AT THE OLD STATE CAPITOL BUILDING· THE HOUSE PASSES A MEASURE THAT WOULD CREATE A KENTUCKY HISTORY CAUCUS· AND STUDENTS WHO ARRIVE LATE TO SCHOOL COULD BE GIVEN EXTRA TIME TO EAT SCHOOL BREAKFAST... ALL ON DAY 48 OF THE 2022KENTUCKY GENERAL ASSEMBLY IN REGULAR SESSION.

GOOD EVENING.

AND THANK YOU FOR JOINING US FOR LEGISLATIVE UPDATE.

I'M CASEY PARKER-BELL.

KENTUCKY'S LEGISLATURE MOVED TO ITS CURRENT CAPITOL BUILDING IN 1910·.

LEAVING THE OLD CAPITOL BUILDING ON BROADWAY IN DOWNTOWN FRANKFORT.

THAT BUILDING REMAINS TODAY AND BECAME A NATIONAL LANDMARK IN 1971.

SIGNIFICANT STATE HISTORY OCCURRED THERE, FROM SPEECHES BY HENRY CLAY, TO THE SPOT RIGHT OUTSIDE THE BUILDING WHERE KENTUCKY GOVERNOR WILLIAM GOEBEL WAS SHOT.

LEGISLATORS HONORED THAT HISTORY -AND MORE- TODAY, BY CONVENING THE HOUSE AND SENATE IN THE OLD CAPITOL BUILDING'S CHAMBERS.

THE HOUSE TOOK THE MOMENT TO TAKE UP A MEASURE AIMING TO HELP PROTECT KENTUCKY'S HISTORIC PROPERTIES.

HOUSE BILL 659 INCREASES THE PER-PROJECT CAPS ON HISTORIC PRESERVATION TAX CREDITS.

SENATE MAJORITY LEADER STEPHEN RUDY EXPLAINED THE BILL IS MEANT TO CLEAR UP LANGUAGE FROM A BILL PASSED LAST LEGISLATIVE SESSION - HOUSE BILL 249.

>> FIRST OFF, WE DID NOT ADDRESS THE PER PROJECT CAP.

IT REMAINED AT 400,000.

SO THE INDIVIDUAL PROJECTS, WHILE WE RAISED THE CEILING OF THE OVERALL PROJECT, WE DIDN'T RAISE THE LIMITS ON THE INDIVIDUAL ONES AND THE FACT OF THE MATTER IS, IT WOULD TAKE 250 PROJECTS TO FULLY REALIZE THE IMPACT IN WHAT WE WERE TRYING TO DO WHEN WE EXPANDED THIS PROGRAM.

THERE ARE USUALLY, IN A TYPICAL YEAR, ONLY 25 TO 30 APPLICANTS.

SO WE WILL NOT EVER REALIZE ALL THE POTENTIAL OF THIS PROGRAM.

THE SECOND PORTION WE FAILED TO RECOGNIZE WAS BECAUSE OF AN ACTION OF THE 2019 GENERAL ASSEMBLY WHERE WE ELIMINATED THE BANK FRANCHISE TAX.

THE BANK FRANCHISE TAX IS THE ONLY TAX THAT IS ALLOWED TO BE OFFSET WITH THE HISTORIC TAX CREDIT PROGRAM.

HOUSE BILL 659 SEEKS TO ADDRESS THESE TWO PROBLEMS.

AND FOR COMMERCIAL PROPERTIES IT RAISES THE THRESHOLD FROM 400-THOUSAND-DOLLARS TO 10-MILLION.

IT ALSO REPLACES LANGUAGE ASSOCIATED WITH THE ELIMINATED BANK FRANCHISE TAX WITH THE NEW BANK INCOME TAX.

RUDY SAYS THE BILL COULD HELP WITH PROJECTS AT SHAKER VILLAGE AND IN WESTERN KENTUCKY, AS COMMUNITIES START TO REBUILD AFTER THE DECEMBER TORNADOES.

THE HOUSE SENT H-B 659 TO THE SENATE AFTER ITS PASSAGE.

# THE HOUSE ALSO PASSED A RESOLUTION TO ESTABLISH THE KENTUCKY HISTORY CAUCUS.

HOUSE CONCURRENT RESOLUTION 120 AIMS TO PROMOTE THE COMMONWEALTH'S HISTORY BY HAVING THE CAUCUS WORK WITH THE KENTUCKY HISTORICAL SOCIETY.

EASTWOOD REPRESENTATIVE JERRY MILLER EXPLAINED THE PURPOSE FOR THE MEASURE TO HIS HOUSE COLLEAGUES.

>> IN THIS 200 YEARS OF STATEHOOD, KENTUCKY HAS HAD FOUR CONSTITUTIONS.

FIRST BEING ADOPTED IN 1792, SECOND IN SUBPOENA 99, THE THIRD PASSED IN THIS VERY CHAMBER 1850.

AND FINALLY THE FOURTH, UNDER WHICH WE CURRENTLY SERVE, IN 1891.

AND I WANT TO READ YOU THE PREAMBLE TO THE 1891 CONSTITUTION.

IT SAYS WE THE PEOPLE OF THE COMMONWEALTH OF KENTUCKY, GRATEFUL TO ALL MIGHTY BOD FOR THEIR CIVIL, POLITICAL AND RELIGIOUS LIBERTIES WE ENJOY, INVOKING THE CONTINUANCE OF THESE BLESSINGS, DO ORDAIN AND ESTABLISH THE CONSTITUTION AND I THINK IT WAS ALL MIGHTY GOD WHO, WITHOUT REQUEST, AND WITHOUT INTERVENTION, GRANTED THAT THIS RESOLUTION BE GRANTED THE NUMBER 120.

