GOOD EVENING.

WELCOME TO KENTUCKY TONIGHT.

I'M RENEE SHAW.

THANKS FOR JOINING US.

TONIGHT: THE GOVERNOR’S BUDGET ADDRESS.

ORDINARILY, THE GOVERNOR OF KENTUCKY GIVES A BUDGET ADDRESS TO A JOINT SESSION OF THE KENTUCKY GENERAL ASSEMBLY.

INSTEAD, GOVERNOR ANDY BESHEAR HAS PRE-RECORDED HIS BUDGET ADDRESS, WHICH YOU ARE ABOUT TO SEE IN ITS ENTIRETY.

AFTER THE SPEECH, WE WILL BE BACK HERE WITH REACTIONS FROM TWO ECONOMIC POLICY EXPERTS AND TWO POLITICAL STRATEGISTS.

AND NOW, HERE IS GOVERNOR ANDY BESHEAR.

>> GOOD EVENING EVERYONE.

I'M SPEAKING TO YOU TONIGHT FROM OUR STATE CAPITOL AFTER BEING SWORN IN LAST WEEK TO MY SECOND TERM AS YOUR GOVERNOR.

I WAS HONORED TO PLACE MY HAND ON OUR FAMILY BIBLE WITH BRITAINY OUR AMAZING FIRST LADY AND OUR KIDS WILL AND LILA.

WHEN I TOOK THE OATH I MADE A PLEDGE TO CONTINUE TO PUT POLITICS ASIDE, TO BRING OUR PEOPLE TOGETHER AND TO MOVE OUR STATE FORWARD SO WE CAN LEAVE A BETTER KENTUCKY FOR ALL OF YOUR CHILDREN.

PUBLIC-PRIVATE OF BUILDING THAT BETTER KENTUCKY MEANS LEADING BY EXAMPLE NOT TOLERATING OR PARTICIPATING IN HATE OR DIVISION BUT, INSTEAD, LEADING WITH EMPATHY, KINDNESS AND COMPASSION.

THAT'S WHAT MY FAITH TEACHES ME, TO LOVE MY NEIGHBOR.

WITH THE CHRISTMAS SEASON UPON US OUR FAMILIES ARE ENJOYING THE SPECIAL TIME OF YEAR, ATTENDING CHURCH SERVICES, SPENDING TIME WITH LOVED ONINGS AND ENJOYING GIVING TO OTHERS.

HERE IN FRONTING FOR THE WE ARE USHERING A NEW YEAR AND WE WILL PASS A BUDGET.

I'M SPEAKING TO YOU TO UNVEIL MY BUDGET PLAN TITLED FORWARD TOGETHER.

I WANT ALL KENTUCKIANS AND OUR LAWMAKERS TO KNOW IT IS CRITICAL THAT WE WORK TOGETHER SO THAT WE PASS A BUDGET THAT INVESTS IN OUR FAMILIES AND TURNS THE LAST FOUR YEARS OF PROGRESS INTO DECADES OF PROSPERITY.

RIGHT NOW, I SEE A BRIGHT FUTURE WITH MORE OPPORTUNITY THAN AT ANY TIME IN MY LIFE AND IT'S WITHIN OUR GRASP.

THE FOUNDATION OF WHAT WE BUILT TOGETHER OVER THE PAST FOUR YEARS GIVES ME GREAT CONFIDENCE THAT WE CAN DO JUST THAT.

SO BEFORE WE GET TO THE NEW PLAN, LET'S THINK ABOUT HOW FAR WE'VE COME.

AFTER FACING SOME OF THE BIGGEST CHALLENGES THAT ANYONE CAN REMEMBER, INCLUDING A GLOBAL HEALTH PANDEMIC AND MULTIPLE HISTORIC NATURAL DISASTERS, WE ARE REBUILDING, REVITALIZE AND EMERGING STRONGER THAN EVER.

NO LONGER AFLYOVER STATE, WE HAVE BECOME A DESTINATION FOR GLOBAL BUSINESSES.

WE SECURED THE BEST FOUR-YEAR PERIOD FOR ECONOMIC GROWTH IN OUR HISTORY.

WE SET A RECORD FOR NEW PRIVATE SECTOR INVESTMENT MORE THAN $28.5 BILLION.

THE MOST SECURED BY ANY GOVERNOR.

WE'RE BUILDING THE TWO LARGEST ELECTRIC VEHICLE BATTERY PLANETS ON PLANET EARTH AND OPENED THE CLEANEST RECYCLE PAPER MILL AND THE GREENEST STEEL PLANT IN THE COUNTRY.

WE'RE MOVING FORWARD ON HUGE INFRASTRUCTURE PROJECTS LIKE BUILDING THE BRENT SPENCE COMPANION BRIDGE, FOUR LANING THE MOUNTAIN PARKWAY AND PUSHING I69 FORWARD.

WE SECURED FEDERAL FUNDING TO RUN HIGH SPEED INTERNET TO EVERY COMMUNITY.

AND MANY FAMILIES ARE GETTING CLEAN DRINKING WATER FOR THE FIRST TIME.

WE'VE EXPANDED HEALTHCARE ACROSS THE STATE.

WE'VE CAPPED THE PRICE OF INSULIN AND INCREASED DRUG TREATMENT AND RECOVERY SERVICES STATE-WIDE.

IN FACT, WE NOW HAVE THE MOST DRUG TREATMENT BEDS PER CAPITA IN THE COUNTRY.

WE'VE HAD THE BEST YEARS ON RECORD FOR OUR TOURISM AND OUR BOURBON INDUSTRIES AND WE PASSED SPORTS BETTING AND MEDICAL MARIJUANA TWO WINS MANY SAID COULD NEVER HAPPEN IN A PARTISAN ENVIRONMENT.

BUT WORKING TOGETHER WITH LAWMAKERS, WE PASSED NOT ONLY THOSE, BUT 627 BIPARTISAN BILLS.

FOLKS, WE HAVE RECORD-HIGH BUDGET SURPLUSES AND RECORD LOW UNEMPLOYMENT.

WE'VE SECURED THE LARGEST GENERAL FUND SURPLUS AND LARGEST RAINY DAY FUND EVER.

AND WE DID IT ALL WHITE CUTTING PROPERTY AND INCOME TAXES.

BEST OF ALL MORE THAN 50,000 JOBS HAVE BEEN CREATED SOME OF THE HIGHEST WAGES WE'VE EVER SEEN.

THAT'S 55500 MORE KENYANS WITH HAVING THE SECURITY OF HAVING A GOOD JOB AND ALL THIS PROGRESS IS PROOF WE HAVE GOTTEN GOOD THINGS DONE FOR OUR FAMILIES BY WORKING TOGETHER.

WHEN YOU HAVE HISTORIC WIN AFTER HISTORIC WIN THERE'S ENOUGH CREDIT TO GO AROUND.

SO THANK YOU TO THE GENERAL ASSEMBLY, TO OUR LOCAL LEADERS, TO OUR PRIVATE SECTOR LEADERS AND OUR NONPROFITS.

THANK YOU TO EVERYONE WHO HELPED US ACCOMPLISH SO MUCH FOR OUR PEOPLE.

SO NOW, IT'S TIME TO DO EVEN MORE.

AND MY FORWARD TOGETHER BUDGET PROPOSAL DOES JUST THAT.

THIS BUDGET AIMS TO MEET OUR FAMILIES WHERE THEY ARE.

TO ADDRESS THE CONCERNS THEY WORRY MOST ABOUT.

LOOK, KENTUCKIANS DON'T WAKE UP EVERY MORNING THINK BEING DEMOCRAT OR REPUBLICAN AND NEITHER DOES THIS BUDGET.

KENTUCKIANS WAKE UP THINKING ABOUT THEIR JOBS AND WHETHER THEY CAN PROVIDE FOR THEIR FAMILIES.

THEY ARE THINKING ABOUT THE SAFETY AND THE SECURITY OF THEIR CHILDREN, THEIR HOMES AND THEIR COMMUNITIES.

THEY ARE THINKING ABOUT THE CONDITION OF THE ROADS AND THE BRIDGES THEY TRAVEL ON TO GET TO SCHOOL, TO WORK, AND TO CHURCH.

THEY ARE THINKING ABOUT THE PUBLIC SCHOOLS THEY SEND THEIR KIDS TO AND HOW THE KIDS ARE BEING PREPARED FOR THE JOBS AND THE OPPORTUNITIES OF THE FUTURE.

THESE ARE THE THINGS THAT ACTUALLY MATTER TO OUR PEOPLE, NOT RED, NOT BLUE, THESE ARE THE THINGS THAT ARE IMPORTANT TO EVERYONE.

THIS BUDGET REFLECTS OUR SHARED KENTUCKY VALUES.

OF FAMILY, FAITH, AND COMMUNITY.

LET'S START WITH THE VALUE WE PLACE ON PUBLIC EDUCATION.

I HAVE ALWAYS BEEN AN EDUCATION FIRST GOVERNOR.

I AM A PROUD GRADUATE OF KENTUCKY PUBLIC SCHOOLS AND BOTH OF MY KIDS ARE IN OUR PUBLIC SCHOOLS.

BRITAINY AND I WE UNDERSTAND THE WORRIES OF OUR KENTUCKY PARENTS.

SO DOES YOUR LIEUTENANT GOVERNOR, WHO IS ALSO A TEACHER.

THAT'S WHY WE HAVE WORKED HARD TO PROTECT EDUCATORS PENSIONS AND WHY WE'VE WORKED WITH THE ASSEMBLY TO SECURE RAISES AND INVEST $250 MILLION IN CAREER AND TECHNICAL EDUCATION.

WE'VE RAISED THE PER PUPIL ELEMENTARY AND SECONDARY EDUCATION FUNDING BY 7.5% THE BIGGEST HIKE SINCE 2008.

AND WE MADE THE BIGGEST INCREASE IN POST-SECONDARY EDUCATION FUNDING SINCE BEFORE THE GREAT RECESSION.

BUT MORE MUST BE DONE.

OUR CHILDREN DESERVE THE VERY BEST EDUCATION AND ALL THE OPPORTUNITIES COMING THEIR WAY.

SO TO MAKE SURE WE DWHRIFER ON THIS PROMISE, WE MUST PROVIDE AN 11% RAISE TO ALL PUBLIC SCHOOL EMPLOYEES INCLUDING TEACHERS, BUS DRIVERS, CAFETERIA WORKERS, JANITORS EVERYONE.

THE NATIONAL EDUCATION ASSOCIATION CURRENTLY RANKS US, KENTUCKY, 44TH IN STARTING TEACHER PAY AND 40TH IN AVERAGE TEACHER PAY.

WE MUST DO BETTER.

IT'S SIMPLE.

CAN YOU NOT GIVE A CHILD EVERY OPPORTUNITY IF THEY DON'T HAVE A TEACHER IN EVERY CLASSROOM.

