I hope you had a safe and enjoyable Independence Day and are staying cool during these hot summer days.
On July 1, Kentucky officially entered the new fiscal year, meaning budget-related legislation from the 2024 Legislative Session—including the state road plan that included a $450 million infusion from the state’s budget reserve trust fund—is now in effect. The state budget included more record funding for education, and House Bill 1 included $2.7 billion from the state’s budget reserve trust fund for one-time transformative projects in communities across Kentucky. I am pleased we made these critical investments while lowering your income tax to 4 percent.
Recent updates resulting from legislation enacted in the 2024 Legislative Session include the proactive measures taken by the Kentucky Attorney General’s Office. The office is utilizing millions of dollars provided by the legislature for the Electric Reliability Defense Fund, a strategic move to defend against unworkable mandates and federal overreach from Washington, D.C. Attorney General Russell Coleman, in collaboration with West Virginia Attorney General Patrick Morrisey, has filed a challenge to the Biden administration’s latest attempt to drive gas-powered cars off the road by mandating auto manufacturers meet elective vehicle production requirements.
We must have an all-the-above energy policy here in Kentucky. With efforts to progress toward nuclear energy development, give oversight to the federally pressured quick retirement of our coal-fired plants, and more, I think it is entirely appropriate that we do what we can as a state legislature to push back against unreasonable federal mandates impacting the energy costs of Kentucky families. I applaud the attorney general’s actions and hope the federal government will reconsider heavy-handed mandates.
The attorney general’s office has also announced that it has launched a new Office of Administrative Hearings and named an executive director to that office. The new office aims to provide independent and fair administrative review services to the state’s largest executive branch cabinet, the Cabinet for Health and Family Services.
Similarly, Auditor Allison Ball’s office has announced the official transfer of the CHFS Ombudsman’s Office to the auditor’s office. The ombudsman’s office will investigate complaints about CHFS and work to resolve Kentuckians’ complaints concerning employees, contractors, or public service programs.
These moves will provide much-needed oversight to CHFS, which will receive more than $46 billion in taxpayer funds in the next two years.
Finally, Kentucky Child Support Services has officially transitioned to the attorney general’s office due to legislation from the Kentucky General Assembly. This will allow stronger enforcement of child support. Kentucky currently has nearly $2 billion in unpaid child support. As Chair of the Senate Families and Children committee, I am optimistic we can realize more vigorous enforcement of child support because the goal is ensuring we care for Kentucky kids. Parents are those who, first and foremost, must step up. Absent parents attempting to skirt their responsibility to their children is unacceptable.
As we continue our efforts in Frankfort during the early weeks of the 2024 Interim, I want to provide you with the latest legislative updates from recent Interim Joint Committee (IJC) meetings.
The IJC on Health Services recently heard from representatives from the Kentucky Justice and Public Safety Cabinet. They reported nearly 80 percent of Kentucky’s 1,984 drug overdose deaths in 2023 were attributed to fentanyl. Dealers make a profit of between $15,000 and $20,000 per kilogram of fentanyl, and one kilogram produces up to 100,000 pills. Fentanyl is now the number one cause of death for 18- to 45-year-olds. This deadly drug that is taking the lives of children and law enforcement officers is being smuggled into the United States from Mexico. It is a critical and clear example of how border control issues make every state a border state.
The committee also received a briefing on the state’s urgent mental health crisis intervention strategies. Critical updates included expanding the Crisis Intervention Team training for law enforcement and first responders to handle mental health emergencies better. Additionally, the committee discussed implementing a statewide mental health hotline to provide immediate support and resources for individuals in crisis. The hotline is set to launch by the end of the year, with significant funding allocated for training and infrastructure.
The IJC on Veterans, Military Affairs, and Public Protection heard from the Kentucky Community and Technical College Systems (KCTCS), which provided an overview of KCTCS’s engagement with military-connected students.
KCTCS, comprising 16 colleges with over 70 campuses, has enrolled an average of 6,539 students annually over the past three years, including veterans, military-connected individuals, and active-duty personnel. The enrollment numbers reflect a steady increase in these groups, with active duty up by 13.9 percent, veterans by 20.5 percent, and military-connected students by 37.6 percent. Hopkinsville CTC leads in active-duty enrollments, while Elizabethtown CTC enrolls the highest number of veterans.
The presentation emphasized the importance of credential attainment, noting that KCTCS awards an average of 3,486 credentials annually to military-connected students. It also highlighted the tuition waiver benefit provided by the Commonwealth of Kentucky for veterans’ families. It mentioned the role of the system office director and veterans certifying officials at each college in facilitating military enrollment.
KCTCS has focused on creating system-wide credit for prior learning for military training. It uses the American Council on Education Institutional database to compare joint service transcripts to its catalog and aid in credit equivalency decisions. Accelerated pathways to civilian occupations for veterans have been developed, and partnerships with the KY Chamber Military Hiring Academy, Fort Campbell, and Fort Knox are maintained.
