BINGE GOOD EVENING.

I'M BILL GOODMAN.

WELCOME TO KET'S STATEWIDE COVERAGE OF GOVERNOR MATT BENCH'S FIRST INAUGURAL STATE OF COMMONWEALTH BUDGET ADDRESS.

I'M HERE WITH AL CROSS WHO WILL GET A PROPER INTRODUCTION IN JUST A MOMENT.

YOU SEE PICTURES OF THE HOUSE WHERE MY COLLEAGUE RENEE SHAW IS.

RENEE WILL BE INTRODUCTION INTERVIEWING SPEAKER GREG BOAST HOUSE AND SENATOR ROBERT STIVERS OF THE SENATE FOLLOWING GOVERNOR MATT BEVIN'S SPEECH.

AL CROSS IS OF THE, COMMUNITY ISSUES AT THE UNIVERSITY OF KENTUCKY, LOUISVILLE JOURNAL COLUMNIST AND A KET ANALYST.

AL, APPRECIATE YOU BEING HERE TONIGHT.

LET'S TALK ABOUT WHAT SORT OF NATURE THIS SPEECH MIGHT TAKE ON AS IT BEGINS.

I GUESS IT'S AN OVERUSED PHRASE THAT WEAVE ALL USED IN THE LAST FEW DAYS, FEW WEEKS, IT'S MUCH ANTICIPATED.

>> IT'S MUCH ANTICIPATED AND THERE'S SOME FEAR AND TEPID RECOVERY DATION, TOO, BECAUSE I THINK THE GOVERNOR HAS MADE CLEAR THAT THERE ARE GOING TO BE ACROSS THE BOARD CUTS OR AT LEAST NEARLY ACROSS THE BOARD, AND THAT'S BEING CUN IN ORDER TO SHORE UP THE STATE PENSION SYSTEMS.

THE HOUSE DEVILS WOULD LIKE TO BORROW SOME MONEY TO DO THAT AND TAKE -- THE HOUSE DEMOCRATS WOULD LIKE TO DO THAT AND TAKE ADVANTAGE OF LOW INTEREST RATES AND GOVERNOR BENCH IS NOT WRIGGLE ON TAKE THE GAME.

HE WANTS TO TACKLE THE PROBLEM, AND THE ONLY WAY YOU DO THAT IS BY RAISING TAXES OR CUTTING SPENDING.

AND HE AIMS TO CUT SPENDING IN A BIG WAY.

>> UNDER OTHER ADMINISTRATIONS THIS WOULD NORMALLY BE A SECOND ADDRESS TO JOINT SESSION OF THE GENERAL ASSEMBLY.

GOVERNOR BEVIN CHOSE NOT TO DELIVER A STATE OF THE COMMONWEALTH ADDRESS AT THE BEGINNING OF JANUARY.

THIS IS BEING BILLED AS A STATE OFABLE COMMONWEALTH BUDGET ADDRESS.

DO YOU REMEMBER OR RECALL, I THINK WE CAN SAFELY SAY IN THE EIGHT YEARS OF THE BESHEAR ADMINISTRATION I DON'T REMEMBER A TIME WHEN THERE WAS ONLY ONE ADDRESS.

>> I DON'T.

I THINK GOVERNOR PATTON MAY HAVE DONE THIS.

I THINK WHAT'S IMPORTANT ABOUT THIS ADDRESS IS THAT THE GOVERNOR IS PUTTING ALL HIS MARBLES INTO ONE BUCKET.

I'M NOT SURE I GOT THE METAPHOR RIGHT, BUT A BUDGET IS YOUR BASIC POLICY DOCUMENT.

IT'S THE NUTS AND BOLTS OF HOW YOU WANT TO GOVERN.

A STATE OF THE COMMONWEALTH SPEECH IS MORE OF A VISION DOCUMENT.

SO HERE WE'VE GOT TO VISION STUFF AND WE'VE GOT THE NUTS AND BOLTS.

IT'S ALL IN YOU WILL ONE BIG PACKAGE, ANDY MEN OF HAS NEVER GIVEN A MORE IMPORTANT TEACH.

MATT BENCH HAS NEVER GIVEN A MORE IMPORTANT SPEECH.

>> WHO IS GOING TO BE THE AUDIENCE FOR HIM TONIGHT?

WHO IS GOING TO BE REALLY LISTENING TO THIS SPEECH?

WILL IT BE AGENCIES, STATE WORKERS?

WHAT KIND OF MESSAGE DOES HE NEED TO DELIVER TO THE PEOPLE OF COMMONWEALTH?

>> IT WILL CERTAINLY BE STATE AGENCIES AND STATE WORKERS AND PEOPLE WHO HAVE AN INTEREST IN THOSE.

THERE ARE TENS OF THOUSANDS OF STAKEHOLDERS, HUNDREDS OF THOUSANDS OF STAKEHOLDERS, MILLIONS REALLY OVER THE STATE, AND WITH THE PRELIMINARY REPORTS THAT CERTAIN AGENCIES MIGHT BE CUT OR ELIMINATED EVEN, THAT WAS AN INDICATION THAT THESE CUTS ARE GOING TO BE HISTORIC, AND WHEN PEOPLE HEAR THAT KIND OF THING, THEY'RE MORE LIKELY TO WATCH AND LISTEN.

I THINK THERE WILL PROBABLY BE A GREATER AUDIENCE FOR THIS SPEECH THAN ANY GUBERNATORIAL SPEECH IN A LONG TIME.

>> SO WITHOUT A DOUBT, THIS IS A VERY IMPORTANT STATEWIDE SPEECH FOR GOVERNOR MATT BEVIN.

>> IT'S THE BIG KAHUNA.

>> IT'S NO SECRET THAT HE HAS TALKED, AS WE HAVE DISCUSSED SINCE HIS ELECTION IN NOVEMBER, IN VARIOUS BUT NOT TOO FREQUENTLY TALKED ABOUT REDUCTIONS IN STATE SPENDING.

IN FACT, OUR FRIEND TOM LOFTUS OF THE COURIER-JOURNAL PUT TOGETHER A LITTLE POTPOURRI OF SOME OF THE QUOTES AND STATEMENTS THAT HE HAS MADE GOING ON REDUCTIONS, GOING BACK TO DECEMBER 1st WHEN HE SAID IN A NEWS RELEASE FROM THE BEVIN TRANSITION TEAM "WE WILL MAKE THOSE HARD DECISIONS AND WE WILL SAVE OUR PENSION PLANS FOR THOSE WHO HAVE EARNED THEM," HE ALSO TALKED ABOUT STREAMLINING GOVERNMENT IN A SPEECH, INAUGURAL SPEECH ON DECEMBER 8th.

AND THERE ARE SOME OTHER -- HERE'S ONE -- THE BUDGET WILL NOT BE FULL OF EVERYTHING THAT PEOPLE WOULD LIKE TO SEE BUT IT WILL BE REALISTIC AND HELP US TO GET OUR HOUSE IN ORDER.

SO ALL OF THOSE THINGS WE JUST WILL HEAR, I THINK WITH MAYBE A FEW MORE SPECIFICS.

IS THAT RIGHT?

>> WE'RE REALLY UNCERTAIN HOW MUCH DETAIL HE'S GOING TO GIVE US BECAUSE THERE HAVE BEEN CONFLICTING REPORTS AS TO THE TEXT.

WE KNOW HE DOESN'T LIKE SPEAKING FROM TEXT.

HE PREFERS TALKING POINTS AS HE DID IN HIS INAUGURAL ADDRESS.

WE HEARD TODAY THAT THERE WOULD BE A SPEECH, BUT WHETHER OR NOT HE'S REALLY GOING TO FOLLOW THAT IS UNCLEAR.

AND IN AN UNUSUAL MOVE, TODAY IN THE BUDGET BRIEFING FOR JOURNALISTS, WHO HAD TO AGREE NOT TO DISCUSS ANYTHING MENTIONED IN THE BRIEFING, THEY DIDN'T HAND OUT THE BUDGET.

THEY ONLY HANDED OUT AN EXECUTIVE SUMMARY.

AND, OF COURSE, THEY HIGHLIGHTED THINGS THAT THEY'RE GOING TO TROY TO DO FOR PEOPLE -- TRY TO DO FOR PEOPLE, BUT THE REAL NUTS AND BOLTS OF THAT BUDGET ARE IN THE DOCUMENT THAT THEY'RE PUTTINGING YO PROBABLY WHEN HE TAKES THE LEC TURN IN THE HOUSE CHAMBER.

>> AL WITH, AS PEOPLE AT HOME AND ONLINE ARE WATCHING SENATE PRESIDENT ROBERT STIVERS ENTER THE HALL, HE'S A VERY IMPORTANT FELLOW.

A VERY IMPORTANT FELLOW INTRODUCED BY ANOTHER VERY IMPORTANT FELLOW, AND THAT'S SPEAKER GREG STUMBO.

YOU CAN SEE SOME OF THE CONSTITUTIONAL OFFICERS.

IN FACT, HE JUST SHOOK HANDS I THINK WITH THE NEW AUDITOR HARMON, AND HE'S GOING TO GO UP TO THE -- >> THE SENATE BEING THE UPPER CHAMBER, HAS ITS PRESIDING OFFICER DO THE JOB WHEN THEY HAVE A EGYPT SESSION.

>> THEY'RE IN THE HOUSE CHAMBER.

WE WANT TO TELL EVERYBODY THAT WE ARE GOING TO PAUSE FOR THE PLEDGE OF ALLEGIANCE AND FOR THE PRAYER WHICH IS A PART OF THE CEREMONY THAT COMES UP IN JUST A MOMENT.

WE'LL WONT TO TALK UNTIL GOVERNOR BENCH DOES MAKE HIS ENTRANCE AND BEGINS HIS SPEECH IN JUST A FEW MINUTES.

ONE OF THE FEW OPPORTUNITIES THAT ANY REPORTER HAS HAD TO TALK WITH GOVERNORY BEVIN -- LET'S SEE.

ARE WE GOING TO PAUSE HERE FOR THE PRAYER.

>> WE INVITE YOU TO GUIDE ALL THAT IS DONE IN THIS PLACE.

THANK YOU, FATHER, FOR YOUR GOODNESS TO US, FOR YOUR BLESSINGS WHICH ARE MORE THAN WE CAN NAME.

FATHER, WE'VE BEEN REMINDED IN THESE PAST DAYS THAT WE HAVE SO MANY PEOPLE FOR WHICH TO BE GRATEFUL, THOSE WHO HAVE SERVED US IN THE WEATHER AT GREAT SACRIFICE.

AND TONIGHT WE'RE REMINDED, OH, LORD, THAT THESE IN THIS HALL SERVE THE PEOPLE OF YOUR STATE.

AND, LORD, WE ASK THAT YOU WOULD REMIND THEM OF YOUR PRESENCE AND GUIDE THEM IN ALL THEY DO.

YOU HAVE BEEN, LORD, GRACIOUS TO US.

REMIND US ALL THAT WITH THE GRACE, WITH THE BLESSINGS, WITH THE GIFTS COMES RESPONSIBILITY.

AND YOU GIVE ALL THAT WE HAVE THAT WE MIGHT HONOR YOU AND SERVE OUR FELLOW MAN.

AND WE ASK THAT YOU WOULD GRANT WISDOM TO KNOW WHAT IS RIGHT AND COURAGE TO DO WHAT IS RIGHT, FOR IT IS NOT ALWAYS EASY, BUT IT IS YOUR WILL.

IN THE WORDS OF THE PROPHET, LET JUSTICE ROLL DOWN LIKE WATERS, AND RIGHTEOUSNESS LIKE AN EVER FLOWING STREAM.

I PRAY THIS IN THE NAME OF JESUS CHRIST, LORD AND SAVIOR.

AMEN.

>> AMEN.

I PLEDGE ALLEGIANCE TO THE FLAG THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

>> GENTLEMAN FROM ELLIOTT.

>> MR.

PRESIDENT, I HAVE TWO MOTIONS, SIR.

ONE THAT WE MOVE THAT THE HOUSE RESOLVE INTO JOINT SESSION, AND ALSO, MR.

PRESIDENT, I MOVE THAT THE ROLL CALL BE DISPENSED WITH.

>> WITHOUT OBJECTION, SO ORDERED.

>> CHAIR RECOGNIZES THE CHIEF DOORKEEPER OF THE HOUSE.

>> MR.

PRESIDENT, THE GOVERNOR OF KENTUCKY!

[ APPLAUSE ] >> I DON'T KNOW.

WE REALLY HAVEN'T GOTTEN TO KNOW MATT BEVIN, MATTHEW GRISWOLD BENCH AS WELL AS WEAVE MOST KENTUCKY GOVERNORS BECAUSE HE WAS A SURPRISE WINNER OF THE REPUBLICAN PRIMARY BY ONLY 83 VOTES, AND THEN HE HAD KIND OF A TESTY RELATIONSHIP WITH SOME JOURNALISTS, INCLUDING ME, AND WE REALLY HAVEN'T GOTTEN A CHANCE TO UNDERSTAND HIM.

ONE WOULD HAVE TO THINK THIS IS A HIGH POINT OF HIS LIFE.

HE HAD THE AUDACITY TO CHALLENGE MITCH MOLINA -- MITCH MOM FOR THE U.S.

SENATE IN 2015, THE REPUBLICAN PRIMARY, AND THEN REALLY GOT THE PUBLIC SERVICE BUG, DECIDED THAT HE WAS THE MAN TO BE GOVERNOR AND HE WENT OUT AND MADE HIMSELF GOVERNOR WITH THE HELP OF A FEW GOOD BREAKS.

>> SHAKING A LOT OF HANDS, YOU'LL NOTICE THAT HIS LEFT HAND, HE'S NOT AUCTION.

HE HAS A CAST ON THAT -- NOT AUCTION, HE HAS A CAST ON THAT HAND FROM AN ACCIDENT THAT HAPPENED IN THE FALL RIGHT AROUND THANKSGIVING BUT THE CAST WAS PUT ON LATER BECAUSE BECAUSE HE DIDN'T THINK HE HAD BROKEN IT.

HE WAS PLAYING WITH HIS CHILDREN OUT IN THE YARD AND BROKE HIS HAND.

LADIES AND GENTLEMEN, FOR HIS FIRST STATE OF THE COMMONWEALTH BUDGET ADDRESS, WE ARE COMING UP ON A VERY ANTICIPATED SPEECH BY GOVERNOR MATT BEVIN.

HE WILL BE, AS YOU SAW, HIS WIFE GLENNA DID COME TO THE CHAMBER TONIGHT WITH HIM.

THESE ARE A NUMBER OF THE OTHER I GUESS CARETAKERS, IF YOU WILL.

THESE ARE THE ONES APPOINTED BY THE SENATE AND THE HOUSE TO ACCOMPANY HIM INTO HIS POSITION THERE IN FRONT OF THE HOUSE.

GOVERNOR MATT BEVIN.

>> I'M REMINDED OF IT EVEN TONIGHT TO BE AUTOMOBILE TO OPEN IN PRAYER, TO PRAY IN THE NAME OF JESUS CHRIST, TO BE ABLE TO PLEDGE ALLEGIANCE TO THE GREATEST NATION ON THE EARTH.

HOW FORTUNATE WE ARE TO BE KENTUCKIANS, TO BE AMERICANS.

HOW TRULY BLESSED WE ARE TO LIVE LIVE AT THIS TIME IN THIS NATION.

I'M ALSO STRUCK -- [ APPLAUSE ] I'M STRUCK AS WELL BY THE FACT THAT WE'RE HERE IN THE PEOPLE'S HOUSE.

IT'S AN APPROPRIATE PLACE TO HAVE THIS GATHERING, AND I REALLY, I WOULD BE REMISS IF I DIDN'T SAY THANK YOU TO ALL THOSE MEMBERS, OUR CONSTITUTIONAL OFFICERS THAT ARE HERE, OUR LIEUTENANT GOVERNOR, MY BEAUTIFUL WIFE, OUR SUPREME COURT JUSTICES, LEGISLATORS ON BOTH SIDES OF THE AISLE AND IN BOTH CHAMBERS, THANK YOU ALL FOR BEING HERE.

THANK YOU TO ALL OF OUR GUESTS THAT ARE HERE THIS EVENING.

MANY OF YOU ARE HERES'Y GUESTS OF DIFFERENT INDIVIDUALS.

A NUMBER YOU OF I MAY SPEAK TO EVEN TONIGHT AND READ SOME OF THE WORDS THAT YOU HAVE SHARED, AND SO I THANK EACH AND ALL OF YOU FOR BEING HERE TONIGHT, FOR BOWING A PART OF THIS INCREDIBLY IMPORTANT OCCASION AS WE CELEBRATE THE YEAR AND THE BUDGETING SESSION AND THE WORK TO BE DONE HERE IN THE NEXT COUPLE OF MONTHS.

I ALSO, AS I LOOK AROUND THIS ROOM, AM STRUCK BY THE FACT THAT WE HAVE JUST COME THROUGH SOMETHING THAT TOUCHED A WHOLE LOT OF US, AND AMAZINGLY AFTER A COUPLE OF FAIRLY WARM DAYS, TODAY NOTWITHSTANDING, MUCH OF ITS FORGOTTEN ALREADY FOR MANY BUT NOT FOR ALL, AND A WANT TO GIVE AN ESPECIALLY THANKS AND APPRECIATION TO THE MEN AND WOMEN WHO BUSTED THEIR TAILS OVER THE LAST DAYS OUT ON THE HIGHWAYS, OUT ON THE ROADS, MAKING THIS STATE AN EXAMPLE OF HOW TO HANDLE STORMS LIKE THIS WELL.

PLEASE JOIN ME IN A ROUND OF APPLAUSE FOR OUR TRANSPORTATION WORKERS.

[ APPLAUSE ] SOME OF YOU -- SOME OF YOU THAT ARE BEING APPLAUDED ARE HERE TONIGHT, MANY OF YOU MAY BE AT HOME WATCHING, SOME OF YOU MAY WATCH THIS AT A LATER POINT IN TIME, SOME OF YOU MAY BE GETTING SOME WELL OF DESERVED REST BUT THANK YOU, FROM THE BOTTOM OF MY HEART AND BEHALF OF ALL OF KENTUCKY, THANK YOU FOR WHAT YOU DID TO KEEP US SAFE OUT THERE ON THE ROADWAYS.

I WANT TO ASK ALSO AS WE MOVE FORWARD NOT ONLY TONIGHT IN THE COURSE OF THE NEXT MINUTES AHEAD BUT ALSO IN THE MONTHS AND YEARS TO DO AHEAD THAT WE HAVE OPEN AND FRANK DIALOGUE.

I COME TO YOU WITH A BLANK SHEET OF PAPER.

THERE'S A LOT OF WORK TO BE DONE HERE, AND WE'RE GOING TO GET IT DONE.

WE'RE GOING TO GET IT DONE TOGETHER AND IN A BIPARTISAN WAY.

I'M BLESSED TO HAVE BEHIND ME TWO INDIVIDUALS, THE I DON'T KNOW -- THERE HE IS -- WHO HAVE BEEN TO THIS RODEO A FEW TIMES.

PRESIDENT STIVERS, SPEAKER STUMBO REPRESENTING BOTH SIDES OF THE AISLE, REPRESENTING DECADES AND DECADES OF EXPERIENCE IN THE POLITICAL FRONT IN PARTICULAR.

