LEGISLATIVE UPDATE
Representative Marianne Proctor
April 21, 2026
State budget become law: Responsible spending, making state government better at serving Kentuckians
The 2026 General Assembly has now concluded, marking the end of a busy legislative session in Frankfort. During this year’s 60-day legislative session, lawmakers filed a total of 1,291 bills and, as of April 15, 171 have become law. Lawmakers will not return for a regular session until January 5, 2027, but work will continue throughout the year as the interim period begins in June. During that time, House and Senate members will review how recently enacted legislation is being implemented across state government and study new issues to prepare for the 2027 session.
Among those measures passed into law is HB 500, a $32.4 billion, two-year budget that reflects the simple but significant idea most families already live by: spend responsibly, set priorities, and live within your means. State government should do the same and has a responsibility to focus on core needs and look constantly for ways to operate more efficiently.
HB 500 prioritizes the basics: public education, public safety, veterans’ services, and maintaining higher education facilities.
However, the bill also pushes state government agencies and programs to tighten operations and eliminate waste. That includes reducing or ending outdated programs, scaling back expansions made during the pandemic, and cutting duplicate or unnecessary spending. To further incentivize these efforts, the budget reduces spending across many cabinets and programs and includes a 4% base reduction in executive branch spending in the first fiscal year and an additional 3% cut in the second fiscal year. The budget proposal gives agencies flexibility in determining individual program funding to identify the best areas to make reductions. Agencies are being encouraged to find efficiencies within their own budgets and focus dollars where they have the most impact.
That effort is especially important given what oversight reports have shown. The state auditor has identified more than a billion dollars in questioned costs, waste, and mismanagement across state government in recent years, including areas like Medicaid, transportation, and state travel. Those findings underscore the need for ongoing scrutiny and stronger accountability, and they position Kentucky as one of the first in the nation to actively pursue stronger government accountability – not because we face shortfalls but rather because it is the right thing to do.
At the same time, funding for K-12 education, Medicaid, corrections, juvenile justice, and veterans’ programs remains intact and, in many cases, received a modest increase. The goal is not to weaken essential services, but to make sure they are supported in a more sustainable way. In fact, we increased funding for K-12 education, as well as other areas that required it. We also provided for a 2% raise across state government and fully funded the Kentucky Employee Health Benefit plan’s increased costs, as well as continuing our efforts to shore up public pensions.
Even with these protections, the budget also highlights the significant scale of ongoing spending. Medicaid alone accounts for roughly $6 billion in spending over the biennium, underscoring the importance of long-term reforms aimed at improving both outcomes and efficiency. Across state government, healthcare obligations and program costs continue to rise, requiring constant evaluation of how services are delivered and funded.
The bottom line is straightforward: taxpayer dollars should be treated with care. Just like Kentucky families, state government has to make choices, set priorities, and avoid waste. We have to make sure every dollar is spent as wisely as possible.
In addition to HB 500, lawmakers approved nearly a billion dollars in funding for the judicial branch (HB 504) and $182 million in allocations for the legislative branch budget (HB 503). The legislature also passed a $7 billion operating budget for the Transportation Cabinet (HB 501); a $4.6 billion road construction and maintenance plan (HB 502); and $70 million in funding for local road projects (HJR 76).
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 Marianne.Proctor@kylegislature.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.
LEGISLATIVE UPDATE
Representative Marianne Proctor
April 14, 2026
Proctor’s measure to protect children from grooming becomes law
HB 4, sponsored by State Representative Marianne Proctor of Union, was received by the secretary of state from the governor and will now become law. The measure defines and criminalizes behavior commonly referred to as “grooming.” Under provisions of HB 4, grooming refers to the manipulative and deceptive process by which a predator builds a relationship with a vulnerable person, such as a child, to gain their trust and access for abuse or exploitation.
“This bill was prompted by a constituent’s report of grooming behavior that current statutes failed to adequately address,” Proctor said. “After consulting with local prosecutors and law enforcement, it became clear that grooming is a deliberate step toward exploitation. HB 4 takes action to ensure Kentucky law provides the necessary protections for our youth.”
