Week in Review: Local Government, Health, Economic Development
Rep. Mark Hart (District 78)
With barely two months remaining before the 2026 Regular Session convenes, the Interim continues to serve as a crucial period of preparation for lawmakers. The discussions taking place in committee and task force meetings during this time offer a preview of potential legislative priorities and help shape the bills lawmakers plan to file when the General Assembly returns to Frankfort.
Several interim joint committees and statutory committees convened the week of October 20 to discuss potential legislation for next session including issues such as tax collections, water district policies, pension oversight, taxpayer-funded healthcare, and the housing shortage.
Local Government: Lawmakers heard from the Department for Local Government and the Kentucky Fire Commission on local political subdivisions that provide specific services like libraries, tourism, and extensions, commonly referred to as special government entities. The commission reported 16 fewer fire departments since last year due to mergers prompted by staffing challenges. The Kentucky League of Cities also shared 2026 Session priorities: protecting public safety, modernizing infrastructure and services to support growth and improve quality of life, and streamlining government to save taxpayer dollars.
State Government: Members first discussed two pieces of proposed legislation. The first piece of proposed legislation would make participation in water fluoridation programs optional in Kentucky, while the second piece of proposed legislation would amend sections of the Kentucky Constitution to limit the Governor’s ability to grant pardons and commute sentences. Then, the commissioner of the Kentucky Department of Parks updated members on the progress of capital projects designed to renovate and improve Kentucky State Parks. The projects, funded by appropriations from the General Assembly, range from campground upgrades to utility improvements.
Capital Projects and Bond Oversight: Lawmakers received reports on state-funded construction and maintenance projects, specifically the annual capital project, bond, and debt reports; lease actions; economic development grants; and new school and housing bond issues.
Commission on Race and Access to Opportunity: Legislators met to hear updates on student success from Carter G. Woodson Academy and the West End School, two specialized schools aimed at helping students reach their potential. Students from the Woodson Academy spoke on how they are motivated for excellence by the culture and expectations the school sets for them. Members were presented with data on above average graduation rates and tests.
Kentucky Housing Task Force: Lawmakers discussed Lexington’s Housing Affordability Partnership and key challenges such as affordability, limited land, high development costs, and access to money. The committee also heard from stakeholders working on increasing housing in Northern Kentucky. Members additionally considered potential legislation focused on free-market housing solutions and the potential for churches, convents, and other religious institutions to use land they own for housing.
Public Pension Oversight Board: Members received the annual investment review for public pension plans from legislative staff, including a review of total assets, performance, and peer comparisons to other states with pension systems, allocation review and peer comparisons, overview of investment fees and expenses, net cash flow update, discussed special topics, and other special topics such as benchmarks and policies. As of the end of fiscal year 2025 on June 30, 2025, the pension fund assets by system/plan were $50.47 billion and retiree health fund assets by system/plan were $12.52 billion.
Health Services: Members discussed a report regarding Medicaid payments and how to prevent the waste of taxpayer dollars with the Kentucky State Auditor. The committee reviewed potential legislation aimed at regulating companies that coordinate and manage medical care for Medicaid. Members heard testimony on quick response teams designed to reach Kentuckians experiencing an overdose or substance-related crisis. The committee also heard updates on Medical Cannabis Dispensaries and the practitioners licensing process, particularly how to protect children. Also a topic – regulations related to kratom, a potentially dangerous herbal substance that is highly addictive and can lead to overdose.
Veterans, Military Affairs, and Public Protection: Legislators heard from three drug task forces regarding their efforts to counter drug trafficking in Kentucky. One particularly interesting point – experts see a decline in some types of illegal drugs as a direct result of better border security. Members discussed how special courts can support veterans struggling with substance abuse and heard testimonies regarding bills for this upcoming session on line of duty hazardous disability coverage and smoke and carbon monoxide alarms.
Families and Children: Members discussed reductions to the state’s TANF-funded family assistance programs as the Cabinet for Health and Family Services reconciles its budget to make it through the 2026 fiscal year. TANF is a temporary safety net created to help individuals become independent through work. Additionally, the committee heard from New Mexico’s Secretary of Early Childhood Education, who presented the state’s early childhood programs. Finally, the committee heard from Fetal Alcohol Spectrum Disorder advocates. Currently, the state does not recognize the disorder as a disability; therefore, individuals with this disorder do not qualify for state support services.
Medicaid Oversight Advisory Board: Members first discussed Medicaid reimbursement rates and network adequacy for behavioral health services and dental services, as well as Medicaid rate setting activities. Then, members heard from the Kentucky State Auditor about an audit conducted by the Kentucky Auditor’s Office examining Medicaid waste, specifically involving concurrent capitation payments to managed care organization for the same Medicaid recipients. Concurrent capitation payments resulted in over $800 million of Medicaid waste.
Economic Development and Workforce Investment: Members met to hear from the trade industry on how apprenticeship programs are helping Kentuckians secure high-paying jobs and start life-long careers in our vital industries. The committee heard proposed legislation that would require state and local contracts to use materials manufactured in the United States and establish a procurement preference for metals including iron, steel, and aluminum. Members also heard about the impact of potential worker misclassification within the construction industry.
Licensing, Occupations, and Administrative Regulations: Lawmakers reviewed a proposal that would enter Kentucky into a Dietitian Licensure Compact, allowing dietitians licensed in other member states to practice in Kentucky. This would streamline licensure, reduce administrative barriers, and improve public access to dietetics services across state lines. Members then discussed potential legislation that would create the Kentucky Board of Licensure for Professional Music Therapists. Then, members discussed expanding physician access in Kentucky, specifically through international physician licensing reform.
Tourism, Small Business, and Information Technology: Members continued their study of tourism’s potential across the state with testimony from Visit Jessamine. Visit Jessamine’s mission is to promote Jessamine County as a premier destination in Kentucky, contributing an impressive $87 million to the commonwealth’s tourism industry. Fort Knox representatives also highlighted the crucial role the military installation plays in the Commonwealth and its status as a regional economic powerhouse. They emphasized the presence of military families stationed at Fort Knox and their impact on local communities and other tourism destinations across the state.