THERE'S NO DOUBT IN MY MIND THAT THE THINGS WE'RE GOING TO TALK ABOUT, THE BUDGET ITSELF IS GOING TO BE ABLE TO BE WORKED OUT ON BEHALF OF THE PEOPLE OF KENTUCKY BY THESE TWO INDIVIDUALS AND EACH OF YOU THAT ARE GATHERED HERE IN THIS ROOM.

WE'RE GOING TO GET IT DONE.

WE NEED TO GET IT DONE.

IT HAS TO HAPPEN.

AND I LOOK FORWARD TO DOING IT WITH YOU.

I DO NEED YOUR FEEDBACK, I REALLY DO.

I WANT YOUR HONEST DO I HOOG AS WE MOVE FORWARD.

I WAS STRUCK BY SOMETHING THIS SUMMER ACTUALLY I NOTICED IT FOR THE FIRST TIME AND WENT BACK AND SAW IT AGAIN.

WE'RE GOING TO REMEDY IT AT SOME POINT YOU THE IT WAS AN ANALOGY THAT I THOUGHT WAS SOMEWHAT APROPOS.

I WENT TO THE OVERLOOK WHERE YOU CAN LOOK OUT OVER THE CAPITAL.

YOU CAN PULL IN OFF THE ROAD.

THERE'S A LITTLE PLACE WHERE YOU CAN PULL IN.

S WHAT NOT OUR BEST FOOT FORWARD.

THE WALL, IT'S A LIMESTONE WALL IN FRONT OF THAT OVERLOOK IS CRUMBLING, A LOT OF THE MORTAR HAS COME OUT, SOME OF THE STONES ARE MISSING, ONE OF GARBAGE CANS DIDN'T HAVE A TOP ON IT, IT WAS OPEN TO THE ELEMENTS AND KIND OF BLOWING IN THE WIND AND THE OTHER ONE WASP KIND OF BROKEN FOOTED AND LEANING TO THE SIDE.

IT WASN'T OUR SHINEST MOMENT FORWARD.

IN THE SUMMER IS QUDSU AND OTHER VINES HAD OBSCURED A BIT OF VIEW.

I THOUGHT SADLY IT'S A LITTLE ANALYST GUST WHO WHAT WE FIND OURSELVES FACED WITH FINANCIAL IN THIS STATE.

BUT WE'RE BETTER THAN THAT.

THE CAPABILITY TO END CONTRACT UP, SPRUCE UP, WEED, TRIM BACK, REPLACE MORTAR, THE CAPE A BELT TO DO ALL THAT ON A FINANCIAL FRONT IS IMPERATIVE.

WE DID NOT COME TO THIS IN THIS ADMINISTRATION WITH THE MOST STABLE OF FOOTING.

WE DIDN'T COME TO THIS WITH THE ABILITY TO JUST LAUNCH OFF INTO SPENDING ON ALL THE THINGS WE'D LIKE TO.

WE'VE GOT FINANCIAL TROUBLES IN THIS STATE.

WE'LL TALK ABOUT THAT.

HOW WE GOT HERE, THOUGH, REALLY WE CAN TALK ABOUT IT IF WE'D LIKE, REALLY ISN'T GERMANE TO THE REALITY THAT WE'RE HERE, AND I HAVE ALWAYS BEEN A PERSON THAT WOULD RATHER SPEND MY TIME LOOKING OUT THE WINDSHIELD THAN LOOKING IN THE REAR VIEW MIRROR, AND FRANKLY I WOULD CHALLENGE OFF YOU TO DO THE VERY SING SAME THING.

WE OVER IT TO EACH OTHER TO HAVE EACH OTHER'S BACK AND COME THROUGH JUST AS WE DID THIS STORM.

WE CAN REPAIR THESE WALLS.

WEIR WE CAN SHORE UP OUR FINANCIAL TOWNS, AND WE'LL TALK ABOUT THAT IN JUST A MOMENT.

THIS IS A CHALLENGE TO YOU.

THIS IS WHAT WE NEED TODAY TO DO.

WE NEED TO SHORE UP OUR FINANCIAL FOUNDATION.

I DO HAVE A VISION FOR THIS STATE.

I WANT OUR STATE TO BE DUSTED OFF, TO BE CLEARED UP.

I WANTED US TO BE VIEWED BY PEOPLE WHO COME FOR THE FIRST TIME AS A SHINING JEWEL.

WE'VE TALKED IN THE PAST ABOUT HOW FORTUNATE WE ARE FOR THING OTHER STATES COULDN'T BUY AT ANY PRICE, OUR RIVER WAYS AND ROADWAYS, OUR CENTRAL LOCATION.

FOUR SEASONS, ALTHOUGH WE HEFT IT A LITTLE BIT LAST WEEK, NONE TYPICALLY TOO EXTREME, EASILY RECOVERED FROM RELATIVE TO OTHER PLACES, AN AMAZING ABUNDANCE OF COAL AND TIMBER AND OTHER NATURAL RESOURCES, ENERGY PRICES THAT ARE STILL THE ENVY OF MANY STATES AROUND US, AND EVEN MORE ON THE COAST THEMSELVES.

WEAVE GOT LOGISTICAL HUBS THAT WOULD BE HARD TO RECREATE AT ANY PRICE AND ARE HERE FOR SOME OF THE REASONS WE'VE ALREADY MENTIONED.

ALL THESE ARE THINKING WE CAN TAKE ADVANTAGE OF.

WE NEED TO TRIM UP.

WE NEED TO REPLACE THE MORTAR.

WE NEED TO DUST OFF.

WE NEED TO HOLD OURSELVES FORWARD.

BUT WE HAVE THE ABILITY TO UPGRADE, TO MOVE THIS STATE FORWARD, TO MAKE THIS HOME THE DREAM HOME THAT WE WOULD WANT IT TO BE.

IT IS OUR HOME.

WE'RE HERE ON PURPOSE.

BUT THIS COULD BE COULD BECOME THE HOME THAT EVERYONE IN AMERICA WOULD WANT TO LIVE IN.

THAT IS MY DREAM.

THAT'S MY VISION FOR THIS STATE.

IT'S WHAT I WANT FOR EACH AND EVERY ONE OF US, AND IT'S WHAT I'M GOING TO NEED YOUR HELP IN ORDER TO ACCOMPLISH.

WE HAVE THIS ABILITY TO TRULY BE THE MANUFACTURING HUB OF AMERICA.

FOUR YEARS AND 40 YEARS AND WEREN'T 40 YEARS FROM NOW WHAT I WANT PEOPLE TO THINK ABOUT WHEN THEY THINK ABOUT MAKING ANYTHING IN AMERICA, I WANT THEM TO THINK ABOUT COMING TO KENTUCKY FIRST.

I WANT PEOPLE TO SAY, KENTUCKY, THAT'S WHERE THEY MAKE THINGS.

WHETHER IT'S BOURBON, WHETHER IT'S CARS, WHETHER IT'S AVIATION PARTS, WHATEVER THE CASE MIGHT BE.

THIS IS WHERE WE MAKE THINGS.

WE'RE A WELL POSITIONED AS ANYBODY TO DO IT.

THE WAY IN WHICH WE'RE GOING TO GET THESE THINGS DONE TOGETHER IS AS A FAMILY.

AND I TELL YOU THERE'S GOING TO BE DISAGREEMENTS BETWEEN THESE CHAMBERS.

THERE'S AGAIN DISAGREEMENTS IN THIS VERY CHAMBER ITSELF.

THERE WILL BE AGAIN.

BUT I ASK YOU LET'S BE A FAMILY.

LET'S -- TEAMS DISAGREE.

FAMILIES SQUABBLE.

FAMILIES GOSSIP.

FAMILIES FAMILIES SPREAD RUMORS.

SOME OF THOSE HAVE BEEN GOING AROUND IN RECENT DAYS I HAVE SEEN.

I DON'T KNOW IF ANY OF YOU HAVE NOTICED THAT.

THAT HAPPENS.

IT'S GOING TO KEEP HAPPENING.

LET US NOT TAKE IT PERSONALLY.

LET'S MOVE PAST IT.

WE HAVE THE ABILITY TO TAKE EACH OTHER'S BACK.

I CHALLENGE TO YOU HAVE EACH OTHER'S BACK.

MENTION THIS HAD DURING THE INAUGURALS INAUGURATION.

TREAT EACH OTHER THE WAY YOU WANT TO BE TREATED.

WE HAVE PEOPLE WHO IS IT EVERY DAY ON THE BENCH AND HAVE TO MAKE DECISIONS THAT AFFECT PEOPLE'S LIVES BUT EACH AND EVERY ONE OF US DO THE SAME THINGS PEEP WAI WE DO IT IN OUR HOMES, OUR CHURCHES, NEIGHBORHOODS, WE DO IT IN OUR BUSINESSES.

YOU DO IT IN THESE CHAMBERS.

TREAT EACH OTHER WITH RESPECT.

TREAT EACH OTHER WITH DIGNITY.

TREAT EACH OTHER THE WAY YOU WHAT THE TO BE TREATED.

WE CAN MOVE FORWARD A AS A FAMILY IF WE EACH OTHER'S BACK BUT WE CANNOT MOVE FORWARD UNLESS WE ADDRESS THE CRIPPLING DEBT THAT FACES THIS STATE, AND THAT'S REALLY THE CRUX OF WHAT WE'RE HERE TO TALK ABOUT TONIGHT.

AS SOME OF YOU KNOW WHO HAVE BEEN HERE A BIT, WE HAVE SORT OF A COMBINATION OF BOTH A STATE THE STATE AND ALSO A BUDGET ADDRESS.

THE PRIMARY FOCUS WILL BE ON THE LATTER, ON THE BUDGET THAT'S BEFORE US.

BUT I TRULY WANT KENTUCKY TO BE THE BEST VERSION OF ITSELF.

THIS IS MY ASPIRATION.

I KNOW IT IS FOR SO MANY OF YOU IN THIS ROOM AS WELL.

NOT ONE PERSON WHO RUNS FOR OFFICE PUTS THEMSELVES THROUGH WHAT IS NEEDED TO BE ELECTED ON EITHER SIDE OF THE AISLE, WHETHER WE AGREE ON EVERY ISSUE OR NOT, THERE'S NOBODY WHO DOES THIS THAT DOES NOT COME THAN THE WASSING TO MAKE E. CAN BETTER.

WE'VE GOT TO TAKE IMMEDIATE ACTION, THOUGH, BECAUSE TO CONTINUE TO IGNORE OUR FINANCIAL PROBLEMS IS NO LONGER AN OPTION.

IT JUST ISN'T.

IN THE BUDGET THAT WE'RE GOING TO TALK ABOUT HERE FOR THE NEXT FEW MINUTES IS INDICATIVE OF THE OF THE THINGS THAT I BELIEVE THAT I ABSOLUTELY KNOW MUST HAPPEN IN ORDER FOR US TO GET OUR FINANCIAL FOUNDATION IN PLACE, TO GET OUR HOUSE IN ORDER.

THIS BUDGET HAS BEEN PREPARED WITH FINANCIAL REALITY IN MIND.

IT'S A SOBER BUDGET.

IT'S ONE THAT IS AUSTERE.

YOU'VE HEARD THAT WORD USED.

BUT IT'S ALSO REALISTIC.

IT'S ONE THAT IS PRAGMATIC.

IT'S ONE THAT TAKES INTO CONSIDERATION THE FACT THAT WHILE THERE ARE CUTS AND WHILE THERE ARE CHANGES THAT ARE GOING TO BE MADE, THAT TO DO THING TOO DRAMATICALLY OR TOO QUICKLY ONLY UPSETS THE APPLE CART AND RUNS THE RISK OF ACCOMPLISHING THE VERY SAME THINGS THAT WE ALL SAY WE WANT.

SO WE'RE GOING TO MOVE SLOWLY.

WE'LL TALK ABOUT THAT AS WE MOVED FORWARD HERE.

THE MOST IMPORTANT THING TO DO IS STOP DIGGING.

WHEN YOU'RE IN FINANCIAL TROUBLE, WHEN YOU'RE IN DEBT YOU STOP DIGGING.

YOU DON'T BORROW MORE MONEY.

THERE WILL BE DISCUSSIONS ABOUT THAT, BUT I'LL TELL ROUTINE I WILL NOT SIGN ANY BILL, I WILL NOT SIGN ANY BUDGET THAT ENCUMBERS FUTURE GENERATIONS WITH DEBT THAT WE REFUSE TO TAKE RESPONSIBILITY FOR TODAY.

WE WILL NOT DO IT.

[ APPLAUSE ] AND I WOULD SAY THIS.

IT'S SAD, AND I APPRECIATE THE APPLAUSE FROM THOSE OF YOU WHO DID, IT SADDENS ME THAT THERE'S NOBODY IN THIS ROOM THAT DOESN'T FEEL THE NEED TO CELEBRATE THE THAT BECAUSE TO STICK IT TO OUR CHILDREN AND GRANDCHILDREN, HOPE THEY STILL LIVE IN THIS STATE, TO PAY OFF RESPONSIBILITIES THAT WE NEED TO ADDRESS TODAY, NOT A GOOD SOLUTION.

WE OWE THEM BETTER THAN THIS.

WE WILL PROPOSE A BUDGET THAT DOES BETTER THAN THIS.

AND I'VE MET WITH LEADERS OF THE HOUSE AND LEADERS OF THE SENATE ON BOTH SIDES THE AISLE.

I'VE MET WITH AM PEOPLE IN CONSTITUENCIES THAT ARE AFFECTED BY THE THINGS I'M GOING TO LIGHT HERE BEFORE YOU SHORTLY.

AND IN MEETING WITH THESE FOLKS, MANY PEOPLE WERE FRANKLY SURPRISED BY HOW PRAGMATIC THIS WAS, AND WE'LL TALK THROUGH SOME OF THESE THINGS MAY IN A MOMENT.

BUN OF THE THINGS I WANT TSAI SA IS WE'RE NO LOCKER GOING TO BUDGET TO ZERO PI APPRECIATE THE FACT THATY WE HAVE DONE THIS.

PEOPLE HAVE BUDGETED TO ZERO BECAUSE IF YOU BALANCE THE BOOKS, MISSION ACCOMPLISHED, YOU CHECK THE BOX, WE DID WHAT WE CAME TO DO.

WE CANNOT PAY OFF DEBT IF YOU CONSTANTLY BUDGET TO ZERO.

WE HAVE TO DO BETTER THAN BUDGETING TO ZERO.

WE HAVE TO NOT ONLY MAY OUR CURRENT BILLS.

WE HAVE TO PAY THE ACCOUNTS BASEBALL THAT HAVE BEEN PILING UP ON US.

THIS HAS TO HAPPEN.

AND WHILE FROM AN OBLIGATION STAND POINT PENSION SIDE,Y WE HAVE MANY MULTIPLES OF OUR ENTIRE ANNUAL REVENUE IN OBLIGATION.

THAT'S NOT A PARTISAN ISSUE.

THESE ARE REPUBLICANS AND THEY'RE DEMOCRATS.

I MEAN, REPUBLICANS AND DEMOCRATS ALIKE ARE AFFECTED BY THIS.

FRANKLY FA MORE DEMOCRATS ARE RETIREES AND CURRENT STATE WORKERS THAN ARE REPUBLICANS, AND THE DECISIONS WE ARE GOING TO MAKE YOU WILL SEE ARE GOING TO BE FOCUSED ON HOW WE SHORE UP OUR PENSION ITSELF, AND I WILL MAKE CLEAR SOMETHING ELSE.

EXPANDED MEDICAID DOES NOT PAY FOR ITSELF.

IS JUST DOESN'T.

LET'S DISPEL THAT MYTH RIGHT NOW.

WE'RE GOING TO HAVE TO MAKE HARD DECISIONS AS IT RELATES TO HOW WE'LL WELL WITH THAT, AND WE'LL TALK ABOUT THAT AS WELL.

THERE'S EIGHT THINGS I WANT TO MENTION AS WE MOVE FORWARD TONIGHT, EIGHT SPECIFIC THINGS OF ALL OF WHICH POINT REALLY TO THE NINTH THING, WHICH IS WHAT WE WANT TO SEE ACCOMPLISHED.

THE FIRST THING THAT WE'RE GOING TO TALK ABOUT IS STRENGTHENING OUR FINANCIAL FOUNDATION.

WE TOUCHED ON THAT A MOMENT AGO.

WE'LL GIVE SPECIFICS AS TO WHAT THAT LOOKS LIKE.

WE'RE GOING TO TALK ABOUT INVESTING IN EDUCATION AND, ON WORKFORCE DEVELOPMENT.

NUMBER THREE, WE'RE GOING TO TALK ABOUT KEEPING OUR COMMITMENT TO OUR PUBLIC SERVANTS, AND THAT'S GOING TO BE SPECIFIC TO THE OBLIGATIONS WEAVE FOR FULFILLING THE PENSION POSSESSIONS THAT WE'VE MADE.

WE'RE BEING GOING TO TALK ABOUT SAFEGUARDING KENTUCKY'S MOST VULNERABLE CITIZENS, AND THAT CERTAINLY AFFECTS MANY OF YOU IN THIS ROOM AND THE THINGS THAT YOU DO DAY IN AND DAY OUT.

WE'RE GOING TO TALK ABOUT PROTECTING THOSE WHO PROTECT US, NOT ONLY THOSE THAT WE SPOKE TO EARLIER ABOUT WHO HAVE BEEN OUT ON THE ROADS ABOUT THE OTHERS VEL AS WELL.

WE'RE GOING TO PROTECT HOSE THOSE WHO PROTECT US IN THIS BUDGET.

WE'RE GOING TO FIGHT SUBSTANCE ABUSE IN THIS BUDGET IN A MATERIAL AND SUBSTANTIVE WAY.

THIS HAS GOT TO HAPPEN, IT REALLY DOES.

[ APPLAUSE ] WE ARE GOING TO OF FINANCIAL NECESSITY, AND BECAUSE IT'S THE RIGHT THING TO DO, WE'RE GOING TO TRANSFORM THE WAY IN WHICH WE DELIVER PUBLICLY ASSISTED HEALTH CARE IN THIS STATE.

IT IS GOING TO BE -- YOU'VE HEARD ME TALK ABOUT IT.

WE'LL TALK ABOUT IT A LITTLE MORE AS WE MOVE FORWARD.

WE'RE GOING TO BUILD AN INFRASTRUCTURE FOR THE FUTURE.

THERE TWO THINGS THAT WE CANNOT SCRIMP ON IF WE WANT TO BE A BETTER VERSION OF OURSELVES, IF WE WANT TO BE THE BEST VERSION OF OURSELVES RELATIVE TO WHERE WE ARE TODAY, RELATIVE TO THE STATES AROUND US, AND RELATIVE TO ALL THOSE THAT ARE COMPETING WITH US, WE MUST INVEST IN EDUCATION AND WE MUST INVEST IN INFRASTRUCTURE.

AND WE'RE GOING TO TALK ABOUT BUILDING AN INFRASTRUCTURE FOR THE FUTURE.

ALL OF THESE EIGHT THINGS ULTIMATELY LEAD TO THE CULMINATION OF THE NINTH THING, AND THAT IS WE'RE SAVING FOR A DOWN PAYMENT FOR KENTUCKY'S FUTURE.