WE WON'T HAVE ENOUGH BUS DRIVERS UNLESS WE PAY A BETTER WAGE AND WE CANNOT REMAIN COMPETITIVE WITH OTHER STATES IF WE DON'T PAY OUR TEACHERS AND EMPLOYEES WHAT THEY ARE WORTH.

THIS PAY RAISE WOULD MOVE US TO 24TH PLACE IN STARTING TEACHER PAY AND UP TO 25TH PLACE IN AVERAGE TEACHER SALARY.

ACTING NOW WOULD GO A LONG WAY TO SHOWING OUR EDUCATORS THAT WE CARE ABOUT THEM BY PAYING THEM CLOSER TO WHAT THEY DESERVE.

OUR PUBLIC SCHOOLS ARE THE BACKBONE OF EVERY COMMUNITY.

AND IN MANY COUNTIES THEY ALSO SERVE AS THE LARGEST EMPLOYER.

IN FACT, TEACHER SALARIES MAKEUP 10% OR MORE OF ALL WAGES PAID IN 26 KENTUCKY COUNTIES.

THAT IS BATH, BRACK KEN, EDMONSON, ELLIOT, GAL CONTINUE, HENRY, HICKMAN, JACKSON, LaRUE, LESLIE, LEWIS, MCCREARY, MENIFEE, NICHOLAS, OWEN, ROBERTSON, SPENCER, TREMBLE AND WOLF.

JUST IMAGINE THE LOCAL ECONOMIC IMPACT OF AN 11% RAISE TO EVERY EMPLOYEE OF THE COUNTY'S LARGEST EMPLOYER.

AND WE HAVE THE FUNDING TO DO IT.

THESE RAISES WILL NOT ONLY HELP US RECRUIT BUT WILL HAVE A MAJOR IMPACT ON LOCAL COMMUNITIES.

EDEN A SPECIAL EDUCATION TEACHER AT BULLET CENTRAL HIGH SCHOOL UNDERSTANDS THIS AND TOLD US AN INCREASE IN PAY WOULD NOT JUST BENEFIT HER AND HER COWORKERS BUT STUDENTS AND COMMUNITY.

EDEN SAY WE ARE AT A CROSSROADS IN IN THE WORLD OF EDUCATION WE HAVE ASSISTANTS AND TEACHERS NOT MAKING A LIVING WAGETH SOME PARTS OF THE STATE.

WE HAVE TO STEP UP TO SAY THAT THE FUTURE OF KENTUCKY'S EDUCATION IS IMPORTANT ENOUGH TO INVEST NOW.

WE'VE ALSO HEARD FROM JOLEENNA, A FIFTH GRADE TEACHER IN LAUREL COUNTY.

SHE TOLD US AN 11% RAISE WOULD BE LIFE CHANGING.

AND IT WOULD MAKE THINGS EASIER AND PERHAPS SHE AND SOME OF HER COWORKERS WOULDN'T HAVE TO LOOK FOR SECOND AND THIRD JOBS JUST TO MAKE ENDS MEET.

MAKING OUR TEACHERS SEARCH FOR THE EXTRA JOBS IS UNACCEPTABLE.

THE STATES AROUND US KNOW HOW IMPORTANT INCREASING TEACHER PAY IS.

AND THEY'VE PROVEN IT IS NOT ABOUT POLITICS.

THE REPUBLICAN GOVERNOR OF TENNESSEE SIGNED A BILL THIS YEAR, TO PROVIDE THEIR TEACHERS THE LARGEST PAY RAISE IN STATE HISTORY.

THIS BUDGET IS OUR OPPORTUNITY, OUR CHANCE TO MAKE THINGS RIGHT HERE IN KENTUCKY.

NEXT, WE MUST FUND UNIVERSAL PRE-K FOR ALL FOUR-YEAR-OLDS SO EVERY KENTUCKY CHILD IS KINDERGARTEN READY AND WE STOP LEARNING LOSS BEFORE IT STARTS.

AND THE 2022-2023 YEAR, 46% OF KINDERGARTENERS WERE CONSIDERED KINDERGARTEN READY.

THAT'S WHY MY BUDGET WILL PROVIDE $172 MILLION EACH YEAR TO FUND UNIVERSAL PRESCHOOL FOR ALL FOUR-YEAR-OLD CHILDREN SO EVERY CHILD IS KINDERGARTEN READY.

THE DEPARTMENT OF EDUCATION ESTIMATES THAT UNDER THIS PLAN ABOUT 34,000 ADDITIONAL KENTUCKY FOUR-YEAR-OLDS WOULD BE PROVIDED WITH A PRESCHOOL EDUCATION.

THIS WOULD BE AN UNPRECEDENTED INVESTMENT FOR KENTUCKY'S CHILDREN.

IMAGINE THE DIFFERENCE IT WILL MAKE WHEN EVERY SINGLE KENTUCKY CHILD ENTERS KINDERGARTEN PREPARED TO LEARN.

FUNDING FOR UNIVERSAL PRE-K IS THE NUMBER ONE ACTION WE CAN TAKE TO GET MORE PEOPLE BACK TO WORK.

IT TAKES THE BURDEN OF PAYING FOR AN EXTRA YEAR OF CHILDCARE OFF THE BACKS OF WORKING PARENTS.

BUT TO MAKE IT WORK, AND TO GET MORE FOLKS IN THE WORKPLACE WE HAVE TO SUPPORT AN INVEST IN CHILDCARE AS WELL.

THESE ARE THE PROVIDERS WHO ARE CARING FOR AND HELPING PREPARE OUR EARLIEST LEARNERS.

AND WE KNOW THAT WHEN PARENTS CANNOT FIND QUALITY CHILDCARE, THE STRESS AND THE ANXIETY THEY FEEL CAN BECOME TOO MUCH AND DRIVES MANY OUT OF THE WORKFORCE.

TO HELP WE'RE MAKING A MAJOR INVESTMENT.

I'M INCLUDING 68 MILLION IN FISCAL YEAR 2025 AND 73 MILLION IN 2026 FOR CHILDCARE ASSISTANCE OF THAT AMOUNT, 40 MILLION A YEAR ALLOWS US TO RETAIN THE AVERAGE PER DAY PROVIDER REIMBURSEMENT RATE FOR THE CHILDCARE ASSISTANCE PROGRAM AND 13 MILLION IN EXISTING FEDERAL CHILDCARE DEVELOPMENT FUNDS WILL BE FREED UP DUE TO VUN UNIVERSAL PRESCHOOL AND WE WILL MAKE THAT AVAILABLE TO FUND AND TARGET CHILDREN FROM BIRTH TO THREE-YEAR-OLDS TO MAKE SURE THERE ARE MORE CHILDCARE SLOTS FOR THEM.

IT ALSO ALLOWS US TO ENCOURAGE ADDITIONAL PRIVATE CHILDCARE SLOTS WITH 15 MILLION IN FISCAL YEAR 2025 AND 20 MILLION IN FISCAL YEAR 2026 FROM FROM THE GENERAL FUND THAT WILL BE INCLUDED FOR CHILDCARE PAYMENTS AGAIN TO PROVIDERS WHO CARE FOR CHILDREN FROM BIRTH TO THREE YEARS OLD SO THAT WE CAN HAVE MORE SLOTS RIGHT THERE AS THEY MOVE INTO UNIVERSAL PRE-K.

THESE INVESTMENTS SHOW OUR COMMITMENT TO HELPING RELIEVE THE WORRIES THAT PARENTS FACE WHEN IT COMES TO THEIR CHILDREN GETTING QUALITY CARE AND THE BEST EDUCATION.

MY FORWARD TOGETHER BUDGET ALSO RESPONDS TO RECENT BUSING ISSUES BY FULLY FUNDING STUDENT TRANSPORTATION.

AND THIS IS ON TOP OF THE PAY RAISES FOR OUR DRIVERS.

WE'VE SEEN THE DISRUPTION THAT UNDER FUNDING CAUSES.

IF WE'RE SERIOUS ABOUT FIXING IT, WE NEED TO GIVE OUR SCHOOLS THE RESOURCES THAT THEY NEED.

MY BUDGET PLAN ALSO FUNDS STUDENT LOAN FORGIVENESS FULLY FUNDS TEACHER PENSIONS AND INSURES THERE WILL BE NO HEALTH INSURANCE PREMIUM INCREASES FOR SCHOOL EMPLOYEES.

AND FURTHER FUNDS TEACHER PROFESSIONAL DEVELOPMENT, NEW TEXTBOOKS, STUDENT MENTAL HEALTH SERVICES, AND CONTINUED INVESTMENT IN CAREER AND TECHNICAL EDUCATION CENTERS ALL ACROSS KENTUCKY.

AND WHEN IT COMES TO HIGHER EDUCATION, MY PLAN ADDS NEARLY 8% TO THE BASE BUDGETS OF OUR NINE PUBLIC INSTITUTIONS OVER TWO YEARS.

AND IN OUR CURRENT BUDGET, WE MADE SURE FOR THE FIRST TIME IN SEVERAL YEARS, ALL ELIGIBLE APPLICANTS FOR NEED-BASED STUDENT FINANCIAL AID RECEIVED IT.

LIKE PUBLIC EDUCATION, PUBLIC INFRASTRUCTURE IS CRITICAL TO BUILDING THAT BETTER KENTUCKY WE ALL WANT.

AND MANY WAYS WE ARE LIVING THROUGH OUR EISENHOWER MOMENT WE ARE NOT JUST REPAIRING ROADS, BRIDGES AND WATER SYSTEMS, WE ARE PUSHING AHEAD WITH SOME OF THE LARGEST MOST IMPORTANT PUBLIC WORKS PROJECTS EVER IMAGINED.

WE'RE BUILDING A TRUE LEGACY OF INFRASTRUCTURE IN THE COMMONWEALTH WITH INVESTMENTS THAT WILL IMPROVE THE LIVES OF KENTUCKIANS FOR DECADES TO COME.

NOW IS THE TIME TO FOLLOW THROUGH ON THE IMPORTANT WORK WE'VE STARTED AND EXPAND THESE PROJECTS TO LIFT UP EVERY COMMUNITY.

HAVING ACCESS TO CLEAN DRINKING WATER IS A BASIC HUMAN RIGHT.

SO LET'S START BY PROVIDER MORE CLEAN WATER TO OUR FAMILIES.

I'M PROPOSING DIFFICULT 500 MILLION IN GRANTSES TO CONTINUE TO PROVIDE UNSERVED FAMILIES ACCESS TO CLEAN WATER AND WASTEWATER SYSTEMS.

IF PASSED, IT WILL BUILD UPON THE $500 MILLION WE HAVE ALREADY ALLOCATED IN FEDERAL DOLLARS SINCE 2021 THROUGH A BIPARTISAN AGREEMENT WITH THE GENERAL ASSEMBLY.

