KY Policy Blog

House Health Repeal Would Shift $16 Billion in Costs to the Kentucky State Budget

By Jason Bailey
March 22, 2017

The House Republican plan to repeal and replace the Affordable Care Act (ACA), known as the American Health Care Act (AHCA), would cut federal funding for Medicaid in Kentucky by $16 billion over 10 years, according to an analysis by the Urban Institute. Making up that shortfall would require an increase in state Medicaid spending in Kentucky that would be bigger than all but one other state.

Cuts to Medicaid in the AHCA come in two ways. First, it would require Kentucky to spend approximately three times more than under read more

Trump Budget Eliminations Would Be Major Hit to Kentucky

By Jason Bailey
March 21, 2017

President Trump’s proposed budget would be a major hit to the investments that benefit Kentucky’s communities, as federal dollars play a substantial role in our state’s budget and economy. His budget would completely eliminate programs that provided more than $190 million in federal funding to Kentucky in 2016, according to an analysis from Federal Funds Information for States.

Those eliminations alone amount to nearly nine percent of all discretionary federal funding to the state. On top of those eliminations, the president’s budget would reduce funding for a wide range of read more

Tiny Fraction of Wealthiest Kentuckians Gain from Tax Cuts in Health Repeal

By Jason Bailey
March 20, 2017

The House plan to repeal healthcare reform, known as the American Health Care Act (AHCA), provides a tax cut to the wealthiest people while reducing the number of Americans with health coverage by an estimated 24 million, according to the Congressional Budget Office. Because Kentucky has relatively few high earners, we benefit even less from the tax cuts than almost any other state even while Kentucky has among the most to lose from people becoming uninsured under the plan.

Two of the biggest tax cuts in the AHCA are repeal read more

More Federal Budget Cuts Would Especially Harm Kentucky

By Anna Baumann
March 13, 2017

More than one out of every three dollars Kentucky spends each year on health care, education, job training, child care, transportation and other critical programs comes from the federal government. These resources are now at risk of being cut deeply in President Trump’s forthcoming budget proposal this week, the ACA repeal and other looming Congressional attempts to slash programs Americans rely on.

A new report from the Center on Budget and Policy Priorities shows that 37 percent of total spending by the Commonwealth comes from the federal government, compared to read more

Undocumented Immigrants Contribute $37 Million Toward Investments in Kentucky Each Year

By Anna Baumann
March 2, 2017

Undocumented immigrants living in Kentucky pay $36.6 million in state and local taxes each year, according to a new report from the Institute on Taxation and Economic Policy. These substantial tax contributions should be acknowledged as lawmakers consider the economic and social impact of immigration policy and enforcement in the U.S. – including a recent executive order that expands the groups of immigrants prioritized for removal and a surge in deportations that involved 53 arrests in Kentucky, many of the detainees lacking criminal records and others with only minor offenses. read more

Kentucky Should Reject Dangerous Call to Reopen Constitution

By Jason Bailey
February 7, 2017

The Kentucky General Assembly may consider resolutions (versions introduced as HJR 54, HCR 13 and SCR 143) that are part of a well-funded national effort calling for a new convention to rewrite the rules of American government — an idea that could create chaos and jeopardize the U.S. Constitution.

Since the founding of the country, the constitution has been amended 27 times. Each time, Congress passed amendments and then the states ratified them. But Article V of the constitution allows a second method: states can call for a new convention read more

What Are Taxes For?

By Anna Baumann
April 18, 2016

Since completing forms and mailing off checks may not inspire reflection on the bigger purpose of taxes, here’s a Tax Day reminder of what we are chipping in for:

Through our local, state and federal governments, our tax dollars are pooled together and invested in schools and universities, roads and bridges, social services for vulnerable children and adults and other public services essential for shared prosperity and thriving communities in the Commonwealth.

In other words, taxes are a critical tool for doing important things together we cannot do alone. Here read more

Undocumented Immigrants in Kentucky Pay $37 million in State and Local Taxes, Would Increase with Legal Status

By Anna Baumann
February 24, 2016

Undocumented immigrants contribute to the Kentucky communities in which they live and work in a number of ways, including through taxes. Because immigration reform would provide a pathway for full compliance with tax laws — as well as improve immigrants’ ability to earn financial and human capital — it would also increase the taxes they pay.

A new report from the Institute on Taxation and Economic Policy estimates the 45,000 undocumented immigrants living in Kentucky today pay $37 million every year in state and local taxes — at an effective read more

The Low-Income Kentucky Workers Who Would be Harmed by a Federal Tax Credit Cut

By Ashley Spalding
September 3, 2015

The federal Earned Income Tax Credit (EITC) and refundable Child Tax Credit (CTC) help hundreds of thousands of low-income working Kentuckians make ends meet. These tax credits have been shown to reduce poverty and encourage employment. Children of recipients are more likely to be healthier, do better in school, go to college and gain employment as adults.

Unfortunately key provisions of the EITC and CTC are scheduled to expire at the end of 2017, which will result in a cut in these tax credits unless federal policymakers act to save read more

The Safety Net Is Effective at Fighting Poverty in Kentucky, Should Be Protected

By Anna Baumann
May 26, 2015

More than 800,000 Kentuckians are lifted out of poverty each year by safety net programs including Social Security, SNAP (formerly food stamps) and low-income tax credits for working families according to recent research from the Center on Budget and Policy Priorities (CBPP). Of those 809,000, nearly one in four are children.

It’s a larger impact than was previously thought. New data from the Urban Institute takes underreporting of certain benefits into account to show just how many people the safety net serves (underreporting occurs when, for instance, someone forgets or read more