>> Renee: GOOD EVENING.

WELCOME TO "KENTUCKY TONIGHT."

I'M RENEE SHAW.

THANK YOU SO VERY MUCH FOR JOINING UGS.

KENTUCKY LAWMAKERS HAVE JUST S OFFICIAL WORK DAYS LEFT IN THIS SESSION OF THE GENERAL ASSEMBLY BUDGET NEGOTIATORS ARE WORKING TO RECONCILE THEIR DIFFERENCES ON THE STATE'S ONE-YEAR SPENDIN PLAN, WHICH IS WHY WE'RE HERE IN THE COMMITTEE ROOM IN THE STATE ANNEX IN KENTUCKY STATE CAPITOL IN FRANKFORT.

In THERE'S STILL PLENTY ON LEGISLATORS' TO DO LIST, AND FO THE NEXT HOUR WE'LL DRILL DOWN ON WHAT THEY'LL CONCENTRATE ON IN THE DAYS REMAINING.

OUR GUESTS TONIGHT ARE: SENATOR DAMON THAYER, A REPUBLICAN FROM GEORGETOWN AND SENATE MAJORITY FLOOR LEADER.

SENATOR REGGIE THOMAS, DEMOCRAT FROM LEXINGTON AND SENATE MINORITY CAUCUS CHAI REPRESENTATIVE CHAD MCCOY, A REPUBLICAN FROM BARDSTOWN AND HOUSE MAJORITY WHIP.

AND REPRESENTATIVE DERRICK GRAHAM, A DEMOCRAT FROM FRANKFORT AND HOUSE MINORITY CAUCUS CHAIR.

WE WANT YOU TO JOIN THE CONVERSATI SEND US A QUESTION OR COMMENT O SEND AN EMAIL TO KYTONIGHT@KET.

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WELCOME, GENTLEMEN FM THANK YOU SO VERY MUCH FOR BEING HERE IN THIS MAKE HIT STUDIO THAT WE'VE BEEN TALKING ABOUT BEFORE WE GOT ON PAPER I APPRECIATE YOU ALL MAKING TIME.

IT'S BEEN A BUSY, WELL, LAST 25 DAYS, BUT TODAY IN PARTICULAR HAS BEEN A BUSY FIRE ALL.

YOU ALL STARTED YOUR BUDGET NEGOTIATIONS AND LEADER THAYER I'M GOING START WITH YOU BECAUSE WE KNOW I ALWAYS ASK YOU THE FIRST QUESTIONEE.

WOULDN'T WOULDN'T WANT TO BREAK TRADITION.

AS I SAID, YOU ALL PASSED A BUDGET BEFORE THE FIRST RECESS WHICH WAS JUST A CONTINUATION BUDGET TO SET THE STAGE FOR THE NEGOTIATIONS.

TODAY WAS YOUR FIRST PUBLIC VIEWING OF READING THROUGH THE BUDGET, THE DIFFERENCES BETWEEN THE GOVERNOR'S PROPOSAL, HOUSE AND SENATE.

SO HOW FAR ALONG ARE YOU?

AND HAVE YOU BEEN MEETING BEFORE NOW TO KIND OF GET A SENSE OF WHERE THERE IS SOME RECONCILIATION?

>> RENEE, IT'S GREAT TO BE BACK ON YOUR SHOW.

THANK FOR ASKING.

IT'S ALWAYS GREAT TO BE HERE WITH YOU AND THESE GREAT GENTLEMEN TONIGHT.

WE'RE PRETTY FAR ALONG BECAUSE WE ARE GOING TO PASS A CONTINUATION BUDGET THAT'S GOING TO HAVE VERY FEW CHANGES IN IT WEEKS, AND YOU THINK ABOUT IT, UNDER NORMAL CIRCUMSTANCES, WEI WE'D BE IN THE MIDDLE OF A TWO-YEAR BUDGET.

WE DID A ONE-YEAR BUDGET LAST YEAR BECAUSE WE DIDN'T FEEL LIKE WE COULD ACCURATELY PREDICTED THE ECONOMIC FORECAST AND THEREFORE GENERAL FUND RECEIPTS IN THE SECOND HALF OF THE BIENNIUM BECAUSE WE DIDN'T KNOW WHAT THE EFFECT, THE COVID VIRUS WOULD HAVE ON OUR REVENUES, SO WE BUDGETED TO THE MOST PESSIMISTIC BUDGET FORECAST LAST YEAR PROVIDED TO US BY THE CON COUSINS CONSENSUS FORECAST GROUP A NON-PARTISAN GROUP THAT GIVES US ESTIMATES THROUGH THE THE YEAR ON WHERE OUR REVENUES STAND.

HERE WE ARE A YEAR LATER, AND WE'RE GOING PASS A BUDGET THAT'S VERY SIMILAR TO THE ONE WE DID LAST YEAR.

NOW, THERE'S GOOD NEWS IN THAT.

THE GOOD NEWS IS THE ECONOMY HASN'T TANKED SO BADLY THAT OUR REVENUES ARE DOWN SO FAR THAT WE HAVE TO MAKE CUTS, SO THAT'S REALLY GOOD NEWS.

WE'RE NOT GOING TO BE MAKING VERY MANY BIG INCREASES IN SPENDING AT ALL, AND I THINK THAT'S APPROPRIATE.

WE WANT TO BE VERY CAUTIOUS BECAUSE WHEN WE COME OUT OF THE BACK END OF THE PANDEMIC, WE STILL DON'T KNOW HOW QUICKLY THE ECONOMY'S GOING TO RECOVER ONCE WE STOP RELYING ON THESE DOLLARS FROM WASHINGTON, DC, WHICH ARE NOT RECURRING DOLLARS.

SO IT'S -- I KNOW THERE ARE PEOPLE WHO WANT TO US SPEND MORE MONEY.

THERE ARE PEOPLE WHO WANT TO US SPEND LESS MONEY.

AND I THINK THERE'S SOMETHING IN IT FOR EVERYBODY BECAUSE WE'RE GOING TO BE RIGHT IN THE MIDDLE, KIND OF RIGHT WHERE WE WERE LAST YEAR.

>> SO WE'LL TALK ABOUT THE APPROPRIATIONS AND THE REVENUE SIDE OF IT.

I WANT TO GO THIS SIDE BECAUSE YOU GENTLEMEN AS WELL WERE A PART OF THESE DISCUSSIONS TODAY.

DO YOU THINK IT'S THE RIGHT MOVE TO JUST BE IN A CONTINUATION MODE OR IS NOW THE TIME TO MAKE BIG, BOLD INVESTMENT BIKE THE GOVERNOR CALLED ON SEVERAL WEEKS AGO IN HIS STATE OF COMMONWEALTH BUDGET ADDRESS?

>> RENEE, THANKS FOR HAVING ME.

IT IS ALWAYS GOOD TO BE WITH YOU.

RENEE, AS I SAID SEVERAL TIMES, YOU CAN'T SAVE YOUR WAY TO PROSPERITY.

THAT IS NOT HOW YOU GET AHEAD.

I THINK WHAT THE GOVERNOR PROPOSED PRESENTS GREAT OPPORTUNITY FOR KENTUCKY, AND, YOU KNOW, I DON'T THINK WE SHOULD LOOK AT JUST DOING A BARE BONES BUDGET.

I THINK WE WOULD BE CHEATING TO I.

THE STATE IF WE DID THAT, RENEE.

AND LET ME JUST GIVE A COUPLE EXAMPLES.

WE CAN TALK MORE AS WE GET DEEPER INTO THE PROGRAM.

NUMBER 1, THE GOVERNOR'S PROPOSED $50 MILLION FOR BROADBAND ACCESS TO COMPLETE WHAT WE CALL THE LAST MILE OF THE KENTUCKY WIDE NETWORK, RENEE, I WILL TELL YOU WE NEED THAT.

AS WE HAVE SEEN THROUGH THIS PANDEMIC WE'VE GOT TO BE ABLE TO REACH EVERY KENTUCKIAN THROUGHOUT THE BORDERS, ALL THE WAY FROM PIKEVILLE TO PADUCAH, AS THEY SAY, FROM ASH TOLLAND HENDERSON.

EVERYBODY HAS TO HAVE IT, AND YOU HAVE TO HAVE IT FOR A COUPLE REASONS.

ONE FOR HEALTH CARE.

TELEHEALTH IS HERE.

DURING THE PANDEMIC WE HAD TO BE ABLE TO REACH THOSE PEOPLE WHO NEEDED HEALTH CARE, AND TELEHEALTH CAN DO THAT, AND WE'VE GOT TO ACCESS EVERYONE.

SECONDLY, EDUCATION.

WE'VE HAD ALMOST A YEAR OF NTI, AND THE STUDENTS THAT HADN'T HAD BROADBAND ACCESS HAVE REALLY BEEN LEFT BEHIND, SO WE'VE GOT TO HAVE THAT BROADBAND ACCESS.

THAT'S NUMBER ONE, RENEE.

WE'VE GOT TO ALLOCATE THAT $50 MILLION FOR BROADBAND.

NUMBER TWO WEEKS, AND THEN I WILL LET OTHERS SPEAK, RENEE, THE GOVERNOR'S PROPOSED $220 MILLION TO HELP SMALL BUSINESSES.

THEY HAVE SUFFERED TREMENDOUSLY IN THIS COVID PANELED.

MANY HAVE SHUT THEIR DOORS.

THOSE THAT HAVEN'T, WE'VE GOT TO PROVIDE THEM WITH SOME KIND OF RELIEF.

SO I THINK WE'VE GOT TO DO THOSE TWO THINGS TO MOVE THIS STATE FORWARD.

>> SO I WANT TO GO OVER TO REPRESENTATIVE McCOY.

I THINK THIS IS HIS FIRST TIME.

>> THAT YOU HAVE BEEN.

IT'S A PLEASURE.

>> GETTING TO THE FIRST POINT, AND I WANT TO GIVE YOU A CHANCE TO RESPOND, BUT TO SENATOR TEAMS POINT ABOUT BROADBAND, LAST WEEK, THE DAY BEFORE -- THE DAYS RUN TOGETHER -- THE HOUSE PASSED A BILL THAT WOULD SWAYS QUARTER OF A MILLION DOLLARS IN WHAT WAS DESCRIBED BY THE SPEAKER PRO-TEM, DAVID MEADE, AS THE LAST HOUSE ON THE LAST MILE IN THE FURTHEST COUNTY.

>> ABSOLUTELY, AND I THINK YOU'RE OFF A LITTLE ON THE SCALE.

I THINK IT'S MORE THAN A QUARTER MILLION.

IT I THINK IT MIGHT BE MORE OF A QUARTER OF A BILLION.

>> QUARTER OF A BILLION.

>> THAT'S OKAY.

HOUSE BILL 320.

THE SENATOR IS CORRECT.

THE DURING THIS QUARTER ONE OF THE THINGS WE LEARNED WAS WE CAN'T FUNCTION THE WAY WE NEED TO FUNCTION, ESPECIALLY DURING THE PANDEMIC.

OUR SCHOOLS P CAN'T OPERATE, PEOPLE CAN'T WORK.

