A new high for Kentucky's debt

Anita Durairaj

Photo by Giorgio Trovato on Unsplash

Kentucky's debt is projected to become $66.7 billion by 2026 - a new high.

The $66.7 billion projected Kentucky debt for 2026 refers to both the state and local government debt.

Statista, a database company, has analyzed state and local government debt in Kentucky from 1999 to 2020 and into the future up to 2026.

They state that for the fiscal year of 2020, Kentucky's state debt is 15.96 billion U.S. dollars while the local government debt is even higher at 37.48 billion U.S. dollars. Altogether, both debts add up to more than 53 billion dollars.

Statistics show that the state and local debt has steadily been rising since 1999. In 1999, the state debt was only 7.42 billion dollars and the local debt was 15.09 billion dollars. By 2026, the numbers will become the highest it has ever been with a projected debt of 19.92 billion dollars for the state and 46.78 billion dollars for the local government. The total debt would be more than 66 billion dollars.

In Kentucky and all the other states, it is the state government that generates the revenue which is then distributed to local governments in the form of grants.

For the fiscal year of 2020, Kentucky has already received a grade rating of F by a non-profit organization, Truth in Accounting. This is because Kentucky does not have enough money to pay its bills.

Kentucky has been declared to be a "Sinkhole" state because it does not have enough assets to cover its debts.

What do you think about the increasing debt trend of Kentucky's state and local government?

Source: Statista, treasurer.ca.gov, Data-z

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