(The Center Square) – As the governor’s race heats up in Kentucky, both the Democratic incumbent and the Republican-led Legislature are jockeying to take claim for the state’s booming economy, which just produced its third consecutive budget surplus.
Gov. Andy Beshear announced during his weekly briefing last Thursday that the state’s General Fund received more than $15.1 billion for the 2022-23 fiscal year that ended on June 30. That generated a surplus of $1.4 billion, which is the largest in state history.
“We continue to see an economy that is on fire, all while we have lowered income and property taxes for our families,” he said.
Beshear, who is running for reelection against Republican Attorney General Daniel Cameron, vetoed legislation lowering the income tax rate in the 2022 session, saying the sales tax expansion to certain services that went with the reduced income tax rate would hurt businesses. The Republican super majorities in the General Assembly overturned that veto.
GOP lawmakers have been critical of Beshear, saying his office has been instrumental in the ongoing economic boom that has led to record economic development numbers and budget surpluses.
“As Andy Beshear begins to try to take credit for jobs in KY, just remember that jobs are a lagging effect of statewide fiscal policy,” state Rep. Robby Mills, R-Henderson, tweeted last week. “Who has set statewide fiscal policy in KY since 2017…the Republican super majority, not Andy Beshear. Don’t be fooled.”
Senate Budget Chairman Chris McDaniel, R-Ryland Heights, issued a statement Wednesday that the surpluses served as “validation conservative policies and fiscal responsibility yield optimal results.”
He added that those fiscal policies have given the Beshear administration every opportunity to be successful.
“Despite the financial success Kentucky has experienced, I’m disappointed in the Beshear administration’s significant shortcomings, most notably regarding juvenile justice and reports of children in the state’s custody sleeping on state office floors,” McDaniel said. “Moving forward, I urge Governor Andy Beshear to take better advantage of the financial resources taxpayers and lawmakers have entrusted to him by better prioritizing those funds.”
The state’s General Fund grew by 3% over the last 12 months, and that was despite a 10% cut (from 5% to 4.5%) in the personal income tax rate that took effect in January.
In addition, Kentucky’s Road Fund grew by 4.7% last year and produced a surplus of $32 million.