The presentation also covered the “Boots on the Ground” initiative at Elizabethtown CTC, including a comprehensive plan, the Fort Knox Accelerate Pilot, collaboration with USA Cares, dual credit engagement, and support for military spouses. The third annual Veterans Employment and Training Symposium will be at the System Office in Versailles November 12-14, featuring representatives from various state and federal agencies and organizations, with an open invitation to attend.
The IJC on Economic Development and Workforce Investment had an agenda item focused on making Kentucky first in good business. Lawmakers heard from Canopy KY, an initiative aimed at helping Kentucky foster business practices that positively impact people and the future. Canopy’s efforts are supported by notable individuals and organizations, and its initiatives aim to enhance Kentucky’s business environment, attract top talent, and drive economic growth.
The committee also heard testimony from Kentucky Power, which plays a significant role in utilities’ economic development. Kentucky Power serves 161,700 customers with 241 employees and contributes $12 million in state and local taxes.
Utility companies like Kentucky Power are critical to Kentucky’s energy infrastructure. During persisting inflation, Kentuckians have dealt with high utility bills, which have only been worsened by the federal government’s continued efforts to retire coal-fired plants quickly and with seemingly little regard for energy demands. Legislation out of the Kentucky General Assembly has attempted to take a more prudent approach by passing bills like Senate Bill 349, which establishes the Energy Planning and Inventory Commission.
Grid operators continue to warn that shifting away from fossil fuels too quickly risks the reliability of our grid. EPIC will develop a comprehensive energy strategy recognizing that Kentucky’s energy needs are best met with an all-of-the-above generation mix. We must take a measured approach to maintaining a reliable, resilient, and secure electric grid. A recent Summer Reliability Assessment highlights that Kentucky and several other states face an elevated risk of power supply shortfalls this summer. This risk is attributed to various factors, including the intermittent nature of renewable energy sources like wind and solar, which may need to perform optimally during peak demand periods. Kentucky, along with other states in the operating region, is expected to have sufficient resources for regular summer peak demand but faces challenges due to generator retirements and increased reserve requirements.
During the most recent Public Pension Oversight Board meeting, lawmakers received an update from the Kentucky Public Pension Authority and the Kentucky Teachers Retirement System (KTRS)
KPPA provided an update on the implementation of House Bill 8 from the 2021 session, which reformed how employers contribute to the Kentucky Employee Retirement System (KERS) for non-hazardous employees. HB 8 aims to deal with payroll cuts from downsizing and outsourcing by fixing each employer’s contribution rate based on their share of the total pension debt as of 2019. Employers must report data on independent contractors and leased employees. Every year, 5 percent of these reports will be audited for accuracy. The contribution amount is calculated using a set formula. Reporting deadlines are April 15, June 30, August 29, and September 30. This means that employers will have a precise, fixed rate to pay into the pension system, ensuring more stable funding despite changes in payroll size.
The IJC on Transportation will hold its second meeting of the 2024 Interim at 1 p.m. Tuesday, July 16 in Room 149 of the Capitol Annex building. Topics will include updates on the driver’s licensing system and new regional offices, the NEVI electric vehicle charging station grant program, and KAVIS from the Kentucky Transportation Cabinet (KYTC). The IJC on Agriculture will meet at 9 a.m. Thursday, July 18. The agenda includes an overview of Kentucky Department of Agriculture programs, featuring presentations by Jonathan Shell, commissioner of the Kentucky Department of Agriculture, and Brandon Reed, executive director of the Kentucky Office of Agricultural Policy. The Artificial Intelligence Task Force will have its first meeting at 11 a.m. on Tuesday, July 9. The agenda includes the charge of the task force and an overview of AI in both the private and public sectors, with presentations from Microsoft and the National Association of State Chief Information Officers. The Government Contract Review Committee will also meet at 9 a.m. on Tuesday, July 9, in Room 129 to consider various contracts.
The IJC on Education will hold its second meeting of the 2024 Interim at 11 a.m. Tuesday, July 16, in Room 154 of the Capitol Annex building. The IJC on Appropriations and Revenue will meet at 1 p.m. Wednesday, July 17. Budget Review Subcommittee meetings will occur in the morning on the same day as the Appropriations and Revenue Committee meeting. The Efficient and Effective School District Governance Task Force will hold its first meeting of the 2024 Interim at 1 p.m. Monday, July 15, in Room 154. The Tobacco Settlement Agreement Fund Oversight Committee will meet at 10:30 a.m. Thursday, July 11. Agendas for these meetings are still pending but will be available at Legislature.ky.gov once determined.
All meetings will be live-streamed on the LRC YouTube site. Select meetings will also be available on Kentucky Education Television (KET): KET.org/Legislature.
These discussions will help us navigate the interim period and prepare for the 2025 legislative session. Stay tuned for further updates, and contact my office anytime with your thoughts.