Representative Amy Neighbors Legislative Update: Budget Highlights

Building A Healthier Kentucky

Writing a budget for the state is similar to what many Kentuckians do for their families and personal lives. While we would all like to be able to spend every dollar on whatever we want, for most of us it means balancing our needs and our wants – with the high priority placed on making sure we meet our obligations. So, as long as we have a mortgage, rent, or car payment, we must make that payment first.

One of the biggest obligations Kentucky has can be found in finding ways to build a healthier Kentucky. That means making sure our most vulnerable have access to care, ensuring children have access to quality childcare, and addressing the chronic health conditions that plague so many of our people. At the same time, we also have a responsibility to helping people become more independent. This is not always an easy feat, especially when programs are dually operated with the federal government. However, it remains a major legislative priority.

This session, the budget we passed provided historic levels of funding for health and human services, but we worked to target that funding into areas that make the most out of every dollar. For example, an increase in child care assistance funding, additional slots in a program that provides services to individuals with intellectual or developmental disabilities (Michelle P Waivers), and programming for those fighting addiction. Here are a few specific examples of what is included in the budget (HB 6) that took effect on July 1:

Funds 100 new social worker positions over the biennium with an allocation of $9.6 million in restricted funds

Provides $2 million in each fiscal year for the Employee Child Care Assistance Partnership matching contributions

Maintains the $2 per child rate increase in Child Care Assistance provider reimbursement

Increases by $49 million in general funds over the biennium to maintain CCAP reimbursements to child care providers for families at the 80th percentile of the market rate survey

Provides $8 million in FY 25 and $11 million in FY 26 for a relative caregiver (kinship) reimbursement rate increase

Includes an additional $12.8 million in FY 25 and $18.5 million in FY 26 in general funds to support CCAP initiatives, including an income exclusion for eligibility determinations for child care providers; a six-month transition for families no longer eligible for CCAP, background check fees; and the establishment of an Innovations in Early Childhood Education Delivery Grant Program

Provides an additional $2.5 million in fiscal year to support the Early Childhood Development Scholarship Program

Increases foster care per diem rates with a $13 million increase in funds

Includes $10 million in each fiscal year to continue the commitment to expanding the senior meals program

Provides an additional $1.1 million over the biennium to support staffing and operations at the Office of Dementia Services and the state long-term care ombudsman

Provides an additional $3.6 million for the state match to access the federal data hub used for income verification for Medicaid

Allocates an increase of $548.1 million towards Medicaid benefits in FY 24

Provides an additional $394.5 million in general fund over the biennium for Medicaid benefits growth

Increases General Fund by $3.6 million and Federal Funds by $9.1 million in FY 25 for 250 additional Michelle P. waiver slots and increases General Fund by $10.9 million and Federal Funds by $27.4 million in FY 26 for 500 additional Michelle P. waiver slots

Allocates $13 million in FY 25 for 125 new slots and $39.1 million in FY 26 for 250 new slots in the Supports for Community Living waiver program to help those with intellectual or developmental disabilities live as independently as possible

Provides $8.5 million in FY 25 for 250 additional slots and $25.4 million in FY 26 for 500 million additional slots in the Home and Community based waiver program

Includes an additional $726.8 million in FY 25 and $767.8 million in FY 26 for the continuation of KCHIP benefits and services

Increases nursing home facility reimbursement rates with an additional investment of $455 million over the biennium

Provides an additional $31.3 million over the biennium for implementation of a waiver to provide services to those with serious mental illness

Increases by $85.6 million biennium funding for implementation of a waiver to serve those with substance use disorder

Provides an additional $75.9 million over two years to implement a waiver for substance use disorder treatment for incarcerated individuals returning to the community

Allocates $1.9 million more towards staffing and operations at local health departments

Provides an additional $5 million over the biennium for pediatric cancer research

Increases by $1.7 million over the biennium for the office of Medicaid Fraud and Abuse Control and adds reporting requirements

Increases support for the Farms to Food Banks by $250,000 in FY 25 and $400,000 in FY 26

As always, I can be reached anytime through the toll-free message line in Frankfort at 1-800-372-7181. You can also contact me via e-mail at amy.neighbors@lrc.ky.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.

(Laura Leigh Goins, Deputy Chief of Staff for Media Relations – House Majority Leadership)