Economic Justice
August-06-2008
More cuts to education because of lack of revenue, leadership.
For more and more students, the answer is no, it isn't.
Without financial aid, Jonathan Curry describes his chance of attending the University of Kentucky in a single word. ”Impossible,“ said the senior from Henderson. ”I wouldn't be here at all.“
With the help of federal, state and UK scholarships, Curry is on schedule to graduate next spring.
Still, college has hardly been free from struggle. He works 15 to 20 hours a week taking tickets at Comedy Off Broadway, and donates blood plasma as often as twice a week.
”Sometimes I need groceries, and I have $5,“ he said.
His mother, Cynthia Curry, works two jobs and they still don't have enough to cover college bills. So on top of the $10,000 he has already borrowed, he expects to take out $16,000 more in loans this year.
”It's more and more debt,“ he said. ”There's something wrong somewhere.“
What's wrong is that the cost of a college education has mushroomed in Kentucky over the past decade.
And there's another blow to education. We posted earlier about JCTC's GED testing center closing, the only testing site in Jefferson County. Now, KET is cutting their televised and online college credit courses. Here's an excerpt from the short Herald Leader article:
And finally, according to a survey by the Kentucky School Boards Association, the budget cuts have caused 975 lost jobs in Kentucky's public school systems--a sweeping loss both for education, and of jobs. In Perry County, 48 teachers' aides have lost their jobs. Almost half of the 975 cut positions are cuts from teacher positions, which also means larger class sizes. The average class size in Somerset Independent, for example, moved up from 20 to 28. You can read about it this Courier-Journal article or this Herald-Leader articleThe reason is state budget cuts, according to a news release from KET. The program was funded by a grant from the Council on Postsecondary Education.
More than 140,000 students have earned college credits through the program over a span of nearly 30 years, according to KET.
When adjusted for inflation, the state's funding of K-12 education will decline by $172 million this fiscal year and $171 million next year, according to an analysis by the Council for Better Education.
Specifically, the state budget cut about $43 million from education programs, including a $14.7 million reduction in the main funding formula for school districts. Also hard hit were professional development and after-school tutoring programs.
Many school districts were forced to reduce staff because salaries make up the bulk of their budgets, said Jody Maggard, finance officer for Perry County schools in Eastern Kentucky. The district, which has 13 schools and about 4,000 students, did not rehire 48 teachers' aides.
“We regret that we had to do it but just like other districts, it was a ‘have to' situation,” Maggard said.
Too many "have-to" situations are affecting our ability to educate our children and ourselves and to protect our families and communities. If Governor Beshear come to your area soon on his listening tour, tell him what you think about our investments in education. Tell us what you think, too!
July-09-2008
Budget Cuts Affecting Access to Higher Education
A few articles of note
A Courier-Journal article about the possible closing of the local GED testing centerat JCTC due to budget cuts. Here's an excerpt:
Jefferson Community and Technical College plans to shut down its high school equivalency testing center -- the largest in the state -- at the end of the year, saying state funding cuts make it impossible to continue.
Closing the center -- which operates testing sites in Jefferson and surrounding counties -- means thousands of Louisville-area residents, many of them with limited resources, would have to travel to take the exam for a General Educational Development diploma, or GED. The nearest center is in Shelby County.
And with one in four working age adults in Kentucky lacking a high school diploma or GED, that's more bad news for a state trying to strengthen its economy by improving the education level of its workers.
And it's very bad news for all of the people in Jefferson County who are working for an education. The article highlights a single mother who's been studying for her GED, and who is worried about being able to access a testing site if the Louisville site closes.
Another article about the growing lack of access to higher ed in Kentucky from the Herald-Leader, Cost of college on lawmakers' minds. The article points out, "Tuition at Kentucky's public universities and community colleges has shot up an average of 12 percent a year over the last five years, which is about four times the rate of inflation and the growth of the state's median family income.
Here's another interesting excerpt:
The legislative subcommittee hopes to determine precisely what's causing the diminishing affordability of a college education.
Hmm. Did they notice those budget cuts that they delivered?
June-13-2008
Budget cuts prevent environmental agencies from enforcing the law
We received a note today from John Cleveland, a long-time KFTC member who lives in Letcher County. His story is yet another example of how state budget cuts are making it impossible for public agencies to fulfill their mission of protecting public health and the environment.