HB 4 establishes clear criminal penalties for grooming offenses based on the age of the victim and the authority of the offender. The offense would be classified as a Class A misdemeanor when the perpetrator is 18 or older and the victim is younger than 14. If the victim is under 12, the crime would rise to a Class D felony. When the perpetrator holds a position of authority – such as a teacher, coach, or other trusted adult – the penalties increase to a Class D felony if the victim is under 18 and a Class C felony if the victim is under 12.
“The enhanced penalties reflect the gravity of these crimes and the lasting harm they cause,” Proctor added. “Protecting children is not optional. It is our responsibility. This legislation draws a firm line, strengthens accountability, and sends an unmistakable message: those who prey on children will face serious consequences under Kentucky law.”
Kentucky will now join Ohio and several other states that have enacted similar protections for children.
“This legislation is about protecting Kentucky’s children before abuse ever occurs,” Sen. Lindsey Tichenor (R-Smithfield) said. “By clearly defining and criminalizing grooming behavior, we are giving law enforcement the tools they need to intervene early and hold predators accountable.”
To view the final version of HB 4, visit legislature.ky.gov or click here.
LEGISLATIVE UPDATE
Representative Marianne Proctor
April 7, 2026
Lawmakers recess for veto period
Before adjourning in the early hours of April 2, the legislature wrapped up months of work and sent dozens of bills to the next step in the legislative process – gubernatorial review. As part of our system of checks-and-balances, governors have ten days (not including Sundays or holidays) to consider legislation approved by the legislature. They can sign it into law, veto it, or allow it to become law without their signature. If a governor chooses to veto legislation, the measure returns to the legislature where the veto can be overridden. Essentially, a veto provides notice that the state’s executive officer disagrees with a policy or action, but the legislature remains the state’s lawmaking body.
Among the bills we sent to the governor’s desk this week are the following:
HB 500 would provide $32 billion in funding for executive branch agencies and programs for fiscal years 2027 and 2028.
HB 501 would provide $7 billion to fund Kentucky Transportation Cabinet activities, not including the six-year road plan.
HB 502 would provide a $4.6 billion two-year roadmap for the construction and maintenance of Kentucky’s transportation infrastructure.
HJR 76 would provide $70 million in funding for the Local Assistance Road Plan (LARP) with local projects that earned top ratings of 8, 9, and 10, including $68.2 million dedicated to county and city road resurfacing projects – bringing critical improvements to communities across the Commonwealth.
HB 503 would provide $182 million in funding for legislative branch operations for fiscal years 2027 and 2028.
HB 504 would provide nearly $1 billion in funding for the operation of the state’s judicial branch for fiscal years 2027 and 2028, including the Supreme Court of Kentucky, Court of Appeals, and circuit and district courts.
HB 900 would allocate $1.7 billion in one-time funds from the Budget Reserve Trust Fund for infrastructure, economic development, and quality of life improvements across the state.
HB 2 would align Kentucky’s Medicaid Program with federal changes to improve health outcomes and ensure eligibility, as well as improve program management.
HB 4 would define and criminalize behavior commonly referred to as “grooming.” Under provisions of HB 4, grooming refers to the manipulative and deceptive process by which a predator builds a relationship with a vulnerable person, such as a child, to gain their trust and access for abuse or exploitation.
HB 5 would expand prison-based education and job-training programs proven to reduce crime by developing a model vocational campus at a state prison offering intensive education and workforce training while completing their sentences.
HB 6 expands safe, affordable child care for working parents, removes barriers for children with disabilities, and promotes community-based innovation. It strengthens the Child Care Assistance Program, enhances quality ratings, improves transparency, and permanently establishes the CCAP income exclusion – creating a more accessible, high-quality system that supports families and children statewide.
HB 10 would strengthen accountability, transparency, and continuity of government during gubernatorial transitions in the Commonwealth of Kentucky.
HB 253 would phase out the use of the “three-cueing” reading method in Kentucky schools and teacher preparation programs, as well as prohibit school districts from entering into nondisclosure agreements when misconduct involving a minor or student has occurred.
