Commonwealth Policy Center

Kentucky’s new fiscal year has begun with slower-than-expected revenue growth. July tax receipts fell compared to last year, with declines in sales and income taxes. While one month doesn’t determine the year, the trend highlights potential budget challenges ahead. State leaders will need to watch spending carefully, especially as demands on education, infrastructure, and healthcare continue to grow. Another aspect of this conversation is the reality that our government is involved in too many areas in general. Government is the least efficient mechanism for services and  it generally spends too much money. One solution is for state government to step away from areas that local government and families can better take care of and address. As it is, Kentucky’s biannual budget is $131 billion.