FRANKFORT, Ky. (LEX 18) — Kentucky lawmakers approved a $32.4 million spending plan through House Bill 500, prioritizing "funding for K-12 public education, public safety, veterans’ services, and asset preservation at Kentucky universities," a press release said Wednesday. The bill now heads to Governor Andy Beshear's desk.
“This is a good, solid budget that reflects the same kind of thoughtful decision-making Kentucky families practice every day around their own kitchen tables. Just like families have to prioritize needs over wants and make careful choices to live within their means, this budget focuses on meeting the core needs of our state while avoiding unnecessary spending,” Bill sponsor and Representative Jason Petrie said. “It ensures we are investing in what matters most, while remaining responsible stewards of taxpayer dollars and keeping our long-term financial health in mind.”
According to the release, the budget plan cuts expenditures across cabinets as well as reduce executive branch spending by 7% over the next two years. The bill also "protects the state's core priorities" by exempting family services, Medicaid, corrections and other programs from those cuts.
Lawmakers additionally allocated $6 billion to fund Medicaid. A 2% salary increase from public employees each year, with "fully funded pensions and health insurance obligations," is also included.
"The budget delivers targeted investments in Kentucky’s core priorities while maintaining a strong commitment to fiscal responsibility and long-term stability. In education, it provides a significant funding increase for K-12 schools, including modest SEEK funding growth, full support for teacher retirement obligations, and continued investment in school employee health insurance. It also maintains stable funding for higher education, supports college access and dual credit scholarships, and invests in campus infrastructure," the release said.
The bill additionally supports law enforcement and corrections, invests in technology, and limits new borrowing while focusing on "spending on the state’s most pressing needs - ensuring taxpayer dollars are used responsibly while continuing to move Kentucky forward."