John writes that oil and gas inspectors have apparently been told to ignore aspects of the law they are charged to enforce. This is not surprising, since the budget proposed by Governor Steve Beshear and passed by the General Assembly slashed the budget for the Kentucky Department of Natural Resources by 21%! Here's John's letter:
I had a State Oil and Gas (O/G) inspector show up at my house today. He told me that the State is not enforcing state law that requires an oil/gas company to register all tanks that collect oil or brine that are located at gas wells. He told me that he was inspecting an area, when he discovered a new tank and well that had not been there in the past. He couldn't find any info in his records of this tank, so he took a gps point for the site, and checked on it when he got back to his office. He was unable to find info there either. He asked his supervisor about this, and his supervisor told him that since the state budget cutbacks over the last few years, that they weren't registering these tanks any more, because they didn't have the staff to do the paperwork or the inspections.
He told me that the unregistered tanks he's aware of are mostly owned by Chesapeake and Equitable Gas companies. State law requires oil/gas companies to register all tanks that hold brine or oil. That doesn't mean that they don't have to do it if they don't feel like it, the law states SHALL register! So obviously some of the oil/gas companies are no longer registering storage tanks and the state is not assuring that they do.
What if there is a leak, or some vandals shoot holes in one of these tanks. How long might it be before someone happens to come by and see toxic brine water or oil running in the stream? There has been a massive number of new wells in the last two years in eastern Kentucky, so this is a disaster that will happen, it's just a matter of when.
Wouldn't complying with the law and assuring an adequate number of inspectors, be the right thing to do? When does too much cutting the budget start to endanger the water, fish, wildlife or even human life? It appears to me that we have reached that point or gone past it. I call on Governor Beshear to look at the long-term costs of cutting enforcement in oil, gas and mining, and fix this problem.
June-04-2008
In the News: calls for a budget that works for Kentucky
A Letter to the Editor and an article worth noting, both underscoring the irresponsibility of the current budget. Below is a member's call for tax reform that offers access to higher ed, and an article that shows how chronic underfunding of the Cabinent of Health and Family Services has compromised our ability to protect some of the state's most vulnerable.
Amar Shah's Letter to the Editor in yesterday's Courier-Journal. Shah is among the U of L students building support for affordable higher education.

Taxes and tuition
"Crit Luallen's opinion piece on the exorbitant costs of higher education in Kentucky could not be any more relevant. As she notes, Kentucky is among the least educated states in the nation and desperately must catch up. Luallen reports that tuition at our four-year institutions have risen by 96 percent over the past six years, forcing a massive decrease in enrollment. These tuition increases can be attributed to, at least in part, a refusal of our state government to raise the revenue badly needed to support higher education.
Luallen's figures demonstrate that the shortchanging of public higher education in Kentucky has been an ongoing trend, but our current governor and legislature must do everything in their power to reverse it. Simply put, raising revenue means raising taxes.
In this state, the wealthiest pay a smaller proportion of their income in taxes than do those who are merely eking out a living. In the end, it is the students who pay, in the form of sky-high tuition, as universities look for ways to shore up their budgets.
As a student at the University of Louisville, I challenge the readers of this newspaper to quit harking to the fear-mongering of anti-tax rhetoric and admit that the only way to an educated Kentucky is through economic justice and tax reform. Only when the state government has the guts to raise taxes on the wealthy will our public universities secure the funding necessary to ensure that higher education is affordable for all."
AMAR SHAH
Student
University of Louisville
Louisville 40217
And here is an article in the Herald-Leader about the effects of chronically underfunding the state wards, which care for the 2500 Kentucky adults who are unable to care for themselves. Notice the incredible caseloads pointed out (and bolded) in the excerpt below:
Luallen said in an interview that the problems are not indicative of the quality of the employees hired by the state to handle guardianship cases.
'These are committed, caring workers who are doing the best they can.' The problem, she said, is that there are too few of them.
A national study issued in 2005 recommended a ratio of one worker per 20 wards. As of last year, Kentucky averaged one case manager for each 58 wards, the audit found. Since then, caseloads have increased to an average of one worker per 61 wards.
All this, and the Senate President isn't convinced that anyone is being cut to the bone. These pieces, along with all the other calls for strengthening our investments our commonwealth, are cases for more inclusive, more participatory government, with elected officials who truly represent Kentuckians. What are your thoughts?
