Keywords: 958, all

Summary: The committee met with a quorum, approved the prior meeting minutes, and then heard testimony on the use of artificial intelligence in therapy and mental health settings. Representative Lisa Willner and Brenda Rosen of NASW Kentucky argued for “guard rails” on AI chatbots so they cannot present themselves as licensed therapists or replace school counselors, psychologists, or social workers. They said AI can support licensed professionals, but warned that chatbots cannot reliably recognize nonverbal cues, escalate crises, or provide accountable care, and they cited examples of harmful chatbot interactions, including a suicide case and a chatbot telling a user to “Please die.” The witnesses also raised concerns about data privacy, commercialization of sensitive mental health conversations, and the use of personal clinical content to train AI models. They said minors should require parental consent and suggested transparency about how a chatbot is trained and who created it. They distinguished between unvetted consumer chatbots and AI tools that have been scientifically validated or approved as digital therapeutics, noting that some evidence-based tools may be useful for specific conditions such as depression, anxiety, or eating disorders. Committee members asked whether regulation should be handled by the legislature or by professional boards, and whether a multi-state model would be preferable to 50 different state approaches. The witnesses generally favored expert-led standards and said a board or panel of experts could review and approve mental health chatbots, but members cautioned that boards can become too restrictive and that legislation should preserve flexibility and avoid discouraging children from seeking help. The discussion ended with a request for the witnesses to restate their proposed policy ideas, including privacy protections, bans on commercialization, limits on training AI with clinical content, transparency requirements, and informed consent.

Keywords: 958, all

Summary: The interim task force on disaster prevention and resiliency met for its fourth meeting and focused heavily on insurance markets, affordability, and mitigation. Cochairs noted they are working toward recommendations for a later fall meeting. The main presentation came from David Snyder of the American Property Casualty Insurance Association, who said the insurance industry sees itself as part of the problem and part of the solution because it ultimately pays for losses created by natural conditions, development choices, and construction practices. Snyder described rising losses from natural catastrophes, inflation-driven increases in rebuilding and repair costs, more development in disaster-prone areas, wildfire exposure, severe convective storms, hail, and roof damage. He argued that Kentucky should avoid the mistakes he attributed to California, where regulatory responses contributed to a strained insurance market and greater reliance on the FAIR Plan. He said Kentucky’s private market appears to be functioning better, with relatively few FAIR Plan policies, and urged lawmakers to preserve that market through risk-based rates and policies that do not worsen availability. He recommended a broad mitigation strategy involving stronger building codes, land-use decisions, stormwater infrastructure, public access to risk data, and incentives for resilient construction. He highlighted programs such as the Insurance Institute for Business and Home Safety, fortified-home standards, wildfire-prepared community practices, and examples from Alabama, Louisiana, and Florida showing that mitigation can produce quick returns and insurance discounts. He also suggested catastrophe savings accounts, flexible coverage options, and a whole-of-government approach that includes the insurance department, building-code agencies, first responders, FEMA, NFIP, and NOAA. In questions, a legislator asked about the prognosis if carriers continue exiting markets and if nothing is done to address affordability and accessibility. Snyder said he could not predict market exits but stressed that regulators should monitor the market closely, use available data, and focus on loss prevention and mitigation. He said insurers want to do business in Kentucky and that the long-term solution is coordinated action among public and private stakeholders to reduce risk and keep coverage available.

