of the nation, is suffering from the economic downturn. But the real crisis is the long-term structural deficiencies we have in our tax system for generating revenue fairly. Because we’ve left our system broken for so long, Kentucky is especially vulnerable to weak revenue. Legislative leaders are talking about dealing with the problem only through budget cuts. In other words, more teacher layoffs, greater increases in college tuition, the cutback or elimination of services for children and the elderly, and less environmental enforcement and public safety.

Is this the kind of Kentucky we want?

Sample Letter for Campaign

Subject: Comprehensive Revenue Reform

Dear [ Decision Maker ] ,

As you write the call for the special session to address the budget crisis, please include comprehensive revenue reforms.

Don't box us out.

Sincerely,

Campaign Launched:
June 02, 2009


Background Information

 

The nearly $1 billion revenue shortfall estimated for the new budget year that begins July 1 was actually predicted in 2001. The Fox Report commissioned by the General Assembly found that Kentucky was poised for huge deficits by 2010 because of our flawed and outdated tax system, which is not designed to keep pace with the state’s needs or economic growth.

So here we are, at the crisis point and past seven rounds of hurtful budget cuts in this decade already, and legislative leaders still won’t deal with the real problem.

It’s not that they haven’t acknowledged it. Gov. Beshear, House Speaker Greg Stumbo and Senate president David Williams all have said in recent months that we do need structural revenue reform. But now they claim that now isn’t the time for reforms.

In fact, now is exactly the time. Both the Institute for Taxation and Economic Policy and the Center for Budget and Policy Priorities have said that during this economic recession, states are harmed by budget cuts, but strengthened by progressive reforms that raise revenue fairly. We’ve gone too long with one-time, stopgap measures. Kentuckians have long been calling for comprehensive reforms that bring fairness and adequacy to our tax system. Now is our opportunity to act.