WE HAVE TO PAY FOR THE FUTURE BY SAVING NOW.

YOU DON'T BUY A HOME WITHOUT A DOWN PAYMENT UNLESS YOU'RE MORE FORTUNATE THAN MOST OF US WERE.

MOST OF US HAVE TO SAVE FOR THE THINGS WE WANT.

SO, TOO, IN GOVERNMENT.

AND SO WE ARE GOING TO DO THESE EIGHT THINGS SO THAT THAT NINTH THING THAT WE TALKED ABOUT WILL COME TO FRUITION.

THESE PRIORITIES MEET OUR OBLIGATIONS, THEY MOVE OUR FINANCIAL PLAN FORWARD, AND THEY ENSURE THAT WE WILL BENEFIT ALL KENTUCKIANS.

THE FIRST OF THESE STOW STRENGTHEN OUR FINANCIAL FOUNDATION.

WE WERE FACED WITH, AND AGAIN A WHOLE LITANY OF REASONS DOESN'T MATTER, BASED ON BUDGETING FORECAST THAT WE WERE GIVEN WHEN WE ARRIVED TWO MONTHS AGO, A $500 MILLION SHORTFALL OVER THE BIENNIUM.

THAT DIDN'T EVEN ALLOW FOR MANY OF THE THINGS THAT MANY OF US WANT TO SEE HAPPEN.

AND THAT'S A RESULT OF MANY THINGS, DECLINING REVENUES, ALTHOUGH THEY SEEM TO BE INCREASING ON SOME FRONTS, THEY'RE DECLINING ON OTHERS, BUT FRANKLY WE HAVE LESS TAXES COMING IN, MORE OBLIGATIONS, THE PENSION LIABILITY, THE COST OF PAYING FOR MEDICAID EXPANSION.

THOSE TWO IN PARTICULAR TAKING SO MANY OF THE DOLLARS THAT WE'D LIKE TO A LOT TO OTHER THINGS.

WE ARE GOING TO HAVE TO CUT THE BUDGET.

I THINK MANY OF YOU EXPECTED AS MUCH.

IT'S BEEN RUMORED.

IT'S TRUE.

WE ARE GOING TO DO TOW SO.

WE'RE GOING TO HAVE TO TIGHTEN OUR BELTS.

WE'RE GOING TO ASK NOTHING MORE OF THIS BODY, HOUSE AND SENATE ALIKE, THAN FRANKLY THAT WHICH WE DO IN OUR OWN HOMES, THAT WHICH WE DO IN OUR OWN BUSINESSES, THAT WHICH WE TEACH OUR YOUNG PEOPLE, MANY OF WHOM ARE HERE THIN, WHAT TO DO AND HOW TO DO IT.

YOU LIVE WITHIN YOUR MEANS.

THIS IS WHAT WE'RE GOING TO DO.

WHAT IT LOOKS LIKE -D, AND I'M NOT GOING TO GO INTO GREAT DETAIL ON ALL THE BUDGET ITEMS.

YOU'LL SEE THIS TONIGHT, BUT WE'RE GOING TO TALK SOME SPECIFICS TONIGHT SO BEAR WITH ME AND HOPEFULLY IT WILL PROVIDE SOME INSIGHT INTO WHAT I THINK THE PRIORITIES FOR THIS STATE ARE.

WE'RE GOING TO START THE CUTS IN THIS FISCAL YEAR.

WHAT IS BEING PROPOSED, WHAT I'M ASKING THIS HOUSE AND SENATE TO TAKE SERIOUSLY IS THE CONSIDERATION TO ACTUALLY TREAT THIS AS A 30-YEAR -- A 30-MONTH BUDGET.

AND HOPEFULLY WE'LL THINK THIS WAY FOR THE NEXT 30 YEARS AS WELL.

BUT AS I 30-MONTH BUDGET.

IT'S GOING TO BE A 9% CUT IN SPENDING PER YEAR.

THAT WILL NOT BE 9% FOR THIS YEAR BECAUSE WE'RE ALREADY HALFWAY THROUGH THIS FISCAL YEAR, SO IT WILL BE 4.5% FOR FISCAL YEAR '16.

THAT WILL ALLOW US TO TREAT FISCAL YEAR '16 JUST THE SAME WAY THAT WE HAVE THE OTHER TWO YEARS EXCEPT THOSE WILL BE 9% EACH.

THIS IS NOT 4.5 ON 9 ON 9 BUT RATHER BASED ON THE BASELINE BUDGET ITSELF.

SO IT WILL BE A 4.5% CUT RELATIVE TO WHAT WE ANTICIPATED SPENDING FOR FISCAL YEAR 2016.

THAT'S AN IMPORTANT DISTINCTION.

WHAT WE ARE DOING, THOUGH, IS EXEMPTING MANY THINGS FROM THIS.

AND I'VE HAD THIS CONVERSATION WITH LEADERSHIP.

I'LL SHARE IT WITH SOME OF THE OTHERS.

I JOTTED DOWN SOME OF THEM.

IN THIS ISN'T EXPENSIVE.

WE'RE EXEMPTING VOTERS AFFAIRS, THE SEEK FORMULA, SCHOOL DISTRICT HEALTH INSURANCE, EXEMPTING MEDICAID, KTRS AND KERS 1 EXEMPTING STUDENT FINANCIAL AID.

WE'RE EXEMPTING THE SENATE BILL 192 HEROIN BILL FUND CAN EXEMPTING THE DEDICATED COAL SEVERANCE PROGRAMS, EXEMPTING FRONTLINE PUBLIC SAFETY EMPLOYEES AND FRONTLINE SOCIAL WORKER SALARIES.

WE'RE EXEMPTING OR COMMONWEALTH ATTORNEYS, COUNTIES ATTORNEYS, PUBLIC DEFENDERS, HEADCOUNT.

WE'RE EXEMPTING OUR DEBT SERVICE.

WE'RE EXEMPTING OUR BOARD ELECTIONS AND THEIR SHARE OF THE ELECTIONS AND OTHER NECESSARY GOVERNMENT EXPENDITURES.

WHAT YOU HEAR WHEN YOU LISTEN TO THAT LIST, YOU THINK WHAT AREN'T WE EXEMPTING?

THE REALITY IS THERE ARE STILL THINGS, ALTHOUGH IT'S THE SMALLEST PART OF THE DOLLAR, THE VAST MAJORITY OF DOLLAR IS BEING EXEMPTED.

THIS IS WHY THE BUDGET THAT I AM PUTTING FORWARD, I EXPECT THE HOUSE AND SENATE TO TAKE SERIOUSLY.

I REALLY DO.

BECAUSE IT'S A SERIOUS BUDGET, AND I ASK THOSE OF YOU WHO ARE IN THIS GALLERY, HOLD US TO ACCOUNT, THOSE OF YOU THAT ARE WATCHING ON KET TONIGHT, HOLD US TO ACCOUNT.

THIS IS YOUR MONEY.

WE NEED TO SPEND IT LIKE IT'S YOUR MONEY BECAUSELY, TO BE PRUDENT.

WISELY, TO BE PRUDENT.

THAT'S WHAT THIS BUDGET DOES.

WE HAVE TAKEN THE THINGS THAT ARE EASY TO POKE HOLES AT, AND I CAN APPRECIATE WHY.

WE'RE NOT GOING TO EAT OUR SEED CORE AND NOT CUT INTO INFRASTRUCTURE AND EDUCATION TO THE DEGREE THAT WE MIGHT IF WE DID OTHER THINGS AS WELL.

WE HAVE EXEMPTED SO THAT WE CAN FOCUS ON WHERE THERE ARE SOME UNEFFICIENCIES AND REDUNDANCIES THAT WE CAN ELIMINATE.

AND IT WILL MAKE FOR SOME HARD DECISION MAKING.

THE NET RESULT OF THIS, AND THIS IS IMPORTANT TO UNDERSTAND, BECAUSE OF THE NUMBER THINGS THAT ARE BEING EXEMPTED, WHILE, IN FACT, WE ARE ASKING FOR A 9% CUT PER YEAR ON THE BASELINE, IT EQUATES TO ONLY ABOUT 2.5 CENTS OF THE ENTIRE BUDGET DOLLAR.

BECAUSE OF SO MANY THINGS THAT ARE EXEMPTED, WE'RE ONLY CUTTING THE BUDGET AN EFFECTIVE 2.5 CENTS OUT OF A DOLLAR FOR EACH OF THE NEXT 30 MONTHS.

THAT'S AN IMPORTANT THING TO UNDERSTAND.

THIS IS A 2.5% ABSOLUTELY CUT.

WHAT WE ARE DOING, AND LET ME JUST POINT OUT THAT THIS WILL GENERATE A $650 MILLION CUT IN BASELINE SPENDING.

SO $650 MILLION IN BASELINE SPENDING WILL BE RECOGNIZED AS A RESULT OF WHAT I JUST SAID TO YOU.

BUT I'M GOING TO GIVE LATITUDE TO OUR CABINET SECRETARIES AS TO HOW THAT IS ACCOMPLISHED.

I'VEAL BELIEVED IN BEING HANDS-OFF AS MUCH AS POSSIBLE, HANDS-ON AS MUCH AS NECESSARY, AND THAT IS SOUTH DAKOTA EXACTLY HOW YOU WILL BE HERE.

I DON'T LIKE TOBY MICROMANAGED.

MOST FOLKS DON'T.

I DON'T INTEND THE MICRO MANAGE OUR CABINET.

I WANT TO GIVE APPRECIATION TO OUR CABINET TOWN.

IT'S AUN EXTRAORDINARY GROUP PEOPLE.

I HOPE YOU APPRECIATE THE FACT THAT THESE ARE MEN AND WOMEN WHO HAVE LEFT IN MANY INSTANCES A MUCH MORE LUCRATIVE LIVELIHOOD TO TAKE ON MUCH MORE GRIEF, DEALING WITH LOVELY FOLKS LIKE YOURSELF.

THAT'S THE UPSIDE OF IT.

BUT I'LL TELL YOU ALL IN ALL IT'S NOT AN EASY TASK, AND A LOT OF WORK THAT WILL NEED TO BE DONE, AND THESE INDIVIDUALS QUITE CAPABLE, QUITE EXPERIENCED ENOUGH TO BE ABLE TO MAKE IF DECISIONS WITHIN THEIR RESPECTIVE CABINETS.

IT STARTS BY TAKING A COMPREHENSIVE LOOK AT, FOR EXAMPLE, PERSONAL SERVICE CONTRACTS.

I SENT OUT AN EMAIL A WEEK AGO, I GUESS IT WAS, ASKING OUR PUBLIC STATE EMPLOYEES TO WEIGH IN ON THING THEY WOULD LIKE TO SEE ADDRESSED.

WE GOT THOUSANDS AND THOUSANDS AND THOUSANDS OF RESPONSES.

AND I'M GRATEFUL TO ALL THOSE WHO TOOK PART.

A NUMBER OF INDIVIDUALS WHO RESPONDED, I'M GOING TO READ SOME OF THE THINGS THAT THEY WROTE.

I'M GOING TO READ THESE WITH YOU FOR YOU TONIGHT, AND I'M GOING TO ACTUALLY CALL ATTENTION TO SOME OF THEM WHO HAVE JOINED US HERE TONIGHT AND ARE WITH US UPSTAIRS.

I RECEIVED A LETTER AS IT RELATED TO PERSONAL SERVICE CONTRACTS FROM A MAN NAMED RANDY PEP% P ON HE IS AN ACTUARY IN THE KENTUCKY DEPARTMENT INSURANCE, AND THAT IS WHAT REIGNED RODEOS COO YO I'M A PROPERTY AND CASUAL DID I ACTUATORY.

I'VE WORKED WITH THE DEPARTMENT OF INSURANCE SINCE DEFERS 1996.

ONE THING THAT SETS ME PART EVER THAT I AM A MERIT EMPLOYEE.

ALL OTHER ACTUARIES THAT PERFORM WORK FOR KENTUCKY ARE CONTRACT EMPLOYEES.

MY POSITION IS THAT OUR EMPLOYEES HAVE MORE OF A SKIN IN THE GAME AND ARE MORE EXITED COMMITTED TO DOING WHAT'S GUESS BEST FOR KENTUCKY THAN SOME OF THESE CONTRACT EMPLOYEES.

WE SHOULD EACH LOOK TO TAKING CARE OF THE STATE'S BUSINESS OURSELVES BEFORE LOOKING OUTSIDE FOR EXPENSIVE ASSISTANCE."

ABSOLUTELY.

I MEAN, MY HAT ASK OFF TO YOU, RANDY, FOR FRANKLY THAT KIND OF INTELLIGENCE, THAT KIND OF ATTENTIVENESS TO THE TASK BEFORE US.

WE ARE GOING TO LOOK HAT THESE, AND WHERE THEY CAN BE ELIMINATED WE CAN ACTUALLY NOT ONLY ENTRUST THE RESPONSIBILITY TO PEOPLE THAT, WHEN IT IS POSSIBLE TO DO SO, CAN DO THE JOB BETTER, ARE ALREADY STATE EMPLOYEES, HAVE SKIN IN THE GAMES YOU HAVE SAID, BUT ADDITIONALLY IT WILL SAVE US MONEY.

WE'LL BE MORE EFFICIENT AND EFFECTIVE.

WE'RE GOING TO TAP INTO THE SKILLINGS OF OUR CURRENT WORKERS.

THIS IS ONE OF THE WAYS WE CAN PETITIONER LEARN THESE THINGS.

WE'RE GOING TO TAKE A HARD LOOK AT THESE THINGS.

WE TALKED LLOYD ABOUT INVESTING IN EDUCATION AND WORKFORCE DEVELOPMENT.

THAT LOOKS LIKE SEVERAL THINGS.

WE'VE GOT TO CREATE MORE JOBS.

WE'VE GOT TO BE ABLE TO FILL THOSE JOBS WHEN THEY EXIST.

WE HAVE THOUSANDS OF SKILLED JOBS IN THIS STATE THAT PEOPLE ARE DESPERATE TO FILL.

WE'VE GOT TO ADDRESS THAT, AND IT'S GOING TO LOOK LIKE SEVERAL THINGS.

IT STARTS FRANKLY AT THE ELEMENTARY, PRE-SCHOOL, ELEMENTARY AND SECONDARY LEVELS.

WE'RE NOT GOING TO TOUCH THE SEEK FORMULA IN THIS BUDGET.

NOT ONLY ARE WE NOT GOING TO TOUCH THE UNDERLYING SEEK FORMULA, WE'RE ADDING MONEY TO THE BUDGET TO ACCOUNT FOR THE FACT THAT THERE ARE GOING TO BE PROJECTED MORE STUDENTS IN THE NEXT TWO YEARS, AND SO WE'RE ACTUALLY TAKING MONEY FROM THE GENERAL BUDGET, ADDING I TO THE ABSOLUTE NUMBER OF SEEK DOLLARS THAT WILL BE ABLE TO BE DISSEMINATED TO ENSURE THAT WE DON'T COMPROMISE THIS TRICKLE CRITICAL PART OF OUR EDUCATION PROCESS.

ADDITIONALLY -- THE NET RESULT OF THAT IS ABOUT $39 MILLION BASED ON THE NUMBER OF ADDITIONAL STUDENTS THAT WE ANTICIPATE.

THIS WILL HOLD THE PER-PUPIL FUNDING HARMLESS.

ADDITIONALLY WE'VE GOT TO FOCUS ON WORKFORCE DEVELOPMENT.

WORKFORCE DEVELOPMENT IS THE ONE THING I HAVE HEARD TIME AND TIME AND TIME AGAIN FROM FOLKS.

WE'VE GOT TO ADDRESS OUR WORKFORCE DEVELOPMENT NEEDS.

EVERY SINGLE EMPLOYER THAT I MEET WITH TELLS ME WE NEED MORE PEOPLE.

WHEN FORD COMES WITH 2,000 JOBS, THAT'S EXCITING AND IT'S GOOD AND WE ALL FEEL GREAT ABOUT IT, BUT SOME OF THE OTHER EMPLOYERS IN TOWN CRINGE BECAUSE THEY KNOW MANY OF THOSE WORKERS ARE GOING TO COME FROM THEM AND IT'S A RIPPLE CHECK FIELD GOAL DOWN THE LINE.

WE ARE DEDICATING IN THIS BUDGET $100 MILLION TO BE BONDED AS JUSTIFIED FOR WORKFORCE DEVELOPMENT PROGRAMS AND CAPITAL EXPENDITURES THAT ARE GOING TO HELP US ADDRESS THIS ISSUE, AND THERE ARE PEOPLE WATCHING TONIGHT WHO HAVE BEEN IN MY OFFICE WHO KNOW SPECIFICALLY THE KIND OF IDEAS THEY ALREADY HAVE, AND I HOPE THOSE IDEAS ARE BROUGHT FORWARD.

THOSE IDEAS ARE PEOPLE IN BUSINESS WORK CAN TOGETHER WITH PEOPLE IN HIGHER EDUCATION, DEVELOPING PROGRAMS THAT ARE ABLE TO BE EXPANDED WHERE WE AS THE STATE TAXPAYERS CAN COME ALONGSIDE AND ENCOURAGE THEM WITH OUR DOLLARS, WITH OUR INVESTMENT, WITH OUR SUPPORT TO ENSURE THAT WE ARE GRADUATING MORE AND MORE SKILLED WORKERS, WORKERS WITH SKILLS THAT MAY REQUIRE A YEAR OR TWO YEARS OR THREE YEARS OR FOUR OR MORE.

BUT WE ARE DEDICATE $100 MILLION IN THIS BUDGET TO BOND THOSE EXPENDITURES.

IT'S MY BELIEF THAT WE CAN PUT THREE OR FOUR VERY SIGNIFICANT PROGRAMS IN PLACE WITH THOSE DOLLARS.

IN DIFFERENT LOCATIONS AROUND THE STATE.

SO THAT WE CAN ADDRESS WORKFORCE NEEDS IN SPECIFIC LOCATIONS.

THAT'S SOMETHING WE'LL TALK ABOUT MORE IN DETAIL.

I WANT TO SHARE A LETTER WITH YOU THAT I RECEIVED ALSO RELATING TO EDUCATION FROM A YOUNG WOMAN NAMED ELIZA JANE SHAFFER.

ELIZA JANE IS HERE TONIGHT AS WELL.

SHE IS A SENIOR AT HENRY CLAY AND A MEMBER OF THE STUDENT VOICE TEAM.

AND SHE WROTE "WE RECENTLY LEARNED THAT AN AVERAGE OF $30 MILLION OF LOTTERY REVENUE IS DESIGNATED FOR NEED-BASED SCHOLARSHIPS BUT HAS BEEN CONSISTENTLY DIVERTED TO THE GENERAL FUND AND OTHER STATE PROGRAMS."

YOU'RE RIGHT, IT HAS PANE, AND IT'S HAPPENED FOR MANY YEARS AND MANY DIFFERENT ADMINISTRATIONS, AND THAT'S GOING TO END.

100% OF ALL LOTTERY DOLLARS ARE GOING TO GO TO EDUCATION, WHICH IS WHAT THEY WERE INTENDED FOR.

