January 13, 200818 yr I agree there are other things the governor could cut before raising taxes, but I don't see a cigarette tax as a "tax hike". As less people smoke they'll have to find something else. Casinos could help some and so could cutting spending. It's going to have to be a combination of things. What else can the governor cut. Education and health care consume 80% of the budget? Unless we generate more revenue we have to cut education.
January 13, 200818 yr What else can the governor cut. Education and health care consume 80% of the budget? Unless we generate more revenue we have to cut education.The best way for Kentucky to generate more revenue is to cut tax rates and try to create a more favorable business climate in the state. That may require freezing expenditures or capping the rate of growth for some programs. IMO, threatening educational cuts shows that increasing taxes is the goal, not the remedy. In 2005, 69.5% of Kentucky's budget went for education and Medicaid. There is plenty of fat in Kentucky's budget and it is probably time to begin reducing the number of counties through mergers to cut expenses.
January 13, 200818 yr The best way for Kentucky to generate more revenue is to cut tax rates and try to create a more favorable business climate in the state. That may require freezing expenditures or capping the rate of growth for some programs. IMO, threatening educational cuts shows that increasing taxes is the goal, not the remedy. In 2005, 69.5% of Kentucky's budget went for education and Medicaid. There is plenty of fat in Kentucky's budget and it is probably time to begin reducing the number of counties through mergers to cut expenses. And because the cost of both of those things have gone up it is now 80%. Give me an area where you want to cut and I will jump on it. The economy for middle and poor americans has not improved with the bush tax cuts. People like to say the DOW is doing better, but what percentage of Americans are heavily invested in the stock market, I would say it is small. So the tax relief provided by supply side economics has not only hurt middle americans, it has hurt state budgets as well. Universities have had to increase tuition (tax increase) more SEEK money is going to cover costs of things that used to be covered by federal grants (tax increase) more money is spent by the state on medicare/medicaid b/c the federal government has given less (tax increase) - gas prices . . . can't really nail down the causes, but EXXON or Mobile one had record profits, money has not been put into the public employee retirement system b/c it was used to balance the budget so now there is a crisis. It is easy to say the government is bloated, but Beshear has already told every agency to cut %3 from this fiscal year, which ends July 1, so that is a %3 cut on half a budget. That is to meet the economic shortfall that is projected b/c of poor revenue. I thought more revenue was to be expected with the Bush tax cuts, how come we are expecting less this fiscal year than last? But the big question really is - what do you want to cut? Social workers who are trying to protect children Road repair (most of the money comes from road fund and not general fund anyway)
January 14, 200818 yr I'm the biggest progressive person I know but I hate to see taxes go up. However I think one of the things that could be cut is the size of the state government as far as employees. But then you get the problem of more people out of work. A cigarette tax makes sense to me. If and when casino gambling comes on the ballot I'll vote for it. And maybe something like a 1 cent sales tax might help as well.
January 14, 200818 yr Does not surprise me. Education is usually the first to be cut. Here is what the Courier-Journal has: http://datacenter.courier-journal.com/schools/kentucky/budget/cuts/ It tells you, by district, the proposed cut for each district.
January 14, 200818 yr Let me then go back to my original question Where do you cut????? Too many workers . . . Do you want to look at road repair crews? Jail employees? IT guys that keep the state computers running? Social Workers??? Custodians??? Receptionists that answer the phone so you can talk to a human??? It is easy to say it is bloated, but where you gonna cut? BTW - to the poster who said education is usually first . . . have you paid attention to the news at all, EVERY agency has allready been asked to cut 3%. Education has been the last, but it gets the big press b/c it has a bigger impact.
January 14, 200818 yr Have you looked at the cuts proposed? If each district is asked to cut 7% that is one thing, but if the SEEK amount is cut 7% and then the money re-distributed that is another. Hey, I am in a small district and 7% will devastate us . . . I do not support the cuts, but to suggest tax breaks to generate more money is silly. We need immediate revenue and the only way to do that is to raise taxes somewhere, but we have been taught so much that taxes are bad, that no one has the courage to do it.
