Local Government Finance in Kentucky: Time for Reform?

David Wildasin

No 2007-02, Working Papers from University of Kentucky, Institute for Federalism and Intergovernmental Relations

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.

Pages: 31 pages
Date: 2007-04
New Economics Papers: this item is included in nep-pbe and nep-ure
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