On Session’s Final Day, Lawmakers Pass New Tax Breaks for Already-Subsidized Industries
In the final hours of the 2026 legislative session, the General Assembly passed HB 869. This is the second voluminous...
Tax and Budget
Budget Cuts Will Harm Services That Benefit Children
In the final budget agreement, the legislature passed the deepest cuts in over a decade to the Department for Community Based Services (DCBS), which primarily exists to serve Kentucky’s most...
Last-Minute Tax Breaks Allow Racetracks to Keep Sales Taxes
Update: Key parts of the bill highlighted in this analysis were changed in subsequent legislation explained here. As has become routine in recent budget cycles, the General Assembly added lucrative...
Here’s How the House Budget Would Affect Seek Payments to Your School District
The House budget freezes school transportation funding and makes small increases in the guaranteed base funding level used to determine payments to school districts under the SEEK formula. Though the...
General Assembly Should Fix Underfunding of School Transportation This Session
School buses are essential to getting kids to and from school. In recognition, the General Assembly created a law as part of the 1990 Kentucky Education Reform Act (KERA) that...
In New Poll, Kentuckians Say Income Tax Cuts Aren’t Helping
Kentucky’s legislative leaders have made reducing the state’s individual income tax rate their top priority in recent years. Lawmakers have repeatedly acted on that, reducing the rate several times and...
State and Federal Tax Cuts of the Last Decade Are Giving an Enormous Windfall to the Wealthiest Kentuckians
The Kentucky General Assembly will create a new two-year budget in 2026 in the face of declining state revenues and substantial new costs passed down from Congress. Large recent state income tax cuts and a slowing national economy are already causing...
Kentucky Misses Targets for Another Cut to the Income Tax Rate
In a news report Thursday, the chair of the Senate Committee on Appropriations and Revenue confirmed that Kentucky missed targets allowing legislators to vote on another cut to the state...
HB 775 Moves Goalposts Again to Give Legislature Permission for More Tax Cuts
House Bill (HB) 775 in the Kentucky General Assembly would move the goalposts yet again on the state's income tax cut trigger formula. As the costs for these cuts grow,...
Another Income Tax Cut Will Dig the Hole Deeper
Kentucky lawmakers are expected to vote early in the legislative session on another half-point cut to the individual income tax rate, a drop from 4% to 3.5%. This cut is...