The stage is almost set for budget negotiations as the upper chamber unveiled a different executive branch spending plan then the House in a matter of hours.

The Kentucky Senate's version of the state's two year spending plan and a plan to make one time investments went from committee to floor action, and it got overwhelming support.

Our Clayton Dalton has more on the clashing budget ideas as we start tonight's legislative update.

We ask ourselves the question how do we ensure that we are competitive in the next century?

We started by recognizing the the amazing strides made by our colleagues in the House of Representatives and then added to that by making strategic decisions about how to invest our resources, about how to help areas in need, about how to create a modern economy, and by investing in our in making our state a great place to live.

The Senate published its version of the state budget, making some changes to the version passed in the House.

Spending plans are divided into two main bills.

First, House Bill one allocates money for one time expenses and projects.

The Senate almost doubled what the House appropriated, including an extra pension check for state retirees.

We will spend $75 million for a tiered one time 13th check for retirees of the KRS systems, as well as the state police retirement systems.

The new House Bill one includes $100 million for revitalization projects in Louisville and more project money for Kentucky's public colleges.

Rural health care and criminal justice training.

It is the belief of the sponsor, and I believe the committee as well, that these investments in our people in our energy, in public safety, in education, in economy, in health, quality of life and infrastructure in our communities are both necessary and worthy.

We stand at an odd juncture in history where we have taken in far more and receipts than we anticipated, and we have one time moneys and we maintained our commitment to spend those monies in a way that it is a one time spending and not only does not incur recurring obligation, but instead stimulates recurring economic activity.

House Bill six is the main budget or the executive branch budget for the upcoming biennium.

This funds state programs, agencies, operations and employees.

One notable difference.

State workers would get less of a raise than was proposed by the House.

All other involved in the state compensation system will see a 2.6% increase in each year of the biennium.

The Senate budget spends more money than the version passed in the House.

Senator McDaniel explained how much and where it's going.

So in our budget, we spend about $300 million roughly per year, more in general fund dollars in the first year.

That comes from the performance funding model, $100 million there.

It comes from additional money that we put in Department of Health and Family Services, and it comes in the seek increase.

To break it down, the Senate wants to spend more money on education in both K-through-12 and college settings.

Seac, which is funding for public schools, is slightly increased, but performance based funding, which is money for colleges and universities, is significantly increased in this bill, almost doubled.

But there's no specific provision for teacher raises.

Senator McDaniel said the desire to continually decrease the state income tax was factored into their budget proposal.

Yes, absolutely.

And that was incorporated in this.

In fact, our second year spending plan took out about $390 million, specifically for the idea that we would be able to hit the trigger to lower to three and a half percent at the beginning of 26.

McDaniel said there will always be critics of the budget, but that financial discipline should guide the budgetary process.

And I think most importantly, we've tried diligently and the two bills that work together to spend one time money and one time places that would be transformational.

But in the state's budget, we have long advocated that discipline is the thing that will get us to the appropriate resolution.

And I think that the discipline we've shown over the last decade has given us the opportunities to make the investments we're making now for the next decade.

The Senate budget bills passed out of committee unanimously a few hours later.

The bills passed on the Senate floor with bipartisan support.

These bills will go back to the House where lawmakers will either approve or reject the Senate's changes.

For Kentucky Edition, i'm clayton dalton.

Thank you.

Clayton also and the new budget from the senate, it increases juror pay significantly, an increase that takes the daily wage from $5 to $25 a day.