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Kentucky Chamber Blog
Wednesday, March 10, 2010
Kentucky Chamber responds to House budget
Posted by Bryan Sunderland on 3/10/2010 5:23:00 PM
Frankfort, Ky. (March 10, 2010) – The Kentucky Chamber of Commerce expressed both praise and concern about the House-passed budget on Wednesday, applauding initiatives to reduce spending in some areas but objecting to cutting days from the school calendar and raising more revenue through business tax changes.
The Chamber has focused on state spending as part of a year-long research project and has offered specific suggestions to the General Assembly to reduce spending in corrections, Medicaid and public employee health coverage—which are growing faster than the state economy and overall state spending.
House budget provisions applauded by the Kentucky Chamber include:
• An estimated $150 million in savings through adjustments in the public employee health insurance program
• Cuts in the number of personal service contracts and political appointees
• Smoking cessation coverage for Medicaid recipients
• Mandated efficiencies in Medicaid and corrections that will result in significant budget savings
The Chamber noted the House-passed budget represents a significant first step toward controlling spending on corrections, Medicaid and public employee health insurance – which together accounted for more than half the increase in state spending over the last decade.
But the statewide business organization also noted two chief areas of concern in spending:
• Eliminating two instructional days from the school calendar
• Reducing state funding for Kentucky’s colleges and universities.
Shortening the school year would be a step backward as Kentucky schools work to implement new academic standards and would undermine the state’s effort to successfully compete for federal Race to the Top funds, the Chamber said, noting Kentucky was recently named as a finalist in that competition.
The Chamber also expressed its continuing concern about the new revenue provisions contained in House Bill 530 and repeated in the state budget, especially the suspension of the Net Operating Loss carry forward provision, which allows Kentucky businesses that have experienced losses to offset some tax liability. Raising taxes on businesses that have lost money is not the way to create jobs in the current economy, the Chamber noted.
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Wednesday, March 03, 2010
Chamber urges House Leadership to reconsider proposed budget provisions
Posted by on 3/3/2010 8:36:00 AM
On Tuesday, Kentucky Chamber President and CEO Dave Adkisson sent a letter to House Speaker Greg Stumbo and members of the Kentucky House of Representatives regarding the proposed business taxes, the proposed elimination of two school days and a few other aspects of the current budget process. Click here to view the letter.
Adkisson urged representatives to reconsider the idea of repealing certain tax exemptions and freezing the net operating loss (NOL) provisions for business in order to balance the budget.
“We remain deeply concerned about the possible suspension or limiting of the Net Operating Loss carry-forward provision that permits companies that have experienced losses to offset some tax liability,” Adkisson writes. “This proposal could create serious cash-flow problems for Kentucky’s employers, particularly for smaller businesses, as they struggle to regain their footing in the current economy.”
In his letter, Adkisson also expressed concern over the proposed removal of two instructional days from the school calendar.
“Shortening the school year at a time when the Commonwealth is starting to implement new, tougher academic standards would be a step backward,” said Adkisson.
Adkisson closed the letter by stating that state spending reductions – outlined in the Chamber’s Leaky Bucket document – are the best approach to balancing the budget and urge the General Assembly to give additional consideration to curbing corrections and Medicaid costs.
“If new revenues are needed,” said Adkisson,” we believe there is a viable alternative to increasing taxes: revenue from expanded gaming.”
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Monday, March 01, 2010
Urge your representatives not to limit or suspend net operating loss provisions
Posted by on 3/1/2010 1:29:00 PM
In a reversal from comments made last week, it now appears the General Assembly will consider repealing certain tax exemptions and freezing the net operating loss (NOL) provisions for business in order to balance the budget. While the discussion surrounding tax exemptions is occurring behind closed doors, we do know that the NOL changes will result in businesses paying $182 million more in the biennium.
Suspending NOL carryovers is a budgetary maneuver that will create a higher tax burden on some companies for the next 2 years. This practice hurts businesses that are already hurting. Companies with net operating losses have them because they are losing money. Some industries that would be impacted are auto dealers, manufacturing, builders, developers, financial institutions and retail operators.
Last week, the Kentucky Chamber sent a letter to Speaker Greg Stumbo encouraging the House to not limit or suspend the NOL carry-forward provision. This potential tax change is particularly onerous to small businesses and startups. Please call your representative at 1-800-372-7181 and urge them not to limit or suspend NOL provisions for business.
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Wednesday, February 17, 2010
Action Alert UPDATE: Tell your legislators to support HB 322
Posted by Allyson Hamilton-McIntire on 2/17/2010 1:14:00 PM
As we near the midpoint of the 2010 legislative session, positive education legislation has started to move and we need your help to keep it moving!
HB 322, sponsored by Rep. Kent Stevens, would require collaboration on principal hiring, one of our policy objectives. The bill in its current form would allow a superintendent to select three candidates for a principal position to forward on to a school council. The council would then make the final selection from the three candidates. Since superintendents are held accountable for the success or failure of each school – just like managers are held accountable for their employees' performance in the business world – it is only logical and in the best interests of students for superintendents to have a say in the leadership of those schools. Currently, school councils have the authority to select a principal while a superintendent's hands are tied in the process.