SO GETTING THE LAST PERSON ON THE LAST MILE IS SOMETHING WE'VE GOT TO DO AND HOUSE BILL 320 DID A REALLY NICE JOB OF PULLING THE PFCs, THE RURAL ELECTRICS IN, TRYING TO FIGURE OUT WAY SO WE CAN DRILL DOWN, AND AND NOT WITH A BIG BROAD SWEEP LIKE SOME OF THE OTHER BILLS HAVE DONE, BUT LITERALLY FIND THOSE FOLKS WHETHER IT'S FAR RURAL, EASTERN AND WESTERN OR EVEN IN DOWNTOWN LOUISVILLE WE'VE GOT SOME DEAD AREAS, SO THAT'S A HIGH PRIORITY FOR US.

>> SO BROADBAND.

WHAT ELSE IS A HIGH PRIORITY FOR THE HOUSE?

>> YOU KNOW, WE TRAVEL SO MUCH.

THE HOUSE IS ALWAYS-RANKING WAYS TOO MAKE THE ECONOMY GROW AND MAKE AT A BETTER PLACE TO LIVE AND WORK IN KENTUCKY, AND WE'VE GOT SOME BIG PROBLEMS RIGHT NOW WITH UNEMPLOYMENT.

THAT IS A HUGE ONE.

HITTING NOT ONLY, I THINK WE'VE GOT 80,000 TO 100,000 PEOPLE THAT HAVE STILL GOT OPEN CLAIMS.

WE DON'T KNOW HOW MUCH WE OWE THEM.

WE'RE $700 MILLION IN DEBT THERE.

ON THE FLIP SIDE WHAT ABOUT THE EMPLOYERS AS WELL.

THEY'RE FACING THE POSSIBILITY OF INCREASED UNEMPLOYMENT COSTS THAT THEY'VE GOT TO PAY IN.

TRYING TO BALANCE THOSE, OPEN THE ECONOMY UP, KEEP PEOPLE WORKING AND GET OUT RIGHT TRACK.

>> AND THE OUTS ALSO PASSED A BILL DEALING THE BURL HOSPITALS LAST WEEK.

BY REPRESENTATIVE DANNY BENTLEY WHO MADE THIS PITCH IN A PREVIOUS SESSION BECAUSE HE IN HIS DISTRICT THERE I WAS HOSPITAL.

>> BELLEFONTE HOSPITAL WAS IN TROUBLE UP IN ASHLAND.

>> IT SET UP A FUND, A REVOLVING LOAN FUND LAST YEAR BUT THIS YEAR A YOU WILL HAVE A IPAD A BILL TO FUND THAT.

$20MILLION.

I HOPE I GOT THE MILLION RIGHT THAT.

>> YOU GOT THE AMOUNT RIGHT, YES, MA'AM.

AND OUR RURAL HOSPITALS, IF YOU THINK BACK TO WHEN THE GOVERNOR SORT OF SHUT THINGS DOWN, OFF THE A SUDDEN YOU COULDN'T HAVE THE ELECTIVE INSURGENCIES AND, QUITE FRANKLY, YOU DO NOT LIKE TO THINK ABOUT IT THAT WAY BUT THAT IS AN ACTUAL HUGE REVENUE PORTION FOR OUR LOCAL HOSPITALS, AND WITH THAT JUST BEING CUT OFF COLD TURKEY, THERE'S A LOT OF FOLKS THAT ARE REALLY STRUGGLING IN THAT HOSPITAL WORLD.

>> REPRESENTATIVE GRAHAM, GOOD TO HAVE YOU BACK.

>> THANK YOU.

>> BEEN A WHILE SINCE WE HAVE HAD YOU RETURN.

SO TELL US THE PERSPECTIVITY MINORITY CAUCUS IN THE HOUSE.

>> WELL, FROM OUR STANDPOINT OBVIOUSLY WE SUPPORTED AND WE STILL SUPPORT THE GOVERNOR'S RECOMMENDATIONS FOR THE BUDGET.

IF YOU LOOK AT THOSE RECOMMENDATIONS, I THINK IT WAS AS SENATOR THOMAS TALKED ABOUT, INVESTMENT IN INFRASTRUCTURE, BUT IT WAS ALSO AN INVESTMENT IN EDUCATION, FROM PRE-SCHOOL TO HIGHER ED, AND SO WE HAVE SUPPORTED ALL OF THOSE THINGS THAT HE RECOMMENDED THAT WE THINK HELPS PUT OUR ECONOMY -- MAKES OUR ECONOMY CONTINUE TO GROW AND TO GO, BUT ALSO SHOWS THE IMPORTANT FACTOR OF HOW EDUCATION IS A KEY TO SUCCESS NOT ONLY IN THIS COMMONWEALTH BUT TO OUR ECONOMY.

AND THE MORE THAT WE CAN INVEST IN EDUCATION, ESPECIALLY PRESCHOOL AND EARLY CHILDHOOD DEVELOPMENT EDUCATION, THAT IS THE KEY THAT OF OPENS UP TO SUCCESS.

AND AS I HAVE STATED WHEN I WAS EDUCATION CHAIR, EDUCATION IS THE KEY THAT OPENS UP THE OPPORTUNITY FOR ANYONE AND EVERYONE WHO LIVES IN THIS COMMONWEALTH.

AND SO THAT'S WHAT OUR FOCUS HALLS BEEN IN ADDITION TO WHAT SENATOR -- THE SENATOR THOMAS BALKED IN HIS COMMENTS AS WELL.

>> SO YOU ALSO SUPPORT THE GOVERNOR'S PROPOSAL FOR AN INCREASE IN PAY FOR CERTIFIED AND CLASSIFIED SO NOT JUST TEACHERS BUT THE BUS DRIVERS, COOKS.

>> THAT'S EXACTLY RIGHT.

>> ALL THOSE PERSONS AS WELL.

I WANT TO TURN OVER TO LEADER THAYER AND ASK HIM IS THERE A SENTIMENT WHEN WE TALKING ABOUT EDUCATION AND PAY PRAISES FOR EDUCATORS TO GIVE THEM A BOOST?

MAYBE IT'S NOT TO THE LEVEL WHAT THE GOVERNOR PROPOSED BUT IS THERE CONSIDERATION FOR BOTH CLASSIFIED AND CERTIFICATED STAFF TO GET A PAY INCREASE?

>> I DON'T THINK YOU'RE GOING TO SEE IN THE MIL OF THE PANDEMIC WITH THE ECONOMIC UNCERTAINTY THAT WE ARE LIVING UNDER A LOT OF FOLKS STILL UNEMPLOYED, A LOT OF UNCERTAINTY ABOUT THEIR JOBS IN THE PRIVATE SECTOR, I DON'T SEE ANY PAY RAISES OCCURRING IN THIS BUDGET 4 PUBLIC SECTOR EMPLOYEES, JUST NOT THE RESPONSIBLE THING TO DO RIGHT NOW IN THE MIDDLE OF THIS PANDEMIC.

IT COULD HAPPEN NEXT YEAR.

I MEAN, WE'RE GOING TO DO THREE BUDGETS IN A ROW, SO -- >> RIGHT.

>> -- I WOULD VERY MUCH LIKE IT IF A YEAR FROM NOW WE'RE TALKING ABOUT INCREASES IN THE SEEK FORMULA AND POTENTIALLY MEETING OUT RAISES, BUT RIGHT NOW I DON'T SEE THAT HAPPENING.

DO I THINK THERE WILL BE MORE MONEY SPENT ON BROADBAND.

YOU TALKED ABOUT THAT.

>> DO YOU AGREE WITH THE HOUSE, WHAT THEY JUST PASSED LAST WEEK?

>> I DON'T KNOW THAT WE'RE GOING TO DO $250 MILLION.

THE GOVERNOR PROPOSED 250 MILLION DOLLARS.

THE HOUSE PROPOSED $250 MILLION.

I HOPE WE NEGOTIATE AND COME UP WITH SOMETHING IN THE MIDDLE.

IT BEING I HUNDRED MILLION DOLLARS.

>> WHERE DOES THAT MONEY COME FROM?

>> YOU'VE GOT THE ONE-TIME MONEY THAT WE'RE GOING TO PUT MOST OF IT IS IN THE BUDGET RESERVE TRUST PUNNED.

BUT WE THINK THAT USING SOME OF IT TO INVEST IN BROADBAND IS THE APPROPRIATE WAY TO GO.

NOT ONLY DO WE HAVE PLACES IN RURAL KENTUCKY THAT ARE WITHOUT BROADBAND, BUT WHERE I LIVE IN GEORGETOWN, THE FASTEST GROWING CITY AND SCOTT COUNTY THE SECOND FASTEST GROWING COUNTY, WE HAVE PLACES THERE IN A VERY POPULOUS GROWING AREA WITH VERY CLOSE TO LEXINGTON RIGHT OFF TWO MAJOR INTERSTATES THAT ARE DEAD ZONES.

MY EXECUTIVE GEORGE IS BEGGING FOR SOME KIND OF RELIEF AS ARE EVER, LOTS OF MAYORS AND JUDGE EXECUTIVES.

I THINK WE WILL COME UP A SIGNIFICANT AMOUNT OF MONEY THAT'S MORE THAN WHAT THE GOVERNOR IS RECOMMENDED, BUT PROBABLY NOT AS MUCH AS THE HOUSE PASSED IN HOUSE BILL 320, AND WE ALSO WANT TO MAKE SURE THAT IT'S ACCOUNTABLE.

WE JUST DON'T WANT TO TURN THIS INTO A SPENDING SPEED BOONDOGGLE.

WE WANT TO MAKE SURE THAT IS THAT AS REPRESENTATIVE McCOY SAID, WE ARE GETTING THE LAST MILE OF BROADBAND INTO THESE HOUSES WHERE THEY DON'T HAVE ANY SERVICES RIGHT NOW, AND SO WE'RE WORKING WITH THE HOUSE ON THAT.

WE HAVE A GREAT WORKING RELATIONSHIP WITH WHIP McCOY AND THE REST OF HIS COLLEAGUES ON THE HOUSE LEADERSHIP TEAM, AND I FEEL VERY CONFIDENT THAT WE'RE GOING TO COME UP WITH SOMETHING THAT'S GOING TO BE VERY BENEFICIAL FOR KENTUCKIANS.

>> WILL THAT HAPPEN THIS WEEK?

A BILL?

>> IT WILL HAPPEN IN THE NEXT WEEK BECAUSE WE BASICALLY HAVE TWO DAYS, THURSDAY, FRIDAY, AND THEN WE COME BACK MONDAY, TUESDAY, TWO DAYS THERE.

FOUR DAYS.

WE WANT TO GET EVERYTHING OF SIGNIFICANCE DONE BY TUESDAY BECAUSE -- >> OF NEXT WEEK.

>> OF NEXT WEEK BECAUSE WE -- AFTER THAT WE LOSE OUR ABILITY TO OVERRIDE IN YOU GUBERNATORIAL VETOES THAT HE COULD ISSUE.

SO THE WAY IT WORKS IS ONCE TUESDAY AT MIDNIGHT IS OVER, THE GOVERNOR HAS TEN DAYS TO VETO BILLS, SIGN THEM OR LET THEM BECOME LAW WITHOUT HIS SIGNATURE, AND THEN WE COME BACK AT THE END OF MARCH FOR TWO DAYS TO CONSIDER OVERRIDING ANY VETO.

ANY BILLS WE PASS ON THOSE LAST TWO TWO DAYS HE CAN VETO AND WE CANNOT OVERRIDE.