May-29-2008
Inadequate budget shutting door to more people, but the Senate gets a new lounge
The Department of Public Advocacy, which houses Kentucky's public defenders, has responded to its shoestring budget by making a decision to refuse cases as of July 1. That's when the agency's $2.3 million budget cut provided by the General Assembly kicks in. They will no longer take domestic violence cases, child support cases, truancy cases, cases dealing with treatment for the mentally ill, and other family court cases.
In an article in The Courier-Journal, Ernie Lewis, who oversees the department and who has been calling attention to the need for more adequate funding, explains that this was the only option for public defenders, given the increase in caseloads and the chronic lack of adequate funding: "Kentucky has to decide, do we want to continue to arrest people and
charge them with crimes? If we do, we have to provide counsel for them. It's
as simple as that."
This news follows the heels of the closing of a mental health facility in Louisville, of tuition increases that compromise access to college across the state, and of school lunch assistance being taken from children who need it — all because of this "tightening the belt" budget.
Meanwhile, Senate President David Williams is defending the renovations to the Senate offices — kitchens for the caucus rooms, a senate
lounge, etc. When asked about the need for these renovations in the
face of such a dire budget, "Williams denied that state
budget cuts are inflicting real pain.
Regarding the Health and Family Services Cabinet and the
Justice Cabinet, both of which are reporting sweeping program cuts, he
said, 'You’re talking about people who you couldn’t print enough
money
for. I don’t accept the premise that they’re cutting anything to the
bone.'"
May-12-2008
KentuckyElection.org is online
For the last several election cycles, KFTC has made an effort to contact the candidates in areas where we have a strong membership and ask them questions about the issues that are important to us. We want to move the debate about candidates beyond their superficial
differences and instead focus on the issues that affect us in our daily
lives. We've asked questions about mountaintop removal mining, energy issues, immigration, poverty, health care, and more. Hopefully these surveys will educate and empower our members to make informed choices at the polls.
With this year's primary election coming up next Tuesday, May 20th, we've been working hard to compile responses from a variety of candidates in federal, state, and local races. Last week we mailed our Voter Guides to all of our members and have begun to hand them out at tabling events around the state, but we've also put them online for anyone to read. You can find it at www.KentuckyElection.org.
So please take some time to familiarize yourself with the candidates, and then spread the word about the website with your friends and family.
April-04-2008
KFTC Members Speak Out Against Irresponsible and Inadequate Budget
The state budget has breezed through the Senate (34-3), and slithered through the House (74-21). It now goes to the Governor. The Governor said earlier today that he might have to call a special session if Kentucky's revenue situation continues to worsen (receipts were lower than projected in March).
KFTC members are speaking out against the budget that passed through the Senate and the House, and that now goes to the governor for approval or a veto (or line-item veto).
Steve Boyce, of Madison County, said that the budget sends a message about the legislature, and about the direction that lawmakers are taking the state. "With this budget," Steve said, "the legislature is saying, 'We can’t get ourselves together enough to say that education, the quality of life, and health care are priorities.'"
"I heard one of the legislators on the radio saying that there’s pain in this budget but that in these hard times, with the national economic downturn, this budget is the best we can do, blaming the economy for the entirety of our revenue problem. That’s a cop-out. This budget isn’t just hard times. If that legislator doesn’t know that, he is uninformed at a dangerous level. Kentucky’s structural imbalance is well documented. We’ve been aware, and many legislators have been aware, that this is the result of a long-term structural deficit and the legislature’s lack of will to fix the problem. At some point, that structural deficit has to be dealt with.”
K. A. Owens, a Jefferson County member and KFTC's vice-chair, called this budget "the sad result of a completely failed process." "When [Rep. Harry] Moberly calls it 'a diabolical deal,' he’s on the right track. The budget is a tragedy. Now is the time for us to plan,rebuild and reorganize. We need to get better legislators. The fact that some of the good legislators, like Rep. [Jim] Wayne and Rep. Moberly, worked hard to support a budget that would have been effective in putting the state on a sound footing gives us hope for the future. The fact that some of the good legislators voted against the bad budget, shows that people of character still exist in Frankfort. We need to get more legislators of good character in Frankfort to support them. KFTC and allies have more work to do. We need more good legislators in Frankfort. The results of the 2008 budget process demand new, better people in Frankfort."
It is unclear if the governor will veto or sign the budget into law, or let it become law without his signature. He can also veto individual line items. Gov. Beshear has acknowledged that the budget will cause pain, although it appropriates more for health care, environmental protection and education than his original budget proposal.
