$12.7 MILLION MORE CUTS IN STATE PERSONNEL

"State government now does what families and businesses have been doing for the last two years," Sen. Damon Thayer Georgetown, said. "It tightens our belt and forces state government to live within its means."

Applying percentage increases' of 3.5% and 4.5% over 2010-2012 biennium budget reaks of politicians in control of budget making. This strategy avoids doing politically unpalatable strategy of making targeted cuts as illustrated below. This 2010-2012 biennium budget opts to continue sucking the finanical life out of Kentucky's current biennum budget, not repaying KY ROAD FUND state tax dollars estimated @$400 million siphoned off to cover general fund deficits over past 25 years! This strategy cost ROAD FUND billions of federal dollars due to not being subjected to federal's 9-to-1 match!

Kentucky legislature's 2010-2012 "no tax" budget did not address;

an estimated $300 million of an estimated $800 million of state tax expenditures to continue to siphon tax dollars from 2010-2012 biennium budget;

an estimated $400 million of corporate tax shelters to continue to siphon tax dollars from biennium budget;

an estimated $122 million of non-merit and PVA personnel costs to continue to siphon dollars from 2010-2012 biennium budget;

2010-2012 budget does noting to PVA tax administration high costs in 40 counties below: (17 PVA per parcel cost average $25.00 per parcel excluding following counties:)

48 PVA counties below fall above $25.00 cost per parcel should have their personnel cost scrutinized

County #parcels Cost-per-parcel
Bracken 6173 $36.17
MASON 9213 $39.63
ROBERTSON 1372 $116.7
LEWIS 5579 $46.87
ELLIOTT 3846 $51.76
CARROLL 5009 $59.47
GALLATIN 4368 $53.40
WOODFORD 10291 $46.31
ANDERSON 10859 $33.95
MERCER 9605 $45.62
BOYLE 12220 $37.34
BOURBON 8751 $39.25
NICHOLAS 4006 $51.10
LIVINGSTON 6770 $39.22
HANCOCK 5134 $48.69
UNION 8219 $45.41
BALLARD 6280 $41.99
CARLISLE 4048 $43.34
HICKMAN 4270 $45.20
FULTON 4309 $50.05
LARUE 7322 $36.00
NELSON 21121 $30.00
WASHING 6458 $44.37
MARION 10063 $38.55
METCALF 6555 $38.99
SIMPSON 9081 $42.23
ELLIOTT 3846 $51.76
CARROLL 5009 $59.47
GALLATIN 4368 $53.40
WOOD 10291 $46.31
ANDERS 10859 $33.95
BOYLE 12220 $37.34
BOURBON 8751 $39.25
NICHOLAS 4006 $51.10
LIVINGST 6770 $39.22
HANCOCK 5134 $48.69
UNION 8219 $45.41
BALLARD 6280 $41.99
CARLISLE 4048 $43.34
HICKMAN 4270 $45.20
FULTON 4309 $50.05
LARUE 7322 $36.00
NELSON 21121 $30.00
WASH 6458 $44.37
MARION 10063 $38.55
METCALF 6555 $38.99
SIMPSON 9081 $42.23

2010-2012 BUDGET .035 PROJECTED PRELIMIARY CUTS:

CALCULATING projected 3.5% cut as follows:

Difference between state agency's low and high annual pay, divided by 2, multiplied by #of employees times .035

TOTAL PROJECTED 3.5% CUT = $12,756,606 [$182,237,223/.O35=$12,756,606]

UNIVERSITY OF LOUISVILLE ESTIMATED COST BASED ON 2616 EMPLOYEES ANNUAL PAY OF $1,651,969,992 * .035=$57,818,950

UNIVERSITY OF KENTUCKY ESTIMATED COST BASED ON 4469 EMPLOYEES ANNUAL PAY OF $2,719,886,500 * .035=$95,196,028

KENTUCKY EXECUTIVE BRANCH ESTIMATED COSTS BASED ON 5269 EMPLOYEES ANNUAL PAY OF $690,681,596 *.035=$15,876,103

PVA COST PER PARCEL SHOULD BE REVIEWED IN 48 COUNTIES PARING DOWN STAFFING & RECUCING # OF PVA's FROM 120 TO 17 SAVING ESTIMTED $55 MILLION

