House Bill 235, sponsored by House Appropriations and Revenue Committee Chairman Rick Rand, D-Bedford, was amended and passed by a vote of 53-46. It now goes to the Senate.
As amended and passed by the House, HB 235 would add $189 million in guaranteed base per pupil funding (or SEEK funds) for schools, beef up Medicaid with help from over $166.7 million made available through the federal Affordable Care Act, and provide nearly $1 billion in new General Fund-supported debt for capital construction while fully funding required contributions to the state’s pension systems.
Other appropriations in the bill would expand preschool for over 5,000 more four-year-olds, increase funding for school textbooks and increase rates for foster care parents and private child care. Pay for state workers and teachers would also be increased over the next two years under the bill, which would be paid for with five percent cuts across most of state government, a projected average General Fund revenue increase of 2.8 percent, fund transfers, use of the state’s $69.5 million ending balance from this fiscal year, and other fiscal resources and lapses outlined in the bill.
New General Fund dollars for HB 235 appropriations would come from a separate revenue bill, HB 445, also sponsored by Rand and passed by the House 53-44 on Wednesday. The legislation would increase General Fund dollars by around $25.5 million over both years, boost state Road Funds by $46.5 million in 2015 and $60.8 million in 2016 through a proposed increase in the motor fuel tax, and boost restricted funds by at least $4.5 million.
A fiscal note on HB 445 state the proposed additional Road Fund dollars would be derived by holding the minimum, or “floor,” of the average wholesale price of gas at the pump at $2.878 a gallon, thereby increasing the motor fuels tax by 1.5 cents per gallon—a 2.2 cent per gallon increase over the rate that would take effect otherwise.
In reference to the spending plan, Rand told the House, “We are changing people’s lives. … This is an important budget, and I think anyone who votes yes on this budget today can feel good about that vote.”
Said Rep. John Will Stacy, D-West Liberty, said the House’s actions will help create new opportunities across the state. “This provides for the future of this state. It provides jobs for Kentuckians. It provides educational opportunities for Kentuckians. It provides health care for Kentuckians.”
Rep. Stan Lee, R-Lexington, who voted against HB 235, expressed concerns about proposed state spending levels. “One of the things we have to do as a co-equal branch (of government), the one that is responsible for appropriating the money, is to set priorities, and the stark reality is we don’t have enough money to do everything we’d like to do. We just don’t,” Lee said. “The rate of increase in revenues is once again being outpaced by an increase in the spending.”
Lee called for a vote on his floor amendment to require the Attorney General’s office to cover any state expenses associated with hiring special counsel to appeal the recent federal same-sex marriage ruling affecting Kentucky. That proposed amendment was stopped after a House procedural vote.
A floor amendment was also called by Rep. Joe Fischer, R-Ft. Thomas, to restrict Kentucky’s implementation of the federal Affordable Care Act. That proposed amendment was also stopped after a House procedural vote.
In addition to passing the executive branch budget, the House also approved a nearly $840 million two-year judicial branch budget found in HB 238 and a nearly $117 million two-year legislative branch budget found in HB 253, each by a vote of 99-0. Those proposed budgets also include five percent operational cuts, the same reduction that would be required for most executive branch agencies and programs under HB 235.
All of the bills now go to the Senate for further action.