SO RIGHT NOW WE'RE FOCUSED ON GETTING EVERYTHING DONE, ESPECIALLY THE BUDGET, THE SPENDING BILLS, THE REVENUE BILL DONE BY TUESDAY.

SO I THINK YOU'RE GOING TO SEE SIGNIFICANT MOVEMENT ON THE BUDGET THIS WEEK, BUT I KNOW WE'LL FINISH IT UP BY NEXT TUESDAY.

>> SO WE ALWAYS GET THIS QUESTION, AND YOU KNOW WHERE I'M GOING TO GO AS SOON AS IEST SAY IT.

ROBERT CUMMINGS FROM RUSSELL COUNTY, WITH ALL ADJOINING STATES HAVING MEDICAL MARIJUANA LEGAL, HOW COME KENTUCKY CONTINUES TO LANGUISH?

AND THEY WON'T BRING IT UP FOR AN UP OR DOWN VOTE?

>> WE JUST DON'T HAVE THE SUPPORT FOR IT.

THERE'S NOT A STRONG BELIEF THAT MEDICAL MARIJUANA IS NOT A SLIPPERY SLOPE TO FULL ON RECREATIONAL MARIJUANA AND WE'RE JUST NOT READY TO GO THERE.

>> SO DOES THIS SIDE THINK WHEN IT COMES TO REVENUE THERE'S GOT TO BE SOMETHING THAT IS EXAMINED CLOSELY AND CONSIDERED, MAYBE IT'S NOT MEDICAL MARIJUANA, MAYBE IT'S NOT SPORTS BETTING.

WHAT WOULD IT BE, IN YOUR VIEW, THAT COULD HELP GENERATE THE REVENUE THAT THIS SIDE MAY THINK IS NEEDED?

>> RENEE, LET ME TELL YOU WHERE WE ARE TODAY, AND THERE ARE TWO THINGS I WANT TO SAY ABOUT MEDICAL MARIJUANA.

YOU NOW HAVE 34 STATES AND THE DISTRICT OF COLUMBIA THAT HAVE APPROVED MEDICAL MARIJUANA.

WHAT I WOULD REALLY HATE TO SEE, RENEE, IS THAT KENTUCKY BE THE LAST STATE TO DO THAT.

I MEAN, IT'S HERE.

AND PROBABLY BY THIS TIME NEXT YEAR IT WILL BE IN THE 40s.

OKAY?

WE DON'T HAVE TO BE LAST ON THIS.

WE SHOULD HAVE DONE IT SEVERAL YEARS AGO.

WE NEED TO DO IT NOW.

BUT GOING BACK TO SENATOR THAYER'S COMMENT ABOUT THE BUDGET RESERVE TRUST FUND AND MOST OF THE MONEY GOING THERE, I THINK OUR VIEWERS TONIGHT SHOULD KNOW THIS, RENEE.

WE ALREADY HAVE $500 MILLION IN THE BUDGET RESERVE TRUST FUND.

AND WE'RE ON OUR WAY OUT OF THE PANDEMIC.

IN FACT, AS WE SPEAK TONIGHT, GOVERNOR BESHEAR IS ONE OF THE TOP TEN STAYS IN VACCINATING THE POPULATION.

WE'RE IN THE TOP -- AMONG THE TOP TEN STATES.

SO WE'RE DOING VERY WELL IN TERMS OF GETTING KENTUCKIANS VACCINATED.

TO USE A HORSE RACING ANALOGY, RENEE, WE OUGHT TO BE PREPARED BY SOME TIME THIS YEAR TO BREAK OUT OF THE GATE REAL FAST AND MOVE.

AND SO WE'VE GOT TO DO THAT, RENEE, BY INVESTING.

YOU KNOW, SENATOR THAYER TALKED ABOUT NOT GIVING OUR PUBLIC SECTOR WORKERS A RAISE.

THINK THERE ARE VERY FEW PEOPLE, MAYBE NURSES, MAYBE DOCTORS, BUT TEACHERS HAVE HAD TO WORK EXTRA HARD THIS YEAR, RENEE, DOING NTI AND REALLY REWRITING THEIR LESSON PLANS TO MAKE SURE CHILDREN GET EDUCATED AND TRY TO REACH ALL THESE CHILDREN.

IT'S BEEN A VERY, VERY CHALLENGING YEAR FOR THEM.

THEY DESERVE EXTRA PAY TO BE REWARD FOR THAT, AS DO ALL OTHER CLASSIFIED STAFF, AS DO PUBLIC SECTOR WORKERS IN GENERAL.

I JUST THINK THEY DESERVE A RAISE.

>> REPRESENTATIVE, I WANT TO GET YOUR THOUGHTS ABOUT THE RAINY DAY FUND.

WE OFTEN HEAR IT CALL THE BUDGET RESERVE TRUST FUND.

DO YOU THINK THAT IT NEEDS TO HAVE MORE MONEY IN IT?

THE $500 MILLION, DO YOU THINK THAT'S AN APPROPRIATE LEVEL.

>> I THINK WE NEED TO INVEST IN HUMAN CAPITAL AT THIS PARTICULAR POINT.

PARTICULARLY WE NOW KNOW THAT THE STIMULUS OR THE COVID APPROPRIATIONS FROM CONGRESS WILL BE COMING OUR WAY.

WE NEED TO INVEST THAT MONEY FOR RIGHT NOW BECAUSE MANY PEOPLE HAVE BEEN SUFFERING DURING, OVER THE LAST YEAR, AND SO ONE OF THE THINGS WE NEED TO INVEST IN, AS I SAID EARLIER, IS IN EDUCATION BECAUSE, AS THE SENATOR JUST ALLUDED TO, TEACHERS HAVE BEEN WORKING, NOT ONLY ARE THEY WORKING AT THE TIME THAT THEY'RE SUPPOSED TO BE, BUT THEY'RE ALSO WORKING AFTER THE TIME THAT THEY ARE TO BE IN THE CLASSROOM, WHETHER IT'S BY REMOTE OR WHETHER THEY ARE TALKING WITH STUDENTS AFTER SCHOOL.

I MEAN, DOING AFTER-SCHOOL PROGRAMS.

AND MANY TEACHERS ARE DOING THAT ON THEIR OWN WITHOUT PAY.

AND SO I THINK THE TIME IS NOW FOR US BECAUSE OF THIS PANDEMIC TO INVEST IN THE HUMAN CAPITAL OF THIS COMMONWEALTH BECAUSE IT IS NEEDED, AND THE PEOPLE ARE WANTING IT.

AND SO I BELIEVE THAT WE NEED TO DO THAT.

>> REPRESENTATIVE McCOY, WITH THE $500 MILLION RAINY DAY TRUST FUND, THAT'S A LOT OF MONEY.

WHY DOES IT NEED MORE MONEY?

>> SO, RENEE, IT SOUNDS LIKE A LOT OF MONEY BUT THE REALTY IT'S ABOUT FOUR DAYS OF SPENDING, AND SO, LOOK, THE CONSENSUS FORECASTING GROUP NON-PARTISAN, THEY DO A GREAT JOB, BUT RIGHT NOW WE STILL HAVE -- WE'RE ONLY A 65% EMPLOYMENT BACK.

I THINK WE WERE AT $5.13 BILLION INVESTMENT A FEW YEARS AGO.

WE'RE DOWN TO $1 BILLION IN INVESTMENT.

WE'VE TOPPED DROPPED FOUR RANK INNINGS BEST PLACES TO WORK AND LIVE.

I AGREE WITH THE SENATOR.

I'M READY TO COME OUT OF THE GATE.

BUT THE WAY WE DO THAT IS OPENING THE ECONOMY BACK UP.

THIS ECONOMY, WE WERE SITTING ON ONE OF THE BEST ECONOMIES WE'VE EVER SEEN WHEN THE PANDEMIC HIT, SO IF WE CAN JUST GET BACK THERE, GET THIS THING GOING, GET FOLKS BACK TO WORK, I THINK YOU'LL SEE US BE IN A POSITION, AND I THINK WE NEED TO DO THE RESPONSIBLE THING.

WE HOPE TO HAVE THAT POINT BUT WE DON'T HAVE IT.

SO SPEND INTERESTING RIGHT NOW I DON'T THINK IS THE ANSWER.

>> RIGHT.

AND HOW MUCH, LEADER THAYER, IS KENTUCKY POSSIBLY GOING TO GET FROM THE FEDERAL GOVERNMENT BECAUSE OF THE RELIEF PACKAGE THAT WAS JUST PASSED?

WHAT CAN WE EXPECT?

AND WILL THAT EVEN BE A BYPASS THROUGH THIS STATE OR WILL THAT GO RIGHT TO LOCAL GOVERNMENTS OR OTHER PLACES?

>> I'M NOT REALLY SURE HOW MUCH WE'RE GOING TO GET, THE AMOUNTS COMING OUT OF DEMOCRAT MAJORITIES AND PRESIDENT BIDEN ARE ENORMOUS, AN ENORMOUS AMOUNT OF MONEY PUTTING ON THE BACKS OF OUR FUTURE GRANDKIDS.

I MEAN, WASHINGTON, DC, CAN PRINT ITS OWN MONEY BUT SOMEDAY SOMEBODY'S GOING TO HAVE TO PAY FOR ALL THIS MONEY, AND SOME DAY SOON WE'RE GOING TO HAVE TO LEARN HOW TO LIVE WITHOUT ALL OF THIS FEDERAL STIMULUS, AND THAT'S WHY WE WANT TO PUT MORE MONEY IN THE RAINY DAY FUND BECAUSE WE DON'T KNOW WHAT IT'S GOING TO LOOK LIKE WHEN WE GET CUT OFF FROM THE STIMULUS, AND HOW QUICKLY WE CAN GET BACK TO SUB 4% UNEMPLOYMENT LIKE WE WERE PRE-COVID.

WE HAD THE BEST EMPLOYMENT, LOWEST UNEMPLOYMENT IN 50 YEARS JUST A LITTLE OVER 13 MONTHS AGO.

AND HOPEFULLY WE CAN GET BACK TO THAT, BUT UNTIL WE DO, WE'RE NOT GOING TO REALLY KNOW WHAT OUR REVENUES ARE GOING TO BE LIKE, AND BECAUSE WE'RE A SALES AND INCOME TAX STATE, WE NEED PEOPLE BACK TO WORK EARNING MONEY, PAYING INCOME TAXES AND THEN PURCHASING THINGS AND CONSUMING THINGS AND PAYING THE SALES TAX.

SO WE THINK THIS CONSERVATIVE STEP AND THE APPROPRIATE STEP IS TO APPROACH THIS VERY CAUTIOUSLY, PUT AS MUCH MONEY AS POSSIBLE IN THIS RAINY DAY FUND, MAYBE AS MUCH AS $650 MILLION, MAYBE MORE.

THE GOVERNOR WANTS TO GIVE $250 MILLION TO SMALL BUSINESSES.

WE THINK THE BEST STIMULUS PLAN FOR SMALL BUSINESSES IS TO LET THEM OPEN UP, GET THEM BACK IN BUSINESS.

THAT'S THE BEST STIMULUS PLAN THAT WE NEED TO HAVE.

AND HOPEFULLY WE'RE CLOSE TO THAT.

>> ARE BUSINESSES ASKING FOR THAT TYPE OF FINANCIAL RELIEF?

