By: Patrick Flannery
Representative, State of Kentucky
As the only branch of state government with the constitutional authority to spend and raise money, one of the legislature’s biggest tasks is the crafting and passage of the state budget. We must pass a budget, which must originate in the House of Representatives and essentially amounts to a two-year spending plan that provides funding for each state program, agency, and priority. Historically, these spending plans have been more about how much the legislature can spend, with politicians celebrating with check presentations and touting “their” projects. This came to a halt in 2016 when Kentuckians elected a new House Majority and ushered in a new era of budgeting that places an emphasis on our role as trustees of the people’s resources.
To put it simply, we no longer measure success by how much we can spend, but rather by the return on every dollar we invest. This shift in philosophy makes the work performed by the Interim Joint Committee on Appropriations and Revenue and its budget review subcommittees critical. This update includes a rundown of the June committee meetings. Committee members met on June 7 and received an update on the $320 million allocation made by the legislature to expand broadband, particularly the $250 million intended to help get high speed internet to underserved and unserved areas throughout the commonwealth. According to the Office of Broadband Deployment, 47 financial awards were awarded in the first round for a total of $90 million. Lawmakers pressed for more information about where investments were being made in order to ensure all areas of the state benefit from the funds.
Additionally, members heard from the Department of Military Affairs. They discussed the state’s costs for emergency response services and responding to the natural disasters in Eastern Kentucky and Western Kentucky. To date, $273 million has been expended for such expenses, this is the largest amount in history. Eastern Kentucky is $260 million of the amount. The timeframe for flooding cleanup and revitalization costs was between July 28, 2022 to May 15, 2023.
Members also received a briefing from the Personnel Cabinet on a compensation and classification study required by the legislature to ensure the state workforce remains competitive with other public sector employers as well as private industry. The study was requested almost two years ago when members were writing the current budget, but the cabinet has yet to provide adequate data to determine what changes need to be made as we craft the next budget.
The Budget Review (BR) Subcommittee on Health and Family Services heard an update from the Department of Community Based Services about efforts to recruit and retain social workers, including how a pay raise provided by lawmakers last year will help. Legislators also heard from the Volunteers of America about funding for substance abuse recovery services. The Department for Medicaid Services also provided a status update on legislation we passed last session to require the cabinet to review reimbursement rates for outpatient pediatric providers.
The BR Subcommittee on Education received an update on salary supplements for educators who complete the program to become National Board Certified Teachers (NBCT). The $2,000 supplement is designed to help retain, and recognize accomplished teachers with a goal of improving educational opportunities. Studies show that teachers who have the certification are less likely to leave the profession and students of teacher with certifications are more likely to reach proficient scores. In addition, committee members received an update on the state’s unemployment insurance program. According to UI officials, Kentucky currently has the lowest unemployment rate in recorded state history, being 3.7% in April 2023 and the current unemployment insurance (UI) trust fund balance is $834 million – dramatically higher than when the state had to borrow millions from the federal government to pay the record claims filed during the state’s shutdown in 2020.
The BR Subcommittee on General Government, Finance, Personnel, and Public Retirement learned about efforts to provide greater accountability and transparency to disaster relief funding and the implementation of legislation that creates a grant program for rural communities (HB 9). After disaster struck both the Easter and Western regions of the commonwealth, nearly $70 million in private donations was raised to provide relief. While these are private donations, there must be policies in place to ensure funds are used appropriately. Earlier this year we approved SB 99 to ensure this happens. Also, earlier this year we passed HB 9, which established the Government Resources Accelerating Needed Transformation (GRANT) Program to provide support and grant funding available to communities impacted by the loss of coal-related jobs. In addition, the bill also provides $2 million in funding in the fiscal year that begins in July and directs the Department for Local Government to partner with the Kentucky Council of Area Development Districts to administer the program. Eligible grant recipients include local governments and nonprofits engaged in public benefit improvements to priority communities designated by the federal Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization.
Members of the BR Subcommittee on Justice and Judiciary heard an update from the Kentucky State Police (KSP) Commissioner about the positive impact a pay raise approved by lawmakers last year has had on retention and recruitment efforts. According to the KSP, applications and retention have increased and retirements have gone down.
I would like to hear from you regarding your interest in any of the issues before the Kentucky General Assembly relating to economic development or otherwise. Feel free to reach out any time through the toll-free message line in Frankfort at 1-800-372-7181 or by email at Patrick.Flannery@lrc.ky.gov. Send me an email if you would like to receive regular email updates. For more information, please visit the legislature’s website at legislature.ky.gov.
