GOOD EVENING.

WELCOME TO KENTUCKY TONIGHT.

I'M RENEE SHAW.

THANKS FOR JOINING US.

LAST WEEK, THE KENTUCKY HOUSE DEBATED AND PASSED A TWO-YEAR BUDGET.

IT STILL NEEDS SENATE ACTION.

THE HOUSE PLAN INCREASES BASE FUNDING FOR K THROUGH 12 EDUCATION, FULLY FUNDS SCHOOL TRANSPORTATION, MEETS PUBLIC PENSION OBLIGATIONS, AND SPENDS MILLIONS ON CLEAN DRINKING WATER INITIATIVES, PUBLIC SAFETY AND MORE.

BUT ITS CRITICS SAY IT STILL DOESN’T DO ENOUGH FOR CHILD CARE, HEALTH CARE, OR EDUCATION — AT A TIME WHEN KENTUCKY HAS A RECORD “RAINY DAY” FUND.

TO TALK ABOUT THE BUDGET, WE ARE JOINED IN OUR LEXINGTON STUDIO BY: STATE REP. JOSIE RAYMOND, A LOUISVILLE DEMOCRAT; ANDREW MCNEILL, PRESIDENT OF THE KENTUCKY FORUM FOR RIGHTS, ECONOMICS & EDUCATION; JASON BAILEY, EXECUTIVE DIRECTOR OF THE KENTUCKY CENTER FOR ECONOMIC POLICY.

ANNE-TYLER MORGAN, ATTORNEY AND MEMBER OF MCBRAYER, PLLC; AND WE’LL HEAR FROM THEM SHORTLY.

BUT FIRST, I SPOKE TO HOUSE BUDGET CHAIRMAN JASON PETRIE EARLIER TODAY ABOUT THE HOUSE VERSION OF THE TWO-YEAR SPENDING PLAN.

CAN CHAIRMAN THANK YOU FOR YOUR TIME.

WE APPRECIATE IT.

>> THANK YOU VERY MUCH.

>> Renee: LET'S TALK ABOUT THE STATE BUDGET.

THERE ARE A COUPLE OF DIFFERENT BILLS LET'S FOCUS ON HOUSE BILL 6.

IF YOU CAN SCHOOL KENTUCKIANS HOW BIG THIS BUDGET IS, HOW MUCH IS THE GENERAL FUND DOLLARS VERSUS WHAT IS FEDERAL DOLLARS?

>> HOUSE BILL 6 IS THE OPERATING BUDGET AND CAPITAL PROJECTS AND EVERYTHING REGARDING THE EXECUTIVE BRANCH.

THE LARGE BUDGET BILL.

AND AS FAR AS SIZE, YOU ARE LOOKING AT APPROXIMATELY $15 BILLION A YEAR IN GENERAL FUND.

EXPENDITURES AS WELL AS OVER $60 BILLION TOTAL INCLUE ACTIVE OF ALL FUNDS SOURCES.

$120 BILLION FULL FUND SOURCES.

>> Renee: WHEN WE TALK ABOUT THE BUDGET RESERVE TRUST FUND AND YOU KNOW SOME PEOPLE CALL THE RAINY DAY FUND, EVERY NOW AND THEN I WILL REFER TO IT AS THAT.

IT HAS $3.7 BILLION, WHICH IS A RECORD FOR KENTUCKY.

DOES HB6 USE ANY MONEY FROM THE TRUST FUND, RAINY DAY FUND?

>> NO.

REALLY GOOD QUESTION.

HOUSE BILL 6 IS DESIGNED JUST TO DEAL WITH RECURRING REVENUES AND RECURRING EXPENDITURES.

THAT IS THE OPERATING BUDGET.

HOUSE BILL 1 WOULD DEAL WITH THE BUDGET RESERVE TRUST FUND AND ONLY DEAL WITH ONE-TIME EXPENDITURES.

ONE-TIME MONEY FROM A SAVINGS ACCOUNT FOR ONE-TIME EXPENDITURES ON HOUSE BILL 6, RECURRING REVENUES AND RECURRING EXPENDITURES.

>> Renee: IS HOUSE BILL 6 CRAFTED WITH THE INTENTION TO MEET THE TRIGGERS THAT WERE REQUIRED THAT WERE SETUP INTO LAW TO REDUCE THE STATE INCOME TAX?

IS THAT PART OF HOUSE BILL 6?

>> NO.

AND THAT QUESTION IS COME FROM SOME RADIOS AS INTERVIEWS AS WELL AS IN-PERSON.

IT'S INTERESTING, I WOULD LIKE TO BE ABLE TO LOOK AT THINGS LIKE THAT AS WE'RE CRAFTING THE BUDGET BUT WE CAN'T DO THAT THE MECHANISM IN THE PROCESS WORKS INSIDE THE LRC.

THIS BUDGET IS BUILT BLOCK BY BLOCK STARTING WITH PENSIONS AND PERSONNEL AND THEN AGENCY BUDGET REQUEST AND ONLY AT THE END DO WE GET NUMBERS AND HOW MUCH IS EXPENDED.

OR HOW MUCH IS NOT EXPENDED.

REALLY WE'RE TRUSTING OUR PHILOSOPHY MAKING SURE AS EVERYTHING COMES TO US IN THE BUDGET PROCESS, IS IT A LEGITIMATE PURPOSE OF LIMITING STATE GOVERNMENT TO TAKE IT ON?

IF IT IS, THEN WHAT IS THE AMOUNT TO MAKE SURE WE HAVE EFFECTIVE AND EFFICIENT SERVICES TO RENDER TO CONSTITUENTS.

WE APPLY THAT THROUGHOUT THE PROCESS FROM BUILDING BLOCK ONE TO THE END AND WE GET OUR NUMBERS BACK AT THE END.

>> Renee: LET ME PIVOT TO THE LANGUAGE ABOUT THE VACANCIES IN AGENCIES AND THERE'S CONFUSION ABOUT WHAT THIS LANGUAGE MEANS.

IF YOU CAN, MR. CHAIRMAN, TELL US WHAT EXACTLY IS IN THE BUDGET WHEN IT COMES TO AGENCY'S ABILITY TO FILL VACANCIES?

AND DOES THIS LANGUAGE AFFECTIVE EMPLOYEES, IE COULD IT RESULT IN PERSONNEL CUTS IN ANYWAY?

>> FIRST OFF, I WILL HIT THOSE IN REVERSE ORDER.

FIRST, BASED ON THE INFORMATION WE HAVE FROM THE EXECUTIVE BRANCH, NO LIVE POSITIONS WOULD BE CUT.

NEVER INTENDED AND IF SOMEONE WERE TO SHOW US DATA THAT IS THE CASE WE WILL FIND A WAY TO MODIFY THAT SO IT DOESN'T HAPPEN.

CURRENT NUMBERS SAYS THERE ARE NO LIVE POSITIONS BEING CUT.

AND WHAT THE VACANCY CREDITS ARE THEMSELVES.

I THINK AS I SPAINED ON THE HOUSE FLOOR THE EASIEST WAY TO THINK OF IT IS THIS, IN EACH AGENCY THERE ARE POSITIONS UNFILLED.

AND LOTS OF THESE POSITIONS ARE UNFILLED FROM ONE YEAR TO THE NEXT TO THE NEXT SO THEY ARE PERENNIALLY VACANT.

THAT DOESN'T BOTHER US IN A BUDGETING PROCESS OR STATE GOVERNMENT PROCESS.

BUT THIS PIECE DOES.

VACANCY CREDITS WHICH MEANS WE APPLY FUNDING FOR EACH OF THOSE VACANT POSITIONS.

WE NOT ONLY HAVE A POSITION THAT IS NOT FILLED WE HAVE THE FUNDING SITTING THERE REGARDLESS OF IF IT IS FILLED OR NOT.

IF YOU WERE TO ASSESS BROADLY WE HAVE VACANCY CREDITS AROUND $160-170 MILLION EACH YEAR OF VACANT POSITIONS THAT THE FUNDING IS ATTACHED BUT IS NOT USED.

IT TAKES $170 MILLION OFF THE TABLE FOR USE ELSEWHERE.

AND PUT IT IS TO A POSITION THAT PROBABLY IS NOT GOING TO BE FILLED.

WHAT WE'VE TRIED TO DO IS EXEMPT CERTAIN AREAS WHERE WE'RE GOING TO REMAIN HOPEFUL THAT SOME POSITIONS CAN BE FILLED.

DEPARTMENT OF CORRECTIONS, DJJ, MILITARY AFFAIRS AND PLACES LIKE THAT.

HOPEFULLY THEY CAN BE FILLED.

WE WILL CONTINUE TO WATCH THAT MONTH BY MONTH, QUARTER BY QUARTER AND YEAR BY YEAR TO SEE IF THEY REMAIN PERENNIALLY VACANT OR WE START TO MAKE PROGRESS.

>> Renee: LET ME MOVE INTO THE EDUCATION PART OF THE BUDGET AND THIS WILL BE WHERE WE SPEND A LOT OF TIME ON OUR PROGRAM TONIGHT TALKING ABOUT MANY PEOPLE WHO WANTED SUPERINTENDENTS HAVE SAID THAT THE MONEY THAT HAS BEEN GIVEN TOWARDS SEEK WHICH IS MORE FOR POT OF THE FISCAL YEARS OF THE BIENNIUM WON'T MEET THE NEEDS FOR THEM TO ATTRACT AND RETAIN THEIR PERSONNEL THEIR TEACHERS AND AT A TIME WHEN WE ARE LOOKING AT SOME PLACES, PRETTY DIRE TEACHER SHORTAGES TALK TO US ABOUT THE WISDOM FOR THAT APPROPRIATEIATING DIRECTLY MONEY FOR TEACHER RAISES AND LEAVING IT UP TO THE LOCAL SCHOOL DISTRICTS TO DO SO?

>> WELL, I'M GOING TO TRY TO BREAK THIS DOWN IN AS EASILY ACCESSIBLE BLOCKS AS I CAN.