Keywords: 958, all

Summary: The Medicaid Oversight Advisory Board first approved the September 24 minutes and then heard a presentation from four certified community behavioral health clinic providers: Pathways, NorthKey, Seven Counties Services, and NewVista. The presenters explained the difference between traditional community mental health centers and CCBHCs, describing CCBHCs as an enhanced model that integrates behavioral health, primary care, wraparound services, and crisis response. They reviewed the federal history of the model, Kentucky’s entry into the Medicaid demonstration in 2022, and the scheduled end of the enhanced federal match on December 31, 2027. They also emphasized required services such as 24-hour mobile crisis, care coordination, and services for veterans, and described care coordination as a key feature that helps patients follow up after hospital or emergency discharge, manage medications, and connect to transportation and other supports. The presenters gave examples of improved outcomes, including a patient who was able to remain living independently because of coordinated home-based and telehealth support, and they argued that CCBHCs are helping Kentucky build a more responsive crisis system through 988, mobile crisis teams, and crisis stabilization units. They said the model is data-driven, uses performance metrics, and has led to stronger collaboration among community partners. One speaker said more than 100 agencies participated in a Jefferson County community health needs assessment and continued meeting afterward to reduce redundancies and barriers to care. They also said crisis call hub compliance and mobile crisis outreach compliance improved significantly over the past year. Members asked about how navigators and connectors fit into the model, how CCBHCs work with managed care organizations, and how the program could expand statewide. The presenters said navigators are not built into the CCBHC model but may be used through referrals, while the CCBHCs continue to bill MCOs the same way and receive a Medicaid wrap payment for the enhanced rate. They said the goal would be for all community mental health centers to become CCBHCs, but that a state plan amendment would be needed and could not be limited only to CMHCs if submitted to CMS. They estimated about $28 million would be needed statewide to continue the program in the next biennium, combining the loss of enhanced federal match and the state share of enhanced service costs. The board also discussed transportation, with one presenter explaining that their program arranges Medicaid transportation for eligible appointments, and members raised concerns about mental inquest warrant transport and whether sheriffs should remain involved. No votes were taken on the CCBHC or transportation items during the discussion.

Keywords: 958, all

Summary: The Legislative Research Commission was called to order, a roll call established a quorum, and the commission approved a motion to adopt the June 18, 2025 minutes with specified exceptions, approve new business items A through K, and accept and refer communications items 1 through 52. The motion was seconded, a roll call vote was taken, and it passed unanimously among those present. During new business, a member provided a brief update on planning for the upcoming SLC conference in Lexington, noting that the schedule is still preliminary and that contracts are being signed. The member said the host committee is still raising funds, with about $2.25 million remaining to be raised by next summer, and thanked President Stivers and Speaker Osborne for their efforts. No questions were raised about the conference update, no additional new business or communications were offered, and the commission then moved to adjourn. The meeting adjourned without objection after a second was noted on the motion to adjourn.

Keywords: 958, all

Summary: The committee approved the minutes from its August 21 meeting and then received an update from Kentucky Horse Racing and Gaming Corporation leadership on implementation of Senate Bill 299 and House Bill 566. Jamie Eids and staff described the agency’s new structure after charitable gaming was brought under the corporation, including new divisions, staffing, banking, payroll, insurance, procurement, and reporting systems. They also unveiled the corporation’s new logo and tagline, and said the transition had been designed to avoid interruption for charities, licensees, and racing operations. A major focus was the fee structure required by House Bill 566. Eids outlined current licensing fees across racing, sports wagering, and charitable gaming, compared Kentucky’s fees with other states, and recommended keeping the status quo for one more year because the agency has only recently brought all three components fully in-house. Members asked about whether charitable gaming had harmed veterans’ groups or other nonprofits, whether any revenue should be transferred back to the state, and whether the charitable gaming licenses cover one-off raffles as well as standing operations. Eids said she had not heard complaints, said the licenses include all such activity with some exemptions, and agreed to look at the question of future transfers. The committee then heard from Melissa Combs Wright on pari-mutuel wagering and Hannah Sims on sports wagering. They reported continued growth in historical horse racing, more than $11 billion in total pari-mutuel wagering in fiscal year 2025, over $10.5 billion in HHR wagers, and about $161 million in pari-mutuel tax revenue, with most of that supporting the general fund and horse-breeding development funds. They also said sports wagering has generated nearly $5 billion in wagers since launch, $73 million for the public pension fund, and more than $2 million for problem gambling services, while expanding to 13 retail locations and 92 additional sports events. Members raised concerns about players being cut off after winning, the lack of local government revenue sharing from gaming facilities, and the growth of computer-assisted wagering; the witnesses said they were reviewing CAWs and that Kentucky does not license poker rooms through the corporation.

