Via press release from the House Dem Caucus
FRANKFORT — House Democratic leaders said today that public pressure led to meaningful changes in House Bill 500, including the removal of the proposed cap on state contributions to the Kentucky Employees Health Plan, but warned that the revised budget still fails to address the affordability crisis facing Kentucky families.
“When public employees, educators, and retirees raised the alarm, it made a difference,” said House Democratic Floor Leader Pamela Stevenson. “Removing the health insurance cap was the right decision. But this budget still does not meet the moment. Families are struggling with the cost of housing, child care, groceries, and health care. When we have the resources to respond, we should use them.”
House Democrats said the changes to HB 500 fall short in addressing the affordability concerns. Instead of investing available funds in efforts to make life more affordable for Kentucky families, proposed revisions would leave hundreds of millions of dollars in reserves.
HB 500 does not bring the main funding source for schools -- SEEK -- up to inflation-adjusted levels, leaving districts to make up the difference as costs continue to rise. It provides no raises for educators, and leaves preschool funding at 2019 levels. Adjusted for inflation, overall state education funding remains well below 2008 levels.
“At a time when teachers are already stretched thin, this budget does not offer meaningful support or relief,” said House Democratic Caucus Chair Lindsey Burke. “There is no educator raise. There is no investment in preschool. Higher education is cut by 16 percent compared to the last enacted budget. That is not how we prepare students for good jobs or strengthen our workforce.”
The proposal also leaves an estimated $220 million Medicaid shortfall over the biennium compared to official projections. It also reduces funding for child care support, aging services, and other community-based programs. Retirees receive no cost-of-living payment under the plan.
Even as Kentucky families face rising costs, the budget adds $854 million to the Budget Reserve Trust Fund, growing it to roughly $4.4 billion.
“We are sitting on billions in reserves while families are worried about paying for rent, prescriptions, and child care,” said House Democratic Whip Joshua Watkins. “We believe Kentucky’s financial strength should be used to invest in housing, health care, education, and public services that make life more affordable.”
The budget plan was revised today in the House Appropriations and Revenue Committee after the House recessed. Since amendments must be filed in the House 24 hours in advance, rushing the revised version of the budget plan to a vote in the House chamber tomorrow -- as some expect -- would block the opportunity for further amendments and leave virtually no time for many lawmakers or the public to provide input before the vote.
A budget should reflect Kentuckians’ values, Stevenson said.
“If affordability is the challenge facing Kentucky families, then affordability should be the priority in this budget,” Stevenson said. “Kentucky has the resources right now to meaningfully invest in schools, protect Medicaid, support retirees, and help working families while maintaining responsible savings. Our values call us to put families first.”
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