Louisville, Ky. — You Decide, Kentucky! (YDK!) is gearing up efforts to call for the passage of House Bill 475, which would amend Section 181 of Kentucky’s Constitution and modernize the Commonwealth’s outdated local revenue code. If successful, the organization says the impact would be transformational for future generations of Kentucky.

The statewide organization launched in 2020 to support amending the Kentucky Constitution to give the General Assembly the authority to implement revenue reform at the local level. The constitution currently prevents local municipalities from options to help them compete, grow, and thrive – and HB 475 is the first step toward clearing that obstacle.

YDK! Executive Director Lena Muldoon will join Chairman Michael Lee Meredith (R-19), the Kentucky League of Cities, the Kentucky Association of Counties, and economic development leaders from across the state to provide testimony in support of amending section 181 of the state constitution at the Interim Joint Committee on Appropriations & Revenue on Tuesday, Oct. 19.

With their eyes on the coming legislative session, YDK! is educating the public on the need to remove the constraints of Section 181 of Kentucky’s Constitution and empower local governments and citizens to have input on what revenue streams will improve the quality of life in their communities. The statewide group is educating local residents and organizations to imagine the possibilities and work together to improve their hometowns – ultimately ensuring that the potential constitutional amendment passes on the ballot. With the General Assembly prioritizing updating the entire state tax code in recent years, from income tax bracket consolidation in 2018 to implementing income tax rate reduction plans in 2022, YDK! believes that local revenue diversification must come next.

The Kentucky House and Senate must pass HB 475 with a three-fifths majority in each chamber. During the 2022 legislative session, HB 475 passed the House with overwhelming support, and will be filed again during the upcoming 2023 session. Once passed, voters would then decide the referendum on the 2024 November ballot. If voters agree, legislators could then debate and enact bills in an upcoming session to modernize revenue options for cities and counties.

“We have taken on an important task of educating our fellow Kentuckians on the importance of revenue diversification that empowers local decisions and investments that can transform communities,” YDK! Co-Chair Carter Hendricks said. “ If Kentucky cities and counties are going to grow and create more competitive jobs like Nashville, Charlotte, Indianapolis, we have to first fix the building blocks of our local government structure. And the outdated constitution must be modernized to reflect a 21st-century economy and workforce.” Currently, 38 states have the ability for local revenue decision-making, including Indiana, Tennessee, North Carolina, Florida, Ohio, and Iowa.

Muldoon, who joined YDK! as its first Executive Director in September 2022, has begun making connections across the state to drum up support for the cause. She most recently served as Louisville Metro Government’s Office of the Mayor, where she has spent the last several years overseeing legislative strategy and execution as Intergovernmental Affairs Liaison. “Local communities need relief from constitutionally-imposed limits on their taxing authorities. YDK! is working every day so that voters can amend a 130-year-old, archaic statute of the Kentucky constitution that restricts their community voices ,” Muldoon said. “Such a change will make Kentucky more competitive, fair, and provide more flexibility to our local governments in setting the course for their own futures. The time is now.”