As we pass the halfway point of our 60-day legislative session, members continue to work on the version of our state budget that will be considered by the House Appropriations and Revenue Committee in the days to come. That bill, House Bill 500, was filed in January as a preliminary version to begin conversations because the executive branch failed to provide much of the information we needed to put full appropriations in the draft. The bill’s sponsor, who chairs the House Appropriations and Revenue Committee, said from the beginning that this legislation is starting point and it will change a great deal before it becomes law.
House Bill 500 is being revised now in committee, through continuous budget review meetings, and will change again when the full House debates it, and then adjusted even more as it goes through Senate committees, the full Senate, and conference committees before a final version is agreed upon by both chambers.
I want to emphasize that not only is this bill a starting point, but the budget process has also changed. As we continue to look at state spending – just in the past few months we learned of more than $800 million in misspent Medicaid payments and millions more spent on out-of-state travel and questionable advertising expenses. We are taking an even harder look at state spending to identify ways we can make state government more effective and efficient in delivering necessary services. I am committed to passing a budget that puts Kentuckians first.
Each budget review (BR) subcommittee meeting is streamed live and recordings are available on the legislature’s YouTube channel, @KYLRCCommitteeMeetings. Below are summaries of the subcommittees’ work this week:
BR on Economic Development, Public Protection, Tourism, & Energy: Lawmakers heard from the Cabinet for Economic Development on updates regarding their strategic goals and programs they developed. Members also heard updates from the Tourism, Arts, and Heritage Cabinet on their projects from this fiscal year including repairs and upgrades to the Kentucky Horse Park. Representatives from the park also presented their funding requests for the upcoming budget, including roof replacement and competition arena upgrades.
BR on Personnel, Public Retirement, and Finance: Members received an overview of the Teacher’s Retirement System’s budget request, including projected funding needs, administrative costs, and anticipated employer contributions for the upcoming fiscal cycle. The presentation outlined the system’s current financial position, investment performance, actuarial assumptions, and long-term liabilities, as well as any proposed adjustments necessary to maintain the fund’s stability. Lawmakers also heard updates on member benefits, staffing and technology needs, and efforts to ensure the continued sustainability of retirement benefits for Kentucky’s public school educators.
BR on Primary & Secondary Education: Lawmakers discussed two programs that partner with Kentucky schools. The first was Teach For America, which is appropriated roughly $700,000 each year by the General Assembly. This program places teachers in classrooms across Eastern Kentucky. Currently the program supports 30 teachers across the ARC region. The second organization was Dataseam, which supports a multifaceted mission spanning from cancer research with the Brown Center for Cancer Research to partnering with school districts to provide technology support in classrooms.
BR on Postsecondary Education: Legislators discussed budget requests with Western Kentucky University (WKU) and the Kentucky Community and Technical College System. WKU presented several investment opportunities to support its Elevate WKU initiative. This includes funding for a new public-private partnership for student housing and funding for a new building for the Potter College of Arts and Letters. KCTCS presented along with CareerViewXR to request $1.8 million for a pilot project to support postsecondary and K-12 career exploration.
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 email at Amy.Neighbors@kylegislature.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.
(HD21 – News from the Office of Rep. Neighbors)