(The Center Square) – The Kentucky House of Representatives sent the state spending plan for the next two years to the Senate with what Republicans call an eye toward the future.
The package of bills calls for $29 billion in spending in the General Fund and another $1.7 billion from reserves over the next two years.
The budget includes increased per-pupil spending for schools and another $1.5 billion to pay down the unfunded pension system.
Rep. Jason Petrie, R-Elkton and committee chairman for the House Budget Review Subcommittees, said budget writers looked at the next two years and beyond.
“The way this document comes together fundamentally starts with those agency budget requests,” Petrie said. “And that sets our pensions, our payroll and what needs to be increased and decreased, added in new and all for consideration.”
The budget fully funds public school transportation and includes money for clean drinking water and public safety.
Democrats, however, wanted to use a growing state reserve on things like teacher retention.
“Our state is making a financial blunder by stockpiling billions of dollars when Kentuckians still have needs,” Rep. Josie Raymond, D-Louisville, said in a statement.
Rep. Derrick Graham, D-Frankfort, minority floor leader in the House, said state retirees have not received a cost-of-living increase since 2012, and the state should use $100 million of reserves to give them a 13th retirement check.
“We know the need, and we have the money,” Graham said during the debate. “Now, let’s just come together and find a way to appropriate this money to help the people who help us each and every day.”
Petrie said the House-passed budget is not final.
“I don’t take anything off the table,” Petrie said.
At the same time, House Bill 1 passed. This legislation commits one-time state reserve trust fund money to infrastructure improvements, state employee and teacher pensions, economic development projects and public safety.
Rep. Steven Rudy, R-Paducah, the chamber’s majority floor leader, said, “House Bill 1 is a one-time money spending on one-time expenses with one-time money.”
