Kentucky lawmakers start advancing budget bills

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In this Sept. 23, 2020, file photo, Kentucky Gov. Andy Beshear speaks at the Kentucky State Capitol in Frankfort, Ky. Gov. Andy Beshear proposed an infusion of aid into Kentucky's coronavirus-battered economy on Thursday evening, Jan. 7, 2021, announcing an ambitious budget plan that includes down-payments on his long-running goals of raising salaries for teachers and boosting public education funding.(AP Photo/Timothy D. Easley, File)

UPDATE, POSTED 6:15 P.M. JAN. 11, 2020

FRANKFORT, KY. (WTVQ) – A proposed one-year state budget and other spending plans

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Rep. Jason Petrie, R-Elkton, meets with the media after presenting budget bills in the House Appropriations and Revenue Committee.

were approved Monday by the House.

Rep. Jason Petrie, R-Elkton, said that Monday’s action was largely procedural to get the process moving so lawmakers can work on the roughly $12 billion budget in a conference committee sooner rather than later.

“What we’re doing today… is not a completed statement of what our priorities are regarding the judicial budget or any other budget being considered,” said Petrie, chair of the House Appropriations and Revenue Committee.

Lawmakers typically pass budgets during even-numbered years when the legislature meets for 60 days. Economic uncertainty brought on by the COVID-19 pandemic led lawmakers to pass a one-year budget last spring, leaving the General Assembly to pass the next one-year spending plan during this year’s 30-day legislative session.

Earlier Monday, the House Appropriations and Revenue approved House Bill 192, the executive branch budget; House Bill 193, the transportation budget; House Bill 194, the legislative branch budget; and House Bill 195, the judicial branch budget. Petrie said the bills are essentially continuations of last year’s budgets with appropriate adjustments.

House Bill 191, legislation regarding COVID-19 relief, did not move forward today so that lawmakers could collect more information on the matter.

While there weren’t marathon discussions on the budget in the House — an acknowledgement that Monday’s movement was largely procedural — some lawmakers expressed hope a future budget conference committee give will careful consideration to the priorities in Gov. Andy Beshear’s budget proposal.

Beshear addressed a joint session of the General Assembly on Jan. 7, saying he would like to see the legislature pass a budget to provide millions in economic relief to small businesses and nonprofits, expanded broadband, more money for education and more.

The state’s Consensus Forecasting Group predicts Kentucky will see a small increase in revenue at roughly $53 million in the next year, with economists predicting Kentucky’s budget will not be as hurt by the pandemic as originally thought in part due to federal COVID-19 relief.

House members must put budget priorities “in context,” with revenue forecasts, Petrie said.

“Revenue projections are slippery things,” he added. “You have to consider what it’s being compared to, whether it was anomaly or whether it is normal course.”

The budget bills approved by the House— HB 192,193,194 and 195—now go to the Senate for consideration.

ORIGINAL STORY

FRANKFORT, Ky. (AP) — Kentucky lawmakers began advancing budget bills Monday that are likely to undergo substantial changes as they dig deeper into setting spending priorities, beset by the unique challenges of the COVID-19 pandemic.

The House Appropriations and Revenue Committee advanced “continuation” budgets seen as mere placeholders for House and Senate conferees who eventually will craft detailed spending plans.

The strategy reflects the time constraints for lawmakers to pass a one-year budget in a 30-day session already in its sixth day Monday.

“I would caution everybody to read absolutely nothing into the budget that comes out first,” House Speaker David Osborne said last week on Kentucky Educational Television. “It will absolutely just be a continuation version of the budget that is just an effort to expedite things.”

Senate President Robert Stivers said last week that the initial version “will not be anything close to what I think the final budget will be.”

In another development, the House panel didn’t take up a spending bill reflecting Democratic Gov. Andy Beshear’s proposal to pump immediate aid into a state economy still struggling under the pandemic. Committee Chairman Jason Petrie cited an unspecified technical issue as the reason for bypassing the measure Monday.

Last week, when presenting his budget proposals, Beshear urged the GOP-led legislature to quickly pass a separate virus relief bill. It includes $220 million in aid for small businesses, $20 million for non-profit organizations and $100.9 million to help repay a federal loan that’s kept the state’s unemployment insurance program afloat.

Lawmakers traditionally pass two-year state budgets during 60-day sessions in even-numbered years. They broke with tradition last year, passing a one-year budget because of economic uncertainties caused by the pandemic. That means lawmakers need to pass another one-year budget in this year’s short session for the fiscal year beginning July 1.

The House panel on Monday advanced the continuation budget bills for the executive, judicial and legislative branches, as well as the transportation budget. The measures next go to the full House.

Democratic Rep. Angie Hatton made a pitch for the targeted COVID relief sought by Beshear.

“I know this is not going to be the final version of our budget,” she said Monday. “I’m praying that we can put a lot more of the … things that small businesses, non-profits and unemployment claimants need from this budget.”

The plan is to get the continuation plans into a conference committee, where key lawmakers will delve deeper into spending needs and eventually craft a version of the budget that will be presented to the full House and Senate.

“Everybody is pulling in the same direction trying to get to the meat of the process,” Petrie said.

Beshear last week offered an ambitious budget calling for pay raises for K-12 teachers and other school employees, more public education spending, full funding for Medicaid, more staffing to combat child abuse and increased funding for the state’s beleaguered unemployment insurance system. He proposed one-time spending of $100 million for school renovations and construction and $50 million to expand broadband access.

Those priorities echoed themes that helped him win the governor’s office in 2019. However, Republican lawmakers, with veto-proof majorities that grew in the 2020 election, will reshape the budget to their liking.