FIRST, REALIZE THAT THE SEEK PORTION THE SEEK ALLOCATION IS ONLY ONE PIECE OF LOCAL FUNDING.

SO WE HAVE NOT ONLY BASE PER PUB I WILL SEEK WE WAS TRANSPORTATION AND ANOTHER PROGRAM ADDED IN FOR SRO'S, SECURITY OFFICERS.

SO ALL OF THAT MONEY IN TOTAL I THINK $447 OR 450 IS BEING PUSHED INTO THE LOCAL DISTRICTS AS DISCRETIONARY FUNDS THEY CAN UTILIZE.

IF I RECALL IT'S $50 MILLION OR 1% RAISE FOR CERTIFIED AND NONCERTIFIED.

THAT WOULD LEAVE QUITE A LOT OF ROOM FOR RAISES OF DIFFERENT SORTS DEPENDING ON WHAT EACH LOCAL NEEDS.

WE ARE TRYING TO PLACE FOCUS AS BEST WE CAN ON ENTRY LEVEL POSITIONS NOT ALL THE WAY UP THE SCALE.

EVERYONE IS IMPORTANT, BUT RIGHT NOW WE HAVE A PARTICULAR CONCERNS ABOUT OTHER STATES POURER STATES THAT WOULD REALLY AFFECT THOSE ZERO TO THREE, ZERO TO FIVE TEACHERS AND I HOPE DISTRICTS ARE PUTTING THOUGHT IN WHAT THEY ARE DOING.

WHAT ABOUT ALLOCATING MONEY FOR TEACHER RAISES?

WE'VE CONTINUED TO PUSH MONEY IN THROUGH THE SEEK FORMULA AND OTHER TRANSPORTATION SRO'S SO THAT LOCAL DISTRICTS CAN MAKE THAT DECISION BASED ON LOCAL CIRCUMSTANCES.

HOWEVER, PUT THAT OFF TO THE SIDE FOR A MOMENT.

AND SAY THAT YOU WANTED TO JUST DESIGNATE A CERTAIN AMOUNT OF MONEY THAT WOULD FULFILL A CERTAIN PERCENTAGE INCREASE ACROSS THE ENTIRETY OF THE COMMONWEALTH.

IF YOU TRY TO PUT THAT THROUGH SEEK, YOU ARE GOING TO END UP WITH NO DISTRICT GETTING WHAT THEY THOUGHT THEY WOULD GET AND DISTRICTS WOULD SAY IF YOU GAVE A PERCENTAGE RAISE THEY KNOW THROUGH SEEK DISTRIBUTION FORMULA THEY WOULD HAVE TO COME UP WITH LOCAL STATE DOLLARS AND SUBSTANTIAL IN ORDER TO HIT THE PERCENTAGE RAISE THAT WE MIGHT MANDATE.

AND SECONDLY WHY NOT MANDATE A RAISE BY PERCENTAGE AND PLACE THAT OUTSIDE OF SEEK FORMULA.

>> THAT IS EXTRAORDINARILY CAREFUL AND WE ARE LOOKING AT THIS IN DIFFERENT AREAS.

BACK IN THE ROSE OPINION IN 1989, 1990, IF YOU READ THROUGH THAT, THE SEEK FORMULA WAS CREATED IN RESPONSE TO THAT SUPREME COURT OPINION TO MAKE SURE THAT THE GENERAL ASSEMBLY IS FAIRLY AND EFFECTIVELY DEALING WITH THE DISPARITY OF MORE AFFLUENT LESS AFFLUENT DISTRICTS.

WHEN YOU TAKE MONEY OUTSIDE OF THE SEEK FORMULA YOU WILL EXACERBATE THAT FORMULA.

WHEN YOU ALLOCATE ANY SUM OF MONEY, OUTSIDE OF SEEK, YOU ARE GOING TO EXACERBATE THE DISPARITIES.

AN EXAMPLE, TODD COUNTY MY HOME COUNTY AND THE TODD COUNTY SCHOOL DISTRICT.

AND I WILL TAKE JEFFERSON COUNTY SCHOOL DISTRICT.

JEFFERSON COUNTY THEY WILL HAVE A HIGHER PAY SCALE THAN TODD COUNTY WILL.

IF YOU GIVE A PERCENTAGE RAISE TO JEFFERSON AND THE SAME TO TODD COUNTY, YOU WILL HAVE MORE OF AN ABSOLUTE INCREASE IN JEFFERSON COUNTY THAN YOU WILL IN TODD AND YOU WILL EXACERBATED THAT DIFFERENCE BETWEEN THE MORE AFFLUENT AND THE LESS AFFLUENT DISTRICTS.

WE ARE TRYING TO KEEP THE FUNDS INSIDE SEEK FOR CONSTITUTIONAL PURPOSES.

BUT WHEN YOU UTILIZE THAT FORMULA WITHOUT BEING MODIFIED IT IS DIFFICULT TO GET TARGETED AMOUNTS OF MONEY TO TARGETED SCHOOLS BECAUSE THAT FORMULA IS NOT MADE FOR THAT.

IT IS A COMPLICATED -- IT IS A COMPLICATED AFFAIR.

>> Renee: THANK YOU CHAIRMAN.

LIKE I SAID WE COULD TALK MORE ABOUT THE BUDGET SO MANY QUESTIONS THAT YOU'VE HELPED CLARIFY AND WE WILL BE A GOOD POINT FOR OUR DISCUSSION THIS EVENING.

THANK YOU FOR YOUR TIME.

WE APPRECIATE IT.

>> VERY GOOD, THANK YOU FOR YOURS.

HAVE A GOOD DAY.

>> Renee: YOU, TOO.

NOW WE HAVE OUR PANEL AND IT'S YOUR TURN TO GET INVOLVED IN THE CONVERSATION.

SEND US YOUR QUESTIONS AND COMMENTS BY X — FORMERLY TWITTER -- @KYTONIGHTKET.

SEND AN EMAIL TO KYTONIGHT@KET.ORG.

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

WELCOME TO OUR GUESTS.

WE ARE IN THE SIXTH WEEK OF THE LEGISLATIVE SESSION, I WILL START WITH YOU REPRESENTATIVE RAYMOND.

AND YOU HEARD WHAT CHAIRMAN PETRI HAD TO SHARE NOW ABOUT THE BUDGET.

LET'S TALK ABOUT BUDGET HUT HITS AND MISSES.

>> THERE'S GOOD STUFF BUT FOR $15 BILLION THERE BETTER BE.

IT FULLY FUNDS SCHOOL TRANSPORTATION.

IT INCREASES MEDICAID WAIVERS.

WHICH IS GOING TO HELP FAMILIES WHO HAVE BEEN STRUGGLING.

OVERALL THIS BUDGET IS A MISSED OPPORTUNITY.

IT STOCKPILES BILLIONS OF DOLLARS, BILLIONS OF DOLLARS THAT WE HAVE AND DOESN'T DO ENOUGH FOR HOUSING, THE EDUCATION SYSTEM, INFRASTRUCTURE, CHILDCARE AND PRE-K, RETIREES OR HIGHER-ED.

WE ARE SITTING ON TOO MUCH MONEY.

WE'LL TALK ABOUT WHY.

BUT WE'RE SITTING ON BILLIONS OF DOLLARS WHEN WE DON'T NEED TO BE.

THE RESERVE TRUST FUND, SHOULD BE ABOUT 15%.

THIS IS BEST PRACTICE IT SHOULD COVER 45 DAYS OF OPEN RAILINGS FOR THE STATE.

WE ARE DOUBLE THAT.

WHAT DO WE SAY TO KENTUCKIANS THAT HAVE NEEDS WHEN WE ARE SITTING ON BILLIONS OF DOLLARS?

>> Renee: Mr. McNEIL ARE WE SITTING ON BILLIONS OF DOLLARS AND WE NEED TO REEVALUATE HOW MUCH MONEY WE HAVE IN THE RAIN ANY DAY FUND?

>> I BELIEVE WE HAVE A HEALTHY RAINY DAY FUND.

I THINK THAT IS A DELIBERATE CHOICE MADE BY THIS MAJORITY.

AND ESPECIALLY SINCE REPRESENTATIVE PETRI HAS ASSUMED THE CHAIR OF THE APPROPRIATIONS OF REVENUE COMMITTEE.

WORKING WITH SENATOR McDANIEL ON THE SENATE SIDE.

ABOUT FIVE YEARS AGO, FEW YEARS AGO, 2021, I WROTE A LETTER TO THE CHAIRS OF THAT COMMITTEE.

AND RECOMMENDED TO THEM THAT THERE WAS AN OPPORTUNITY TO BEGIN BUILDING A ADEQUATE AND LEGITIMATE STATE RAINY DAY FUND.

AND THE BALANCE THAT I RECOMMENDED AT THAT TIME WAS $750 MILLION.

THEY EXCEEDED THAT AND THEY HAVE CONTINUED TO REMAIN COMMITTED TO BUILDING UP SUFFICIENT BUDGET RESERVES TO PROTECT AGAINST OR TO PREPARE US FOR THE NEED OF ANY UNFORESEEN NATURAL DISASTERS.

IT IS A PREPARATION FOR WHEN THE ECONOMY FACES A POTENTIAL DOWNTURN AND REVENUES AREN'T BEING GENERATED AT THE PACE THEY ARE.

THEY ALLOW FOR THE DOLLARS TO BE PLUGGED IN TO SMOOTH OUT SOME OF THE BUMPS OF REVENUE PICTURE THAT IS NOT AS ROBUST AS IT IS TODAY.

AND IT'S ALSO JUST A STRONG COMMITMENT TO FISCAL CONSERVATISM.

THEY ARE CHOOSING NOT TO SPEND MONEY FOR A VERY RESPONSIBLE REASON.

