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General Assembly 2015...End of Federalism and Era of New Taxes- Trend for 2015

Back in 1970, Kentucky State Government had access to over 1,000 federal programs. That figure is closer to 100 primary federal aid programs in 2015. After almost 14 years of overseas wars at a cost of $1 trillion dollars, the federal government is no longer capable of putting money into domestic infrastructure or social aid programs.

With the rise of the Tea Party, federal spending has become a major political target of the far right wing of the Republican Party. The Tea Party members want to drastically cut federal programs to states and local government. Now that both houses of congress are controlled by the Republican Party, Kentucky could see large reductions in Federal funding.

In the 2014 Kentucky elections, the Democratic Party held control of the House of Representatives. The 2015 state budget will be fought over party lines. Pension reform funds, aid to transportation highways, higher education, local education, jails, health care, social family networks, and economic development will be some of the major flash points for debate.

New local taxes, embattled within the new Home Rule laws, will be fought at the state and local levels. Local government will have to scramble to cover loss funding from the state and feds.

In all the future debate in Congress and Kentucky's 2015 Legislature, there will be one important fact, from the PEW Research Center, to consider.

"One third of Kentucky's state budget is based upon receiving Federal aid funds. After New Mexico, Kentucky receives more federal funding then any other state in the United States. Kentucky is a national leading welfare state."

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