Local Government Finance in Kentucky: Time for Reform?
by
David E. Wildasin Martin School of Public Policy and Department of Economics University of Kentucky Lexington, KY 40506-0027 USA
Abstract
This is a time of increased interest in local government finance in
Kentucky, as evidenced by the creation of a Task Force on Local
Taxation, established by the General Assembly. The final report of
the Task Force offers significant recommendations, including an
amendment of the state constitution that would provide the General
Assembly with the flexibility to institute new instruments of local
government finance. The present paper reviews the status of local
government finance in Kentucky and discusses some of the key findings
and recommendations of the Task Force. As the Task Force report
clearly recognizes, informed analysis of local tax policy in Kentucky
is hampered by inadequate data on local government finances. This
paper identifies some of these deficiencies and a number of important
policy issues that require further policy analysis, particularly if
the General Assembly entertains significant reforms of local taxation.