SEEING THE IMPACT OF THIS PROGRAM FIRSTHAND IS INCREDIBLE.

EARLY EARLY THIS YEAR, I VISITED WITH RUTH AND JUNE WHOSE HOMES WERE PART OF THE VERY FIRST CLEANER WATER PROGRAM PROJECT WE ANNOUNCED.

RUTH AND JUNE LIVED IN MORTON'S GAP FOR 60 YEARS WITHOUT RUNNING WATER.

JUST WATCHING THEM TURN ON THE TAP AND BE ABLE TO TRUST WHAT WAS COMING OUT WAS SPECIAL.

THE DIFFERENCE THIS MADE FOR THIS ONE FAMILY WAS LIFE CHANGING.

AND SOMETHING WE OWE TO ALL OF OUR PEOPLE.

IT IS ALSO TIME TO MAKE A FINAL PUSH TO EXPAND HIGH SPEED INTERNET INTO EVERY HOME IN EVERY BUSINESS ACROSS KENTUCKY.

WE'VE ALREADY MADE HISTORIC INVESTMENTS TOTALING $590 MILLION.

NOW, WE SECURED A NEARLY $1.1 BILLION FEDERAL GRANT WHICH WILL BE THE LARGEST PUBLIC INVESTMENT IN HIGH SPEED INTERNET IN STATE HISTORY.

SO I'M ASKING THE GENERAL ASSEMBLY TO APPROVE THESE FUNDS FOR DISTRIBUTION.

BY COMBINING FEDERAL AND MATCHING FUNDS, WE SHOULD SEE NEARLY $2 BILLION INVESTMENT TO FINALLY MAKE HIGH SPEED INTERNET A REALITY IN EVERY KENTUCKY HOUSEHOLD.

NEXT, I'M RECOMMENDING INVESTING $10 MILLION IN GENERAL FUND DOLLARS OVER THE NEXT TWO YEARS IN THE AFFORDABLE HOUSING TRUST FUND TO PROVIDE MORE KENTUCKIANS IN NEED WITH AFFORDABLE HOUSING.

THIS WOULD MARK THE FIRST INVESTMENT OF GENERAL FUNDS IN THIS PROGRAM IN ALMOST 20 YEARS.

THE FUND TYPICALLY LEVERAGES ABOUT $9 IN PRIVATE FUNDS FOR EVERY $1 INCLUDED IN THE TRUST FUND.

SO THIS SHOULD GENERATE 100 MILLION IN ADDITIONAL INVESTMENT FOR AFFORDABLE HOUSING ABOVE AND BEYOND WHAT THE TRUST FUND DOES.

MOVING FORWARD TOGETHER ALSO MEANS MAKING THE INVESTMENTS TO GET MAJOR ROAD PROJECTS DONE.

IN THIS BUDGET PROPOSAL, I'M SEEKING $300 MILLION OVER TWO YEARS TO CONTINUE AND SPEED UP THE WORK WE STARTED ON THE FOUR LANING OF THE MOUNTAIN PARKWAY AND MOVING THE I69 RIVER CROSSING FORWARD.

THESE FUNDS WILL FURTHER HELP OUR APPLICATIONS FOR FEDERAL GRANTS.

WE MUST ALSO KEEP SUPPORTING LOCAL PROJECTS THAT HELP OUR FAMILIES GET TO THOSE BALL GAMES, FAMILY GATHERINGS AND HOUSES OF WORSHIP.

THAT IS WHY MY BUDGET CREATES A $50 MILLION FUND FOR GRANTS TO REPAIR MORE CITY AND COUNTY BRIDGES ACROSS THE STATE.

WHILE THE RESPONSIBILITY FOR REPAIR AND REPLACEMENT OF THESE BRIDGES FALLS ON LOCAL GOVERNMENTS THE REPAIR COSTS OFTEN FAR EXCEED AVAILABLE LOCAL RESOURCES.

SO IT'S TIME THAT WE STEP UP AND HELP TO MAKE SURE THE BRIDGES AND THE ROADS WE TRAVEL ARE RELIABLE AND SAFE.

I'M ALSO PROPOSING TO USE ONE TIME FUNDS TO UNDERWRITE A ONE-YEAR TAX CREDIT FOR KENTUCKIANS FOR THE TOLLS THEY PAY DRIVING OVER THE LOUISVILLE JEFFERSON COUNTY BRIDGES DURING THE CALENDAR YEAR 2024.

WE ARE ALSO MAKING SURE THAT OUR COMMUNITIES HAVE AN OPEN DOOR TO THE WORLD BY INVESTING $50 MILLION TO SUPPORT THE STATE'S 58 GENERAL AVIATION AIRPORTS FOR DEVELOPMENT, REHABILITATION AND MAINTENANCE.

SINCE WE ARE NO LONGER A FLYOVER STATE AND WE ARE NOW THE DESTINATION, WE MUST INSURE OUR AIRPORTS ARE WORKING AND WELCOME.

THESE INVESTMENTS HELP OUR FAMILIES AND KEEP OUR RED HOT ECONOMY BOOMING.

WE'VE ALREADY SUBMITTED OUR STATUS AS THE ELECTRIC VEHICLE BATTERY PRODUCTION CAPITAL OF THE UNITED STATES OF AMERICA.

AND KENTUCKIANS SHOULD EXPECT MORE WINS AS WE BUILD OUT THE EV SUPPLY CHAIN RIGHT HERE.

IN ADDITION TO OUR WORKERS, COMPANIES LOOKING TO LOCATE HERE ARE FOCUSED ON SPEED TO MARKET AS A CRITICAL DECIDING FACTOR.

AND IT'S CLEAR WHEN WE HAVE BUILD READY SITES WE WIN THE RACE FOR NEW JOBS.

ALL WE HAVE TO DO IS LOOK AT FORD AND SK BLUE OVERRAL SK PROJECT IN GLENDALE.

THAT IS A 5.8 BILLION, 5,000-JOB ECONOMIC DEVELOPMENT PROJECT THAT IS THE LARGEST IN OUR STATE'S HISTORY.

AND IT WAS MADE POSSIBLE BECAUSE OF DECADES OF INVESTMENT AND HARD WORK THAT PREPARED THE SITE TO LAND A GAME CHANGING STATE CHANGING PROJECT.

TO ENSURE MORE COMMUNITIES GET THESE OPPORTUNITIES, MY NEW BUDGET PROPOSAL INVESTS ANOTHER $200 MILLION OVER THE NEXT TWO YEARS.

100 MILLION TO PREPARE MEGA DEVELOPMENT PROJECTS AND 100 MILLION FOR COUNTY AND REGIONAL SITE DEVELOPMENT WE KNOW THIS WORKS.

WORKING WITH LAWMAKERS WE'VE DEDICATED $100 MILLION TO THIS KIND OF SITE DEVELOPMENT THROUGH OUR SUCCESSFUL KENTUCKY PRODUCT DEVELOPMENT INITIATIVE.

WE'VE MADE KEY INVESTMENTS ACROSS THE STATE INCLUDING A SITE IN GRAVES COUNTIES HICKORY INDUSTRIAL PARK THAT IS ALREADY SECURED A MANUFACTURER AIDING THE REBUILDING EFFORTS FOLLOWING TORNADOES THAT DEVASTATED MAYFIELD.

TO DATE, MORE THAN 47 COUNTIES RECEIVED FUNDING TO DEVELOP MORE BUILD READY SITES AND A SECOND ROUND OF FUNDING IS ON THE WAY.

MY BUDGET ADDS URGENCY TO THIS INITIATIVE AND SPREADS THE BENEFITS TO EVEN MORE COMMUNITIES.

THE FINALLY, MY PLAN PROVIDES $15 MILLION IN THE FIRST YEAR OF THE BUDGET TO HELP THE STATE BUILD A GLOBALLY COMPETITIVE TALENT DEVELOPMENT SYSTEM.

THESE FUNDS WILL BE USED TO LAUNCH A NATIONAL MARKETING CAMPAIGN AS WELL AS TARGETED REGIONAL CAMPAIGNS TO RECRUIT AND RETAIN TOP TALENT IN KENTUCKY.

KENTUCKY IS ATTRACTING BOTH MORE BUSINESSES AND MORE VISITORS.

2022 WAS THE BEST YEAR ON RECORD FOR THE TOURISM INDUSTRY.

WITH 12.KNIFE BILLION IN ECONOMIC IMPACT, THE SUSTAINED MORE THAN 91600 KENTUCKY JOBS.

NOW, TO KEEP THE MOMENTUM MOVING, WE MUST INVEST MORE IN OUR STATE PARKS.

THAT IS WHY THIS BUDGET PUTS TO USE THE $71 MILLION SET ASIDE BY THE 2022 LEGISLATIVE SESSION FOR IMPROVEMENTS AND REPAIRS TO THESE PROPERTIES.

THE RELEASE OF THESE FUNDS IS VITAL TO MAINTAIN AND REVITALIZE THE PARKS THAT ALLOW EVERY CITIZEN TO ENJOY SOME OF THE COMMONWEALTH'S GREATEST TREASURES.

LIKE CUMBERLAND FALLS, NATURAL BRIDGE, LAKE BARCLAY AND CARTER CAVES.

ADDITIONALLY, I'M PROPOSE 184 MILLION FOR A SET OF PROJECTS FOR THE PARK SYSTEM.

RANGING FROM THE RECONSTRUCTION OF MARINAS AND CONFERENCE CENTERS TO UPDATING CRITICAL ELECTRICAL AND WATER SYSTEMS.

THESE PARKS PROVIDE TOURISTS FROM ALL OVER THE NATION AND ALL OVER THE WORLD WITH UNIQUE OPPORTUNITIES TO TAKE IN THE UNSURPASSED BEAUTY OF THIS GREAT COMMONWEALTH AND THESE FUNDS WILL BE USED TO ENSURE AN EXPERIENCE THAT KEEPS THEM COMING BACK.

FOR ALL OF US IN STATE GOVERNMENT, PUBLIC SAFETY IS MORE THAN JUST A TOP PRIORITY.

IT IS A SACRED TRUST WE HAVE WITH THE PEOPLE WE SERVE.

AS GOVERNOR BUT ALSO AS A DAD, I BELIEVE THAT EVERY SINGLE KENTUCKIANS SHOULD BE ABLE TO FEEL SAFE IN THEIR COMMUNITY, WORKPLACE AND SCHOOL.

I FOCUSED ON THESE ISSUES AS ATTORNEY GENERAL AND NOW AS GOVERNOR AND I'M PROUD OF THE PROGRESS WE'VE MADE.

JUST IN THE LAST TWO YEARS, WE HAVE TAKEN STEPS THAT HAVE RESULTED IN MORE THAN AN $18800 FOR TROOPERS AND OFFICERS.

