Kentucky Club for Growth
fighting and winning for economic freedom

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June 28, 2010

The Dangers of Expecting Gifts

One of the tricks our legislators used to balance the recent budget was an assumption that the federal government would find an additional few hundred million to give to the state's Medicaid program.

The federal spending bill has been delayed passage in Washington as the US Congress struggles to figure out how to pay for the massive new spending initiative/transfer to states.

Governor Beshear has no empathy for such questions about how can taxpayers possibly afford the new spending, however. He wants the gift from taxpayers and he wants it now!

Gov. Steve Beshear says the state could come up nearly $240 million short early next year if a federal spending bill defeated by a Senate Republican filibuster doesn't pass.

...

Beshear said that having to re-balance the budget to offset the loss of nearly $240 million would be a "horrendous" task. He said virtually every state program would face significant reductions.

Some out there in Kentucky's blogisphere are actually blaming Congress because of Kentucky's obviously faulty assumption that this spending was preordained. Instead, Congress is pursuing a bill that creates over $100 billion in additional deficit spending (as well as $40 million or so in new taxes), despite passing PAYGO rules and making other overtures to give the appearance of a commitment to reducing the deficit.

But Beshear doesn't care how the ransom is collected, so long as he gets his cash as doesn't have to face a 'horrendous' task.

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06/01/10 : The 2009-2010 Scorecard

03/24/10 : Bills in Frankfort Today - March 24, 2010

03/23/10 : Bills in Frankfort Today - March 23, 2010

03/18/10 : Bills in Frankfort Today - March 18, 2010

03/17/10 : Bills in Frankfort Today - March 17, 2010

03/16/10 : Bills in Frankfort Today - March 16, 2010

03/15/10 : Frankfort Today - March 15, 2010

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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