I MEAN, THE GOVERNOR GOT THE IDEA FROM SOMEWHERE, RIGHT?

IS THIS SOMETHING THAT THE KENTUCKY CHAMBER OF COMMERCE WAS PITCHING, THAT THERE BE SOME RELIEF FOR BUSINESSES TO THE TUNE OF THAT AMOUNT OF MONEY?

>> NO.

WHAT BUSINESSES ARE ASKING FOR IS THE PPP FORGIVENESS BILL THAT THE HOUSE -- >> THE PAYCHECK PROTECTION.

>> PAYCHECK PROTECTION, THAT'S RIGHT.

AND I THINK THAT'S GOING TO PASS THE SENATE.

THEY'RE ASKING FOR THAT SO THEY CAN DEDUCT THE AMOUNT OF LOANS FROM THEIR TAXES.

AND THEY -- THE OTHER THING THEY'RE ASKING FROM GOVERNMENT IS GET OUT OF THE WAY, LET US GET BACK TO BUSINESS.

LET US HIRE OUR PEOPLE BACK.

HET US OPEN UP AND GET PEOPLE BACK TO WORK.

AND THAT'S THE BEST STIMULUS THAT WE CAN HAVE FOR THIS ECONOMY, NOT $250 MILLION IN ONE-TIME MONEYS, AND MANY HEAR ABOUT THE FRAUD THAT TAKES PLACE AND PEOPLE GETTING CHECKS THAT SHOULDN'T BE GETTING CHECKS, AND IT'S JUST A MORE AS OF BUREAUCRACY.

AND THE BEST THING WE DO NOW IS TO GET THE GOVERNMENT OUT OF THE WAY AND GET THIS ECONOMY OPEN AGAIN.

>> AND A UFL PASSED A BILL THAT WOULD DEAL WITH THAT UNEMPLOYMENT INSURANCE FRAUD THAT IS NOW ON THE GOVERNOR'S DESK, SO ALL IN THE HOUSE HAD A BILL, RUSSELL WEBER PRESENTED THAT.

WE'LL GET TO THE HEART OF THAT, THE SECURITY ISSUES AND THE FRAUD ISSUES AND THE OVERPAYMENT OF UNEMPLOYMENT INSURANCE.

>> AND WE ALSO HAD HOUSE BILL 1 THAT HAD -- PAUSED HOW MUCH OUR EMPLOYERS WERE GOING TO HAVE TO SPEND ON UNEMPLOYMENT WHEN THE RATES GO UP, SO A LOT OF THOSE TYPES OF THINGS ARE GOING ON.

>> SO WE KNOW THAT HOUSE BILLS 1, SENATE BILL 1 AND 2, OF COURSE, THE FRANKLIN CIRCUIT COURT JUDGE HAD PUT AN UNJUNCTION ON THOSE BILLS, ON THOSE MEASURES FROM BECOMING LAW.

INJUNCTION.

IS THERE A CONVERSATION WITH THE GOVERNOR RIGHT NOW ON SOME COMPROMISE ON EMERGENCY HOURS?

ARE YOU TALKING WITH THE FIRST FLOOR ABOUT, OKAY, IS THERE SOME MIDDLE GROUND HERE THAT CAN BE REACHED WHEN IT COMES TO THE GOVERNOR'S EMERGENCY POWERS?

>> THERE HAS NOT BEEN NOR IS THERE ANY CONVERSATION GOING ON BETWEEN GOVERNOR ANDY BESHEAR AND THE LEADERS OF THE SUPER MAJORITIES IN THE HOUSE OR THE SENATE THAT I AM AWARE OF.

>> NONE THAT I'M AWARE OF, EITHER.

>> AND I THINK -- >> WITH THE GOVERNOR OR A SURROGATE, NEITHER THE GOVERNOR NOR A SURROGATE.

>> NO.

>> SO I WANT TO ASK THIS SIDE.

WHY IS THAT?

WHY IS THE FIRST FLOOR NOT COMMUNICATING WITH LEGISLATIVE LEADERS WHO ARE THE REPUBLICAN MAJORITY ON COMING TO SOME TERMS OF AGREEMENT ON EMERGENCY POWERS?

>> RENEE, AGAIN, I DON'T KNOW THAT THAT'S NOT HAPPENING.

I WILL SAY THAT FROM WHAT I HAVE SEEN, THE GOVERNOR HAS -- IS REACHING OUT TO THE LEGISLATIVE LEADERSHIP AND IS TRYING TO ENGAGE THEM IN CONVERSATION.

NOW, I CAN'T SPEAK -- I CAN'T SPEAK DIRECTLY IN TERMS OF WHAT THAT CONVERSATION IS, BUT I HAVE SEEN THE GOVERNOR REACH OUT TO LEGISLATIVE LEADERSHIP.

LET ME GO BACK TO A QUESTION THAT YOU ASKED MY DEAR COLLEAGUE SENATOR THAYER.

I ASKED THAT QUESTION EARLIER TODAY AT THE BUDGET CONFERENCE.

>> WHICH QUESTION IS THAT.

>> >> THE QUESTION ABOUT HOW MUCH MONEY KENTUCKY IS GOING TO GET FROM THIS $1.9 TRILLION PACKAGE WHICH WILL PROBABLY BE APPROVED TOMORROW, AND PRESIDENT STIVERS, PRESIDENT OF THE SENATE, SAID THAT HE HAD BEEN IN CONTACT WITH THE CONGRESSIONAL DELEGATION IN WASHINGTON OVER THE WEEKEND, HAD BEEN TOLD THAT KENTUCKY'S ALLOCATION IS GOING TO BE ABOUT $983 MILLION.

THE MONEY THAT'S TO STATE AND LOCAL GOVERNMENTS WHICH IS GOING TO BE ABOUT 600 -- 600 ON YOU $700 BILLION IS GOING TO BE LINE ITEMS.

THEY'RE GOING TO LINE ITEM TO THE COUNTIES, CITIES AND LINE ITEM TO THE STATE.

WHAT HE SAID IS HE'S BEEN TOLD THAT WE'RE GOING TO GET $983 MILLION OF THAT.

THAT'S A LOT OF MONEY, RENEE.

AND AGAIN, WE NEED TO PUT KENTUCKIANS BACK TO WORK.

AND I THINK WHAT GOVERNOR BESHEAR HAS DONE HAS BEEN VERY RESPONSIBLE.

I'VE SAID OVER AND OVER AGAIN THAT WHEN YOU LOOK AT HOW HE'S DONE COMPARED TO THE REST OF THE SOUTHERN STATES, HIS JOB HAS BEEN ADMIRABLE.

WE HAVE THE FOURTH FEWEST CASES, THE THIRD FEWEST DEATHS, AND OUR ECONOMY IS NOT REALLY SUFFERED THAT MUCH.

HE IS OPENING UP THE ECONOMY NOW, BUT DOING IT IN A VERY RESPONSIBLE MANNER, AND, RENEE, THIS MONEY THAT HE'S ALLOCATING FOR SMALL BUSINESSES IS GOING TO HELP THE MAJORITY OF PEOPLE -- RENEE, LET ME TELL YOU A FACT.

THE MAJOR OF PEOPLE WHO WORK FOR A LIVING WOK FOR SMALL BUSINESSES.

THE BIG BOX COMPANIES, THE AMAZONS AND TOYOTAS OF THE WORLD, ONLY HIRE ON AVERAGE 20% OF ALL AMERICANS.

80% OF AMERICANS WORK FOR SMALL BUSINESS.

WE'VE GOT TO PUT MONEY IN SMALL BUSINESS, GETTYANS BACK TO WORK.

REPRESENTATIVE McCOY TALKED ABOUT HOW OUR WORKFORCE NUMBERS ARE STILL BELOW AVERAGE.

LET'S GET THEM BACK TO AVERAGE AND ABOVE, AND WE CAN DO THAT IF WE INVEST IN SMALL BUSINESS.

>> SO IT'S GOTTEN SEVERAL QUESTIONS ABOUT UNEMPLOYMENT INSURANCE, AS FIGURED WE WOULD, AND MAYBE THEY HAVE COME IN AFTER WE TALKED ABOUT IT, BUT WE HAD A QUESTION WHAT'S THE PLAN FOR FIXING THE UI ISSUE?

THIS IS FROM TOM WATSON IN OWENS BOROUGH.

AND THEN A SIMILAR QUESTION, SAME QUESTION, WHAT'S THE PLAN FOR FIXING IT?

SO REPRESENTATIVE McCOY AND LEADER THAYER, IF YOU WANT TO KIND OF GO DOWN WHAT YOU'VE DONE.

>> YEAH,IN' WHY, THE PROBLEM WE'VE GOT FIRST IS WE STILL HAVE 70 TO 100,000 PEOPLE ON UNEMPLOYMENT.

SO WHEN THE SENATOR SAYS OUR ECONOMY HASN'T BEEN SUTTER HURT AS MUCH AS OTHERS, THERE'S A LOT OF FOLKS IN KENTUCKY WHO WOULD PROBABLY DISAGREE WITH THAT, AND THE FRUSTRATING THING, AND I KNOW THEY SEE I HAD AS MUCH AS WE DO, OUR INBOXES ARE JUST FILLED, RENEE, EVERY DAY THIS BREAKS YOUR HEART, PEOPLE THAT CAN'T GET THROUGH, THAT HAVE BEEN -- THEY FILED, THOUGH GOT TWO OR THREE CHECKS, THEN THEY GET DENIED AND THEY HAVE TO REAPPLY.

THERE'S A LOT OF PROBLEMS THERE.

AND THEN ON THE FLIP SIDE WE'VE GOT 700 MILLION BORROWED FROM THE UNEMPLOYMENT TRUST FUND.

WHEN WE STARTED THIS THING IT WAS AT A POSITIVE $600 MILLION TO ZERO TO MINEUS $700,000.

HOW DID DO WE FIX IS THAT?

ONE OF THE QUICKEST IMPACTS YOUR GOING TO SEE TPA YOU'RE A SMALL BUSINESS IMPORTANT WHEN YOUR RATES COME DUE, THERE'S A SCHEDULE A THROUGH E. WE USED TO BE SCHEDULE A.

WE HAD LOW UNEMPLOYMENT.

NOW WE'RE DOWN TO SCHEDULE E. THAT NUMBER IS GOING TO HIT EVERY SMALL BUSINESS IN THIS STATE IF WE DON'T DO SOMETHING.

BUT THE PROBLEM WE'VE GOT IS LET'S SAY WE THREW $400 MILLION AT IT, WE'RE STILL $300 MILLION IN DEBT.

SO IT'S NOT EVEN GOING TO MAKE US -- IT DOESN'T MOVE THE NEEDLE AT ALL.

SO TRYING TO FIGURE OUT THINGS TO DO THERE, YOU KNOW, HOUSE BILL 367, WE PASSED, WHICH IS GOING TO OPEN UP UNEMPLOYMENT OFFICES BACK AROUND THE STATE WHEN THE UNEMPLOYMENT IS AT A CERTAIN LEVEL.

LIKE I SAID, HOUSE BILL 1 HAD SOME RELIEF IN IT.

AND THEN CHAIRMAN RUSSELL WEBER HAS GOT HOUSE BILL 413 WHICH IS LOOKING AT KEEPING THE BASE WAGE THE SAME AND TRYING TO REALLY HELP THE EMPLOYERS AS WE'RE GOING FORWARD.