AND THAT NUMBER 120 IS SACRED TO KENTUCKIANS BECAUSE WE HAVE 120 COUNTIES, REACHING FROM THE BIG SANDY TO THE MISSISSIPPI, FROM THE OHIO TO STINKING CREEK.

AND IT IS IN THAT SPIRIT THAT WE HAVE FORMED-- WE ARE FORMING THE KENTUCKY HISTORY CAUCUS.

120, ESTABLISHING THE KENTUCKY HISTORY CAUCUS, AND PASSED THE HOUSE.

# AT SOME KENTUCKY SCHOOLS, IF STUDENTS CAN'T GET TO SCHOOL IN TIME FOR BREAKFAST, THEY AREN'T ALLOWED TO EAT ANYTHING IN THEIR FIRST CLASS OF THE DAY.

SENATE BILL 151 WOULD CHANGE THAT.

IT WOULD LET SUPERINTENDENTS AUTHORIZE 15 MINUTES FOR STUDENTS TO EAT SO THEY'LL HAVE THE PROPER ENERGY TO LEARN.

TODAY, THE HOUSE EDUCATION COMMITTEE HEARD FROM STUDENTS WHO SAID THEY KNOW WHAT IT'S LIKE TO LEARN ON AN EMPTY STOMACH.

>> I CAN SAY FROM EXPERIENCE, THAT I HAVE WITNESSED SOME OF THESE CRUEL SCHOOLS THAT DON'T ALLOW ME TO TAKE BREAKFAST TO CLASS WHENEVER LIKE MY HARD WORKING MOTHER, WHEN EVER SHE WAS TAKING ME TO SCHOOL, I KNOW SHE ALWAYS HAD TO RUSSIA ROUND ME AND MY OTHER SIBLINGS AND SOMETIMES I DIDN'T ALWAYS GET TO SCHOOL ON TIME.

SO WHENEVER I GOT TO SCHOOL AND I WASN'T ALLOWED TO JUST EAT BREAKFAST AND, YOU KNOW, FILL UP MY STOMACH AND STUFF, IT HAS AN IMPACT ON MY ENERGY AND SOMETIMES WHEN I'M ON LOW ENERGY, I CAN'T CONCENTRATE SO IN A WAY, IT IMPACTS MY EDUCATIONAL CAREER, TOO SO THAT'S JUST ALL I HAVE TO SAY.

>> ONE TEACHER TESTIFIED MANY SCHOOLS ALLOW STUDENTS TO EAT IN CLASS BUT SOME DON'T THEY CALLED IT A SYMPTOM OF A LARGER PROBLEM.

>> BUT AT THE SAME TIME IF THAT TYPE OF BEHAVIOR IS HAPPENING IN THE SCHOOL SYSTEM, THAT SPEAKS TO A LARGER ISSUE ITS ALMOST FEELS THAT IS IT IS SYMPTOMATIC, BUT WHAT IS THE ROOT CAUSE?

WHAT IS THE CULTURE THAT IS, I DON'T KNOW, I DON'T HEAR THAT BEING ADDRESSED.

ALSO WITH REGARD TO I WAS THINKING ABOUT I LOVE THE READING WAS FINE BUT I HEARD SOMETHING POWERFUL ABOUT THE PRE-K, PRE-K IS SO UNDERFUNDED, THAT IS THE ESSENCE OF WHAT NEEDS TO BE ADDRESSED, NOT ADDITIONAL PROFESSIONAL DEVELOPMENT OF LIT.

>> I PLEASE SPEAK TO THE BILL THAT YOU ARE HERE TO ADDRESS.

>> DULY NOTED.

HOWEVER, ADDING BREAKFAST IS PUTTING A BAND-AID ON A BULLET WOUND.

IT'S REALLY WHAT IS THE CULTURE AND THE ATTITUDE TOWARD STUDENTS.

WHAT'S THAT ALL ABOUT, NOT FORCING SOMEONE TO GIVE A CHILD BREAKFAST BECAUSE AFTER THEY GIVE THE BREAKFAST AT THOSE CROOL STULS, THEY STILL HAVE TO DEAL WITH THOSE TEACHERS THROUGHOUT THEIR EDUCATIONAL CAREER >> THE HOUSE EDUCATION COMMITTEE VOTED IN FAVOR OF SENATE BILL 151, SENDING IT TO THE HOUSE.

# THE READ TO SUCCEED ACT HAS NOW MADE ITS WAY THROUGH HOUSE COMMITTEE.

THE HOUSE EDUCATION COMMITTEE APPROVED SENATE BILL 9 - A BILL THAT INCLUDES SEVERAL MEASURES DESIGNED TO IMPROVE KENTUCKY STUDENTS' READING SKILLS BY THE TIME THEY FINISH THE THIRD GRADE.

THE BILL'S CO-SPONSOR, SENATOR STEPHEN WEST OF PARIS, SAYS LEARNING TO READ EARLY IS THE KEY TO LEARNING MORE, LATER IN LIFE.

>> IF WE AS A LEGISLATURE WANT RETURN ON INVESTMENT, THIS IS THE-- THIS BILL IS THE BEST WAY TO DO IT.

THE AMOUNT OF MONEY WE WILL PUT IN AND THE RETURN WE WILL GET IS INCREDIBLE.

COMING OUT OF COVID, WE ARE GOING HAVE TO HAVE MOCIAL NUMBERS PERTAINING TO EARLY LITERACY AND READING.

