The Commonwealth of Kentucky must live within its means. Although Kentucky is a "balanced budget" state by legal requirement, real annual deficits continued into the mid-2010’s and our overall debt continued to rise. The budget was being "balanced" with accounting maneuvers which work on paper but fail in realty, and the credit rating of Kentucky fell.
Balancing the budget requires either that revenues (taxes, fees, etc.) increase, or expenses decrease, or a measure of both. Kentuckians individually already are taxed significantly and subjected to numerous fees, but revenue can increase. When Kentuckians start businesses, when businesses locate in Kentucky, and when Kentucky businesses expand, more Kentuckians earn a wage and tax revenues increase. Kentucky can create a better climate for job creation by passing legislation addressing its enormous pension debt, making Kentucky a "right to work" state and putting its financial house in order. When Kentucky fully enforces its existing tax code, property taxes and lien system, revenue will increase significantly without creating one new tax.
Further, spending must be decreased, especially in the immediate future. The Commonwealth has decreased spending over recent years, but spending must be at the highest level of prioritization and efficiency. Operating in excess of revenue places a debt burden upon the Commonwealth's children and grandchildren. Families live within their means to support one another, not place debt upon future generations. The Commonwealth must do the same by prioritizing each expense. Spending must be absolutely essential for immediate purposes or long-term investment. Each prioritized expense must then be examined for inefficiency and waste.