LEGISLATIVE UPDATE
Representative Nancy Tate
House passes budget, committees continue work

Frankfort missed out on the snow that blanketed much of the state last week. While it disappointed some, I am not sure legislators noticed because our attention was focused on legislative work.

Executive Branch Budget: Late Thursday afternoon the House voted 85-8 to approve what I think is a strong, responsible budget that includes more than $100 billion in general fund, restricted, and federal funding for state programs over the next two fiscal years. This plan, HB 1 HCS includes record funding for public education, $350 million in American Rescue Plan funding to local governments to continue upgrading aging and inadequate water infrastructure, and restores the state’s focus on our colleges and technical schools. The bill now goes to the Senate for consideration.

Transportation Budget: This budget represents the administrative costs associated with operating the state’s Transportation Cabinet and includes some funds for maintenance in our state. We will consider the plan for new infrastructure projects when we vote on the 6-year road plan later this session. The sponsor of HB 241 refers to this measure as “the beginning of the end of underfunding our state’s transportation needs” and it represents a commitment to improving the safety and efficiency of our road systems. The bill provides the Transportation Cabinet an operating budget of $200 million in General Fund, $200 million in restricted funds, and $1.6 billion in road funds each fiscal year. It includes $50 million in each year for a special grant to help local governments with road maintenance. The measure also provides $10 million in each year for a grant pool available to the state’s 52 general aviation airports. I am particularly pleased to see it replaces over $180 million in allocations formerly charged to the road fund with general fund dollars and moves that amount to the Maintenance Account. For too long the state has used road fund monies for services not associated with roads. It may all be state money, but this change makes how we spend it far more transparent.

Many of the 16 legislative committees met this week and sent legislation to the House floor for further consideration. Committees are critical to the legislative process because they provide an opportunity for members to ask detailed questions and give legislation a thorough review. Any member can attend and participate and they are livestreamed on KET and the legislature’s website for members of the public. Legislation that cleared committees this week includes:

Incentives for Rural Job Creation: The House Agriculture Committee approved a proposed dubbed the “Rural jobs Act” aimed at creating jobs in communities with a population under 50,000. House Bill 308 would grant an investor who has been qualified by the U.S. Department of Agriculture or the U.S. Small Business Administration the offer to compete for a pool of tax credits in hopes of enticing further investment in rural communities around the state. The tax credit comes in the form of one time monies and would expire in 2029 – which means the legislature would have to determine if it is an effective tool before renewing it.

Protecting Kentuckians Personal Banking Information: Members of the Banking and Insurance Committee approved HCR 12, legislation aimed at bringing awareness to a Biden administration proposal that would require banks and other financial institutions to report to the IRS information about incoming and outgoing transactions from every customer’s account. The measure also sends a formal request to Congress to reject the proposal on behalf of Kentucky consumers.

Bringing Efficiency to School Construction: Anyone who has ever been involved in a construction project of any kind knows that delays can be one of the biggest cost-drivers. Often the longest delay in getting a construction project started is in getting plans approved. The Local Government Committee voted for a measure that seeks to save some time and make the school construction process more efficient by allowing plan review, inspection and enforcement of educational facilities to be conducted by a local government when agreed to in writing with that local government and the Department of Housing, Building and Construction.

As always, I can be reached here at home anytime, or through the toll-free message line in Frankfort at 1-800-372-7181. Feel free to contact me via email at Nancy.Tate@lrc.ky.gov. If you would like more information, please visit the LRC website https://nam12.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.legislature.ky.gov%2F&data=04%7C01%7C%7Ce021aeda616a4287d7c208d9f8b8afc9%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637814294368060136%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&sdata=4oCfiJugX7FjSeYqunWgfNrLccxpGdwn8vNHzmNqeLc%3D&reserved=0.