THIS BILL IS A WAY, THE QUICKEST WAY TO GET US BACK THE OTHER DIRECTION GOING THE RIGHT WAY AND THEN THIS IS A BILL ABOUT GENERATIONAL CHANGE.

GENERAL RAKESAL CHANGE AND IT'S JUST A VERY COMMON SENSE THING IF KIDS KNOW HOW TO READ BY THIRD GRADE, IT CHANGES THE TRAJECTORY OF THEIR LIFE FOREVER.

>> I TEACH READING EVERY DAY I'M IN THE CLASSROOM AND AND I WOULDN'T SAY DESPERATE BUT I'M ACHING FOR MORE TRAINING ON HOW TO BE BETTER AT TEACHING READING.

SO I'M SO GRATEFUL FOR THIS BILL, I'M GRATEFUL FOR THE BUDGET THAT THERE MAY BE MONEY TO PAY FOR THE BILL AND I JUST WELCOME WITH OPEN ARMS AN OPPORTUNITY TO BE BETTER AT MY TRADE, AT MY PROFESSION THROUGH THE WORK OF THIS BILL AND I APPRECIATE EACH AND EVERY ONE OF YOU.

THANK YOU.

>> BILL PASSED THE HOUSE EDUCATION COMMITTEE AND HEADS TO THE FULL HOUSE.

THE KENTUCKY HOUSE PASSED A BILL EARLIER THIS SESSION AUTHORIZING THE STATE TO HELP KENTUCKY STATE UNIVERSITY AS IT DEALS WITH CONTINUING FINANCIAL PROBLEMS THAT BILL, IF IT BECOMES LAW, WOULD AUTHORIZE 23 MILLION DOLLARS FOR KSU.

ANOTHER BILL, HOUSE BILL 663, WOULD REQUIRE POSTSECONDARY EDUCATION INSTITUTIONS TO PROVIDE THE STATE WITH A FINANCIAL DISCLOSURE STATEMENT EACH YEAR BY JULY FIRST.

THE GOAL IS TO CATCH FINANCIAL PROBLEMS, EARLY, SO THEY DON'T GET WORSE.

THE SPONSOR, REPRESENTATIVE BOBBY MCCOOL OF VAN LEAR, EXPLAINED HOW THE BILL WORKS TO THE HOUSE EDUCATION COMMITTEE.

>> THIS IS A BILL THAT ACTUALLY WILL COST NO OR VERY LITTLE MONEY AT ALL.

I DON'T THINK IT COST ANYTHING TO IMPLEMENT, BUT IT COULD SAVE MILLIONS OF DOLLARS, AS WE'VE SEEN SOMETIMES WHEN A UNIVERSITY MAY GET INTO SOME FINANCIAL DIFFICULTIES BECAUSE IT WILL CATCH IT EARLY.

AND ALL IT REQUIRES IS FROM THE PRESIDENT AND THE CHAIR OF THE BOARD TO SIGN A STATEMENT EVERY YEAR THAT THEY'RE FINANCIALLY STABLE AND PROVIDE THAT DOCUMENTATION.

NOW THAT COULD HAPPEN WHERE A UNIVERSITY MAY OR A COLLEGE AND ANYTHING THAT FALLS UNDER THE COUNCIL OF POST SECONDARY EDUCATION COULD SEE FINANCIAL DIFFICULTIES ONE YEAR BUT LEAST WE WOULD KNOW THAT EARLY AND KNOW IN ADJUSTMENTS CAN BE MADE COLLECTIVELY USING CERTAINLY THROUGH THE COUNCIL POST SECONDARY EDUCATION >> IF A POSTSECONDARY INSTITUTION DOESN'T PROVIDE A FINANCIAL DISCLOSURE STATEMENT BY JULY FIRST, THE COUNCIL ON POSTSECONDARY EDUCATION WOULD BE AUTHORIZED TO INVESTIGATE.

THE HOUSE EDUCATION COMMITTEE APPROVED THE MEASURE.

>> KENTUCKY COULD SOON BE LOOKING TO CREATE A NUCLEAR POWER PLANT.

A SENATE RESOLUTION PASSED THIS AFTERNOON WOULD REQUIRE AN INTERIM COMMITTEE TO ORGANIZE A FEASIBILITY STUDY ON NUCLEAR POWER FOR THE STATE.

KENTUCKY LIFTED A MORATORIUM ON NUCLEAR POWER IN 2017, SETTING STANDARDS FOR ERECTING A PLANT, DISMANTLING IT, AND DISPOSING OF WASTE.

BENTON SENATOR DANNY CARROLL SAYS HE BROUGHT SENATE RESOLUTION 171 BECAUSE KENTUCKY CAN'T FALL BEHIND IN THE ENERGY SECTOR.

>> THERE HAS BEEN A LOT OF ADVANCEMENT IN TECHNOLOGY IN NUCLEAR ENERGY WITH NEXT GENERATION REACTORS.

RIGHT NOW T.D.A.

IS WORKING TOWARD SMALL MODULAR REACTORS.

ONE IN TENNESSEE, THEY PLAN TO BUILD OTHER SMALL MODULAR REACTORS.

IN WE HOMING, TERRA POWER OWNED BY BILL GATES IS PREPARING TO BUILD A SODIUM REACTOR AND THAT'S ONE OF THE NEXT GENERATION REACTORS THAT IS MUCH SAFER.

IT USES BASICALLY SALT AS A COOL ANT RATHER THAN HAVING FLOWING WATER AND IT'S MUCH SAFER AND THERE ARE MANY DIFFERENT TECHNOLOGIES THAT ARE BEING WORKED ON THROUGHOUT THE WORLD.

