Gov's Got A Brand New "Stimulus"
So, the Governor is sugar-coating increasing the state's incredible debt by calling it a "stimulus".
The Bluegrass Institute for Public Policy Solutions comments:
Gov. Steve Beshear issued a statement Thursday night expressing his pleasure that Kentucky is about to pick up another $400 million in debt as part of the new road plan.
Not to worry, though. Our "financial experts" are "comfortable."
Beshear said:
This plan also creates a state stimulus effort through the use of a $400 million bond issue. This newly available debt capacity, added to the federal stimulus money, allows us to invest in projects with long-term benefits for the commonwealth. Our financial experts have carefully analyzed this bond issue and are comfortable with the debt capacity limits.
Here's a little chart of approximate debt service (the amount of cash that must be appropriated to support to debt) in the last five budgets:
| Budget | Debt Service | % Increase |
| 2001-2002 | $710 million | |
| 2003-2004 | $760 million | 7% |
| 2005-2006 | $780 million | 2% |
| 2007-2008 | $900 million | 16% |
| 2009-2010 | $1.1 billion | 22% |
Source: 2008-2010 Budget of the Commonwealth, Budget in Brief
You can see what, exactly, is being "stimulated."
