A

Kentucky Can Do Better!

Raising the Bar: Kentucky's Real Budget Report

Teleconference Statement by Erik Lewis:
December 15, 2005

I am Erik Lewis, a member of Kentuckians For The Commonwealth’s Rowan County chapter. I teach classes in the Kentucky Community and Technical College system and am also a public school substitute teacher. I am familiar with the chronic under-funding of Kentucky’s public services. The status quo in Kentucky isn’t very good, yet the state’s tax system cannot even provide for this inadequate condition. While critical services deteriorate, too many elected officials resist instituting a progressive tax system by invoking the silly “no new taxes” pledge. The “No new taxes” pledge, however, didn’t stop double digit increases in tuition at Kentucky’s institutions of higher education.

My community college students’ tuition only increased 12.2% from 1999-2004. I say “only” only because of tuition increases in the 20-50% range at the state’s public universities. Rising tuition in combination with shrinking student financial aid takes a toll on my students and their families. Almost all my students work, and many also have substantial family responsibilities. Students and their families must typically work more to pay higher tuition costs, but there are only so many hours in a day. Learning as a college student is a job in itself. Longer work hours mean less time for study and for family. Less affordable college takes a toll. Kentucky once ranked relatively well in college tuition affordability. After years of declining state support, it no longer does. We still, however, rank 49th in the percentage of adults holding Bachelors degrees. “Revenue neutral” doesn’t provide for much of a future.

My wife, Trudi, is a social worker in the community mental health system. Forty years ago, the state of Kentucky was a national leader in developing a network of regional mental health centers. More recently, however, this system has been chronically under-funded, receiving only two cost-of-living increases from the state legislature since 1990. Kentucky now ranks 44th in state funding for mental health and substance abuse treatment and 49th in funding services for individuals suffering from developmental disabilities and mental retardation. I find a special sadness in instances where the state of Kentucky’s one-time leadership, in mental health and tuition affordability, for examples, could not be sustained. Inadequate revenue took its toll.

The Kentucky Economic Justice Alliance’s Raising The Bar: Kentucky's Real Budget Report contains a long list of worthy goals and dire needs: achieving excellence in higher education, improving health and health care, increasing access to substance abuse treatment, restoring the public defender and legal aid systems, providing adequate affordable housing; to note only a few. The report estimates a cost of between $1-$1.8 billion. Unfortunately, current revenues cannot even fund the status quo. Indeed, recent state budgets have achieved their mandated balance only through fiscal slights-of-hand and momentary revenue windfalls. Kentucky’s inadequate and outdated tax system doesn’t raise sufficient revenue to stand still, much less make up lost ground or forge ahead.

The Kentucky Economic Justice Alliance report Raising The Bar outlines a series of proposals to institute a more progressive tax system and raise needed revenue, combined with some good government proposals to improve the quality of information about the effects of provisions in the tax system. What’s needed is a commitment to progressive taxation, revenue raising based on the ability to pay. What’s needed is a tax system that generates adequate revenue.

Looking through information about current conditions in Kentucky, one sees in general a sorry state of affairs. Inertia is powerful; sad conditions tend to perpetuate themselves. Yet Kentucky’s public policy history has not been without occasional bright moments, when we, as a state, have actually gotten ahead of things. Perhaps this legislative session might bring some such bright moments, when state leaders find the courage to ask the best of themselves and of us as citizens. Kentucky is, after all, the state that gave the world Mohammed Ali, Louis Brandeis and Abraham Lincoln. Perhaps this legislative session, Kentucky might hope for good government, progressive taxation, and adequate revenue.

###

Raising The Bar Press Room