AND AS ENERGY PRICES CONTINUE TO INCREASE, WE ARE GOING TO BE LOOKING FOR VARIOUS SOURCES.

AND THE NUCLEAR IS CARBON FREE, AWE MOVE TOWARDS GREEN.

WE HAD A LONG DISCUSSION YESTERDAY ON SOLAR POWER.

SOLAR POWER IS NOT THE ANSWER.

IS IT A SUPPLEMENT?

YES.

BUT WE NEED BASE LOAD ENERGY AND NUCLEAR IS THE MOST EFFICIENT TYPE OF BASE LOAD ENERGY IN THAT IT IS AT FULL CAPACITY, OVER 90% OF THE TIME WHEN THOSE PLANTS ARE OPERATING.

>> THE LEGISLATIVE RESEARCH COMMISSION WILL ASSIGN A COMMITTEE OVER THE INTERIM TO FIND FUNDINGING AND GROUPS THAT COULD PERFORM THE FEASIBILITY STUDY.

SENATE CONCURRENT RESOLUTION 171 PASSED THE SENATE ECONOMIC DEVELOPMENT COMMITTEE UNANIMOUSLY AND NOW HEADS TO THE SENATE FLOOR FOR CONSIDERATION.

>>> A STATE SENATOR WANTS TO MAKE IT HARDER TO BUY AND SELL STOLEN CATALYTIC CONVERTERS.

SENATE BILL 114 WOULD REQUIRE THOSE WHO SELL CATALYTIC CONVERTERS TO SHOW PROOF OF OWNERSHIP.

IT ALSO INCREASES THE PENALTIES ON THOSE WHO DO NOT KEEP THE PROPER RECORDS ON THOSE PURCHASES.

THE SPONSOR OF THE BILL, SENATOR WHITNEY WESTERFIELD, SAYS VIOLATORS WOULD BE CHARGED WITH A CLASS-B MISDEMEANOR, WHICH CARRIES A PENALTY OF 90 DAYS IN JAIL, A $500 FINE OR BOTH.

WESTERFIELD SAYS HE KNEW THERE WAS A PROBLEM WITH CATALYTIC CONVERTER THEFTS IN THE STATE WHEN HE FILED THE BILL, BUT THAT HE DIDN'T REALIZE IT WAS SO WIDESPREAD.

IT REQUIRES ADDITIONAL PAPERWORK TO DEMONSTRATE OWNERSHIP OF THESE CATALYTIC CONVERTERS.

I SINCE LEARNED THAT THIS IS HAPPENING ALL OVER STATE AND PEOPLE ARE GETTING SOMETHING LIKE TWO GRAND A POP FOR CATALYTIC CONVERTERS THEY'RE CUTTING FROM VEHICLES IN BROAD DAYLIGHT.

>> IT IS DEFINITELY A PROBLEM ALL OVER THE STATE.

IT'S HAPPENING IN YOUR PART OF THE STATE, MY PART OF THE STATE.

CHURCH VANS, CARS,.

>> SINCE I FILED, I'VE GOTTEN A DOZEN OTHER MESSAGES FROM PEOPLE ACROSS THE STATE SAYING IT JUST HAPPENED THIS WEEK, PEOPLE HAVE HEARD THE BILL IS OUT THERE IT HAS BIPARTISANSHIP SUPPORT.

>> REPRESENTATIVE THOMAS HUFF COMMENTED ON THE BILL, SAYING HE OWNS A CAR LOT AND IS ALWAYS CONCERNED THIEVES WILL STEAL THE CATALYTIC CONVERTERS FROM HIS VEHICLES.

BUT HE ALSO EXPRESSED CONCERN ABOUT HOW THE BILL WOULD IMPACT HIS OTHER BUSINESS.

ON TOP OF HAVING A CAR LOT, I HAVE A SALVAGE YARD.

I KEEP ABOUT A THOUSAND CARS AT ALL TIMES ON IT.

IS IT GOING TO AFFECT LEGITIMATE BUSINESSES?

>> NO.

IN EVERY EXAMPLE, YOU HAVE TITLE TO THOSE VEHICLES OF PEOPLE WHO BUY THEM WILL HAVE TITLE TO THE VEHICLES AND WE ALLOW BY AFFIDAVIT.

WE ARE REQUIRING THAT THE PLACES THAT TAKE IN THESE CATALYTIC CONVERTERS TO GATHER THAT INFORMATION BUT THAT'S A BEAR MINIMUM.

IF I WERE OPERATING SUCH A SALVAGE YARD, I'D WANT TO COLLECT IT TOO SO WHEN LAW ENFORCEMENT COMES AND ASKS ME, WHO BROUGHT THIS CATALYTIC CONVERTER, WAS IT THEIRS.

I WILL BE ABLE IS TO SAY THIS IS WHAT THEY GAVE ME.

THIS SHOWS THEY OWNED IT.

IF THERE IS A PROBLEM ON THAT, IT'S ON THE PROBLEM WHO BROUGHT IT IN, NOT YOUR SHOP.

>> THE HOUSE TRANSPORTATION COMMITTEE PASSED THE BILL.

IT NOW MOVES TO THE HOUSE.

THE COMMITTEE ALSO PASSED ANOTHER SENATE BILL.

UNDER SENATE BILL 119, ONLY THE GENERAL ASSEMBLY HAS THE AUTHORITY TO NAME HIGHWAYS AND BRIDGES.

