KY Policy Blog

Revised Senate Health Repeal Has Same Harmful Impacts

By Jason Bailey
July 13, 2017

Senate leaders released a “new” version of their bill to replace the Affordable Care Act that fixes none of the original Senate bill’s core problems and makes some of them even worse.

Through its cuts in funding, the Senate bill would effectively end Kentucky’s highly-successful Medicaid expansion, resulting in lost coverage for 473,000 Kentuckians. The bill goes beyond that to permanently harm the traditional Medicaid program by instituting caps that will squeeze funding over time. Those caps will jeopardize coverage for another nearly 1 million Kentuckians, including people with disabilities, read more

Year-End Revenue Results Underscore Need for Right Actions on Tax Reform

By Anna Baumann
July 11, 2017

Kentucky ended the 2017 fiscal year with $138.5 million less in General Fund revenue than economists predicted would be collected. The shortfall puts slightly more pressure on investments in our schools, universities and community colleges, health and human services and other building blocks of Kentucky communities. And its details reinforce the need to generate more revenue in ways that will work.

Total General Fund receipts in FY 2017 totaled $10.5 billion. Receipts did grow compared to FY 2016 by $138.9 million (1.3 percent), but the forecast predicted twice as much read more

New Study Provides More Evidence Harsher Penalties Are Not Solution to State’s Drug Problems

By Ashley Spalding
July 11, 2017

At the same time our state is increasing criminal penalties for heroin, a new analysis further bolsters existing research showing such an approach is not an effective way to address Kentucky’s drug problems.

House Bill 333, which the Kentucky legislature passed earlier this year, increases penalties for low-level heroin and fentanyl trafficking — rolling back the drug sentencing reforms in 2011’s House Bill 463. The new law makes trafficking in heroin in less than 2 grams a Class C felony, with a 5 to 10 year sentence and no eligibility read more

Kentucky Has the Most to Lose from Senate Health Care Repeal Bill

By Dustin Pugel
June 28, 2017

Kentucky would see its uninsured rate more than triple under the proposed Senate bill to repeal the Affordable Care Act (ACA). According to the Urban Institute, Kentucky’s uninsured population would jump by 541,000 people in 2022 based on the proposed changes to the healthcare system. The primary reason for the coverage losses is a cut in federal funding for Medicaid and premium subsidies on the insurance marketplace of $6.3 billion in 2022, a  58.5 percent reduction. That’s the largest percentage cut of any state.

The coverage losses under the Senate read more

Senate Health Care Repeal Bill a Drastic Step Backward for Kentucky’s Health

By Dustin Pugel
June 23, 2017

The Senate released the discussion draft of their bill yesterday to repeal the Affordable Care Act (ACA). If passed, the Senate proposal would be a terrible setback for the 1.4 million Kentuckians covered by Medicaid as well as all Kentuckians who benefit from the patient protections and assistance buying coverage contained in the ACA.

Nationally, the Congressional Budget Office (CBO) estimates that it would end coverage for 22 million Americans and drive up health care costs for nearly everyone else.

Effectively Ends Medicaid Expansion

Over 473,000 low-income Kentuckians have gained read more

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