When lawmakers mate in January, they will have the largest rainy day fund in Kentucky's history at their disposal.

Just how much lawmakers dip into that fund will be up for debate, as Kentucky Edition's June Lefler reports.

Progressive groups are eyeing that money for historic investments, while conservatives are saying not so fast.

A legitimate and credible rainy day fund is one of the more signature accomplishments of the General Assembly in the last five years.

Now, the rainy day fund, also called the Budget Reserve Trust Fund, sits at $3.7 billion, but has this economic safety net grown out of control?

The economy is very historically strong right now, but the legislature has been holding back what it puts in the budget and putting it in the rainy day fund to the to an excessive amount.

At this point.

Other states, rainy day funds are on average 12% of their operating budget, according to the Center on Budget and Policy Priorities.

Kentucky's fund is at 25%.

But we need a rainy day fund.

We need a good one, but we don't need to stockpile excessive moneys when our communities are stockpiling problems.

Progressive groups and unions that formed the Kentucky Together Coalition say now is the time for historic investments in social services.

Democratic lawmakers agree.

We have a considerable broad need, you know, especially in education, health care.

Child care and cost of living adjustments so Kentuckians can keep up with inflation.

But I'll tell you, has it received nothing except higher bills and higher health care costs?

And that's our retirees or our state employee entire.

If we're ever going to put a nice, healthy cola, now is the best time to do that.

And then there's just we just cannot wait any longer.

But these are all recurring expenses, meaning recurring commitments.

And some recurring costs would be continuing to fund to look to funding more education funding.

So if you look at the sake formula and let's just say we wanted to add $100, that base formula, you're looking at an $80 million hit to the general fund, not just this year, but every year.

That means one time investments might appeal to more fiscal conservatives.

We've got deferred maintenance in our ports and bridges and our airports for sure.

If we can invest in some of those areas that continue to grow jobs and sales tax and and have more money in their pockets for people that that in turn, you know, increases the general fund.

Still, it's too early to guess how frugal or extravagant the legislature will act come January.

But I think everything is on the table as we move forward.

For Kentucky Edition, I'm June Leffler.