UNFORTUNATELY, THERE'S NOT A QUICK, EASY ANSWER.

>> AND SO TO GET TO THE ONE BILL THAT WOULD REOPEN THE UNEMPLOYMENT CENTERS ACROSS THE STATE, I THINK THERE WAS 50 SOMETHING, MAYBE THERE WERE GOING TO BE AN ADDITIONAL FEW OTHERS THAT WERE MISSED IN THE ORIGINAL BILL.

THE UNEMPLOYMENT BILL HAD TO BE AT 5% OR ABOVE.

WHEN IT GOT BELOW 5%, THE LABOR CABINET COULD SHUTTER THEM, AND THE LABOR CABINET WOULD HAVE TO FIND THE MONEY TO OPEN THEM.

THERE BEATENS GOING TO BE A SEPARATE LINE ITEM TO REOPEN THOSE CENTERS, CORRECT?

>> CERTAINLY NOT IN THAT BILL BUT WE'RE DEALING WITH -- >> IS THAT WOULD BE IN A SEPARATE -- >> EXACTLY.

>> IS THAT SOMETHING YOU ARE CONSIDERING IN THE BUDGET NEGOTIATIONS, HOW MUCH WOULD IT TAKE TO REOPEN THOSE CENTERS?

>> EXACTLY.

>> WHAT IS THAT NUMBER HAD.

>> IT SHOULD BE DETERMINED SOME TIME IN THE NEXT WEEK.

THAT'S ONE OF THE OUTSTANDING NUMBERS THAT WE STILL HAVEN'T GOTTEN OUR ARMS AROUND.

LOOK LIKE LOOK, WE'RE TRYING TO DO EVERYTHING WE CAN TO HELP FIX THIS UNEMPLOYMENT DISASTER, BUT THEY AT THE END OF THE DAY, UNEMPLOYMENT INSURANCE ASK AN EXECUTIVE BRANCH FUNCTION.

AND WE NEED TO BE HONEST.

GOVERNOR BESHEAR HAS BUNGLED IT.

WE'RE TRYING TO GET HIV SOME TOOLS TO FIXING IT.

BUT AT THE END OF THE DAY HE HAS BROAD AUTHORITY TO SHOW LEADERSHIP AND GET THIS FIXED.

AND IT'S BEEN A PROBLEM NOW FOR OVER A YEAR INJURIES, DON'T THINK HE UNDERSTOOD WHEN HE SHUT DOWN THE ECONOMY WHAT WAS COMING AND OUR SYSTEM WASN'T READY FOR IT.

>> AND HE WOULD SAY, LEADER THAYER, THAT IT'S BECAUSE THE GENERAL ASSEMBLY DIDN'T FUND IT, IT'S BEEN CHRONICALLY UNDERSTANDING 5-UNDER AND WAS SUFFERING THESE DEPICTURES FISHES CYST.

>> AND HE LOVES TO PLAME THEM TO MATT BEVIN, AND THAT'S FINE.

YOU CAN BLAME THINGS ON MATT BEVIN.

PEOPLE DON'T LIKE IT WHEN PEOPLE THEIR LEADERS TRY TO BLAME THING AT THEIR PRED SOARS.

NUMBER TWO, WE WERE AT AN UNPRECEDENTED LOW UNEMPLOYMENT NUMBER.

OF COURSE THERE WERE OFFICES SHUT DOWN.

NO ONE COULD HAVE PREDICTED A ONCE IN EVERY 100 YEAR PANDEMIC AND WE'RE TRYING TO PASS THIS BILL AND WORKING TO GET SOME OF THESE OFFICES BACK OPEN.

THE MONEY COMES FROM SOMEWHERE.

IT COMMENTS FROM ASSESSMENTS ON BUSINESSES, AND WE WANT TO AMELIORATE THE EFFECT OF THESE ASSESSMENTS GOING UP ON BUSINESSES, LIKE REPRESENTATIVE McCOY TALKED ABOUT, BUT HE'S GOT ON TO SHOW LEADERSHIP.

THE GOVERNOR HAS TO SHOW LEADERSHIP ON THIS.

AND, YOU KNOW, RIGHT NOW BESIDES PEOPLE WANTING TO GET THEIR UNEMPLOYMENT CHECKS, THERE ARE FOUR THINGS THAT KENTUCKIANS WANT THE MOST.

THEY WANT TO GET THE MASKS OFF THEIR FACE.

THEY WANT TO GET A NEEDLE IN THEIR ARM WITH THE VACCINE.

THEY WANT TO GET THEIR KIDS BACK TO SCHOOL.

AND THEY WANT TO GET OUR BUSINESSES OPEN.

AND THE QUICKER WE CAN DO THAT, THE QUICKER WE'LL GET BACK ON TRACK AND QUET GET THIS ECONOMY ROARING AGAIN.

>> WHEN YOU TALKED ABOUT NUMBER ONE, IS THERE GOING TO BE A BILL THAT WE HAVE YET TO SEE THAT IS GOING TO SAY NO MASK MANDATE?

>> I DIDN'T SAY THAT.

>> IS THAT ONE OF THE THINGS YOU'RE GOING TO EVER DELIVER BECAUSE THE PEOPLE SAY THEY WANT IT?

>> TO BE DETERMINED.

I'M NOT GOING TO NOTICE THAT TONIGHT.

>> OKAY.

ALL RIGHT.

I WANT TO GO TO THIS SIDE.

REPRESENTATIVE GRAHAM, TO JUST TALK ABOUT HOW THE GOVERNOR, ACCORDING TO CRITICS, HAS BUNGLED THE UNEMPLOYMENT INSURANCE.

WE KNOW THE AUDIT 400,000 UNANSWERED OR UNREAD EMAILS.

NOT A GOOD LOOK.

SO WHAT'S YOUR RESPONSE OR DEFENSE OF THE GOVERNOR AND THE ADMINISTRATION?

>> WELL, YOU KNOW, IT'S -- IT'S SOMEWHAT DIFFICULT TO HEAR MY COLLEAGUES ON THE OTHER SIDE TALK ABOUT WHAT OUR GOVERNOR, CURRENT GOVERNOR HAS NOT DONE.

PART OF THE REASON THAT HE WAS NOT ABLE TO DO IT BECAUSE HE INHERITED A MESS, AND NOT ONLY IS IT ABOUT THE REGIONAL CENTERS, IT'S ALSO ABOUT THE TECHNOLOGY.

THE TECHNOLOGY NEEDS TO BE UPGRADED.

WE KNOW THAT.

AND THE PREVIOUS GOVERNOR UNDERSTOOD THAT AND KNEW IT BUT DID NOT TAKE ACTION ON IT.

AND SO ALL OF THOSE COMBINED HAVE PUT US WHERE WE ARE.

AND I CAN TELL YOU, HAVING OVER THE LAST THREE MONTHS IN MY OFFICE, WE HAVE WORKED WITH PEOPLE FROM ALL ACROSS KENTUCKY.

IT'S NOT JUST MY CONSTITUENTS THAT I HAVE TRIED TO HELP, BUT PEOPLE ARE HURTING.

PEOPLE ARE ALONG THEIR HOMES.

THEY'RE LOSING THEIR CARS.

THEY'RE BEHIND IN UTILITIES.

I'VE HAD TO TRY TO ASSIST NOT ON MY CONSTITUENTS BUT OTHERS ACROSS KENTUCKY AS TO WHO TO TALK TO IN ORDER TO GET THE THEIR UTILITIES KEPT ON, AND OBVIOUSLY THE GOVERNOR AND THE CONGRESS HAVE MADE WAYS IN WHICH THAT HAS HAPPENED, BUT PEEL WANT TO BE RESPONSIBLE FOR -- PEOPLE WANT TO BE RESPONSIBLE FOR THEIR OWN WAY OF LIFE.

THEY REALLY DON'T WANT GOVERNMENT.

BUT GOVERNMENT IS RIGHT NOW AN IMPORTANT FACTOR TO THEM IN TERMS OF RECEIVING ASSISTANCE.

AND SO ALL OF THESE THINGS WE NEED TO WORK TOGETHER TO TRY TO FIND MECHANISMS BY WHICH WE CAN HELP THE PEOPLE ACROSS THIS COMMONWEALTH.

IN ADDITION TO THAT, THE SENATE PRESIDENT TODAY WAS JUST TALKING ABOUT WHAT HAS HAPPENED IN EASTERN KENTUCKY WITH THE FLOODING AND HOW IT HAS HAD AN IMPACT, TREMENDOUS IMPACT ON EASTERN KENTUCKY.

SO WE'VE GOT PEOPLE WHO ARE SUFFERING FROM UNEMPLOYMENT NOW BUT ALSO SUFFERING FROM THE FLOODING WHICH HAPPENED LAST WEEK.

AND SO PEOPLE WANT US HERE IN FRANKFORT AND IN WASHINGTON TO COME TOGETHER TO WORK TOGETHER, TO SOLVE THE PROBLEMS THAT THEY HAVE ASKED US TO SOLVE, AND WE ARE RESPONSIBLE TO GETTING IT DONE.

AND PART OF THAT WAY OF SOLVING PROBLEMS IS WORKING TOGETHER AND COMPROMISING.

>> IS THERE ANYTHING, TO THIS SIDE, IS THERE ANYTHING WITH WHICH YOU AGREE WITH THE GOVERNOR ON FROM HIS BUDGET RECOMMENDATION?

CAN YOU NAME ONE THING?

OKAY, WE'RE FOR THAT.

>> I'M SURE THERE'S SOME THINGS IN THERE THAT WE AGREED TO BUT THERE ARE A LOT OF DETAILS, I CAN'T QUITE REMEMBER THEM.

>> BUT EVEN JUST IN GENERAL PRINCIPLE MAYBE.

NOTHING COMES TO MIND?

>> NO, HE WANTS TO SPEND TAXPAYER DOLLARS, ONE-TIME TAXPAYER DOLLARS TO GET OUT OF THIS PANDEMIC.

WE WANT TO BE CONSERVATIVE WITH TAXPAYER DOLLARS, AND WE WANT TO GET THE ECONOMY OPENED BACK UP AND GET THE KNOW ROARING AGAIN.

LOOK, I LOVE THESE GUYS.

I'VE BEEN WORKING WITH REPRESENTATIVE GRAHAM FOR A LONG TIME.

SENATOR THOMAS AND I ARE DEAR FRIENDS.

YOU KNOW, ANY TIME HE STARTS OUT A SENTENCE WITH A HORSE RACING AXIOM, I'M -- HE'S GOING TO GET MY ATTENTION P. AND THIS IS A FACT.

I'M NOT THROWING OUT PEJORATIVE.

THIS IS THE DIFFERENCE BETWEEN REPUBLICANS AND DEMOCRATS.

THEY WANT TO SPEND.

WE WANT TO BE MORE CONSERVATIVE WE WANT TO GET THE ECONOMY OPEN.

THEY WANT TO THROW MONEY AT THE PROBLEM.

THAT'S OKAY.

THAT'S THE DIFFERENCE BETWEEN THE TWO PARTIES HERE IN AMERICA.

AND -- BUT WE HAVE SUPER MAJORITIES IN HOUSE AND THE SENATE.

