A nonprofit publication of the Kentucky Center for Public Service Journalism

Legislature passes one-year budget in a coronavirus ‘unusual situation’ and facing uncertain revenues


Staff report

Social distancing was being observed by the General Assembly as they met Wednesday to take up the budget bills for the executive, legislative and judicial branches.

While the Senate spread out in the chamber for their votes, the House took a more unusual approach. They adopted a change to the House rules that allowed them to vote remotely.

Many of the members remained at their offices in the Capitol Annex and submitted their votes to their respective party leaders, who then read them on the floor.

Since the Senate made changes to each of the measures, the House was required to agree with the changes before they could take their final votes.

Sen. Christian McDaniel, R-Taylor Mill, the chairman of the House Appropriations and Revenue Committee, presented the bill on the Senate floor, saying this is an unusual situation.

Keeping “social distancing” in the Kentucky House

“Every session has its own unique feel, and every budget has its own unique feel,” he said.  “This one was different from any other by a large measure. The uncertainty swirling around our society, both in the public health and economic sectors, is simply unparalleled to what anyone in this chamber and society has ever dealt with.”

He said the General Assembly has done its best, given the uncertainty of what revenues will be due to the health and economic fallout from the coronavirus pandemic.  “As much as we would like to provide a two-year budget, we will not. This will be a one-year budget, which will last until June 30, 2021. This was in consultation with the Executive Branch and the House conferees.”

The Senate passed every budget bill unanimously, for the executive, legislative and judicial branches, as well as the transportation and road plan and the revenue bill.

Since the Senate made changes to the House bills, they returned to that chamber, where the members agreed with the Senate changes, sending the measures on to Gov. Andy Beshear for his signature.

The General Assembly will be in recess until April 13 for the last three days of the session.

In reaction to the one-year budget, Aaron Thompson of the Kentucky Council on Higher Education extended his appreciation for a “budget (that) keeps higher education funding at its current level with no additional cuts. I am pleased that comprehensive universities were granted relief from rising pension obligations, which remain at 49% for fiscal year 2021. This move will provide regional universities with much-needed flexibility to fund critical operations while preserving current staffing levels.”

Funding for need-based aid continues at its current level.

“At some point, additional investment will be needed to ensure our colleges and universities can continue to provide the education, training, research and community outreach that improves the lives and livelihoods of all Kentuckians,” said Thompson.

Kentucky lawmakers passed a slimmed-down, one-year state budget Wednesday without pay raises for school teachers or increased education funding — priorities that fell victim to the dramatic economic downturn caused by the coronavirus pandemic.

The new spending plan reflects state tax collections that are expected to plummet, with many businesses across the state shuttered in an effort to slow the virus’s spread. Layoffs have caused filings for unemployment benefits to skyrocket.

Senate President Robert Stivers said: “We’re taking a shot in the dark.”

The new one-year spending plan will take effect July 1.

Missing from the new budget are Beshear’s proposals to significantly increase state funding for education and to give pay raises to teachers and state employees. Beshear’s call for a $2,000 pay boost for teachers was a centerpiece of his campaign when he ousted the Republican incumbent.

It fully funds required contributions for public pension systems. It features another one-year freeze on contribution rates for regional universities and community social services agencies that faced sharply higher pension costs. Funding is included to cushion the agencies from those higher costs.

There were no revenue-generating measures, such as casino gambling or sports gaming. But there is a new tax on vaping products.

Several lawmakers expressed hope that an economic recovery will be underway by the 2021 session, and that they will have more revenues to spend on the state’s needs.

Kentucky Today’s Tom Latek contributed to this report.


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