[ APPLAUSE ] THEY ARE BECAUSE IT'S THE RIGHT THING TO DO.

IT'S WHAT THE PEOPLE WERE TOLD WHEN THEY AGREED TO HAVE THIS IN PLACE, AND BECAUSE THE NEED IS THERE, FRANKLY.

ONE OF THOSE NEEDS, MANY OF YOU HAVE READ ABOUT AND HEARD ABOUT, IT'S FUNDING FOR OUR NATIONAL GUARDSMEN.

CHRISTIANEL COW COMPIL IS HERE TONIGHT WITH HIS FAMILY.

I APPRECIATE YOU BEING HERE, CHRISTIAN.

HE WAS ONE OF 700 NATIONAL GUARDSMAN WHO HAD HIS INITIAL REQUEST TURNED DOWN BASS HE APPLIED FOR FUNDS, AND BECAUSE OF A BUDGETING ERROR -- IT WAS NO ONE'S FAULT, WE JUST HAD MORE DEMAND AS PEOPLE RETURNED FROM THE FRONT THAN WE EXPECTED -- THE CLASS WEREN'T THERE FOR THIS SPRING SEMESTER, AND I APPLAUD THOSE MEMBERS ON THE HOUSE AND ON THE DEMOCRAT AND THE REPUBLICAN SIDE WHO BROUGHT THIS TO MY ATTENTION, AND SPEAKER STORIES OF AS WELL, SPEAKER STUMBO, I APPRECIATE YOU ALL WORKING TOGETHER.

I APPRECIATE OUR UNIVERSITY PRESIDENTS IN QUICK MEASURE GETTING TOGETHER ON AP AFTERNOON CALL SHORTLY AFTER THIS WAS BROUGHT TO MY ATTENTION, AND RATHER THAN PUTTING IT OFF AND ADDRESSING IT IN THIS BIELLEN BUDGET WE FIXED I HAD IN A 20 MINUTE CALL OR LESS ON THE DAY, THE AFTERNOON THAT IT WAS BROUGHT TO OUR ATTENTION.

THAT'S HOW WE'RE GOING TO DO THING TO THE EXTENT WE HAVE AND OFSOME THESE DOLLARS THAT HAVE BEEN GETTING SWEPT ARE GOING TO BE ABLE TO OFFSET THOSE NEEDS AMONG OTHERS.

ADDITIONALLY, WE'RE GOING TO BE ABLE TO FULLY FUND THE KEES DEMANDS BASED ON CRITERIA, THE CAP AND OF THIS OF SOME OF THESE OTHER PROGRAMS THAT THESE DOLLARS WERE INITIALLY INTENDED FOR.

THE ANOTHER THING WE'RE GOING TO DO IS MOVE THE POST-SECONDARY DOLLARS TO OUTCOMES BASED FUNDING.

YOU'VE HEARD ME TALK ABOUT IT BUT IT'S COMING.

[ APPLAUSE ] IS AND I'LL TELL YOU THIS AGAIN IS SOMETHING THAT IS GOING TO HAVE TO BE DONE THOUGHTFULLY, AND SO TO JUST SIMPLY APPLY TO IT THIS YEAR'S BUDGET WOULD BE UNFAIR.

WHILE A STUDY HAS BEEN DONE, AND I APPRECIATE THE COUNCIL COULD POST-SECONDARY EDUCATION FOR HAVING STUDIED THIS ISSUE, AND THEY DID PUT TOGETHER SOME THOUGHTS OVER THE COURSE 15 MONTHS AND THEY CAME UP WITH SOME IDEAS THAT INCLUDED A COUPLE OF DIFFERENT COMPONENTS, TRYING A COUPLE OF UNIVERSITIES IN ORDER TO BRING THEM UP ON TO PER CAPITA SPENDING RELL TIFF HAD TO THRUSTS.

THAT WAS ONE PIECE OF IT.

ALSO HAVING OUTCOME BASED FUNDING BASED ON THE RESTORATION OF ADDITIONAL DOLLARS TO THE BUDGET.

I APPRECIATE THEM HAVING PUT THIS THOUGHT INTO IT.

IT NEEDS SOME MORE WORK, THOUGH, AND IT WILL ULTIMATELY WITHIN FOUR YEARS APPLY TO EVERY DOLLAR, NOT JUST DOLLARS THAT ARE RESTORED, AND THAT'S IMPORTANT FOR PEOPLE TO UNDERSTAND.

THERE IS NOT GOING TO BE MONEY JUST FOR THE SAKE OF EXISTING.

THERE IS GOING TO BE A $1 BILLION ROUGHLY JUST AS THERE IS NOW, HOPEFULLY MORE AS WE MOVE FORWARD IN OUR AND ARE ECONOMICALLY STRONG, BUT WE ARE GOING TO BE THOUGHT OF AS TO HOW THAT'SAL -- THOUGHTFUL AS TO HOW THAT'S CLEATED ALLOCATED.

TWO THINGS YOU WANT TO THE LAW TO YOUR ATTENTION.

ACCORDING THÈ THOUGHT TWO UNIVERSITIES WESTERN KENTUCKY UNIVERSITY AND NORTHERN KENTUCKY UNIVERSITY OF NEEDED TO BE TRUDE UP TIE SMALL DEGREE, ON IT OF THE GENERAL BUDGET WHERE EACH OF THEM TO HAVE A HIGHER BASELINE TO START WITH.

BECAUSE WE WERE DON'T HAVE THE FINAL OUTCOMES BASED FORMULA IN PLACE, WE'RE NOT GOING TO HAVE THAT TRUE TRUE-UP STARTING IN FISCAL YEAR 2017.

BUT WE ARE GOING TO TAKE THOSE COMPACT NUMBERS, I'M NOT GOING TO REINTENT THAT WHEEL, A LOT OF SENATOR PEOPLE AGREED TO WHAT THEY THOUGHT THE RIGHT NUMBER WAS, AND WE'RE GOING TO TAKE THOSE RIGHT NUMBERS AND TROUP 50% OF THAT NUMBER IN FISCAL YEAR 2017 FOR NORTHERN AND WESTERN, WE'RE GOING TO TRUE UP 100% OF IT IN FISCAL YEAR '18 ANDnd YO, AND THEN PEOPLE WILL BE ON PAR WITH ONE ANOTHER AS IT RELATES TO PER CAPITA SPENDING PLUS OR MINUS A BIT FROM THE TAXPAYERS OF KENTUCKY.

AND THEN THOSE DOLLARS THAT ARE TRUDE UP IN FISCAL YEAR '18 AND BEYOND ARE GOING TO START TO BE ALLOCATED ACCORDING TO OUTCOMES BASED FUNDING.

WE WILL SIT BACK DOWN WITH THOSE VERY SAME UNIVERSITIES PRESIDENTS, WITH EMPLOYERS, WITH PARENTS, WITH STUDENTS AND WE ARE GOING TO COME UP WITH WHAT THOSE OUTCOMES NEED TO BE.

THE NET RESULT OF PUTTING PUBLIC TAX DOLLARS INTO EDUCATION IS TO ENSURE THAT WE ACTUALLY ARE GRADUATING PEOPLE THAT CAN GO INTO THE WORKFORCE AND GET OUT OF THEIR PARENTS' BASEMENT, AMONG OTHER THINGS, AND THESE ARE THE THINGS THAT WE'RE GOING TO DO.

IF WE'RE GOING TO SUBSIDIZE IT HAD WITH TAXPAYER MONEY WE'RE GOING TO FOCUS ON THE OUTCOMES.

SO IN WANT 18 ONE-THIRD OF ALL THE DOLLARS ARE GOING TO BE ALLOCATED BY OUTCOMES BASED FUNDING.

TWENTY 192-THIRDS.

2020 AND BEYOND IT WILL BE 100% OF POST-SECONDARY EDUCATION DOLLARS ARE GOING TO BE ALLOCATED BASED ON AN AGREED OPINION FORMULA THAT WILL WORK FOR EVERYBODY, AND MOST IMPORTANTLY WORK FOR OUR STUDENTS, THEIR PARENTS, AND THE PEOPLE THAT ARE GOING TO EMPLOY THEM INTO THE FUTURE.

WE'VE GOT TO TALK ABOUT OUR PENSION.

WE TALKED ABOUT KEEPING OUR COMMITMENT TO OUR PUBLIC SERVANTS.

WE'RE GOING TO START BY AUDITING EVERY SINGLE ONE OF THE PENSION SYSTEMS P. THAT'S IMPERATIVE.

IT'S GOT TO HAPPEN.

[ APPLAUSE ] THIS IS SOMETHING THAT FRANKLY WITH ALL DUE RESPECT TO OUR CURRENT AUDITOR AND THE MAN WHO PRECEDED HIM, IS NOT SOMETHING THAT SHOULD BE DONE BY THE STATE ITSELF.

WE ARE GOING TO RETAIN OUTSIDE AUDITORS.

WE'VE PUT A LINE ITEM IN THE BUDGET.

YOU'LL SEE IT.

IT'S MORE THAN I BELIEVE WE WILL NEED BUT IT SHOULD BE ADEQUATE, AND THEN SOME IN.

SMALL COMPARED THE OTHER NUMBERS BUT THE POINT IS WE NEED TO AUDIT THESE SYSTEMS.

WE NEED TO HAVE A TRUE ASSESSMENT.

WE'RE GOING TO TALK WITH THE VERY SAME PEOPLE THAT HAVE LOOKED A PROGRAMS AND OTHER SYSTEMS THAT ARE HAVING TROUBLE WHETHER IT'S LOS ANGELES OR DETROIT OR OTHERS, THE SAME PEOPLE WITH THE EXPERTISE IN AUDITING THOSE PLANS AND COMING UP WITH SOLUTIONS ARE THOSE THAT WE'RE GOING TO BE TALKING TO.

WHO IT ULTIMATELY IS WE'LL BID IT AND MAKE A DETERMINATION.

BUT UPON AUDITING IT WEILL FULLY KNOW THE SCOPE AND SCALE OF THE PROBLEM.

LET HE REIT LATE SOMETHING I SAID EARLIER.

WE CANNOT BORROW OUR WAY OUT OF DEBT NOR WILL WE TRY.

NOR WILL WE TRY.

[ APPLAUSE ] AND YET -- AND YET AN ARGUMENT THAT HAS OFTEN BEEN MADE, FAIRLY OR OTHERWISE AND RAT TIMES FAIRLY, HAS BEEN, WELL, WHAT'S THE ALTERNATIVE?

WHAT'S THE SOLUTION FROM ITS OTHER SIDE?

THERE ARE MEMBERS OF THIS HOUSE AND MEMBERS OF THE SENATE -- I HESITATE TO LEAVE PEOPLE OUT OF IT BUT PEOPLE LIKE BRAD MONTELL, JIM HAD I GONE DON, PEOPLE LIKE JOE BOW -- HIGDON, PEOPLE WHO HAVE SPENT INORDINATE AMOUNTS OF TIME COMING UP WITH VERY THOUGHTFUL RESTRUCTURING PROGRAMS THAT ARE WAYS IN WHICH WE CAN RESTRUCTURE THE PENSION SYSTEM TO MAKE IT MORE VIABLE AND SUSTAINABLE INTO THE FUTURE.

I HAVE ASKED THEM TO HOLE OFF ON INTRODUCING ALL THOSE CHANGES UNTIL WE TRULY UNDERSTAND THE NATURE OF THE PROBLEM ITSELF, THE SIZE AND THE SCOPE OF IT BECAUSE WHILE THEY HAVE GOOD SOLUTIONS AND SOLUTIONS THAT WILL SOLVE A PROBLEM, IT SOLVES A PROBLEM THE SIZE OF WHICH WE DON'T KNOW.

UNTIL WE KNOW THAT, WE WANT TO MAKE SURE WE BRING THE RIGHT SOLUTION FORWARD.

SO I'VE PUT FORWARD SOMETHING THAT DOES NOT WAIT UNTIL WE'VE DONE THAT TO FUND THESE PENSIONS.

AND ZOE WANT TO DRAW YOUR ATTENTION TO SEVERAL THINGS, AND I'VE MET WITH PEOPLE WHO REPRESENT, RETIRED TEACHERS AND STATE EMPLOYEES TO SHARE THESE NUMBER WITH THEM ALREADY IN ADVANCE.

FIRST OF ALL, AS IT IS RELATES TOKRS, THE REQUEST IS TO AT LEAST FUND THE ARC.

WE WILL DO THAT AND THEN SOME AND I'LL TALK ABOUT THAT.

THE PLAN IS UNDER20% UNFUNDED.

IT'S UNTENABLE AS IT STANDS.

WE ARE GOING TO NOT ON MAINTAIN THE BASELINE FUNDING OF $625 MILLION FOR EACH OF THE ETHICS TWO YEARS THAT HAS ALREADY BEEN COMMITTED IN 2016.

WE ARE GOING TO FOR KERS ADD $130 MILLION IN THIS BUDGET, PLUS AN ADDITIONAL $45 MILLION IN THIS BUDGET, SO THAT'S ARC AND ARC PLUS.

IT'S $175 MILLION TO K EVIDENTLYRS.

ON TOP OF THE 625.

IN 2018 IT WILL BE 625 PLUS 1 IF YOU HAVE BUS PLUS 45.

ADDITIONALLY -- [ APPLAUSE ] THE SUM RESULT OF THAT IS WELL OVER $800 MILLION.

IT IS GOING TO BE APPLIED TO OFF-SETTING THIS OBLIGATION THAT THEY HAVE.

IT'S A START, AND THIS IS SOMETHING THAT WE'RE GOING TODAY AS IT RELATES TO KTRS HAS MADE A REQUEST THAT THEY KNOW IS MORE THAN OUR BUDGET WILL HOLD BUT THIS BUDGET CALLS FOR A CONTRIBUTION OF $309 MILLION OUT OF GENERAL FUND IN ADDITION TO THE $665.5 MILLION ALREADY BEING APPROPRIATED TO THE TOTAL OF JUST OVER $1 BILLION FOR EACH OF THE NEXT TWO YEARS.

THIS IS SIGNIFICANT MONEY.

THIS IS THE HEARTBEAT OF THIS ENTIRE BUDGET BECAUSE EVERYTHING ELSE WE CARE ABOUT, INCLUDING THINGS THAT I WANT, THINGS I CAMPAIGNED ON, THINGS I'D LIKE TO SEE, THING THAT MANY OF YOU IN THIS ROOM AND THIS THIS BODY WOULD LIKE TO SEE WE CANNOT AFFORD UNTIL WE GET OUR FINANCIAL HOUSE IN ORDER, AND UNTIL WE FIGURE OUT BASED ON AUDIT AND IS BASED ON AGREED UPON PLANS WHAT THAT LOOKS LIKE, WE'RE NOT GOING TO WAIT, BAER WEIGH GOING TO START ADDRESSING THE PROBLEM NOW.

WE'RE NOT HOLDING PEOPLE HOSTAGE OVER THIS THIS, AND I WOULD URGE THOSE IN THE THE HOUSE AND SENATE PUT THESE DOLLARS INTO ACCOUNTS, BUDGET THESE DOLLARS FOR THIS BUDGETING SESSION, AND THEN SIT DOWN IN GOOD FAITH WITH ONE ANOTHER AND COME UP WITH A SOLUTION THAT WILL ENSURE WE DON'T HAVE KEEP EATING SO MUCH OF OUR BUDGET EVERY SINGLE I'M TIME AND CAN DO OTHER THINGS THAT WE WANT TO BE DONE.

BUT THESE ARE GOING TO BE PRIORITIES.

WE'RE GOING TO ALLOCATE BILLIONS OF DOLLARS ADDITIONALLY TO THIS.

$1.1 BILLION IN NEW MONEYS ARE GOING TO BE ADDED TO THE PENSION SYSTEMS OVER THE NEXT BIENNIUM.

THIS IS THE KIND OF THING THAT SHOULD MAKE ALL OF YOUR CONSTITUENTS FEEL GOOD, AND I WOULD CHALLENGE THOSE OF YOU THAT ARE WATCHING, THOSE OF YOU THAT ARE REPRESENTED TODAY, CONTACT YOUR LEGISLATORS.

IF YOU WANT PEOPLE TO STOP TAKING MONEYS AND APPLYING THEM TO OTHER THINGS THAT COULD GO TO THIS PENSION SYSTEM, SUPPORT THIS BUDGET BILL.

IT'S IMPORTANT THAT WE DO SO.

WE'VE GOT TO TAKE CARE OF E. KENTUCKY'S MOST VULNERABLE CITIZENS.

WE TALKED WITH THAT.

KENTUCKY'S MOST VULNERABLE CITIZENS INCLUDE PEOPLE THAT ARE SUBJECT TO ABUSE AND NEGLECT, AND THE PEOPLE THAT ARE ACTUALLY PROTECTING THEM ARE THE PEOPLE THAT WE NEED TO TAKE CARE OF.

WANT IT TO SHARE A LETTER WITH YOU FROM VANESSA 91.

SHE IS HERE TONIGHT AS WELL.

VANESSA NUNN.

SHE IS RAW SOCIAL SERVICE CLINICIAN IN CAMPBELLSVILLE.

I APPRECIATE YOU BEING HERE TONIGHT, I TRULY DO.

SHE QUOTE YOO AM A SOCIAL WORKER IN TAYLOR COUNTY WORKED FOR THE CABINET ALMOST 20 YEARS.

I'M VERY PROUD OF THE JOB THAT I HAVE.

OVER THE PAST 20 YEARS I'VE SEEN SO MANY CHANGES IN BOTH ADMINISTRATION AND IN POLICY.

SINCE I'VE BEEN IN THIS OFFICE I'VE STEEN THE STAFF COMPLETELY TURNOVER AT LEAST YOU ARE FOR TIMES.

THAT IS NOT FAIR TO FAMILIES.

EACH TIME THEY CHANGE CASEWORKERS IT'S LIKE THEY START ALL OVER AGAIN FROM THE GROUND UP.

THIS IS NOT ONLY FRUSTRATING FOR FAMILIES AND CHILDREN, IT'S FRUSTRATING FOR THE JUDGES AND THE ATTORNEYS THAT WORK ALONG SIDE OF THEM TRYING THE REUNITE AND KEEP FAMILIES TOGETHER."

VANES, A THANK YOU FOR WITHDRAWING.

YOUR WORDS WERE SHARED BY A NUMBER OF OTHER FOLKS WHO FEEL THE SAME THING.

WE'RE GOING TO BE ADDING $4.8 MILLION OVER THE BIENNIUM TO INCREASE ENTRY LEVEL AND NEW HIRE SAL RUSS FOR PEOPLE WHO ARE TANK IR CALF OUR MOST VULNERABLE CITIZENS.

THANK YOU FOR YOUR LETTER.

[ APPLAUSE ] WE'RE GOING TO BE INCREASING THE MINIMUM STARTING SALARY FOR MID LEVEL SOCIAL WORKERS, AND WE'RE GOING TO THEREBY DECREASE SOME OF THING CRO I GO TURNOVER THAT HAS BEEN A PROBLEM.

THIS WILL POSITIVELY AFFECT 2,030, SO WORKS IN THIS STATE.

I WANT TO READ ANOTHER LETTER THAT CAME FROM ROBIN BOGGS.

ROBIN IS HERE TONIGHT, A GUARDIANSHIP SOCIAL WORK.

