Transcript Highlights:

• to our pension systems.
• And so on the KS non-hazardous system, which is the largest of the three state government systems, uh
• payments to our pension<00:06:59.039><c> systems</c><00:06:59.840><c> and</c><00:07:00.080><c> and</
• </c><00:18:32.960><c> The</c> retirement system budget. The retirement system budget.
• One of the reasons building systems.

Summary: The committee met to hear a presentation from Dr. Hicks on the governor’s recommended budget for the next biennium. He reviewed the revenue outlook, noting modest general fund growth, a large rainy day fund balance, and the impact of recent income tax reductions. He said the budget was built around recurring reductions, lower debt service and retirement contribution rates, and the use of excess restricted funds, while protecting K-12 education, Medicaid, postsecondary education, public safety, and pension obligations. Dr. Hicks outlined several major spending and reserve proposals, including $350 million from the Department of Insurance’s excess restricted funds to support Medicaid in the first year, $150 million for the affordable housing trust fund, $125 million for rural hospitals, $100 million to offset lost federal ACA premium tax credits, $75 million for utility assistance, and $50 million for food assistance. In education, the proposal included a phased pre-K for all plan funded by sports wagering tax revenue, a 3% annual salary increase for full-time school personnel, continued full funding of teacher pensions, a 2.5% annual increase in SEEK base funding, and additional support for career and technical education and school facilities. He also discussed Medicaid cost pressures, including higher managed care, pharmacy, behavioral health, and nursing facility costs, and explained the expected effects of federal HR1 changes on Kentucky’s Medicaid program. Those changes include work and community engagement requirements and more frequent eligibility redeterminations for expansion members, which the administration estimated would reduce enrollment by about 4,300 in the first year and 28,000 in the second year. No votes or formal committee actions were taken during the meeting, which was limited to the budget presentation and member questions.

Transcript Highlights:

• of enrollees or direct payments to enrollees to cover the cost offsets.
• But that payment is by the community to us. Correct.
• They're built into our systems every day.
• She said, your client's name is in my system with A Place for Mom.
• And then the rest of this bill talks about things like payment.

Committee: House Health and Mental Health

Transcript Highlights:

• Uh it will consist of one the first payment of $640,240 and then 12 quarterly payments of $480,180.
• Uh it will consist of one the first payment of $640,240 and then 12 quarterly payments of $480,180.
• Uh it will consist of one the first payment of $640,240 and then 12 quarterly payments of $480,180.
• </c> quarterly payments quarterly payments &gt;&gt; and<00:08:35.919><c> they're</c><00:08:36.159><c>
• ,</c> electrical and plumbing systems, electrical and plumbing systems, architectural<00:17:59.360><c

Summary: The committee first approved the November minutes and received information items on University of Kentucky medical and research equipment purchases, five school districts reporting upcoming bond issues with no additional tax levies needed, and a School Facilities Construction Commission list of prior debt issues for fiscal year 2026. It then considered an appropriation increase for a University of Kentucky project at the Central Kentucky Regional Airport in Richmond. University officials said the project is 100% federally funded and will construct a terminal building tied to EKU’s airport operations and planned flight school. Members asked about the relationship to aviation expansion and whether the flight school would be publicly operated; the witnesses said EKU would operate it, public appropriations had already been applied, and student revenue would help offset costs. The committee approved the item by roll call vote. Next, the committee approved a University of Kentucky lease purchase for property at 415 West Sun Street in Morehead, Rowan County, for $6.4 million. UK said the property, which includes an 85,000-square-foot facility on 9.6 acres, is directly across from UK St. Clair and was offered by the Rowan County Board of Education after it moved to a new location. Members questioned why the payment schedule was structured as quarterly installments and why the price was below two appraisals; UK said the board requested the arrangement and did not want the full amount upfront, and there was no interest on the purchase price. The committee also approved this item. The deputy state budget director then reported three appropriation increases in the Tourism, Arts and Heritage Cabinet: a Ballard Wildlife Management Area pump station project, Lake Barkley State Resort Park emergency repairs, and Lake Barkley lodge wing exterior repairs. After questions, staff explained the Lake Barkley increases were mainly to cover construction contingencies because bids came in close to available funding. The committee approved the action items, then heard four no-action pool projects: HVAC upgrades at the FFA leadership training center in Hardinsburg, Kentucky School for the Blind’s McDaniel Scoggin building, KSD’s Brett Brady Hall, and a Kentucky State University Shanty Hall renovation for the School of Engineering Technology. Finally, the committee heard two real property items: a new CHFS lease in Wayne County and a Transportation Cabinet lease modification in Christian County. The Wayne County lease drew the most discussion, with members questioning the high per-square-foot cost and whether another county location could be used; CHFS said it maintains offices in every county seat, this lease would replace an existing 1977 office, and the new construction was negotiated down from a higher initial bid. The Christian County item was described as a replacement site for driver licensing space, with renovation costs partly absorbed by the lessor and the remainder amortized over the lease term.