AND I THINK THAT WHAT I HAVE BEEN LED TO UNDERSTAND IS THAT THE RAINY DAY FUND BALANCE AT THE END OF THIS BUDGET WILL BE AT ABOUT $2 BILLION IN THAT ACCOUNT.

AND THAT WILL FALL VERY WELL WITHIN THAT PARAMETER OF HAVING 40-45 DAYS OF OPERATIONAL EXPENSES CLOSE TO THE 15% OF RESERVES.

AND IT'S BEEN AN IMPORTANT DECISION AND REALLY A DECISION THAT CAME FROM A NEED TO REALLY DO THINGS DIFFERENTLY.

AND FOCUS ON HOW WE CAN RESPECT THE TAXPAYER DOLLAR AND RESPECT LIMITED GOVERNMENT OUTLOOK WHICH IS KEEPING SPENDING TO AN APPROPRIATE LEVEL TO MEET NEEDS, MEET SERVICES, BUT BE RESPECTFUL AND RESPONSIBLE.

>> Renee: AND DO YOU AGREE MANY WOULD SAY KENTUCKY HAS A ROBUST CASH FLOW IF YOU ARE NOT GOING TO MAKE INVESTMENTS NOW THEN YOU NEVER WILL?

>> I THINK WHAT WE'RE HEARING IS THAT KENTUCKY NO LONGER NEEDS TO OPERATE FROM A SENSE OF SCARCITY AND FEAR AND SPENDING QUICKLY.

THANKS TO LEGISLATIVE LEADERSHIP AND THE FISCALLY CONSERVATIVE AGENDA THAT THEY HAVE ESPOUSED SINCE 2018 INCLUDING STRATEGIC TAX REFORM KENTUCKY IS PROJECTED TO SURPASS $16 BILLION BY 26.

WE HAVE MONEY TO SAVE AND CONTINUE FISCALLY PRUDENT MANNER OF SPENDING OUR MONEY STRATEGICALLY TO HELP KENTUCKIANS WHILE PREPARING FOR THE FUTURE.

>> Renee: WHAT'S WRONG WITH THAT, JASON BAILEY?

>> WELL, THE BUDGET DOES AND CONTINUE TO PILE UP MONEY IN THE BUDGET RESERVE TRUST FUND.

THE 3.7 BILLION IN THERE NOW.

AT THE END IF YOU PASS THE HOUSE BUDGET THERE WILL BE 5.2 BILLION BY THE END OF THE BIENNIUM.

THERE'S MONEY DEPOSITED IN THE FUND IN THE BUDGET ON PAGE 163 OF THE BUDGET IF YOU WANT TO FOLLOW ALONG AT HOME.

SO THEY ARE GOING TO GROW A FUND THAT IS ALREADY MUCH LARGER THAN WE NEED TO PREPARE FOR THE NEXT DOWNTURN OR FUTURE EMERGENCIES.

WHY ARE WE DOING THAT?

YOU CAN'T CONTINUE TO STUFF MONEY IN A MATTRESS WHEN YOUR ROOF IS LEAKING.

WE ARE WAY BEYOND THAT.

AND WE ARE LOOKING AT A BUDGET NOW THAT I THINK WHILE IT HAS BRIGHT SPOTS IS A MISSED OPPORTUNITY BUDGET.

BECAUSE THERE ARE NEEDS IN THE STATE THAT HAVE BEEN IDENTIFIED BY KENTUCKIANS AND PUBLICLY IDENTIFIED AS ISSUES THAT ARE NOT BEING MET.

THE CHILDCARE INDUSTRY IS ON THE BRINK WITH THE LOSS OF 330 MILLION ANNUALLY.

WE HAVE A TEACHER SHORTAGE THAT IS GETTING WORSE ALL THE TIME.

THEY ARE ENTERING THE TRAINING PROGRAMS AND WE ARE HAVING A PROBLEM STAFFING THIS CORE SERVICE.

THERE'S NOT MONEY IN THE BUDGET FOR HOUSING.

THERE'S NOT MONEY TO PROVIDE A EXTRA PAYMENT FOR RETIREES WHO HAVEN'T GOT ONE SINCE 2011.

THERE'S THAT MONEY TO ADDRESS THE WAGE COMPRESSION FOR EMPLOYEES LONG-TERM EMPLOYEES ARE NOT MAKING MUCH MORE THAN BRAND NEW WORKERS.

THERE IS NOT MONEY TO ADEQUATELY ADDRESS THE WATER CLEAN WATER PROBLEM.

THERE ARE NEEDS OUT THERE.

IT'S RAINING IN OUR COMMUNITIES AND THE MONEY IS THERE FOR A CHANGE.

AND I'VE BEEN AROUND AND WATCHED THIS PROCESS FOR DECADES.

AND MANY YEARS THERE WASN'T MONEY BUT THERE IS NOW BUT IT'S BEING STOCKPILED.

BILLIONS AND BILLIONS ARE BEING ADDED IN THIS BUDGET THAT WE ARE LOOKING AT, AND THAT IS THERE COMES A POINT WHERE IT IS A MISS ALLOCATION OF PUBLIC RESOURCES.

PEOPLE PAY TAX DOLLARS TO MEET PUBLIC NEEDS AND WHEN THEY ARE BHG PUT AWAY IN A FUND, YOU HAVE TO ASK WHY?

>> Renee: THIS QUESTION FROM A VIEWER TONIGHT.

HB6 PROVIDES HALF A PERCENT INCREASE FOR AGING AND INDEPENDENT LIVING.

108.1 MILLION AND 108.7 MILLION.

WHY SUCH A MINUTE SCHOOL UP PLIFT?

>> .

>> .

>> THIS PERSON HASN'T CONTACTED THEIR LEGISLATORS YET THEY NEED TO DO SO SO BECAUSE WE RELY ON FOLKS' EXPERTISE.

IT'S LAUGHABLE TO SAY THIS REPUBLICAN SUPER IMAGE IS ONE OF LIMITED GOVERNMENT.

THIS IS A GROUP OF PEOPLE WHO WANT TO HAVE CONTROL OVER OUR BODIES TELL PARENTS WHAT MEDICATION THEY CAN GIVE TO THEIR KIDS AND MICRO MANAGE WHAT TEACHERS TEACH.

WE OFTEN HEAR THE STATE BUDGET COMPARED TO A HOUSEHOLD BUDGET.

EVERY FINANCIAL EXPERT WOULD SAY IT'S FOOLISH ONCE YOU'VE GOT YOUR CUSHION YOUR THREE-MONTH EMERGENCY FUND TO KEEP STOCKPILING MONETH THIS CASE BILLIONS OF DOLLARS WHEN YOU COULD INVEST.

WE NEED IN CASE THE REVENUE GOES SOMEWHERE.

WHERE IS IT GOING?

THERE'S THIS GOAL TO GET US TO BE A ZERO PERCENT INCOME TAX STATE THAT WOULD DO AWAY WITH 40% OF OUR GENERAL FUND.

WHAT IF 40% OF YOUR HOUSEHOLD BUDGET WENT AWAY.

WE HAVE NOT HEARD WHAT THE PLAN IS TO REPLACE THAT.

THERE'S EITHER NO PLAN AT ALL OR A PLAN SO BAD THEY WON'T TELL US WHAT IT IS.

>> Renee: WHAT DO WE KNOW ANDREW MCNEILL?

>> I WILL SAY DEATH TAXES AND THE PROGRESS ACTIVITY LEFT COMPLAINING THERE IS NOT ENOUGH MONEY SPENT BY GOVERNMENT THREE CERTAINTIES IN LIFE AND TONIGHT IS NO EXCEPTION.

THE FRAMEWORK FOR TAX POLICY IS BASED UPON REVENUE TARGETS BEING MET FIRST AND FOREMOST.

PAIRED THAT WITH A RAINY DAY FUND BALANCE THAT EXCEEDS 10% OF GENERAL FUND EXPENDITURES.

SO IT IS DESIGNED SO THAT THE REVENUE TO MEET THE SET OF SERVICES AND COMMITMENTS THAT WE'VE MADE, IS AND WILL BE SUFFICIENT TO MOVE FORWARD WITH A BUDGET THAT MEETS THOSE REQUIREMENTS.

THIS DISCUSSION ABOUT THE STOCKPILING OF FUNDS, THERE IS AND WILL CONTINUE TO BE AN ACCUMULATION OF DOLLARS INTO THE BUDGET RESERVE TRUST FUND THAT IS MONEY THAT LAPSES AT THE END OF EACH FISCAL YEAR.

AND WHAT HAS THAT MADE POSSIBLE?

WHICH IS HOUSE BILL 1.

AND HOUSE BILL 1 IS SPENDING $1.8 BILLION ON A VARIETY OF ONE-TIME EXPENDITURES.

THEY DON'T WANT THOSE EXPENDITURES BUILT INTO THE BASELINE.

BECAUSE THEY ARE ONE-TIME INVESTMENTS IN THE MONEY ISN'T THERE IN THE FUTURE, THEN THAT CREATES A COMPLICATION WITH BEING ABLE TO CONTINUE TO MEET THOSE GOALS.

BUT THEY ARE PUTTING $1.112, 1.2 BILLION INTO OUR PENSION SYSTEMS.

WHICH ALTHOUGH THEY ARE ON STRONGER FOOTING TONIGHT THAN THEY HAVE BEEN IN PREVIOUS YEARS, ARE STILL SOME OF THE MOST CHRONICALLY UNDERFUNDED PENSION SYSTEMS IN THE UNITED STATES.

SO THEY ARE PICKING AND CHOOSING TARGETED INVESTMENTS WITH THIS THESE SAVINGS THEY HAVE ACCESS TO AND THAT THEY HAVE RESPONSIBLY PUT AWAY.

AND SO I THINK THAT IT'S A LITTLE BIT DISINGENUOUS TO SAY THEY ARE STOCKPILING FOR THE SAKE OF STOCKPILING IT.