THE BILL ALSO ALLOWS THE KENTUCKY TRANSPORTATION CABINET TO APPROVE SPECIAL SIGNAGE THAT IS PUT UP ALONG ROADWAYS, BUT ONLY IF THE SIGNS ARE TEMPORARY.

TODAY AT THE CAPITOL, ADVOCATES FOR SCHOOL CHOICE GATHERED TO SHOW THEIR SUPPORT FOR SENATE BILL 50 AND HOUSE BILL 305 DURING THE ANNUAL ADVOCACY DAY HOSTED BY EDCHOICE KENTUCKY.

THE BILLS AIM TO EXPAND KENTUCKY'S CURRENT SCHOOL CHOICE LAWS BY ALLOWING ALL COUNTIES ACCESS TO NON-PUBLIC SCHOOL TUITION ASSISTANCE, INCREASING INCOME ELIGIBILITY LIMITS, AND ALLOWING FOR A HIGHER DONATION CAP TO ACCOMMODATE MORE FAMILIES SEEKING TO UTILIZE THE PROGRAM.

ANDREW VANDIVER, PRESIDENT FOR EDCHOICE KENTUCKY, SPOKE ON HIS HOPES FOR THE BILLS TO PASS THIS SESSION.

>> WE HAVE A LOT OF FAMILIES THAT HAVE REACHED TOUT SAY THIS IS AVAILABLE IN OUR COUNTY AND IF NOT, WHAT CAN WE DO TO MAKE IT AVAILABLE BECAUSE THERE ARE SO MANY WONDERFUL PRIVATE SCHOOLS THROUGHOUT THE STATE THAT WANT TO SERVE STUDENTS AND WE WANT TO HELP FAMILIES IN THOSE COMMUNITIES HAVE ACCESS TO THOSE SCHOOLS.

WAS WE DO KNOW IS THAT THIS IS SOMETHING THAT 70% OF KENTUCKIANS WANT TO SEE STATEWIDE AND THAT'S REGARDLESS WHETHER THEY'RE DEMOCRATS, REPUBLICANS OR INDEPENDENT.

IT'S WILDLY POPULAR.

SO IT DOESN'T MATTER WHAT TYPE OF BILL YOU GET PROPOSED, THERE IS ALWAYS GOING TO BE PUSH BACK BUT WHAT WE ARE CONFIDENT OF, THIS IS SOMETHING PARENTS ARE NOT ONLY WANTING, THEY'RE DEMANDING.

>> WE HAVE GROWN OUR SUPPORT TO 24 CO-SPONSORS ON HOUSE BILL 305.

WE ARE HOPEFUL THAT WILL SHOW SERIOUS MOMENTUM TO HOPEFULLY GET SOMETHING PASSED BY THE END OF THE SESSION >> SENATE BILL 50 HAS BEEN ASSIGNED TO THE SENATE APPROPRIATIONS AND REVENUE COMMITTEE AND AWAITS A HEARING THERE.

HOUSE BILL 205 HAS NOT BEEN ASSIGNED TO A COMMITTEE.

LAST NIGHT, K-E-T'S RENEE SHAW HOSTED A DISCUSSION ON THE STATE BUDGET WITH MEMBERS OF THE KENTUCKY GENERAL ASSEMBLY.

HOUSE A-AND-R CHAIR JASON PETRIE AND SENATE A-AND-R CHAIR CHRIS MCDANIEL JOINED DEMOCRAT REPRESENTATIVE BUDDY WHEATLEY AND SENATE MINORITY CAUCUS CHAIR REGGIE THOMAS.

THE LEGISLATORS DISCUSSED THE DIFFERENCES IN THE HOUSE AND SENATE'S VERSIONS OF THE BUDGET - AND SPECIFICALLY THE 10-MILLION-DOLLAR GRANT POOL INCLUDED IN THE HOUSE VERSION, BUT ABSENT IN THE SENATE'S.

>> WE GET ALL KINDS OF REQUESTS FOR SMALL FUNDING ISSUES ACROSS THE BOARD AND EVERY AREA YOU CAN THINK OF, AT LEAST 2,000 OR 10,000 WILL MAKE A WORLD OF A DIFFERENCE FOR THIS ORGANIZATION OR FOR THIS ACTIVITY AND SO FORTH AND SO ON AND A LOT OF GOOD THINGS BUT WE REALLY HAVE NO MECHANISM IN STATE GOVERNMENT TO FUND OR ADDRESS THOSE NEEDS.

THEY'RE TOO SMALL SO IT DOESN'T FIT IN ANY FUNDING SOURCE FOR THAT UNLESS YOU START HUNDREDS AND HUNDREDS OF LINE ITEMS IN THE BUDGET AND I'M NOT PARTICULARLY INCLINED TOWARD THAT PATHWAY, SO WE COME UP WITH A MECHANISM TO SAY NON-PARTISAN EVERYBODY, SO NO ONE IS EXCLUDED IN THE HOUSE OR IN THE SENATE, THE SAME AMOUNT IN EACH CHAMBER, AND THEN THOSE INDIVIDUAL LEGISLATORS WOULD HEAR THOSE LOCAL NEEDS, LOCAL FUNDING NEEDS THAT CAN'T BE GOTTEN TO IN OTHER WAYS, THAT THEY HAVE THE OPPORTUNITY TO DESIGNATE BY JULF LOCAL GOVERNMENT, TO WHOM AND REALLY TO WHOM AND FOR WHAT THE MONEY WOULD BE PAID.

