FRANKFORT, KY (Feb. 19, 2025)—Officials from the Beshear administration testified before the Senate Appropriations and Revenue Committee on Wednesday. During the hearing, lawmakers scrutinized the administration's often inconsistent and misleading fiscal costs on multiple bills. Administration officials struggled to explain their financial projections, raising concerns that the executive branch is inflating costs and manipulating fiscal estimates to undermine legislation.
Senate Bill (SB) 13: Existing costs erroneously tied to the bill
Senate Bill (SB) 13, sponsored by Sen. Steve Meredith, was among the bills committee members sought clarification on. The bill aims to streamline Kentucky's Medicaid system by reducing the number of managed care organizations (MCOs) in the state. The Beshear administration's website attributes a cost of $2.8 million to SB 13, a number that testimony revealed to be misleading.
Through questions from Sen. Amanda Mays Bledsoe, R-Lexington, administration officials admitted this cost is tied to procurement expenses that the Cabinet for Health and Family Services (CHFS) will incur regardless of whether SB 13 is enacted. Rather than acknowledging that the bill aims to eliminate inefficiencies and save both Medicaid providers and taxpayer dollars, the administration chose to associate costs stemming from new federal rules, new or modified Medicaid programs, and necessary changes in MCO coverage with the legislation, which calls into question its commitment to providing transparent cost estimates even when they may disagree with a bill. These overinflated costs have resulted in the executive branch not executing or analyzing legislation in good faith.
This is not the first instance in which the administration has sidestepped legislative intent under the guise of funding limitations. As it has been widely reported, the Beshear administration has delayed implementation of several bills—including those related to kinship care, championed by Sen. Julie Raque Adams, R-Louisville. However, just weeks before a critical state audit revealed specifics regarding the number of high-acuity youth being forced to sleep in government offices, the administration identified $15 million for an emergency regulation for therapeutic foster care rate increases.
SB 61: Inflated estimates on waterborne illnesses inflate bill's cost estimate
SB 61, sponsored by Sen. Craig Richardson, R-Hopkinsville, was another measure to which the administration linked a cost, and the committee requested insight. The bill clarifies that private homeowners renting out their swimming pools should not be subject to public pool regulations. It ensures that private property rights are respected and that state enforcement remains consistent with existing law.
As with SB 13, the administration struggled to defend its financial estimates. The administration claimed the bill could cost between $4.25 million and $8.5 million, citing an anticipated increase of 50 to 100 waterborne illness outbreaks. However, when pressed for actual data, officials admitted their projections were merely a "ballpark figure" based on public pool outbreaks rather than a calculation based on historical trends. An official from the Department of Public Health said the estimated costs to investigate each case were based on a large-scale outbreak in 2014, calling into question the biased nature of creating their cost estimate.
Upon further questioning, DPH officials testified that only 14 waterborne illness cases have been reported in private pools over the last five years (eight of which occurred in a single year). The administration's assertion that cases would suddenly skyrocket contradicted the available data and basic logic. Lawmakers questioned why the administration would use exaggerated projections to justify maintaining unnecessary regulations on private property owners.
Beyond the fiscal analysis, Richardson highlighted the troubling reality that the Beshear administration is already regulating private pools as public pools—even though they do not meet public pool construction standards. The administration has even taken Kentuckians to court for renting out their private pools, despite conflicting testimony on whether they are actively enforcing these regulations.
"Despite the administration's claims, they are actively regulating private pools in Kentucky and even taking property owners to court over it," Richardson said. "They want to classify privately owned pools as public facilities just because homeowners choose to rent them out—yet they can't even provide a clear financial justification."
Distorting the Process
Throughout the hearing, senators grew increasingly perplexed by the coordinated effort by the administration to inflate costs and obstruct legislation through questionable fiscal estimates. Senate Appropriations and Revenue Chair Sen. Chris McDaniel, speaking with press members following the meeting, sharply criticized the administration's approach, stating:
"The Governor claims transparency, but what we're seeing is manipulation," he said. "If you deliberately give people false information, that's not transparency—it distorts the process. Fiscal policy should be based on accuracy, not political theatrics."
Lawmakers also raised concerns over the administration's abnormal last-minute fiscal estimates, some of which were sent to legislators just minutes before the legislative session's first committee hearings, which left little time for a thorough review.
Kentucky's fiscal analysis process has been standardized and collaborative for over a decade. Executive branch agencies provide data to the Legislative Research Commission and budget staff for independent review, ensuring the legislature's fiscal notes are based on objective analysis rather than political influence.
The Beshear administration's recent departure from this process and its issuance of arbitrary cost estimates without transparency undermines that system and raises serious concerns about its intent.
Find the playback of Wednesday's committee meeting here.
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Sen. Chris McDaniel, R-Ryland Heights, represents the 23rd Senate District in northern Kenton County. McDaniel serves as chair of the Senate Appropriations and Revenue Committee and co-chair of the 2024-26 Budget Preparation and Submission Committee. He is an ex-officio member of each budget review subcommittee. Additionally, McDaniel is a member of the Senate Committees on Licensing and Occupations and State and Local Government. He is also a Public Pension Oversight Board member.
Please visit https://legislature.ky.gov/Legislators%20Full%20Res%20Images/senate123.jpg for a high-resolution .jpeg of McDaniel.
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