THEY ARE PUTTING THAT TO USE WHERE APPROPRIATE AND TOWARDS PRIORITIES THAT COULD BE BENEFICIAL TO RETIREES, CAN BE BENEFICIAL TO SEWER AND WATER PROJECTS AROUND THE STATE.

AND OTHER TYPES OF ECONOMIC DEVELOPMENT CAPITAL INVESTMENTS.

>> Renee: A GROUP OF RETISHRIES LEFT OUT ARE ARE THE STATE WORKERS WHO ARE RETIRED AND THIS COMES FROM ANTHONY.

HAS THERE BEEN ANY DISCUSSION FOR COST OF LIVING DISCUSSIONS FOR RETIREES.

JASON BAILEY TELL ME ABOUT THAT.

>> IT WOULD BE $100 MILLION PROVIDING AN EXTRA CHECK AS I MENTIONED THOSE RETIREES HAVE NOT GOTTEN A RAISE AND COST OF LIVING ADJUSTMENT SINCE 2011.

THEY HAVE LOST A THIRD OF THE VALUE OF THEIR PENSION.

AND YOU KNOW, THESE WERE WORKERS WHO DEVOTED THEIR LIFE TO PUBLIC SERVICE.

THE IDEA THE PENSION WOULD BE THERE AT THE END OF THE DAY.

OF AND FOR MOST OF OUR HISTORY WE'VE HAD COST OF LIVING ADJUSTMENTS LIKE SOCIAL SECURITY THAT PENSION DOESN'T LOSE ITS VALUE THE MORE YOU NEED THE HEALTHCARE.

SO IT IS A REPRIEVE.

IT IS SAYING WE HAVE BILLIONS AND BILLIONS OF DOLLARS AND WE'VE MADE PROGRESS ON THE PENSION LIABILITIES WE CAN ALSO AFFORD AT THE SAME TIME TO LEND A HAND TO OUR RETIREES BUT IT IS NOT IN THERE BECAUSE THE MONEY IS BEING STOCKPILED IN RESERVES 5.2 BILLION.

AND I DON'T THINK IT'S STOCKPILED FOR NO REASON I THINK THERE IS A REASON.

AND THIS BUDGET HAS GYMNASTICS TO TRY TO HIT THE TRIGGERS FOR ADDITIONAL INCOME TAX CUTS AND AS MENTIONED 40% OF OUR BUDGET CAME FROM THE INDIVIDUAL INCOME TAX AND CONTINUE TO CUT IT AND WE WILL HAVE CATASTROPHIC BUDGET SHORTFALLS THAT YOU HAVE TO PULL ON THE MONEY SOMEWHERE.

THAT IS WHAT IS HAPPENING HERE.

>> THE CHAIRMAN SAYS THAT DOES THAT CREATE THE CONDITIONS BY WHICH THE TRIGGER WOULD BE AUTOMATICALLY SATISFIED?

>> IF YOU LOOK AT THE BOTTOM LINE IT'S JUST ABOUT THE AMOUNT LESS THAN THE REVENUE TO TRIGGER AN INCOME TAX CUT IN 2025.

THE OTHER THING IS HOUSE BILL 1 SPECIFICALLY SUSPENDS THE TRIGGER LAW AND SAYS IGNORE THIS $900 MILLION IN INFRASTRUCTURE SPENDING WHEN YOU COUNT WHAT COUNTS TOWARD THE TRIGGER.

JUST IGNORE THAT.

WHEN YOU DO THE CALCULATION.

YOU WOULDN'T PUT THAT LANGUAGE IN THERE UNLESS YOU WERE TRYING TO HIT THE TRIGGER.

THAT IS THE SOLE REASON FOR DOING THIS.

SO THERE'S ALSO A LOT OF DEBT IN THIS BUDGET.

THERE'S $2.7 BILLION IN BORROWING IN THIS BUDGET.

AND THAT BORROWING, AGAIN, BECAUSE IT'S NOT CURRENT SPENDING YOU ARE NOT USING THE CASH YOU HAVE TO PAY FOR INFRASTRUCTURE PROJECTS.

YOU ARE BORROWING A LARGE AMOUNT OF MONEY.

THAT PUSHES OFF THE COST INTO FUTURE YEARS AND ALSO A WAY TO AVOID THE -- TO HIT THE TRIGGER.

THERE'S SPECIAL EFFORTS MADE TO REDUCE THE INCOME TAX.

IF WE REDUCE IT NEXT SESSION IN THE SESSION AFTER THAT WHICH BOTH SEEM TO BE AIMED AT HERE WILL HAVE A 3% INCOME TAX.

ONE OUT OF EVERY SIX DOLLARS WILL BE GONE AFTER THAT POINT IN TIME.

THAT IS A BIGGER CUT THAN KANSAS MADE IN 2012 THAT THEY HAD TO ROLLBACK FIVE YEARS LATER.

MORE LOST REVENUE THAN WE SPEND ON THE MEDICAID PROGRAM WHICH COVERS A MILLION-AND-A-HALF KENTUCKIANS.

I'M WORRIED WHERE WE ARE HEADED WITH THIS.

BUT THERE ARE THE SPECIAL EFFORTS NAD IN THIS BUDGET TO HIT THE TRIGGERS AT LEAST THOSE TWO YEARS.

>> JASON MENTIONED GYMNASTICS I KA YOU WILL IT SHADY, SHIFTY, SNEAKY LEGISLATING AND WHAT HAPPENED WAS WE PASSED THE HOUSE BUDGET HOUSE BILL 6 IN A ESPECIALLY CALLED MEETING AFTER THE THREE MEETINGS HAD BEEN CANCELED.

AND THEN DEMOCRATS REQUESTED CAN WE HOLD THE FLOOR OPEN SO WE CAN FILE AMENDMENTS FROM THE ESPECIALLY CALLED MEETING AND THE ANSWER WAS NO.

OUR AMENDMENTS FOR LAW ENFORCEMENT RAISES, TEACHERS RAISES AND RETIREE COST OF LIVING AJUSTMENTS WERE OUT OF ORDER BECAUSE THE REPUBLICAN SUPER MAJORITY DID NOT WANT IT VOTE FOR OR AGAINST THOSE.

>> TYLER DO YOU HAVE A RESPONSE TO THAT?

>> THE PROCEDURAL DEBATE HAS BEEN ONGOING FOR AS LONG AS I CAN REMEMBER.

EVEN WHEN THE DEMOCRATS WERE IN POWER, THESE PROCEDURAL DEBATES WERE ONGOING.

I THINK WE NEED TO PUT OUR FOCUS WHAT IS IN THE BUDGET RATHER THAN WHAT ISN'T AND WHATEVER PROCEDURAL DEBATE GOT US HERE AND WE WILL BE ONGOING I'M SURE FOR EVERY BUDGET SESSION IN THE FUTURE.

I REALLY FOCUS A LOT MY ATTENTION ON HEALTHCARE AND ECONOMIC DEVELOPMENT.

WE SEE INCREDIBLE SPENDING IN THOSE AREAS THAT IS CLEARLY DIRECTED BY THE CABINETS IN CHARGE OF THOSE AREAS.

I WILL POINT OUT THE SLOTS FOR MICHELE P WAIVER AND SUPPORTS FOR COMMUNITY LIVING WAIVER AND HOUSING COMMUNITY COMMUNITY-BASED SERVICE WAIVERS PEOPLE MAY NOT KNOW WHAT THOSE ARE BUT THOSE ARE TO SUPPORT OUR DISABLED KENTUCKIANS AND THEY ARE INCREDIBLY IMPORTANT PROGRAMS AND THAT SUPPORT WAS DIRECTED BY THE DEPARTMENT FOR MEDICAID SERVICES.

THOSE ARE BEEN REQUESTED AND MADE FOR SOMETIME BY INDUSTRY PROFESSIONALS IN THOSE AREAS.

AND THEN SWITCHING TO CHICK DEVELOPMENT, YOU SEE INCREDIBLE SPENDING IN HOUSE BILL 1 TO SUPPORT THE GOVERNOR'S INITIATIVES THROUGH THE CABINET FOR ECONOMIC DEVELOPMENT TO SUPPORT COUNTIES THAT HAVE MEGA SITE PROJECTS, THEIR CRITICAL INFRASTRUCTURE AND HARDEN COUNTY TO SUPPORT THE FORD PROJECT.

I WOULD LOVE TO TALK MORE ABOUT THE SPENDING THAT IS IN THE BUDGET CALLED FOR BOTH BY THE GOVERNOR AND THE LEGISLATURE BECAUSE I THINK THERE ARE A LOT OF COMMON AREAS OF CONCERN.

>> Renee: THERE ARE SOME AREAS OF CONCERN ABOUT WHAT IS NOT IN THE BUDGET.

SO LAST WEEK, OUR JUNE LOEFFLER TALKED TO EDUCATION AND CHILDCARE VKS ABOUT WHAT IS MISSING AND HERE IS WHAT THEY HAD TO SAY.

>> A CRY AROUND KENTUCKY'S CHILDCARE SECTOR GROWS LAUDER.

>> WE AS A STATE AND 49 OTHER STATES ARE FLAT OUTSTANDING ON A CLIFF BECAUSE FEDERAL BENEFITS THAT EMANATED FROM THE PANDEMIC ARE READY TO VANISH.

>> KENTUCKY STARTED RECEIVING $330 MILLION ANNUALLY FOR CHILDCARE COSTS DURING THE PANDEMIC.

THOSE FUNDS CRY UP THIS -- DRY UP THIS SEPTEMBER.

KENTUCKY'S HOUSE OF REPRESENTATIVES SAYS IT WILL INVEST OVER $50 MILLION A YEAR.

A BUMP IN KENTUCKY SPENDING BUT A FAR CRY FROM WHAT THE FEDS HAD OFFERED.

>> I'M CONCERNED THAT THOSE INVESTMENTS ARE NOT ENOUGH TO PREVENT EVEN A CLIFF IN CHILDCARE MUCH LESS IMPROVE OUR CHILDCARE LANDSCAPE.

