Kentucky Senate passes its version of new state budget
Associated Press | Hagadone News Network | UPDATED 5 years AGO
FRANKFORT, Ky. (AP) — The Kentucky Senate on Thursday passed its version of a new state budget that braces for an expected downturn in tax collections as the new coronavirus inflicts damage on the economy.
The Senate action was another phase in the budget-writing process. The next step will occur when House and Senate conferees meet to resolve differences in their budget plans.
Democratic Gov. Andy Beshear expressed his disappointment with the GOP-dominated Senate’s approach to two of his funding priorities — Medicaid and teachers. The governor offered a much milder assessment of the budget plan passed by the GOP-led House earlier this month.
Reflecting the new economic uncertainties, the Senate version includes “bumpers” that would stop certain spending increases if state revenues fall short of projections.
“Frankly, we do not know, nor do the experts, exactly where we will end up," said Sen. Chris McDaniel, chairman of the Senate Appropriations and Revenue Committee.
Regarding the state’s main funding formula for K-12 schools, known as SEEK, the Senate’s spending plan calls for a per-pupil base guarantee of $4,161 in each year of the two-year period.
“This budget contains more per-pupil funding for SEEK than in the history of any budget presented by a governor or another body in the General Assembly,” McDaniel said.
But under the Senate's plan, school districts would have to tap into SEEK funding to cover teacher pay raises and instructional materials. That's in conflict with Beshear's budget proposal, which earmarked funds for a $2,000 across-the-board pay raise for teachers. The new governor made the teacher pay raise a hallmark of his campaign last year.
Beshear criticized the Senate proposal for its treatment of teachers and Medicaid. The Medicaid-related proposals come at a time when people’s health is at risk from the coronavirus, he said.
“What I saw in that version of the budget was a cut to Medicaid, which we’re going to have more people on than ever,” the governor said. “What I saw was a cut of dollars to make sure every child is signed up for Medicaid. In a national pandemic, don't you all think every child should have health care? I do."
McDaniel said the Senate plan would not cut the benefits Kentuckians rely on. Instead, it would trim administrative expenses in the Medicaid program, he said.
Beshear also said the Senate plan would limit his authority to shift money to combat the virus.
The Senate budget also would put considerably more into the state’s rainy day fund — seen as a cushion in case the economy continues to be damaged by fallout from the virus.
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