I THINK WE WOULD RESTRICT IT TO EDUCATIONAL ACTIVITIES, GOVERNMENT AND QUASI GOVERNMENTAL ACTIVITIES TO GET TO PROPER FUNCTIONS NO THE JUST YOUR PET PROJECT BUT PROPER FUNDING FOR STATE MONEY BUT GET TO THE LOCAL ISSUES THAT WE REALLY CAN'T GET TO ANY OTHER WAY.

>> Renee: WHAT WAS THE VETTING PROCESS OR WAS WOULD BE THE VETTING PROCESS FOR THOSE TYPES OF PROJECTS.

>> THE VETTING WOULD BE THE RESTRICTION TO THE CATEGORIES THAT WE PUT IN THE BUDGET NUMBER 1 AND THEN AS FAR AS A VETTING, I'M NOT GOING TO SAY IT'S THAT BUT IT'S GOING TO BE PUBLIC OVERSIGHT BECAUSE ONCE YOU DESIGNATE THAT WITH D.L.G., THE DEPARTMENT OF LOCAL GOVERNMENT, THAT'S PUBLIC RECORD AND I STATED IN COMMITTEE DON'T BE TOO CUTE OR TOO STUPID ABOUT THIS.

SO IF YOU ARE GOING TO NOMINATE SOMEONE TO RECEIVE SOME OF THAT MONEY BECAUSE IT'S A GOOD LOCAL FUNDING ISSUE, IT WILL BE PUBLIC AS SOON AS YOU MAKE IT KNOWN TO D.O.G.

AND NOT ONLY WILL THE MEDIA BE LOOKING AT IT, BUT I WILL BE REVIEWING IT ALSO.

>> Renee: THE DEPARTMENT OF LOCAL GOVERNMENT WILL BE ISSUING THE CHECKS.

THE LAWMAKERS WON'T BE GIVEN 130,000 OR 50 GRAND TO GO WILLIE NILLY.

>> THE LAWMAKERS MAKE THE PUBLIC DESIGNATION OF THE PROCEEDS ALLOCATED TO THEIR LOCAL FUNDING NEEDS.

>> Renee: SENATOR McDANIEL, WHAT DID YOU THINK ABOUT IT?

IT DIDN'T MAKE THE SENATE VERSION OF THE BUDGET.

>> AS REFERENCED EARLIER, REASONABLE MINDS CAN DIFFER AND WE TOOK A DIFFERENT VIEW OF THAT ONE.

>> Renee: END OF COMMENT?

>> YES MA'AM.

>> Renee: YOU ALL HAVE THOUGHTS ABOUT THAT FUND.

>> I'LL WEIGH IN IN THAT FIRST, RENEE.

BELIEVE IT OR NOT, THAT'S ONE AREA WE AGREE ON AND I'LL TELL YOU WHY.

RENEE, IN MY SENATE DISTRICT, I GET REQUESTS FROM DIFFERENT PROGRAMS, FEEL GOOD PROGRAMS, WORTHY PROGRAMS ABOUT CAN YOU HELP FUND BACK-TO-SCHOOL PROGRAMS, BACK-TO-SCHOOL PROJECTS.

I WANT DO THAT RENEE.

I GET REQUESTS FROM GROUPS THAT ARE INVOLVED WITH REFUGEE MINISTRIES AND REFUGEE EFFORTS.

WE ARE GOING TO SEE THAT NOW ESPECIALLY WITH REGARD TO UKRAINE NOW.

I WANT TO HELP SUPPORT THAT.

AND I AGREE WITH CHAIRMAN PETRI.

YOU DON'T WANT HAVE TO GO BACK AND NICKEL AND DIME EVERY KIND OF REQUEST.

I'VE GOT A COUPLE OF REQUESTS IN THE BUDGET NOW AS SENATOR McDANIEL KNOWS THAT I'M VERY PROUD OF IN LEXINGTON TO HELP FUND SOME NOBLE PROJECT SO I THINK THAT'S VERY HELPFUL TO DO THAT.

I LIKE THAT IDEA.

I HOPE IT OCCURS BECAUSE THAT'S GIVING MONEY BACK TO THE CITIZENS.

IT'S THEIR MONEY, TO BE USED, AGAIN FOR SCHOOL PROJECTS, TO HELP WITH REFUGEE AREAS, TO HELP WITH A LOT OF NOBLE AND WORTHY CAUSES.

I THINK THAT THAT'S A GREAT IDEA.

>> Renee: IS THERE A RIGHT LEVEL OF TRANSPARENCY IN THAT EFFORT, DO YOU THINK?

>> ABSOLUTELY.

HAVE I NO PROBLEM WITH WHATEVER I WANT TO DO WITH THE MONEY, I HAVE NO PROBLEM SENDING THAT TO L.R.C.

OR TO WHATEVER WANTS TO SEE IT.

THIS IS WHAT I APPROVED FUNDING FOR BECAUSE I THINK IF IT'S DONE THE RIGHT WAY, CAN IT HELP A LOT OF PEOPLE ACROSS THE STATE.

>> THE HOUSE ALSO PASSED HOUSE BILL 8.

THEIR PLAN TO CHANGE KENTUCKY'S TAX SYSTEM REDUCING THE INDIVIDUAL INCOME TAX RATE FROM 5% TO 4 AND WOULD CREATE A NEW SALES TAX ON A VARIETY OF SERVICES - FROM FINANCIAL PLANNING TO WATERCRAFT DOCKING.

MEMBERS OF THE TWO POLITICAL PARTIES EXPRESSED THEIR DIFFERENCES ABOUT THE POTENTIAL CHANGES.