WE HAVE A BILL THAT WOULD OVERRIDE THE GOVERNOR WHICH WE HAVE DONE AND HAVE DONE AND WILL CONTINUE TO DO, AND OUR APPROACH IS GOING TO WIN THE DAY BECAUSE WE'VE GOT TO VOTES TO DO IT, AND ELECTIONS HAVE CONSEQUENCES.

>> I WAS WAITING FOR THAT.

WHEN ASK HE GOING TO GET THAT IN?

IT'S HIS FAVORITE LINE.

[LAUGHTER] >> YOU ARE WATCHING "KENTUCKY TONIGHT" AND WE ARE FROM A COMMITTEE ROOM HERE IN THE STATE CAPITOL ANNEX BECAUSE THE GENTLEMEN HAVE BEEN SO BUSY WORKING ON THE BUDGET AND OTHER ISSUES WHICH I HOPE WE'LL GET TO IN JUST A MOMENT.

SO THANK YOU FOR THE PRIVILEGE OF YOUR TIME THIS EVENING.

I WANT TO MOVE ON TO A COUPLE THINGS WE HAVEN'T TALKED SO MUCH ABOUT.

GAS TAX AND SCHOOL CHOICE, WHETHER THAT'S IN THE FORM OF EDUCATIONAL OPPORTUNITY ACCOUNTS OR -- I'M NOT QUITE SURE OF THE LANGUAGE.

I KNOW THERE ARE A COUPLE OF OPTIONS OUT THERE.

SO LET'S START START GAS TAX BECAUSE I HAVEN'T DONE A PROGRAM ON THIS IN OVER A YEAR.

IS THERE A SENTIMENT ON RAISING THE GAS TSSAA IN SAL SAL TORO, YOUR COLLEAGUE FROM NORTHERN KENTUCKY, MR. McCOY HAS A PROPOSAL TO RAISE IT ANOTHER 10 CENTS.

>> YES.

>> AND THEN DO SOME OTHER THINGS BECAUSE CARS ARE MORE EFFICIENT, FUEL EFFICIENT, AND WE'VE BEEN AT THAT FLOOR OF 26 CENTS SINCE 2015 AND NOW IS THE TIME TO RAISE IT?

AND WHY?

>> RENEE, THE QUESTION ULTIMATELY IS NOT IS THERE GOING TO BE A GAS TAX INCREASE.

LET'S LOOK AT INFRASTRUCTURE AND ACKNOWLEDGE THE FACT THAT THE SOME POINT WE HAVE TO DO SOMETHING.

NOW, WHAT IS IT WE'RE GOING TO DO?

YOU LOOK AT EVERY MAJOR AUTO MANUFACTURER WE'VE GOT GM ANNOUNCED I THINK THEY'RE GOING TO BE THERE BY 2030.

OTHER COMPANIES HAVE SAID 2035.

WE ARE QUICKLY GETTING TO WHERE GAS IS NOT GOING TO BE THE APPROPRIATE WAY TO PAY FOR OUR INFRASTRUCTURE.

AND I WAS FORTUNATE ENOUGH IN MY FIRST TERM -- >> EVERYONE AGREES OVER HERE.

>> THERE'S ALWAYS AGREEMENT.

KENTUCKY'S UNIQUELY SITUATED WITH WHERE WE SIT IN THE MIDDLE THIS HAVE COUNTRY, AND WE HAVE A RIVER, WE HAVE INTERSTATES, WE'VE GOT RAIL AND WE'VE GOT MASSIVE AIRPLANES PARENTS.

WHEN PARENTS.

>> GAS TAX FOCUSES YOU ON CARS AND ROADS, BUT LET'S FOCUS ON CARS AND ROADS A MINUTE.

BECAUSE WE ARE CENTRALLY SITUATED WE HAVE SO MANY CARS AND VEHICLES ON OUR INTERSTATE THAT ARE CAUSING TAXING ON OUR ROADS THAT WE ARE NOT.

THE GAS TAX IS BRINGING IN $200 MILLION LESS THAN IT DID JUST A FEW YEARS AGO.

>> AND WITH ALL THE ICE, THE POTHOLES FROM THE ICE STORMS, WE NEED SOME HELP HERE.

>> SO WE'VE GOT TO FIGURE OUT SOMETHING HELP.

HAVE THAT'S THE REALIS.

>> SO WHERE IS THAT BILL?

>> THAT IS SOMETHING THAT IS GOING TO BE DISCUSSED, IS BEING DISCUSSED.

OBVIOUSLY SAL'S GOT HIS BILL.

THERE'S SOME OTHER BILLS IN THE HOUSE AS WELL THAT ARE LOOKING AT OTHER ISSUES, ESPECIALLY SOME OF THE FEES THAT HAVEN'T BEEN CHANGED SINCE THE MID-70s AS WELL AS THE ELECTRONIC ASPECT.

AND NOW IS THE TIME TO GET TO THE ELECTRONIC BANDWAGON, SO TO SPEAK BECAUSE IT'S STILL RELATIVELY NEW BUT IT'S GOING TO BE AN EVER INCREASING PAR.

>> HIS 561 SEEMS TO BE FAIRLY COMPREHENSIVE HIS RED IT RIGHT, BOOST TAXES ON TRACTOR-TRAILERS AND OTHER HEAVY VEHICLES, CREATE NEW FEES FOR ELECTRIC CAR OWNERS, DOUBLING THE COST OF REGISTERED CARS AND TRUCKS EACH YEAR, ANNUAL MOSTLY CLOUDY RENEWAL COULD GO WOULD YOU PLEASE 9 DOLLARS TO $15.

THERE ARE SOME THINGS THERE I THINK SIMILARLY IT WOULD CREATE AN ADDITIONAL $387.

KNOWN IF THAT'S THE NEW FISCAL NOTE BUT THAT WAS THE NOTE FROM LAST TIME.

YOU'RE SAYING MAYBE SOME OF THOSE THINGS ARE GOING TO BE CARVED OUT INTO INDIVIDUAL BILLS?

>> IT'S ALL PART OF THE PROCESS.

>> RIGHT.

>> I CAN'T -- I DON'T THINK ANY DECISIONS HAVE BEEN MADE.

WE'RE LOOKING AT EVERYTHING.

WE'RE GETTING INPUT FROM EVERYBODY.

BUT I THINK YOU SEE THE WORLD OF WHAT THE POTENTIALS ARE.

>> OKAY.

SO HOW DOES THE SENATE FEEL ABOUT THE WORLD OF POTENTIAL WHEN IT COMES TOG HAS?

I I DON'T WANT TO USE THE WORD GAS TAX BUT INFRASTRUCTURE FUNDING.

>> I'M GLAD YOU ASKED.

I THINK NOW IS THE WRONG TIME TO PRAISE THE GAS TAX ON TRADITIONAL FOSSIL FUEL VEHICLES.

THE GAS PRICES HAVE GONE UP ALMOST $1 A GALLON SINCE JOE BIDEN WAS ELECTED PRESIDENT AND HE SHUT DOWN THE KEYSTONE PIPELINE AND OTHER FORMS OF OIL EXPLORATION THAT WERE MAKING US 100% RELIANT ON OUR OWN SOURCES OF OIL.

GAS IS GOING UP.

THERE'S NO END IN SIGHT.

AND I DON'T THINK IN THE MIDDLE OF THE PANDEMIC WITH A LOT OF PEOPLE UNEMPLOYED, A LOT OF UNEMPLOYMENT AND JOB SECURITY ANXIETY OUTS THERE, I DON'T THINK IT'S THE RIGHT TIME TO HIT PEOPLE WITH AN INCREASE ON THEIR FOSSIL FUEL-DRIVEN POWERED CARS.

I DO THINK IT'S TIME TO START GETTING AN ANNUAL FEE FROM ALTERNATIVE FUEL VEHICLES.

THEY'RE NOT PAYING AS MUCH TO USE OUR ROADS AND THEY'RE DRIVING THE MILES ON THEM JUST LIKE THOSE OF US WHO DRIVE TRADITIONAL FOSSIL FUEL VEHICLES, AND I THINK THE FEES THAT WERE MENTIONED NEED TO BE UPDATED.

I WANT TO MAKE SURE THAT WE DON'T -- YOU KNOW, WE WANT TO RAISE FEES ON TRUCKERS.

OKAY.

THOSE FEES HAVE BEEN THE SAME FOR A LONG TIME BUT LET'S REMEMBER THAT TRUCKERS ARE THE BACKBONE OF OUR ECONOMY.

WE DON'T WANT TO INCREASE THE FEES ON THEM SO MUCH BECAUSE THEY WILL ULTIMATELY BE PASSED ON TO THE CONSUMER SLEETS BE RESPONSIBLE, LET'S LOOK AT PERHAPS A REASONABLE INCREASE IN SOME OF THESE FEES AND MAYBE INDEXING THEM TO THE CONSTRUCTION INDEX.

I THINK THOSE WE'RE WILLING TO LOOK AT IF WE CAN DO THAT, THAT WILL CREATE SOME MORE MONEY IN THE ROAD FUND.

LOOK, I GET THE NEED FOR INFRASTRUCTURE.

TOTALLY GET IT.

BUT I JUST DO NOT THINK THAT'S THE RIGHT MESSAGE.

BY THE WAY, JOE BIDEN IS LOOKING AT RAISING THE FEDERAL GAS TAX BY A HUGE NUMBER ON TOP OF WHAT WE'RE SEEING ON THE INCREASE IN GAS PRICES, AND ON BEHALF OF THE WORKING PEOPLE OF KENTUCKY, I JUST CAN'T BE FOR IT RIGHT NOW.

>> SO THE DEMOCRATS SAY THE THEY'RE THE PARTY OF WORKING PEOPLE.

HOW DO YOU FEEL ABOUT A GAS TAX OR INFRASTRUCTURE FUNDING THAT IT COULD PROVE TO BE BURDENSOME ON THOSE WHO CAN LEAST AFFORD IT?

>> RENEE, LET ME BEGIN BY SAYING THIS.

A LEADER HAS TO HAVE FORESIGHT.

YOU HAVE TO SEE WHERE THINGS ARE GOING AND BE AHEAD OF THE CURVE.

AND ON THIS ISSUE I MUST SAY I AGREE WHOLEHEARTEDLY WITH REPRESENTATIVE McCOY.

WE'RE MOVING TO A SOCIETY THAT'S GOING TO BE MORE DEPENDENT UPON ALTERNATIVE VEHICLES, ELECTRIC -- ELECTRICITY-POWERED VEHICLES.

LET ME PUT IT THAT WAY.

RENEE, WE'VE GOT TO DEVELOP THE INFRASTRUCTURE TO HAVE ELECTRIC STATIONS ALONG THE WAY.

WE'VE GOT TO HAVE THE ABILITY TO TAX THOSE ELECTRICAL VACS WE'RE COMING.

AND REALLY IF YOU LISTEN TO PRESIDENT SIEVERS THE HE SAYS IT.

I'MPRESIDENT STIVERS.

ELECTRIC VEHICLES ARE COMING.

SO TO SAY THAT WE SHOULD TAX TRUCKERS, I THINK, RENEE, THEY'VE GOT TO BE TAXED.

I DRIVE A LOT ON THE HIGHWAY AND I SEE THOSE TRUCKERS, AND RAISING THEIR TAX SLIGHTLY NOT GOING IMPACT THE AMOUNT OF COMMERCE THAT'S TRANSPORTED ACROSS STATE LINES.

