KEJA -- Raising The Bar:Executive Summary

Kentucky Can Do Better!

Raising the Bar: Kentucky's Real Budget Report

EXECUTIVE SUMMARY

December 15, 2005

Kentucky is not adequately investing in the programs and services that can propel our state forward, such as public schools, higher education, health care, and more. The chronic under-funding of these critical areas leaves Kentucky in a dire situation. At best, the state is standing still. At worst, we are slipping further behind as other states pass us up. Consider these facts:

Kentucky ranks 50th in per capita spending on education.
Kentuckians die at a rate that is 18 percent above the national average.
Nearly 44,000 Kentuckians experience homelessness in a year’s time.

Unfortunately, these and other poor quality of life rankings are part of a reality that we, as Kentuckians, have become accustomed to. It is a reality that is shaped by public policy decisions that starve services of the funds needed to move Kentucky forward. It is a reality that will only continue to deteriorate as long as a “revenue neutral” climate dominates the Kentucky legislature, steering Kentucky in the wrong direction.

This report examines the chronic under-funding of key areas of the state budget and explores what it will take to move ahead. The report documents as much as $1.8 billion in unmet needs. For instance:

Public schools need $337 million to bring our per pupil spending up to the average of surrounding states. It would take $982 million more annually to rank among the top ten states.
In the area of health care, $132 million is needed to cover the Medicaid shortfall; $132 million is needed for insurance for teachers and state employees; and at least $25 million is needed for mental health funding.
County jails housing state prisoners are in need of $100 million in order to avoid running deficits.

Raising the Bar: Kentucky’s Real Budget Report is not meant to be a comprehensive analysis of the state budget. It is, however, an important collection of evidence that we are not adequately investing in the programs and services that can move Kentucky forward. The report includes three primary sections:

• Introduction: This section examines the tax and budget policy decisions that have led to the chronic under-funding of programs and services.

• Examination of Budget Areas: The report examines key areas of the state budget. It provides evidence of under-funding as well as an estimate of the level of funding needed to adequately invest in the area.

• Conclusion: This section offers tangible policy options for moving Kentucky forward.

The Kentucky Economic Justice Alliance believes that Kentucky can do better. But creating the kind of state we envision will not be easy. It requires a thoughtful approach, new ideas, and leadership bound with the courage to make tough choices.

The time has come for state elected officials and the public to look at where we are headed as a state if we continue down the current path. It is time to create a better future for Kentucky. To put our state on the path to prosperity, we must invest today.

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Raising The Bar Selected Findings

Raising The Bar Press Room

Raising The Bar PDF of Full Report