HB 305 would strengthen procedures around grand jury proceedings by extending the statute of limitations applicable for knowingly recording the proceeding or disclosing any information gathered while present during a proceeding. The provisions do not apply to commonwealth’s attorneys, their staff, or peace officers engaged in their official duties.
SB 2 would cap pay increases for superintendents and school administrators to no more than those awarded to classroom teachers, and tie a district’s SEEK eligibility to this limit.
SB 104, the HALO Act, would establish a 25-foot safety zone around first responders while they are lawfully performing their duties, preventing interference in high-risk situations while protecting lawful public activity.
SB 137 would create a provisional license for doctors trained in other countries, allowing them to work in Kentucky while sponsored by a medical practice or health care organization.
SB 170 would create a 10-school district pilot program to address truancy as it links to educational performance.
We will return to the capital city on April 14 to review and consider any vetoes before we adjourn the 2026 Session entirely on April 15.
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 Marianne.Proctor@kylegislature.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.
LEGISLATIVE UPDATE
Representative Marianne Proctor
March 30, 2026
In a world of chaos, the resurrection remains our hope
As the legislative session draws to a close, there’s a noticeable shift in the pace of our work, but also in the world around us. One of my favorite parts of these final days is watching spring slowly make its way across the Capitol grounds and throughout the Commonwealth. The trees begin to bloom, the days stretch a little longer, and there’s a renewed sense of energy and possibility in the air.
It is fitting that this season of renewal coincides with Easter, a time that reminds us, at its core, that hope is real and it endures. Beyond blooming flowers and family gatherings, Easter carries a message that has shaped hearts and lives for generations: even in the face of darkness, light will prevail.
At its heart, Easter tells the story of life triumphing over death. It reminds us that even in the darkest moments, when all seems lost, redemption is still possible. The empty tomb stands as a powerful symbol that the worst thing is never the last thing. As the Gospel of John tells us, “He is not here; he has risen” (John 20:1–18). For people of faith, it is the ultimate reassurance that God’s plan does not end in sorrow, but in victory.
That message feels especially important in a world that can sometimes seem overwhelmed by uncertainty, division, and hardship. We see challenges in our communities, in our nation, and in our personal lives. It is easy to feel discouraged. Yet Easter calls us to look beyond what is immediately in front of us and to trust that goodness, truth, and light will prevail.
Scripture reminds us of this enduring hope in clear and powerful terms: “The light shines in the darkness, and the darkness has not overcome it” (John 1:5). These words echo the very meaning of Easter. They remind us that no matter how deep the darkness, it will never have the final say.
But Easter is not only a message of hope. Easter is also a call to action. Throughout His life, Christ set the ultimate example of servant leadership. He did not come to be served, but to serve. As the Gospel of Mark reminds us, “For even the Son of Man came not to be served but to serve, and to give his life as a ransom for many” (Mark 10:45). In a world often focused on status or self-interest, that example challenges us to live differently.
We are called to serve one another: to care for our neighbors, to lift up those in need, and to put others before ourselves. Whether through small acts of kindness or larger commitments to our communities, service to others is one of the clearest ways we can live out the message of Easter in our daily lives.
The resurrection is not just a moment in history, it is an invitation. It invites us to live with renewed purpose, to extend grace to others, and to carry hope into places where it may feel absent. It challenges us to choose kindness over cruelty, faith over fear, and perseverance over defeat.
In many ways, Easter is a reminder that each of us has the opportunity for renewal. Just as the season changes, so can our hearts. We can begin again. We can mend what is broken, strengthen what is weak, and move forward with confidence that we are never alone in the journey.
As we gather with loved ones this Easter, may we pause to reflect on its true meaning. As the Apostle Paul wrote, “Death has been swallowed up in victory” (1 Corinthians 15:54). May we hold tightly to the belief that life overcomes death, that good ultimately conquers evil, and that hope is never out of reach.
Because of Easter, we are reminded that even after the longest night, the dawn still comes.