RIGHT NOW, AROUND 60% OF KENTUCKIANS IS A CHILDCARE DESERT THERE ARE THREE CHILDREN WHO ARE VYING FOR EVERY AVAILABLE SLOT THAT IS UNACCEPTABLE TO ME.

>> WITHOUT SIGNIFICANT STATE BUDGET INVESTMENT, THE ENTIRE STATE IS GOING TO BECOME A CHILDCAREDERS EARTH.

>> EARLY CHILDHOOD IS ABOUT GETTING OUR YOUNGEST OFF TO A STRONG START, READY FOR DEBATER.

WHEN THEY ARE READY FOR KINDERGARTEN WE SEE STRONGER OUTCOMES IN THIRD GRADE READING AND MATH WHICH SETS THE PEOPLE UP FOR SUCCESS IN I HAD INLE AND HIGH SCHOOL.

>> YOUTH AND EDUCATION ADVOCATES SAY THERE'S WINS IN THE HOUSE BILL.

>> THERE'S SIGNIFICANT INVESTMENT FOR FULL FUNDING OF THE KINDERGARTEN.

AND WE'RE PLEASED TO SEE AGAIN.

THIS YEAR FOR THE FIRST TIME THE HOUSE IS PROPOSING FULLY FUNDING SCHOOL TRANSPORTATION.

WHICH IS REALLY AN IMPORTANT ISSUE FOR URBAN AND RURAL AREAS ALIKE.

BUT MORE IMPORTANT FOR RURAL AREAS OF OUR STATE.

THEY ARE PUTTING SIGNIFICANT DOLLARS AGAIN FOR THE THIRD STRAIGHT BUDGET INTO POST-SECONDARY EDUCATION FOR NEED BASED AID FOR STUDENTS AND INTO OUR UNIVERSITIES ACROSS THE STATE.

THIS IS REALLY IMPORTANT FOR KENTUCKY'S ECONOMY AND FOR MAKING SURE KENTUCKIANS HAVE THE SKILLS AND CREDENTIALS THEY NEED TO BE SUCCESSFUL.

>> WE KNOW THAT JUVENILE JUSTICE IN THE COMMONWEALTH IS AT BEST A HOT MESS.

WELL, WHAT THIS BUDGET DOES IS IT REALLY GOES UPSTREAM.

IT LOOKS AT DIVERSION AND PREVENTION PROGRAMS AND OPPORTUNITIES.

WHICH IS EXACTLY WHAT WE NEED TO BE DOING.

WAY TO GO HOUSE.

>> THAT INCLUDES MORE THAN HALF A MILLION DOLLARS FOR TEEN THERAPEUTIC HOMES ACROSS THE STATE.

>> YOU WILL SEE SOME IMPORTANT MOVE AHEADS AROUND CHILD MALTREATMENT.

YOU WILL SEE IMPORTANT IMPROVEMENTS IN SERVICES FOR YOUNG PEOPLE AGING OUT OF CARE.

WE ARE ESPECIALLY EMBOLDENED BY THEIR COMMITMENT TO KINSHIP CARE WHICH WE BELIEVE IS A REALLY IMPORTANT ELEMENT IN THAT CHILD WELFARE CONTINUUM.

>> ONE THING LAWMAKERS HAVE BARELY DISCUSSED ARE TAX BREAKS FOR POOR AND WORKING FAMILIES.

SOMETHING KENTUCKY YOUTH ADVOCATES SAYS WOULD BE AN IDEAL INVESTMENT.

FOR "KENTUCKY TONIGHT" I'M JUNE LOEFFLER.

>> Renee: THANK YOU.

NOT OFTEN THAT WE HAVE A GUEST ON TAPE OR IN-PERSON THAT REFERRED TO SOMETHING AS A HOT MESS.

THAT GAVE ALL OF US A CHUCKLE.

LET'S BE SERIOUS ABOUT THIS.

SOME HITS AND MISSES THAT THESE ARE PROGRESSIVE GROUPS BY AND LARGE LOOK AT THE CHILDCARE SITUATION WHICH WE HAVE NOT DISCUSSED YET WHICH IS A MAJOR JUGGERNAUT.

>> THESE ARE PROGRESSIVE PEOPLE THAT WANTS TO SEE PROGRESS IN KENTUCKY.

LET'S TALK ABOUT CHILDCARE AND PRE-K.

THE FREE MARKET DOES NOT WORK HERE.

PARENTS CANNOT PAY AND TEACHERS CANNOT AFFORD TO STAY.

IT NEEDS PUBLIC INVESTMENT.

WE'VE LOST HALF OF OUR CHILDCARE CENTERS MORE THAN 1700.

AND WHO SHOULDERED THAT BURDEN?

MOTHERS.

THERE IS A REASON WHY WOMEN WITH YOUNG CHILDREN ARE IN THE WORKFORCE AT 30 PERCENTAGE POINTS LOWER THAN MEN WITH YOUNG CHILDREN.

THE BURDEN FALLS ON MOTHERS.

I HEAR PEOPLE SAY WE SHOULDN'T SUBSIDIZE THE PRIVATE SECTOR.

WE DO IT ALL THE TIME AND YOU WERE TALKING ABOUT THE GOVERNOR'S 100 MILLION CLOSING FUND.

THOSE CORPORATE HANDOUTS WE DO THE SAME THING FOR THE HORSERACING INDUSTRY, THE HOTEL RENOVATIONS, CRYPTO CURRENCY, THE FORD ELECTRIC VEHICLE BATTERY PLANT.

IF WE DON'T INVEST NOW IN OUR CHILD CARE WE ARE GOING TO LOSE CHILDCARE WORKERS CENTER ALSO CLOSE, TUITION WILL SKYROCKET CHILDCARE TUITION IS HIGHER THAN COLLEGE TUITION AND MORTGAGE RATES.

YOU WILL SEE FEWER KIDS IN CARE AND THE RIPPLE EFFECT.

>> ANNE-TYLER MORGAN THIS IS AN ECONOMIC DEVELOPMENT ISSUE, CHILDCARE.

>> ABSOLUTELY.

I AGREE.

CHILDCARE SUPPORTS ARE INCREDIBLY IMPORTANT AND I THINK THAT IS WHY THIS BUDGET SET OUT TO TAKE CARE OF SOME OF THAT.

IT DID NOT REACH THE LEVEL OF GOVERNOR'S WISH LIST BUT THAT IS HOW THE PROCESS WORKS.

WE START WITH THE GOVERNOR'S BUDGET THAT CALLS FOR EVERYTHING THAT COULD BE POSSIBLE.

AND A HOUSE BUDGET THAT IS MORE CONSERVATIVE AND IT DEPOSE TO THE SENATE.

AND MAYBE ADD THINGS.

AND THEN IT GOES TO CONFERENCE COMMITTEE AND WE COME OUT WITH A FINAL PRODUCT.

WE NEED TO REFRAME THE ISSUE WHAT COULD HAPPEN IN THE SENATE.

AND IN CONFERENCE COMMITTEE.

>> Renee: SO YOU THINK THAT COULD BE RESOLVED?

>> SOME ISSUES AROUND CHILDCARE I'M SURE, AGAIN WE WILL PROBABLY NOT REACH THE FULL LEVEL OF MEASURES THAT HAVE BEEN CALLED FOR PARTIALLY BECAUSE THERE'S NOT INDUSTRY WIDE SUPPORT FOR ALL OF THOSE MEASURES SUCH AS UNIVERSAL PRE-K. >> LET'S BE CLEAR WHAT WE ARE TALKING ABOUT WITH DPAK IN THE DAYCARE DEBATE.

WHETHER THEY ARE FOR-PROFIT OR NOT-FOR-PROFIT DAYCARES ARE BUSINESSES.

IN MY 20 YEARS I CANNOT REMEMBER A GROUP OF SMALL BUSINESSES LOBBYING THE LEGISLATURE FOR HUNDREDS OF MILLIONS OF DOLLARS TO KEEP THEIR BUSINESS PROFITABLE.

THE HOUSE BUDGET HAS NEW MONEY TO HELP LOWER INCOME FAMILIES TO AFFORD THE COST OF THEIR DAYCARE THAT IS WORTH CONSIDERING I BELIEVE.

BUT THIS IDEA THAT DAYCARE CENTERS ARE INFRASTRUCTURE AND THAT THEY SHOULD BE FUNDED AS EARLY CHILDHOOD EDUCATION THAT DOESN'T HOLD-UP WITH ME.

TO THE POINT OF ANNE TYLER ADVOCATES ARE TURNING THEIR ATTENTION TO THE SENATE, SENATOR CARROLL HAS BEEN VOCAL ON THIS.

HE WORKS WITH A NONPROFIT ORGANIZATION THAT HAS SOME DAYCARE SERVICES.

AND I THINK THAT HE WILL BE ADVOCATING FOR GETTING MORE FUNDING IN THE SENATE VERSION OF THE BUDGET.

BUT I DON'T THINK HIS IDEAS HAVE BEEN VETTED.

AND CAN JUSTIFY COMMITTING TAXPAYERS TO A LONG-TERM RECURRING EXPENDITURE WITHOUT THE PUBLIC LEARNING MUCH MORE ABOUT IT.

THAT SHOULD HAPPEN IN THE INTERIM IT IN 24.

WE DON'T HAVE ENABLING LEGISLATION HOW WE'RE APPROACHING THIS DAYCARE CHALLENGE IF THERE IS ONE.

AND THIS NOTION, AGAIN, OF BUSINESSES COMING TO THE GENERAL ASSEMBLY AND SAYING YOU SHOULDN'T EXPECT US TO RAISE THE PRICE OF OUR SERVICES.

YOU SHOULDN'T EXPECT US TO MANAGE OUR PAYROLL IN THE WAYS THAT 99.9% OF ALL OTHER BUSINESSES ARE EXPECTED TO HANDLE THESE CHALLENGES.

