Kentucky Club for Growth
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July 27, 2009

Spending Cuts? Certainly You Mean After You Increase OUR Budget?

So say health advocates who are seemingly oblivious to budget reductions in the rest of the state.

When Governor Beshear put forward a plan to address the 2010 budget, he said he addressed a shortfall of almost $400 million by freeing up general fund dollars from Medicaid that were being replaced by federal spendulus funds. By doing this, he was able to keep health spending constant while only reducing overall spending by $200 million. The end result was no proposed tax increase, no cuts in Medicaid, and a balanced budget.

This weekend, health advocates complained about this plan, saying they expected spending increases while the rest of the government was cut. Seriously:

"They had the perfect opportunity to take that money and shore up a lot of family-support programs that have been cut and cut and now are going to be cut again,'' said Cathy Allgood Murphy, an advocate with AARP of Kentucky. "It seems like the children and the elderly of this state are being left in limbo once again."

"I'm just absolutely stunned at the insensitivity," said Jim Kimbrough, chairman of a coalition called ARMS -- Advocates for Reforming Medicaid Services. "In my opinion that money should have gone to programs that are state-funded and serve large numbers of people at low costs in their homes."

Bart Baldwin, president of Children's Alliance, a group of private, mostly non-profit agencies that provide residential centers, foster care and other services for abused and neglected children, said funding for such care already has been slashed and many services eliminated. Shifting the Medicaid money out of the cabinet is "disappointing," he said. "In my opinion, all $383 million should have stayed in the cabinet."

Many of these groups receive public support in various forms. Paging John Cheves...

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06/23/09 : Session Could Finish Tonight; KEY VOTES

06/22/09 : KEY VOTE: HB 1

03/11/09 : Key Vote: HB 236 - Taxing IPTV

03/09/09 : Key Vote: HB 102 - Tolls

03/09/09 : Key Vote: HB 374 - Gas Tax Hike

03/03/09 : Key Votes: Some Good Legislation

03/03/09 : Key Votes: Driving Businesses Out of Kentucky

Drees: Raise gas tax to fund bridge - Pat Crowley, NKY.com

Ky. House nears tax vote - Pat Crowley, NKy.com


Donor records might have similarities - Lexington Herald-Leader

Club for Growth launches in Oregon

The Kentucky Club for Growth is proud to announce its 2007 scorecard rating members of the Kentucky General Assembly on fiscal issues.

How did your legislators do?


Club for Growth eyes spending - by Patrick Crowley, The Enquirer

Political group taking on state - by Stephenie Steitzer, Kentucky Post


Ky. jobless rate hits 11 percent - Courier-Journal...

The Governor's Budget Proposal
This is a reposting of the first article of email update sent out earlier today.  If you don't receive them, you may want to sign up.Here's the Governor's proposal:$147.1 million in spending cuts $81.5 million from a 70-cent cigarette tax...

$373 Million in Cuts
Governor Beshear has told agencies to plan for 4% budget cuts, suggesting that he's either expecting to raise taxes, or not expecting the $456 million shortfall to materialize.  4% of FY 2009 appropriated spending is only $373 million....

Governor Announces Administration Exploring Cuts, Taxes
Governor Steve Beshear announced that he is expecting a $294 million budget shortfall and is going to gauge public reaction before making a specific proposal to address it in December.  Cuts and taxes are on the table.Waiting until December is...

Strapped
The media is so sure there's a revenue problem, that it's hard to even fathom that the reality is that state revenue is increasing.

Business Tax Climate
We're #34 according to the Tax Foundation's 2009 State Business Tax Climate Index.

Financial Troubles
"The Negative Outlook reflects plans to continue to deplete fund balances and virtually drain the budget reserve trust in the current biennium. Further, Fitch remains concerned about the weakened pension funding levels and the commonwealth's rising debt position as an additional $1.65 billion in debt has been authorized for the biennium."

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