FRANKFORT, Ky. - Kentucky lawmakers can take either a path of reinvestment or retrenchment when they craft a new two-year budget, according to economic policy analyst Jason Bailey, who calls the decision a "stark choice." He is co-author of a new report, from the Kentucky Center for Economic Policy, which he directs, that says the direction the state heads depends on whether lawmakers find new ways to generate more revenue.

"The conversation about tax reform in the state has been happening for several decades now," Bailey said. "We have studies on the shelf showing how to do it; we just need legislators with the will to move forward on it."

Bailey was on the governor's tax reform commission which released a plan last year that outlined how to broaden the state's tax base by $650 million. The main idea is to eliminate some of the many tax exemptions and loopholes.

Bailey remarked that there's pain from 13 rounds of cuts over the past six years, and more pain is ahead if something isn't done to reverse course.

"We're at a turning point," he declared. "Those cuts have eliminated $1.6 billion in funding for schools and for health care and social services. Those things have set us back."

And the economic policy analyst warned that the state has already "pulled every trick it can find" to limit just how deep the budget cuts have been.

"You know, we've done tax amnesty, forgiven people for not paying their taxes," he recounted. "We've pulled money from various funds across the state. We've restructured state debt which ends up just costing the state more over time. We haven't paid pension payments for employees."

Those are all reasons why the report Bailey co-authored calls for lawmakers to find ways to, in his words, "put more money on the table."

A link to that report is at KYPolicy.org.




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North Dakota has returned a significant portion of the rental assistance provided by the federal government in the pandemic, and groups working closely with struggling households fear the state is letting much-needed aid go to waste.

The state spent roughly $15 million of the aid through its Rent Help program after policymakers moved to keep people from being evicted during the crisis.

But North Dakota has now sent back about $150 million, citing a lack of flexibility in meeting spending guidelines.

Terry Hanson, executive director of the Grand Forks Housing Authority, is among those who say it has been hard for renters to take advantage of the aid.

"And I think that the state is perhaps trying too hard to document whether or not the funds are needed," Hanson asserted.

He also feels there was not enough outreach, although he noted the state has taken recent steps to boost the flow of aid.

Hanson noted even though a lot of money was left, not everyone who needs it is being reached. He pointed to places like Grand Forks, with a poverty level nearing 20%. North Dakota officials argued the treasury required unspent money to be returned, so it can go to other states that need it more.

According to the latest Census Household Pulse Survey, 44% of North Dakota respondents said they are likely to face eviction or foreclosure in the next two months. Hanson emphasized it is important for the state to remember the relief can be used by applicants in different ways.

"It doesn't have to just cover rent that's not paid," Hanson stressed. "If I was an applicant today, I could say I need help paying the next 12 months' rent."

North Dakota's rental-aid program also faced backlash for getting money to some households after they were evicted. Hanson acknowledged it speaks to the state being unprepared for the rollout, and failing to recognize the need.

Slow distribution of federal pandemic rental relief has been reported in many other states. North Dakota said it still has resources to support housing stability for an estimated 15,000 renters over the next couple of years.

Support for this reporting was provided by The Carnegie Corporation of New York.

During Wednesday's State of the State address, Gov. Mike Parson discussed his priorities for Missouri in the next year, including the supplemental state budget proposal.

Missouri has been allocated billions of dollars in federal funds, first from the American Rescue Plan and then from the Infrastructure Investment and Jobs Act.

Parson's proposal includes, among other measures, funding Medicaid expansion and a 5.5% pay raise for state employees.

Richard von Glahn, policy director for Missouri Jobs with Justice, said both are long overdue and will make a big difference for many families.

"There's a lot of federal funding that will come in that will support Missouri's health-care providers and hospitals across the state," von Glahn pointed out. "More importantly, it'll provide insurance coverage to hundreds of thousands of Missourians."

He added Missouri state worker pay has ranked low in the last couple of decades, and some positions have extremely high turnover rates. He argued it is time state workers -- many of whom have been essential workers during the pandemic, making sure services are available -- get recognition for the value of their work.

Von Glahn added while the pay raise for state workers is a step in the right direction, it is important to not stop there. He noted the governor has refused to bargain with the state employees union for several years.

"I think it would be important for lawmakers to see this as an initial investment," von Glahn asserted. "And to frankly work with the representatives of the employees to negotiate a long-term vision for state employees and state compensation that rewards them for the hard and critical work that they do."

At the State of the State, Parson also outlined his vision for spending $2 billion on public schools, $722 million to keep child-care centers open, almost $22 million for raising teacher salaries and more than $50 million for public colleges and universities.

As Gov. Larry Hogan revealed his proposed Fiscal Year 2023 budget in Annapolis yesterday, the People's Commission to Decriminalize Maryland announced its legislative priorities for the 2022 legislative session.

The commission is made up of representatives of 28 advocacy groups mostly based in Maryland.

Christopher Dews, senior policy advocate for the Job Opportunities Task Force, said the commission has a focus on five bills this session he contended would help decriminalize poverty. Among those include eliminating the use of credit history and ZIP code as factors in auto-insurance rates, which disproportionately impacts communities of color.

"That's going to greatly lower the cost and allow more returning citizens and formerly incarcerated people and those who are simply poor to be able to afford auto insurance so that they can get in their cars and go to work," Dews asserted. "Those two factors have nothing to do with an individual's ability to drive."

A bill introduced last week by Del. Alonzo Washington, D-Prince George's County, would prohibit the use of such information in establishing auto-insurance premiums. A hearing is scheduled for today in the House Economic Matters Committee.

Jason Szanyi, deputy director of the Center for Children's Law and Policy, said the commission also supports Senate Bill 165, which would change Maryland's current system of transferring youths to adult court. The state requires children as young as 14 to be automatically prosecuted in adult court for 33 criminal offenses.

"Many of those kids end up getting transferred back to the youth justice system but only after they've experienced the harm of incarceration and being charged as an adult," Szanyi explained. "A vast majority of those kids are Black and brown youths."

A companion bill was introduced this week in the House by Del. Charlotte Crutchfield, D-Montgomery County. Senate Bill 165 will receive a hearing in the Senate Judicial Proceedings Committee Jan. 27. Other priorities of the commission include cannabis legalization and expungement reform.