WE'VE GOT, AS I SAID BEFORE, IS TO TO START TAXING ELECTRIC VEHICLES SOMEHOW, SOME WAY.

WE'VE GOT TO PUT ELECTRIC STATIONS MORE IN HIGHWAYS.

WE'VE GOT GET READY FOR THIS BECAUSE, RENEE, WE'RE GOING TO BE -- EACH YEAR WE'RE GOING TO BE LESS AND LESS DEPENDENT ON GASOLINE POWERED VEHICLES.

IF WE DON'T GET AHEAD OF NOW, YOU TALK ABOUT OUR ROADS HAVING POTHOLES NOW, THEY'RE GOING TO BE IN REALLY POOR SAPE IN THE NEXT -- FOR THE REMAINDER OF THIS DECADE IF WE DON'T START PREPARING FOR THE USE OF ELECTRICITY POWERED VEHICLES.

>> REPRESENTATIVE GRAHAM, DO YOU HAVE ANYTHING TO THE ADD?

>> I DO THINK THE ONE THING THAT REPRESENTATIVE McCOY TALKED ABOUT WAS THE INFRASTRUCTURE, AND WE KNOW, AS REPRESENTATIVE McCOY TALKED ABOUT, KENTUCKY BEING IN THE CENTER OF ECONOMIC IN TERMS OF WHAT COMES THROUGH THE STATE AND WHERE WE ARE.

WE ARE POSITIONED IN A VERY GOOD POSITION.

AND SO I DO THINK THAT WE NEED TO LOOK AT PREPARING OURSELVES SO WHEN WE GET OUT OF THIS PANDEMIC THAT WE HAVE THE FUNDS THAT WILL HELP US MAINTAIN OUR ROADS AND THE INFRASTRUCTURE THAT WE ARE TALKING ABOUT THAT ARE KEY TO OPENING UP THE ECONOMY AND HAVING THE ECONOMY TO BE STRONG AND PROFICIENT IN TERMS OF WHAT WE ARE ABLE TO DO IN TERMS OF THE ECONOMY GROWING.

ACROSS THE STATE AND AS WELL AS THE COUNTRY.

>> SO I'M GOING TO MAKE A PRETTY GOOD SIZE PIVOT TO TALK ABOUT SCHOOL CHOICE AND JUST KIND OF RIGHT ON CUE WHEN I MENTION THAT.

THIS QUESTION FROM NIEMANN BREWER FROM LEXINGTON, MAY SOUND LIKE A NUMBER NAME, FOR REPRESENTATIVE McCOY, SHE SAYS, WHAT IS EDCHOICE KENTUCKY SAYING ABOUT HOUSE BILL 563 NOW THAT PRIVATE SCHOOLS HAVE BEEN REMOVED FROM RECEIVING.

OE HAVEA?

FIRST OF ALL, WE'VE GOT TO SET PEOPLE UP WHO ARE NOT FOLLOWING THIS DISCUSSION AND KNOW NOSE PREV I. ABBREVIATIONS AS WELL AS SOME OF THE REST OF US.

THERE ARE TWO BILLS, WITH US HOW BILL 149 AND HOUSE BILL 563 COMMITTEE SUB STOUT THAT MAY OR MAY INTO THE BE AVAILABLE FOR PUBLIC VIEWING.

I WANT YOU TO TELL US ABOUT THE DIFFERENCE BETWEEN THOSE TWO BILLS.

ONE IS SCHOOL CHOICE.

ONE IS EDUCATIONAL OPPORTUNITY ACCOUNTS.

WHAT IS AN EDUCATIONAL OPPORTUNITY ACCOUNT?

>> SURE.

SO BOTH BILLS HAVE BEEN OUT FOR A WHILE, AND ACTUALLY HOUSE BILL 563 WAS ORIGINALLY A SENATE BILL, AND WHAT 563 SAYS VERY SIMPLY, SCHOOL DISTRICTS, YOU SHALL HAVE A POLICY THAT TALKS ABOUT HOW YOU CAN ACCEPT NON-RESIDENT STUDENTS.

WHEN I SAY NON-RESIDENT, SOMEONE NOT IN YOUR DISTRICT.

THEN IT GOES ON TO SAY, AND IF YOU DO THAT, THEN YOU GET TO COUNT THAT STUDENT IN YOUR ADA, WHICH IS THE AVERAGE DAILY ATTENDANCE.

IN OTHER WORDS, THE STATE PORTION OF THE SEEK MONEY WILL FOLLOW THE STUDENT.

SO I REFER TO THAT AS THE SCHOOL WITHOUT BORDERS BILL.

SO THAT'S GOING TO OPEN UP PUBLIC SCHOOLS IN KENTUCKY TO ALLOW PARENTS TO HAVE CHOICE.

RENEE, ONE THING COVID HAS TAUGHT US, PARENTS ARE DESPERATE FOR SOME SORT OF CHOICE IN THEIR EDUCATION.

WHICH IS WHERE YOU GET TO THE OTHER BILL.

HOUSE BILL 149.

AND THIS IS SOMETHING THAT LEADER CARNE, ALABAMA I THINK WAS BEFORE BAM.

YOU GUYS HAVE BEEN AROUND A LOT LONGER I HAVE AND I DON'T MEAN THAT IN A BAD WAY, THIS WAS EVEN A TESTIMONIED WHY AT ONE POINT.

HOUSE BILL 249 DOES TWO THINGS.

ONE SPART IT SETS UP A TAX CREDIT.

A BUSINESS AND INDIVIDUAL CAN MAKE A DONATION FOR A 501(C)(3) SCHOLARSHIP GRANTING AUTHORITY.

THEN WE HAVE PEOPLE THAT ARE GOING TO APPLY FOR THIS MONEY.

AND THE WAY IT'S SET UP IS ACTUALLY WHAT WE'RE TRYING TO GET TO IS THE POOR AND THE WORKING POOR.

FOLKS THAT DON'T HAVE OPPORTUNITY LIKE SOME OTHER FOLKS DO TO MAYBE PUT YOUR CHILD IN A PRIVATE SCHOOL, HIRE A TUTOR, GET A COMMUTER, TAKE AN -- COMPUTER, TAKE AN ONLINE CLASS.

WHEN IT STARTED, THAT'S THE WAY IT WAS SET UP BUT CANDIDLY, AND LAST YEAR I MET WITH SUPERINTENDENTS AND OTHER GROUPS.

WE MADE A LOT OF CHANGES.

THIS YEAR THE ONE ISSUE I KEPT HEARING IS THIS IS JUST ABOUT PRIVATE SCHOOLS.

RENEE, THIS HAS NOTHING TO DO WITH PRIVATE SCHOOLS.

THIS IS ABOUT EDUCATING CHILDREN IN KENTUCKY AND GIVING PARENTS A CHOICE.

SO I PULLED PRIVATE SCHOOLS OUT.

SO THE COMMITTEE SUB TO HOUSE BILL 563 IS PUBLICALLY AVAILABLE.

IT'S BOTH OF THOSE BILLS COMBINED.

SO NOW PARENTS HAVE AN OPPORTUNITY TO GO AND GET MONEY, IF THERE'S A COST WITH SWITCHING TO DIFFERENTIATE PUBLIC SCHOOL WHICH INTERLOCAL AGREEMENTS HAPPENS ALL THE TIME IF YOU'RE GOING TO SWITCH BETWEEN A COUNTY SCHOOL AND AN INDEPENDENT SCHOOL, NOW YOU'VE GOT MONEY FOR THAT.

LIKE I GREW UP IN EASTERN KENTUCKY.

WE DIDN'T HAVE HIGH LEVEL CALCULUS AT MY HIGH SCHOOL.

I COULD HAVE TAKEN AN ONLINE CLASS WITH THIS MONEY.

THERE'S $25 MILLION POTENTIALLY AVAILABLE TO HELP PARENTS AND THEIR CHILDREN.

>> OKAY.

I WANT TO GET THE RESPONSE FROM REPRESENTATIVE GRAHAM BECAUSE HE IS AN EDUCATOR, HAS BEEN A LONGTIME EDUCATOR, AND I KNOW THAT THESE IDEAS HAVE NOT SETTLED WELL WITH YOU.

HOW DO YOU TAKE THIS KIND OF HYBRID APPROACH THAT'S BEING PRESENTED?

WELL, I'M GLAD TO HEAR SOME OF WHAT REPRESENTATIVE McCOY HAS TALKED ABOUT, BUT LET ME JUST, AS A HISTORY TEACHER, RENEE, LET ME JUST SAY THIS, AND I'VE SAID THIS A LOT, WHEN THIS COUNTRY WAS BUILT AND WE BEGAN TO EXPAND WESTWARD FROM THE EAST COAST TO THE MISSISSIPPI RIVER, THE ONE THING THAT THE FOUNDING FATHERS WANTED WAS, AS THE LAND ORDINANCES, THE NORTHWEST LAND ORDINANCES, THEY WANTED TO ESTABLISH EDUCATION IN THOSE AREAS WHICH WERE BEING DEVELOPED, AND SO AN AREA WAS SET ASIDE FOR PUBLIC EDUCATION.

THE REASON WHY PUBLIC EDUCATION WAS THE KEY, AS FAR AS THOSE WHO HAD PASSED THESE LAWS, WAS THAT EDUCATION PROVIDES A EDUCATED WORKFORCE.

AND NOT ONLY ARE THEY EDUCATED IN TERMS OF THE WORKFORCE BUT ALSO BE EDUCATED ABOUT DEMOCRACY AND MAINTAINING DEMOCRACY, UNDERSTANDING HOW DEMOCRACY WORKS.

AND SO PUBLIC EDUCATION HAS ALWAYS BEEN THE FEED IN TERMS OF KEEPING US A DEMOCRATIC COUNTRY BUT ALSO THE OPPORTUNITY FOR PEOPLE TO MOVE IF YOU WERE WORKING POOR TO ACHIEVE SUCCESS.

I HAVE NOT SEEN THE BILL THAT YOU HAVEY SINCE TALKED ABOUT IN TERMS OF GOING DETAILED WITH IT, BUT I'M VERY, VERY UNCOMFORTABLE UNCOMFORTABLE WITH PUBLIC EDUCATION.

I BELIEVE IT'S A THREAT TO PUBLIC EDUCATION.

>> EVEN THOUGH PRIVATE SCHOOLS HAVE BEEN TAKEN OUT OF THE BILL.

>> EVEN THOUGH PRIVATE SCHOOLS HAVE BEEN TAKEN OUT, BUT HERE'S THE OTHER PROBLEM THAT WE HAVE.

IN MY COUNTY, FRANKLIN COUNTY, WE HAVE TWO SCHOOL DISTRICTS PFM WE HAVE THE INDEPENDENT DISTRICT AND WE HAVE THE FRANKLIN COUNTY PUBLIC SCHOOLS.

IF THAT CHOICE COMES ABOUT, IT COULD BE A POSSIBILITY TO ALL THOSE INDEPENDENT SCHOOLS THAT ARE SERVING ACROSS I. KENTUCKY DO LOSE THEIR STUDENT POPULATION AND OVERCROWDING IN THOSE COUNTY SCHOOLS.