SHE TAKES RESPONSIBILITY FOR THE CARE OF PEOPLE WHO DON'T HAVE THE CAPACITY DUE TO HEALTH AND MENTAL LIMB LIMITATIONS THAT THEY MAY HAVE TO CARE FOR THEMSELVES.

SHE WROTE "I'VE BEAN WORKING FOR THE COMMONWEALTH AS A GUARDIANSHIP SOCIAL WORKER FOR ABOUT A YEAR P I'M MEDALS OF AT THE CALIBER OF WORK THAT IS DONE BY MY COLLEAGUES I GIVEN HUGE CASELOADS, HOE PAY AND HIGH TURNOVER.

AS A A REALIST I UNDERSTAND THAT THE BUDGETS ARE TIGHT BUT I'M CONCERNED THAT SERVICES TO OUR MOST VULNERABLE POPULATIONS WILL BE AT RISK AS LEGISLATORS LOOK TO FIND MONEY FOR ISSUES THAT ARE THEIR PRIORITY.

I ASK THAT YOU LOOK THE OTHER AREAS TO TRIM RATHER THAN MAKE CUTS TO PROGRAMS THAT ARE ALREADY WORKING BEYOND CAPACITY AS THEY ARE."

ROBIN RAILROAD YOUR CORRECT.

WE'RE GOING TO BE ADDING JUST UNDER $1 MILLION, 9 OROSCO HOW THE $100 INTO THE GUARDIANSHIP CASELOAD MANAGEMENT.

THIS IS GOING TO ALLOW US TO BRING ON ADDITIONAL CASELOAD MANAGERS.

IT'S GOING TO ALLOW TO US KEEP UP WITH THE EXPECTED GROWTH PLUS 6%, AND THIS WILL HELP US TO OFF-LOAD SOME OF THE DEMAND THAT YOU AND OTHERS ARE FEELING SO THAT WE CAN DO BETTER BY THOSE THAT WE ARE EXPECTED TO DO RIGHT BY.

ABOUT 10% ALL THE eMAILS THAT WE GOT ADDRESSED A PARTICULAR ISSUE.

THIS WAS INTERESTING.

THIS WAS BROUGHT TO MY ATTENTION IN A WAY THAT I DIDN'T EVEN FULLY APPRECIATE.

THE MANDATORY OVERTIME THAT IS BEING DEMANDED OF SO MANY OF OUR PUBLIC WORKERS.

TURNS OUT THAT THERE'S HUNDREDS OF CASEWORKERS ACROSS THIS STATE THAT ARE BEING FORCED TO DO MANDATORY OVERTIME EVERY SINGLE NIGHT.

SOME OF THEM MORE THAN FIVE NIGHTS A WEEK.

THEY TAKE THIS WORK HOME WITH THEM, SOME OF THEM.

THEY DON'T EVER GET TO TURN IT OFF.

THEY STAY TIED TO THEIR PHONES.

THIS HAS GOT TO END.

THEY'RE ROBBED OF THE ABILITY TO COACH THEIR OWN CHURN, SEE THEIR OWN PLAYS, ENJOY DINNER WITH THEIR OWN FAMILIES, THINGS WE OFTEN TAKE FOR GRANTED AT ADVERTISEMENTS.

THIS HAS GOT TO END.

I'M MARRIED AND HAVE NINE CHILDREN.

MANY OF YOU ARE AWARE OF THIS.

I VALUE THE TIME THAT I HAVE WITH MY FAMILY.

WE SHOULD BE JUST AS COGNIZANT OF TIME THAT EACH AND EVERY ONE OF OUR STATE EMPLOYEES HAS WITH THEIRS.

WHEN I HEARD OF THIS I TALKED WITH SECRETARY GLISTEN.

SHE IS OUR SECRETARY IN THE CABINET FOR HEALTH AND FAMILY SERVICES.

WE WORKED WITH HER TO REACH A SOLUTION TO SOLVE THIS PROBLEM, AND POTENTIALLY, FRANKLY, I BELIEVE IT'S GOING TO SAVE US MONEY IN THE PROCESS.

A NUMBER OF EMPLOYEES, AND ONE IN PARTICULAR, POINTED THIS OUT, THAT WHY DON'T WE JUST LIMIT THE ACTUAL HOURS IN WHICH YOU CAN CALL IN, HAVE A CUT-OFF TIME FOR THE HOURS THAT YOU CAN CALL, HAVE THE OFFICES CONTINUE TO BE OPEN FOR FOOT TRACK OF AND THAT ALLOWS PEOPLE TO BETTER, MORE EFFECTIVELY MANAGE THE CASELOAD AND THEN WHEN THE CALLS ARE DONE THEY CAN ACTUALLY GET THEIR PAPERWORK DONE.

THE THESE ARE THE THING WE'RE GOING TO DO.

WE'RE GOING TO REDUCE OVERTIME, REDUCE THE CASELOAD OUR WORKERS, AND ULTIMATELY I BELIEVE WE'RE GOING TO DO A BETTER JOB ADDRESSING.

IT'S THESE KINDS OF IDEAS THAT I ENCOURAGE TO YOU CONTINUE TO BRING FORWARD.

WE NEED THESE IDEAS TO CONTINUE TO COME AS WE FACE THIS BUDGET IN THE NEXT COUPLE OF YEARS.

I THANK SECRETARY GLISTEN WHO IS HERE TONIGHT AND HER STAFF FOR QUICKLY COMING UP WITH SOLUTIONS.

THIS IS SOMETHING THAT WE ARE GOING THE TO PUT INTO EFFECT IMMEDIATELY AND YOU ARE GOING TO SEE RE LEIF IMMEDIATELY IN THE CASE AHEAD ON THIS FRONT.

I WANT TO READ TO YOU A LETTER FROM SUSAN, SHE WASN'T ABLE TO JOIN US TONIGHT BECAUSE SHE TEACHES IN THE EVENINGS.

SHE'S A FORENSIC SCIENCE SPECIALIST AT OUR STATE CRIME LAB, AND SHE WROTE THIS, "I FEEL AS THOUGH THE BUDGET FOR LAB SERVICES IS INADEQUATE, THAT THE CHANGES NEED TO BE MADE WITHIN OUR SURFS OPTIONS FOR POLICE DEPARTMENTS.

THE DNA BACKLOG IS PROBABLY SOMETHING THAT YOU'RE ALREADY AWARE OF BE, AND WE DID NOT HAVE THE MANPOWER OR THE INSTRUMENTATION TO CATCH UP WITHOUT COSTLY OUTSOURCING OLDER CASES."

AND I'LL TELL YOU, THIS IS AN USUAL THAT HAS BEEN DISCUSS ODD BOTH SIDES OF THE AISLE FOR A LONG TIME.

BY PEOPLE THAT ARE CURRENTLY IN OFFICE AND PEOPLE WHO PRECEDED THEM.

THIS IS A SHAME.

IT'S AVOIDABLE.

IT'S GOING TO BE ADDRESSED.

AND SO WE ARE GOING TO ALLOCATE AN ADDITIONAL $4.5 MILLION THAT ARE GOING TO BE USED TO PROCESS THESE -- ALL THIS DATA THAT WE HAVE, ALL OF FORENSIC DATA THAT WE HAVE, THE RAPE TEST KITS, THE SEXUAL ASSAULT KITS THAT ARE VARIATIONS ON SAME THING, PEOPLE WHO ARE SURVIVORS OF CRIME.

WE'RE GOING TO TEST THESE THIS GOES AND WE'RE GOING ACCELERATE IT.

WE'RE NOT GOING TO WAIT UNTIL 2017 AND 2018.

THIS $4.5 MILLION WILL BE MADE AVAILABLE.

WE'RE GOING TO PULL IT THROUGH EVEN INTO THE REMAINDER OF 2016 WE'RE GOING TO DO IT AS QUICKLY AS WE CAN TO ELIMINATE THIS BACKLOG AND PUT THESE RAPE TEST KITS TO BED ONCE AND FOR ALL AND ALLOW OUR LAW ENFORCEMENT OFFICERS TO DO THEIR JOB.

[ APPLAUSE ] WE'RE GOING TO TAKE CARE OF THOSE WHO PROTECT US.

WE'RE GOING TO PROTECT THOSE WHO PROTECT US IN THIS BUDGET.

THIS BUDGET CALLS FOR A COUPLE OF THINGS.

FIRST OF ALL, FUNDS FOR THE NEXT FOUR YEARS, AND I HOPE FOREVER THEREAFTER ARE NO LONGER GOING TO BE SWEPT TO BALANCE THE BUDGET.

NOT GOING TO HAPPEN.

[ APPLAUSE ] THERE IS ABSOLUTELY NO SKEWS FOR SWEEPING THE CLEFT FUNDS TO BALANCE THE BOILING.

THESE DOLLARS FOR OUR LAW ENFORCEMENT.

THAT IS EXACTLY WHAT THEY'RE GOING TO BE USED FOR.

THIS THIS BUDGET I'M CALLING FOR $12.4 MILLION INCREASE IN SALARIES FOR OUR KENTUCKY STATE POLICE.

[ APPLAUSE ] THIS WILL BE FOR BOTH OUR TROOPERS AND OUR SENIOR TROOPERS.

WE'RE GOING TO BE ABLE TO USE SOME OF THESE DOLLARS NOT ONLY TO ENSURE THAT WE GET THE BEST AND BRIGHTEST BUT THAT WE KEEP THEM, AND THAT WHEN THEY GET ADDITIONAL RESPONDENTS TEN YEARS DOWN THE ROAD, IT COULD ALSO WITH ADDITIONAL MONEY AS WELL.

THESE ARE THINGS THAT ARE GOING TO BE ADDRESSED.

I WANT TO SHARE WITH YOU A NOTE THAT CAME FROM SERGEANT JERED THOMPSON, CORRECTIONAL OFFICER SONIA BUREAU.

THEY WORKED TOGETHER ON SENDING THIS EMAIL IN.

-- SONIA BAHR.

SERGEANT THOMPSON IS WITH THE KENTUCKY STATE PENITENTIARY, TOOK THE TIME TO SEND THIS IN.

HEED "WE BELIEVE THAT THE CURRENT HIGH TURNOVER RATE IS DUE TO THE LOW PAY RATE AND LACK OF RETENTION PAY IN COMPARISON TO OTHER STATES."

HE'S TALKING ABOUT IN THE CORRECTIONAL FACILITIES.

"THE STATE SHOULDES WITH ITS TIME AND MONEY ON EXCELLENT TRAINING AND RETENTION PAY TO KEEP THE CURRENT EMPLOYEES.

THE COST OF INITIAL HIRING AND TRAINING OF A NEW EMPLOYEE SAYS MADE IT TO BE $20,000 PER TRAINEE.

WITH THE CURRENT HIGH TURNOVER RATE WE ARE WASTING HUNDREDS OF THOUSANDS OF DOLLARS TO EMPLOYEES WHO DON'T EVEN MAKE IT THROUGH THEIR EIGHT-MONTH PROBATION PERIOD."

HE'S ABSOLUTELY RIGHT.

AND SO WE'RE GOING TO ACTUALLY DEDICATE $4.5 MILLION IN RETENTION RAISES FOR OUR CORRECTIONAL OFFICERS IN THIS BUDGET.

[ APPLAUSE ] THIS I TRULY BELIEVE WILL HAVE A DAMPENING EFFECT ON THE 67% TURNOVER RATE.

ANY OF YOU THAT HAPPEN TO WORK IN THE BUSINESS WORLD THE ALL KNOW WHAT A 67% TURNOVER RATE WOULD DO TO YOUR BUSINESS.

THIS STATE IS THE PEOPLE'S BUSINESS AND WE'RE GOING TO DO WHAT WE CAN TO SPEND DOLLARS SO THAT WE DON'T WASTES EVEN MORE OF THEM.

THIS WILL AFFECT APPROXIMATELY 2,125 CORRECTIONAL OFFICERS.

AND THIS WILL HELP TO OFFSET SOME OF THEIR DEMANDS ON FORCED 1212 HOURS DAYS IN A ROW --.

WE ALSO GOT AN EMAIL FROM ASHLEY PARKER.

ASHLEY IS A PROBATION AND PAROLE OFFICERS FOR THE PAT EIGHT YEARS WITH THE CREPT OF CORRECTED "THE CASELOADS WE MANAGE AND THE RESPONSIBILITIES PLACED TO OFFICERS HAVE CREATED SIGNIFICANT STRESS.

OFFICER TURNOVER AND CONTINUED TIME SENSITIVE TASKS AS THE CRIMINAL ELEMENT CONTINUES TO COMMIT OFFENSES AND VIOLATE TERMS OF THEIR CONDITIONS.

IN THIS BUDGET WE ARE CALLING FOR $2.4 MILLION OVER THE BIENNIUM TO HIRE 32 ADDITIONAL PROBATION AND PAROLE OFFICERS.

THIS WILL REDUCE THE CASELOAD FROM AN AVERAGE OF 94 CASES PER OFFICER TO 83.

TOO MANY OF US THINK THAT WE'RE OVERBURDENED AND OVERWORKED.

THEY WILL STILL HAVE 83 CASES PER OFFICER.

BUT THIS WILL HELP TO START MOVING IT IN A MORE MANAGEABLE DIRECTION.

RECEIVED ANOTHER NOTE, THIS CAME FROM A MAN NAMED JERED BUELLY, JERED IS HERE TONIGHT, IS A PUBLIC DEFEND INNER THE DEPARTMENT OF PUBLIC ADVOCACY IN LEXINGTON, AND I APPRECIATE YOU BEING HERE TONIGHT BE, JERED JO TO THE BEST OF MY KNOWLEDGE WE HAVE NEVER BEEN FULLY STAFFED.

THE TURNOVER IS SIGNIFICANT.

IT TAKES SUBSTANTIAL TIME TO TRAIN ANY NEWER HIRES.

FOR MY PART I'M WILLING TO FOREGO RECLASSIFICATION AND THE COMMENSURATE PAY RAISE."

BE CAREFUL WHAT YOU ISSUE, FOR "AND EVEN INCH DEFINITELY IF IT WILL HELP.

I'M EVEN WILLING TO DISCUSS A PAY CUT IF IT WOULD HELP US REMAIN STAFFED.

IT IS A TOUGH JOB AS IT IS BUT MY PRIMARY GOAL IS TO HELP THE POOR IN AND UNDERSERVED KENTUCKIANS WHO FACE A LOSS OF THEIR LIBERTY, THEIR LIVELIHOOD AND EVEN THEIR LIVES AT THE HANDS OF AN OVERWORKED JUDICIAL SYSTEM."

JERED, TO THAT EXACT END WE ARE GOING TO ALLOCATE IN THIS BUDGET $6.2 MILLION IN FUNDING TO HIRE ADDITIONAL PUBLIC DEFENDERS.

THIS WILL ALLOW -- [ APPLAUSE ] THIS WILL ALLOW US TO HIRE 44 NEW ATTORNEYS, REDUCING THE CASE ROAD FOR THOSE INDIVIDUALS FROM 514 PER ATTORNEY TO 395.

$6.2 MILLION TO REDUCE THEIR INDIVIDUAL CASELOADS FROM 514 TO 395.

ADDITIONALLY WE ARE GOING TO EXEMPT THE STATE'S PROSECUTORS FROM ANY BUDGET REDUCTIONS AT ALL.

[ APPLAUSE ] WE TALKED ABOUT DEALING WITH SUBSTANCE ABUSE.

I'VE MENTIONED IT A NUMBER OF TIMES, AND ALTHOUGH I'VE NEVER MET THE MAN, SAM QUINIONES.

I WOULD RUM TO READ A BOOK CALLED "DREAM LAN."

IT IS A SOBERING BOOK.

SOME OF YOU HAVE READ IT, SOME OF YOU ARE ARE FAMILIAR WITH DREAMLAND IN PORTSMOUTH, OHIO OVER THE RIVER.

IT'S BASED ON THAT, TALKS ABOUT THIS THIS EM EPIDEMIC AND HOW PERSON IT IS TO SO MANY.

IT'S A BOOK WORTH READING, AND I WOULD ENCOURAGE ANY AND ALL OF WHO SERVE THE PUBLIC AND DEAL WITH THIS IN ANY CAPACITY READ "DREAMLAND."

IT WILL WAKE UP AND SOBER YOU IN PRETTY AMAZING WAYS.

WE'VE GOT TO EQUALITY HEROIN SCOURGE.

IT'S BEEN DEBATED IN THIS ROOM AND ACROSS THE WAY.

I DON'T NEED TO GO IT IN GREAT DETAIL BUT THE OPIATE ADDICTION IS REAL, IT'S SYSTEMIC THROUGH THE THIS STATE AND BEYOND.

IT IS A SCOURGE THAT WE HAVE GOT TO FIGHT WITH EVERYTHING US IN.

AND SO NOT ONLY DO I CONTINUE IN THIS BUDGET TO PROPOSE THAT WE FUND AS WE DID IN THE LAST BUDGET THE $10 MILLION, BUT THAT WE ACTUALLY INCREASE THAT AS WELL.

AGRICULTURE ADDITIONAL $5.7 MILLION IN FISCAL YEAR 2017, AN ADDITIONAL $6.3 MILLION ON TOP OF THE 10 IN FISCAL YEAR 2018.

AND THIS WILL ALLOW US -- [ APPLAUSE ] THIS WILL ALLOWS TO FUND MORE OF WHAT WE'RE ALREADY FUNDING IN SOME PLACES.

THERE ARE MANY GOOD PROGRAMS THAT ARE HELPING TO DEAL WITH THIS.

MANY THAT ARE CONTRACTED, NONE PROFITS THAT WORK WITH YOU ARE OUR STATE, PLACES LIKE THE HEALING PLACE.

THEY WOULD LIKE TO DO MORE OF WHAT THEY DO AND DO WELL FOR US, AND THEY WILL HAVE THE OPPORTUNITY TO DO SO BECAUSE OF THESE ADDITIONAL DOLLARS THAT WE'RE GOING TO SPEND FOR SUBSTANCE ABUSE AND DRUG ADDICTION IN PARTICULAR.

WE ARE GOING TO ADD $6.4 MILLION IN ONGOING SUPPORT.

WEIGH GOING TO KEEP THAT IN THERE FOR THE KASPER SYSTEM.

THE KASPER SYSTEM IS IMPORTANT FOR US TO BE AUTOMOBILE TO MONITOR PRESCRIPTION DRUGS -- ABLE TO MONITOR PRESCRIPTION DRUGS AND MAKE SURE THAT DOESN'T BALLOON ON US YET AGAIN.

$6.4 MILLION FOR THAT.

WE ARE ALSO GOING TO FULLY FUND OPERATION UNITE IN EACH OF THE NEXT TWOERS YOO OF THIS BIEN UM.

I WANT TO TOUCH BRIEFING ON KYNECT.

THERE'S BEEN A LOT OF DECISION DISCUSSION IT.

, THE DISCUSSION THAT PEOPLE ARE BEING THROWN OUT OF THEIR HEALTH CARE.

WE ARE GOING TO SHUT DOWN KYNECT.

LET ME REITERATE THAT, THE KICK IT CONDUIT FOR HEALTH INSURANCE WILL BE SHUT DOWN.

ITS MR.

