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Fresh off reelection, Gov. Beshear presents budget plan in televised speech

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Posted at 8:20 PM, Dec 18, 2023
and last updated 2023-12-18 20:20:30-05

FRANKFORT, Ky. (AP) — Looking to build on his resounding reelection victory, Democratic Gov. Andy Beshear took his budget directly to Kentucky voters in a televised speech Monday night as he made his case for a massive boost in education funding, child care support and continued investments in infrastructure projects.

His holiday message — coming about two weeks before the state's Republican-dominated legislature reconvenes — represents the governor's effort to turn political capital into more of a mandate for his top policy priorities.

In a state that appears to have grown comfortable with divided government, Beshear proposed pay raises for state workers and increased funding for public universities, economic development and foster care. He proposed hiring more state troopers and social workers, building more juvenile detention centers and investing more money in regional airports.

“We are working to address the things that actually matter to our people ... that are important to everyone,” he said in a statement leading up to his speech. “This budget reflects our shared Kentucky values of family, faith and community.”

Beshear said the state can afford to do all that, and more, without tapping into its vast budget reserves. Tax collections have surged in Kentucky even as its individual income tax rate has been lowered.

Public education — including higher teacher pay and access to universal pre-K — ranked atop his wish list, as Beshear presented his blueprint for the state's next two-year budget in a primetime speech shown statewide on Kentucky Educational Television. It comes less than a week after he was sworn in for a second term. Beshear's November reelection win in GOP-leaning Kentucky sets him up to be on the national radar in the coming years when the country looks for a new generation of leaders.

The speech's timing reflected the friction of divided government in the Bluegrass State. Governors traditionally reveal their budget plans in a televised speech when the legislature is in session. This time, the Democratic governor opted for a pre-session speech after House Republicans preempted him in early 2022. They unveiled their budget plan before the governor had a chance to offer his version.

In his latest two-year spending proposal, Beshear called for pumping more than $2.5 billion of additional funding into preschool through high school education. Topping his requests is a proposed 11% pay raise for teachers and all other public school employees — including bus drivers, cafeteria workers and janitors. He also recommended an 11% increase in the minimum teacher salary.

The investments would lift Kentucky to the middle of the pack nationally in average teacher starting pay and average teacher pay. The state now ranks near the bottom in both categories, he said.

Another Beshear priority is providing preschool for every 4-year-old in Kentucky. The governor's budget plan includes $172 million each year of the two-year budget to accomplish that. His similar proposals in the past made no headway with lawmakers.

The program would extend preschool education to an estimated 34,000 additional 4-year-olds, Beshear said. He called it an unprecedented commitment toward early childhood education, saying it would have long-reaching benefits by boosting efforts to ensure every child is kindergarten ready.

The governor's education plan also would increase per-pupil funding under the state’s main funding formula. It would fully fund teacher pensions and student transportation.

Another key Beshear proposal calls for spending about $141 million over two years for child care assistance, meant in part to help cushion child care programs from the loss of pandemic-era federal subsidies.

Meanwhile, his budget calls for a nearly 8% increase in the base budgets of public universities, which endured state budget cuts for a number of years.

For the state's workforce, Beshear proposed awarding a 6% across-the-board pay raise effective next July 1, followed by a 4% raise the next year.

He proposed using $500 million in state funds for water and wastewater projects statewide and $300 million for major transportation projects — with an eye toward the work to widen the Mountain Parkway in eastern Kentucky and build an Ohio River bridge between western Kentucky and Indiana.

To build on the state's record pace of economic development, the governor proposed allocating another $200 million to help land new employers. Half the amount would go to prepare mega-development projects and the rest would aid county and regional site development.

Beshear also proposed building two female-only juvenile detention centers and to retrofit other detention centers to enhance safety in a system that's been plagued by problems.

As is typical with any governor's proposal, the legislature ultimately will have the final say on the budget — the state's main policy document. The governor can make line-item vetoes to the spending bill, but GOP legislative supermajorities can wield override power.

The state's next two-year budget period starts next July 1.