Keywords: 958, all

Summary: The Joint Committee on Families and Children met with a quorum, approved the August minutes, and received an update that the number of children in out-of-home care with active placements was 8,647 as of September 7, 2025. The first presentation was from Isaiah 117 House, a nonprofit that provides a home-like setting for children on removal day so they do not have to wait in a state office. Speakers described the mission as reducing trauma for children, lightening the burden on case workers, and easing transitions to foster or kinship placements. They said the Kentucky home in Logan County opened on August 15 and had already served 10 children in its first six days. Committee members asked about logistics, including whether children placed with kinship caregivers would still come to the house, how long children can stay, who remains responsible for them, and how volunteers are screened. The presenters said children are brought to the house regardless of whether they are headed to kinship or foster placement, that 72 hours is not a hard cutoff, and that a case worker remains in charge at all times while volunteers provide support. They also said volunteers undergo background checks, trauma-informed training, confidentiality instruction, and annual continuing education. In response to questions about funding and expansion, they said Isaiah 117 House is community-funded without state or federal money, and that new homes are opened only when fully funded, with construction costs typically ranging from $80,000 to $150,000 and first-year budgets around $180,000. The committee then heard a presentation from Remy Eastep Homes on its Family Centered Integrated Healthcare and related services. Leaders described the organization’s history from its origins as separate orphanages in Boyd County to residential treatment, treatment foster care, prevention services, and outpatient behavioral health. They said the organization shifted about 15 years ago toward engaging families more directly because family involvement improves outcomes and helps keep children safely at home when possible. The presentation continued into program details, but no votes or formal actions were taken on either presentation.

Keywords: 958, all

Summary: The Medicaid Oversight and Advisory Board met on September 24, 2025, approved the minutes from the September 9 meeting, and then continued its discussion of Medicaid waivers with Leslie Hoffman and Carmen Hancock from the Department for Medicaid Services. Members asked for updates on the 2024 waiver waitlist management assessment recommendations, including aligning waiver policies, standardizing applications and waitlist placement, and modernizing data systems. DMS said that work is being done jointly with Aging and Independent Living and Behavioral Health/Developmental and Intellectual Disabilities through task forces, that ARPA spending delayed action, and that implementation timelines extend through March 2027. The board also reviewed per-member waiver cost averages for fiscal years 2023 through 2025 for ABI, ABI long-term care, HCBS, Model II, Michelle P, and SCL. DMS emphasized these figures were benefit-only averages based on paid claims, not full waiver costs, and explained that true budget neutrality is calculated on an aggregate basis against institutional care comparisons approved by CMS. DMS said all six waivers remain in compliance with budget neutrality and that the most recent 18-month lag review for FY 2022 and FY 2023 found costs at or below institutional care. Members also asked about unused waiver slots; DMS said slots generally cannot be reallocated mid-year if they have been used, except in cases such as death or reserved capacity, because CMS treats participants as unduplicated for the waiver year. A major portion of the meeting focused on the new child waiver created under House Bill 6. Legislators questioned whether the waiver’s design, including the exclusion of participant-directed services and the emphasis on high-acuity children with behavioral health, DCBS, or juvenile justice involvement, matched the bill’s intent to keep children at home. DMS said it used the $14.7 million appropriated for FY 2026 to develop the program, that there is no priority list, and that the waiver is intended to serve the highest-acuity children while also addressing residential needs for those sleeping in offices or placed out of state. Members also raised concerns about the rapid growth of the HCBS waiting list and asked for more detail on age and timing patterns, which DMS said it would provide later. Finally, DMS gave average processing times from application to eligibility determination and from approval to service start, and said the overall average from application to services beginning was about 80 days, while members requested follow-up information on the Carewise assessment contract and related costs.