LEVERIDGE NOT EFFECT THE HEALTH INSURANCE OF A SINGLE SPREAD EVERYBODY WHO IS ON A HEALTH INSURANCE PLAN ALREADY SIGNED UP LAST YEAR IN OPEN ENROLLMENT ARE COVERED THIS YEAR UNTIL OPEN ENROLLMENT OF 2016.

AT THAT TIME RATHER THAN ENROLLING ON THE KYNECT PAT FORM, THEY WILL OPEN AND ENROLL ON THE FEDERAL EXCHANGE.

IT'S ANOTHER EXCHANGE.

THEY'LL HAVE ACCESS TO THE SAME TYPES OF PLANS WITH THE VERY SAME PROVIDERS.

THIS IS GOING TO HAPPEN BECAUSE THE REDUNDANCY IS OF NO VALUE TO US.

WE'VE HEARD A LOT OF TALK ABOUT HOW IT'S THE MODEL FOR THE NATION AND HOW IT'S STELLAR AND WHY WOULD WE DO THIS.

THE FACT IS IT WAS BEING BLED OUT, IT'S BEING HELL OFLY SUBSIDIZED AND DOES NOT HAVE THE MONEY TO SUSTAIN ITSELF AND THE MONEY COULD BE APPLIED TO OTHER AREAS.

THE PORTION OF THE ASSESSMENT REVENUES THAT ARE CURRENTLY BEING USED TO SUSTAIN THIS SYSTEM ARE GOING TO BE USED TO WIND IT DOWN.

I ALSO WANT TO DISSUADE ANY AND OFF YOU FROM THE IDEA THINK IT'S GOING TO COST $23 MILLION.

IT'S A NUMBER THAT PEOPLE REPEAT AS GOSPEL.

IT IS NOT TRUE.

IT WILL NOT CHAOS $23 MILLION TO GET OUT OF THIS.

IT WILL COST A SMALL FRACTION OF THAT, THE EXACT NUMBER TO BE DETERMINED BUT IT WILL BE A SYBIL DIGIT MILLIONS OF DOLLARS, A SMALL SINGLE DIGIT MILLIONS AND I'M TELLING YOU WE'RE GOING TO MOVE ON.

AND AS TO THE PEOPLE THAT ARE ON MEDICAID, THERE IS SOMETHING ELSE THAT WE'LL TALK ABOUT HERE IN A MOMENT.

THERE WILL BE NO GENERAL FUNDS USED FOR THIS TRANSACTION, NO GENERAL FUNDS ARE GOING TO BE USED FORPINED TWINING THIS PROGRAM DOWN.

AS IT RELATES TO MEDICAID, WE CAN -- 40% OF US ON MEDICAID.

YOU KNOW IT WOULD BE TO BE TRUE.

IT'S A REALITY WE CAN'T AFFORD IT AND WE'RE NOT GOING TO TRY.

THE WHAT ARE WE GOING TO DO THEN?

WE HAVE 25, ALMOST 30 PERCENT OF US ON MEDICAID BECAUSE WEAVE NEED THIS THIS STATE.

THERE IS REAL NEED I APPRECIATE THAT.

I UNDERSTAND IT.

EYE A GUY WHO GROUP IN FINANCIALLY HUMBLE CIRCUMSTANCES.

I KNOW PEOPLE NOW AND A LOT OF PEOPLE WHEN I WAS YOUNG WHO NEED PROGRAMS LIKE THIS.

WE NEED TO PROTECT PROGRAMS LIKE THIS AND MAKE SURE THEY'RE AVAILABLE TO PEOPLE WHO NEED THEM.

WE NEED TO MAKE SURE WE WEED OUT THAT WHICH IS GOING ACCORDING TO NOT HOW ACCORDING TESTING PEOPLE FOR ASSETS AND MEANS AND ENSURE THAT THOSE WHO NEED THESEY BENEFITS TRULY NEED THEM.

THIS IS SOMETHING THAT IS GOING TO HAPPEN.

[ APPLAUSE ] 6 BECAUSE THE MORE WE DO THAT, THE MORE WE'LL HAVE TO DO FOR THOSE WHO TRULY NEED IT.

ADDITIONALLY AND YOU KNOW THIS, WE'RE GOING TO BE WORKING WITH SECRETARY BURWELL IN HEALTH AND HUMAN SERVICES.

SHE AND I HAVE HAD GOOD CONVERSATION, WE'RE GOING TO SIT ONE WITH CMS AT THE FEDERAL LEVEL, MARK BIRD WHISTLE FROM OUR STATE IS GOING TO BE WORKING WITH US AND HER THAT COME UP WITH A PLAN THAT IS ABLE TO COFFER THOSE IN NEED THAT IS AFFORDABLE TO US.

I WANT TO BE TO MAKE SOMETHING VERY CLEAR.

I BELIEVE WE CAN GET THIS DONE.

IF WE CANNOT GET IT TURN, WE WILL NOT HAVE THE ABILITY TO HAVE EXPANDED MEDICAID IN THE STATE OF KENTUCKY.

ASK SO MY CHALLENGE IS TO EACH OF YOU AS WE MOVE THROUGH THIS PROCESS ASK THOSE AT THAT TIME CMS AND THOSE WHO ARE WORK WITH US TO CRAFT THIS PLAN, COME IN GOOD FAITH, WITH THE EXPECTATION THAT WE WILL DO NEW AND THOUGHTFUL THINGS, CREATE CAN'T APPROACH TO MEDICAID IN THE COMMONWEALTH OF KENTUCKY THAT WILL BE A MODEL NOT ONLY FOR OUR OWN VIABILITY, OUR OWN FINANCIAL SUSTAINABILITY BUT FOR THE REST OF THE AMERICA TO FOLLOW AS WELL, AND IT WILL INCLUDE THINGS THAT WILL ALLOW US TO BE ABLE TO AFFORD THIS FOR YEARS AND YEARS TO COME BUT IT IS GOING TO RESULT THE SYSTEMIC CHANGE.

THIS IS WHAT'S GOING TO COME AND WE'RE GOING TO SIT DOWN AND HAVE THESE CONVERSATIONS IN THE MONTHS AHEAD AND BY THE MIDDLE OF YEAR WE'RE GOING TO KNOW WHETHER WE CAN COME UP WITH A SOLUTION THAT WILL LAL ALLOW THIS TO MOOF FORWARD.

WHAT YOU WILL SEE IN THIS BUDGET, THOUGH, IS WE ARE BUDGETING FOR NO CHANGE WHATSOEVER.

WE ARE BUDGETING ASSUMING THERE WAS GOING TO BE NO CHANGE.

THERE IS A COST TO EXPANDED MEDICAID THE WAY IT'S CURRENTLY STRUCTURED AND WE ARE ACCOUNTING FOR THOSE COSTS IN THIS BUDGET.

WE'RE NOT PRETENDING THEY DON'T EXIST.

THEY ARE THERE.

BUT I BELIEVE WE'LL COME UP WITH A BETTER SOLUTION AND THAT IS MY INTENTION.

WE TALKED ABOUT BUILDING INFRASTRUCTURE FOR THE FUTURE.

BUILDING THE INFRASTRUCTURE OF THE FUTURE IS DRIVEN LARGELY BY THE ROAD FUND, AND YOU ALL KNOW THIS TO BE THE DAYS.

ROAD FUND HAS BEEN DEPLETED QUITE BAIT OF LATE.

FRANKLY GAS PRICES ARE GOING DOWN AND THAT'S NOT GOOD FOR THE ROAD FUND BUT BECAUSES GAS PRICES ARE GOING DOWN I ENCOURAGE MORE OF YOU TO DRIVE MORE.

BURN THOSE GALLONS UP.

WE NEED THE MONEY.

IT'S ALL GOOD.

YOU'RE CONTRIBUTING TO A WORTHY CAUSE.

THE VERY THINGS WE'RE TALKING ABOUT AND OTHERS AS WELL.

BUT THE ROAD FUND DOLLARS BOTH FROM THE STATE VARIABLE EXCISE TAX AS WELL AS FROM THE FEDERAL HIGH TRUST FUND, THIS IS WHAT FUNDS OUR INFRASTRUCTURE.

ONE THING THAT WE HAVE IGNORED FOR A LONG TIME IS WE'VE IGNORED OUR BRIDGES.

NO ONE CUTS A RIBBON BY FIXING THE UNDERSIDE OF A BRIDGE.

NOBODY CALLS ROUND DOWN THERE, CUTS A RIBBON AND GETS RE-ELECTED ON THIS.

A LOT OF TIMES THEY GET IGNORED.

WE HAVE HUNDREDS AND HUNDREDS OF BRIDGES THAT ARE IN STATES OF DISREPAIR.

IN THIS BIISLAND BUDGET WEAR CALLING FOR NO LESS THAN 15% OF ALL OF THESE STATE DOLLARS TO BE ALLOCATED TO FIXING OUR BRIDGES.

NO LESS THAN 15%.

THAT'S A SIGNIFICANT SUM AND IT'S GOING TO ALLOW TO US ACCELERATEY MANY HAVE THESE BRIDGES THAT KEEP GETTING PUSHED TO THE BACK OF THE ROAD PLAN.

WE'RE ALSO GOING SHORE UP OUR TRUNKS.

THE I-65 CORRIDOR IS A WELL-KNOWN TRUNK A LOT OF LO YIS TICK CAPABILITIES.

I-75 IS BECOMING STRONGER STILL.

WE'RE GOING TO PLOW INTO THOSE, INVEST IN INTERCHANGES AND WIDENING OF LANES AND HELPING TO OFFSET SOME OF THE THANKS THAT CONTRIBUTED TO SOME OF OUR PROBLEMS THAT WE HAD.

WE'RE GOING TO WIDEN PARTS OF I-75.

BUT INTERCHANGES IN PLACE LIKE BULLYINGIT COIN COUNTY ON I-65 WHERE THERE IS GROWTH AND WE WANT JOBS TO COME.

WE TALKED ABOUT SO MUCH WITH THE ON IT.

65 AND I-75 CORRIDOR SO OFTEN WE FORGETS FORGET ABOUT THE I-7569 CORE DOOR.

THE WESTERN START OF THE STATE IS ASAPLING COMPARED TO SOME OF THE OTHERS.

THAT WILL CHANGE.

WE ARE GOING TO ACCELERATE FORWARD INTO THIS ROAD PLAN THE THINGS THAT WILL ALLOW US TO LOOK AT THE BRIDGE IN HENDERSON.

THESE THINGS YOU WILL SEE.

WE'RE GOING TO START TO STUDY THESE.

WE'RE GOING TO INVEST IN THAT HIGHWAY BECAUSE IT GOES FROM CANADA TO MEXICO.

IT'S THE ONLY NORTH-SOUTH ONE THIS SIDE OF THE ROCKIES THAT DOES SO.

THIS IS THE KIND OF THING WE NEED TO INVEST IN BECAUSE IT'S GOING TO OPEN UP WESTERN KENTUCKY IN EXTRAORDINARY WAYS.

WE'RE GOING TO INVEST IN THINGS LOOK THE BRENT SPENCE BRIDGE CORRIDOR FOR THOSE OF YOU WHO ARE FROM NORTHERN KENTUCKY.

QUESTIONS WHAT?

NO MATTER WHAT WE DO THERE, WHETHER IT'S ANOTHER BRIDGE, A ROUND ABOUT, WHATEVER THE CASE MIGHT BE, THAT BRIDGE IS GOING TO BE HERE AS LONG MOST OF US IN THIS ROOM IS GOING TO BE ALIVE, AND SO WE'RE GOBE TO PAINT THE DARN THING AND STOP PRETENDING THAT IT'S CALLING FALLING DOWN BECAUSE IT'S NOT.

WE'RE TO RAPE THE ENS BRENT SPENCE BRIDGE.

WE'RE GOING TO LOOK TO OFFSET SIMPLE THANKS THAT CAN BE DONE WITH LANES, ON RAMPS AND INGRESSES, EGRESSES, WEAVE $38 MILLION TO THAT PROJECT ALONE TO ENSURE THAT EVEN WHILE WE LOOK FOR LONGER, MORE PERMANENT SUS TALKING SOLUTIONS FOR THE LOCK TERM THAT WE WILL BE ADDRESSING THE NEAR TERM NEEDS AS WELL.

[ APPLAUSE ] WE'RE ALSO GOING TO TAKE $10 MILLION OUT OF THE GENERAL BUDGET AND ALLOCATE TO IT OUR AIRPORTS, TO OUR AVIATION NEEDS.

WE HAVE A TREMENDOUS AMOUNT OF DEFERRED MAINTENANCE AT OUR 59 AIRPORTS IN THIS STATE.

WE'RE GOING TO ALLOCATE $10 MILLION PER YEAR TO THAT, AND WE ARE NOT GOING TO SWEEP ONE CENT OUT OF THE THOSE DOLLARS THAT COME FROM THE FUEL SURCHARGE ALREADY BEING ASSESSED ON JET FUEL THIS THIS STATE, AND THAT'S GOING TO ALLOW TO US ADDRESS THIS PROBLEM.

[ APPLAUSE ] IT'S IMPORTANT TO REALIZE, TOO, ACTUALLY AS IT RELATES TO AIRPORTS, SOME PEOPLE MAY THINK WHY ARE WE FOCUSING ON THAT?

THINK ABOUT ALL THESE PEOPLE THAT WE WANT TO COME TO KENTUCKY, TO BRING THEIR COMPANIES TO KENTUCKY.

HOW DO THEY GET HERE?

THEY FLY IN ON THEIR COPTER JETS AND LAND AT ONE OF OUR AIRPORTS.

THEIR IMPRESSION OF THE AREAS IN YOUR COMMUNITIES ASK LARGELY DRIVEN BY THAT FIRST IMPRESSION.

AND SO WE'RE GOING TO INVEST IN THAT FRACTURE BECAUSE IT'S IMPORTANT.

ALL OF THIS IS BEING DONE, THESE EIGHT THINGS WE'VE DISCUSSED, SO THAT WE CAN SAVE FOR A DOWN PAYMENT FOR OUR FUTURE.

WE'VE GOT TO BE BETTER STEWARDS OF THE TAXPAYERS' DOLLAR.

WE TALKED ABOUT THE FACT THAT THIS BUDGET WILL PUT $1.1 BILLION IN NEW DOLLARS TO OUR PENSION PROBLEM.

THIS IS WHILE WE ARE STILL GOING TO BE WORKING TO FIGURE OUT THE LOCK-TERM SOLUTIONS, STRUCTURAL CHANGES.

WE ARE NOT GOING TO WAIT.

WE ARE GOING TO PUT $1.1 BILLION IN.

WE ARE GOING TO SET ASIDE $1 BILLION IN FUTURE SPENDING FOR CONTRIBUTIONS AND FOR SAVINGS.

AND WHAT I MEAN BY THAT $1 BILLION IS MANY OF YOU ARE AWARE OF THE FACT THAT THERE ARE, WHETHER IT'S IN THE HEALTH FUNDS, SOME HUNDREDS MILLIONS OF DOLLARS THAT ACCRUE THAT EVEN PEOPLE GET EXCITED ABOUT SWEEPING AND SPENDING ON THINGS.

WE'RE NOT GOING TO SWEEP HELP THIS IS AN ANTI-SWEEPING BILL.

YOU'RE GOING TO SEE THAT WHEN YOU SEE THE NUMBERS.

THERE WILL BE SO MUCH LESS MONEY SWEPT THIS ANY BUDGET, ANYONE IN THIS ROOM HAS EVER BEEN A PART OF THAT IT WILL BALANCE OF YOU AS TO HOW WE CAN -- THAT IT WILL B OF A EL YOU AS TO HOW WE CAN GET IT DONE.

[ APPLAUSE ] BUT WE'RE GOING TO DO IT BECAUSE THE PEOPLE HAVE BEEN TOLD THAT THESE FEES AND THESE ASSESSMENTS AND THESE TAXES ARE FOR SPECIFIC PURPOSES AND THAT'S WHAT THEY'RE GOING TO BE USED FOR.

WE'RE GOING TO STOP PLAYING GAMES WITH THESE THERE'S, STOP BALANCING THE BUDGET BY SWEEPING DOLLARS.

AND SO WHETHER IT'S SOME HUNDREDS OF MILLIONS OF DOLLARS OF HEALTH INSURANCE POLICY MONEYS THAT HAVE ACCRUED OR WHETHER IT'S SETTLEMENT WITH ONLINE POKER COMPANIES OR WHETHER IT'S PHARMACEUTICAL COMPANIES OR WHATEVER THE CASE MAY BE THAT WE HAVE SETTLEMENTS WITH AND CHUNKS OF MONEY WILL COME IN, MY PROPOSAL AND WHAT IS GOING TO HAPPEN WITH THESE DOLLARS BY EXECUTIVE ACTION OVER THE NEXT FOUR YEARS AND WHAT I'M GOING TO CHALLENGE BOTH THE HOUSE AND THE SENATE TO DO TO CODIFY, TO MAKE LEGALLY BINDING LEGISLATIVELY, IS THAT WE'RE GOING TO TAKE THOSE DOLLARS AND RATHER DISBURSE THEM, RATHER THAN DROP THEM INTO FILLING HOLES THAT EXIST, WE GO GOING TO PUT THEM INTO TO A PERMANENT FUND.

IT'S GOING TO BE AN ANTI-SWEEPABLE PERMANENT FUND.

IT IS GOING TO BE A FUND THAT IS GOING TO BE A DEDICATED REVENUE SOURCE TO THESE PENSION PROBLEMS THAT WE HAVE UNTIL THE PENSION PROBLEMS ARE GONE, AND THEN WE WILL BE AUTOMOBILE TO USE IT FOR ALL THESE OTHER THINGS THAT WE WANT.

IT'S GOING TO BE MANY YEARS, BEYOND THE LIFETIME OF MANY IN THIS ROOM, BEFORE WE HAVE DUG OUR WAY OUT OF THE PENSION OBLIGATION THAT WEAVE, BUT WE ARE GOING TO TAKE THESE HUNDREDS OF MILLIONS OR DOLLARS AND/OR TENSE OF MILLIONS ON AND/OR MILLIONS OF DOLLARS EVERY TIME THERE'S A SETTLE AND DROP THESE INTO THE PERMANENT FUND.

IT'S GOING TO BE MANAGED PROFESSIONALLY IN A WAY THAT THE PROCEEDS BASED ON A SPECIFICALLY PREDETERMINED LEGISLATIVELY DETERMINED, IS MY HOPE AND BELIEF, SPENDING POLICY, THE THAT DEDICATES THOSE DOLLARS TO WHY YOU SETTING THE PENSION OBLIGATION AND ALSO CONTRIBUTING TO A RAINY DAY FUND.

THIS IS HOW WE ARE GOING TO GET OUR HOUSE IN ORDER.

THIS IS WHAT THE OUTSIDE WORLD DEMANDS OF US.

THIS IS WHAT THE CREDIT RATED AGENCIES ARE BEGGING FOR FROM US.

THEY WANT TO SEE THAT WE ACTUALLY ARE TAKING THIS PROBLEM SERIOUSLY.

THIS IS WHAT THEY WANT TO SEE.

SO MANY OF THE THINGS WE WANT ARE GOING TO COME ABOUT AS A RESULT OF US GETTING OUR FINANCIAL HOUSE IN ORDER.