KY COMMUNITY COLLEGE ESTIMATED COSTS BASED ON 1498 EMPLOYEES ANNUAL PAY OF $268,207,912 * .035=$9,387,277

KY JUDICIAL SYSTEM ESTIMATED COSTS BASED ON 545 EMPLOYEES ANNUAL PAY OF $98,525,100 * .035=$3,448,379

LRC ESTIMATED COSTS BASED ON 469 EMPLOYEES ANNUAL PAY OF $7,912,030 * .035=$276,921

KY HOUSING CORPORATION BASED ON 95 EMPLOYEE ANNUAL PAY OF $2,919,160 * .035=$102,171

LOTTO BASED ON 62 EMPLOYEES ANNUAL PAY OF $3,754,100 * .035=$131,394

an estimated $250 million of uncollected due-and-owing passenger car taxes continue placing more tax burden on 93% of Kentucky car owners who pay;

2006 H.B.698 allowing "stipend" to local,state law enforcement officers assisting in locating, identifying FREDDIE FREEROADER KY CAR & TRUCK OWNERS ABUSING KY. TITLING & REGISTRATION

2010-2012 budget provided tax break to distillers by Senate while leaving untouched estimated $400 million of corporate tax shelters;

Estimated $100 million of unequalized truck weight distance taxes to continue to burden Kentucky trucking industry;

Kentucky's obsolete tax base remaining "as is" continues underfunding Kentucky's benefits and services during 2010-2012 biennium;

No meaningful debate on Wayne/Farmer tax bills to replace current unfair, uncompetitive, unstable, inconsistent, unreliable tax base

The approach recommended by Representative Farmer would reduce amount of money flowing into the Kentucky treasury over the long-run and would clearly tilt the tax system to favor the most affluent Kentuckians.

The approach suggested by Representative Wayne would improve both the Commonwealth?s bottom line and the economic position of low-and moderate-income residents

"As is" 2010-2012 budget saddles low-and-middle-income families continuing to pay a far higher share of their income in state and local taxes than do the richest families.

2010-2012 budget dropped two tax-code changes proposed by the House temporarily suspending a tax write-off and accelerate sales tax collections that would enhance 2010-2012 tax resources by estimated $270 million in two years while estimated $400 million of corporate tax shelters are left in place.

2010-2012 budget not reimbursing KY ROAD FUND an estimated $400 million siphoned off to cover general fund deficits over past twenty years costing ROAD FUND billions of federal dollars;

All state retirement systems allowed to continue operating separetly;

No local tax option relief given by 2010-2012 budget to 96-out-of-120 Kentucky counties at or near bankruptcy;

2010-2012 KY biennium budget cuts projected $12.7 million

"State government now does what families and businesses have been doing for the last two years," Sen. Damon Thayer Georgetown, said. "It tightens our belt and forces state government to live within its means."

Applying percentage increases' of 3.5% and 4.5% over 2010-2012 biennium budget reaks of politicians in control of budget making. This strategy avoids doing politically unpalatable strategy of making targeted cuts as illustrated below. This 2010-2012 biennium budget opts to continue sucking the finanical life out of Kentucky's current biennum budget, not repaying KY ROAD FUND state tax dollars estimated @$400 million siphoned off to cover general fund deficits over past 25 years! This strategy cost ROAD FUND billions of federal dollars due to not being subjected to federal's 9-to-1 match!

Kentucky legislature's 2010-2012 "no tax" budget did not address;

an estimated $300 million of an estimated $800 million of state tax expenditures to continue to siphon tax dollars from 2010-2012 biennium budget;
an estimated $400 million of corporate tax shelters to continue to siphon tax dollars from biennium budget;
an estimated $122 million of non-merit and PVA personnel costs to continue to siphon dollars from 2010-2012 biennium budget;
2010-2012 budget does noting to PVA tax administration high costs in 40 counties below: (17 PVA per parcel cost average $25.00 per parcel excluding following counties:)
48 PVA counties below fall above $25.00 cost per parcel should have their personnel cost scrutinized

County #parcels Cost-per-parcel
Bracken 6173 $36.17
MASON 9213 $39.63
ROBERTSON 1372 $116.7
LEWIS 5579 $46.87
ELLIOTT 3846 $51.76
CARROLL 5009 $59.47
GALLATIN 4368 $53.40
WOODFORD 10291 $46.31
ANDERSON 10859 $33.95
MERCER 9605 $45.62
BOYLE 12220 $37.34
BOURBON 8751 $39.25
NICHOLAS 4006 $51.10
LIVINGSTON 6770 $39.22
HANCOCK 5134 $48.69
UNION 8219 $45.41
BALLARD 6280 $41.99
CARLISLE 4048 $43.34
HICKMAN 4270 $45.20
FULTON 4309 $50.05
LARUE 7322 $36.00
NELSON 21121 $30.00
WASHING 6458 $44.37
MARION 10063 $38.55
METCALF 6555 $38.99
SIMPSON 9081 $42.23
ELLIOTT 3846 $51.76
CARROLL 5009 $59.47
GALLATIN 4368 $53.40
WOODFORD 10291 $46.31
ANDERSON 10859 $33.95
BOYLE 12220 $37.34
BOURBON 8751 $39.25
NICHOLAS 4006 $51.10
LIVINGST 6770 $39.22
HANCOCK 5134 $48.69
UNION 8219 $45.41
BALLARD 6280 $41.99
CARLISLE 4048 $43.34
HICKMAN 4270 $45.20
FULTON 4309 $50.05
LARUE 7322 $36.00
NELSON 21121 $30.00
WASH 6458 $44.37
MARION 10063 $38.55
METCALF 6555 $38.99
SIMPSON 9081 $42.23

