House Bill 1 an ‘Unfunded Mandate’ on Schools, Local Government says House Republican Floor Leader

Minimum wage bill will also cost nearly 14,000 Kentuckians their jobs.  Attached are fiscal impact studies done by the LRC on the fiscal impact of HB 1 on local school districts, city and county government, and jobs in Kentucky

FRANKFORT, Ky. (February 6, 2014) – House Republican Floor Leader Jeff Hoover, R-Jamestown, said today on the floor of the Kentucky House of Representatives that passage of House Bill 1 will place an unfunded mandate of $40.4 million on local schools, and $42 million on city and county governments over the next 10 years if the bill becomes law.

“When we started this session, we were told and many of us stated that increased funding for education is a priority for Kentucky,” said Leader Hoover during his floor speech.  “How can we stand here with a straight face and say that education funding is important when we are placing a $40.4 million burden on our local school systems at a time when our teachers haven’t received raises in years, and many of our student textbooks are falling apart.”

Leader Hoover and other House Republicans also discussed how House Bill 1 would be kill jobs in Kentucky.  According to a review by LRC economists, increasing the minimum wage would cost nearly 14,000 Kentuckians their jobs, on top of impacting numerous small businesses that may have to close their doors or be placed at a economic disadvantage with border states like Tennessee.

House Republicans also questioned the percentage of impact on those currently earning minimum wage in Kentucky.  The Bureau of Labor Statistics data shows that only 60,000 of Kentucky’s 1.14 million hourly wage workers are paid at or below the minimum wage level.  And of those 60,000 workers, an estimated 38,000 are either part time, or college or high school students.

Leader Hoover also took several groups to task, including the Kentucky League of Cities, the Kentucky Association of Counties, and the Kentucky Education Association for not speaking out on the fiscal impact HB 1 could have on their members.

“It appears these groups are playing their own version of Punxsutawney Phil, sticking their heads out to see who the sponsor of HB 1 is, then going back into hiding for another six weeks,” Leader Hoover said.

Fiscal Impact Studies of HB 1

Fiscal Impact Study of HB 1 on Kentucky jobs.pdf

Fiscal Impact Study of HB 1 on local government.pdf

Fiscal Impact Study of HB 1 on public school districts.pdf


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