DUE TO THE INCREASES, AND THE TIRELESS EFFORTS FROM THE KSP RECRUITMENT BRANCH MORE THAN 1,000 TROOPERS ARE KEEPING US SAFE THE HIGHEST NUMBER SINCE 2017.

WE'VE ALSO SUPPORTED TRAINING FOR LOCAL LAW ENFORCEMENT OFFICERS BY RAISING THE CURRENT TRAINING STIPEND TO AN ALL-TIME HIGH IN THE LAST BUDGET.

LIKE OUR EDUCATORS, OUR LAW ENFORCEMENT OFFICERS DESERVE TO BE RESPECTED AND TO BE PAID FAIRLY FOR THE INCREDIBLE DIFFICULT WORK THEY PERFORM ON OUR BEHALF EVERYDAY.

TO AKEEFE THAT, FIRST, I'M PROVIDING 2500 RAISE FOR ALL KSP TROOPERS AND OFFICERS AND FUNDING TO ADD 150 MORE TROOPERS OVER THE NEXT TWO YEARS.

MY BUDGET ALSO RAISES THAT TRAINING STIPEND THAT THE STATE PAYS LOCAL AND STATE LAW ENFORCEMENT OFFICERS AND LOCAL FIREFIGHTERS.

AND FOR THE FIRST TIME, ADDS CERTIFIED PART-TIME LOCAL LAW ENFORCEMENT OFFICERS TO ELIGIBILITY FOR THE FUND.

APPROXIMATELY 8,000 LAW ENFORCEMENT OFFICERS AND 4100 FIREFIGHTERS WOULD RECEIVE THIS INCREASE.

I'M PROPOSING 35 MILLION DOLLARS TO FUND GRANTS FOR BODY ARMOR TO PROTECT OUR LAW ENFORCEMENT OFFICERS AND FIRST-RESPONDERS.

THIS INVESTMENT WAS INSPIRED BY KSP TROOPER BALL.

HIS LIFE WAS SAVED BY THE PROTECTIVE GEAR HE WORE DURING A DEADLY SHOOTING IN FLOYD COUNTY IN 2022 THAT TOOK THE LIVES OF THREE OF HIS FELLOW OFFICERS AS WELL AS A POLICE CANINE.

WE ARE ALSO SUPPORTING LAW ENFORCEMENT WITH A $146.1 MILLION INVESTMENT TO CONSTRUCT A WESTERN KENTUCKY REGIONAL TRAINING CENTER TO EXPAND LAW ENFORCEMENT TRAINING.

OUR LAW ENFORCEMENT OFFICERS AND FIRST-RESPONDERS PROVIDE KENTUCKIANS WITH SAFETY AND SECURITY DAILY.

AND THEY DESERVE THE SAME IN RETURN.

WHEN IT COMES TO HELPING OUR JUSTICE INVOLVED YOUTH AND KEEPING THEM SAFE IN THE JUVENILE DETENTION CENTERS THIS BUDGET PROVIDES FUND ARE FOR TWO NEW FEMALE ONLY JUVENILE DETENTION CENTERS.

ONE IN FAYETTE COUNTY AND THE OTHER ONE IN WESTERN KENTUCKY.

IT FUNDS THE RENOVATION OF THE JEFFERSON COUNTY YOUTH DETENTION CENTER AND IT RETROFITS DETENTION CENTERS IN McCRACKEN AND FAYETTE COUNTIES AS WELL AS THE LEN DON CENTER IN JEFFERSON COUNTY.

THE PROJECTS ARE NECESSARY.

BECAUSE WE CANNOT HAVE LOW LEVEL MALE OFFENDERS IN THE SAME AREAS AS MORE VIOLENT OFFENDERS AND WE MUST SEPARATE MALES AND FEMALES IN CUSTODY FOR THEIR SAFETY.

BUT TO KEEP MORE YOUTH OUT OF DETENTION, WE'RE ADDING FUNDING $3.9 MILLION EACH YEAR TO ADD APPROXIMATELY 450 ADDITIONAL PLACEMENTS SO THAT MORE YOUTH CAN BE DIVERTED FROM DETENTION CENTERS THROUGH PROGRAMS LIKE HOME DETENTION.

WE'RE ALSO DOING MORE TO HELP OUR ADULT INMATES BY EXPANDING SUPPORT FOR THEM AS THEY REENTER SOCIETY.

MY FAITH TEACHES ME THAT SECOND CHANCE ARE NOT ONLY POSSIBLE THEY ARE OUR RESPONSIBILITY AND WE ARE A BROTHER AND SISTER'S KEEPERS.

CURRENTLY HALF OF THE INMATE POPULATION IS RECEIVING REENTRY SERVICES.

TO CHANGE THIS, WE'RE PROPOSING TO ADD $10.5 MILLION OVER TWO YEARS TO INCREASE REENTRY SERVICES IN JAILS AND TO THE ENTIRE ADULT CORRECTIONAL INSTITUTION INMATE POPULATION.

TO DO THIS, WE'RE GOING TO BUILD A REENTRY SKILLED TRAINING FACILITY ON THE GROUNDS OF EASTERN KENTUCKY CORRECTIONAL COMPLEX THAT WILL HELP US PROVIDE JOB SKILLS TRAINING SO THAT THOSE WHO HAVE PAID THEIR DEBT TO SOCIETY CAN SECURE AND KEEP A GOOD JOB UPON THEIR RELEASE.

WE CURRENTLY HAVE THE LOWEST RECIDIVISM RATE IN OUR HISTORY.

THAT MAKES US SAFER AND WE WANT TO KEEP IT GOING.

NEXT, LET'S TALK ABOUT ACCESS TO AFFORDABLE HEALTHCARE.

KENTUCKIANS DESERVE TO BE SAFE WHEREVER THEY ARE.

THEY ALSO DESERVE TO BE CARED FOR PROPERLY WITH COMPASSION WHEN THEY ARE SICK OR INJURED.

HEALTHCARE IS A BASIC HUMAN RIGHT.

AND I'VE WORKED TO EXPAND ACCESS TO QUALITY CARE IN EVERY CORNER OF THE COMMONWEALTH.

WE HAVE SEEN AMAZING PROGRESS.

WE PROTECTED HEALTHCARE ACCESS FOR NEARLY 100,000 KENTUCKIANS BY REMOVING ROADBLOCKS.

WE RELAUNCHED AND EXPANDED THE STATE INSURANCE MARKETPLACE CALLED CONNECT.

WE'VE EXPANDED MEDICAID COVERAGE AND BOOSTED OUR WORKFORCE BY ADDING DENTAL, VISION AND HEARING COVERAGE WE CAPPED THE COST OF INSULIN AND EXPANDED HEALTHCARE ALL OVER KENTUCKY INCLUDING WORKING TO BUILD THE FIRST HOSPITAL IN WEST LOUISVILLE IN 150 YEARS.

TO MAKE SURE WE CAPITALIZE ON THESE SUCCESSES, IN THIS BUDGET WE FULLY FUND MEDICAID INCLUDING MEDICAID EXPANSION TO ENSURE THAT HEALTHCARE CONTINUES TO BE PROVIDED FOR OVER 1.5 MILLIKEN KENYANS.

WE ARE ALSO INCLUDING NEW FUNDING FOR 500 SLOTS IN THE PROGRAM AND 250 ADDITIONAL SLOTS IN THE SUPPORTS FOR COMMUNITY LIVING WAIVER PROGRAM.

THESE ARE CRITICAL HEALTHCARE SERVICES THAT KENTUCKIANS WITH MENTAL OR INTELLECTUAL DISABILITIES RELY ON.

OUR ADMINISTRATION HAS ALWAYS TREATED MENTAL HEALTH THE SAME AS PHYSICAL HEALTH.

IN THIS BUDGET WE'RE TAKING A GIANT LEAP FORWARD AND HELPING KENTUCKIANS.

WE ARE LAUNCHING MOBILE CRISIS INTERVENTION SERVICES.

THESE COMMUNITY-BASED PROGRAMS WILL PROVIDE TRAINED HEALTHCARE PROFESSIONALS TO RESPOND TO KENTUCKIANS BATTLING ADDICTION OR BEHAVIORAL HEALTH CRISIS.

WE'RE GOING TO DO ALL WE CAN TO HELP KENTUCKIANS IN NEED.

SENDING THEM TO THE EMERGENCY ROOM OR JAIL IS NOT ALWAYS THE RIGHT ANSWER.

AND THIS PROGRAM PROVIDES PEOPLE WITH THE TARGETED HELP THEY NEED AND DESERVE.

AND TO HELP OUR MOST VULNERABLE CHILDREN WE ARE GOING TO CONTINUE TO FUND THE PEDIATRIC RESEARCH TRUST FUND BY ADDING $5 MILLION ADDITIONALLY IN EACH YEAR.

AND WHEN IT COMES TO OUR CHILDREN, EACH ONE DESERVES A SAFE AND LOVING HOME.

BUT THE WORLD WE LIVE IN IS TOUGH AND WHEN A PARENT LOSES THE ABILITY TO CARE FOR THEIR CHILD, WE NEED TO DO MORE TO SUPPORT RELATIVES WHO WANT TO STEP IN AS A PRIMARY CAREGIVER.

THAT IS WHY I'M PROPOSING $10 MILLION FROM THE GENERAL FUND EACH FISCAL YEAR TO INCREASE RATES FOR RELATIVE CAREGIVERS WHO AGREED TO TAKE A CHILD THAT IS ALREADY IN THE STATE'S CUSTODY.

AND WE'RE INCREASING FOSTER CARE RATES BY 12% OR 9.8 MILLION DOLLARS EACH YEAR.

WE'RE DOING MORE TO SUPPORT THOSE WHO STEP UP AND PROVIDE A LOVING HOME FOR EACH CHILD IN NEED.

ONE GREAT COMMON ELEMENT TO MANY IF NOT MOST OF THE PROJECTS INCLUDED IN MY FORWARD TOGETHER BUDGET IS SUPPORT FOR OUR LOCAL GOVERNMENTS AND LOCAL COMMUNITIES.

THE 500 MILLION IN WATER AND SEWER GRANTS GO TO LOCAL COMMUNITIES FOR PROJECTS THEY SELECT.

THE PRODUCT DEVELOPMENT INITIATIVE GRANTS FUND LOCAL PLANS FROM LOCAL OFFICIALS.

THE BRIDGE GRANT SUPPORTS COUNTY AND CITY BRIDGE REPAIRS ALL DECIDED BY THEM.

AND NOT ANYONE IN FRANKFORT.

THAT'S AS IT SHOULD BE.

BEING A GOOD TEAM KENTUCKY PARTNER MEANS HAVING THE HUMILITY TO KNOW WHEN OTHERS KNOW BETTER THAN YOU DO AND THE TRUST THAT THEY WILL DO RIGHT BY THE PEOPLE THEY SERVE AS WELL.

