The staff at the Kentucky Center for Economic Policy worked way into the night to produce their initial analysis of Governor Beshear’s proposed budget. There will be more shared at their mid-winter conference this Friday (of which Forward Kentucky is one of the sponsors), but here is the initial article by Jason Bailey, their director. Be sure to follow the link and read the entire article.
Governor’s Budget Makes Modest Increases to Education Funding and Selected Other Areas, Raises Small Amount of New Revenue
Governor Beshear’s budget proposal to the General Assembly contains small increases in spending for P-12 education and provides funding for other targeted areas including relief for quasi-governmental organizations facing spiking pension costs and money to hire more social workers. The plan stops the overall trend of budget reductions Kentucky has been experiencing, though in many areas its modest funding levels are not enough to prevent continued erosion due to inflation, which is projected at approximately 2.5% a year according to the Congressional Budget Office.
The governor proposes to pay for additional spending by raising $148 million in new revenue over the biennium from tobacco taxes, sports betting and a higher limited liability entity fee. The budget uses $288 million of one-time fund transfers and $64 million from other new resources.
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