Economy

About 7,000 civilian workers at Fort Knox will be affected if federal cuts in defense spending take effect next Friday.

The News-Enterprise reports the workers would be furloughed one day each week for up to 22 weeks and lose about 20 percent of their pay.

Derek Avey, a civilian Fort Knox Garrison employee, says his family has made plans just in case.

"We'll make car payments and mortgage payments and those things, but going out to eat or catching a movie we may not do as often as we used to," the Elizabethtown resident said.

Stumbo: No Kentucky Tax Overhaul Coming This Session

Feb 19, 2013

Kentucky House Speaker Greg Stumbo says he doesn't expect a tax reform package to be brought up for a vote in the current legislative session.

Stumbo told reporters Tuesday that such a package doesn't have the 60 votes necessary to pass in the House.

A special commission appointed by the governor proposed reforms that could generate about $690 million a year in additional revenue.

Stumbo said one of the proposals made by the commission could surface in days ahead as a method of shoring up Kentucky's weakening pension system for government retirees. That proposal calls for raising the cigarette tax from 60 cents to $1 a pack, which could generate $100 million for the pension system.

Daviess County Lawmaker Wants to Cap Kentucky's Debt

Feb 15, 2013
Kentucky LRC

Legislation to bar state General Fund debt from exceeding 6% has been approved by the full Senate. Republican Senator Joe Bowen of Owensboro has been pushing the measure since last year when a similar measure passed the Senate but died in the House.

Bowen said Kentucky now has $6.3 billion in debt and that, he says, translates to $14,589 in debt for every man, woman and child in Kentucky.

Bowen said lawmakers need to do the right thing by putting a limit on the legislature's credit card. The bill now goes to the House where it faces a shaky future.

Despite the end of the economic recession and a growth in state revenue, Kentucky’s budget will remain tight. Former Budget Director, now Cabinet Secretary Mary Lassiter will address a joint House and Senate budget committee Tuesday.

She is expected to say state programs and agencies should not expect cuts in recent years to be restored in the next State budget.  Lassiter tells the Courier-Journal, “There’s no money for anything.” 

Lassiter says any new revenue in the state budget passed in 2014 budget will be consumed by additional spending required for pensions, Medicaid, and replacing one-time funds being spent on recurring needs in the current budget.  She declined to say if the tight long-term revenue outlook will also be the theme of the State of the Commonwealth address Gov. Steve Beshear is to deliver Wednesday night.

A recently-released poll shows that a majority of Kentuckians support expanded gambling.

In the Courier-Journal Bluegrass Poll, 60 percent of those polled said they support expansion. For the first time, a majority Eastern Kentucky resident support gambling. 

The support is for a so-called clean gambling bill, which would not include any protections for horse racing tracks.

That's the approach Governor Steve Beshear is planning for his next gambling push. But opponents of gambling say any potential bill will fail because supporters can’t choose a single strategy. Also, only one track, Churchill Downs, has endorsed Beshear's plan.

A new report by the Institute on Taxation and Economic Policy shows a big gap between Kentucky’s income levels on who pays taxes.

The report says Kentucky’s top 1 percent income bracket pays roughly 5 percent of the state’s income, while the bottom 20 percent pays 9 percent.

Middle income levels are saddled with a higher percent, the report said.

Jason Bailey, director of the Kentucky Center for Economic Policy, says the numbers show tax reform needs to happen quickly in Kentucky to better balance the burdens.

“This is one of the big issues that tax reform needs to address, the issue of the fairness of the tax system and the fact that there is inequity in who pays,” he said.

Lawmakers are likely to put off taking up recommendations by the state’s latest tax reform commission until a special session later this year.

Claiming it committed fraud, Kentucky Attorney General Jack Conway has filed a suit against a mortgage company.

Mortgage Electronic Registration Systems, or MERS, provides a marketplace for banks to trade mortgages and mortgage-backed securities.

Conway says it was set up by banks to avoid the fees that must be paid when mortgages are sold and to hide the true owners of those mortgages.

Conway's suit alleges MERS did not pay the proper fees in Kentucky. He's also suing under the Consumer Protection Act, because MERS foreclosed on many homes.

“About 300,000 mortgages in Kentucky are MERS mortgages right now," Conway said. "We are able to fine up to $2,000 per violation of the Kentucky Consumer Protection Act. We have that avenue of damages. And we also have the avenue to go after the recording fees that have been dodged as a result of this mortgage transfer scheme.”

New York, Delaware and Massachusetts have also filed suit against MERS.

Proponents of a local option sales tax have gained big ally in their legislative fight: Gov. Steve Beshear.

The local option sales tax would allow cities to levy an additional tax on top of the state’s current six percent sales tax for specific projects, if local voters approved the new tax.

Louisville Mayor Greg Fischer and Lexington Mayor Jim Gray are the chief advocates pushing the idea, arguing their cities would use the extra revenue for infrastructure projects.

Speaking on Wednesday to the Louisville Chamber of Commerce, Beshear says he’s all for the idea.

“Well you know politicians are famous for being on both sides of an issue so let me say this… I’m for it,” Beshear says.

To go into effect, lawmakers would have to amend the state constitution and then statewide voters would have to approve the amendment.

Understanding that veterans have a higher unemployment rate than the population as a whole, Kentucky Agriculture Commissioner James Comer is launching two programs to help veterans find work.  The Homegrown by Heroes initiative will place a label on food items produced by Kentucky veterans. 

It's like the Kentucky Proud symbol, but includes a flag in the background and a veteran saluting.

"We've been getting calls from many other states and this is something I believe will be a nation model as a way to help market farm products by our military veterans," Comer remarked at a news conference Tuesday at the Boone National Guard Center in Frankfort..

Comer is launching another program called Kentucky Proud Jobs for Vets.  The initiative will maintain a database of farmers and agri-businesses looking for workers.  The database will be shared with military support groups like USA Cares.  Comer says many people like hiring veterans because of their strong work ethic and service to the country.

The state Attorney General's Office says Friday is the last day for Kentuckians to file a claim to receive a payment under the national mortgage settlement.  Thousands of borrowers who lost their homes between 2008 and 2011 may be eligible to receive a payment.

The nation's five largest mortgage servicers agreed to the settlement with the federal government and 49 state attorneys general last year. 

"Basically this settlement settles claims by the attorneys general that during the housing crisis and foreclosure crisis in the United States, these banks had allegedly engaged in fraudulent behavior which included robo signing documents that it filed with the court," said Allison Martin, a spokeswman for the Kentucky Attorney General's Office.

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