I will have more to report on the legislative session in the weeks and months to come, but thought it might help us all to take a moment and reflect on God’s incredible love for us.
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 Marianne.Proctor@kylegislature.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.
LEGISLATIVE UPDATE
Representative Marianne Proctor
March 23, 2026
Criminalization of grooming and theft by deception move through the legislative process
As we approach the end of the 2026 Regular Session and continue our work in Frankfort, two of my bills advanced through the Senate Judiciary Committee this week. HB 4 and HB 264 signal a clear and necessary focus on strengthening protections for Kentucky’s most vulnerable. Both measures reflect a broader commitment to closing dangerous gaps in the law and ensuring accountability where it has too often been lacking.
HB 4 would address the deeply troubling issue of grooming, representing one of the most important steps we can take in the Commonwealth to proactively protect children. For too long, this manipulative behavior, often a precursor to far more serious abuse, has existed in a gray area of the law. I expect that the full Senate is prepared to take up HB 4 on the floor on Tuesday. Since the measure has changes by the Senate, it will come back to the House floor for concurrence. Following final passage, the bill will be enrolled and sent to the Governor.
HB 264 would tackle a very different form of harm: theft by deception in real estate transactions. In an increasingly digital marketplace, fraudulent listings and misrepresentations have become more sophisticated, leaving families and small businesses vulnerable to significant financial loss. This bill would modernize Kentucky law to meet that reality.
By establishing a presumption that individuals who list or advertise property without legal authority are engaging in deceptive practices, HB 264 would provide clarity for prosecutors and stronger protections for consumers. It would also reinforce existing provisions that allow multiple fraudulent acts within a 90-day window to be aggregated and ensure that repeat offenders cannot evade accountability through technicalities.
I believe that I used a thoughtful, targeted approach to public safety in both of these bills, one that addresses both physical and financial exploitation. They are not a statute overhaul, but rather precise fixes to real problems that Kentuckians are facing right now.
At a time when trust, whether in personal relationships or financial transactions, is often exploited, HB 4 and HB 264 would send a clear message: Kentucky is willing to act now.
Protecting children and safeguarding consumers should never be partisan issues. With these bills before us, lawmakers have an opportunity to reaffirm that principle and to deliver meaningful protections where they are needed most, back home in our districts.
On another note, this week, I had the opportunity to sit down with Lawrence J. Krauter, CEO of Cincinnati/Northern Kentucky International Airport (CVG) during a luncheon to discuss the airport’s growing impact on our region. CVG continues to serve as a critical economic engine for Northern Kentucky and the broader Commonwealth, connecting our communities to national and global markets while supporting thousands of jobs. Our conversation reinforced just how vital strong infrastructure and forward-thinking investment are to maintaining that momentum.
We also discussed the airport’s upcoming expansion projects, which reflect both the rapid growth CVG is experiencing and its long-term vision for the future. One project includes the removal of the existing bag handling system and installation of a new individual carrier system. Another project to modernize the terminal started construction in June 2025. The designs of the main terminal, passenger tunnel, and Concourse A and B will service both domestic and international operations.
These investments will not only enhance passenger experience and increase capacity, but also position the region to attract new business, tourism, and economic development opportunities. As demand continues to rise, it is encouraging to see CVG planning ahead to ensure it remains competitive and continues to meet the needs of travelers and employers alike.
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 Marianne.Proctor@kylegislature.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.
LEGISLATIVE UPDATE
Representative Marianne Proctor
March 17, 2026
Road and infrastructure proposals move
With the next state budget now in the Senate’s possession for its consideration, the House continued its work on the measures that will shape Kentucky’s long-term infrastructure investments. Lawmakers focused on bills and resolutions that establish the funding framework for the state’s six-year roadmap for constructing and maintaining roads, bridges, and other critical transportation infrastructure. These measures also include support for important projects at the city and county level while outlining the final four years of Kentucky’s six-year road plan, ensuring communities across the Commonwealth can plan for improvements that keep people and commerce moving safely and efficiently.