January 14, 200818 yr And because the cost of both of those things have gone up it is now 80%. Give me an area where you want to cut and I will jump on it. The economy for middle and poor americans has not improved with the bush tax cuts. People like to say the DOW is doing better, but what percentage of Americans are heavily invested in the stock market, I would say it is small. So the tax relief provided by supply side economics has not only hurt middle americans, it has hurt state budgets as well. Universities have had to increase tuition (tax increase) more SEEK money is going to cover costs of things that used to be covered by federal grants (tax increase) more money is spent by the state on medicare/medicaid b/c the federal government has given less (tax increase) - gas prices . . . can't really nail down the causes, but EXXON or Mobile one had record profits, money has not been put into the public employee retirement system b/c it was used to balance the budget so now there is a crisis. It is easy to say the government is bloated, but Beshear has already told every agency to cut %3 from this fiscal year, which ends July 1, so that is a %3 cut on half a budget. That is to meet the economic shortfall that is projected b/c of poor revenue. I thought more revenue was to be expected with the Bush tax cuts, how come we are expecting less this fiscal year than last? But the big question really is - what do you want to cut? Social workers who are trying to protect children Road repair (most of the money comes from road fund and not general fund anyway) Democrats take power---->Democrats declare a crisis--->Democrats raise taxes. A simple formula that works almost every time. I would decimate or eliminate entire departments from the state government. I would slash the size of the Department of Education in Frankfort and other agencies by transferring as many services as possible to local jurisdictions. I would freeze all state salaries and spending at 2007 levels, or at least reduce the size of budgeted 2008 increases. If these cuts resulted in a surplus by the end of the year, I would slash tax rates for the 2009 fiscal year. Finally, as I said before, I would push for the merger of Kentucky's smaller counties into adjoining counties. This would cut expenses at both the state and local levels. Kentucky's periodic budget shortfalls is not caused by a lack of tax revenue. They are caused by the public's willingness to accept tax increases instead of demanding spending restraints. Bureaucrats are voters and politicians will always opt to raise taxes over terminating employees if they can avoid paying a political cost. Placing heavier tax burdens on smokers or levying higher taxes on stupidity through lotteries and casinos are a poor substitute for electing people willing to spend our money wisely.
January 14, 200818 yr I really am not in favor of higher taxes...Kentuckians are taxed to the nth degree. I don't have a problem with higher taxes on cigarettes, though. That's a commodity, and if higher taxes mean some people quit smoking, then maybe our health care costs will decrease. I just think we need to look everywhere else first for places to cut. To me, education should be the last resort. Come to think of it...everytime I go to the DMV, there are about 15 people either sitting or standing around doing nothing, while scores of people wait forever to renew their tags. Why not just eliminate those positions. I know I would feel alot better if I knew that my tax dollars were paying people who actually work, instead of quite a few who really aren't doing anything.
January 14, 200818 yr Democrats take power---->Democrats declare a crisis--->Democrats raise taxes. A simple formula that works almost every time. I would decimate or eliminate entire departments from the state government. I would slash the size of the Department of Education in Frankfort and other agencies by transferring as many services as possible to local jurisdictions. I would freeze all state salaries and spending at 2007 levels, or at least reduce the size of budgeted 2008 increases. If these cuts resulted in a surplus by the end of the year, I would slash tax rates for the 2009 fiscal year. Finally, as I said before, I would push for the merger of Kentucky's smaller counties into adjoining counties. This would cut expenses at both the state and local levels. Kentucky's periodic budget shortfalls is not caused by a lack of tax revenue. They are caused by the public's willingness to accept tax increases instead of demanding spending restraints. Bureaucrats are voters and politicians will always opt to raise taxes over terminating employees if they can avoid paying a political cost. Placing heavier tax burdens on smokers or levying higher taxes on stupidity through lotteries and casinos are a poor substitute for electing people willing to spend our money wisely. As to the bolded, I 100% agree. I absolutely think there are quite a few "ills" of Kentucky that could be resolved by consolidation of smaller counties.
January 14, 200818 yr As to the bolded, I 100% agree. I absolutely think there are quite a few "ills" of Kentucky that could be resolved by consolidation of smaller counties....and I agree that cuts in education spending at the local resort should be a last resort. I think that as long as voters accept politicians raising their taxes on some sub-population like smokers, drinkers, gamblers, people wealthier than themselves, etc., there is little incentive for them to think creatively about cutting expenditures. I take every proposed tax increase personally, as if it were squarely directed at my family.
January 14, 200818 yr The state that subsidzes tobacco heavily wants to increase a tax on its useage?
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