Fri January 3, 2014
KCEP Outlook On State Budget
A survey of Kentucky's economy says lawmakers have a choice between reinvesting in services and making more cuts to government.
The report released on Thursday (Jan. 2) from the Kentucky Center for Economic Policy says $250 million in additional revenue won’t be enough to meet the state’s most pressing needs.
Center Director Jason Bailey says this is the worst outlook in recent memory, and lawmakers must find ways to raise revenues to reverse the negative effects of budget cuts.
“The economy is still growing too slowly to generate adequate revenues. We have a tax system that’s outdated and badly in need of reform. At the same time, there are serious pressures to roll back budget cuts to pay for the liabilities to build up the pensions and other areas.” –Jason Bailey
The state budget is around $18 billion. The report says the cost of funding the state’s most pressing priorities could add up to another billion dollars.