Kentucky Club for Growth
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May 3, 2011

State Budget Surplus Good News for Kentucky Economy

At the end of every fiscal year in June, the state always runs a small surplus. No matter the economic circumstances or budget cuts, because the state is constitutionally required to balance the budget, the state will end up with a few million more at the end of the year. This year is shaping up to have a little more than normal.

The state is projecting a $64 million surplus for the fiscal year that ends June 30, according to a report released Monday by the state budget office.

The state's revenues -- taxes and fees -- are growing faster than the original estimate that the state uses to craft its two-year budget. .But state officials were cautious Monday, saying that any surplus money will first go to pay for emergencies, such as the clean up costs associated with last week's storms that ravaged much of Western Kentucky.

In 2010, the legislature also deemed that any excess funds not used for emergencies would go into the state's rainy day fund, which has been depleted as the state's revenues took a nose dive over the past three years.

An additional $31 million surplus is from coal severance funds, which are coal taxes specifically designated to return to coal counties, but are often inefficiently used by local governments rather than invested in education and infrastructure.

The slightly more economically important news is that the road fund will also run a surplus.

The state's road fund -- which is funded through a host of other gasoline-related taxes and fees and is separate from the state's general fund -- is also expected to have a surplus of $48.9 million.

The fact that Kentuckians are consuming more gas and purchasing more cars than expected are certainly positive economic indicators.

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03/29/12 : RS12 HB 499 - KEY VOTE - Insurance Premium Tax Hike

03/29/12 : Lip Service to Kentucky's Debt Problem

03/19/12 : RS12 HB 202 - KEY VOTE - A Health Care Mandate Without Precedent

03/15/12 : RS12 SB 10 - KEY VOTE - A Constitutional Amendment to Guarantee Legislative Oversight of Regulations

03/15/12 : RS12 SB 4 - KEY VOTE - Improving Regulatory Accountability

03/12/12 : Clarifying Redistricting, Maybe

03/08/12 : House Passes Budget Quickly with Eight Percent Spending Increase

Lexington Herald Leader 5/10:

"Thayer, 44, responds by calling Hostetler "a little desperate." Thayer touts his conservative support from U.S. Sen. Rand Paul, R-Ky., the National Rifle Association, the pro-business Kentucky Club for Growth (which ranks him best among 38 state senators) and the anti-abortion Kentucky Right to Life."


Last weekend, the Kentucky Club for Growth's strong anti-tax stance was recognized in the Courier Journal.

But other political experts say they aren't convinced outside groups will want to get involved, especially with public polling showing Beshear with a double-digit lead and Williams' record of occasionally supporting tax increases failing to excite conservative groups such Club for Growth or the tea party-related FreedomWorks.

"They're adamant about the 'no tax' thing," said Jennifer Duffy, a senior editor with the non-partisan Cook Political Report.

We are adamant about the 'no tax' thing, and we will continue to be the taxpayer's advocate in Frankfort.


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?


House Passes Budget Quickly with Eight Percent Spending Increase
Yesterday, the Kentucky House passed a budget for FYs 2013-2014. While most of the legislative discussion centers on cuts, the General Fund budget totals $19.5 million which represents an 8% increase over FY 2011-2012. Even if you compare it only...

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The NFIB reports: For the fifth consecutive month, NFIB's monthly Small-Business Optimism Index fell, dropping 0.9 points in July--a larger decline than in each of the previous three months--and bringing the Index down to a disappointing 89.9. While the national...

Employment Trends and Rates
Unemployment in Kentucky inched downwards this month: Kentucky's unemployment rate fell to 10 percent in April, down from 10.2 percent a month earlier. The state added 3,800 jobs in the month, as "Kentucky's economy continued to show signs of improvement...

State Budget Surplus Good News for Kentucky Economy
At the end of every fiscal year in June, the state always runs a small surplus. No matter the economic circumstances or budget cuts, because the state is constitutionally required to balance the budget, the state will end up with...

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The KY Club for Growth seeks principled candidates who are committed to the following:

* Free market principles
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