FRANKFORT, Ky. - State House budget chairman Rick Rand calls Kentucky Governor Steve Beshear's tax reform proposal a "starting point." The plan will get its first hearing during Tuesday's meeting of the House Appropriations and Revenue Committee.

According to economic policy analyst Jason Bailey of the Kentucky Center for Economic Policy, the Governor's plan would create millions of dollars less in new revenue than what was proposed by his tax-reform commission.

"It's only about a third of the additional revenue to plug holes in the budget and begin to reinvest in areas that have been cut time after time over the last six years."

Bailey was a member of the Governor's Blue Ribbon Commission on Tax Reform, which proposed $659 million in new revenue, while Beshear's plan would raise only $210 million. Bailey said that's "just not adequate" for getting Kentucky's schools and human services back on track.

Beshear called his plan a "beginning point," which he claimed is "fair and equitable to everybody." A cornerstone of the proposal is a change in the state's tax system so it can catch up with the change from a goods-based to a service-based economy.

"Our tax base is eroding every day," the Governor warned. "And, so we're proposing to expand the sales tax, not raise the rate, but expand the sales tax to a limited number of services in our economy."

For instance, when you take your car in for repairs you are currently taxed on the parts, but not the labor. Both would be taxed under a modernized tax code. Other examples are adding sales tax to landscaping, janitorial and laundry services.

Bailey said the Governor's tax plan leaves out a major recommendation made by the task force that would have generated $350 million a year. The idea was to limit what higher-income people could claim on their taxes, by capping itemized deductions at $17,500.

"The reason we did that is most of our surrounding states don't allow them at all," the economic analyst said. "And, it's a way to make the overall tax system fairer and more progressive and generate some much-needed revenue."

Lieutenant Governor Jerry Abramson, who headed the tax reform commission, said the Governor "listened" to the commission's recommendations but had to put a "political filter" on his proposals.




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Pennsylvania's landscape is undergoing a transformation, paid for with billions in federal funding from the Inflation Reduction Act and the Bipartisan Infrastructure Law.

The state is expected to receive more than $13 billion over five years for highways and bridges.

David Gunshore described himself as a "semiretired inspector," working on a bridge project in Clarks Summit and said it's being paid for 100% by federal dollars. Gunshore said the crumbling bridge was built in 1959 and last rehabbed in 1983, and stands 65 feet above railroad tracks.

"Like a lot of the concrete, it rots out and it falls, that means it deteriorates and breaks out," Gunshore explained. "So you cut all that out, and you re-patch it with new stuff, so that the rot can't go any deeper into the pillars. We're redoing the bridge deck and the piers, the pillars, the columns that hold it up."

Gunshore estimated the bridge project will be finished by next fall. As of March of this year, the Bipartisan Infrastructure Law had allocated more than $15 billion to Pennsylvania, for more than 450 projects. Of those funds, $6.7 billion are for highways and just over $1 billion for bridges.

Gunshore pointed out in his years on the job, the construction industry seems to have struggled more under Republican administrations but thrived during President Bill Clinton's tenure and with the Fixing America's Surface Transportation Act during Barack Obama's presidency to fix roads and transit lines. Gunshore thinks it has been money well spent, noting the Biden-Harris administration's support for construction, manufacturing and apprenticeship programs.

"Big government spends the money but you're building roads, people get jobs, and money goes into the economy, and you're still ending up with new roads and new infrastructure," Gunshore emphasized. "I think that's one of the best investments going, that and health care, because the better the health care, the less people are going to get sick."

Gunshore noted the last major federal project he worked on, the Twin Bridges project, is underway to replace two mainline bridges in Lackawanna County. He added there is a lot of work to be done and jobs are available for the project.


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Nebraska is one of four states with measures about state funding of private-school vouchers on the ballot this year. Referendum 435 asks voters to decide whether to repeal the school voucher program passed on the last day of the 2024 legislative session.

Backers of the law claim vouchers are needed by low-income families who can't otherwise afford to send their children to a private school. But studies show that in a number of states, most who benefit from school vouchers are not from low-income families.

Tim Royers, president of the Nebraska State Education Association, said this has been borne out in Iowa.

"In Iowa, for example, who just implemented their voucher system last year," he said, "the median income for the voucher recipients is roughly $120,000."

Iowa data also show that more than two-thirds of the students using vouchers had already been attending a private school.

Another of NSEA's objections is that the law doesn't benefit all of Nebraska, since more than half the counties have no private schools. Critics of the voucher programs say they siphon state funds away from the public school system.

Royers said choice is fine - as long as it's publicly accountable choice.

"As long as private schools can discriminate and deny certain children admission; as long as they don't have to follow the same testing and reporting requirement that we do, we just don't feel public tax dollars should go to those institutions," he said.

Arizona's private-school voucher program has ballooned in scope and cost, and contributed to the need for significant state budget cuts. Dave Wells, research director at the Grand Canyon Institute, a "centrist think tank" in Phoenix, says Arizona's voucher program means the state is essentially supporting two school systems - public and private.

"In Arizona, we can't afford to do that, and it's had really negative impacts," he said. "And I think it has especially negative impacts on rural areas where there aren't private schools even to pick from. And the people who benefit the most from this are people who can already afford to go to private schools, is what we've found in Arizona."

Former President Donald Trump and Vice President Kamala Harris are trying to appeal to labor groups on the campaign trail.

A much-debated policy blueprint is lighting a fire under Minnesota unions, who warn about the threat to workers. Republicans, including Trump, have tried to distance themselves from Project 2025, a wish list of policy moves drafted by a conservative think tank. But attempts to disavow the project are not easing the concerns of those opposed to it, including the Minnesota Association of Professional Employees, which represents more than 15,000 state government workers.

Megan Dayton, president of the union, found the overall tone from Trump and his advisers troubling.

"This plan promises to dismantle government services," Dayton pointed out. "Donald Trump wants to privatize the Department of Veterans Affairs. This really hits home for us in Minnesota and for MAPE because we have members who help veterans receive specialized care."

Project 2025 lays out a number of union-related reforms, including regulations dealing with overtime rules. In 2018, Trump signed executive orders weakening unions' ability to negotiate contracts and cut hours union reps were able to tend to member complaints. While the former president downplays connections to the plan's authors, other conservatives argued the initiative is about government accountability.

The Minnesota Association of Professional Employees and other Minnesota unions, including the American Federation of State, County and Municipal Employees Council 5, argued the conservative vision under Project 2025 aligns with broader efforts to chip away at individual rights. Dayton noted like so many other populations, it affects their members.

"They (conservatives) are consolidating power by removing the checks and balances that I think have defined our republic since its founding," Dayton asserted.

On a national scale, Harris has the backing of a number of key unions, including the AFL-CIO and the United Auto Workers. However, the International Association of Firefighters and the International Brotherhood of Teamsters declined to endorse anyone in the presidential election.