THAT'S WHY MY ADMINISTRATION WORKS CLOSELY WITH COUNTY JUDGE EXECUTIVES, MAYORS, REGIONAL ECONOMIC DEVELOPMENT GROUPS, LOCAL COUNCILS, NONPROFITS AND OTHER STAKEHOLDERS TO MAKE SURE THE PROJECTS WE FUND HAVE THE MOST IMPACT LOCALLY.

AND WHEN IT COMES TO SUPPORTING OUR COAL COMMUNITIES, MY BUDGET RETURNS $100 -- 100% OF THE COAL SEVERANCE TAX REVENUES BACK TO OUR COAL PRODUCING COUNTIES.

THESE COMMUNITIES FUELED THIS COUNTRY THROUGH TWO WORLD WARS AND THEY DESERVE OUR CONTINUED SUPPORT.

JUST THINK ABOUT THE COUNTIES HIT BY FLOODING AND TORNADOES AND THE NEEDS THEY HAVE RIGHT NOW.

THESE ARE IMPORTANT DOLLARS THAT WILL HELP THESE COMMUNITIES THRIVE.

SO IN THIS BUDGET, I'M ALSO PROPOSING MORE THAN $75 MILLION ADDITIONAL DOLLARS TO THE EASTERN KENTUCKY SAFE FUND IN THE CURRENT FISCAL YEAR TO SHORE-UP THE FUND AND PROVIDE MORE RESOURCES FOR REBUILDING OUR EASTERN KENTUCKY COMMUNITIES.

THIS FUNDING BUILDS OFF THE GOOD WORK BY LAWMAKERS AND THIS ADMINISTRATION TO CREATE THIS FUND FOR BOTH THE EAST FOLLOWING THE FLOODING AND THE WEST FOLLOWING THE TORNADOES.

THE STATE AND LOCAL COLLABORATION IS A KEY PART OF MAKING SURE WE MOVE FORWARD TOGETHER.

ANOTHER KEY PART, OUR STATE WORKERS.

I CANNOT THANK THEM ENOUGH FOR THE WORK THEY DO TO BETTER PEOPLE'S LIVES.

THAT IS WHY I WAS HAPPY TO WORK WITH LAWMAKERS AND GRATEFUL THAT THE GENERAL ASSEMBLY PASSED A 14% RAISE FOR OUR PUBLIC SERVANTS OVER THE PAST TWO YEARS.

THIS WAS THEIR FIRST SIGNIFICANT PAY RAISE IN MORE THAN A DECADE.

NOW, I'M RECOMMENDING YET ANOTHER RAISE FOR STATE EMPLOYEES.

I'M PROPOSING 6% ACROSS THE BOARD RAISE IN THE FIRST YEAR, FISCAL YEAR 2025 AND A FISCAL YEAR 2026 I'M PROPOSING ANOTHER 4% INCREASE.

COMBINED WE WOULD SEE THE LARGEST FOUR YEARS OF INCREASES THAT WE ARE AWARE OF.

BUT REMEMBER, THIS IS AFTER NO INCREASES FOR 10 OF THE PAST 12 YEARS.

AND WE HAVE SEEN WHEN WE PAY PEOPLE CLOSER TO WHAT THEY ARE WORTH, WE CAN FILL THE CRITICAL JOBS THAT PROVIDE SERVICES TO OUR PEOPLE.

I'M ALSO PROUD THAT ALL OF OUR BUDGETS HAVE FULLY FUNDED STATE EMPLOYEE PENSIONS AND MADE EXTRA PAYMENTS TO REDUCE THE UNFUNDED LIABILITY.

A PENSION IS A PROMISE.

AND IT'S WRONG TO WEAKEN OR REDUCE BENEFITS THE PEOPLE HAVE WORKED FOR AND PLANNED FOR AND PLANNED THEIR RETIREMENTS AROUND THEM.

I WILL CONTINUE TO STRENGTHEN OUR FAMILIES BY ENSURING RETIREMENTS ARE LIVED WITH DIGNITY BY ONCE AGAIN FULLY FUNDING OUR STATE EMPLOYEES PENSIONS AND INCLUDING 209 MILLION DOLLARS OVER THE BIENNIUM TO CONTINUE TO PAY DOWN THE LIABILITY.

WE WANT TO THANK OUR PUBLIC SERVANTS FOR WHAT YOU DO FOR THE PEOPLE OF KENTUCKY.

WE WOULD NOT BE BUILDING THIS BRIGHTER FUTURE WITHOUT YOU.

ALL OF THESE INVESTMENTS ARE NECESSARY.

AND THE GOOD NEWS IS WE CAN AFFORD THEM.

OVER THE YEARS WE HAVE BEEN RESPONSIBLE STEWARDS OF KENTUCKIANS' DOLLARS AND THE RESULTS SPEAK FOR THEMSELVES.

WE HAVE BEEN EFFICIENT, CONSISTENTLY BRINGING MANY PROJECTS IN UNDER BUDGET AND ON TIME AND WE'VE BUILT RECORD SURPLUSES.

WE SECURED THE LARGEST RAINY DAY FUND IN SURPLUS IN STATE HISTORY.

AND THE NEW BUDGET MAKES THESE GREAT NEW INVESTMENTS WITHOUT TOUCHING ANY OF THAT RECORD SAVINGS.

EVEN SOME OF OUR TOUGHEST CRITICS THE CREDIT RATING AGENCIES HAVE RECOGNIZED OUR STRONG FISCAL MANAGEMENT AND UPGRADED OUR FINANCIAL OUTLOOK AND OUR CREDIT RATINGS FOR THE FIRST TIME IN A LONGTIME.

THIS MEANS IT'S GOING TO COST US LESS TO MAKE MANY INVESTMENTS AND, FOLKS, THESE ARE INVESTMENTS WE CAN'T AFFORD NOT TO MAKE.

IN CLOSING, I WANT KENTUCKIANS TO KNOW MY PRIORITY IS TO WORK WITH YOUR LAWMAKERS TO PASS THIS PLAN OR SOMETHING CLOSE TO IT.

BECAUSE THESE INVESTMENTS HELP YOU AND YOUR COMMUNITIES.

THIS PLAN DOES NOT FOCUS ON MOVING THE STATE TO THE LEVEL OR THE RIGHT JUST FORWARD TOGETHER.

LAST WEEK DURING THE INAUGURATION, I TALKED ABOUT HOW OUR COMMONWEALTH IS 231 YEARS OLD AND IN DECEMBER OF OUR FIRST YEAR, UNITED WE STAND DIVIDED WE FALL BECAME OUR STATE MOTTO.

IT'S BEEN WITH US EVERY STEP OF THE WAY.

OUR PEOPLE LIKE THE MOTTO HAVE BEEN TESTED OVER TWO CENTURIES.

WE'VE GOTTEN THROUGH THE HARD TIMES TOGETHER.

AND NOW WE'RE GOING TO GET TO THE GOOD TIMES TOGETHER.

THIS IS EXACTLY HOW WE MUST APPROACH OUR SHARED FUTURE.

THIS NEXT TWO-YEAR BUDGET PERIOD IS OUR CHANCE KENTUCKY'S CHANCE TO BE BOTH AN ECONOMIC AND MORAL LEADER OF THIS COUNTRY.

TO GET THERE WE HAVE TO PUT PARTISANSHIP, DIVISION AND ANGER POLITICS ASIDE AND INSTEAD CHOOSE PROGRESS, COOPERATION AND CONTINUED ECONOMIC MOMENTUM.

I KNOW THAT WE CAN DO THIS AND CONTINUE BUILDING THAT BETTER KENTUCKY THAT WE ALL WANT.

ONE WHERE MY CHILDREN AND YOURS CAN STAY RIGHT HERE AT HOME AND CHASE THEIR DREAMS.

SO TO EVERYONE OUT THERE, THANK YOU, MERRY CHRISTMAS, HAPPY HOLIDAYS, AND MAY GOD BLESS THE COMMONWEALTH OF KENTUCKY.

>> Renee: THAT WAS GOVERNOR ANDY BESHEAR'S BUDGET ADDRESS.

NOW WITH REACTIONS TO IT WE ARE JOINED BY CHARLES AULL, EXECUTIVE DIRECTOR FOR THE KENTUCKY CHAMBER CENTER FOR POLICY AND RESEARCH; JASON BAILEY, EXECUTIVE DIRECTOR OF THE KENTUCKY CENTER FOR ECONOMIC POLICY; AMY WICKLIFFE, REPUBLICAN STRATEGIST AND PARTNER WITH MCCARTHY STRATEGIC SOLUTIONS; AND SHERMAN BROWN, DEMOCRATIC STRATEGIST AND PARTNER WITH MCCARTHY STRATEGIC SOLUTIONS.

SEND US YOUR QUESTIONS AND COMMENTS BY X — FORMERLY TWITTER -- AT K-Y TONIGHT K-E-T.

SEND AN EMAIL TO K-Y TONIGHT AT K-E-T DOT O-R-G. OR USE THE WEB FORM AT K-E-T DOT O-R-G SLASH K-Y TONIGHT.

OR YOU CAN CALL 1-800-494-7605.

WELCOME TO OUR GUESTS.

HAPPY EARLY HOLIDAYS TO YOU ALL.

Mr. BAILEY I WANT TO START WITH YOU TO DPETD YOUR IMPRESSIONS WHAT YOU HEARD THE GOVERNOR PROPOSE EDUCATION FIRST.

HE LED OFF WITH AND SIGNIFICANT ENHANCEMENTS WHEN IT COMES TO K-12 FUNDING FOR TEACHER RAISES ET CETERA.

>> I THINK A BIG THING WE HEARD FROM THE GOVERNOR TONIGHT WAS THAT WE NEED TO DO MORE TO TAKE CARE OF THE PEOPLE WHO TAKE CARE OF US.

THE TEACHERS, THE BUS DRIVERS, THE STATE EMPLOYEES, THE FOLKS WHO HAVEN'T RECEIVED RAISES FOR A LONGTIME.

AND WE'RE LOSING.

WE HAVE A GROWING TEACHER AND BUS DRIVER SHORTAGE FEWER PEOPLE ARE GOING INTO THE TEACHING PROFESSION AND MORE ARE LEAVING.

WE HAVE BUSES THAT CAN'T GET TO SCHOOL ON TIME.

BECAUSE WE DON'T HAVE ENOUGH DRIVERS AND IT'S REACHED A CRISIS POINT.

ONE OF THE THINGS I APPRECIATED WHAT THE GOVERNOR LAID OUT IS THE NEED FOR MORE INVESTMENT IN THOSE FUNDAMENTALS.

IT'S WORKED FOR THE LAST FEW YEARS AS THE GOVERNOR MENTIONED WHEN WE INCREASED STATE POLICE PAY WE GOT MORE STATE POLICE.