March-28-2008
New Report on Wealth Inequality in the US
The Center on Budget and Policy Priorities came out with a report yesterday about wealth inequality. Some of us were talking about how great it would be to make a visual of this in bts, but we're not even sure what kind of visual would work. These numbers are hard to compare.
Between 2005 and 2006, the average income (before taxes) of the top 1% of US households (incomes above about $375,000) increased by $73,000, after adjusting for inflation. The average income of the bottom 90% of households increased by just $20. The share of the nation's income held by the top 1% is the highest that it's been since 1928.
Here's another: Since 2002, the average income of the top 1 percent of households has risen 44%. The average income of the bottom 90 percent of households has risen about 3 percent.
A lot of numbers, I know, but the reality behind them is felt by families every day. Leslie Craft, a KFTC member in Perry County, says that middle-class incomes aren't keeping pace with rising costs of health care, gas, child care, and other basic living expenses. "My family is poised to spend more than a fifth of our gross income on medical expenses this year," Leslie says. "This will keep us all insured, make sure John is not sick, and make sure our baby gets to have a hospital birth. If you add in our regular out-of-pocket expenditures of $2,000 annually, healthcare will eat-up over 20% of our projected, combined incomes."
With 20% of their incomes devoted to health care, a chunk for child care, a bit to keep themselves clothed and fed, there isn't a lot left over, despite their middle-income status. After they add in gasoline...wait, let's pause on that, too: "I spend $250 more monthly on gas now than I did this time two years ago, even though our overall fuel consumption has actually been reduced by purchasing very fuel efficient cars. We pay $5,700 yearly, if gas stays at $3.00 per gallon. It's more than our mortgage, but as good as can be expected in a rural area."
After all these basic expenses are factored in, Leslie and her family are left relying on savings and hoping that nothing goes wrong. Leslie explains, "If the car doesn't break down, and we don't indulge at all, and we potty-train immediately, we will still need more money. This is what I call 'feeling the pinch.'
Related links
- Read more about this report on CBPP's website.
- Read other blog entries about our Economic Justice work.
- Visit the Kentucky Economic Justice Alliance (KEJA)'s blog.
"All I want to do," says Leslie, "is sock away a few bucks for tough times, make sure I save a little money for my kids' college educations, pay for the essential services and durable good that we actually need, and see a damned doctor when we need care. This year, I can do only two out of four. And the goods I will have to make do with will probably be a little less than durable, if you know what I mean."
Leslie's family is, by the numbers, anyway, a middle-income family. But their placement is more complex as they consider how financially secure they feel. And this experience is more and more common as the nation's wealthiest 1% absorb more and more of our collective resources. While families in Kentucky and across the nation are trying to find some solid ground away from the edge of the widening wealth gap, it's difficult to see any evidence that many legislators are aware that so many families are teetering.
March-18-2008
Two bills need a push to get out of the House
Two bills that are important to KFTC members and all Kentuckians continue to linger on the House floor despite receiving committee approval weeks ago. House leaders are not calling these bills for a vote even though both enjoy broad support.
We ask that you call House leaders and ask that they allow these bills to be voted on. Time is running out with less than two weeks left in the legislative session before their veto break.
1. House Bill 566: The General Assembly has a chance to pass a measure that would help more than 350,000 lower-income working families. HB 566 establishes a state Earned Income Tax Credit (EITC) that will help correct the imbalance in our current tax system that now asks people who earn less ($14,000-$26,000 a year) to spend more (10%) of their income on state and local taxes than do our highest income families (less than 6% for incomes more than $289,000). It would buy school clothes, repair a refrigerator, or help fix the clutch on Kim Stinson-Hawn's car so she can depend on it to drive to work.
HB 566 also restores a Kentucky estate tax on estates worth than $3.5 million to fund the EITC, so it will not cut any further into the state's revenue shortfall.
For years, we've seen broad support for the EITC from both political parties, but HB 566 is being ignored by House leaders. They need to hear from Kentuckians who don't accept being complacent about poverty.
2. House Bill 70: There are 24 cosponsors and broad public support for legislation that would ask voters to decide if former felons who have completed their sentences should automatically have their voting rights restored. HB 70 passed out of committee on February 5 but House leaders have held it on the floor as they considered what constitutional amendments to propose. Now that it is all but certain casino gambling will not pass, it is time to act on HB 70.
