FRANKFORT, Ky. – Addressing Kentucky’s underfunded pension systems was the top priority in the Senate’s version of House Bill (HB) 303, the state’s two-year budget, which passed the Kentucky Senate on March 23.
One major difference between the Senate’s budget and the House’s budget they passed last week is structural balance. That means that our budget does not use one-time funds to pay for recurring expenses. We are also dedicating more funding to the Kentucky Teachers’ Retirement System (KTRS) in addition to more funding for the Kentucky Retirement Systems’ (KRS) non-hazardous fund than both the Governor and House combined.
We are dedicated to funding our pension systems, especially KRS, which is dangerously underfunded. Unlike the House, we are setting aside $250 million for a permanent (pension) fund. Of that, $3 million would be used to commission an external performance audit of KTRS while holding the remaining $247 million to address the pensions upon completion of the audit. In total, 100 percent of the permanent fund will be used to address the pension crisis once the audit, which will be used to identify areas of failure in the system, is completed.
The Senate budget also provides $372.5 million, the highest amount in the Commonwealth’s history, for the Budget Reserve Trust Fund, which provides for unexpected expenses such as natural disasters, SEEK reductions, economic development, and other such unforeseen events.
One of our main goals in this budget is to cut our state’s long-term debt. By moving forward with certain budget reductions and reducing bond use in project payments, we hope we can reduce the strain on our children’s financial situation in the years to come.
While debating the budget, we also passed a number of bills through the Senate this week:
- Convicted Felons Right to Vote – Senate Bill 299 (SB) is a proposed constitutional amendment that would give the Kentucky General Assembly, if approved by Kentucky voters, the ability to set parameters to restore the voting rights of certain low-level felons. This amendment would be put on the ballot in November in order to give the citizens of Kentucky the right to decide.
- Military Training – SB 256, relating to military service, would allow for any high school student participating in basic training required by a branch of the United States Armed Forces to be considered present for all purposes for up to ten days.
- REAL ID – SB 245, also known as the “real ID” law, would align Kentucky with federal identification laws. This bill would give Kentuckians the option to attain a federally approved Kentucky driver’s license that could be used for domestic air travel; current Kentucky driver’s licenses will no longer be a valid form of ID for airline travel in 2018. The process for our current driver’s licenses will remain, and obtaining one of the new licenses is completely optional.
- P3s – HB 309 would allow the state of Kentucky to use public-private partnerships, also known as P3s, as an alternative funding method for economic development projects. At least 35 other states have already enacted similar legislation, including all seven states surrounding Kentucky.
- Colon Cancer – HB 115 would encourage the diagnosis and treatment of colon cancer across Kentucky.
- Domestic Violence – HB 59 would help protect victims of violence by making it harder for their abusers to obtain the current address of residence.
- Veterans – HB 225 would make it easier for veterans to obtain a professional license or certificate after meeting certain criteria based on the skills they learned during their service.
- Synthetic Drugs – HB 4 would increase the penalties for trafficking in synthetic drugs.
- School Principal Selection – HB 184 would provide an alternative principal selection process for county school districts in a county with a consolidated local government.
After being debated and finalized between members of the House and the Senate, the budget will be sent to Governor Bevin to be approved or vetoed. Once he gives final approval during his 10-day veto period, the House and the Senate will have one more opportunity to make final changes.
Much of my time this week was devoted to working on the budget with Senate leadership, budget staff, and other budget review subcommittee chairs. In between budget meetings, I presented four bills to House committees, all of which passed. They include: SB 16 (Look Before You Lock), SB 206 (Police Rehire), SB 141 (Municipal Utility Board) and SB 206 (Bullying). I also presented a House bill to a senate committee — HB 259 (misdemeanor arrest) and its companion bill in the Senate.
Finally, I welcomed several guests to Frankfort this week including the 4-H Club from Carlisle Co.; Leadership (Adult) Ballard Co.; Mr. Chris Hutson (Baptist Health Board Chair); Pastor Brandt Lyon and his sons; Brian Pollock teachers from Marshall Co., McCracken Co., and Paducah; and a high school friend, Judge Beth (Lewis) Mays.
If you have any questions or comments about these issues or any other public policy issue, please call me toll-free at 1-800-372-7181 or e-mail me at danny.carroll@lrc.ky.gov. You can also review the legislature’s work online at www.lrc.ky.gov.