In April of 2017, it was announced that a new Aluminum plant would be opening up in Kentucky thanks to up to $25 million in incentives it was receiving from the state of Kentucky.
Braidy is in line to receive up to $25 million in incentives from the state. Wednesday, the Kentucky Economic Development Finance Authority gave preliminary approval to up $10 million in tax incentives, which the company would get only if it meets investment and job targets over the next 15 years.
Meanwhile, The Republican Governor, Matt Bevin, has been busy instituting cuts to education, health care, and infrastructure.
Gov. Matt Bevin’s proposed budget could put a squeeze on local school districts as they’ll be asked to pay more for transportation and to make up a decrease in state funding.The proposed budget cuts spending by 6.25 percent and eliminates 70 programs, most of which were related to either Preschool through 12th grade education or higher education.
Gov. Matt Bevin’s administration cut dental and vision coverage for as many as 460,000 Kentuckians after his Medicaid overhaul plan was rejected in court.
Kentucky highway projects could be delayed because of a $112.5 million cut to the state Transportation Cabinet budget.
Gov. Matt Bevin made the cut this week. The Bevin administration said the cuts were necessary because revenue into the state’s Road Fund was lower than expected.
The $25 million promise to Braidy Industries has come under intense scrutiny from the media and the Democratic Attorney General, as it should. The GOP legislature, on the other hand, rubber-stamped the tax giveaway without a second thought.
The company could get another $15 million from the state legislature. Republican Gov. Matt Bevin asked state lawmakers for the money last month. Lawmakers did not flinch, unanimously approving the money on the final day of the legislative session despite not knowing how it would be spent. Republican Senate President Robert Stivers said he did not know about the project’s details until Tuesday.
For 550 jobs, Kentucky promised $25 million.
Despite the intense scrutiny of the Braidy Industries deal, the State of Kentucky keeps giving away tax incentives as if they were candy on Halloween. These stories are just from the last 2 weeks:
For 31 jobs, Kentucky promised $300,000: Precision Strip Doubles Investment at Bowling Green, Kentucky, Plant
For 62 jobs, Kentucky promised $700,000: Tier3 Technologies to relocate in Louisville with $2.4M investment creating 62 jobs
For 75 jobs, Kentucky promised $750,000: Business Spotlight: Investors Heritage forges ahead with doubling jobs
For 50 jobs, Kentucky promised $1,000,000: United Systems and Software announce $5.3M expansion in Marshall County creating 50 jobs
For 37 jobs, Kentucky promised $1,500,000: Plastics company coming to Winchester
For 25 jobs, Kentucky promised $250,000: California-based truck rack producer to locate in Albany, investing 1.35M and creating 25 full-time jobs
For 156 jobs, Kentucky promised $1,800,000: Tractor Supply Co. plans $8.5M investment; will add more than 150 jobs in Simpson County
Go back further than 2 weeks, and the line of companies reaching out their hand for Kentucky taxpayer money goes on and on. The jobs being created might sound good, but in the grand scheme of things, they are peanuts. The grand total of promised jobs from these recent stories and the large Braidy Industries investment is only 955 jobs. Kentucky has about 2 million people employed right now. These jobs that were paid for by tax incentives amount to only 0.05% of jobs in Kentucky.
But the money being paid out by taxpayers for these jobs is by no means peanuts. Just from these recent stories and the Braidy Industries investment, Kentucky is handing over $31.3 million. This amount is a little less than a third of the amount Matt Bevin cut from the state’s transportation budget two years ago
This isn’t free market capitalism. This is corporate welfare. And it is being paid for by cutting funding for needed government services, while it barely makes a dent in overall employment.