>> IF YOU ARE THE AVERAGE KENTUCKIAN, THE MEDIAN INCOME IS $47,000 A YEAR AND YOU ARE GOING TO GET A IS% TAX BREAK.

THAT'S $$470.

5,000 FOR THE WEALTHIER CLASSES VERSUS 470.

THERE IS SOMETHING WRONG WITH THAT WHEN YOU CAN USE THAT MONEY TO INVEST IN YOUR CHILD, YOU CAN USE THAT MONEY TO INVEST IN YOUR HEALTHCARE.

YOU CAN USE THAT MONEY SO THAT YOU DON'T HAVE THIS GREAT DEBT, YOU KNOW.

WE COULD SPEND THAT MONEY, RENEE, INSTEAD OF ADDING 3.6 BILLION-DOLLAR TO OUR DEBT THIS TIME.

THIS IS INTENTIONAL ON THEIR PART, RENEE, TO CREATE THIS BUDGET SO THAT WE CAN GIVE TAX BENEFIT AND I MEAN BENEFIT TO YOUR WEALTHIER HIRE INCOME INDIVIDUALS.

>> Renee: QUICKLY, PART 2 OF THAT IS TO EXPAND THE SALES TAX BASE TO OTHER SERVICES LIKE HOME SECURITY SYSTEMS, RECREATIONAL THINGS, WATER CRAFT, FITNESS CENTERS, COSMETIC SURGERY.

WHAT ARE YOUR THOUGHTS ABOUT THAT?

>> I'M OKAY WITH THOSE THINGS AS LONG AS WE DON'T TOUCH FOOD OR MEDICINE.

I'M OKAY.

>> Renee: WHICH ARE NOT PROPOSED.

>> WHICH ARE NOT.

I THINK WE COULD DO MORE TO TAX SERVICES.

>> Renee: REPRESENTATIVE WHEATLY.

>> FUNDAMENTALLY WHAT THIS DOES IS IT REDUCES THE INCOME TAX FROM 5 TO 4%, $1.12 BILLION A YEAR.

THAT'S EVERY YEAR.

THIS YEAR WE HAVE SOME DOLLARS TO IN RESERVE TO TAKE CARE OF IT.

THIS YEAR WE HAVE SOME UNSPENT DOLLARS TO TAKE CARE OF IT BUT THAT 1.12 BILLION IS GONE EVERY YEAR.

IT'S IRRESPONSIBLE TO DO THAT TO HAVE, IN ANY OTHER KIND OF PART OF OUR ECONOMY THAT BECOMES A DOWNTURN SITUATION IN THE FUTURE, WE WON'T HAVE THOSE DOLLARS.

THE GOVERNOR'S PROPOSAL FOR JUST THE SALES TAX IS A ONE-YEAR PROPOSAL.

THEN WE CAN TAKE A LOOK AT IT AGAIN TO SEE IF IT IS ABLE TO DO IT AGAIN.

WHEN YOU REDUCE THE INCOME TAX IN KENTUCKY, YOU ARE PLAYING A GAME.

IT'S RISKY.

IT'S NOT SOMETHING THAT WHERE WE WILL KNOW AS WE DO NOW, OUR TAX SYSTEM HAS BEEN IN PLACE FOR A LONG TIME BUT TO DO IT WHERE YOU ARE NOT SURE AND THERE ARE TRIGGERS THAT YOU CANNOT REDUCE THE INCOME TAX UNTIL CERTAIN REVENUE AMOUNTS ARE MET.

THOSE ARE FINE.

THEY'RE BASED AND I ASKED THE CHAIR ON THE FLOOR IF THOSE WERE BASED ON SOME INFLATION MEASURES.

AND THEY ARE IN THERE.

BUT THERE IS TOO MUCH UNPREDICTABILITY IN WHAT IS GOING TO HAPPEN WITH INFLATION AND WITH THE CHANGES AS HAPPENS WITH COST OF LIVING RAISES OR COST OF LIVING THAT HAPPENS EVERY YEAR ANYWAY.

WE ARE GOING TO GET TO THOSE TRIGGERS PERHAPS WITHOUT HAVING SO MUCH EXPENSE WITHIN THE GOVERNMENT THAT IT IS JUST GOING TO CAUSE US TO HAVE TO DO MORE WITH THESE SALES TAXES.

THE CURRENT SALES TAX ARE LUXURY TYPE TAXES AS THE SENATOR REFERRED TO AND THEY'RE NOT SO BAD BUT THEY ONLY BRING IN A LITTLE OVER $100 MILLION A YEAR AND AGAIN WE ARE REDUCING EVERY YEAR WITH 1%, $1.12 BILLION SO NOT TO BE ABLE TO HAVE THAT KIND OF REVENUE, WE ARE GOING TO LOOK AT SOME REALLY DRACONIAN CUTS IN THE FUTURE IF WE DON'T CORRECT THIS OR STOP IT NOW.

>> Renee: ARE THERE PLANS TO REPLACE THE LOST REVENUE THERE.

>> I WANT TO COMMENT ON SOMETHING REAL QUICK HERE RENEE BECAUSE WITH YOU LOOK AT A REDUCTION IN SALES TAX VERSUS REDUCTION IN INCOME TAX, THE REDUCTION IN SALES TAX IS DISPROPORTIONATELY UNFAIR TO WORKING CLASS KENTUCKIANS AND HERE'S WHY.

