KY Policy Blog

Medicaid Cuts Would Harm Kentucky’s Kids

By Dustin Pugel
June 21, 2017

The American Health Care Act (AHCA) makes massive cuts to Medicaid, which currently covers 537,736 Kentucky children – 42 percent of kids in the commonwealth when combined with the Kentucky Children’s Health Insurance Program. Medicaid is a vital source of health care for children that provides both immediate care and long-term benefits.

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Medicaid Works for Kentucky’s Kids

Medicaid has always been used as a tool for providing care to kids from low-income read more

Kentucky Public Pensions Are Not Expensive — If You Fund Them

By Jason Bailey
June 21, 2017

A special session this fall will likely include proposals to cut public pension benefits, and new employees are especially vulnerable because their plans can be changed easily under law. However, such cuts do nothing to reduce the existing unfunded pension liability — which is owed to retirees and current employees — and won’t save money over the long-term either. That’s because Kentucky’s pensions are already inexpensive to the state as long as they are properly funded on time.

Actuaries refer to the regular cost of a pension plan as the read more

Kentucky’s State Budget Unable to Compensate for Massive Cuts in Trump Budget

By Ashley Spalding
June 15, 2017

President Trump’s budget proposal dramatically shifts costs to states they will be unable to afford, as shown in reports released this week by the Center on Budget and Policy Priorities. At the national level the cuts mean states and localities would immediately need to come up with the equivalent of more than five percent of state General Fund budgets to maintain the programs the federal government is shedding. Because the proposed cuts grow over time, what states need to assume responsibility for will grow to the equivalent of 37 percent read more

Troubling Hints About Direction for Tax Reform

By Anna Baumann
June 8, 2017

We don’t know yet the specifics of a tax reform plan the governor wants the General Assembly to consider in a 2017 special session. But this week, in a letter sent to legislators indicating the session will be held sometime after Aug. 15, the governor said Kentucky can become “more competitive with surrounding states like Indiana and Tennessee by lowering or eliminating certain taxes.” Given the makeup of those two states’ tax systems, this language suggests a potentially harmful direction that involves lowering taxes for the wealthy and corporations and read more

Kansas’ Experiment Yields Valuable Lessons for Kentucky

By admin
June 7, 2017

By Heidi Holliday

You’re welcome, America. Our state, Kansas, just wrapped up a 5-year long experiment in governance from which the other 49 states can now glean some important lessons. The Kansas Legislature has voted to roll back much of the 2012 package of tax cuts that sent the state into a downward spiral of financial instability and weakened the Kansas’ public schools, universities, Medicaid program and virtually everything else that the state funds.

With the state facing yet another budget shortfall of $900 million, government leaders decided that enough read more

Kentuckians Who Lose Coverage from Medicaid Cuts Won’t Have Other Options

By Dustin Pugel
June 7, 2017

Many of Kentucky’s 1.4 million Medicaid enrollees would lose coverage from the radical cuts proposed in the American Health Care Act (AHCA) and the proposed Trump Budget. Because of the changes in the AHCA to the marketplaces, those left without Medicaid coverage wouldn’t have other affordable options for insurance, either. This toxic combination of slashing Medicaid and making private insurance more expensive will hit older and low-income Kentuckians especially hard.

According to a report by the Center on Budget and Policy Priorities, a large number of people near the poverty read more

Pension Benefits Inject $3.4 Billion into the Economies of Kentucky Counties

By Jason Bailey
June 6, 2017

As the governor and General Assembly consider additional cuts to pension benefits for employees, it’s important to understand the role such benefits play in local economies. In 2016, public retirees of the Kentucky Employees’ Retirement System, State Police Retirement System, County Employees Retirement System and Kentucky Teachers’ Retirement System received pensions totaling $3.4 billion.  That’s the economic equivalent of an entire industry — for comparison, the accommodations and food services industry in Kentucky generated $4.5 billion in earnings in 2015 while the construction industry generated $7 billion, according to the read more

The Health Care Repeal Bill Would Double What Kentucky Must Pay for Medicaid Expansion

By Dustin Pugel
June 6, 2017

The American Health Care Act (AHCA) ends extra federal funding for states that expanded Medicaid eligibility, meaning Kentucky would have to increase its Medicaid expansion funding 111 percent to make up the difference. This $404.9 million increase in state spending would almost certainly lead to Kentucky ending coverage for the 472,000 Kentuckians insured through the expansion.

How Is Medicaid Paid for In Kentucky?

Medicaid is a shared state-federal program, and federal government pays states differently for their traditional Medicaid population depending on how well-off people are in each state. For read more

Trump Budget Makes It Harder for Low-Income Kentuckians to Climb Economic Ladder

By Ashley Spalding
June 2, 2017

In President Trump’s budget proposal, cuts to critical programs that help low-income Kentuckians are primarily justified as a way to move more people into the workforce. However, the budget proposal would actually makes it more difficult for low-income Kentuckians to be successful in the labor market — and would hurt many who are already working.

As noted in a recent report from the Center on Budget and Policy Priorities (CBPP), a plan that would actually lead to increased employment and earnings for jobless or under-employed workers with low skills would read more

What Combined Federal Cuts to Medicaid Would Mean for Kentucky

By Dustin Pugel
June 2, 2017

Kentucky’s Medicaid program is potentially facing enormous cuts to federal funding through the American Health Care Act (AHCA) and President Trump’s proposed budget. Nationwide, Medicaid as a whole would undergo a $1.4 trillion combined cut over the next ten years, a 45 percent reduction in funding by 2026 compared to current law. This cut would have the devastating effect of making coverage for low-income Kentuckians much harder to get and use — including children, pregnant women, people with disabilities and seniors.

The Cuts Would Be Made in Different Ways, All read more