Starks here in Louisville filling in for Renee Shaw.

Well, it was a long night in Frankfort.

Lawmakers passed dozens of bills before midnight, which starts a ten day veto period.

They also delivered on one of their constitutional duties, bypassing a two year state budget.

House Bill 500 allocates more than $31 billion in general fund revenue to maintain state services like education and health care.

The bill received unanimous support in the Senate, but it was a different story in the House.

Our Mackenzie Spink kicks off tonight's legislative update.

[MUSIC] >> House Democrats say they want more funding for school mental health services, pre-K expansion and the foster care system.

They also say the funding for Medicaid falls short in the face of steep federal cuts.

The Kentucky Center for Economic Policy, a progressive think tank, says Medicaid in Kentucky is underfunded by $691 million.

Democrats referenced several hospitals that have already downsized or closed in the state, concerned that more could face the same outcome.

>> There's no backup hospital down the street.

There's no hospital on the other side of town.

And so if these systems are hollowed out, what we're telling families in rural communities, the people that we represent, you're on your own.

>> What we continue to do is satisfy our desires about how we think the world ought to be versus what the world really needs.

And Kentuckians are saying, I need health care.

>> Speaker Pro Tem representative David Meade says the Medicaid funding is adequate and that the House Democrats are misleading the public about hospital closures.

>> First of all, Fleming County, an extremely small hospital, had nothing to do with Medicaid.

They made that choice on their.

There.

They're moving forward with their company and how they were going to operate.

The other hospital in Moorhead was bought out by.

UK did not close.

The comments of my hospital in Stanford are completely misleading and basically false, which was said on this floor.

These tactics of half of half truths and fear tactics are getting a little absurd.

Mr.

Mr.

speaker, and they really need to stop.

>> Education spending was also debated.

Some Democrats were happy with the 2% increase in SEEK funding, while others felt it didn't go far enough.

One of the only Democratic yes votes on the budget came from Representative Tina Bojanowski, a Louisville educator.

>> SEEK funding is increasing and with the current inflation rate of 2.4%, I think we're kind of keeping with inflation, at least from last year through the next two years.

I really appreciate the full funding on the actual Actuarially required contributions to the teacher retirement system.

>> Many state agencies are facing a 7% reduction in funding, meaning that the executive branch will have discretion in what areas they choose to make those cuts.

Some of the agencies excluded from the cuts are Veterans Affairs, juvenile justice and a handful of universities.

One, Democrat, says he's heard harsh criticism on the budget from the other side of the aisle as well.

>> You know, last night I had a conversation with one of your majority party colleagues, and he told me that this is the worst budget that he's seen since he's been up here.

You know what, folks?

He's right.

We do cut Medicaid dramatically.

We cut senior Mills.

We cut various critical areas of basic government services that protect our seniors and the folks who need our help the most.

We failed to even seriously consider pre-K for all or any real significant investment in affordable housing.

>> Chair Petrie says restraining growth is not the same as making cuts.

>> Now, we do have a liberal contingent of the United States that believes with all its soul, mind and heart that if you don't keep growing government at the fastest pace you can, with the most money you can, and borrow every bit you can through debt, then you are falling behind.

That is false.

And this budget doesn't follow that falsity.

And we continue to fund the things that are priority in this Commonwealth.

We have stuck with Medicaid, we have stuck with pensions, we have stuck with K-12, we have stuck with higher education.

You name it, we've done it.

>> The House also finally passed the judicial budget for the next two years, which includes increases in salary for judicial branch employees.

>> In previous years, this General Assembly had allocated some new judges, and we funded those judges to the tune of about $5 million in this budget.

Those were funds that the judicial branch was having to come up with on their own.

>> The transportation budget also made its final passage with a last minute amendment, removing the ability for transportation cabinet employees to work from home.

Democrats were split on the final vote.

>> While I don't agree with forcing folks back into the office if they're successfully doing their jobs in a different setting, I am so pleased that we've chosen to put into place three new regional driver's license offices.

The people of Kentucky have asked, and it's good when the General Assembly can respond.

>> Thank you.

The General Assembly is now adjourned until April 15th, and this time the governor will have the chance to sign bills into law or veto them.

He has the ability to line item, veto individual aspects of the budget for Kentucky Edition.

I'm Mackenzie Spink.

>> A fiscal conservative group, is also weighing in on the budget.

Andrew McNeill is with the Kentucky forum for rights Kentucky Forum for Rights or KYFREE.

He said, quote, HB 500 spends too much, contains too many earmarks and short changes.

The hard earned gains we've realized from a consistent commitment to building strong budget reserves, this budget didn't meet the moment by