Jason Bailey

@jbaileyky.bsky.social

Executive Director, @KyPolicy

🚨Data centers have been touting the local taxes they will generate as a main reason Kentucky communities should let them locate there. But at the same time, a quiet but public legal strategy is under way that would let them *avoid* paying much of those taxes. See NEW from @kypolicy.bsky.social:

How Data Centers Could Skirt Local Taxes - Kentucky Center for Economic Policy

Promised local revenue from Kentucky data centers may be much smaller than advertised due to significant potential tax breaks.

kypolicy.org

Voters in neighboring state Missouri today considered a proposal to eliminate their individual income tax, which the Ky legislature has also made a goal in law. What did the people say? 1/5

A single proposed data center in Barren County says it will purchase $15.4 B of equipment to outfit it. That could mean an initial sales tax break of up to $924 million under KY’s 2025 law—and more tax breaks every 3-5 yrs when the equipment is replaced, for up to 50 years 1/2

Just this week, news of 2 more proposed data centers in KY totaling $22 billion. Most of that cost is equipment, which the state exempted from the 6% sales tax. Do the math on what that tax break is worth and you get a huge $--money that doesn't go to Medicaid, housing, schools, etc.

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Kentucky's tax break for data centers was estimated at $15M/yr, but the cost could easily balloon to *billions* with the massive hyperscale centers now being proposed. New @kypolicy.bsky.social brief on the incentive & how other states are rethinking their subsidies: kypolicy.org/kentucky-dat...

Is Kentucky About to Give Billions in Tax Breaks to Data Centers? - Kentucky Center for Economic Policy

Under current law, Kentucky could give away billions in tax breaks to data center developers.

kypolicy.org

State and federal cuts to Medicaid will take coverage away from Kentuckians and weaken local economies that depend on health care jobs. Which Kentucky counties will be hurt the most? Find out in the new @kypolicy.bsky.social Medicaid Cuts Vulnerability Index kypolicy.org/kentucky-med...

Medicaid Cut Vulnerability Index Shows Which Kentucky Counties Are Most at Risk - Kentucky Center for Economic Policy

While Kentuckians across the state will be hurt by Medicaid cuts, residents of these counties will be harmed more than others.

kypolicy.org

Support for the Lee Specialty Clinic serves as a reminder that public employees work hard every day on work that benefits others. Public employees keep us safe, teach our kids and build roads. In some cases, like the staff at Lee, they are heroes who transform lives.

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A 2022 law passed by the General Assembly deeply cut the weeks of unemployment benefits laid-off workers could receive. Now with hiring frozen and no net job growth statewide, jobless workers are rapidly running out of benefits. See link to new @KyPolicy piece in next tweet

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NEW: In the final hours of the legislative session, lawmakers expanded tax breaks for already-subsidized industries, continuing a pattern of opaque decision-making that keeps the public in the dark on costly legislation that benefits powerful industries. kypolicy.org/hb-869-tax-b...

On Session’s Final Day, Lawmakers Pass New Tax Breaks for Already-Subsidized Industries - Kentucky Center for Economic Policy

Passed late in the legislative session, HB 869 expands tax breaks for already-subsidized industries such as real estate developers and fuel producers.

kypolicy.org

The huge Budget Reserve Trust Fund balance that the legislature built up using COVID-related surpluses will diminish dramatically because of the spending on local projects and programs contained in the new budget. 1/

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The Senate budget eases some cuts proposed by the House by spending $ that the House put into the already huge rainy day fund. It also includes a 13th check for retirees. But it includes less in K-12 SEEK than the House budget and continues 7% cuts for many agencies.

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When the state refuses to cover the full cost of public school transportation, districts are forced to take money from students and teachers to cover the gap. The House budget continues this trend, underfunding school transportation by $93m in each of the next two years. The Senate should fix this.

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