FRANKFORT, KY (March 28, 2024)—Senate Budget Chairman Chris McDaniel, R-Ryland Heights, presented the Free Conference Committee Report on House Bill (HB) 1 on Thursday, which was approved in the Senate. The bill, now moving to the House for consideration, utilizes Kentucky’s $3.7 billion budget reserve trust fund to boost infrastructure and stimulate economic growth among other priorities.
The legislation proposes to invest over $2.7 billion from the budget reserve trust fund into Kentucky infrastructure over three fiscal years, targeting transformative one-time appropriations in various sectors.
Transportation and Infrastructure
Notably, it allows the Kentucky Transportation Cabinet to allocate $250 million in 2024 and $200 million in 2025 from the trust fund to the road fund. This investment supports projects enhancing industrial growth, economic development, and quality of life, focusing on counties expected to see significant population increases. Unspent funds will roll over for future use.
The bill also funds riverport improvements, aviation grants, and rail infrastructure and safety pilot projects.
School Facility Improvements
Funding goes to the School Facilities Construction Commission for projects across several districts to enhance educational infrastructure. Butler, Lincoln, and Garrard County School Districts will each receive $3.55 million and $3.5 million per fiscal year for facility upgrades. For fiscal year 2024-2025, Logan County School District receives $1 million for technology upgrades, Christian County School District receives $7 million for new athletic fields, and McCreary County School District is allocated $1 million for campus road construction, enhancing Kentucky’s educational infrastructure.
Stabilizing Teacher and State Employee Pensions
The Kentucky Public Pensions Authority and the Teachers’ Retirement System will receive funds to address pension liabilities. $100 million goes to the Kentucky Employees Retirement System Nonhazardous pension fund, and the Teachers’ Retirement System gets $80 million for 2024-2025. $50 million goes to the State Police Retirement System. Funds are distributed monthly, contingent on prior investment certification, aiming to reduce pension liabilities effectively.
Public Safety and Law Enforcement Training
$50 million is allocated for constructing the Western Kentucky Law Enforcement Training Academy in Madisonville. The Kentucky State Police will receive nearly $6.4 million in fiscal year 2024-2025 to enhance lab capabilities with sophisticated equipment, bolstering state law enforcement training and forensic capabilities.
Water Projects
The Kentucky Infrastructure Authority is granted $75 million annually for the Kentucky WWATERS program, which addresses water and wastewater infrastructure needs in economically distressed areas. Over $100 million has been allocated for fiscal year 2024-2025.
Local Government and Community Development
Over $500 million across fiscal years 2024-2025 and 2025-2026 will support downtown Louisville revitalization and community development projects across various counties and cities. This includes $100 million to the Department for Local Government for downtown Louisville projects, $10 million in fiscal year 2024-2025 to the Department for Local Government to be distributed to the Lexington-Fayette Urban County Government to support Lexington’s Transformational Housing Affordability Partnership, and significant funding for constructing the Commonwealth Center for Biomedical Excellence in Covington, and a new conference center in Ashland.
Economic Development
Funds are allocated to commercial airports, regional industrial development, and projects aimed at statewide economic growth. $50 million annually supports mega-development projects, with additional funding for the Kentucky Economic Development Finance Authority Loan Pool and the Kentucky Product Development Initiative of 2024. Fiscal year 2024-2025 sees $35 million for improvements at Kentucky Commercial Airports.
Support for Postsecondary Institutions
Allocations include $60 million across 2024-2025 and 2025-2026 for a veterinary technician program facility at Murray State University, among other support for educational and workforce development programs.
Health Services and Community Well-being
FCCR to HB 1 includes significant allocations for substance abuse treatment programs, community health services, and operational funding for health and community service organizations. Notably, $62 million in fiscal year 2024-2025 will support the ongoing needs of the Medicaid benefits program.
Kentucky Tourism and Signature Industry
The Horse Park Commission receives $36 million for facility upgrades, with additional funding for cultural and heritage projects across Kentucky, emphasizing the state’s commitment to its signature industry.
HB 1 carries an emergency designation for immediate effectiveness upon filing with the Secretary of State’s Office. HB 1 with FCCR will be available at legislature.ky.gov later this evening.
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Please visit Legislature.ky.gov for more information on Senate Majority Caucus members and the 2024 Legislative Session, such as committee schedules, membership, legislation, and more.
LEGISLATURE NEARS FINALIZING TRANSFORMATIONAL USE OF ONE-TIME FUNDS