FRANKFORT, Ky. — After delaying his State of the Commonwealth and Budget Address Wednesday night due to riots at the nation’s Capitol, Governor Andy Beshear delivered delivered it virtually on Thursday to a joint meeting of the General Assembly.
“Tonight, I address both a state and a country that are hurting,” Gov. Beshear said during his address. “Hurting from a pandemic that has swept across the world, upended our economy and taken the lives of our loved ones. Hurting from attacks on our democracy that yesterday rose to the level of a direct attack on the United States Capitol.”
The governor's main theme surrounded the impact coronavirus had on the state in the last year. He addressed the financial hardship of the pandemic with Kentuckians facing unemployment and businesses hit by closures. He said due to sacrifices Kentuckians have made during the pandemic, lives were saved and the state is prepared to defeat the virus.
“You can look at the devastating experiences in states that failed to take the same aggressive steps we have to stop this deadly virus,” Gov. Beshear said. “Through these trials, we learned that an effective virus response is necessary to sustain and rebuild our economy.”
During the address, Governor Beshear unveiled his Better Kentucky Budget proposal which includes three pillars and does not rely on new taxes or cuts.
“To achieve our goal of a better Kentucky, all branches of government must be prepared to take bold action,” Gov. Beshear. “We have not had this much opportunity for new investment in our people and our future in a generation. Let’s make it count. Let’s have courage. Let’s be bold. Let’s not fumble the opportunity.”
As part of his unveiled budget plan, the governor also said he is asking the General Assembly to pass a special appropriations bill that addresses immediate COVID-19 relief. It includes over $200 million to small businesses, $20 million to aid nonprofits and $100 million to repay the unemployment insurance loan.
"I'm asking the General Assembly to pass this funding in a separate bill to make it available immediately," Beshear said.
Following the address, House and Senate Minority Leaders Joni Jenkins and Morgan McGarvey said they supported the proposal, calling it "mostly good news."
But Senate President Robert Stivers and House Speaker David Osborne expressed some concerns. Republicans have a supermajority in both houses.
"These numbers have been artificially inflated by billions and billions of money borrowed at the federal level being infused into our state economy," Stivers said.
"I think you will still see us take a very, very conservative approach and we'll still have a very lean budget going forward," Osborne said.
Both Republican leaders said they agreed the state is "in a better spot" financially than expected. They also said they do believe there are points of "common ground" with Beshear's plan, but Osborne still questioned parts of it, including the pay raises for teachers.
"Certainly our teachers and state employees are very deserving," Osborne said. "But I think we also have to acknowledge that there are still tens of thousands of people that are out of work."
Given the unusual year with budget work during a short session, the lawmakers said a budget will be approved quickly. The House and Senate will move forward with drafting their plans Friday.
The full transcript of the governor's address can be found below:
Pillar 1
The first pillar of the governor’s budget proposal includes relief for small businesses and individuals. Highlights from Pillar 1 include:
- A proposed bill making $220M available in the Better Kentucky Small Business fund
- $48M in CARES Act funding for those who waited too long for unemployment benefits or were ineligible for the federal Lost Wages Program
- $47.5M allocated to correct the state’s outdated unemployment system
- $100M in CARES Act funding to repay UI loans
Pillar 2
The second pillar of the governor’s proposal prioritizes needs of Kentuckians and their families. Highlights from Pillar 2 include:
- Proposed $1,000 raises for teachers and classified staffers who have gone above and beyond duties
- Proposed 1% raise for hardworking state employees
- Proposed $600 stipend increase for local and state law enforcement and firefighters
- Increasing SEEK formula and funding textbooks and technology for school children
- Preschool programs in disadvantaged areas
- Restoring teacher loan forgiveness program
- Fully funding Medicaid
- Doubling General Fund support for local health departments
- Full pension funding for the Teacher’s Retirement System
Pillar 3
The third pillar focuses on investing in Kentucky’s future. Highlights from pillar 3 include:
- $272 million in one-time funds to improve infrastructure and create thousands of jobs
- $100 million on time fund to renovate or replace crumbling schools
- $50 million to fund last-mile broadband coverage
- $7.7 million in state bond funds to match $38.7 million in federal dollars to repair, replace and improve local drinking water and wastewater infrastructure
Response to governor’s budget proposal
Brent McKim, President, Jefferson County Teachers Association
“The Jefferson County Teachers Association applauds the unprecedented investments in public education that Gov. Beshear’s budget proposes. These investments in our public schools and educators are essential if the commonwealth is to compete successfully in our global 21st century economy. Thank you Gov. Beshear for keeping your promise to make public education a top priority in all you do.”
