Responsible Investments and Spending for the Commonwealth
The fifth week of the legislative session saw action on several important bills, including the state’s biennium budgets for fiscal years 2025 and 2026, pass the House.
One Time Investments in Targeted Areas: HB 1 appropriates funds from the state’s Budget Reserve Trust Fund Account for one-time payments and investments into the commonwealth. $1.84 billion dollars would be appropriate to pay down unfunded liabilities in Kentucky’s state retirement funds, infrastructure development, riverport asset preservation, grants to general aviation airports, economic development initiatives, rural community investment, and funding to Kentucky’s state police. The Kentucky Teacher’s Retirement System and State Police pension funds would be at 60% funding, the highest funding level in many years.
Executive Branch/State Budget: HB 6 is the proposed state executive budget for the 2025 and 2026 fiscal years. This budget is over $129 billion and includes increases in teacher retirement contribution, K-12 education, and Medicaid adjustment and waiver expansion. Other significant investments are proposed in the Department of Juvenile Justice, which will receive $34 million to assist in the improvement and extension of their services and programs, the Cabinet for Economic Development and the Cabinet for Health and Family Services. Additionally, there are increases to SEEK for the public education system that will bring the per pupil guarantee to $4,455 in 2026, full funding for school transportation, and many more intentional investments into our public education system.
Capping Unbudgeted Spending: HB 262 amends the current operating budget to place spending caps on Military Affairs and the Adult Correctional Institution’s budgets until the end of fiscal year 2024 on July 30.
Legislative Branch Budget: HB 263 is the budget for the legislative branch of the state, with $87.7 million in the first year, and $91.5 million in fiscal year 2026. It also allows for legislative publications to be disseminated through electronic communications.
Judicial Branch Budget: HB 264 is the budget for the judicial branch of the state. This proposal provides salary increases for all judicial staff, expands personnel, and supporting funds for construction and preservation budgets. The total investment in the judicial branch budget is $453.7 million in fiscal year 2025, and $469.6 million in the second fiscal year.