IT REVERSED THE ATTRITION WE WERE SEEING THERE.

I THINK THAT REINVESTMENT THAT IS THE LARGEST SINGLE ITEM IN THIS BUDGET THE INCREASE IN SCHOOL EMPLOYEE AND TEACHER RAISES IS ABOUT STEMMING THAT DECLINE AND MAKING SURE THAT WE HAVE THE PEOPLE THAT WE NEED TO PROVIDE THE SERVICES THAT ULTIMATELY WILL MAKE US A STRONGER AND MORE EFFECTIVE STATE.

AND ONE OF THE THINGS YOU WILL NOTICE THE GOVERNOR THREW IN THERE S. NOT ONLY DO TEACHERS AND OTHER PUBLIC SERVANTEDS HELP OUR ECONOMY WHEN THEY SPEND MONEY IT HELPS OUR ECONOMY.

HE LISTED THE COUNTIES WHERE TEACHER PAY IS WAGES WITH MORE THAN 10% OF THE ENTIRE ECONOMY.

SO IT REALLY MATTERS WHEN WE INVEST IN THOSE PEOPLE.

AND MULTIPLIES IN COMMUNITIES.

IN VARIOUS WAYS.

AND WE HAVE FALLEN FAR BEHIND DUE TO BUDGET CUTS AND BUDGETS THAT HAVE NOT BEEN ADEQUATE SINCE 2008.

>> Renee: ANYTHING IN HIS BUDGET PROPOSAL AS PRESENTED TONIGHT, YOU DISAGREE WITH?

>> WELL, I THINK WHAT WE HEARD IN THE GOVERNOR'S BUDGET ADDRESS IS SEVERAL DIFFERENT ITEMS WHERE THERE'S QUITE A BIT OF AGREEMENT.

AND QUITE A BIT OF CONSENSUS INCLUDING NOT ONLY WITHIN THE BROADER KENTUCKY COMMUNITY WITHIN THE BUSINESS COMMUNITY AND WITHIN THE KENTUCKY GENERAL ASSEMBLY.

ISSUES SUCH AS FUNDING FOR EDUCATION, WE HEARD A LOT ABOUT PUBLIC SAFETY, INFRASTRUCTURE INVESTMENT, HOUSING, MARKETING THE STATE'S A RANGE OF DIFFERENT ISSUES I WAS PLEASED TO HEAR A STRONG EMPHASIS ON EARLY CHILDHOOD EDUCATION.

WHICH IS AN AREA WHERE KENTUCKY DOES NEED TO MAKE SIGNIFICANT INVESTMENTS IN.

I WOULD POINT OUT THESE ARE AREAS, THOUGH, WHERE KENTUCKY HAS ALREADY BEEN MAKING PROGRESS.

AND THE GOVERNOR HIGHLIGHTED SEVERAL OF THOSE.

AN EXAMPLE WAS THE FUNDING FOR STATE EMPLOYEE PAY RAISES THAT THE GENERAL ASSEMBLY PROVIDED.

AGAIN YOU HEARD A LOT OF AREAS OF GOOD AGREEMENT.

HOW WE GET TO THOSE PRIORITIES AND GET TO THE GOALS, HOWEVER, THOSE DETAILS MATTER QUITE A BIT.

AND AS I WAS LISTENING TO THE GOVERNOR'S REMARKS SEVERAL QUESTIONS WERE ROOM NATURING IN MY MIND.

I THINK TWO OF THE MOST IMPORTANT ONES THAT CAME UP WAS IN TERMS OF OVERALL SPENDING, HOW CLOSE ARE WE COMING UP AGAINST OUR CURRENT REVENUE ESTIMATES?

THE CONSENSUS FORECASTING GROUP WHICH IS AN ENTITY THAT PROVIDES ESTIMATES FOR HOW MUCH MONEY THE STATE WILL BRING IN FROM TAXPAYER DOLLARS THEY RECENTLY ESTIMATED THAT IN FISCAL YEAR 25 WE ARE EXPECTING 15.5 BILLION AND 62, 16 BILLION.

WITH THIS PROPOSAL ARE WE GOING UP TO THAT EDGE?

OR LEAVING A LITTLE BIT OF BREATHING ROOM?

ARE THERE POTENTIAL SPENDING DECREASES ELSEWHERE?

THOSE ARE IMPORTANT THINGS TO CONSIDER.

>> Renee: IS THAT BECAUSE OF THE INCOME TAX REDUCTION TRIGGERS THIS BUDGET DOES NOT PREDICATE ITSELF ON?

>> THEY ARE IMPORTANT FOR A COUPLE REASONS.

BUT ONE OF THE MOST IMPORTANT REASONS WHICH LEADS ME TO THE SECOND QUESTION THAT I HAD WHICH IS HOW EXACTLY DOES TAX REFORM FIGURE INTO THIS.

THIS IS SOMETHING HE HIGHLIGHTED AT THE START OF HIS REMARKS NOTING WE'VE REDUCED INCOME TAXES AND THE GENERAL ASSEMBLY HAS BEEN MAKING INVESTMENTS IN KEY AREAS.

I'M CURIOUS TO KNOW HOW EXACTLY THIS PROPOSAL WOULD FIT IN WITH THOSE BROADER GOALS OF CONTINUING TO REDUCE THE INDIVIDUAL INCOME TAX RATE.

THOSE ARE THINGS THAT WE LOOKING FOR AS WE GET DETAILS ON THE BUDGET PROPOSAL.

THOSE ARE IMPORTANT QUESTIONS THAT I THINK WE SHOULD ALL ASK AND THIS IS PART OF THE PROCESS.

THIS IS SOMETHING ANY VIEWER SHOULD TAKE NOTE OF IS WE'LL HAVE THE GOVERNOR'S PROPOSAL, WE WILL HAVE A GENERAL ASSEMBLY PROPOSAL, A HOUSE AND SENATE PROPOSAL AND WE'LL FIND OUT HOW THAT SHAKES OUT.

MAYBE SOMETIME IN MARCH.

>> Renee: OR APRIL.

WE GO TO APRIL 15TH THIS TIME.

I WANT TO COME TO YOU ABOUT YOUR IMPRESSIONS OF THIS.

ONE QUESTION THAT WE GET ABOUT COST OF LIVING ADJUSTMENTS FOR RETIREES HE DID NOT MENTION IT, BUT IN A PRESS BRIEFING IT WOULD BE A 13TH CHECK FOR THOSE WHO WERE IN THE KENTUCKY EMPLOYEE RETIREMENT SYSTEM AND THE STATE POLICE RETIREMENT SYSTEMS THERE WILL BE MORE THAT COMES OUT ABOUT THAT.

BUT YOUR IMPRESSIONS WHAT THE GOVERNOR SHARED?

>> IT IS QUITE A WISH LIST IT'S GOOD TO BE THE FIRST ONE OUT OF THE GATE TO TALK ABOUT THE THINGS YOU WANT TO FUND AND IT IS A BETTER SCENARIO TO BE IN THE SITUATION WHERE WE DO HAVE EXTRA FUNDS TO SPEND.

I THINK THE FIRST THING THAT COMES TO MIND AND WHAT IS TOP OF MIND FOR THE REPUBLICAN SUPER MAJORITIES THIS BUDGET LIKELY ABANDONS ALL POSSIBILITY TO REDUCE THE PERSON INCOME TAX A HALFFERS TO GET US TO 3.5% AND THAT HAS BEEN THE REPUBLICAN SUPER MAJORITIES HAVE LEFT HAND LASER FOCUSED ON THAT.

I THINK WHAT YOU WILL HEAR FROM IN REACTIONS IS THE GENERAL ASSEMBLY IS GOING TO TAKE A MORE DISCIPLINED APPROACH TO SPENDING.

THEY WILL BUDGET FOR THE LONG-TERM NOT JUST BASED UPON THE REVENUES WE'RE SEEING TODAY.

I THINK CONTINUING TO HAVE THAT FOCUS ON A STRONG AND HEALTHY BUDGET RESERVE TRUST FUND IS VERY, VERY IMPORTANT TO THEM.

AND SOME PEOPLE WILL SAY -- >> Renee: HE DID NOT TOUCH THE BUDGET RESERVE.

>> WHICH IS GREAT.

SO NOT SURE HOW THE NUMBERS WORK.

WE'LL LOOK FORWARD TO SEEING THE DETAILS.

A LOT OF THIS IS LOOKING TO SEE EXACTLY HOW THAT MATH WORKS.

THAT BUDGET RESERVE TRUST FUND IS SO IMPORTANT BECAUSE IT'S THERE FOR BOTH UNIQUE OPPORTUNITIES HISTORIC OPPORTUNITIES THAT WE HAVE AS A STATE BUT ALSO MAKING SURE WE ARE PREPARED TO STEP IN WHEN TRAGEDY OCCURS SIMILAR TO WHAT WE SAW WITH THE TORNADOES AND THE FLOODS.

I THINK IF THE GENERAL ASSEMBLY HAD NOT DONE WHAT THEY DID OVER THE PAST SEVERAL YEARS, THOSE OPPORTUNITIES MAY NOT HAVE BEEN REALISTIC AT THAT POINT IN TIME.

THAT IS WHY IT'S IMPORTANT TO NOT SPEND EVERYTHING WE HAVE AND MAKE SURE WE'RE THINKING LONG-TERM.

>> Renee: Mr. BROWN A LOT OF THINGS THE GOVERNOR PROPOSED WE'VE BEEN HEARING OUT THROUGH THE CAMPAIGN AND BEFORE THEN THE INAUGURATION SPEECH A LOT IS NOT NEW?

>> NO, A LOT DIDN'T FEEL LIKE NEW STUFF.

ONE OF THE THINGS I WANT TO POINT OUT WE TALKED ABOUT AND CHARLES BROUGHT UP THE VIEWERS TO KNOW THIS IS DIFFERENT.

THIS IS DIFFERENT THAT HE IS GETTING HIS SPEECH AND DOING IT FROM THE CAPITOL AND NOT IN FRONT OF THE GENERAL ASSEMBLY AND DOING THAT A LITTLE BIT GOING BACK TO THE 2022 BUDGET SESSION, LEADING INTO THAT, HOW THAT WAS DONE AND THE HOUSE CAME OUT EARLY AND PREEMPTED IT AND THIS SETUP THE GOVERNOR NOW TO BE HE HAS TAKEN THAT BACK HERE TO PRESENT AND GET OUT AND GET IN FROND OF.

>> Renee: WHAT DOES IT DO TO RELATIONSHIPS GOING FORWARD?

>> IT STARTED THERE.

THAT IS A QUESTION WE'VE HAD ON THIS SHOW.

