Economy

Kentucky Lt. Governor Jerry Abramson is still fighting for the legislature to take recommendations from his Blue Ribbon Commission on Tax Reform.

Abramson says he has delivered 59 speeches to encourage constituents to lobby their representatives and senators to take up the issue.

The commission’s report includes 54 suggestions to reform the state tax code and generate an estimated $660-million annually. “The Governor’s working with the leadership to find areas to find common ground to agree on, said Abramson." "I’m out on the trail trying to gin up the involvement of the average guy and gal in a community and I’m asking them to call their legislator, go see their legislator and tell them that they will support that kind of vote."

Abramson says lawmakers are frightened about voting on taxes especially in an election year. He wouldn’t offer odds on whether or not the legislature will take up the issue in January.  The Commonwealth has cut more than $1.6 billion in the last six years.

Abramson has two years remaining as Lt. Governor, but this is his last feasible opportunity to push for tax reform.  Passing tax reform is procedurally less challenging during the upcoming budget session than garnering a two-thirds vote in an off budget year.

A Kentucky nonprofit says a state earned income tax credit would help working families.

Kentucky Youth Advocates released an issue brief  that says the credit would piggyback onto the federal earned income credit. That could yield up to $337 per applicant, with little to no administrative cost to state government.

The proposal could cost up to $134 million per year. But KYA Executive Director Terry Brooks says it would help pay for itself by putting money back into local economies.

“We know that families who get earned income credits are not going to take that refund and put it in their off-shore account. Instead, they’re going to be spending money at the local hardware store, at the local car repair shop, at the appliance store. They’re going to be taking their kids to the department store to buy them clothes for school.

Neither Democratic nor Republican leadership is voicing support for comprehensive tax reform in the next year. But the earned income tax credit has bipartisan support on the federal level, and Brooks says the measure would likely enjoy the same in state government.

Since the beginning of the 1990's, the percentage of Kentucky's population comprised of immigrants has soared by more than 300%. While their overall number is still small, WKU economics professor Dr. Brian Strow says their effect is being felt and it's a net plus.

Strow's study shows immigrants locally have a higher employment percentage than native born people and a higher mean income. There's also a higher number who are self-employed.

Joe Corcoran spoke with Dr. Strow about the benefits of immigrant entrepreneurs.

The debate over same-sex marriage is one that has heated up this year, with the Supreme Court striking down the Defense of Marriage Act (DOMA), which blocked the federal government from recognizing gay marriage. Seven states in 2013 saw same sex marriage legalized through court order, laws passed by state legislatures, or through popular vote.

WKU Economics Professor Susane Leguizamon has conducted  some research about an aspect of same sex marriage that most people probably haven't thought about: namely, what would the impact of nationwide gay marriage be on federal and state income tax receipts?

The research conducted by Prof. Leguizamon and her two co-authors finds 23 state would see a new fiscal benefit from same sex marriage legalization, while 21 would see a decline. Seven states wouldn't be impacted in this way since they don't have income taxes.

You can request a copy of the research by emailing Prof. Leguizamon here.

Here are some excerpts from our conversation with Prof. Leguizamon:

How would same-sex marriage legalization impact the income tax revenues of the three states in our listening area: Kentucky, Tennessee, and Indiana?

Economists See Kentucky Heading for $10 Billion Milestone

Oct 12, 2013

A panel of state economists is predicting that modest growth over the next two years will push Kentucky's annual General Fund revenue above $10 billion for the first time in 2016.

The economists, serving on the Consensus Forecasting Group that advises government officials on revenue trends, agreed Friday that the state is continuing a slow rebound from economic recession.

Emil Moffatt

  Update 6:35 p.m.

Governor Beshear’s Communications Director Kerri Richardson says Beshear needs more information regarding future federal reimbursement and the level at which the facilities could be reopened before deciding on reopening federal parks like Mammoth Cave and Land Between the Lakes.

Original Post

There’s no word yet from Governor Steve Beshear regarding whether he will use state funds to reopen national parks that have been closed due to the government shutdown.

The Obama administration says it will allow states to use their own money to reopen some national parks.

The Governors of Arizona, Colorado, South Dakota, and Utah have asked for authority to reopen national parks within their borders because of the economic impacts caused by the park closures. The closing of parks in Kentucky, such as Mammoth Cave National Park, has sent workers home and is a drag on local economies that benefit from tourists who visit the park and other nearby attractions.

Interior Secretary Sally Jewell said in a letter Thursday to the four governors that the government will consider offers to pay for park operations, but will not surrender control of national parks to the states.

New data from the U.S. Census Bureau show Kentucky with one of the highest poverty rates in the U.S. The figures are part of the  bureau’s latest  American Community Survey which was released Thursday.

Kentucky had the fifth-highest percentage of residents living in poverty in 2012, behind only Mississippi, New Mexico, Louisiana, and Arkansas.  A little more than  823,000 Kentuckians, or 19.4 percent of the state’s population, suffer through poverty. That represents a 0.3 percent increase in the commonwealth’s poverty rate since 2011.

By comparison, Tennessee’s poverty rate stood at 17.9 percent in 2012, an improvement of 0.4 percent over 2011. The poverty rate in Indiana was 15.6 percent, which was also an improvement of 0.4 percent.

There was at least one bit of good news for the Bluegrass State in the latest survey. Kentucky is one of just three states to see a statistically significant increase in the rate of private health insurance coverage from 2010 to 2012.

You can see a report containing the latest American Community Survey data on poverty in the U.S here.

The state unemployment rate declined slightly in August despite significant job losses in some key labor market sectors.

The Kentucky Office of Employment and Training reported Thursday that the rate fell to 8.4 percent, down from 8.5 percent in July.

State economist Manoj Shanker said the trade, transportation and utilities sector shed 2,100 jobs in August. The financial services sector lost 700 jobs. The government sector fell by 500 positions. The information sector, which includes newspapers, lost another 500 workers. And the mining and logging sector declined by another 100.

Kevin Willis

Bowling Green Mayor Bruce Wilkerson says that while it feels like "slogging through mud", the area economy is slowly starting to turn around.

However, Wilkerson told WKU Public Radio the city is still subject to manufacturing job losses that can have a big impact on its labor force.

"In a community our size, when something like Eagle Industries shuts down and puts 275 people out of work, we feel that hit. Fruit of the Loom has decided to reduce its workforce by close to 100 this year, and those are 100 good-paying jobs that are very meaningful to our economy. So when they're gone, we notice it," Wilkerson said.

Recent data compiled by the Kentucky Education and Workforce Development Cabinet show the Bowling Green Metropolitan Statistical Area with a seasonally unadjusted unemployment rate of 7.5 percent for the month of July, which is two-tenths of a percentage point below the national jobless figure.

Kentucky Reports County Jobless Rates

Aug 23, 2013

Kentucky officials say unemployment rates fell in 72 of the state's counties between July 2012 and last month. They say the jobless rate rose in 42 counties and stayed the same in six.

The figures were released by the Kentucky Office of Employment and Training.

The report says Woodford County had the state's lowest jobless rate at 5.8%. It was followed by Fayette County at 6.4%, Oldham County at 6.5% and Scott County at 6.6%.

Harlan County had the state's highest unemployment rate at 17.2%. Next was Leslie County at 16.9%, followed by Magoffin County 16.8% and Letcher County at 16.3%.

The statewide unemployment rate was 8.5% last month.

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