WE ARE GOING TO PUT THAT MONEY IN A SWEEP-FREE ZONE.

I CAN KEEP IT THERE FOR FOUR YEARS, BUT I'D RATHER THAT WE WORK TOGETHER AS LEGISLATORS TO ENSURE THAT IT STAYS THERE FOREVER FOR THE BETTERMENT OF THE PEOPLE THAT WE KEPT.

[ APPLAUSE ] -- THAT WE REPRESENT.

[ APPLAUSE ] THERE ARE EASY SOLUTIONS.

I THOUGHT ABOUT BRINGING ONE OF THOSE EASY BUT HONEST.

PEOPLE OFTEN SOMETIMES CYNICALLY WILL IS THAT IT FRANKFORT SOLUTION IS WE TAKE THAT MONEY SPEND IT.

WE'RE BETTER THAN THAT.

SOME OF YOU HAVE SERVED IN THIS BODY FOR A LONG TIME, AND I'LL TELL YOU WHAT, WE ARE BETTER THAN THIS.

LET'S BE GOOD STEWARDS, LET'S WORK TOGETHER, LET'S BE A FAMILY, LET'S TALK ABOUT THESE THINGS AS IF IT IS OUR OWN MONEY BECAUSE IT IS.

AND SO I CHALLENGE US TO WORK TOGETHER, ALL OF US REPRESENTING EVERY CORNER OF THIS STATE, EVERY CONSTITUENTSY.

LOOK AROUND THIS ROOM.

WE ARE KENTUCKY.

LOOK AROUND THIS ROOM.

WE'RE BLACK, WE'RE WHITE, YOUNG, OLD, MALE, FEMALE, FROM CITIES, RURAL PARTS OF OUR STATE.

WE REPRESENT ALL THAT KENTUCKY IS.

THIS IS WHO WE ARE.

SPEND THE MONEY LIKE IT'S YOUR OWN MONEY.

BUDGET FOR IT LIKE IT'S YOUR OWN.

THAT'S WHAT WE'RE DOING IN THIS BUDGET.

WE CAN BECOME THE BEST VERSION OF OURSELVES.

WE OWE NOTHING LESS TO THOSE THAT ARE TO FOLLOW US.

THIS IS MY CHALLENGE TO YOU.

LET'S RISE TO THIS CHALLENGE.

WE CAN DO THIS.

THIS IS OUR CAPABILITY.

I'VE SAID IT MANY TIMES.

WE HAVE TALKED ABOUT IT.

OUR STATE MOTTO THAT'S ON THE FLAG BEHIND ME "UNITED WE STAND, DIVIDED WE FALL."

YOU'RE GOING TO BE TIERED OF HEARING ME SAY THAT OVER THE COURSE OF THE NEXT FOYER YEARS BUT EVERY TIME I ADDRESS YOU I'M GOING TO REMIND YOU THE FACT THAT IS OUR STATE MOTTO.

UNITED WE STAND.

DIVIDED WE FALL.

LET'S BE UNITED.

LET'S STAND TOGETHER.

LET'S STAND STRONG.

I CHALLENGE YOU, PLEASE, TO THINK OUTSIDE THE BOX AS YOU GO THROUGH THIS BUDGET PROCESS.

I'VE PUT FORWARD A BUDGET THAT FRANKLY SHOULD MAKE IT EASY FOR THE HOUSE AND SENATE TO AGREE.

WE HAVE EXEMPTED THINGS THAT ARE CONTENTIOUS.

WE HAVE FUNDED THINGS THAT EVERYBODY AGREES NEED TO BE FUNDED.

WE'VE MADE IT SIMPLE P THIS WILL AFFORD YOU THE ABILITY TO GET THIS DONE IN SHORT ORDER AND ACCOMPLISH A WHOLE LOT OF OTHER GOOD LEGISLATIVE THINGS THAT YOU'RE NOW FREE TO GO ABOUT NOW THAT YOU KNOW WHO IS OR WHO THAN THE ISN'T RUNNING AGAINST YOU IN THE UPCOMING YEAR, SO YOU CAN GET BACK TO IT.

[ LAUGHTER ] I WOULD LETTERS ASK YOU THIS THIS ROOM AND THOSE OF YOU THAT ARE WATCHING, THOSE OF YOU IN THE GALLERY AND THOSE THAT YOU REPRESENT, BE PATIENT WITH US.

THIS IS NOT A SPRINT.

THERE ARE MANY THINGS THAT ARE NOT IN THIS BUDGET.

ONE THING YOU WILL NOT SEE IN THIS BUDGET ARE ANY TAX CUTS.

I WOULD LOVE TO SEE TAX CUTS.

SO WOULD MANY OF YOU.

SO WOULD MANY OF YOU WATCHING.

WE CAN'T AFFORD THEM RIGHT NOW.

AND SO WHILE THERE ARE THING I CAMPAIGNED ON AND THINGS I WOULD LIKE TO SEE COME TO FRUITION, WE'VE GOT TO BE FRAG MATIC AND ADDRESS THE REAL NEED WHICH IS GETTING OUR FINANCIAL FOUNDATION IN PLACE, AND SO THERE ARE NOT THINGS IN HERE THAT I WOULD LIKE TO SEE COME.

WE HAVE NOT DISCUSSED OTHER THINGS THAT'LL BE TOPICAL BUT BE PATIENT WITH US.

IF YOU ELECTED US EXPECTING THIS GO SOMETHING TO BE DONE IMMEDIATELY BE PATIENT.

WE HAVE FOUR YEARS.

WE'LL GET THINGS DONE.

BUT I APPRECIATE THOSE OF YOU WHO ARE HERE.

I'M ASKING YOU ALSO WHO GIVE USON FEEDBACK JUST AS WE'VE GOTTEN FROM SO MANY WHOSE LETTERS I READ TONIGHT.

CONTINUE TO GIVE US HONESTY.

THIS WASN'T AN EXERCISE FOR THE PURPOSE OF THIS DISCUSSION.

THIS WAS SOMETHING THAT KEEP USING THAT SAME EMAIL ADDRESS, SEND US IDEAS FOR FOUR YEARS, KEEP THEM COMING.

WE LITERALLY HAVE MEMBERS OF OUR TEAM THAT WILL READ EVERY SINGLE ONE OF THESE, AND SO MANY OF YOU, THE THOUSANDS OF YOU SHOULD ULTIMATELY START TO HEAR FROM MEMBERS OF YOUR OWN TEAM, INCLUDING THE CABINET SECRETARIES IN THE AREAS IN WHICH YOU WORK WHO ARE GOING TO REACH OUT TO YOU INDIVIDUALLY AND PERSONALLY AND THANK YOU FOR REACHING OUT TO US AND GIVING US IDEAS, AND WE WILL ENACT AND ACT UPON AS MANY AS OF THOSE AS WE POSSIBLY CAN.

BE PATIENT WITH US.

CONTINUE TO COMMUNICATE WITH US.

THINK OUTSIDE THE BOX.

WORK COLLABORATIVELY TOGETHER.

BE A FAMILY.

WORK WITH EACH OTHER.

HAVE EACH OTHER'S BACK.

LET PEOPLE ALL OVER AMERICA KNOW THAT KENTUCKIANS TAKE CARE OF EACH OTHER.

WE WERE THE MODEL FOR AMERICA DURING THIS SNOWSTORM.

WE WERE.

AND AGAIN, MY HAT'S OFF TO THOSE INDIVIDUALS FROM OUR STATE TROOPERS TO OUR PLOW DRIVERS TO OUR CONSTRUCTION WORKERS WHO WERE ACTUALLY USING THEIR TALENTS IN WAYS THAT WERE BEING EMPLOYED, TO THOSE THAT WERE THE GARAGES, TO THE PEOPLE THAT WERE RELOADING THE SALT TO ALL OF THE THOSE WHO PATIENTLY AVOIDED THE ROADS SO THAT THEY COULD GET ABOUT THEIR BUSINESS.

WE WORKED TOGETHER IN A WAY THAT THE ENTIRE COUNTRY LOOKED AT AND MARVELED AT.

YOU LOOK AT THE MAYHEM THAT WAS UNLEASHED ON SO MANY OTHER STATES BY THIS VERY SAME STORM.

WE DID IT WELL.

KEEP DOING IT WELL.

I LOVE KENTUCKY.

I DON'T KNOW ABOUT YOU ALL, I LOVE KENTUCKY.

I BELIEVE IN KENTUCKY.

I BELIEVE IN YOUR ABILITY TO MAKE THIS A GREAT, GREAT PLACE, NOT ONLY TOW CONTINUE TO LIVE BUT FOR GENERATIONS TO COME TO WANT TO COME AND LIVE, FOR BUSINESSES TO THRIVE AND FLOURISH.

LET'S DO IT BY HAVING EACH OTHER'S WALK.

I APPRECIATE YOU BEING HERE.

I THANK YOU FOR YOUR PATIENCE IN LISTENING TO ME GO INTO MORE DETAIL THAN PERHAPS YOU WANTED.

WE WILL BE RELEASING THIS BUDGET TONIGHT.

YOU CAN GO THROUGH IT IN EVEN GREATER DETAIL.

BUT AGAIN I CLOSE WITH A FINAL CHALLENGE TO OUR HOUSE AND SENATE.

PASS THIS BUDGET.

IF THE THINGS I'VE SAID TONIGHT, THE FOCUS THAT WE PUT ON, THE PRIORITIES OF INVESTIGATING IN OUR PENSION OBLIGATIONS AND IN PAY RAISES FOR THOSE WHO ARE PROTECTING US AND OUR MOST VULNERABLE CITIZENS, THE IDEA OF LIVING WITHIN OUR MEANS AND NOT SPENDING MONEY INDISCRIMINATELY, IF THESE THINGS APPEAL TO YOU AND YOU'RE WATCHING TONIGHT, THOSE OF YOU THEY'RE HERE IN THE AUDIENCE WITH US TONIGHT, LIGHT UP THE PHONES FOR YOUR LEGISLATORS, CALL THEM, EMAIL THEM, CALLING IS BETTER BECAUSE THEY GET LITTLE STACKS OF PAPER AND COME AND THEY GET NERVOUS WHEN THEY SEE LOTS OF PAPER PILED UP.

CALL THEM.

EMAIL THEM.

STOP BY AND SEE THEM.

LET THEM CHO YOU WANT US TO SPEND -- KNOW YOU WANT US TO SPEND YOUR MONEY AS IF IT IS YOUR MONEY BECAUSE IT IS.

THANK YOU AND GOD BLESS YOU.

[ APPLAUSE ] >> Bill: SENATOR MATT BENCH AND HIS FIRST STATE OF THE COMMONLY BUDGET ADDRESS LASTED A LITTLE BIT OVER AN HOUR.

I WOULD SAY ABOUT AN HOUR AND SEVEN MINUTES UNOFFICIALLY.

AL CROSS JOINS ME, THE DIRECTOR OF THE INSTITUTE FOR RURAL JOURNALISM AND COMMUNITY ISSUES AT THE UNIVERSITY OF KENTUCKY.

IF YOU WERE WRITING, AS YOU DO, AND AS YOU TEACH AT THE UNIVERSITY OF KENTUCKY, A HEADLINE ON THIS ADDRESS BY GOVERNOR BEVIN TONIGHT, YOU HAVE YOUR CHOICE OF MANY, WHAT WOULD IT BE THOUGH.

>> A REALLY BIG HEADLINE, BIG TYPE, 9% BUDGET CUT WITH AN ASTERISK, A LITTLE LINE BELOW SAYING, BASIC SCHOOL FUNDING, OTHER KEY AREAS EXCEPTED.

ACTUAL TOTAL CUT 2.5%.

>> AND EXPLAIN THAT TO US.

>> WELL, WHEN YOU EXEMPT -- >> WE DID HEAR HIM TALKING ABOUT HAD.

>> ELEMENTARY AND SECONDARY EDUCATION FUND IS OVER 40% OF THE BUDGET.

YOU COMPEL THAT AND ADD ANOTHER $39 MILLION LIKE WE'RE GOING TO BECAUSE OF ANTICIPATED NEW STUDENT ENROLLMENT, AND SOME OTHER INCREASES THAT HE HAD, LOTS OF OTHER EXCEPTIONS, AND YOU'VE GOT TO KEEP FUNDING PENSIONS AND YOU'VE GOT TO EXEMPT MEDICAID, IT MEANS, WHEN IT COMES TO TOTAL BUDGET, IT'S ONLY 2.5, BUT FORTE LOT OF STATE AGENCIES, CERTAINLY MOST STATE AGENCIES, THEY'RE GOING TO SUFFER ANOTHER 9% CUT, AND IT'S GOING TO BEGIN IMMEDIATELY.

HE WILL ADMINISTRATIVELY IMPOSE THAT IN THE CURRENT FISCAL YEAR, WHICH ENDS JUNE 30th, AND HE SAYS 4.5% BUT WE'RE ALREADY THROUGH MOST OF JANUARY, SO THE RATE'S ACTUALLY WILL BE A LITTLE HIGHER.

AND THEN NEXT YEAR THE BUDGET WILL BE 9% LESS THAN WHAT IT WAS BUDGETED CURRENTLY.

HE'S GOING TO ADD 9 ON THE 4.5 BUT THE NEXT TWO-YEAR BUDGET, MOST STATE AGENCIES WILL GET 9% LESS THAN THEY GOT IN THE CURRENT TWO-YEAR BUDGET.

>> WE'RE ANXIOUSLY AWAITING REMARKS BY SPEAKER STUMBO AND PRESIDENT STIVERS.

RENEE SHAW WILL BE TALKING WITH THEM IN JUST A MOMENT.

BUT AS YOU LISTENED TO THE ENTIRE TIFF THIS, WHAT DO YOU THINK THEY WERE HEARING OUT OF THIS?

THE ONE MESSAGE THAT HE BEGAN WITH AND LEFT THE AUDIENCE AND THE HOUSE CHAMBER WITH IS PASS THIS BUDGET.

DID THEY HEAR THAT?

>> WELL, YEAH.

I'M SURE THEY DID, AND THEY KNOW THEY'VE GOT TO PASS A BUDGET.

BUT BEVIN CAN WIN THE FUNDAMENTAL ARGUMENT ABOUT STUMBO AND THE HOUSE DEMOCRATS SAY INTEREST RATES ARE LOW, LET'S BORROW TO FILL THIS PENSION HOLE FOR NOW.

>> THAT'S THE $3.3 BILLION THAT THEY WANT TO BOND.

>> YEAH.

AND THEN WE CAN ACTUALLY MAKE A LITTLE MONEY ON IT BECAUSE WE GO INVEST IT.

THAT'S ACTUALLY A FAIRLY GOOD ARGUMENT, BUT YOU'RE BETTING ON THE MARKET.

IS THE MARKET GOING TO BEHAVE IN THE WAY THAT YOU WANT IT?

AND IN THE BUDGET BRIEFING TODAY, I ASKED THE GOVERNOR, WHAT IN YOUR BACKGROUND AS A FINANCIAL MANAGER INFORMED YOUR APPROACH TO THIS BUDGET?

AND I KIND OF HAD THAT IN THE BACK OF MY MIND.

I DIDN'T WANT TO THROW THE BONDING THING OUT.

HE DIDN'T REALLY RESPOND IN THAT TYPE OF DETAIL.

HE TALKED GROWING UP IN POVERTY AND SO ON.

I'D REALLY LIKE TO KNOW.

HE DID SAY IN RESPONSE TO MY QUESTION THAT HE HAD CONSULTED WITH BOND RATINGS AGENCIES, STANDARD & POOR'S HAS REDUCED OUR CREDIT RATING AND HE SAID MOODY'S IS CONSIDERING DOING LIES WISE AND HE SAID THESE RATING AGENCIES WANT TO SEE US THAT WE'RE SERIOUS ABOUT TOPIC SOMETHING.

THE KEY LINE FOR ME IN THAT BRIEFING, WHICH I DON'T THINK HE REALLY GAVE IN THE SPEECH, WAS THIS ENTIRE BUDGET IS ABOUT SAVING OUR PENSION SYSTEM.

YOU KNOW, WHEN YOU GIVE A SPEECH ABOUT A BUDGET, THERE'S LOTS OF THINGS YOU CAN TALK ABOUT.

I'M SURE HE WANTED TO TALK ABOUT THE THINGS HE'S GOING TO DO FOR PEOPLE INSTEAD OF TO PEOPLE.

BUT I DON'T THINK HE CLEARLY ENOUGH COMMUNICATED THE DIRE STATUS OF THE PENSION SYSTEM.

IT IS ONE OF THE WORST FUNDED IN THE COUNTRY AND ACTION IS NEEDED, AND THE LAST THREE GOVERNORS HAVE, YOU KNOW, LEFT US IN THIS LURCH.

AND HE IS GOT TO DO SOMETHING WITH IT.

>> AL, WE UNDERSTAND THAT RENEE SHAW IS STANDING BY WITH SPEAKER STUMBO AND PRESIDENT STIVERS, AND WE'LL GO DOWN TO THE HOUSE CHAMBER TO RENEE SHAW.

>> Renee: THANK YOU, BILL.

THANK YOU, AL.

WE ARE WITH HOUSE SPEAKER GREG STUMBO AND SENATE PRESIDENT ROBERT STIVERS, AS USUAL, TO GET THEIR REACTION TO THE STATE OF COMMONWEALTH BUDGET ADDRESS.

THIS BASS A HYBRID MIXTURE OF BOTH THE COMMONWEALTH ADDRESS AND BUDGET ADDRESS.

WE GOT IDEAS OF HIS LEGISLATIVE PRIORITIES, SENATOR STIVERS BUT ALSO GOT A BIG CHUNK OF WHAT HIS BUDGET PRIORITIES ARE.

SO WHAT DID YOU WALK AWAY WITH TONIGHT SAYING THE ONE THING THAT GOV BEVIN WANTS TO ACCOMPLISH IS IN.

>> HE WANTS TO SOLVE THE PENSION PROBLEM THAT WE HAVE IN THIS STATE WITHOUT SACRIFICING THE K-12 FUNDING.

>> AND FOR YOU, SPEAKER STUMBO, WHAT DID YOU HEAR?

PENSION OBLIGATION AND UNFUNDED LIABILITY SOLUTIONS.

THAT'S WHAT YOU'RE WALKING AWAY WITH TONIGHT AS HIS NUMBER ONE PRIORITY?

>> WELL, I THOUGHT IT WAS A STEP IN THE RIGHT DIRECTION.

THE PROBLEM, RENEE, IS SOME OF THOSE NUMBERS ARE NOT EXACTLY -- WE HAVE TO MAKE THE EMPLOYER CONTRIBUTION, AND ABOUT TWO-THIRDS OF WHAT HE TALKED ABOUT WAS THE EMPLOYER CONTRIBUTION.

THAT DOESN'T ADDRESS THE UNFUNDED LIABILITY.

NOW, I'M GLAD THAT HE HAS RECOMMENDED THAT WE PLACE SOME ADDITIONAL MONEYS TOWARD ADDRESSING THAT, BUT IT'S ONLY ABOUT 10% OF WHAT'S NEEDED.

SO THERE'S A BIGGER PROBLEM OUT THERE.

I THINK IT'S A STEP IN THE RIGHT DIRECTION.