THEY ARE SAYING APPROPRIATEIATE HUNDREDS OF MILLIONS OF DOLLARS TO KEEP US PROFITABLE.

I FIND THAT VERY TROUBLING.

>> CHILDCARE PROVIDER AND THEY WILL TELL YOU HOW MUCH PROFIT THEY ARE MAKING THEY ARE NOT A GOING CONCERN.

THE REASON WE'VE LOST 40% IS THE MARKET IS BROKEN.

PEOPLE ARE NOT MAKING ENOUGH IN WAGES TO AFFORD CHILDCARE.

AND WORKERS AT CHILDCARE CENTERS ARE NOT MAKING ENOUGH TO STAY IN THE JOB.

IT IS CENTRAL TO KEEPING AN ECONOMY GOING, KEEPING A FAMILY OPERATING, MAKING SURE A CHILD HAS A GOOD START TO LIFE AND THESE ARE YEARS OF BRAIN DEVELOPMENT THAT ARE IMPORTANT FOR THEIR LONG-TERM CHANCES OF SUCCESS.

THIS IS A PIECE OF OUR INFRASTRUCTURE.

AND I THINK MANY EMPLOYERS UNDERSTAND THAT.

IT'S NOT WORKING.

WHAT THE PANDEMIC MONEY DID 330 MILLION A YEAR, IT STOPPED THE CONTINUED SLIDE.

IT STOPPED THE DETERIORATION.

WE CAN'T WAIT FOR THE INTERIM WE CAN'T WAIT FOR A STUDY.

CENTER ALSO CLOSE THEIR DOORS.

WE SURVEYED THEM.

ONE IN FOUR SAID CLOSING THEIR DOORS IS THE FIRST OR SECOND OPTION THEY WILL LOOK AT.

THE OTHER OPTIONS ARE RAISING TUITION, CUTTING WAGES, LAYING OFF STAFF, ALL OF WHICH THEY SAID COULD LEAD THEM TO CLOSING THEIR DOORS ANYWAY.

THIS IS A CLIFF.

AND THIS IS A CHOICE POINT.

AND AGAIN, WE HAVE THE MONEY.

THE MONEY IS THERE.

BILLIONS OF DOLLARS.

>> .

>> Renee: HOW MUCH DO YOU NEED WOULD BE NEEDED TO FIX IT?

>> THE CONVERSATION NEEDS TO START WITH PREVENTING A CLIFF.

THE 330 MILLION THAT WE HAVE BEEN PUTTING IN, IS WHERE THE CONVERSATION SHOULD START.

WHAT THAT DID IS IT LET MORE KIDS BE MORE FAMILIES BE ELIGIBLE FOR THE ASSISTANCE THAN WERE BEFORE.

THE ELIGIBILITY LEVEL WAS WAY TOO LOW.

IT ALLOWED THE CENTERS TO BE PAID 80% OF MARKET RATE INSTEAD OF 70.

AND ALLOWED THEM TO RAISE WAGES A LITTLE BIT.

AND GIVEN HOW MUCH WAGES HAVE GONE UP IN OTHER JOBS IN THE PRIVATE SECTOR, THEY CANNOT COMPETE IF THEY HAVE TO GO BACK TO PAYING $8, $10 AN HOUR WHICH THEY TOLD US THE CENTERS TOLD US THAT IS WHAT IS GOING TO HAPPEN AND THEY WILL LOSE EMPLOYEES.

>> YOU DON'T SEE SMALL BUSINESSES GET SUBSIDIES LIKE GIANT CORPORATIONS BECAUSE THEY CANNOT AFFORD THE LOBBYISTS LIKE YOU ALL.

WE DID THE WORK IN 2023 IN THE CHILDCARE TASK FORCE AND I WILL SAY WHEN IT COMES TO CHILDCARE AND WHEN IT COMES TO THE BURDENS THAT WE PUT ON MOTHERS IN THIS COMMONWEALTH, THERE ARE IDEOLOGICAL DIFFERENCES ABOUT FISCAL POLICY, YES.

THERE ARE ALSO FRANKLY REALLY JACKED UPPED WHYS ABOUT THE ROLE OF WOMEN IN SOCIETY.

YOU HAVE WOMEN AT WORK SERVING IN ELECTED OFFICE VOTING TO MAKE IT SO OTHER WOMEN CAN'T GO TO WORK.

YOU HAVE WOMEN VOTING SAYING ONLY WEALTHY WOMEN CAN GO TO WORK.

YOU HAVE WOMEN SAYING ONLY WOMEN WHOSE OWN MOTHERS CAN WATCH THEIR CHILDREN CAN GO TO WORK.

WE NEED TO REALLY NAME IT.

ANTI-CHILDCARE IS ANTI-WOMEN.

>> Renee: DO YOU SEE THAT WAY ANNE-TYLER MORGAN?

>> I WILL MAKE A QUICK CORRECTION I AM NOT A LOBBYIST I AM A LAWYER AND REPRESENT A NUMBER OF PROVIDERS IN THE CHILDCARE INDUSTRY I KNOW THE PROFIT MARGINS ARE VERY TIGHT.

REGULATORY COMPLIANCE COSTS A LOT.

AND I AGREE THAT CHILDCARE IS A NECESSARY PART OF OUR ECONOMY.

IT IS A WORKFORCE ISSUE SO THAT IS WHERE ANDREW AND I MAY DIFFER IN THE IMPORTANCE OF CHILDCARE TO OUR WORLD AS A WHOLE.

I THINK THIS IS A NATIONAL ISSUE WORTH A LOT OF DEBATE.

AND THAT IS WHAT IS HAPPENING.

BUT, AGAIN, I WOULD EMPHASIZE THERE ARE A NUMBER OF MEASURES THAT NEED TO HAPPY IN CHILDCARE SOME MAY COME ACROSS IN THE NEXT VERSION OF THE BUDGET AND SOME ARE NOT IN THE BUDGET.

SOME OF THOSE MAY BE FOR EXAMPLE, TAKING CARE OF LAND USE ISSUES AND ZONING BARRIERS TO CHILDCARE CENTERS.

THERE ARE A NUMBER OF THINGS AND WE'RE JUST STARTING TO SEE THOSE TAKEN CARE OF.

>> Renee: TO MAKE A PIVOT FROM QUESTIONS THAT WE'VE GOTTEN FROM VIEWERS THIS IS FROM MIKE IN DANVILLE.

SO HE SAYS, HOUSE BILL 5 THE SAFER KENTUCKY ACT PASSED TWO WEEKS AGO STILL HAS NO FISCAL IMPACT STATEMENT IF THE GENERAL ASSEMBLY IS PUSHING IT WITHOUT EXPLAIN TO GO TO THE TAXPAYERS WHAT IT WILL COST WHILE IMPACTING THE STATE'S BURDENED CORRECTIONS SYSTEM.

DOES ANYONE KNOW WHAT HOUSE BILL 5 WILL COST TAXPAYERS?

>> IT IS A BUDGET BUSTER.

WE HAVE NOT SEEN A FISCAL NOTE.

THE BILL AIT IS WENT THROUGH THE PROCESS AND PASSED THROUGH THE HOUSE IT ADDED MORE COSTS THAT ABSOLUTELY NEEDS TO BE INCLUDED BEFORE IT MOVES FORWARD.

EACH PERSON THE BILL EXPANDS SENTENCES, LENGTHENSES SENTENCES IN MANY TYPES OF CRIMES CREATES NEW CRIMES EVERY PERSON THAT YOU LENGTHEN A FELONY SENTENCE FOR COSTS THE STATE $300,000.

ON AVERAGE.

SO 100 PEOPLE, THAT IS 30 MILLION.

IF IT IS A THOUSAND PEOPLE BECAUSE OF ALL OVER TIME, THAT IS 300 MILLION.

AND IT JUST KEEPS GOING UP.

WE'RE ALREADY SPENDING A LOT OF MONEY ON CORRECTIONS.

AND THERE'S NO WAY THAT PASSING THAT BILL AND CREATING THE NEW CRIMES WILL NOT TAKE MONEY FROM THE THINGS WE KNOW PREVENT CRIME, PREVENT THE CONDITIONS THAT LEAD TO CRIME.

WHICH LEAD TO SOCIAL PROBLEMS WHICH LARGELY STEM FROM POVERTY.

>> Renee: KENTUCKY FREE YOU HAVE ISSUES ABOUT THE LACK OF FISCAL IMPACT?

>> THIS IS AN AREA THAT JASON AND I SEE EYE TO EYE ON.

HOUSE BILL 5 IS ORIGINALLY FILED HAD AN INSUFFICIENT FISCAL NOTE ATTACHED TO IT.

THE BILL BROUGHT TO THE FLOOR HAD AN INCOMPLETE NONEXISTENT FISCAL NOTE THAT WAS PART OF THAT DISCUSSION AND DEBATE.

AND I THINK THAT IT IS SOMETHING THAT TAXPAYERS DESERVE TO KNOW.

FOR THE EXAM I DON'T KNOWS OF HOUSE BILL 5 -- CHAMPIONS OF HOUSE BILL 5 AND WE HAVE OPINIONS ON THE POLICY, BUT FOR CHAMPIONS THAT BELIEVE IN IT AND ARE WORKING HARD TO GET THIS BILL THROUGH, IF IT IS THE BILL THAT THEY SAY THAT IT IS AND THAT THEY BELIEVE IS GOING TO BE EFFECTIVE AT REACHING THEIR OBJECTIVES OF REDUCING CRIME, THEN LET PEOPLE KNOW WHAT IT'S GOING TO COST.

IT'S OUT OF THE HOUSE NOW.

IT'S OVER IN THE SENATE.

I WOULD CALL ON THE SENATE AND I WOULD CALL ON SENATE LEADERSHIP TO PROVIDE A DETAILED ACCOUNTING OF WHAT ANY POTENTIAL COMMITTEE SUB COMES OUT OF SENATE COMMITTEE THAT WILL BE HEARING IT.