Transcript Highlights:

• So when you say the one-time payment, what would the one-time payment be?
• The next payment would be your future cost, which is included when you have 10 years of payments.
• , so it doesn't adjust how much payments are made, where the payments are made from.
• , so it doesn't adjust how much payments are made or where the payments are made from.
• Okay, but what about the payment to the owner of Granite Place? The lease payments, you mean?

Summary: The committee met to continue work on House Bill 2, with the chair saying the goal was to finish the bill as given by the governor, though additional amendments were expected. Members first discussed the bail section and agreed to hold it for later because a separate House bail bill was expected on Thursday and could have significant county cost impacts. They also generally accepted the proposed reorganization of positions between Fish and Game, DNCR, and the Department of Environmental Services, but noted the need to review effective dates and funding details, including a possible double appropriation of $275,000 for a scientist position already funded in HB 1. A substantial portion of the meeting focused on environmental review and native plant-related sections moving functions from DNCR to DES. Members discussed changing the rulemaking timeline from 180 days to 90 days, and clarifying that “begin” means the public hearing stage. They also reviewed how fee revenue would shift between agencies in HB 1 so the budget impact would be net zero. The committee indicated it would prepare amendments reflecting these changes and revisit them at a later vote. The longest discussion concerned the boathouse provisions. Members debated whether the new definitions and construction standards were appropriate in a budget bill, with one member arguing they should be in a separate bill, while others said the provisions were urgent because of a lawsuit and the lack of clear guardrails. Concerns included the February 20, 2025 effective date, which some thought might be retroactive, the detailed limits on what may be stored in a boathouse, and a fee increase that some felt could discourage homeowners from seeking permits. The committee also questioned whether the fee structure should be tiered for smaller projects and whether permit-by-notification projects should be exempted. No final votes were taken on these sections during the discussion; instead, members agreed to seek legal and policy answers and to return with amendments and public hearing input before voting.

Transcript Highlights:

• So there's different layers of support also built into the system.
• Within our system, it turned a year in June. So it's a newer program.
• Systems, away from their most important connections.
• I'd love to see every provider using the same system.
• their behavioral health care systems.

Committee: House Legislative Health & Human Services Committee

Transcript Highlights:

• This is to fund additional technical staff for the performance goals and compensation system.
• This is to fund additional technical staff for the performance goals and compensation system.
• It's to purchase an AV system for the Real Estate Commission.
• It's to repair and maintain the HVAC system. It's supported by license and application fees.
• It also depends on some quarterly payments that will be made and some end-of-the-year payments.

Committee: All ALC-PEER

Transcript Highlights:

• </c><00:01:20.960><c> level</c> critical work exposing system level critical work exposing system level
• </c> but deterring it through system but deterring it through system improvements,<00:01:41.920><c> early
• </c> folks outside of the reporting system. folks outside of the reporting system.
• We want to be able to address problems in the system.
• We want to be able to address problems in the system.

Committee: Senate Finance

Transcript Highlights:

• ...lose the right to drive the car that they bought, either through the mechanism of the tort system
• or the insurance system or what have you.
• Faster, fair claim payments.
• Interest on late payments.
• It also helps with faster payments and clear communications, not to destabilize markets.

Committee: Senate Insurance

Transcript Highlights:

• to KRS 56 and then pursuant to House Bills 1 and 6, the Kentucky Community and Technical College System
• College System and Eastern Kentucky<00:03:10.159><c> University</c><00:03:10.800><c> reported</c><00
• The first lease renewal is for the unified prosecutorial system for the Commonwealth Attorney, which
• Uh, $38,646 is our average annual debt service payment.
• It looks like they did service payment.

Summary: The committee first approved the February minutes and noted there had been no March meeting. Staff then provided a series of information items, including quarterly capital project status reports from state agencies and postsecondary institutions, a University of Kentucky equipment purchase report, notice that the committee took no action on certain March transactions, school district debt notices for Fayette and Jessamine counties, lease-space advertisements due to building conditions, a Kentucky Asset/Liability Commission report, and asset preservation project reports from KCTCS and Eastern Kentucky University. The committee then heard and unanimously approved Murray State University’s request for interim authorization to use institutional revenues for a $1.5 million roof replacement at the Curs Center student center. University of Kentucky also received unanimous approval for a $115 million public-private partnership project to expand Parking Structure 7 and the Johnson Center recreation space; testimony emphasized the loss of parking from hospital expansion, increased student enrollment, a planned $21 per semester recreation fee increase, and the goal of improving student retention and campus capacity. Next, the committee received a report on a Kentucky State Police Post 11 renovation in London funded at $1.138 million, with members asking how long the repairs would extend the building’s useful life; KSP said the work was a long-term investment and replacement was still many years away. The committee also approved multiple real property lease actions, including a new CHFS lease in Scott County, several lease renewals for the Commonwealth’s Attorney, CHFS, Transportation Cabinet, and a Secretary of State relocation lease tied to a capital renovation project. Members questioned one Jefferson County lease rate and the witness said it had been in place since 2007. Finally, the Kentucky Infrastructure Authority presented three water loan items, which were rolled and then approved: an $841,383 East Clark County Water District loan for waterline upgrades, a roughly $6.13 million Oldham County Water District loan for US 42 improvements, and a $619,180 increase for Canonsburg Water District’s Schopes Road project due to higher-than-expected bids. The committee then approved eight K-12 school facility issuances, including projects in Clinton, Franklin, Fulton, Lincoln, McLean, Paris, Somerset, and Spencer counties, covering early childhood, new school construction, HVAC, energy conservation, and renovations. The meeting ended with notice of the next meeting date and adjournment.