I LOOK FORWARD TO LOOKING AT IT AND WORKING WITH HIM AND THE PRESIDENT OF THE SENATE TRYING TO COME UP WITH SOME SOLUTIONS.

I DON'T THINK THAT IT'S ENOUGH AS FAR AS THE BONDING AGENCIES ARE CONCERNED.

I THINK THEY'RE LOOKING FOR SOMETHING MORE SIGNIFICANT THAN THAT.

SO -- BUT I'M GLAD THAT HE PRIORITIZED IT.

>> AND YOU HAVE A BILL THAT WOULD ALLOW FOR $3.3 BILLION IN BONDING FOR THE TEACHERS RETIREMENT SYSTEM, AND HE MADE THE COMMENT TONIGHT THAT WE CANNOT BORROW OURSELVES OUT OF DEBT.

STOW WAS THAT A DIRECT COMMENT TO SPEAKER STUMBO'S LAN FOR THE KTRS SYSTEM?

>> IT COULD HAVE BEEN.

BUT HE ALSO TALKED ABOUT BUYING THINKS NOURS.

I DON'T KNOW ANYBODY THAT SAFES ENOUGH MONEY THIS THEY CAN BUY THEIR FIRST HOUSE WITHOUT A MORTGAGE.

THIS IS AN OBLIGATION THAT WE OWE.

THE THING THAT MAKE IS IT SO ATTRACTIVE IS THE MARKET IS SO FAVORABLE.

FOR THE LAST 20 YEARS THE TEACHERS RETIREMENT PENSION HAS AVERAGED 7.5% RETURN ON THEIR INVESTMENT SO THEY'VE DONE A GOOD JOB WITH THEIR MONEY MANAGEMENT.

WE CAN SELL BONDS FOR SOMEWHERE ABOUT 3.75, 3 WANT 85, SO YOU CAN SEE THE SPREAD OF ABOUT 3.5% AND ANY PRUDENT MONEY MARKET PERSON, MANAGER, FINANCIAL INSTITUTION, MANAGER WILL TELL YOU IF YOU CAN SAVE THAT MONEY AND REFINANCE YOUR HOME AND SAVE 3%, THEN THAT'S WHAT YOU SHOULD DO.

THAT'S WHAT WE'RE TALKING ABOUT.

WE OWE THIS MONEY ANYHOW.

IT'S JUST A MATTER OF HOW ARE WE GOING TO PAY.

>> IT SENATOR STIVERS, TOMORROW SENATOR JOE BONE, CHAIR OF THE STATE LOCAL GOVERNMENT COMMITTEE, HE IS GOING TO BE HAVING A HEARING AS SCHEDULED ON HIS SB 2 WHICH DEALS WITH THIS ISSUE, CORRECT?

HOW DOES IT DIFFER FROM WHAT GOVERNOR BENCH HAS PROPOSED SO FAR?

>> I THINK IT'S LOOKING MORE TO THE MAKE-UP OF THE BODIES THAT HAVE INVESTED AND CONTROLLED THE SYSTEM.

THE SPEAKER AND I HAVE HAD THIS DISCUSSION ON SEVERAL OCCASIONS, THE PRYOR GOVERNOR.

WE DON'T HAVE ENOUGH INSIGHT -- THE PRIOR GOVERNOR.

WE DON'T HAVE ENOUGH INSIGHT TO HAVE APPROPRIATE OVERSIGHT BECAUSE THEY KEEP THE RECORDS CONFIDENTIAL AND THEY HAVE SAID THEY BE EXEMPTED FROM OPEN RECORDS REQUESTS AND EVEN AS THE SPEAKER WAS THE ATTORNEY GENERAL, THEY REFUSED US AND HIM ACCESS TO THOSE RECORDS.

SO THAT'S THE STEP THAT SENATE BILL 2 IS GOING TO TAKE.

WE WANT TO KNOW WHAT IS GOING ON BEHIND THE SCENES SO WE CAN MAKE APPROPRIATE DECISIONS.

AND AS THE SPEAKER SAID, EVERYBODY RECOGNIZES WE DO HAVE TO MAKE A CONTRIBUTION TO THE SYSTEM.

THE METHODOLOGY AND MANNER OF HOW WE DO IT WILL WHAT BE BE IN CONTROVERSY.

>> MANY PEOPLE MAY BE SURPRISED WHO HAVE NOT HEARD THAT HE WAS CALLING FOR ANY STRUCTURAL OR FUNDAMENTAL CHANGE TO THE RETIREMENT SYSTEMS, THAT HE DIDN'T CALL FOR A 401(K)-STYLE FOR EXISTING CURRENT WORKERS, ET CETERA, ET CETERA.

ARE YOU SURPRISED THAT HE IS SAYING LET'S DO AN AUDIT FIRST BY AN INDEPENDENT SOURCE OF EXPERTS AND THEN DECIDE WHAT YOU FUNDAMENTAL STRUCTURAL CHANGES THE SYSTEM NEEDS?

>> I THINK HE IS DOING THAT.

IT DOES NOT SURPRISE ME.

THERE ARE VARIOUS THINGS WERE NOD NOT LOOKED AT DURING THE PAST YEAR, AND THE GROUP THAT INVESTIGATED THE SYSTEMS, I THINK HE WANTS TO GO IN DEEPER, HE WANTS TO LOOK, HE WANTS TO HAVE THIS ABILITY THAT YOU WILL SEE THAT WE HOPE WILL BE GIVEN TO US AS THE POLICYMAKERS AND THE EXECUTIVE BRANCH TO SEE EXACTLY HOW DEEP THE PROBLEM IS.

NOBODY HAS REALLY GIVEN US AN INDEPENDENT EXAMINATION OF THE SYSTEM AND WHAT THE UNFUNDED LIABILITY IS IN AN APPROPRIATE WAY TO SOLVE THAT.

>> I. IN THE FEW MINUTES WE HAVE REMAINING LET'S TALK ABOUT THE CUTS BE WITH SPEAKER STUMBO, THAT HE IS RECOMMENDING 4.5% THE END OF THIS FISCAL YEAR AND 9% OVER THE BUY EP BIEBBIUM.

WHAT'S YOUR THOUGHTS OH THAT?

>> HE WAS TRUTHFUL.

THE EXEMPTIONS ARE THE BIGGEST PART OF THE DOLLAR, AND I DIDN'T GET THE WHOLE LIST OF EXEMPTIONS.

I WAS GLAD THAT HE DIDN'T CUT ANYTHING IN OUR ZEKE FORMULA.

I THINK WE SHOULD HAVE ADDED MONEY TO OUR SEEK FORMULA.

IT'S BEEN ABOUT EIGHT YEARS SINCE WE'VE BEEN FINANCIALLY ABLE TO DO THAT.

SO IT WILL BE INTERESTING TO SEE WHERE THAT MONEY IS COMING FROM.

BUT IT'S HIS GOVERNMENT TO RUN.

IF HE THINKS HIS AGENCIES CAN SUSTAIN THEMSELVES AND WORK WITH THAT TYPE OF A REDUCTION, I DON'T KNOW THAT WE'LL HAVE ANY PROBLEM WITH THAT.

>> THE HIGHER ED FOLKS MAY HAVE BEEN A LITTLE NERVOUS TONIGHT, SPEAKER STUMBO BE WITH UPON HEARING HIS RECOMMENDATION.

HOW DO YOU THINK THAT'S GOING TO FARE EVEN THOUGH THEY WERE COZYING UP TO PERFORMANCE BASED FUNDING.

THIS IS A DIFFERENT APPROACH THAN BOB KING WOULD HAVE LIKED.

>> IT'S A DIFFERENT APPROACH BUT IT'S SOMETHING OTHER STATES ARE DOING, WEST VIRGINIA IS DOING IT.

I DON'T HAVE ANY PROBLEM WITH OUTCOME-BASED FUNDING.

THAT'S THE WAY IT REALLY SHOULD BE.

I THINK IN HIGHER EDUCATION.

I'M THANKFUL THAT THE GOVERNOR IS GOING TO TALK THAT STEP FORWARD.

I ALWAYS THOUGHT IT WAS SOMETHING WE SHOULD BE DOING A LONG TIME AGO.

>> YOUR COMMENT SCUTS AND ALSO TO HIGHER EDUCATION, THE OUTCELTIC WOMAN FOR PERFORMANCE BASED FUNDING.

>> WHEN YOU LOOK AT THE EXCEPTIONS LISTED, AS THE SPEAKER SAID, SEEK, PUBLIC PROTECTION, THOSE AREAS, WE CAN'T DO ANYTHING WITH THE DEBT BECAUSE YOU CAN'T REDUCE YOUR BOND PAYMENTS.

YOU SEE THAT IT'S ONLY AN EFFECTIVE MAYBE 2.5% CUT OVERALL TO THE BUDGET BECAUSE SO MUCH OF IT IS LOCKED IN IN THAT AREA.

AS TO HIGHER EDUCATION, I THINK PEOPLE NEED TO UNDERSTAND THIS.

HIGHER EDUCATION HAS MULTIPLE FUNDING SOURCES.

ONLY ONE PART OF IT IS WHAT THE GENERAL FUND APPROPRIATION IS TO THEM.

SO THEY GENERATE THE BULK OF THEIR REVENUES THROUGH GRANT DOLLARS, TUITION FEES, FEES BEING LIKE THAT WHICH IS ASSESSED ON DORMS AND FOOD SERVICES, SO THIS ISN'T A 9% CUT TO THEIR BUDGET, IT IS A 9% CUT TO THEIR APPROPRIATION THAT WE GIVE THEM, WHICH IS ONLY ABOUT A THIRD AT BEST OF THEIR TOTAL BUDGET.

>> KYNECT, HE WRAPPED UP PROBABLY THE SUBSTANCE OF HIS SPEECH TONIGHT TALKING ABOUT KICK IT, THAT THIS TIME NEXT YEAR I THINK HE'S KEPT ATING THAT PROBLEM WILL NO LONGER EXIST.

YOUR THOUGHTS ON THE VIABILITY OF THAT SOLUTION OR THAT PROPOSAL.

>> WELL, WE HAVE SEEN OVER THE LAST SEVERAL MONTHS THE TWO COMPONENTS OF KYNECT, ONE BEING MEDICAID AND ONE BEING THE SUBSIDIZED HEALTH CARE POLICIES.

WE HAVE SEASON THE CO-OP, ONE CO-OP CLAPS, AND THE SPEAKER AND I HAVE HAD A LITTLE BIT OF A DISAGREEMENT.

WE'RE SEEING A LOT OF AND GETTING A LOT OF INFORMATION ABOUT THE INSURANCE PREMIUMS FOR THAT GROUP GOING UP.

IN FACT, I HAD A RELATIVE OF MINE CALL ME AND SAY THAT IT WENT UP OVER 1,000 AIDS MONTH AND I WAS TRYING TO HELP THEM FIND A SOLUTION.

THAT IS GOING TO GO TO THE FEDERAL EXCHANGE.

THOSE INDIVIDUALS WILL BE ABLE TO OBTAIN THEIR INSURANCE.

AS TO THE MEDICAID PORTION, YOU SEE WHAT WE'RE HAVING TO BUDGET AT THIS TIME, IT'S CLOSE TO A QUARTER BILLION DOLLARS OVER THE BIENNIAL PERIOD, AND HE WANTS NOT TO GET RID OF THAT COVERAGE FOR THOSE INDIVIDUALS BUT LOOK AT A DIFFERENT TYPE OF MODEL AND HE IS BUDGETING THIS TYPE OF FUNDING FOR THE TRANSITION TO THAT TYPE OF MODEL TO TRY TO COVER EACH AND EVERY PERSON THAT IS CURRENTLY COVERED UNDER THE SYSTEM AS IT EXISTS.

>> BUT SPEAKER STUMBO, WOULDN'T BE THERE BE MONEY THAT PERHAPS KENTUCKY WOULD HAVE TO PAY BACK TO THE FEDERAL GOVERNMENT FOR WHAT WE HAVE ALREADY RECEIVED TO IMPLEMENT KYNECT?

>> YEAH, I THINK THE REAL QUESTION THAT SHOULD BE ANSWERED IS THE INDEPENDENT STUDIES THAT WERE COMMISSIONED, THE DELOITTE AND TOUCHE STUDY SHOWS THAT THE PROGRAM WAS WORKING, IT WOULD PAY FOR ITSELF.

AS IT WAS SET BY GOVERNOR BESHEAR.

YOU KNOW, I UNDERSTOOD WHAT THE GOVERNOR STEAD.

HE DOESN'T BELIEVE THAT IT'S SUSTAINABLE OR AFFORDABLE BUT HE REALLY DOESN'T OFFER ANY PROOF TO THAT EFFECT.

AND IF WE'RE GOING TO TALK ABOUT DOING THING LIKES AUTOING THE PENSION SYSTEMS, WHICH I SUPPORT, THEN LET'S GET SOME TRUE FACTS OUT BY INDEPENDENT SOURCES TO VERIFY WHAT THIS REALLY IS GOING TO COST KENTUCKIANS.

WE'VE SEEN A STABILITY IN OUR RATES ALL ACROSS THE COMMONWEALTH, OUR HEALTH INSURANCE PROSTATE I DON'T THINK ANYBODY WANTS TO DO ANYTHING DO TO THAT.

BUT JUST TO SAY IT'S NOT GOING TO WORK AND THEN NOT PROVIDE ANY TYPE OF PROOF, EVIDENCE, IF YOU WILL, I DON'T THINK THAT'S GOOD SOUND PUBLIC POLICY.

SO I HOPE THAT MAYBE WE CAN GET SOME ADDITIONAL FACTS ON THAT, AND I'M NOT SAYING THE GOLFER'S WRONG.

I DON'T BELIEVE HE'S WRONG FROM THE EVIDENCE THAT I HAVE SEEN -- OR RIGHT, RATHER WANT THIS POINT.

IT A POURS THAT THE EVIDENCE SAYS KENTUCKY DOES MAKE MONEY OFF THIS PROGRAM.

IT WAS SET UP PROPERLY.

KENTUCKIANS LIKED IT.

THEY'RE PUSHING THEM INTO AN EXCHANGE THAT HAS HAD PROBLEMS.

AND YOU KNOW WE HAVE GOT AN OLD SAYING BACK AT HOME, IF IT AIN'T BROKE, DON'T FIX IT.

>> SO I'M GOING TO ASK YOU A PROCESS QUESTION HERE.

THE HOUSE DOES THE BUDGET FIRST, RIGHT?

CAN YOU GIVE ME AN ANTICIPATED TIMELINE FOR WHEN YOU WOULD LIKE TO SEND SOMETHING TO PRESIDENT STIVERS AND THE BUDGET COMMITTEE DOWN THE HALL?

>> WE TRY TO GET THAT BUDGET AND, OF COURSE, THEY LOOK AT THE BUDGET DURING THE SAME TIME THAT WE DO SO IT'S NOT LIKE IT'S THRUST UPON THEM.

THEY'RE GOING TO HAVE THEIR HEARINGS.

THEY'RE GOING TO HAVE THEIR A&R COMMITTEE LOOK AT IT IN THE SAME WAY THAT WE LOOK AT A. THEY WON'T LOOK AT THE FINAL PRODUCT OBVIOUSLY BUT GENERALLY SPEAKING THE GENERAL ASSEMBLY ACCEPTS THE BUDGET AT ABOUT NEVIN TO 98 PERCENT OF WHAT THE GOVERNOR REPUBLICANS.

SO IT DOESN'T HAVE A LOT OF REAL BIG CHANGES IN IT AS A HISTORICAL RULE.

WE HOPE TO GET THE BOILING TO THEM.

WE PARTED I BELIEVE -- THE BUDGET TO TEM THEM.

WE TARGETED THE FIRST EIGHT OR TEN DAYS IN MARCH AND THAT GIVES US TIME AT THE END TO GO INTO -- WE USUALLY HAVE TO HAVE, AS YOU KNOW, A CONFERENCE COMMITTEE ON THE BUDGET.

BUT, YOU KNOW, I THINK THAT THE GOVERNOR, YOU CAN LOOK AT SOME OF THE THINGS THAT HE REQUESTED, THE FUNDING FOR THE PUBLIC DEFENDERS, THAT'S NEED PED I DON'T KNOW WHY HE DOESN'T HAVE AN OFFSETTING YESTERDAY OR INCREASE FUNDING FOR OUR PROSECUTORS.

THEY PROSECUTE EVERY CASE, WHERE'S THE PUBLIC DEFENDERS ONLY DEFEND 80% OR SO OF THOSE CASES.

THOSE ARE SOME OF THE THINGS THAT WE CAN LOOK AT PUT WE'LL GO THROUGH THE PROCESS LIKE EVERY BUDGET DOES.

>> YOU SAID THERE WASN'T A LOT TO ARGUE OVER.

DO YOU AGREE WITH THAT STATEMENT?

>> I THINK THERE'S ALWAYS A LITTLE BIT TO ARGUE OVER FROM A POLYPERSPECTIVE ABOUT THE THE TRUTH OF THE MATTER IS WE SPEND MOST OUR MONEY ON HIGHER EDUCATION AND HEALTH AND HUMAN SERVICES IN THIS STATE.

SO THERE'S NOT A WHOLE WHO THE TO ORGANIZE ARGUE ON THAT AFTER THAT.

>> THANK YOU STEAK STUMBO SENATOR STIVERS I'LL GIVE YOU THE LAST WORD ANY AGREE THE WITH SPEAKER.

A LOT OF THE IMAGE BO WE CAN AGREE ON.

WE WILL BE WATCHING IT.

PROBABLY THE ONE THING I WOULD SEE AS AN EXCEPTION IN THIS MAY BE WHAT HE IS DOING WITH THE JUDICIAL BRANCH BUDGET WHERE YOU HAVE PROSECUTORS AND PUBLIC DEFENDERS, YOU HAVE THE JUDICIAL BRANCH BUDGET.

I'M NOT SURE WHAT'S GOING ON WITH THAT.

HE DIDN'T SIT THAT OUT ON A SET ASIDE.

BUT I THINK WE'RE GOING TO HAVE TO WATCH THE WHOLE SYSTEM TO MAKE SURE BOTH THE INDIVIDUALS WHO ARE INVOLVED IN INVESTIGATING AND DOING SOME OF THE THINGS HE SPOKE OF TONIGHT, THOSE WHO PROSECUTE AND THOSE WHO RUN THE SYSTEM, THAT IT'S ADEQUATELY FUNDED.

BUT WE WILL SEE, WE WILL WORK THROUGH IT, AND WE WILL BE PREPARED, TOO, THE HOUSE GETS US THE BILL TO TURN IT OVER AND GET INTO CONFERENCE.

>> WE'LL BE THERE EVERY STEP OF THE WAY.

THANK YOU, SENATOR STIVERS.

THANK YOU, SPEAKER STUMBO YOU CAN TUNE IN TONIGHT AT 11:00/10:00Y EASTERN ON KET.

WE'RE GOING TO HAVE A RECAP OF THE GOVERNOR BENCH'S FIRST BUDGET SESSION OF THE HOUSE AND SENATE.

YOU CAN WATCH THAT HAT 11:00.

THANK YOU FOR WATCHING.

I'M RENEE SHAW.

WE WILL SEE YOU LATER ON TONIGHT.