RENT, FOOD, UTILITIES, AUTOMOBILE PAYMENTS, HEALTHCARE ARE ALL TAX EXEMPT RIGHT NOW, SO NECESSARILY WHEN YOU DEPRESS THE SALES TAX, WHO YOU ARE ADVANTAGING IS PEOPLE WITH MORE DISPOSABLE INCOME WHO OTHERWISE WOULD BE BUYING TAXABLE GOODS.

WHEREAS A REDUCTION IN THE INCOME TAX PUTS MORE MONEY IN THOSE LOW AND MIDDLE INCOME FOLKS POCKETS AND SO WHEN YOU LOOK AT THE COMPARISON OF THE TWO, IT'S HANDS DOWN.

THE BETTER THING FOR LOW AND MIDDLE INCOME FOLKS IS A REDUCTION IN THE INCOME TAX VERSUS A TEMPORARY REDUCTION IN THE SALES TAX AS IS PROPOSED THERE.

AND CERTAINLY, YOU KNOW, WE'VE GOT TO KEEP THAT IN MIND AS WE TRY TO PUT COMPARISONS NEXT TO ONE ANOTHER.

>> Renee: CHAIRMAN PETRI.

>> I'M NOT SURE WAS YOU WANT ME TO RESPOND TO.

>> Renee: YOU LOOKED LIKE YOU WANTED TO SAY SOMETHING.

BUT THERE HAS BEEN SOME CONCERN, YOU KNOW, THAT THE TOP 1% OF KENTUCKY CANNESS WILL GET 11,000 IN TAX CUTS STARTING THE FIRST YEAR AND $55,000 ANNUALLY WHEN THE INCOME TAX IS ELIMINATED.

IT SEEMS TO BENEFIT THE HIGHER INCOME LEARNERS AND NOT THE LOWER WAGE EARNERS.

>> IF YOU WANT TO GET INTO THE CLASSIC CLASS WARFARE ARGUMENTS YOU HEAR IN THESE THINGS, CERTAINLY, THAT'S BECAUSE THOSE FOLKS ARE PAYING A LOT MORE IN THE TAXES THAT ARE CURRENTLY GOING RIGHT NOW BUT WHEN YOU SIMPLY COMPARE A DECREASE OF 1% IN INCOME TO A DECREASE IN SALES, THAT MORE SO THE SALES DECREASE WILL NECESSARILY BENEFIT THOSE WHO ARE BUYING MORE GOODS THAT HAVE TAXES ON THEM.

>> AND IF I MAY ON THAT, BE REAL CAREFUL ABOUT HOW WE MAKE OUR COMPARISONS.

SO IF WE ARE ALL BEING TAXED 5% AT THIS TABLE AND WE ARE ALL MAKING DIFFERENT AMOUNTS ABSOLUTE DOLLAR FIGS, THE AMOUNT WE ARE PAYING IN AND GETTING BACK ARE DIFFERENT IN ABSOLUTE DOLLAR FIGURES BUT WE ARE ALL PUTTING IN AND OUT THE SAME PERCENTAGES.

IF IT IS A FLAT 5 TO 4.

WHEN YOU WALK INTO A CHURCH AND YOU TO A TITHE AT SO%, IT'S 10% REGARDLESS.

IT DOESN'T MATTER HOW MUCH YOU MAKE OR NOT AND TO SAY WELL $11,000 OR $5,000 WHO IS MAKING $100,000 OR $200,000 IS A LOT OF MONEY IN ABSOLUTE DOLLAR FIGURES YES BUT PERCENTAGE WISE IT'S THE SAME AMOUNT RELATIVE TO THE TOTAL AS IF YOU ARE MAKING 50,000.

BASED ON A PERCENTAGE.

SO FOR ME, THE FAIRER WAIVE LOOKING AT SOMETHING IS THE PERCENTAGE WHICH CUTS ACROSS ALL LINES F. YOU WANT TO LOOK AT ABSOLUTES, THEN YOU END UP WITH A PROBLEM OF THIS.

THE NARRATIVE WE HEAR IS THE RICH ARE NOT PAYING IN ENOUGH.

THEY'RE PAYING TOO LITTLE GOING IN BUT THE SAME AMOUNT GOING OUT IS TOO MUCH.

I CAN'T SQUARE THAT.

PERCENTAGE TALKS WORKS BETTER.

>> HOUSE BILL 1, THE EXECUTIVE BRANCH BUDGET HAS BEEN RECEIVED BY THE HOUSE WHERE THEY WILL REVIEW THE SENATE CHANGES IF THE HOUSE DOESN'T CONCUR WITH THE SENATE'S VERSION, THEY WILL ESTABLISH A CONFERENCE COMMITTEE TO HASH OUT THEIR DIFFERENCES.

HOUSE BILL 8, THE TAX REFORM BILL, IS IN THE SENATE APPROPRIATIONS AND REVENUE COMMITTEE.

THAT CONCLUDES OUR COVERAGE OF DAY 48 OF THE 2022KENTUCKY GENERAL ASSEMBLY.

WE HOPE TO SEE YOU AGAIN TOMORROW NIGHT AT 11:00 PM EASTERN TIME FOR LEGISLATIVE UPDATE.

FOR INFORMATION ABOUT LEGISLATIVE MEETINGS, CALL 1-800-633-9650.

YOU CAN ALSO FOLLOW OUR GAVEL-TO-GAVEL COVERAGE THROUGHOUT THE DAY BY DOWNLOADING KET'S LEGISLATIVE COVERAGE APP TO YOUR SMART PHONE OR TABLET.

YOU CAN WATCH ON OUR KENTUCKY CHANNEL OR FOLLOW ALONG ONLINE ket.org THANKS FOR WATCHING AND HAVE A GREAT NIGHT.