Beech Tree News Network

 FRANKFORT, Ky. (April 2, 2018) – The Kentucky House of Representatives has finalized a two-year state budget that pours $3.3 billion into the pension systems, boosts SEEK classroom funding to $4,000, and fully restores all of the Governor’s cuts to school transportation and retiree health insurance.

The budget bill is also notable for getting to the Governor before the ten day veto recess, preserving the Legislature’s ability to override any vetoes that he may issue. House Bill 200 was the first budget in modern memory to get to the Governor’s desk before the veto period.

 “This budget makes the necessary investments in public education to prepare our next generation for the workforce, while also refusing to kick the can down the road like in the past by fully funding our pension systems,” said House Speaker Pro-Tempore David Osborne.

The measure restored the proposed cut to Family Resource and Youth Service Centers (FRYSC’s), while also increasing their funding. It provides no funding mechanism for charter schools over the next two years.

In addition to education, the budget also provided full funding for the Commonwealth’s woefully underfunded pension systems, meeting the ARC (Actuarily Required Contribution) while also not funding the Legislative Retirement Plan. Funding originally proposed for that plan was rerouted to our dedicated servants in the State Police Retirement System Fund, which faces a perilously large unfunded liability.

The budget prioritizing pension and education funding was made possible by a tax reform measure that raised revenue by modernizing Kentucky’s tax code, broadening Kentucky’s tax base while also lowering rates for Kentucky families.

After passing the Senate earlier in the day, the document now heads to Governor Bevin for approval.