KY Policy Blog

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

CBO Shows 23 Million Would Lose Coverage Under Health Care Repeal Bill

By Dustin Pugel
May 24, 2017

The Congressional Budget Office’s (CBO) review of the health care repeal bill passed by the House weeks ago estimates that 23 million Americans would lose coverage, many low-income and older individuals’ health care costs would rise, and people with poor health would be left with unusable and unaffordable insurance options. The American Health Care Act (AHCA) would unravel the healthcare gains Kentucky has experienced in the last three years and go beyond that by inflicting ongoing damage to the original Medicaid program.

Kentucky’s uninsured would dramatically rise.

The main portion read more

Food Assistance Cuts in Trump Budget Would Have a Devastating Impact on Kentucky

By Ashley Spalding
May 24, 2017

The deep cuts to the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps) in President Trump’s budget proposal would be devastating to Kentucky — particularly in rural parts of the state. SNAP provides critical assistance to prevent low-income Kentuckians from going hungry, lifts many out of poverty and leads to better outcomes for children in struggling households. The proposed cuts to SNAP are made by shifting 25 percent of the cost to states, putting pressure on them to reduce benefits and make cuts to the program that include imposing a read more

What Trump Budget Proposal Would Mean for Kentucky

By Ashley Spalding
May 23, 2017

President Trump’s full budget proposal released today includes harsh, devastating cuts to critical poverty-reducing programs that provide health, nutrition and financial assistance to many Kentuckians. The budget also includes drastic cuts to federal grants to states that improve our economy and quality of life and provide needed assistance to Kentucky’s most vulnerable. The rural areas of our state, which continue to experience the greatest economic challenges, would be hit particularly hard.

Mandatory Federal Programs

President Trump’s budget proposal includes harmful cuts to so-called mandatory programs (meaning spending is determined by read more