WE DON'T KNOW WHICH COMMITTEE THAT WILL BE.

BUT TO PROVIDE THAT FISCAL NOTE.

24-48 HOURS BEFORE THE BILL IS HEARD.

DO THE SAME IF THERE ARE ANY CHANGES ON THAT BILL PRIOR TO IT BEING BROUGHT TO A VOTE.

RESPECT THE TAXPAYERS.

THEY ARE WILLING TO HAVE DIFFICULT CONVERSATIONS.

THEY ARE WILLING TO WORK IN A WAY TO UNDERSTAND WHAT IS BEING ASKED OF THEM.

BECAUSE TO JASON'S POINT, THIS ISN'T AN ISSUE THAT IS GOING TO IMPACT THE NEXT TWO YEARS.

THIS WILL IMPACT THE NEXT 20.

AND THE TRAJECTORY OF DOLLARS THAT WE'VE HAD TO COMMIT TO CORRECTIONS IS UNSUSTAINABLE.

IT IS A POOR ALLOCATION OF RESOURCES THAT COULD BE TOWARDS BETTER ENDS AND MORE PRODUCTIVE ENDS.

BUT LET'S GET THE FACTS ON THE TABLE SO LEGISLATORS KNOW WHAT THEY ARE VOTING ON, RANK-AND-FILE KNOWS WHAT THEY ARE VOTING ON AND LET'S HAVE THAT DEBATE.

>> Renee: FOR STATES THAT HAVE GONE THIS ROUTE AND IMPLEMENTED LEGISLATION SIMILAR AND OTHER STATES HAVE, WHAT KIND OF INCARCERATION COSTS HAVE THEY INCURRED THAT HAS BEEN INCREASED?

>> I DON'T THINK THERE IS A STATE THAT HAS TAKEN THIS TACT WITH CRIMINAL JUSTICE POLICY IN DECADES.

THIS IS RETURNING TO IDEAS THAT WERE POPULAR IN THE 1990s THAT WE SPENT MOST OF THE LAST TWO DECADES UNWINDING TO SOME EXCEPT BECAUSE WE KNEW THAT THEY WEREN'T WORKING.

SO I DON'T THINK THERE IS A STATE OUT THERE TO BENCHMARK.

NOW, IF YOU'VE WATCHED OVER THE LAST FIVE TO SIX YEARS, THEY HAVE TACKED ON A VARIETY OF ENHANCEMENTS TO EXISTING CRIMES.

THAT HAVE LED TO HIGHER INCARCERATION RATES AND THE ADDITIONAL COSTS.

AND WE KNOW THAT IT'S GOING TO BE EXPENSIVE.

WE DON'T KNOW HOW EXPENSIVE.

AGAIN, THE LEGISLATURE SHOULD PROVIDE THAT INFORMATION TO THE PUBLIC SO THAT WE KNOW WHAT THEY ARE ASKING US TO PAY FOR FOR THE NEXT FIVE, 10, 15 YEARS.

>> Renee: SO ANOTHER QUESTION FROM MARK FROM BOON COUNTY.

WILL TAXES BE ROLLED BACK FOR DISABLED VETERANS?

IS THAT A LINE ITEM IN THE BUDGET?

>> CONTACT YOUR LEGISLATORS TONIGHT.

>> THIS QUESTION FROM JUDGE OWEN McNEIL MASON COUNTY JUDGE HOW COME AS A STATE WE HAVE THIS SURPLUS OF FUNDS BUT THE LEGISLATORS REFUSE TO SPEND MONEY ON INFRASTRUCTURE, WATER AND WASTEWATER NEEDS IN THE STATE AT A LOCAL LEVEL ARE AT A CRITICAL LEVEL.

QUOTE-UNQUOTE.

>> BUT THERE ARE INVESTMENTS.

>> THERE ARE A NUMBER OF TRANSPORTATION INVESTMENTS AND $75 MILLION TO SUPPORT DRINKING WATER AND WASTEWATER GRANTS.

THAT IS IN HOUSE BILL 1 OUT OF THE BUDGET RESERVE TRUST FUND AND A NUMBER OF TRANSPORTATION GRANTS AS WELL.

POOLS OF MONEY FOR LOCAL GOVERNMENTS TO SPEND IT AT THEIR DISCRETION.

>> AND THAT IS ON TOP OF EXISTING PROGRAMS THAT ARE OVER AT THE KENTUCKY INFRASTRUCTURE ASSOCIATION.

I HAVE YET TO SEE A STRONG INVENTORY OF WHAT THE NEEDS ARE OUT THERE FOR WATER AND SEWER.

I KNOW THAT THE NEED IS GREAT.

CERTAINLY, I THINK THAT JUDGE McNEIL RAISES A GOOD QUESTION.

PUTTING MONEY TOWARDS THAT IS A ONE-TIME EXPENDITURE TOWARDS LONGSTANDING INFRASTRUCTURE THAT WILL HAVE A LONG-TERM RETURN ON INVESTMENT, IS REALLY SOME OF THE BEST MONEY WE CAN SPEND.

BUT WE WOULD WANT TO MAKE SURE WE HAVE A PLAN AND A REAL DISCUSSION OF WHERE THOSE NEEDS ARE MOST TARGETED TO MAKE THE BIGGEST IMPACT ON THE STATE.

>> THE NEEDS ARE ACUTE AND WE HAVE A SITUATION LIKE IN MARTIN COUNTY WHERE RELIABLE WATER IS NOT A REALITY.

THE GOVERNOR I THINK PUT $500 MILLION IN HIS PROPOSAL THE HOUSE BUT $150 MILLION FOR WATER AND SEWER.

WITH LEAVING BILLIONS ON THE TABLE IN THE BUDGET RESERVE TRUST FUND.

I THINK WHAT THE JUDGE IS SPEAKING TO IS YEARS OF NEGLECT OF INFRASTRUCTURE IN OUR COUNTRY FRANKLY.

OPPORTUNITIES NOW TO WHERE THERE ARE RESOURCES FOR THE MOMENT TO DO MORE AND TO PICK UP ON SOME OF THESE YEARS OF NEGLECT, IS A JOB CREATOR IT IS AN ECONOMY MODERNIZER, IT'S ABOUT QUALITY OF LIFE, IT'S ABOUT HUMAN HEALTH AND SAFETY.

TO HAVE CLEAN WATER.

IT IS A WIN-WIN-WIN FOR EVERYBODY.

AND IT'S THERE ARE SOME THINGS IN HERE, BUT IT IS ANOTHER INSTANCE WHERE I THINK THE BUDGET DOESN'T RISE TO THE OCCASION OF THE NEED AND THE NEED AND HOW IT HAS COMPOUNDED OVER TIME.

AND THE CAPACITY.

THE ABILITY TO FUND THESE THINGS NOW IN A WAY WE NEVER HAVE.

>> Renee: THIS QUESTION TO YOU JASON, YOU CLAIM THE MONEY DEPOSITED IN THE RAINDY DAY FUND IS GUARANTEED WHAT HAPPENS IF WE HAVE AN ECONOMIC DOWNTURN AND THAT PROJECTED MONEY IS NO LONGER GUARANTEED?

>> WE SHOULD HAVE A RAINY DAY FUND AND I'VE ARGUED FOR A RAINDY DAY FUND.

BUT THERE COMES A POINT WHEN YOU HAVE SO MUCH IN THERE THAT AND YOU ARE NEGLECTING YOUR CURRENT NEEDS, THAT IT'S NOT BEN FIB.

WHEN YOU HAVE 5 BEEN 2 BILLION WHICH IS WHAT WILL BE IN THE FUND BY THE END OF THIS BE EN YUM THAT IS MORE THAN DOUBLE CHAIRMAN SAID ON THE FLOOR WAS HIS GOAL.

IT'S MORE THAN DOUBLE THE GOAL.

THAT THE HOUSE HAS SET OUT.

WHAT IS THE REASON FOR THAT?

THERE JUST COMES A POINT WHERE ADDITIONAL DOLLARS THERE ARE ADDITIONAL DOLLARS YOU ARE NOT SPENDING THAT THINGS THAT ARE IMPORTANT TO THE ECONOMY, CHILDCARE, EDUCATION, INFRASTRUCTURE.

THAT IS IMPORTANT TO THE ECONOMY TO REPLENISH FUTURE RAINY DAY FUNDS AND I THINK WE'RE AT THAT POINT.

>> Renee: ANY OTHER COMMENT THIS TALK FROM LOUISVILLE, WE TALKED ABOUT TEACHER RAISES IN KENTUCKY ARE WE STILL RANKED IN THE BOTTOM FIVE STATES IN THE COUNTRY ON TEACHER SALARIES?

>> I BELIEVE WE HAVE 44TH.

OTHER STATES ARE PASSING THEIR BADGE BUDGETS NOW AND INCREASING TEACHER PAY.

THE STATES AROUND US ARE RAISING THE MINIMUM PAY TO $50,000 WE ARE LOSING GROUND ON THAT AND LOSING TEACHERS AS A RESULT.

WE LOOK AT THE DATA EVERY YEAR AND SINCE 2008 THE AVERAGE KENTUCKY TEACHER'S SALARY HAS FALLEN $9736 ONCE YOU COUNT INFLATION NO WONDER TEACHERS ARE LEAVING.

WE HAVE THE MONEY TO DO A LOT OF CATCH UP ON THAT PROBLEM.

AND THE BUDGET THE SEEK FORMULA SPECIFICALLY THE SEEK NUMBER IN THE BUDGET 96% OF SUPERINTENDENTS SAID IN THE SURVEY, 96% OF SUPERINTENDENTS SAID IT WAS NOT ENOUGH TO MAKE PROGRESS ON TEACHER RECRUITMENT AND RETENTION.

>> Renee: WHEN YOU HEAR THAT, TO THIS SIDE OF THE TABLE, SHOULDN'T THERE BE SOMETHING DONE TO DO DIRECTLY COMPENSATE AT A HIGHER RATE KENTUCKY TEACHERS?