Transcript Highlights:

• That has to be recouped by the system.
• That has to be recouped by the system.
• paying back more to the MOSERS system.
• If the other guy lived past 78, then he was making some more payments, but it was making the whole system
• The system makes the calculation.

Transcript Highlights:

• Even within systems, providers and system stakeholders are not fully aware of the full service array
• We know that using not just in the adult system, but also in the juvenile system.
• The system is much smaller.
• system of some sort?
• So here we recommend two things: end the lump sum payment and go back to the old pay-as-you-go system

Committee: House Courts, Corrections & Justice Committee

Transcript Highlights:

• Bundled payment plans further encourage providers to work collaboratively, ensuring that all necessary
• To give more detail, the program ensures that a single payment covers all fees related to a surgical
• Under this program, our employees would not be required to pay deductibles, co-payments, co-insurance
• This bill defines consequential decisions and heightens scrutiny of AI systems so that any deployment
• in our state's public sector. is a robust framework to ensure AI systems used by state agencies and

Bills: HCR141 , SB438 , SB1495 , SB1964 , HB 1225

Committee: House Delivery of Government Efficiency

Keywords: HCR 141, House Concurrent Resolution, NASA, Houston, Space City, Johnson Space Center, Mission Control, Apollo 11, moon landing, aerospace, commercial space, space exploration, Texas Space Commission, space policy, federal resolution, memorial resolution, Congress, Washington D.C., headquarters relocation, space industry

Transcript Highlights:

• a year, usually an August payment and a January payment.
• The August payments are often interest only, and the January payment is the principal for that year as
• a year, usually an August payment and a January payment.
• The August payments are often interest only, and the January payment is the principal for that year as
• a year, usually an August payment and a January payment.

Committee: House Education Finance

Transcript Highlights:

• , as my staff and I have been locked out of that system during critical work periods.
• Is it a computer system? Is it up? Can you just sort of expound on that? Is it a computer system?
• system in '22.
• How long does it take to reconcile and remit payment to Baker County after a traffic citation has been
• Another family, an... ...could no longer afford these increasing payments.

Summary: The Legislative Auditing Committee heard several local-government audit requests and unanimously approved each one. The first item was Baker County, where county commissioners asked for an operational and financial audit because of repeated late audits, concerns about the finance office, and lack of confidence in county financial reporting. The county clerk supported an audit but argued it should be countywide and include all constitutional officers; she also described a dispute over access to the county finance system and pending litigation. After brief questions, the committee adopted a 9-0 motion directing the Auditor General to perform an operational audit of Baker County’s financial operations and records, with scope to be finalized during the audit. The committee then approved an audit request for the Concord Estates Community Development District in Osceola County. Senator Arrington said residents alleged excessive board compensation, large unexplained spending, missing financial reports, and refusal to provide records or hold open meetings. Residents and a board member testified about rising assessments, deteriorating amenities, and lack of transparency. The committee voted 10-0 to direct an operational audit of the CDD. It also approved, by 10-0 votes, operational audits of the town of Melbourne Beach, based on allegations of fiscal and operational improprieties and lawsuits that had cost the town more than $150,000, and the city of Apalachicola, where Senator Simon said longstanding water utility failures, grant issues, and consent-order problems warranted review. The final request was for a financial and operational audit of Cape Coral’s Building Department. Representative G. Lombardo said building-fee revenues appeared to be transferred for non-building purposes, permit processing was inconsistent, and the department relied heavily on a private firm while the building official had prior ties to that firm. Industry representatives testified that building funds were being diverted, service levels were suffering, and private-provider inspections were not always reflected in fee reductions. The committee adopted the motion 10-0. After completing all agenda items, the committee adjourned.

Transcript Highlights:

• Can you explain what kick payments are?
• But it's your monthly health insurance payment.
• We issue attorney kick payment, which is a separate payment outside of the competition of a process for
• whatever there's a delivery or payment.
• The health department staff will pick it up, put it in our system.