Keywords: 958, all

Summary: The committee met with a quorum, approved the August minutes, and heard a brief announcement from Senator Richardson about the Missing in America Project interring unclaimed veterans’ remains at the Western Kentucky Veterans Cemetery in Hopkinsville. He read the names of several veterans being laid to rest with military honors, and the chair thanked the volunteers involved in the effort. The main presentation was an update on Kentucky’s urban search and rescue program from the Department of Military Affairs and Kentucky Emergency Management. Officials said the program is being built around two regional task force hubs, a helicopter aquatic rescue team, an incident support team, and a rescue aid fund for local search and rescue units. They reported that the $8.3 million appropriated for the program in the 2025 budget was fully executed, that $482,670 of the rescue aid fund went to 29 local teams, and that $493,592 has already been allocated in the current year to 36 teams. They also described warehouse and equipment purchases, staffing with full-time and part-time personnel, and a new training site on state property for collapsed-structure and multi-agency exercises. Officials said the program has already been used in recent disasters, including flood response and urban search and rescue operations in several parts of the state, and claimed the effort has impacted more than 1,500 citizens through rescues, evacuations, and related assistance. They said the helicopter aquatic rescue team is fully operational, the task force roster should be finalized by January, incident support should be online by April, and the full program should be deployable by June 30 or July 1, 2026. Members asked about statewide response times, K-9 search capabilities, and the long-term cost of the program, including concerns about reliance on federal matching funds. The presenters said K-9 assets will be part of the task force, that pre-positioning during forecasted storms can reduce response times significantly, and that they would provide more detailed budget information later.

Keywords: 958, all

Summary: The Commission on Race and Access to Opportunity met in September 2025, established a quorum, introduced new member Larry Forester, and approved the minutes from the August 26 meeting. The main presentation came from Warren County Public Schools Superintendent Rob Clayton and Assistant Superintendent Sarah Johnson, who discussed the district’s work serving English language learners and multilingual students, including immigrant and refugee families. They said Warren County now serves roughly 5,500 multilingual students out of about 19,000 total, representing about 92 languages and 90 countries, with 57 certified multilingual teachers, a GO Center, migrant and refugee advocates, and the state’s first international high school. The presenters emphasized that the district welcomes immigrant families and that students and parents generally value public education, but they described major challenges tied to accountability and funding. They explained that multilingual students are tested after one year in the system, even though many need more time to become proficient in English and grade-level standards, and they argued that current graduation-rate rules can unfairly penalize schools when transient students enroll briefly and then leave. They also said the cost of serving this population has risen sharply, with special revenue and especially general-fund spending increasing substantially over the past decade, prompting the district to reallocate resources from EL teacher assistants toward translation technology and additional certified staff. Committee members asked questions about how long-term multilingual students compare with the general student body and whether the district’s data show similar graduation outcomes. Clayton said he did not have the specific comparison data at hand but believed students who stay K-12 generally reach proficiency. He and Johnson asked legislators to consider giving students more time before accountability measures apply and to shift some graduation accountability from individual schools to the district level for highly transient populations, while still maintaining accountability. No formal votes or legislative actions were taken beyond approval of the minutes.

Keywords: 958, all

Summary: The committee met and approved the August 21, 2025 minutes. The main presentation came from Brandon Reid of the Kentucky Office of Agriculture Policy, who reported that implementation of the Kentucky Agriculture Economic Development Board created by Senate Bill 28 and House Joint Resolution 31 is ahead of schedule. He said the board has been appointed and has met several times, has adopted guidelines and an application process, and has launched its application on the KDA website. He also noted new staffing, including a project manager, and said the office is already working on projects, though some are confidential because of coordination with the Economic Development Cabinet and nondisclosure agreements. Members praised the effort and emphasized the importance of having agriculture represented in economic development work. Reid also described ongoing outreach by Commissioner Jonathan Shell, including farmer appreciation and classroom visits across the state. The committee then heard from Lexington Mayor Linda Gorton and Bluegrass Ag Tech Development Corp. executive director Jacob Ball about the Bluegrass Ag Tech Development Corp., a public-private partnership involving Lexington-Fayette, the Kentucky Department of Agriculture, the University of Kentucky, and Altech. They said the organization aims to make Kentucky a national and international hub for ag tech, and that it has already awarded challenge grants to startups. Ball explained that the program focuses on animal protein, nutrition, sustainability, mid-size farm solutions, and Kentucky traditions such as distilling and equine. He reported that two rounds of grants have totaled $925,000, with the first round’s seven companies leveraging that into nearly $7 million in follow-on investment, supporting 56.5 Kentucky jobs and creating more than a dozen new jobs. The presentation also highlighted statewide outreach, including applications and engagement from counties across Kentucky, and the goal of expanding participation in eastern Kentucky. Members expressed support for both initiatives and discussed the value of agriculture-specific expertise in economic development. Reid said the Department of Agriculture and the Economic Development Cabinet maintain regular communication and that the new board gives agriculture a seat at the table for future site and industry recruitment efforts. No additional votes or formal actions were taken beyond approval of the minutes.

