By Bill Huff
January 2, 2011
1994 Kentucky General Assemblies' political leaders acted irresponsibly. On the heels of 1990 K.E.R.A.passage adding $1 billion of new taxes, in 1994 Long Term Policy Research Center published results of study for General Assembly revealing 1994 average growth rate of state expenses was 6 percent while average growth rate of state tax resources was 5.3 percent.
Legislative leaders were warned in 1994 if nothing done by 2004---with everything remaining the same---state expenses would exceed state revenues by 12 percent.
Kentucky General Assembly leaders disregarded "warning" cutting 1999 state taxes without cutting state expenses and continued "credit card mentality" spending.
Governor Beshear’s last executive budget sought to meet required obligations and commitments that did not include rollbacks to both largest and highest priorty areas of spending: 2010-2012 executive budget executive summary, p.1, Budget in Brief by Mary E. Lassiter
Education of Kentucky’s children
Health care for the most needy
postsecondary education,
Public safety
Economic development.
This budget was one legislature rubber stamped to keep from closing down state government.
Legislative body proved lack of leadership in crunch financial times facing $1.9 billion defict from their past irresponsible financial behaviors!
If they went home in 1994 state would not be in deficit in 2010! And one of'em is running to be Governor in 2011 as is current Governor!
Registered voters have a choice since another gubernatorial candidate is running, currently unknown by most voters. Voters know Williams or Beshear's records---bipartisan leadership with no plans to tackle any kind of reforms! Kentucky must vote in a Governor who is a bi-partisan leader who'll tackle and solve Kentucky's current financial crisis!
Kentucky public workers are on furloughs with very few pay cuts in place, while
local governments have shed thousands of jobs. Local govenrments can't survive with a deficit riddled state. Therefore, if Ky's next Governor is partisan and has no idea about reforming Kentucky's broken budgetary process, then many more public workers will be facing bleak economic future!
To balance state's budget a leader must eliminate an estimated $950 million in 2010; i.e., 2,000 non-merit workers making > $80,000 per year + $350,000,000 of state tax expenditures along with $500,000,000 million of corporate tax shelters eliminated, altered, or reduced! In addition, all Kentucky motor vehicle tax evasion---estimated @$300,000,00---whereby Ky owners' titling & registration results in their circumvention of paying state's usage and property taxes must be collected.
Elimination of truck weight-distance tax ($80 million) combined with motor fuels tax and truck registration fees would solve existing unequalized tax burden among Ky truckers. Also, reducing trucking industry tax load would invite trucking industry to bring high paying trucking jobs to Kentucky.
In some states' pension costs are crowding out spending for parks, public schools and state universities! Some states could face insolvency; i.e., up to now the difference between public and provate corporation---insolvency.
A non-partisan leader would look at the unofficial accounting below that appears public servants non-merit pay exceeds pay of county residents:(SALARIES ESTIMATED)
COUNTY POP. HHI PVA X HHI SUPER TEACHER
Bullitt.... 64909 ...49861... 120799... 2.4 125000.... 49655.81
Daviess.... 92540 ...42586... 121805... 2.9 152774 49353.01
Jefferson..699017 ...43677... 128124... 2.9 260000 54150.41
Knott...... 17614 ...27999... 95472... 3.4 97062 51336.8
Letcher.... 24843 ...29415... 101792... 3.5 104871 49019.45
Mason...... 16815 ...38035... 95472... 2.5 131913 49182.85
Nelson..... 39635 ...46605... 112444... 2.4 113356 49272.13
Perry...... 29492 ...30089... 108111... 3.6 104215 49082.58
Pike....... 67495 ...32382... 124265... 3.8 109041 49260.52
Finance Cabinet's PVA projected 2009-10 budget slated to spend $12,018,575 millions for 120 PVAs + $41,000,000 millions on estimated deputy PVAs to administer property tax. As one can see estimated top 10 paid PVA's in state could be making average of $120,000 annually.
Comparing county average household income TO 120 PVA non-merit pay for 09-10 averages PVA's non-merit pay 2 1/4 times more than average county HH income! Such pay is bad economics and politics, from Frankfort point-of-view.
