Bill to Reduce State Debt Goes to the Full Kentucky Senate for a Third Time

Feb 20, 2015
Kentucky LRC

Legislation aimed at reducing Kentucky's debt is headed to the Senate floor. The measure seeks to lower overall debt over time. 

The bill limits general fund supported debt to 6 percent of general fund revenues. Sponsor Joe Bowen told budget committee members the state's current debt ratio is at 8.1 percent, including the state's participation in county courthouse construction borrowing. 

The Owensboro Republican used a well-known historical figure to further his argument.

"John Adams, one of our founding fathers said that there are only two ways to conquer and divide a nation," said Bowen. "One is by the sword and the other is by debt."

An annual report that describes the state’s financial outlook shows that Kentucky has once again gone deeper into debt. The report, when compared with past years, shows the state added more than $110 million in debt during the last fiscal year.