The bill was successfully voted out of the House Education Committee on February 9 with a committee substitute. It was set to be voted on by the full House, but objections by the teacher’s union caused the bill to be recommitted to the House Education Committee in order to give the education groups involved time to work out any disagreements. We need your help in encouraging legislators to support the bill in a form that would require superintendents a say in the selection process of principals.
Call your representative at 1-800-372-7181 or visit the Chamber's legislative action Web site to find your representative and send them an email. Tell them to vote "YES" on HB 322 because superintendents need a say in the selection of principals because they are held accountable for the performance of their schools.
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Wednesday, February 17, 2010
Graduate Western Kentucky
Posted by Allyson Hamilton-McIntire on 2/17/2010 1:09:00 PM
On February 18, 2010, First Lady of Kentucky, Jane Beshear and First Lady of Murray State University, Ronda Dunn will host an education summit titled: Graduate Kentucky: A Community Approach, Regional Dropout Prevention Summit. This event, one of many to correspond with the Graduate Kentucky dropout prevention initiative where the Kentucky Chamber was a sponsor, will be held on the third floor of Murray State University’s Curris Center from 8 a.m. until 2 p.m.
The summit will focus on why students are dropping out of school and will determine how the western Kentucky community can work together to reduce the dropout rate.
Community leaders, business people, educators and parents are invited to attend. For more information about the regional summit in Murray, KY, please contact Amber Roach at 270.809.5888 or amber.roach@murraystate.edu. To learn more about Graduate Kentucky: A Community Approach, visit http://www.graduate.ky.gov/.
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Monday, February 08, 2010
House passes critical unemployment insurance bill
Posted by Tyler Campbell on 2/8/2010 3:32:00 PM
On Monday, the Kentucky House of Representatives passed HB 349 by a vote of 97-0. This legislation, sponsored by Speaker Pro-Tem Larry Clark, seeks to enact the recommendations of the Governor’s Task Force on Unemployment Insurance.
HB 349 will save Kentucky employers and the state’s unemployment insurance trust fund more than $700 million over the next decade compared to a do-nothing approach, which will lead to automatic federal tax increases.
The bill now makes its way to the Senate for considersation. The Chamber will continue to support this Kentucky-sponsored solution to the state's unemployment insurance crisis and will urge its passage in the Senate.
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Thursday, February 04, 2010
Adkisson testifies on unemployment insurance fix
Posted by Tyler Campbell on 2/4/2010 10:42:00 AM
The House Labor and Industry Committee unanimously passed HB 349 earlier today. This legislation, sponsored by Speaker Pro-Tempore Larry Clark, seeks to enact the recommendations of the Governor's Task Force on Unemployment Insurance. Click here to view the final report of the task force.
Dave Adkisson, President and CEO of the Kentucky Chamber of Commerce, along with other members of business and labor, appeared before the committee to testify in support of the bill. HB 349 is a Kentucky-sponsored solution to fix the problems within the state's unemployment trust fund.
This legislation will save Kentucky employers and the state's unemployment insurance trust fund more than $700 million over the next decade compared to a do-nothing approach, which will lead to automatic federal tax increases. The Kentucky Chamber along with other members of the business community believe this is the right approach to address this problem and will continue to support this bill through the legislative process.
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Saturday, January 30, 2010
Tax "reform" discussions continue in Frankfort
Posted by Bryan Sunderland on 1/30/2010 1:42:00 PM
The buzz in Frankfort continues surrounding a small House workgroup that is looking at tax reform and a tax paper that has been described by some as a proposal and by others as a working document of options. This worksheet does provide insight into the thought process surrounding tax reform – there is a movement toward expanding the sales tax to services, a look at repealing a number of exemptions, various options to lower some corporate taxes and a push to implement a refundable low-income tax credit. We are continuing to monitor this situation closely to keep our members informed. We need your feekback. Click here to tell us how a sales tax on services like marketing, advertising, accounting and legal fees would impact your business.
Leave a message for your representative in Frankfort toll-free at 1-800-372-7181.
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Friday, January 29, 2010
Chamber testifies in support of early graduation bill
Posted by Allyson Hamilton-McIntire on 1/29/2010 1:31:00 PM
Sen. Ken Winters, Chair Senate Education Committee,
Allyson Hamilton-McIntire, Manager of Public Affairs
This week, Chamber public affairs staff, Bryan Sunderland and Allyson Hamilton-McIntire, joined the Chair of the Senate Education Committee Ken Winters in support of SB 67. The legislation promotes early graduation for high school students who fulfill rigorous academic requirements, including advanced placement and foreign language courses. The bill allows for students to continue on to either a technical and community college or a four-year university with financial aid from the state. The legislation was passed out of committee unanimously and is expected to pass the full Senate.
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Monday, January 25, 2010
February proclaimed "College Access Month"
Posted by Allyson Hamilton-McIntire on 1/25/2010 8:38:00 AM
Based on recommendations by the Chamber-supported Higher Education Work Group, Governor Beshear proclaimed February “College Access Month” unveiling a new one-stop Web site for those of all ages interested in college.
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