During the second week of March, we approved HB 502, a $4.2 billion proposal that includes 617 projects in communities across the Commonwealth. The measure is a strong response to the decrease in gas tax revenue and takes a strategic approach to making sure that every dollar makes the biggest impact. The bill includes $420 million for pavement repairs on interstates and state highways, and $900 million for bridge improvements. It also continues the commitment to fund major projects on the Mountain Parkway, I-69, and the Brent Spence Bridge.
To determine which projects were funded in HB 502, the plan relies heavily on the SHIFT (Strategic Highway Investment Formula for Tomorrow). The formula applies to all transportation funding that is not prioritized by other means, including maintenance work, local government projects, and those with dedicated federal funding. The SHIFT process starts with local and state transportation leaders identifying potential projects, which are then run through criteria that include safety, congestion, economic growth, benefit/cost, asset management, and resiliency. SHIFT is also used for local road planning, in which case non-motorized mobility – like bicycles and scooters – is also considered.
The road plan represents a multi-billion-dollar investment in Kentucky’s transportation infrastructure, requiring careful planning. To manage this effectively, the plan is organized in six-year windows, allowing lawmakers to prioritize projects, coordinate funding, and address the most critical needs across the state. As part of this effort, the House approved HJR 75, which lays out the final four years of the next six-year plan. The plan schedules total appropriations of $3.98 billion in FY 2029, $4.98 billion in FY 2030, $5.4 billion in FY 2031, and $9.7 billion in FY 2032. This provides a structured, forward-looking approach to maintaining and improving roads across the Commonwealth.
Lawmakers also approved HB 501, the operating budget for the programs and services offered by the Kentucky Transportation Cabinet. The bill also provides cities and counties road funding through the Local Assistance Road Program (LARP). In the first fiscal year, the measure provides $68.2 million, with $28.6 million set aside for the second year. A resolution that details how the first year’s payment of $68.2 million will be spent, HJR 76 also cleared the House.
This represents a significant increase from current funding levels. LARP received $23.8 million in Fiscal Year (FY) 2026 and $19.9 million in FY 2025, while the proposed FY 2027 funding would exceed those two years combined. To put it simply, this would allow many more local roads across the Commonwealth to be resurfaced. Since the program began, funding has generally limited projects to roads rated a 10, and occasionally a few rated 9. HJR 76 includes funding for projects rated 8,9, and 10. The additional investment would allow more deteriorating roads to be repaired before conditions worsen further.
To make the most of every dollar, we passed HB 622, which would create a pilot program to evaluate the use of “chip seal” surface treatment on county gravel roads. Beginning July 1, 2026, and running through June 30, 2030, the Department of Rural and Municipal Aid would oversee the project. Chip seal is less expensive to install and the pilot program will give us an opportunity to measure its benefits against potential drawbacks.
Overall, this is a solid plan. This is particularly important considering declining revenue from Kentucky’s motor fuels tax – the primary source of funding for road projects. Not only have we experienced a decline because of the increase in hybrid and electric vehicles, but the tax rate has also gone down. The motor fuels tax is adjusted each year based on the average wholesale price of gasoline. When gas prices go up, the tax rate increases; when prices fall, the rate decreases. Under this formula, the tax dropped from 27.8 cents per gallon in FY 2025 to 26.4 cents per gallon in FY 2026 as fuel prices declined.
This legislation now goes to the Senate for consideration. We will continue our work on it in conference committee before session adjourns. As a reminder, the House version of the state’s two-year, $31.56 billion budget plan went to the Senate in late February. The bill, HB 500, reflects a commitment to Kentucky’s core priorities while maintaining a responsible, forward-looking approach to spending. It includes an increase in per-pupil education funding and continues strong support for essential services such as Family Resource and Youth Service Centers, Medicaid, juvenile justice, corrections, and programs serving veterans.
At the same time, the plan looks for opportunities to make government more efficient and effective. It encourages the state to streamline operations by trimming outdated programs, eliminating duplicate grants and incentives, and reducing unnecessary administrative costs and consulting contracts. A 3% reduction in executive branch spending each year is included, while agencies are given flexibility to determine where savings can be achieved. By focusing resources on programs that deliver results and right-sizing government operations, the plan helps free up funding to better serve Kentucky families and communities.
