|
KENTUCKY HOUSE MAJORITY CAUCUS
Contact:
Laura Leigh Goins
Deputy Chief of Staff for Media
Office of the Speaker
(502) 564-4334 office
(502) 682-6718 cell
FOR IMMEDIATE RELEASE
MEDIA RELEASE
House committee approves budget proposal
Plan highlights House mission of investing in the future of Kentucky
Frankfort, Kentucky (January 31, 2024) – After months of efforts to craft a responsible spending plan that balances the state’s current needs and improving its long-term well-being, a House Committee Substitute (HCS) of the House version of the state budget cleared the House Appropriations and Revenue Committee this evening. The bill, HB 6 (HCS 2), continues the House Majority’s commitment to education, infrastructure, and public safety while providing significant support for human services.
Filed by Representative Jason Petrie, Chair of the House Appropriations and Revenue Committee, the two-year, $129.8 billion spending plan includes record funding for K-12 public schools, and strategic investments in public safety, infrastructure, and health services. HB 6 (HCS 2) also includes major investments in mental health and substance abuse recovery, and programs serving the state’s most vulnerable.
“This committee substitute is the next step in the budget process and incorporates both technical changes and additional funding based on ongoing conversations with stakeholders,” Petrie added. “However, it continues to reflect our mission of providing the necessary functions of state government and ensuring every dollar invested benefits all Kentuckians. We’re not looking to score political points or pander to political interests.”
The House Committee Substitute adopted by committee members made several changes to the original version of HB 6, including:
- Increases the K-12 school transportation funding to 100% in FY 26
- Updates the SEEK appropriation unit with new data provided by the Department of Education
- Reduces the number of vacancy credits eliminated and applied to all agencies and exempted critical need classifications in Corrections, Kentucky State Police, Veterans Affairs, and other agencies
- Provides additional funds for construction of new KSP post in Harlan and Richmond
- Funded the HVAC system replacement at the Kentucky Department of Veteran’s Affairs Radcliff Veterans Center
- Includes $10 million for the Kentucky Healthcare Workforce Investment Fund established by the legislature in 2023 RS
- Increases the non-government expense authority for the Department of Military Affairs
- Adds non-government expense authority up to $5 million in the current year and $10 million in FY 25 and FY 26 for the Department of Corrections
- Includes language requested by the administration to provide non-governmental expense authority to the “Appropriations Not Otherwise Classified” budget unit
- Provides $1.5 million maintenance pool for the Kentucky Horse Park
The revised version of the bill still includes language that explicitly states the intent of specific allocations, including a provision that encourages school districts to utilize additional SEEK resources to provide raises for certified and classified staff and report salary schedules and compensation increases. In addition, the bill includes a requirement that school districts publish certain local and statewide assessment information on their websites in an easily accessible manner. Districts would also be required to publish reports on salary schedules.
Appropriations and Revenue Vice Chair Adam Bowling added, “This budget plan continues to provide for our state’s daily needs and leaves us better prepared to handle both the toughest of challenges and the greatest of opportunities. Even with our commitment to responsible spending, HB 6 makes some very meaningful investments, including almost $200 million in funding for the college access program scholarship, $600,000 for the teacher scholarship programs and almost $15 million for a new student teacher stipend.”
Representative Josh Bray, who also serves as Vice Chair of the committee shared, “The budget process is working as it is intended to and we’re seeing a stronger product with each step. The funding for new KSP facilities in Harlan and Richmond in the committee substitute builds on the millions in additional funding we included for KSP raises, new positions in our labs, and new cruisers and lab equipment in the original version of the bill.”
Highlights from the Investing in the Future of Kentucky proposal include:
Providing Opportunities for Kentucky Learners
K-12 Education Funding:
Postsecondary & Workforce Investment:
- Increases by $196 million over the biennium funding for the College Access Program
- Includes an additional $600,000 over the biennium for the Teacher Scholarship Programs
- Increases General Fund by $7.3 million in each fiscal year for a new Student Teacher Stipend Program
- Increases General Fund by $4.8 million in each fiscal year for a Pilot Teacher Recruitment Student Loan Forgiveness Program
- Includes $600 million over the biennium for facility maintenance, renovations, and repairs for each postsecondary institution
- Provides $36 million each year to support a 4% inflationary increase to each public postsecondary institution, including Kentucky Community Colleges and Technical School
- Includes $3.9 million each fiscal year to increase the Postsecondary Performance Fund.