Keywords: 958, all

Summary: The Interim Joint Budget Review Subcommittee on Education met with a quorum, approved the August 20, 2025 minutes, and then heard a discussion tied to Constitution Day and Kentucky’s constitutional duty to provide an efficient system of common schools. Chairman James Tipton reviewed the history of Kentucky’s model laboratory schools, postsecondary academy programs such as Gatton and Craft, magnet schools, virtual learning, and computer science opportunities, arguing that Kentucky has long expanded educational opportunity through different school models. He described model schools and academy programs as hybrid or innovative approaches that serve specialized student needs and noted that some of these programs receive state appropriations and, in some cases, tuition. Senator Steve West then gave a retrospective on school choice in Kentucky, beginning with the 2017 charter school law and explaining that Kentucky’s charter framework was designed as public-only to comply with the state constitution. He said charter schools have remained largely dormant in Kentucky and used that as context for Senate Bill 207, the School Innovation Act, which he said was modeled on a South Carolina approach. Under SB 207, a local school board can contract with a third-party entity to manage an existing school, receive SEEK funding, and seek waivers from certain state regulations in order to innovate, while retaining limits on items such as school safety and attendance rules. Members asked about how the new model differs from charter schools, whether schools could cherry-pick students, and whether teachers would remain district employees. West and Tipton said the bill is intended to keep the school within the public system, with the local district initiating the process and maintaining accountability through a time-limited contract that can be ended if the school fails to perform. They emphasized that the school would serve the existing student population rather than select students, and that teachers would remain district employees with their pensions and related contributions unchanged. Representative Brown raised concerns that exceptions and charters could leave lower-income children behind, while West responded that the bill is meant to expand choice for families who otherwise lack access and cited examples from other states where outside management and parental involvement helped turn around low-performing schools. No additional votes or formal actions were taken beyond approving the minutes.

Keywords: 958, all

Summary: The meeting focused on Kentucky school choice and innovation, with discussion of the state constitution’s “common schools” requirement and how that has been interpreted alongside newer education models. Chairman Tipton described model laboratory schools, Gatton and Craft Academies, magnet and virtual programs, and said these options show that Kentucky has long expanded opportunity through innovation. He then turned the discussion to Senate Bill 207, which he said was designed to support schools of innovation. Senator Steve West reviewed the history of Kentucky charter schools and explained that SB 207 was modeled on a South Carolina approach. He said the bill allows a local school board to contract with a third-party entity to manage an existing school, seek waivers from certain state rules, and receive SEEK funding while also allowing outside private investment. He emphasized that the district initiates the process, that the school remains public, and that the bill includes accountability through a time-limited contract that can be ended if the school is not performing. Members asked about the difference between SB 207 and the earlier charter school law, whether schools could cherry-pick students, and whether teachers would remain district employees. West and Tipton said the new model is tied to an existing school rather than a new charter, cannot cherry-pick students, and keeps teachers as district employees. Representative Brown raised concerns that charters and exceptions could leave some children out, especially lower-income students, while West responded that the proposal is intended to expand choice for families who may not otherwise have it and cited examples from other states where similar models improved low-performing schools. No vote or formal action was taken during the discussion.