2010-2012 BUDGET .035 PROJECTED PRELIMIARY CUTS:
calculations of projected 3.5% cut as follows:

Difference between state agency's low and high annual pay, divided by 2, multiplied by #of employees times .035

TOTAL PROJECTED 3.5% CUT = $12,756,606 [$182,237,223/.O35=$12,756,606]

UNIVERSITY OF LOUISVILLE ESTIMATED COST BASED ON 2616 EMPLOYEES ANNUAL PAY OF $1,651,969,992 * .035=$57,818,950

UNIVERSITY OF KENTUCKY ESTIMATED COST BASED ON 4469 EMPLOYEES ANNUAL PAY OF $2,719,886,500 * .035=$95,196,028

KENTUCKY EXECUTIVE BRANCH ESTIMATED COSTS BASED ON 5269 EMPLOYEES ANNUAL PAY OF $690,681,596 *.035=$15,876,103

PVA COST PER PARCEL SHOULD BE REVIEWED IN 48 COUNTIES PARING DOWN STAFFING & RECUCING # OF PVA's FROM 120 TO 17 SAVING ESTIMTED $55 MILLION

KY COMMUNITY COLLEGE ESTIMATED COSTS BASED ON 1498 EMPLOYEES ANNUAL PAY OF $268,207,912 * .035=$9,387,277

KY JUDICIAL SYSTEM ESTIMATED COSTS BASED ON 545 EMPLOYEES ANNUAL PAY OF $98,525,100 * .035=$3,448,379

LRC ESTIMATED COSTS BASED ON 469 EMPLOYEES ANNUAL PAY OF $7,912,030 * .035=$276,921

KY HOUSING CORPORATION BASED ON 95 EMPLOYEE ANNUAL PAY OF $2,919,160 * .035=$102,171

LOTTO BASED ON 62 EMPLOYEES ANNUAL PAY OF $3,754,100 * .035=$131,394

an estimated $250 million of uncollected due-and-owing passenger car taxes continue placing more tax burden on 93% of Kentucky car owners who pay;

2006 H.B.698 allowing "stipend" to local,state law enforcement officers assisting in locating, identifying FREDDIE FREEROADER KY CAR &

TRUCK OWNERS ABUSING KY. TITLING & REGISTRATION

2010-2012 budget provided tax break to distillers by Senate while leaving untouched estimated $400 million of corporate tax shelters;

Estimated $100 million of unequalized truck weight distance taxes to continue to burden Kentucky trucking industry;

Kentucky's obsolete tax base remaining "as is" continues underfunding Kentucky's benefits and services during 2010-2012 biennium;

No meaningful debate on Wayne/Farmer tax bills to replace current unfair, uncompetitive, unstable, inconsistent, unreliable tax base

The approach recommended by Representative Farmer would reduce amount of money flowing into the Kentucky treasury over the long-run and would clearly tilt the tax system to favor the most affluent Kentuckians.

The approach suggested by Representative Wayne would improve both the Commonwealth?s bottom line and the economic position of low-and moderate-income residents

"As is" 2010-2012 budget saddles low-and-middle-income families continuing to pay a far higher share of their income in state and local taxes than do the richest families.

2010-2012 budget dropped two tax-code changes proposed by the House temporarily suspending a tax write-off and accelerate sales tax collections that would enhance 2010-2012 tax resources by estimated $270 million in two years while estimated $400 million of corporate tax shelters are left in place.

2010-2012 budget not reimbursing KY ROAD FUND an estimated $400 million siphoned off to cover general fund deficits over past twenty years costing ROAD FUND billions of federal dollars;

All state retirement systems to continue operating separetly costing Kentucky taxpayers' under 2010-2012 biennium budget ;

No finacial deficit relief to 96-out-of-120 Kentucky counties at or near bankruptcy in 2010-2012 biennium budget;