Cato Institute
Policy Analysis
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Page 44
Kentucky
Paul Patton, Democrat
Legislature: Democratic
Took Office: 12/95
Grade: C
In 1995 Kentucky raised its one-term limit for all
statewide officials to two terms.  Nevertheless, incumbent
governor Brereton Jones decided not to seek a second term,
and, in a state that is incrementally tilting conservative
Republican, the voters promoted the Democrat Patton from
lieutenant governor to governor, though by only a slim two-
point margin.  Patton's first budget contained modest tax
relief in the form of an increase in the state's minuscule
personal income tax standard deduction from $650 to $1,700
over four years (and indexing it for inflation thereafter)
and a four-year phaseout of the provider tax on physicians.
That first biennial budget also provided only a fairly mod-
est increase in spending.  This year, Patton's second budget
contained no major tax relief but did include numerous new
spending initiatives--about $500 million for more than 100
one-time pork-barrel spending projects--and nearly $1 bil-
lion in new debt.  The legislators added more pork projects
of their own and gave themselves a 50 percent pay raise.
Patton has been a major defender and funder of Kentucky's
1990 education reform program, KERA--a misguided multi-
billion-dollar school funding equalization scheme that has
failed to raise test scores.  Throwing good money after bad
won't improve the schools or the economy in Kentucky.
Score Grade Rank
Overall Fiscal Policy Score
49
C
20
Spending Score
56
B
18
Revenue and Tax Rate Score
47
C
28
Amount
-1.9%
Average Annual Recommended Change in Real Per Capita General Fund Spending through 1999
0.9%
Average Annual Change in General Fund Spending Per $1,000 Personal Income 1996-98
-0.9%
Average Annual Recommended Change in General Fund Revenue Per $1,000 Personal Income through 1999
2.1%
Average Annual Change in Real Per Capita General Fund Revenue 1996-98
-0.1%
Average Annual Recommended Tax Changes as % of Prior Year's Spending through 1999
0.0
Change in Top Personal Income Tax Rate, proposed and/or enacted (% points)
0.0
Change in Top Corporate Income Tax Rate, proposed and/or enacted (% points)
14.3
1998 Combined Top Income Tax Rates (Personal plus Corporate) (*0.5)
0.0
Change in Sales Tax Rate, proposed and/or enacted (% points)
0.0
Change in Gas Tax Rate, proposed and/or enacted (cents per gallon) (*0.5)