NOW, I KNOW THAT THE COUNTY SCHOOLS WOULD PROBABLY NOT TAKE AS MANY STUDENTS, BUT WE RUN THE RISK OF THOSE INDEPENDENT SCHOOL DISTRICTS SUFFERING FROM RECRUITMENT, AND THAT GOES -- AND I KNOW AS A FORMER ATHLETIC COACH THAT A LOT OF RECRUITMENT, RECRUITING WOULD BE TAKING PLACE OF PULLING THOSE STUDENTS OUT OF ONE SCHOOL AND BRINGING THEM TO ANOTHER.

AND SO YOU'VE GOT -- THERE'S OTHER CONSEQUENCES IN TERMS OF US PASSING THIS PARTICULAR PIECE OF LEGISLATION THAT REPRESENTATIVE McCOY HAS TALKED ABOUT.

>> WHAT'S THE FINANCIAL THRESHOLD AS FAR AS THE HOUSEHOLD INCOME THAT WOULD QUALIFY SOMEONE TO DO THIS?

>> 170% OF THE FREE AND REDUCED LUNCH POVERTY LEVEL.

>> SO THAT IS HOW MUCH FOR A FAMILY OF FOUR ROUGHLY?

>> 130%.

>> 130 ON TUITION BUT 170 FOR SOME OF THE ANCILLARY SERVICES.

RENEE, I DON'T KNOW OFF THE TOP OF HIGH MY HEAD.

I HEAR THE NUMBER OF YIKE 89,000 FORWARDS A FAMILY.

LET ME ADDRESS ONE THING REPRESENTATIVE GRAHAM BROUGHT UP SO YOU KNOW THIS, SIR.

THAT CONCERN WAS RAISED TO ME, AND I'M SERIOUS ABOUT EDUCATION, SO I HAVE PUT IN THIS BILL.

WITH YOU IF YOU SWITCH, YOU CAN'T PLAY SPORTS FOR A YEAR, PERIOD.

THIS IS NOT ABOUT -- THIS IS NOT ABOUT -- RECRUITING BASKETBALL PLAYERS OR TRYING TO GET A TEAM TOGETHER.

THIS IS ABOUT GIVING PEOPLE WHO DON'T HAVE THE MEANS, THE ABILITY TO EDUCATE THEIR CHILDREN, PERIOD.

>> DOES THAT SATISFY YOU A LITTLE BIT, SIR?

>> AS I SAID, I'D STILL TO HAVE SEE THE BILL, THE CHANGES THAT YOU HAVE MID MADE BEFORE I MAKE A COMMITMENT TOWARDS THAT, BUT MY CONCERNS ARE WHEN YOU START -- AND I DON'T KNOW, HAS THE KENTUCKY SUPERINTENDENTS ASSOCIATION AND THE OTHER EDUCATION ORGANIZATIONS, HAVE THEY SEEN YOUR BILL AND HAVE THEY TALKED TO YOU ABOUT HOW THAT BILL PARTICULARLY IF THEY ARE SUPPORTIVE OF IT?

>> I DON'T KNOW IF THEY'VE SIGN IT OR NOT.

IT WAS RELEASED PUBLIC OH FRIDAY.

THE COMBINED BILL WITH THE CHANGE TAKING PRIVATE SCHOOLS OUT.

I'VE GOTTEN A FEW eMAILS, AND YOU KNOW HOW THIS WORLD IS, I'VE GOT SOME SUPERINTENDENTS THAT ARE SUPPORTING IT AND SOME THAT AREN'T, BUT I STILL SHI CANDIDLY THERE'S A LOT OF MISINFORMATION, A LOT OF FOX ARE STILL RESPOND 149 AS WRITTEN AND NOT THE 563 COMMITTEE SUB THAT TAKES THE PUBLIC SCHOOLS OUT.

>> SO THERE WILL BE AN EDUCATION HEARING.

I DON'T REMEMBER THE DATE.

>> ANR IS GOING TO MEET ON THURSDAY.

THESE BILLS ARE IN A&R.

>> SO THEY'RE IN A&R AND NOT THE EDUCATION.

SO, OF COURSE, WE WILL BE COVERING THAT AND CARRYING THAT DISCUSSION IN FULL.

ANYTHING ELSE ON THE SCHOOL CHOICE?

WE'VE GOT HOW MANY MINUTES LEFT THERE, FOUR MINUTES OR SO?

MY GOODNESS, TIME FLIES WHEN YOU'RE HAVING FUN, DOESN'T IT, LEADER THAYER?

>> BY THE WAY, I WOULD SUPPORT ALL SCHOOL CHOICE OPTIONS EVEN GOING FURTHER THAN WHAT REPRESENTATIVE McCOY WOULD DO.

>> AND BECAUSE YOU CAN, HOW MUCH FURTHER WOULD YOU GO, SIR?

>> I SUPPORTED THE ORIGINAL BILL THAT WOULD ALLOW LOW-INCOME WORKING FAMILIES THE ABILITY TO GET A SCHOLARSHIP TAX CREDIT TO SEND THEIR KIDS TO A PRIVATE SCHOOL OF THEIR CHOICE.

A LOT OF FRUSTRATIONS IN THE LAST YEAR FROM PARENTS WHEN THEY CAN'T GET THEIR KIDS BACK IN IN-PERSON SCHOOL.

A LOT OF PEOPLE WITH THE MEANS HAVE GONE TO HOMESCHOOLING OR SENDING THEIR KIDS TO PRIVATE SCHOOLS, BUT LOW-INCOME WORKING PARENTS DON'T HAVE THAT OPTION.

I WOULD HAVE SUPPORTED THE ORIGINAL BILL WITH THE REASONABLE CAP.

I THINK IT WAS A $25 MILLION CAP TO ALLOW THEM AND THEIR CHILDREN TO QUALIFY FOR EDUCATIONAL UNC OPPORTUNITY SCHOLARSHIPS, AND THIS CLAIM THAT IT'S GOING TO DESTROY PUBLIC EDUCATION IS SPECIOUS.

IT SOUNDS LIKE IT MIGHT BE TRUE BUT IT IS, IN FACT, NOT.

YOUTON LOOK TO PLACES LIKE FLORIDA THAT HAVE CHARTER SCHOOLS, HUGE EDUCATIONAL TAX CREDIT AND A THRIVING PUBLIC SCHOOL SYSTEM.

ECONOMY COMPETITION MAKE EVERYONE PERIOD.

>> SPEAKING OF CHARTER SCHOOLS THERE'S A LAW ON THE BOOK LEGALIZING THEM IN KENTUCKY BUT IT HASN'T BEEN FUNDED.

>> I WOULD BE FOR PUTTING FUNDING I INTO IT.

>> WILL YOU DO IT THIS YEAR.

>> >> TO BE DETERMINED.

>> JUICE LIKE THE MAC MANDATES.

IF WITH THREE MINUTES I WANT TO GET TO A COUPLE OTHER THINGS.

SPORTS BETTING.

WE HAD HISTORICAL HORSE RACING FLEW OUT OF GATE, TO GO BACK TO THAT ANALOGY.

>> IT DIDN'T COMPATIBLE FLY OUT OF THE GATE.

>> I'M NOT GOOD AT THOSE SPORTS ANALOGIES.

SO WHERE DOES SPORTS BETTING LIE?

IS THAT GOING TO BE A PART OF THE FIVE, SIX-DAY AGENDA HERE?

>> NOT THIS YEAR.

AND I'MY SUPPORTERS SPORTS BETTING PFM I THINK IT'S AN EXTENSION OF OUR HISTORIC OF HORSE RANGING, BUT GETTING HORSE RATING PASSED WITH AN AN ACHIEVEMENT IN THIS SESSION TO KEEP SOMETHING THAT WE HAVE THAT IS NOT ONLY A GROWING SOURCE OF REVENUE TO THE GENERAL FUND BUT ALSO SUPPORTS OUR SIGNATURE INDUSTRY OF HORSE RACING AND BREEDING IN KENTUCKY.

IT WAS HARD.

IT WAS A REALLY HEAVY LIFT.

AND I APPRECIATE ALL MEMBERS OF BOTH PARTIES WHO VOTED YES.

BUT TO TRY ANOTHER BILL ON SPORTS BETTING THIS YEAR IS JUST A BRIDGE TOO FAR.

BUT I KNOW THAT REPRESENTATIVE KOENIG PLANS ON BRINGING IT BACK NEXT YEAR, AND I WILL CONTINUE TO BE SUPPORTIVE.

>> WHAT ARE THE OTHER REVENUE MEASURES THAT YOU'RE THINKING OF AS YOU'RE LOOKING AT THIS BUDGET BUDGET?

ANY?

>> THEATRE GOING TO RAISE TAXES ON PEOPLE -- WE'RE NOT GOING TO RAISE TAXES ON PEOPLE.

I CAN TELL YOU THAT.

THERE'S NOT A LOT OF BIG REVENUE RAISING -- IN ITEMS THAT'S A CONTINUATION BUDGET.

WE'RE GOING WITH THE REVENUES THAT WE'VE MORTGAGE MOST PART EXCEPT IN THE TRANSPORTATION BUDGET WHERE WE'RE LOOKING A THESE FEES AND ITS EV, ELECTRONIC VEHICLE FEES, TAXES, WHATEVER YOU WANT TO CALL THAT.

>> THAT'S A SEPARATE BUDGET SO WE WANT TO MAKE SURE THAT THAT'S CLEAR.

>> THERE IS THE POSSIBILITY OF FILM TAX CREDIT COMING BACK AS A REFUNDABLE TAX CREDIT TO HELP IGNITE THE FILM INDUSTRY IN KENTUCKY.

PRODUCERS AND DIRECTORS FROM ALL OVER NORTH AMERICA WANT COME TO KENTUCKY.

>> WHAT'S THE TUNE OF THAT?

>> TO BE DETERMINED.

CAN'T TELL YOU EVERYTHING TONIGHT, RENEE.

YOU WON'T TUNE IN NEXT TIME.

>> THAT'S NOT HOW THIS WORKS.

>> ACTUALLY, IT IS.

[LAUGHTER] THAT'S WHY YOU COVER ALL THE COMMITTEE MEETINGS.

>> WE'VE GOT SECOND LEFT BUT CAN I SAY SOMETHING ABOUT HIGHER EDUCATION?

WE TALKED A LOT ABOUT PUBLIC EDUCATION BUT THE GOVERNOR PROPOSED A 1% INCREASE IN HIGHER EDUCATION, AND WE NEED TO DO THAT.

WE HAVE NOT FUNDED HIGHER EDUCATION FOR 13 YEARS.

WE'RE THE ONLY STATE IN THE COUNTRY THAT HAS NOT DONE THAT.

IF WE REALLY WANT TO ATTRACT BUSINESS TO COME HERE, WE'VE GOT TO FUNDIER EDUCATION.

>> IS THERE ANY WILL TO GIVE A BUMP TO HIGHER EDUCATION?

>> NOT IN THE CONTINUATION BUDGET.

THEY'RE NOT GOING TO GET HURT BUT THEY'RE NOT GOING TO GET MORE MONEY.

THAT IS WHAT WOULD TYPICALLY HAPPEN IN A TWO-YEAR BUDGET.

I DON'T THINK ANYBODY SHOULD BE ASKING FOR INCREASES WHEN WE'RE IN THE MIDDLE OF THE PALPITATION WITH A LOT OF ECONOMIC UNCERTAINTY.

>> THANK YOU, GENTLEMEN.

THANK YOU FOR WATCHING.

WE'LL SEE YOU VERY SOON.

TAKE GOOD CARE.