Transcript Highlights:

• The MOU and parity package include one-time stabilization payments for represented and non-represented
• child care providers, as well as a one-time cost-of-living adjustment catch-up payment for represented
• Finally, the bill appropriates $372 million in Prop 2 general fund for a supplemental pension payment
• The bill appropriates $372 million in Prop 2 general fund for a supplemental pension payment towards
• We also want to pledge our partnership in bringing down the CalFresh payment...

Committee: House Budget

Transcript Highlights:

• So we've been able to make payments on the things that we can make payments on, but we also have to be
• So we've been able to make payments on the things that we can make payments on, but we also have to be
• So we've been able to make payments on the things that we can make payments on, but we also have to be
• So we've been able to make payments on the things that we can make payments on, but we also have to be
• </c> referencing but also for food system referencing but also for food system vehicle<01:48:42.719><

Committee: Senate Agriculture, Veterans, Broadband, and Rural Development

Transcript Highlights:

• **Brent Webster**: The payment of this case has been delayed.
• **Brent Webster**: ...The payment of this case has been delayed.
• **Senator West**: So it's just the payment of it?
• If it's not associated with a border crime, we can't make a payment.
• There's some other way of receiving payment; you've got to go there first.

Bills: SB 1

Committee: Senate Finance

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, Attorney General, budget recommendations, funding swaps, salary increases, Landowner's Compensation Program, public testimony, law enforcement

Summary: The meeting focused on the budget recommendations for the Office of the Attorney General (OAG), where key issues included the proposed decrease of $163.9 million for the 2024-25 biennium and various methodology swaps for funding. Attorney General Paxton discussed ongoing litigation expenditures and emphasized the need for continued investments in agency staffing to address rising demands within law enforcement. Notably, he requested a 6% salary increase for 2026 and 2027 to retain talented personnel amidst competitive job markets. Public testimony highlighted community awareness challenges regarding the Landowner's Compensation Program, indicating a need for enhanced outreach efforts.

Transcript Highlights:

• , goes through that system.
• So that system is loaded with the budget as payments happen against it.
• </c><00:54:50.480><c> loaded</c> that system so that system is loaded that system so that system is loaded
• When the old system, the on-prem system, is going to not be supported? Right.
• Bottom line is these are pass-throughs to community water systems or wastewater systems.

Summary: The Department of Administrative Services presented an overview of its budget and operations, emphasizing that it is the lowest-spending agency in state government and that its general fund allocation has declined since 2019. Commissioner Arling House explained that DAS also handles back-office functions for several administratively attached boards, which has affected staffing and spending comparisons. He said the department’s current general fund spending is roughly split between retiree health and other operations, and that the presentation was based on adjusted authorized spending rather than the original budget figures. A major portion of the meeting focused on retiree health benefits and the long-term effort to control costs. Deputy Commissioner Cassie Keane described how the state moved from a projected deficit in retiree health to savings through a series of changes, including higher premium contributions, co-pay adjustments, and shifting Medicare retirees into Medicare Advantage arrangements to capture federal reimbursement. She said the state has about 12,500 retirees and spouses on the plan, with roughly 10,906 Medicare retirees and 1,580 non-Medicare retirees, and that the savings have depended heavily on federal funding and procurement decisions. She also noted that Medicare retirees pay Part B premiums and that the state has grandfathered older retirees from some premium contributions. Members asked about what the expenditures cover, why the state offers retiree health instead of simply giving retirees a payment to buy coverage themselves, and whether out-of-pocket costs changed under Medicare Advantage. Keane said the plan covers actual health claims or insurance premiums, that co-pays and maximum out-of-pocket limits remain in place, and that the state has no authority to change benefit details without legislative action. She explained that retiree health is a long-standing employee benefit that wraps around Medicare and is not collectively bargained in the usual sense, though its eligibility rules and cost-sharing have been tightened over time to better target the benefit to long-term state service. The discussion also covered vendor performance problems. Keane said Anthem recently won the contract back from Aetna, but its pharmacy subsidiary, Caroline, caused serious service disruptions. DAS responded by withholding payments, assessing more than $2 million in performance guarantees, and hiring a third-party auditor to review the pharmacy processes. The current contract runs through the end of calendar year 2026, and officials said they are watching federal Medicare Advantage reimbursement changes closely because future savings are uncertain.

Transcript Highlights:

• And then we did make some bigger changes on the payments during appeal after hearing input.
• This allows counties to get away from doing payments under protest.
• They can pay a partial payment, which is last year's amount.
• Then they make the rest of that payment within 30 days of it being resolved.
• And then, lastly, if you either didn't make the first payment or didn't make the final payment within

Committee: House Special Committee on Property Tax Reform