The fallout for states like Kentucky from the debt limit debate hasn’t gotten much attention yet, but that is all about to change. Consider, for example, Medicaid.
Kentucky gets more of its Medicaid funding from Washington D.C. than all other states except Mississippi and West Virginia. Those payments are about to be cut just as ObamaCare puts millions more people on the Medicaid rolls. Kentucky just “balanced” its 2011 Medicaid budget by borrowing $166 million we now have to find for 2012.
Do you see where we are going with this?
Most people have no idea how bad Kentucky’s fiscal situation is. Uncle Sam bailed us out in the last biennium with $3.4 billion in stimulus funds we won’t be seeing again. In the last three years our state debt load has increased by another $3 billion, mostly because the bond rating agencies have viewed Kentucky as a government-sponsored entity like Fannie Mae or Freddie Mac. Wonder how long that will last?
Republicans and Democrats in Frankfort hesitate to mention this gathering storm because leadership of both parties have made their political careers on overspending. They don’t even want to think about these two major funding sources shrinking. But we can’t afford to ignore this.
That’s why Kentucky Knows Best PAC is hosting the State Debt Limit Town Hall on August 2 at 7pm at the Scott County Courthouse in Georgetown. Please join us if you can and forward this message as widely as possible.
If you would like to help support the work of Kentucky Knows Best PAC, please consider making a donation today. The legal maximum limit contribution is $1500, but any amount will help. Thank you for all you do.
Kentucky Knows Best PAC