The budget also responsibly addresses employee benefits by funding the Kentucky Employees Health Plan (KEHP) at actuarially determined levels. It accounts for projected cost increases of 14% in the first year and 10% in the second. Lawmakers continue to seek greater transparency surrounding these estimates and other executive branch budget proposals, including requesting additional data and issuing subpoenas to better understand the rising costs of the health plan.
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 Marianne.Proctor@kylegislature.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.
LEGISLATIVE UPDATE
Representative Marianne Proctor
March 12, 2026
HB 407: Streamlining Kentucky’s certificate of need review
With more than half of the 2026 Regular Session behind us, we continue to hear health care policy proposals aimed at improving how our health care system operates and expanding access to care for Kentuckians. As we work to address ongoing challenges, examining current policies and identifying areas for improvement continues to be an important part of the process.
One policy that continues to influence how our health care system operates in Kentucky is the state’s certificate of need (CON) program. In 1972, Kentucky established its CON program in response to concerns about rapidly rising health care costs. The program requires health care providers to get state approval before building new facilities, expanding existing services, or purchasing medical equipment, to prevent unnecessary duplication of services.
Two years later, the federal government passed the National Health Planning and Resources Development Act, which nationalized the CON model by requiring states to implement CON programs in order to receive certain federal health care funds. At the time, policymakers believed national CON implementation would control costs while improving access to care. However, the program failed to deliver its intended results. As a result, CON was repealed in 1986.
Following that decision, many states, including our neighbors of Ohio and Indiana, moved to repeal their CON laws. However, Kentucky chose to keep the program. While Kentucky’s CON program still remains, the structure and procedures governing the CON review process have changed very little in more than five decades.
Recognizing the need for modernization, I filed House Bill 407 (HB 407), which aims to streamline the certificate of need review process in our state. To be clear, this legislation does not repeal our state’s CON program. It simply seeks to ensure that the existing process is fair and clear for applicants and the public.
Last week, I had the opportunity to present HB 407 before the House Health Services Committee and discuss why CON reforms are needed. One of the main goals of this legislation is to remove an unconstitutional barrier to CON approvals. The legislation would allow only applicants to request hearings, present evidence, or seek reconsideration of a decision, reducing delays caused by affected party interventions. To ensure affected parties still have input, the Cabinet for Health and Family Services (CHFS) would be required to create a process for obtaining important information from them before a decision is made.
Another important component of this bill is the establishment of a clear timeline for final decisions, which is not currently defined in Kentucky law. As a result, the CON review process can often be long and complicated, with applicants facing uncertainty and numerous obstacles before reaching a final decision. Under HB 407, CHFS would be required to issue final decisions within 90 days, while preserving applicants’ right to appeal to the Franklin Circuit Court.
Ultimately, HB 407 is about modernizing the CON review process to better support applicants and the communities they serve. Red tape and bureaucracy should never stand in the way of improving access to care for Kentuckians. Streamlining this process would allow us to focus on what matters most—ensuring Kentuckians have access to care within their community.
While our work is far from over, committee passage of HB 407 demonstrates a meaningful step toward modernizing and streamlining our CON review process. HB 407 will now head to the full House for consideration. To view this legislation and to keep track of its progress throughout the 2026 Regular Session, I encourage you to visit legislature.ky.gov.
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 marianne.proctor@kylegislature.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.
LEGISLATIVE UPDATE
Representative Marianne Proctor
March 2, 2026
House approves $31 billion budget prioritizing education, healthcare, public safety, and community stability
The Kentucky House of Representatives took a major step with the passage of the House version of the state’s two-year spending plan, House Bill 500 HCS, on Thursday, February 26. The bill reflects a focus on making state government more efficient in order to focus on priority areas like education, healthcare, public safety, and community stability.
As its sponsor advised all along, the budget that passed was substantially different from the version filed in late January. In the weeks since it was filed, budget review subcommittees and staff gathered input from stakeholders and crafted a version that intentionally allocates taxpayer resources in ways that preserve and strengthen essential public services without overextending government. While the budget process is far from finished, this committee substitute represents a strong next step.
