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State Tax and Budget

kentucky data centers

Report

Questions Grow About Who Will Pay the Cost for Big Data Centers in Kentucky

Large “hyperscale” data centers are spreading nationwide, and questions have grown about their true costs and benefits. These projects often...

Patience Martin | May 26, 2026

final budget analysis

Analysis

Budget Agreement Cuts and Freezes Funding for Most Services, Continues to Underfund Medicaid

The legislative chambers have agreed to a new two-year state budget (HB 500, later amended by SB 197) that includes 7% cuts to many state agencies. The agreement falls $691...

Jason Bailey | April 15, 2026

senate budget 2026 2028

Analysis

Senate Proposes to Ease Some House Reductions, but Austere Budget Reflects Recent Tax Cuts

The Senate’s version of the next two-year state budget eases some of the cuts included in the House budget, which passed in late February, by spending funds the House allocated...

Jason Bailey | March 18, 2026

HB 775 Moves Goalposts Again to Give Legislature Permission for More Tax Cuts

Analysis

It Can’t Be All About, Or In, the Base

As the 2027-2028 state budget continues through the legislative process, legislative leaders have repeatedly assured the public that key investments for programs like senior meals, childcare, salary increases, and increased...

Dustin Pugel | March 17, 2026

version 2 of the house budget

Analysis

House Proposes Still-Austere Budget That Freezes and Cuts Funding, Adds to Already Large Budget Reserves

The original HB 500, introduced late last month, was met with significant public criticism, including for its cap on employer health insurance contributions and cuts to Medicaid and education. The...

Jason Bailey | February 25, 2026

State Budget Cuts to Medicaid Are Unnecessary and Would Leave Kentucky Worse Off

Analysis

State Budget Cuts to Medicaid Are Unnecessary and Would Leave Kentucky Worse Off

As introduced, the upcoming biennial budget includes major cuts to large, state-funded programs as lawmakers contend with falling revenues from recent income tax cuts. Medicaid, as the second single largest...

Dustin Pugel | February 23, 2026

hidden choice

Op-Ed

There Is a Choice Hidden in the Pages of the Next State Budget

Lawmakers in Frankfort have started the next two-year state budget process, and House leaders say this year will be different. Rather than introducing a plan and swiftly passing it through the Chamber, they filed what they call...

Jason Bailey | February 18, 2026

Photo for website (3)

Analysis

Legislature Wants to Take Power From the JCPS Board While Cutting Funding to Its Schools

Legislative leaders have been critical of Jefferson County Public Schools (JCPS) in recent years on issues ranging from student performance to transportation problems and budget shortfalls. In response to these...

Jason Bailey | February 10, 2026

House Bill 5 Would Cost Kentucky More Than $1 Billion Over the Next Decade

Analysis

Initial House Budget Slashes Funding for Many Services, Prioritizes More Tax Cuts

As introduced, the House budget (HB 500) severely cuts or freezes many parts of the state budget and underfunds essential public services, with the apparent goal of triggering more income tax cuts under the legislature’s formula. The filing of the budget...

Jason Bailey, Ashley Spalding, Dustin Pugel, Pam Thomas and Jessica Klein | January 27, 2026

Property Tax Is Vital

Analysis

Property Tax Is Vital to Funding Schools, Public Safety and Other Local Services

Kentucky’s property tax is a cornerstone of how we fund public services that keep our communities safe, educated and healthy — especially at the local level. Approximately $5 billion is collected in Kentucky annually from property taxes, which apply to real...

Patience Martin | January 23, 2026

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