Kentucky Can Do Better!
FOR IMMEDIATE RELEASE January 19, 2006
Contact:
Heather Roe Mahoney 859-559-8439
Rep. Jim Wayne 502-564-8100
Kentucky’s Future on the Line
Bold initiative would generate new revenues for investment
in Kentucky’s schools, health care and communities
FRANKFORT: Eight
legislators and more than a dozen civic organizations announced a bold
initiative today to increase investments in critical programs and services
that will make Kentucky a better place to live and do business.
“We need to invest in the things that make Kentucky grow,”
said Rep. Jim Wayne. “No state grows without investing in higher
education. When we provide needed resources to our schools, Medicaid and
affordable housing, we generate economic activity in every Kentucky community
and improve the quality of life for our residents.”
Rep. Wayne (D-Louisville) and other members of the House announced legislation
that will allow increased investment in Kentucky’s schools and public
services while improving the fairness of the state’s tax system.
The proposed legislation, expected to be filed next week, would generate
more than $200 million in additional revenue. It would also direct $82
million to the 300,000 Kentucky families earning less than about $35,458
through a refundable earned income tax credit (EITC). Sixty percent of
EITC benefits would accrue to families earning less than $20,000 annually.
“With all
due respect,” said Pike County native Raul Urias, a former miner
and parent who spoke at the press conference, “Kentucky’s
political leaders are failing us. Our schools are falling behind. People
are suffering from lack of affordable health care. I see it every day.
The budget decisions made here matter back home.”
The legislation preserves Kentucky’s estate tax so it will not disappear
due to changes in federal policy; establishes a state earned income tax
credit to assist working poor families; creates a more progressive income
tax that asks those at the highest levels of income (above $75,000) to
contribute more; and expands the sales tax to a limited number of services.
Legislators spoke to a room full of supporters, including members of the
Kentucky Economic Justice Alliance (KEJA), faith-based organizations,
labor, educators, and residents concerned about quality education and
health care.
Last month KEJA’s released Raising The Bar: Kentucky’s
Real Budget Report which documented the chronic under-funding of
state programs that increase state competitiveness and benefit the quality
of life in Kentucky. The report found that Kentucky needs to invest at
least $1 billion more to make progress as a state.
“Raising The Bar describes the growing body of evidence
that Kentucky faces a looming budget crisis,” stated Debra Miller,
Director of Public Policy with Kentucky Youth Advocates. “It makes
the case that significant additional investments are needed for Kentucky
to make progress in key areas such as education, health care, and justice.”
For example, the report found that:
• Public schools need $337 million to bring Kentucky per pupil spending
to the average of surrounding states;
• Higher education system needs $250 million to catch up with comparable schools in other states (Kentucky’s Council on Postsecondary Education);
• $132 million is needed to cover the Medicaid shortfall;
• $132 million is needed for health insurance for teachers and state employees;
• At least $25 million is needed for mental health services;
• County
jails housing state prisoners need $100 million in order to avoid running
deficits.
"Chronic starvation of essential state programs have led to the deterioration
of the quality of life for Kentuckians,” said Rep. Wayne. “Only
major investments can move this state forward. I believe this is a moral
imperative.”
“We need the type of leadership that will move this state forward,
not backwards,” said K.A. Owens, a member of Kentuckians For The
Commonwealth. “We need fair and adequate tax reform that will provide
the kind of investment that Kentucky needs to grow.”
“I’ve heard it said that lawmakers don’t have the appetite
for passing tax reform this year,” added Urias. “Well I want
lawmakers and the governor to understand that Kentuckians are hungry for
a better future and we are hungry for leadership.”
The Kentucky Economic Justice Alliance (KEJA) is a partnership of organizations
working together to create progressive social and economic change in Kentucky.
KEJA members include Kentuckians For The Commonwealth (KFTC), Kentucky
Youth Advocates (KYA), and Appalshop. More information about the legislation,
including testimony, fact sheets and a downloadable version of Raising
The Bar: Kentucky’s Real Budget Report, can be found at www.keja.org.
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