>> SOMETHING THAT HAS BEEN A PATTERN IN TONIGHT'S DISCUSSION IS THAT JASON POINTED TO A VARIETY OF THINGS THAT THE REPUBLICANS IN THIS BUDGET THEY HAVE SPENT MONEY TOWARDS.

BUT JUST NOT ENOUGH.

THE EXPLANATION THAT CHAIRMAN PETRI GAVE ABOUT THEIR DECISION THEIR POLICY DECISION TO ENCOURAGE OR TO PROVIDE THE OPPORTUNITY FOR LOCAL SCHOOL DISTRICTS TO RAISE TEACHER SALARIES, IS MAYBE THE DIFFERENCE OF AN APPROACH AND IT'S CONTRASTED AGAINST CAMPAIGN PROMISE THAT THE GOVERNOR MADE FOR REELECTION OF DELIVERING UPON AN 11% ACROSS THE BOARD PAY RAISE.

NOW, ANYBODY WHO WATCHED FRANKFORT OVER THE LAST FOUR YEARS KNOWS THAT THERE ARE A LOT OF EMPTY PROMISES THAT COME FROM THE GOVERNOR'S OFFICE.

BECAUSE QUITE CANDIDLY, THEY ARE REALLY NOT IN THIS DISCUSSION OF WHAT OUR BUDGETS LOOK LIKE.

THEY CAN PROPOSE A BUDGET.

THEY CAN PUT NUMBERS OUT THERE WHAT THEY WOULD DO IF THEY COULD SNAP THEIR FINGER.

BUT IT'S SORT OF EASY TO SAY THAT WE'RE GOING TO DO 11% ACROSS THE BOARD TEACHER RAISES.

AND SO I THINK THAT THERE'S NO OPPOSITION TO INCREASING TEACHER SALARIES FROM THIS MAJORITY.

THEY'VE GONE ABOUT IT A DIFFERENT WAY.

IF ENACTED IT'S GOING TO LEAD TO A SMALLER INCREMENT.

BUT AGAIN IT'S THE DIFFERENCE BETWEEN THIS BUDGET HAS PROPOSING TO SPEND X BUT UNTIL THEY SPEND Y, Z AND DOWN THE ROAD, YOU THOUGH, THOSE FOLKS ON THE LEFT WILL SAY IT'S NOT ENOUGH.

>> ANDREW, YOU CALL RAISING SALARIES FOR SCHOOL EMPLOYEES A CAMPAIGN PROMISE.

WE CALL IT STOP THE BLEEDING.

A QUARTER OF TEACHERS LEFT THE CLASSROOM LAST YEAR.

IF I LIVED ON THE TENNESSEE BORDER I WOULD BE SCARED BECAUSE TENNESSEE IS MAKING $50,000 THE FLOOR FOR STARTING SALARIES.

OUR LOWEST STARTING TEACHER SALARY THE FIRST DIGIT IS A 3.

THE SCHOOL BOARD ASSOCIATION SAID WITH THE INCREASE IN SEEK FUNDING IN THE LAST BUDGET ONE IN FIVE WAS ABLE TO GIVE A RAISE OF 3% OR MORE.

ONLY ONE FULTON INDEPENDENT WAS ABLE TO GIVE A RAISE OF 8% TO MATCH THE STATE EMPLOYEE RAISE THAT WE FUNDED.

6% OF KENTUCKY SCHOOL DISTRICTS OFFERED NO RAISES AT ALL AFTER THE SEEK INCREASE.

WE HAVE HAD SUPERINTENDENTS THE THE CAPITOL SAYING THIS AIN'T IT.

THIS IS NOT ENOUGH.

TO EVEN GET US TO THOSE PRERECESSION LEVELS OF FUNDING YOU HAVE TO PUT $1500 MORE PER KID.

>> WOULDN'T HAVE THE -- WHEN HAVE THE SUPERINTENDENTS EVER SAID THERE'S ENOUGH OR THEY GOT ENOUGH?

THAT IS THE PITCH THEY MAKEOVER AND OVER.

IT'S THEIR JOB, I UNDERSTAND IT.

BUT WHAT I WOULD LIKE TO HEAR FROM THE SUPERINTENDENTS IS WHAT IS THEIR NUMBER?

WHAT IS THEIR FIGURE?

>> 5800 DOLLARS IS THEIR FIGURE.

>> FULLY FUNDING EDUCATION ADEQUATELY FUNDING EDUCATION WE HEAR THIS PHRASE ALL THE TIME.

I'VE YET TO HEAR WHAT NUMBER IS AND HOW IT WOULD BE PAID FOR.

>> 5800.

>> TO REACH THIS.

>> BUDGET RESERVE TRUST FUND.

THERE'S ONE MORE IMPORTANT POINT AND THAT IS SOMETHING INTERESTING THIS BUDGET DOES.

IT MICRO MANAGES THE GOVERNOR.

WHICH IS A TREND THAT WE'VE SEEN IN THE GENERAL ASSEMBLY FOR THE LAST COUPLE OF YEARS AND IT PUTS THE FIRST-EVER FINANCIAL LIMITS HOW A GOVERNOR CAN RESPOND TO NATURAL DISASTERS.

>> .

>> Renee: THIS IS A SEPARATE BILL 262.

>> EXCUSE ME WE PASSED SIX BUDGET BILLS.

THIS IS SOMETHING CALLED NECESSARY GOVERNMENT EXPENDITURES.

AND BESHEAR HAS BEEN ELECTED TWICE AND DEALT WITH NATURAL DISASTERS.

KENTUCKIANS DO NOT THINK HE IS A SPENDER.

HE IS SOMEONE THAT CARES AND FOR THE LEGISLATURE PUT CAPS ON WHAT HE CAN USE TO TORNADOES, FLOODING 0 FIRES IS UNACCEPTABLE.

>> YOU DID NOT HEAR THAT PART OF THE INTERVIEW.

BUT I ASKED HIM ABOUT THAT.

AIT'S $75 MILLION THAT CAPS THE GOVERNOR.

THEN THE GOVERNOR WOULD HAVE TO CALL THEM BACK INTO SPECIAL SESSION IF HE WANTED MORE.

BUT HE SAID THAT WAS BASED OFF OF HOW THE OTHER DISASTERS THE TALLY THAT IS HOW THEY ARRIVED AT THAT 75 MILLION MARK AND IS IT NOT REASONABLE FOR A CAP ON THE GOVERNOR'S EXPENDITURES.

>> I THINK IT'S UNREASONABLE TO HAVE ALL OF US DRIVE IN FOR A SPECIAL SESSION WHILE PEOPLE ARE SLEEPING OUTDOORS.

OR PEOPLE HAVE LOST THEIR CHILDREN IN A FLOOD.

BETWEEN 2002 THUNE AND 2002, OKLAHOMA HAD MORE DISASTERS THAN KENTUCKY.

MORE ARE COMING.

THE EXECUTIVE ELECTED BY EVERYONE IN THE STATE NEEDS TO BE PREPARED.

>> Renee: YOUR RESPONSE TO HOUSE BILL 262 ON THE CAP ON -- >> IT'S NOT A BILL THAT I'VE DONE A LOT OF STUDY ON.

BUT I THINK WHAT THEY THEY'RE TG TO DO IS ENSURE THAT NECESSARY GOVERNMENT EXPENDITURES, NGE'S IS SOMEWHAT OF A BLANK CHECK THAT IF AN EMERGENCY IS DECLARED THEN THE GOVERNOR HAS UNLIMITED POWER OF THE PURSE TO ALLOCATE TOWARDS RESPONDING TO THOSE DISASTERS.

AND WHATEVER THE FINAL AMOUNT IS THE DIRECTION IS BASICALLY THAT THE GENERAL FUND WILL PICK IT UP.

AGAIN, WITHOUT KNOWING THE DETAILS OF THE BILL, YOU CERTAINLY DO NOT WANT TO HAMSTRING THE EXECUTIVE BRANCH TO RAPIDLY RESPOND TO AN IMMEDIATELY RESPOND TO NATURAL DISASTERS.

IT SOUNDS LIKE TO ME IF THEY ARE CREATING CUSHION FOR THAT, THEN THAT WOULD ALLOW FOR AN IMMEDIATE RESPONSE.

BUT CALLING A SPECIAL SESSION AFTER THAT FOR THE BRANCH OF GOVERNMENT THAT HAS THE POWER OF THE PURSE THAT HAS THE APPROPRIATING POWER TO COME IN AND MAKE A SPECIAL APPROPRIATION AS THEY DID DURING THE NATURAL DISASTERS.

>> Renee: FOR EASTERN KENTUCKY THEY 0 CAME IN.

>> IT'S PERFECTLY LEGITIMATE.

>> 20 SECONDS.

>> A FOREST FIRE IS NOT GOING TO WAIT FOR 138 PEOPLE AND DECIDE HOW MUCH MONEY YOU NEED TO FIGHT IT.

JUST ON THE NEEDS TO BE MORE MONEY FOR EASTERN KENTUCKY CLEAN UP OF THE LAST DISASTER.

AND THERE'S 75 MILLION TAKEN OUT.

>> Renee: TO BE CONTINUED BECAUSE AS ANNE-TYLER MORGAN SAID, THIS IS JUST THE START THIS BUDGET HAS MILES TO GO BEFORE IT RESTS.

AND PROBABLY BE NEAR THE END OF THE SESSION BEFORE IT DOES SO.

WE'RE HERE FOR YOU EVERY STEP OF THE WAY.

THANK YOU FOR JOINING US.

SCHOOL CHOICE AND EDUCATION ISSUES WE'LL TALK ABOUT THOSE NEXT WEEK ON "KENTUCKY TONIGHT" AND I WILL SEE YOU TOMORROW NIGHT 6:30 FOR KENTUCKY EDITION.

I'M RENEE SHAW.

THANKS FOR WATCHING.

TAKE GOOD CARE.