The two-year, $31.56 billion plan protects the state’s core priorities. It provides an increase for per-pupil SEEK funding, and holds funding Family Resource and Youth Service Centers, Medicaid, juvenile justice, corrections, and programs serving veterans at current rates. Educational programs with measurable results, such as Read to Achieve, extended school programs, and Jobs for America’s Graduates, also remain protected.
It sets the stage to trim outdated programs, eliminate duplicate grants and incentives, reduce unnecessary administrative costs and consulting contracts, and end programs that lack measurable results. At the same time, it recognizes opportunities for services to be delivered more effectively by families, businesses, and community organizations. The measure calls for budget reductions across several cabinets and programs, including a 3% reduction in executive branch spending each year. Agencies are given flexibility to identify where reductions can be made. By streamlining government operations and right-sizing expenditures, the state can free up funding to benefit Kentucky families and communities.
The plan also addresses employee benefits by funding the Kentucky Employees Health Plan (KEHP) at actuarially determined levels, with a 14% increase in cost in the first year and an additional 10% in the second year. Lawmakers continue to request the data behind the KEHP estimates, as well as other executive branch’s budget proposals, and issued subpoenas for details on the rising costs of the health plan.
In addition, HB 500 HCS underscores some of the Commonwealth’s most pressing challenges. Medicaid alone will require $6 billion over the next two years, second only to K-12 public education, highlighting the need to balance essential services with responsible fiscal management.
Could we have spent more? Of course. And, the proposal passed by the House reflects an almost 2% increase in overall state spending and leaves a surplus in both years, just in case we need to allocate more for an unexpected expense.
Is this shift to focus on spending because we need more revenue? No. Kentucky has a spending problem, not a revenue problem – as illustrated by a recent auditor’s report that exposed more than $800 million in Medicaid spending made in error, or another that detailed $39 million in questionable advertising and luxury travel expenses across the executive branch.
HB 500 HCS now goes to the Senate for consideration. In the meantime, if you are a “by the numbers” reader, here are a few details about HB 500 HCS that might interest you:
Overall:
• $31.56 Billion Two-Year Budget
• $369 Million Increase for K-12 Public Education
• $5.99 Billion for Medicaid
• Public Safety Fully Protected
• 3% Executive Branch Reduction Each Year, Except:
o Per-Pupil/SEEK
o Medicaid Benefits
o Juvenile Justice & Corrections
o Veterans Programs
K-12 Public Education:
• $7.1 Billion Two-Year Allocation
• $369 Million Increase in Each Year
• 2% SEEK Increase in Each Year
• $398 Million in Transportation Funding*
• $134.87 Million Increase Over Two Years for Teacher’s Retirement
• Fully Funds Kentucky Employee Health Plan at Actuarially Recommended Amount
*Based on estimates from KDE
Human Services:
• $5.99 Billion – Medicaid Funding
• 125 New Michelle P. Waiver Slots
• 150 New Community Living Waiver Slots
• 175 New Home Community Based Services Waiver Slots
• $101.5 Million To Cover Additional SNAP Costs
• $40 Million Increase to State-Run Psychiatric and ICF/ID Facilities
• Specifically Identifies Funding for Children’s Advocacy, Rape Crisis, Domestic Violence Shelters
• Identifies Funding for Child Care Benefits and Relative/Fictive Kin Caregivers
Veterans Services:
• $10.6 Million for Staffing Support at the Thomson-Hood Veterans Center
• $13.2 Million for Staffing Support at the Western Kentucky Veterans Center
• $100,000 General Fund in Each Year for the Homeless Veterans Program
Public Safety:
• $16.7 Million for Kentucky State Police Salary Adjustments
• $10 Million Body Armor Grant Program
• $6.5 Million for Jefferson County Juvenile Justice Center Support
• $13 Million Increase for Corrections Medical Funding
• Increased Funding for Crime Lab Upgrades
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 Marianne.Proctor@kylegislature.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.