REDUCE PROPERTY ADMINISTRATION COSTS

Many families in Kentucky saw improvements in their standard of living over the 1990s as median family income and the wages of low- and median-wage workers grew. However, the growth in wages did not make up for losses in the 1980s. In the 2000s Kentucky continued to lag behind the nation in important areas like poverty rates and income inequality

Median family income for four-person families

Middle-income families in Kentucky have fared well during the current economic expansion. Median family income for four-person families was $49,108 in 1998, compared to its 1989 level of $45,206 (in 1998 dollars). In the 1990s and 2000s, the Kentucky median income was lower than the national median.

Income inequality

Income inequality grew in Kentucky over the 1990s and 2000s. In the late 1990s, the income of the wealthiest 20% of families was 11.1 times that of the poorest 20% of families. By comparison, in the late 1980s, the wealthiest 20% of families had 9.1 times the income of the poorest 20% of families. Income inequality grew worse in 2000s.

Poverty rate

The poverty rate in Kentucky fell during the 1990s, from 16.9% in 1988-89 to 14.7% in 1997-98. However, the poverty rate in Kentucky in the late 1990s and 2000s was higher than the national rate (13.0% in 1997-98).

Wages

In Kentucky in the 1990s and 2000s, the wages of both low-wage workers and workers in the middle of the wage distribution grew in 1990s, but nosedived in 2000s. However, gains by these workers did not make up for losses in the 1980s. In 1999, the inflation-adjusted hourly wages of low-wage workers (workers at the 20th percentile) were 3.1% lower than they were in 1979. The inflation-adjusted median wage (the wage of workers in the middle) was 5.9% lower in 1999 than in 1979.

Unemployment

The unemployment rate in Kentucky fell from 6.2% in 1989 to 4.5% in 1999, leaving the Kentucky unemployment rate above that of the nation (4.2% in 1999). Kentucky's unemployement rate set a record in 2009.

In 1999 decline in unemployment is good news, not everyone benefited equally. Less-educated workers (especially women) had unemployment rates that were above the state average. For example, while in 1999 the general unemployment rate in Kentucky was 4.5%, the unemployment rate for women with less than a high school education in 1997-99 was 20.2%. Yet, in 2000s unemployment rate zoomed up to record heights and is predicted not to do any melting until after 2011.

Jobs paying poverty-level wages

Many jobs in Kentucky pay poverty-level wages. In 1999, 31.4% of jobs in Kentucky paid below the wage needed to lift a family of four above the poverty line with full-time, full-year work. The share of jobs that pay poverty-level wages declined over the 1990s, but Kentucky still has a greater share of these jobs than the nation as a whole, adding record setting loss of jobs in 2000s.

Could you commit to developing and introducing Kentucky legislation to synchronize state’s expenses with state income during 2007 session?

If so, here's what Kentucky lawmakers must commit to:

Replace income tax with tax on services;

Cutting 30% of state tax expenditures like tax exemptions, tax exclusions, tax deferrals, tax deductions, prefrential tax rates;

Cutting $400 million from corporate tax shelters;

Paring down 12,650 unclassified state jobs by $100 million;

Collect motor vehicle tax evasion equalizing truck weight distance, U-Drive-It, motor vehicle usage & property taxes and car registration fees;

Consensus amoung lawmakers not to introduce legislation addressing state tax expenditures for at least two bienniums;

Reduce appropriations alleviating state's general fund; i.e,amending H.B. 44 to change maximum rate to 6% & pass local tax option;

Base 120 statutory PVA's on KADD regions by establishing 17 PVA regions lowering number of PVAs to 17 and pare down CURRENT deputy PVA staffing of 680 deputies for 17 PVA regions;

REASONS:

o KY's bonded indebtedness is over $985 dollars for every man, woman and child
o More than 12% of Ky's population is elderly and more than 14% of children under age 5 lives in poverty;

o Health of KY's population is one of the worst in the nation

o Diabetes in KY is one of worst in nation

o Kentucky leads Country having children victims of adult abuse;

o Two Kentucky's: EASTER KENTUCKY AND COUNTIES MAKING UP GOLDEN TRIANGLE WHICH ARE NOT REFLECTED IN CURRENT ECONOMIC DEVELOPMENT POLICY;

o CAR AND TRUCK TAX EVASION ESTIMATED IN 2009 AT $350 MILLION among Kentucky operated motor vehicles using illegal license plates to circumvent paying Kentucky’s usage and property taxes and 28% of truckers in 1994 not paying truck weight-distance tax has been tolerated by every Administration, including the current Administration. U-Drive-It tax evaders of lease/rental cars operating from KY's airports need to be complianced

o KY's corporate taxpayers taking advantage of structural weaknesses and loopholes in state tax systems using tax shelters amount to estimated $400 million;

In 1980 Brown Administration introduced & passed legislation establishing merit state employee pay-for-performance. However, legislature did not fund legislation. However, law required supervisors semi annualy to evaluate each employee, individually. Evaluation forms filed rating each employee’s performance. 2010 General Assembly must fully fund merit employee (classified) pay-for-performance plan because it's the right thing to do.

Change current “defined benefit” state retirement on all new hires from January 1, 2007 to “defined contribution”, as industry is now doing saving state immense dollars.

Source: Mishel, et al. 2000. State of Working America 2000-01. Economic Policy Institute