- Provides General Fund allocation for 45 new staff positions and increases the Federal Funds appropriated in each fiscal year for an additional 45 staff positions within the Office of Unemployment Insurance
- Reauthorizes funding from previous budgets to allocate $7.5 million in General Fund, $30 million in Restricted Funds, and $10 million in bond funds for replacing the unemployment system
Building a Healthier Kentucky
- Funds 100 new social worker positions over the biennium with an allocation of $15 million
- Includes $12 million in each fiscal year to maintain the $2 per child rate increase in Child Care Assistance provider reimbursement
- 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 million in each fiscal year for added contracted services to address the backlog in long term care certification surveys
- Provides an additional $14.4 million for fees 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 $2.6 billion in funding for Medicaid benefits growth in FY 24 and FY 25, including $456.2 million in state restricted and general fund dollars
- Includes $76.3 million over the biennium for an additional 1,000 Michelle P. waiver slots to assist individuals with intellectual or developmental disabilities live as independently as possible
- Allocates $78.1 million over the biennium towards 500 new slots in the Supports for Community Living waiver program to help those with intellectual or developmental disabilities live as independently as possible
- Provides $50.6 million over the biennium for 1,000 additional slots in the Home and Community based waiver program
- Increases nursing home facility reimbursement rates with an additional investment of $454.8 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 $85.5 million biennium funding for implementation of a waiver to serve those with substance use disorder
- Provides $330.8 million in additional funds to maintain the increase in reimbursement rates for Medicaid 1915(c) Home and Community Based Services (HCBS) waivers
- Allocates an additional $256.5 million over the biennium to implement a waiver to provide HCBS to those with serious mental illness or substance use disorder
- Increases by $14.7 million in FY 26 funding for the development of a HCBS(C) waiver for Kentucky children with severe emotional disabilities, autism spectrum disorder, and/or intellectual disabilities
- Provides an additional $75.8 million over two years to implement a waiver for substance use disorder treatment for incarcerated individuals returning to the community
- Includes an additional $29.2 million for increased costs due to staffing and number of patients in state-run psychiatric and immediate care facilities for individuals with intellectual disabilities
- Allocates $9.8 million more towards staffing and operations at local health departments
- Provides an additional $10 million over the biennium for pediatric cancer research
- Increases funding for the Human Immunodeficiency Virus Program by $30 million over the biennium to address increased enrollment and program costs
Investing for a Safer Kentucky
- Includes $24.1 million in additional funds over the biennium to the KSP for pay increases for 1,013 troopers and commercial vehicle enforcement officers
- Provides $3.4 million over the biennium to support a 10% salary increase for 150 positions in the KSP forensic laboratories
- Increases by $2.3 million in FY 25 and $3.98 million in FY 26 funding to support an additional 20 Probation and Parole Officer positions and operating costs.
- Provides $2.6 million in each fiscal year towards the purchase of a total of 50 marked and 50 unmarked KSP cruisers
- Increases KSP funding by $6.4 million in FY 25 and $17.7 million in FY 26 to fund Trooper cadet classes of 75 in each year
- Includes an additional $27.9 million for the unified prosecutorial system for raises and new positions in commonwealth’s attorney and county attorney offices, a new case management system, and the rocket docket system
- Increases by $2.2 million over the biennium for toxicology and DNA equipment as well as increased costs for evidence collection kits
- Provides $480,000 in additional funds to support the transition to agency-issued cell phones, which also replaces antiquated digital audio recorders and cameras
- Includes $710,000 in each fiscal year to both support seven additional full-time positions within the Sex Offender Registry program and provide for increased software service contract fees
- Provides an additional $35 million over the biennium to increase access to the Body Armor Grant Program administered by the Attorney General’s Office to local governments
- Increases funding by $20 million in FY 26 to support a medical services contract for primary care and mental health care at all juvenile justice facilities
- Includes $7.8 million in additional juvenile justice funding in each fiscal year towards alternative to detention programming
- Provides $7 million in additions funds over the biennium to support additional positions, screening tools, and training to implement evidence-based programming within juvenile justice
- Increases funding for debt service on juvenile justice capital construction projects to a total of $28.5 million over the biennium with an additional $3.4 million in FY 26
- Provides $169,900 in each fiscal year to support leasing 22 police-related vehicles for law enforcement vehicle operation training
· Includes $2.8 million in each fiscal year to support a transfer from the KLEFPF to the Office of the KY Law Enforcement Council Support
· Increases funding to support additional law enforcement instructors by $1.3 million in FY 25 and $1.4 million in FY 26
· Provides $325,000 in FY 25 to update the system used to track inmate, probationer, and parolee sentences, program credits, and services received for proper sentence completion dates
· Includes $42.4 million over the biennium towards the expansion of the Little Sandy Correctional Complex to support staffing, medical care, education programming, addiction services, and reentry efforts
· Includes $128.9 million in FY 25 and $30.7 million in FY 26 in bond funds for debt service to support capital projects at adult correctional institutions