TAKE ACTION
Please call the Legislative Message Line on Tuesday up to 2 p.m. when the House will reconvene. If either of these bills receives a vote on Tuesday we will send another message out on Tuesday night. Otherwise, keep calling on Wednesday and Thursday.
Ask for your message to be delivered to the "House Democratic and Republican leadership." This is: Reps. Jody Richards, Larry Clark, Jeffrey Hoover, Rocky Adkins, Rob Wilkey, Stan Lee, Charlie Hoffman and Bob DeWeese (you should not have to give all these names to the operator).
Message:
"I ask for your leadership to help working families and pass House Bill 566, and to strengthen our democracy and pass House Bill 70 without any floor amendments."
The Legislative Message Line is 800-372-7181 and is open from 7 a.m. until 11 p.m.
Thanks for taking action!
March-13-2008
House Passes Revenue Package, Some Funding Cuts Restored
A much altered HB 262 was passed in the House yesterday to raise revenue for the House budget proposal, which also passed the House yesterday.
News coverage on the budget
HB 262 raises about $800 million over the next two years. It includes two provisions that KFTC is supportive of: increasing the cigarette tax by 25 cents, and expanding the sales tax to a few (a very few) selected services (armored car services, chartered flights, commercial linen services exempting hospitals and nursing homes, commercial janitorial services, and security services). There are also provisions that are one-shot deals that, the House projects, will claim revenue for the budget: claiming the salaries of state employees that are expected to retire to take advantage of a benefits package that expires at the end of the year, and restructuring the state's debt.
Several legislators explained their yes votes as being difficult to cast, but impossible not to cast. Rep. Jimmie Lee said, "None of us up here likes taxes... We're all kind of squirming in our seats. I have two opponents, one in the primary and one in the general election in the fall. But if I had to not cast this vote for our children, for Meals on Wheels, and for our future, I wouldn't want to come back." Rep. Siler agreed, saying, "I'm one of those people squirming in their seat. I've only told people that I'd make the right vote. If I don't come back because of my vote, it won't be the first time...I can't make a vote that's going to get rid of Meals on Wheels, because I have people in my district who need it...I'm going to quite squirming and do what is right. I vote yes." Rep. Wayne validated these legislators' concerns, and their votes. "There's going to be a political fallout for the people who vote for this plan, and the way to offset that is for the public to rally in support this tax bill and in support of funding these important programs."
We are proud of these legislators that did the right thing in voting for these revenue reforms. That said, we agree with Rep. Wayne and Rep. Moberly's assessment of the budget and revenue proposals. Rep. Wayne said, “It’s not perfect—I would have chosen the original—but we need the public to understand that we need to rally together to support this tax bill to avoid tragedy.” Rep. Moberly said of the proposal, “I would have preferred more recurring revenues, and I’m for a 70-cent increase in the cigarette tax, myself, but we have to have something that will pass. If we don’t pass this, the effect on the commonwealth will be devastating. We will slip backwards very quickly, and I can’t do that to our children and our future.”
And when the revenue and budget bills hit the House floor yesterday, several legislators from both parties agreed, enough to pass both bills to the Senate. (Several didn't, including several Democrats: Royce Adams, Will Coursey, Bob Damron, Milward Dedman, Jeff Greer, Dennis Horlander, Dennis Keene, Rick Nelson, Sannie Overly, Dottie Sims, John Tilley, Ron Weston, and Susan Westrom. Shame on them. At this point, as the members of the A and R committee pointed out, a "no" vote for revenue is a "no" vote for people, and a "no" vote to Meals on Wheels, up-to-date textbooks, access to college educations...The list goes on and on.)
KFTC appreciates that the Appropriations and Revenue Committee started with HB 262, thereby orienting the process in fairness and adequacy; it shows the committee's commitment to the principles behind the original HB 262. And together with HB 566, which couples a state EITC with a restored state estate tax, versions of three of our four tax justice priorities have been at play on the House floor this session, and a version of one is in the Senate. This is all good news.
More good news? You can still act to support these bills. HB 566 would credit money back to more than 350,000 low-income working families. It's still on the House floor. Call your representative and ask them to co-sponsor that bill. The budget and revenue bills are in the Senate, so put a call in to your senator and ask them to vote for investments in our children and our future. The number for both is 1-800-372-7181.
