ADHERE TO STATE SPENDING PRINCIPLES
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If Kentucky is to keep its financial house in order, it must establish a set of disciplined guidelines on spending tax dollars. We encourage Kentucky’s lawmakers, if at all possible, to adopt the following guidelines for state spending:
1. Limit spending to 6% of the state economy.
2. Limit borrowing costs to 6% of the state
General Fund budget.
3. Eliminate the structural deficit by adopting a five-year plan to spend only recurring revenues for recurring obligations.
4. Prioritize spending on areas that invest in the future, such as education and economic development.
5. Eliminate the practice of appropriating all anticipated revenue and ensure the state’s “rainy day fund” has adequate resources to cover the state’s emergency needs.