Joe Baer, President, Kentucky Professional Firefighters Association
“A budget is a statement of values, and Gov. Beshear has shown once again that he values Kentucky’s firefighters. Gov. Beshear continues to support our frontline first responders in his budget proposal by including the additional $600 training incentive, as well as continued funding for firefighter mental health. This is an acknowledgment by Gov. Beshear that we have stepped up to the plate in this pandemic to provide quality service to our communities.”
Bart Baldwin, Executive Director, Kentucky Health Resources Alliance
“The Governor's inclusion of additional funds to support a legislative solution to the pension crisis for Community Mental Health Centers and public health departments will be crucial to maintaining the public safety net for our most vulnerable Kentuckians. These agencies are and will continue to be on the frontline of supporting citizens during the pandemic and in our efforts to recover from the long-term impact on our mental and physical health.”
Berl Purdue, President, Kentucky Fraternal Order of Police
“The Kentucky Fraternal Order of Police appreciates the opportunity to meet with Gov. Beshear to discuss his draft budget. It is encouraging that he has fully funded the retirement ARC payments while at the same time providing a pay increase for state employees. His desire to invest in facilities at the Department of Criminal Justice training is necessary and we applaud his efforts to secure those funds. We will always strive to be the best trained and equipped Law Enforcement in the country and this draft budget helps us reach that goal. The Kentucky Fraternal Order of Police represents more than 10,800 current and retired officers. The items in this draft budget will help us recruit, retain and train the officers needed to protect the commonwealth.”
Eddie Campbell , KEA President
“Governor Beshear’s proposed budget provides immediate financial relief to schools, prioritizes Kentucky’s citizens, and makes significant investments in our collective future. The Governor knows that the best thing he can do for all Kentucky citizens is to appropriately use the more than $900 million in federal funds that are coming to the Commonwealth to timely address urgent issues facing our state. We are pleased that the proposed budget uses some of those funds for public education. The last nine months have laid bare the inequities created by chronically underfunding public schools. It is equally important that individual citizens and the small businesses, state agencies, and non-profits they rely on for vital services also receive relief.
“Governor Beshear’s increased investments in SEEK, new technology, preschool, new school facilities and broadband puts the needs of our students first, and ensures that our classrooms offer a quality environment to learn. Proposed investments in teacher and education support professional pay, retirement and loan forgiveness helps ensure we continue to attract and retain quality educators. And fully funding our retired teacher medical insurance illustrates the governor’s commitment to those educators who have spent their careers educating Kentucky’s children.
“Making these investments today will build a great foundation for Kentucky and will pay dividends for all citizens far into the future.”
Joint statement is from House and Senate Democratic Caucus leaders. Those in the House are Caucus Leader Joni Jenkins, Caucus Chair Derrick Graham, and Caucus Whip Angie Hatton. Those in the Senate are Caucus Leader Morgan McGarvey, Caucus Chair Reginald Thomas and Caucus Whip Dennis Parrett.
“Governor Beshear’s budget is exactly the blueprint state government needs to help Kentuckians navigate what will hopefully be the final months of the COVID-19 pandemic. It makes major investments in our economy – including providing much-needed help for struggling businesses and those still unemployed – and it puts the commonwealth in position to thrive in the years ahead. We also value the increased investment in our schools, our state workers, and critical healthcare programs. We are definitely pleased that state revenues continue to be much stronger than expected, something that would have been thought impossible back in March. It’s hard to imagine how the General Assembly improves this spending plan.”
This story will be updated.
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