WHERE WE'VE TALKED ABOUT HOW THAT IS GOING TO BE AND WHO YOU ARE WORKING WITH AND HOW THAT GOES.

HE DID TALK ABOUT THE RELATIONSHIPS.

HE TALKED ABOUT AS FAR AS THE BUDGET, THAT IT DOES LINEUP WITH RECURRING SPENDING WE TALKED ABOUT THAT IT DOESN'T TOUCH THE RAINY DAY FUND.

WE ARE AT A PLACE WHERE WE'RE SEEING THIS OPPORTUNITY FOR THESE INVESTMENTS.

THIS IS A TIME TO TRULY LOOK AT ALL OF THE ACROSS THE BOARD EVERY CABINET EVERYPLACE WHERE GOVERNMENT DOES TOUCH THESE INDIVIDUALS AND YOU'RE TALKING TO KENTUCKY FAMILIES THIS IS WHAT THEY ARE FOCUSED ON.

THEY ARE NOT FOCUSED ON REPUBLICAN AND DEMOCRAT POLITICS AND EVERYTHING ELSE.

THEY ARE NOT THINKING ABOUT THAT.

WE SAW WHAT HAPPENED IN EASTERN KENTUCKY WITH THE TORNADOES AND THE FLOODS, THAT OPPORTUNITY AND WHAT WE'RE DOING NOW TO REBUILD THOSE COMMUNITIES IS HUGE.

AND YOU GET INTO THE OTHER THINGS HE TALKED ABOUT THE PARKWAYS, BRENT SPENCE BRIDGE ALL OF THE THINGS THAT COME WITH THAT.

THE THING I'M INTERESTED IN DIVING INTO IS ALSO THE JUVENILE JUSTICE COMING BACK BECAUSE THAT HAS BEEN A CONVERSATION BUT WE REALLY BEEN SOMETHING HE IS TALKING TO THE LEGISLATURE WITH.

SECRETARY HARVEY AND OTHERS BEING THERE TO TALK TO THEM IN THE GENERAL ASSEMBLY DURING THE INTERIM, BUT WE DON'T HAVE WHERE ARE WE GOING AND WHAT IS THAT GOING TO LOOK LIKE?

I'M INTERESTED TO SEE WHAT THAT LOOKS LIKE.

>> Renee: HE PROPOSED TWO FEMALE ONLY DETENTION CENTERS ONE IN FAYETTE COUNTY, AND WESTERN KENTUCKY AND OTHER SUPPORTS FOR ALTERNATIVES TO DETENTION.

WHICH SOME WOULD SAY ARE SORELY NEEDED.

>> I WANT TO GET BACK TO THE OVERALL PICTURE HERE AS IT RELATES TO THE TAXES.

IF YOU WERE TO TRY TO BUDGET IN A WAY TO TRIGGER MORE INCOME TAX CUTS ACCORDING TO THE FORMULA, YOU WOULD HAVE TO CUT OUT EVERYTHING AND LIKELY MAKE CUTS TO PROGRAMS AND SERVICES AND ADD BILLIONS MORE TO THE BUDGET RESERVE TRUST FUND WHICH ALREADY HAS $3.7 BILLION.

AND WOULD HAVE OVER $5 BILLION BY NEXT SUMMER WHEN THE BUDGET STARTS.

BILLIONS MORE THAN WE ACTUALLY NEED TO PREPARE FOR EMERGENCIES TO PREPARE FOR THE NEXT DOWNTURN.

AND WE CAN'T CONTINUE TO STOCKPILE MONEY WHILE WE STOCKPILE PROBLEMS IN OUR COMMUNITIES.

IF YOU LOOK AT THE THINGS IN HERE, NOT JUST FUNDING FOR SCHOOLS THE WATER AND WASTEWATER INFRASTRUCTURE MONEY A SIGNIFICANT PROPOSAL IN HERE 500 MILLION.

THESE SYSTEMS ARE OUT OF DATE AND WATER AFFORDABILITY IS AN INCREASING PROBLEM ESPECIALLY IN OUR RURAL AREAS.

THESE ARE THINGS THAT NEED TO BE FIXED.

IF YOU LOOK AT CHILDCARE.

WE GOT THE FEDERAL MONEY RUNNING OUT FOR CHILDCARE.

CHILDCARE CENTERS ARE GOING TO CLOSE IF WE DON'T PUT THAT MONEY IN THERE.

THERE ARE SLOTS FOR PEOPLE WITH DISABILITIES.

MORE MONEY TO CLEAN UP AND ADDRESS ALL THE DAMAGE THAT HAPPENED IN EASTERN KENTUCKY FROM THE FLOODS.

YOU COULD NOT DO THOSE THINGS IF YOU WERE TRYING TO CREATE AN AUSTERE BUDGET BECAUSE OUR REVENUE AUSTERE FROM THE CUTS OUR REVENUE IS FLAT OUR SPENDING WOULD HAVE TO BE FLAT.

SO YOU WOULD HAVE TO SEE CUTS.

I JUST WANT TO JUST THERE IS A PLOT IN HERE BECAUSE THE MONEY IS THERE FOR A BUDGET THAT DELIVERS FOR A CHANGE.

AND THE MONEY HAS BUILT UP BILLIONS HAS BEING ADDED IF WE DON'T USE THAT WE HAVE TO SAY WE HAVE PLENTY FOR A RAINY DAY.

WHAT ABOUT THE RAIN THAT IS FALLING ON COMMUNITIES LIKE IN EASTERN KENTUCKY.

>> Renee: SO YOU THINK SOME OF THAT $3.7 SHOULD BE TAPPED INTO?

>> I THINK THERE'S ENOUGH OVER A BILLION IS BEING ADDED EVERY YEAR.

SO THERE IS ENOUGH RECURRING MONEY TO BE ABLE TO USE TO DO THE THINGS WE'RE DOING.

YOU CAN CONSIDER TAKING A LITTLE OUT OF THAT.

IT IS STILL A LOT.

BUT YOU WOULDN'T HAVE TO AND THAT IS WHAT THE GOVERNOR IS PROPOSE NOT TO REDUCE THE AMOUNT IN THE BUDGET RESERVE TRUST FUND.

>> THIS IS A STATE THAT HAS A LONG HISTORY OF DEFICITS AND SPENDING EVERY DOLLAR THAT WE CAN GET RIGHT UP TO THE POINT WHERE YOU CAN SPEND NO MORE.

I DON'T THINK THAT IS A PROCESS THAT SERVED US WELL.

I THINK HAVING A HABIT AND CULTURE OF SAVING MONEY OF NOT SPENDING EVERY SINGLE DOLLAR UP TO THAT LAST POINT, THAT IS A PRUDENT WAY TO BUDGET.

I THINK THAT IS SOMETHING THAT BENEFITS THE KENTUCKY ECONOMY IN THE LONG-RUN.

BECAUSE WE TIMES WILL COME WHERE WE WILL NEEDS THOSE DOLLARS.

AND LET'S NOT FORGET THAT TRUST FUND IS NOT JUST A STOCKPILE OF MONEY.

WE'RE SEEING INVESTMENT RETURNS ON THOSE DOLLARS FOR THE FIRST TIME IN A VERY, VERY LONG TIME.

IT IS ALSO GENERATING REVENUE WHILE IT'S ALSO SITTING THERE FOR THOSE MOMENTS THAT WE NEED IT.

WHEN IT COMES TO THE REDUCTION TO INDIVIDUAL INCOME TAX IT IS IMPORTANT TO UNDERSTAND THAT THE IDEA BEHIND HOW THE GENERAL ASSEMBLY IS APPROACHING THAT ISSUE IS PREDICATED ON GROWTH.

YOU CAN ACCELERATE THAT PROCESS BY 13E7BDING LESS OR DOING TYPES OF REVENUE CHANGES THAT ULTIMA I WILL THE IDEA IS THAT WHEN OUR ECONOMY IS GROWING VERY, VERY RAPIDLY WE TAKE A LITTLE BIT OF THAT AN LOU INDIVIDUALS WHO PAY EARNED INCOME WHO HAVE RUN SMALL BUSINESSES AND WORK EVERYDAY THEY ARE ALLOWED TO KEEP A LITTLE BIT OF THAT.

SO THAT'S BEEN THE GOAL OF HOW THESE INDIVIDUAL INCOME TAXES REDUCTIONS ARE SUPPOSED TO WORK.

I DON'T THINK WE NEED AN AUSTERITY BUDGET TO GET THERE BUT WE NEED TO BE STRATEGIC AND BE TARGETED WITH OUR SPENDING.

AND I THINK THE GENERAL ASSEMBLY'S APPROACH TO THAT OVER THE PAST SEVERAL YEARS THAT'S BEEN THE APPROACH WE'VE SEEN.

SO THAT IS AN AREA I WILL BE INTERESTED IN LOOKING MORE INTO THE GOVERNOR'S PROPOSAL AND SEEING HOW THE COSTS ALL ADD UP ALTOGETHER AND THEN ARE THEY BEING OFFSET IN OTHER AREAS AND HOW ALL THE PIECES FIT TOGETHER.

>> SHERMAN WHAT DO WE KNOW ABOUT THE GOVERNOR'S THINKING WHEN IT COMES TO REDUCING THE INCOME TAX FURTHER?

DOES HE DESIRE FOR IT TO BE ZEROED OUT OR HAPPY WITH 4% IS THERE A MAGIC NUMBER THAT HE THINKS HE IS PAT LITTABLE?

>> I HAVE NOT HAD A CONVERSATION ABOUT HIS NUMBER WHERE HE THINKS THAT IS.

YOU'VE HEARD THROUGH THE DISCUSSIONS THROUGH THE CAMPAIGN OF WHERE THAT IS AND LAST BUDGET, LAST SESSION, OF SIGNING THE BILL.

I DON'T THINK I THINK ONE THING TO ALSO ADD IN HERE IS JUST ON THE TOUR.

THE PARKS INVESTMENTS.

AND THAT TO ME IS ANOTHER PIECE GOING BACK TO WHAT JASON WAS TALKING ABOUT A DIFFERENT OPPORTUNITIES HERE.

91,000 JOBS ARE TOURISM DIRECTLY RELATED.

THAT IS ONE THING THAT GETS OVERLOOKED WHEN WE THINK ABOUT TOURISM PEOPLE COMING IN FOR CONVENTIONS AND THE PARKS HE TALKED ABOUT THOSE.

AND I WAS GLAD WHEN HE WENT THROUGH SOME OF THE COUNTIES I THOUGHT HE WAS GOING TO NAME EVERY PARK AS WELL.

GOING THROUGH AND LOOKING IN THE DEFERRED MAINTENANCE THE MARINAS, 184 MILLION PROPOSING THERE AS WELL.

THERE IS A LOT HERE AMY MENTIONED THE WISH LIST IT IS A PRIORITY LIST.

