FRANKFORT, Ky. (LEX 18) — Kentucky Senate Republicans revealed their version of the state’s next two-year budget on Wednesday. In it, they proposed more money for SEEK, the state’s main funding formula for K-12 schools.
However, the Senate left out two of Democratic Gov. Andy Beshear’s biggest priorities — guaranteed pay raises for teachers and access to preschool for every Kentucky 4-year-old. The Kentucky House did the same in its budget proposal earlier this year.
Instead, Republican lawmakers in both chambers want to direct additional money to K-12 schools and leave it up to local school districts to decide whether to award pay raises to teachers.
"If districts choose to do that, that will largely be their option," said Sen. Christian McDaniel, the Senate Budget Chairman.
But the lack of mandated raises worries the Kentucky Education Association.
"We know that we are in an educator crisis right now and we need to recruit, retain, and pull people into the education profession," said KEA President Eddie Campbell. "So, not hearing a mandated raise is kind of concerning for us."
The Senate's funding plan for public schools would increase money for SEEK by nearly $100 million. Per-pupil funding would rise to $4,368 — a $117 million increase — in the first fiscal year and $4,455 in the second year — a $154 million increase. Those amounts match the same increases proposed in the House budget. The current amount is $4,200 per student.
Under the Senate version, the state would cover 80% of the costs to transport K-12 students to and from school in the first year of the budget cycle and 90% in the second year. The House proposed covering 100% of those costs in the second year of the biennium.
"If transportation isn’t fully funded, then that comes out of the school district’s general funds," said Campbell. "It’s taking dollars away for student resources, for whole student services, for potential raises that could be given by the district."
Senators also proposed more than doubling the amount of state funding sent to public universities through performance-based funding, raising the amount to about $200 million per year.
There are two spending bills. House Bill 1 is a large one-time appropriations bill. House Bill 6 is the state's operating budget. Currently, the House and Senate have their own versions of each bill. The ultimate versions will be hashed out between the chambers in the upcoming days.
The House and Senate roughly propose $15 billion each fiscal year in their versions of HB 6. However, when the House passed HB 1, it proposed $1.8 billion in spending from Kentucky's Budget Reserve Trust Fund. The Senate's version of the bill increases that amount to $3.5 billion.
According to a press release highlighting the Senate's proposal, the higher dollar figure in HB 1 is proposed to cover:
$890 million transfer to the state road fund: This will support road, bridge, and highway improvements in high-growth counties amid Kentucky's continuing record years of business investment. It will focus on metropolitan districts. This investment will help with over-programming within the state road plan and allow other projects to move forward.
$150 million for the innovative and entrepreneurial Commonwealth Center for Biomedical Excellence: The funds support an innovative entrepreneurship and life sciences campus in Covington. The city possesses an emerging cluster of life sciences companies led by CTI Clinical Trial and Consulting Services, Gravity Diagnostics, and Bexion Pharmaceuticals. This investment is in addition to the $15 million secured by McDaniel in the 2022 biennial budget to build a life sciences laboratory within the OneNKY Center, which is currently under construction and is expected to open in 2025.
$75 million for nuclear development siting: Furthering the effort championed by Sen. Danny Carroll, R-Benton, this funding would help propel Kentucky into a more sustainable and cheaper energy future in its vision to embrace an all-of-the-above approach to lowering Kentucky family's energy costs and supporting Kentucky businesses. This investment will help pull down federal dollars also.
$75 million to support a 13th check for Kentucky state employee retirees: Recognizing the negative impacts of inflation caused by progressive federal policies, this initiative would provide much-needed financial support to Kentucky retirees within the Kentucky Employee Retirement System.
$60 million for Murray Vet Tech: The investment will support the current, successful program.
$50 million for high unemployment counties' economic development fund: This funding would prioritize areas most needing business investment and job opportunities.
$50 million for Madisonville Department of Criminal Justice Training: Funds will construct a new facility to accommodate trainees in the furthest western part of the commonwealth.
$36 million for improvements at the Kentucky Horse Park: This will further support Kentucky's signature industry and improve a landmark international attraction within the thoroughbred industry.
$35 million for the Grayson Department of Defense Park: This will fund a program to recruit prime defense contractors to Kentucky. This effort will require collaboration between state and federal delegates.
$35 million in airport economic development: This is financial support for our state's largest airports and the $200,000 supporting smaller regional airports.
· $5 million for Louisville Muhammad Ali International Airport (SDF)
· $5 million for Bluegrass International Airport (LEX)
· $25 million for Cincinnati/Northern Kentucky International Airport (CVG)
$30 million for the Home of the Innocents-Kosair for Kids Expansion match: Established in 1880, Home of the Innocents enriches the lives of children and families with hope, health, and happiness. Programs include residential and community-based behavioral health services, therapeutic foster care and adoption services, supportive services for young adults experiencing homelessness, and long-term care for children with complex medical needs.
$25 million for The University of Louisville Cancer Center at Bullitt: UofL Health is asking for help to build a state-of-the-art cancer center in Bullitt County to expand treatment access for cancer patients across the state. Kentucky currently has the highest death rate from cancer in the U.S. and UofL Health Brown Cancer Center wants to reverse that trend by creating a Center for Rural Cancer Education and Research in Bullitt County to make it easier for out-of-towners to get the care they need.
$25 million for Ashland Conference Center: Ashland is home to 21,000 residents and is a regional center for commerce, health care, activities and much more. The Huntington-Ashland metropolitan area is home to 362,000 people within a three-state region. The city seeks to develop a conference center of up to 30,000 square feet. The conference center aims to open Ashland up as a host city for conferences and events, bringing positive economic impact and revenue to eastern Kentucky.
$25 million for community-focused park match: The project will improve quality of life by supporting improvements to Kentucky state parks and increasing tourism for surrounding communities. Projects must be a minimum of $2 million and would require a 50/50 local match.
$21 million for Livestock Innovation Center: This space will be a central coordinating point and key resource for the livestock industry in Kentucky and across the eastern United States.
$20 million for the Murray/Louisville cybersecurity partnership: Funding will allow both universities to benefit from federal dollars.
$16 million for Appalachian Regional Healthcare Hazard Psychiatric Research: The project will serve to improve the health and promote the well-being of all people in central Appalachia.
$12 million for Middlesboro Cancer Center: Operated by ARH, this investment will expand and improve services to eastern Kentucky residents.
$12 million for Pikeville Medical Center: The funds will support project ventures of the center and improve health care for regional residents.
$10 million for Grayson Airport: A proposal is to build a runway at the local tri-model park.
$10 million for Lexington Transformational Housing Affordability Partnership: Plans aim to address the housing crisis.
$8 million for Morehead University Deep Space Array: This will provide the university with a full array and further strengthen its partnership with NASA.
The state’s next two-year budget cycle begins July 1.
