Kentucky General Assembly sends budget plan to Beshear

(The Center Square) – After posting their conference report over the weekend, the Kentucky General Assembly wasted little time in approving a one-year $12 billion budget for the fiscal year that starts in July.

The spending plan, House Bill 192, does not include the $2.4 billion the state expects to receive from the American Rescue Plan, which Congress passed last week. However, it does stipulate that those funds cannot be spent without lawmakers’ approval.

Instead, Republican leaders have decided to hold off on earmarking those funds. Senate President Robert Stivers, R-Manchester, told colleagues Monday they await “guidance” from federal officials on how the state can spend the money.

Stivers added that there may be as many as three budgets that lawmakers may need to approve once the state gets direction from Washington. For instance, Rescue Plan funding potentially could be used to replace state money in the budget and that would then free up state dollars that won’t have the same restrictions on it.

When it comes time to spend the money, Stivers said lawmakers will be bold in doing so. He cited creating something like Research Triangle Park, a high-tech research and development park in North Carolina, as an example.

“An old friend mine used to say, ‘Let’s shoot for the moon, and if we miss, we’ll be in the stars,’” he said.

The Senate approved HB192 by a 30-0 vote, with six members passing. Senate Minority Leader Morgan McGarvey, D-Louisville, was one of five Democrats to do so. He said the current budget isn’t what the state needs right now, but he wants “to stay engaged” in the process.

Hours later, the House approved the bill by a 74-23 vote. That came after Gov. Andy Beshear told reporters Monday he was “disappointed” that lawmakers took out $220 million he proposed for aid to small businesses hurt by the COVID-19 pandemic.

Beshear last week proposed using some of the Rescue Plan funding to shore up the state’s infrastructure, including connecting all residents to safe drinking water and broadband internet. At his daily COVID briefing Monday, he said those projects alone would create up to 30,000 new jobs over the next 18 months.

While Democrats held off on voting no in the Senate, House minority members did not do so.

“Kentucky families need our help right now more than ever,” state Rep. Cherlynn Stevenson, D-Lexington, said. “Small businesses need our help right now more than ever. Nonprofits need our help more than ever.”

By approving the bill Monday, lawmakers were able to send the measure to Beshear during the upcoming 10-day veto window that starts Wednesday. While the governor has line-item veto authority, Republicans, who control both legislative chambers, now will have two days to override any vetoes at the end of the month.

By state law, the session must end on March 30.

Disclaimer: This content is distributed by The Center Square