· Increases funding to local facilities by $863,100 in each fiscal year to support medication costs for medically-assisted treatment required by the Americans with Disabilities Act
· Provides $11.26 million in additional funds in each fiscal year to support additional positions and operating costs associated with state assumption of the Jefferson County Public Defender’s Office
Honoring Service and Preparing for Disasters
- Provides for personnel and operating costs associated with the operation of the new KDVA nursing home in Bowling Green with an increase of $12.4 million in FY 25 and $15.6 million in FY 26
- Increases funding by $320,000 in each fiscal year to provide additional burial costs for National Guard and Reserve veterans, who may not be eligible for federal benefits
- Includes an additional $76,000 in FY 25 and $152,000 in FY 26 to increase grant amounts to Veterans Service Organizations
- Provides $1.1 million in FY 25 and $2.2 million in FY 26 to Kentucky Emergency Management to replace the loss of federal funding as a result of the closure of the Bluegrass Army Depot
- Increases by $1.5 million over the biennium to provide the state match requirement to draw down additional federal funds for the Emergency Management Performance Grant Program
- Increases General Fund by $8.3 million in FY 25 and $7.8 million in FY 26 towards personnel and equipment costs related to the implementation of the Kentucky Urban Search and Rescue team created by the legislature in 2023
- Includes debt service to support capital projects totaling $68 million in FY 25 and $4 million in FY 26 in bond funds for various Capital Projects within the Department of Military Affairs; $1 million in each fiscal year in Investment Income, and $261 million in FY 25 in third party financing
Ensuring State Workforce Competitiveness & Addressing Public Pension Liabilities
Current State Employee Workforce:
- Includes language requiring the Secretary of the Personnel Cabinet to contract with an independent consultant to review all personnel and payroll records of all current employees from January 1, 2018 thru June 30, 2024, to determine the exact salary compression issues which exist in the executive branch
- Provides funding for a 4% inflationary salary increase in FY 25 and a 2% increment in FY 26
Kentucky Public Pension Authority:
- Provides $500 million to pay toward the unfunded liability of the Kentucky Employees Non- Hazardous Pension system
Kentucky Teacher’s Retirement (KTRS):
- Increases funding to the KTRS pension by $159.2 million in FY 25 and $302.1 million in FY 26, as well as directing the use of $29.3 million in FY 23 excess to continue paying not only the amount required by law, but meeting the actuarially determined contribution in both fiscal years
- Authorizes the use of $11 million in existing excess state funding for retiree health insurance in FY 25 and increases funding by $6.5 million in FY 26 to continue covering the cost of coverage for members who have retired since July 1, 2010, but are not yet eligible for Medicare
- Amends sick leave liability reporting language to require the full actuarial cost of member sick leave as a percentage of payroll and in total dollars by debt source by December 1, 2025 in order to get a more accurate accounting of the liability
Investing in Rural Kentucky
- Provides an additional $30.1 million in FY 25 and $25.3 million in FY 26 for expansion of the Clean Water State Revolving Fund
- Increases funding by $84.6 million in FY 25 and $41.1 million in FY 26 for expansion of the Drinking Water State Revolving Fund
- Includes an additional $217 million in FY 25 and $868.9 million in FY 26 for broadband deployment as part of the federal Broadband Equity Access and Deployment Program (BEAD)
- Increases funding for the Rural Mental Health, Suicide Prevention, and Farm Safety Program by $400,000 in each fiscal year
- Appropriates funding of $150,000 in FY 25 to create a comprehensive agricultural plan
- Increases funding by $153,900 in FY 24, $443,900 in FY 25, and $443,900 in FY 26 for additional personnel for emergency preparedness within the Department of Agriculture
- Increases support by $1.6 million over the biennium to hire additional personnel for regulatory field services within the Department of Agriculture
- Provides an additional $1.2 million over the two fiscal years for additional project managers to assist with state park projects funded by the legislature in FY 22 and FY 23
- Includes debt service to support state parks capital projects totaling $132.2 million over the biennium.
- Increases funding by $2,050,000 in FY 25 for Kentucky Exposition Center equipment replacement
- Increases funding by $1.7 million in FY 24, $2,158,500 in FY 25, and $2,163,100 in FY 26 for Kentucky Exposition Center operations growth
- Includes an additional $48.1 million in debt service to support capital projects at the Kentucky Exposition Center
Increasing Government Transparency & Accountability
- Increases funding $4.5 million over the biennium to assist local governments with the cost of audits
- Allocates an additional $36.7 million over the two fiscal years to support the transition of the CHFS Office of the Ombudsman and Administrative Review to the Auditor of Public Accounts on July 1, 2024, as enacted in 2023 SB 48
- Includes an additional $2.25 million in each fiscal year to support lost revenue replacement
- Provides $750,000 in FY 25 to support the Jefferson County Public Schools Audit and allows the Auditor of Public Accounts to request as a Necessary Government Expense (NGE) up to $750,000 in FY 26
In addition to the operational budget proposed in the HB 6, committee members also approved HB 1, an investment proposal that uses excess funds already collected in the state budget reserve trust fund to make significant one-time investments in infrastructure, economic development, public safety, and state employee and teacher’s pension liabilities.
For more information about HB 6 and the work of the Kentucky General Assembly, visit https://legislature.ky.gov.
|