THAT IS SOMETHING LOOKING AT THE DIFFERENT OPPORTUNITIES THAT EXIST FOR KENTUCKY WHERE WE FIND OURSELVES RIGHT NOW WE DO HAVE A HISTORIC OPPORTUNITY AS HE SAID.

THAT IS WHAT HE IS PROPOSING.

>> Renee: FOR HIGHER EDUCATION HE PROPOSED 8% MORE TO THE BASE FUNDING NOT TO THE PERFORMANCE BASE FUNDING TO THE BASE FUNDING WHICH HAS SUFFERED CUTS OVER PRERECESSION.

>> TO THE POINT ON WHERE DOES THE GOVERNOR STAND ON FURTHER REDUCING THE INDIVIDUAL INCOME TAX, I THINK THAT ACTIONS AND PROPOSALS SPEAK VOLUMES.

AND I THINK WE HAVE TO REMEMBER HE VETOED HOUSE BILL 8 THE FIRST THE WHOLE PLAN HE DID SIGN THE SECOND TIME AROUND HE DID NOT INCLUDE THE ABILITY FOR THAT ADDITIONAL DECREASE TO COME.

I THINK WE PROBABLY KNOW WHERE HE STANDS.

AND JUDGING ON THAT EVERYBODY HAS THEIR OPINION.

BUT I THINK THERE ARE GOING TO BE THINGS THAT HOPEFULLY THEY CAN FIND AGREEMENT ON.

I THINK THE CHILDCARE IS SOMETHING THAT WE HEAR ACROSS THE AISLE OF SOMETHING THAT NEEDS TO BE.

>> Renee: HE HAS THAT TETHERED TO UNIVERSAL PRE-K. >> WHICH I THINK WILL RUN INTO PROBLEMS.

THE 11% RAISES IS SOMETHING WE'VE KNOWN HE WAS GOING TO PUSH.

I WOULD BE REMISS IF I DIDN'T POINT OUT THERE WAS HISTORIC FUNDING FOR EDUCATION PRESENTED AND PROPOSED AND PASSED BY THE 2022 GENERAL ASSEMBLY WHICH INCLUDED THE ABILITY FOR LOCAL SCHOOL DISTRICTS TO MAKE THOSE RAISES.

AND 95% OF SCHOOL DISTRICTS PROVIDED SOME TYPE OF RAISES FOR TEACHERS WITH THAT FUNDING.

>> Renee: THIS APPROACH, THIS WOULD ALLOCATE TO SCHOOL DISTRICTS WITHIN THE STATE BUDGET THEY ARE NOT ALLOCATED TO SEEK FUNDING FORMULA AND THIS IS INTERESTING THIS IS IMPORTANT HERE Mr. BAILEY.

>> WHAT HE IS DOING, I THINK, IS PROVIDING THE MONEY THAT DISTRICTS NEED FOR THE 11% RAISE IT IS NOT AN UNFUNDED MANDATE.

IT'S BEING PROVIDED TO THEM.

>> Renee: AND IT IS A GUARANTEE?

>> IT'S EQUAL TO THE AMOUNT THAT THEY WOULD NEED FOR THAT RAISE.

AND I BELIEVE THERE'S SEEK MONEY AN INCREASE IN THE SEEK BASE AS WELL.

AND ANOTHER IMPORTANT PART IS THE FULLY FUNDING OF TRANSPORTATION.

WHICH WOULD BE ON TOP OF THE 11% RAISE FOR BUS DRIVERS WOULD BE FULLY FUNDING TRANSPORTATION WHICH WE HAVE NOT DONE RECORD FUNDING WE HAVE NOT FULLY FUNDED TRANSPORTATION SINCE 2004.

SEEK FUND SOMETHING ABOUT 34% BELOW 2008 LEVELS NOW.

ONCE YOU TAKE GLATION INTO ACCOUNT.

INFLATION INTO ACCOUNT.

FRIDAY THE DEPARTMENT OF EDUCATION PUT OUT THE DATA ON TEACHER PAY AND TEACHERS ARE MAKING ON AVERAGE 14% LESS THAN THEY WERE BEFORE THE GREAT RECESSION IN KENTUCKY.

14%.

SO THE 11% IS MODEST IN A LOT OF WAYS.

BUT IT COMBINED WITH THE OTHER THINGS IN HERE, I THINK WOULD BE A PROBABLY THE MOST SIGNIFICANT REINVESTMENT IN EDUCATION WE'VE HAD SINCE THE KENTUCKY EDUCATION REFORM ACT IN RESPONSE TO A COURT RULING.

BUT WE HAVE THE MONEY TO DO THAT.

WE HAVE BILLIONS THAT ARE AGAIN ARE BEING STOCKPILED.

BILLIONS MORE WILL BE ADDED OVER THE NEXT TWO YEARS IF WE DON'T FINALLY REINVEST IN THESE THINGS AND IT'S PASTIME.

THE BUSES ARE A GREAT EXAMPLE HOW THE BASIC SYSTEMS ARE NOT GETTING NEAR TO A BREAKING POINT.

WE HAVE TO PUT MONEY INTO THEM.

>> Renee: I HAVE TO ASK YOU A QUESTION ABOUT THE PROCESS THAT THE FACT THAT THE GOVERNOR DECIDED TO DO THIS A WEEK AFTER HE WAS INAUGURATED.

THE SESSION HAS NOT BEGUN.

THE KENTUCKY GENERAL ASSEMBLY HAS NOT CONVENED THIS IS UNPRECEDENTED TO DO THIS NOT BEFORE A JOINT SESSION OF THE HOUSE AND SENATE DURING A LEGISLATIVE SESSION.

>> IT IS.

AND I HAVE TO KIND OF WONDER, YOU MISS THAT IN-PERSON PRESENTATION AND THAT IMMEDIATE REACTION FROM LEGISLATORS THAT BOTH YOU CAN INTERVIEW PEOPLE RIGHT AFTER THE FACT AND GET REALTIME INTERVIEWS.

SO I DO MISS THAT.

HOPEFULLY HE WILL BE WITH US FOR A STATE OF THE COMMONWEALTH IN FROINT OF A JOINT SESSION.

BUT WE KNEW THAT THE HOUSE WAS GOING TO PRESENT THEIR BUDGET EARLY AGAIN THEY HAVE BEEN WORKING ALL SUMMER LONG.

IT IS ABOUT READY TO ROLL.

AND THE HOUSE SEES NO REASON TO HOLD BACK AND DELAY THE PROCESS OF SEEING THE BUDGET THIS WAS THE GOVERNOR'S OPPORTUNITY TO GET HIS PROPOSAL OUT THERE TO HOPEFULLY MAYBE HAVE THINGS INCLUDED.

I WILL SAY THIS.

>> Renee: THAT IS WHAT HE SAID AS WELL.

>> IT'S GREAT TO HAVE THE MOST IMPORTANT POLICY DOCUMENT THAT THE GENERAL ASSEMBLY CONSIDERS EVERY TWO YEARS OUT EARLY.

THE MORE TIME FOR PEOPLE TO LOOK AT IT, FOR STAKEHOLDERS TO ENGAGE, WE TALK ABOUT TRANSPARENCY IN GOVERNMENT A LOT.

THIS IS IT.

THE GOVERNOR NOW HAS LAID OUT ON THE TABLE EXACTLY HIS WISH LIST AND WHAT HIS PRIORITIES ARE GOING TO BE NOW THE FOCUS WILL TURN TO WHAT THE HOUSE'S PRIORITY ALSO LOOK LIKE AND THEN THE SENATE.

AND AT THE END OF THE DAY, THE BUDGET THAT BECOMES LAW IS THAT BUDGET THAT IS PASSED BY THE GENERAL ASSEMBLY.

SO WE WILL BE LOOKING FORWARD TO SEE HOW THIS MOLDS ITSELF AS IT GOES ALONG.

>> Renee: FINAL COMMENT ON THAT SHERMAN BROWN?

>> NO.

I AGREE WITH AMY.

THAT HAVING ALL THE INFORMATION OUT EARLY IS HELPFUL.

IT'S HELPFUL FOR A LOT OF WAYS.

ALL THE INFORMATION THAT YOU CAN GET.

I AM HOPEFUL THAT WE TALKED A LITTLE BIT ABOUT THE RELATIONSHIP BETWEEN THE LEGISLATURE AND THE GOVERNOR, I THINK A LOT OF THAT GETS DISCUSSED OF THEY ARE NOT TALKING TO ME, AND IT'S BOTH SIDES SAYING THIS.

I THINK THAT THIS IS THAT OPPORTUNITY.

THE INFORMATION IS OUT THERE.

WE'VE THE INTERIM COMMITTEES HAVE BEEN TALKING TO THE EXECUTIVE BRANCH.

YOU'VE HAD THE SECRETARIES IN WORKING TOGETHER.

WE'RE SEEING IT WITH THE JUVENILE JUSTICE PROBABLY ONE OF THE BIGGEST WE HAVE A LOT OF PROBLEMS BUT ONE OF THE PROBLEMS WE'VE GOT RIGHT NOW THAT REALLY NEEDS ADDRESSING AND YOU ARE SEEING A COOPERATION AND TRYING TO FIGURE OUT WHERE THAT IS.

IT COULD HAVE BEEN USED IN CAMPAIGN STUFF AND COULD HAVE BEEN A LOT OF THINGS THAT DIDN'T HAPPEN ON EITHER SIDE.

SO, NO, I'M EXCITED FOR THAT.

AND GOES BACK TO JUST THE EDUCATION PIECES LET SOMEBODY ELSE JUMP?

>> I HAVE ONE LAST PIECE I WOULD BE REMISS IF WE DID NOT SEND WELL WISHES TO BLED DOUGH AND LIEUTENANT GOVERNOR JACQUELINE COLEMAN.

>> Renee: THAT WAS MY LAST REMARKS WE REPORTED TODAY, SENATOR AMANDA MAYS BLEDSOE HAD AN ACCIDENT WITH HER FAMILY HORSE AND SHE IS RECOVERING AND OUR THOUGHTS AND WELL WISHES GO TO LIEUTENANT GOVERNOR JACQUELINE COLEMAN WHO HAD A DOUBLE MASTECTOMY TODAY THOSE WHOI WOMEN ARE IN OUR THROATS AND PRAY -- THOUGHTS AND PRAYERS THAT WILL DO IT FOR US FOR THE YEAR FOR KENTUCKY TONIGHT AND I WILL BE BACK WITH YOU JANUARY WHATEVER SAY, SECOND FOR THE GENERAL ASSEMBLY.

JANUARY 8TH WE'LL DISCUSS THE START OF THE KENTUCKY GENERAL ASSEMBLY AND ALL THAT HAS HAPPENED.

HAPPY NEW YEAR.

MERRY CHRISTMAS.

HAPPY HOLIDAYS.

TAKE GOOD CARE.