Permanent income tax reductions went into effect in Kentucky on Jan. 1.

Some residents said they are concerned about the effects the cuts will have on education, affordable housing and public services.

House Bill 8, passed last year, reduces the state's income tax rate by 0.5%.

Seth Littrell, president of United Campus Workers of Kentucky, is among critics of the move, and thinks the General Assembly should instead use its budget surplus, largely padded by pandemic-era federal funding, to boost services for the public's benefit.

"We're talking about better road conditions, we're talking about public projects, we're talking about libraries, we're talking about schools," Littrell outlined. "These are things that every Kentucky family uses and needs."

According to the Kentucky Center for Economic Policy, the permanent tax cuts disproportionately benefit the state's wealthiest residents. Supporters argued the cuts will make Kentucky more competitive for attracting businesses, and will put more money into workers' pockets.

Darrell Parker, a Hazard resident, said he sees firsthand how dwindling public resources have affected communities in eastern Kentucky. He believes housing for those coping with the flood disaster should be a priority for state lawmakers.

"There's still people living in trailers now," Parker noted. "The housing crisis is at an all-time high, that and transportation in our area. And of course, the flood didn't help with any of that, just made it worse."

Annette Hines, co-founder and executive director of the nonprofit group Appalachian GameChangers, pointed out affordable housing is increasingly out of reach for low-income Kentuckians. She is worried tax cuts will continue to shrink public funds available for helping families and worsen homelessness.

"And they live in public housing, and they can't afford to pay the rent there, even in public housing," Hines emphasized. "I've got people that have HUD vouchers and Appalachian Housing vouchers, and they can't find houses, because there's no homes."

According to the Homeless and Housing Coalition of Kentucky, one in four households in the state pays more than 30% of their income toward housing, including homeowners. And among low-income renters, six in 10 pay more than half of their income for housing.

North Dakota is no stranger to public pension debates. States face pressure to keep retirement systems well-funded and new data show most Americans place great value on such benefits for both government and private-sector workers.

According to the National Institute on Retirement Security, 86% of Americans believe all workers, not just those employed by state and local governments, should have a pension. There are similar approval levels when asked how important public pensions are in recruiting teachers and public safety workers.

Dan Doonan, executive director of the institute, suggested it is not too surprising to see the results.

"Pensions, along with other benefits, are part of creating that culture of careers and not jobs," Doonan explained.

Starting in January, North Dakota will close its main public pension plan for new hires, who will instead be offered a 401(k)-style benefit. The move followed debate over whether it was the right way to address a $1.9 billion unfunded liability. Backers argued it protects benefits for existing workers and taxpayers but skeptics contended it makes it harder to attract workers to the public sector.

Doonan noted the survey results overlap with the idea maintaining an experienced public-sector workforce is a good thing for community members and not just the employee and employer.

"In general, when public services are done well, they're often invisible, right?" Doonan emphasized. "We want good roads, we want safe communities, and I think Americans understand the role of having career public servants in terms of delivering those outcomes."

The Bureau of Labor Statistics said state and local governments employ about 20 million workers, which represents about 13% of the U.S. workforce.

As Nebraskans anticipate the upcoming holiday season, some might also be looking ahead to the 2025 tax season, which will include a new tax credit for family caregivers, including those looking after military veterans.

Starting in 2025, a new state law provides eligible family caregivers up to $2,000 in tax credits for out-of-pocket expenses. The cap increases to $3,000 if the family member receiving care has dementia or is a veteran.

Jina Ragland, associate state director of advocacy and outreach for AARP Nebraska, said those who served have access to care benefits through the Department of Veterans Affairs but added it sometimes is not enough.

"Because some of their service-related illnesses or injuries, they extend beyond what they're able to afford, or maybe what the coverage is through the VA," Ragland explained.

She pointed out it puts more pressure on loved ones assisting them on a daily basis. During National Veterans and Military Families Month, supporters of the new law hope more families will see if they are eligible. Ragland noted while it helps reduce the financial strain, greater awareness of resources is also needed, to help all family caregivers avoid burnout.

Ragland emphasized one example is providing caregivers information about where to turn for guidance when a loved one is first discharged from a hospital. She argued entities at all levels need to maintain progress, because their outreach shows a demand for solutions.

"Over 90% of Nebraskans say that they want to age in place with the lowest level of care," Ragland reported. "In order to do that, oftentimes we have to rely on family caregivers."

There are no age restrictions to qualify for the tax credit. As for eligibility factors, the law includes an income limit of $50,000 dollars for individuals and $100,000 for married couples.

Health care providers and schools across North Carolina could soon benefit from tax credits to help projects get off the ground and serve thousands of people.

The Self-Help Ventures Fund, a North Carolina-based nonprofit focused on expanding economic opportunities in underserved communities, recently secured a $50 million boost from the U.S. Treasury's New Markets Tax Credit program.

Sarah Brennan, structured finance sector leader at the fund, said the tax credits will support critical community projects that otherwise could not move forward, driving development where it's needed most.

"It can be really difficult for a community facility to pull together the millions of dollars in equity that they would need to get traditional financing," Brennan explained. "They are able to go forth and build projects that literally would not have been able to happen otherwise."

She noted the fund will roll out the credits across six to eight projects in the next few years, with a focus on health and education facilities in North Carolina and several other states where they operate. The organization pointed out how transformative the investments can be, funding essential services such as health clinics and schools for areas most in need.

Emma Haney, director of business development and project management for Self-Help Ventures Fund's real estate team, said with construction costs soaring, the need for this type of funding is more critical than ever.

"Most projects that you could have filled the gap with $5 million in allocation or around that much, you might need $10 million or $15 million now," Haney pointed out. "It's just sort of an exponential increase in the need per project with a finite amount of resources."

With the latest allocation, Self-Help has administered tax credits totaling $483 million. The organization hopes Congress will expand the tax credit program to keep up with demand, as each dollar plays a vital role in lifting underserved communities.


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