Keywords: 958, all

Summary: The Interim Joint Budget Review Subcommittee on Justice and Judiciary met without a quorum and heard an update from the Administrative Office of the Courts on the judicial branch budget. AOC Director Zach Ramsey and budget director Carol Henderson outlined the branch’s current funding structure, noting that fiscal year 2026 general fund support is about 2.77% of the state general fund, below the National Center for State Courts’ typical 2% to 4% range. They emphasized Kentucky’s unusual responsibility for courthouse facilities, with the judicial branch directly involved in construction, maintenance, and operations across 229 facilities in all 120 counties. AOC said nearly 91% of its general fund is spent on personnel and other non-discretionary costs, and that the branch has long relied on agency revenue, restricted fund carryforwards, and vacancy credits to balance court operations. Members were told that Senate Bill 25 required a $34.5 million transfer into a reserve account, part of which was used to purchase the Chamberlain Avenue building in Frankfort. AOC reported that only $11.9 million remains in restricted funds, while it projects needing about $13.5 million to cover fiscal year 2026 obligations, not including roughly $9 million in flood-related remediation costs for Hardin and Franklin counties, much of which it expects to recover through insurance and FEMA. Looking ahead to the next biennium, AOC said it will seek full funding of court operations at $341 million annually, a $13.5 million increase to bring current services into the base appropriation rather than relying on reserves. It also previewed additional requests, including a 15% across-the-board pay parity plan for Kentucky Court of Justice personnel, replacement of declining master commissioner fee revenue tied to 141 deputy circuit court clerk positions, funding for technology subscription and case management system costs, JAV audiovisual system upgrades, AEDs and medical kits for courthouses, and other staffing and operational needs. Senator Funky Frommeyer asked whether the 15% salary proposal was included in the $13.5 million increase; AOC said it was not, and that it would be an additional request. No votes or formal actions were taken.

Keywords: 958, all

Summary: The task force met with a quorum, approved the minutes from the August 20 meeting, and then heard testimony from Representative Steven Doan on House Bill 439, a school nutrition bill aimed at restricting certain ultra-processed foods in schools. Doan said the bill was inspired by his own health journey and his work in agriculture, and he described the measure as targeting specific chemical additives in foods served during the school day, not concession sales or after-hours activities. He said the bill would phase in later to give schools time to adjust and noted that the list of restricted additives was drawn from efforts in other states and advocacy groups. Members asked about the chemical abstract numbers, fiscal impact, summer meal programs, fundraisers, and whether the bill would affect parent-provided items; Doan said he had not done a fiscal note and explained that the bill was intended to apply only during instructional time on school property. Committee members generally reacted favorably, with some raising practical concerns about cost and implementation. One member asked about high fructose corn syrup, which Doan said was not included because it is too pervasive in the food system. Another member noted that schools already limit some homemade items and asked about the line between school-provided and parent-provided food. Doan also said the list was based in part on Turning Point USA materials and similar laws in other states, and he referenced federal efforts to define ultra-processed foods. The committee then heard from Kentucky Department of Education officials Matt Ross, Lauren Moore, and Katie Embry on school meals and nutrition programs. They outlined Kentucky’s school lunch, breakfast, summer meals, and other USDA child nutrition programs, including participation and reimbursement figures, and explained how community eligibility provision schools, meal patterns, offer-versus-serve, smart snacks, and local wellness policies work. They said USDA and FDA are currently seeking public input on a uniform definition of ultra-processed foods, that there are no current USDA requirements specifically on ultra-processed foods, and that schools already operate under federal and state rules governing competitive foods, including a state time restriction on smart snacks. They also discussed local purchasing, noting its benefits but also the procurement and staffing challenges schools face. No votes or final actions on the bill were taken in the portion provided.

Keywords: 958, all

Summary: The Budget Review Subcommittee on Health and Family Services heard a presentation on Kentucky personal care homes from representatives of the Kentucky Association of Healthcare Facilities, Management Systems of Kentucky, and Elder Care Partners. Witnesses described personal care homes as a lower-cost, 24/7 residential option for adults with serious mental illness who do not qualify for nursing home care but need structured support, medication assistance, meals, housekeeping, transportation, and supervision. They said the homes are regulated by the Cabinet for Health and Family Services, are not Medicaid-funded, and rely on a state supplementation rate of about $50.70 per day, which they argued no longer covers operating costs because of rising food, labor, insurance, and maintenance expenses. The presenters said the sector has shrunk significantly over time, citing a drop from 64 homes in 2002 to 34 today among the homes serving this population, with 30 closures over 23 years and two more closures since August. They argued that the closures have contributed to homelessness, hospital overcrowding, and longer stays in psychiatric hospitals, and they gave examples of residents who had spent many months in hospitals before stabilizing in a personal care home. One provider also described spending more than $800,000 on capital improvements after acquiring Kentucky facilities and said reimbursement is too low to sustain safe operations. They asked for an incremental reimbursement increase over two years and said they have also proposed an assisted-living model for people with mental illness. Members asked about staffing, reimbursement, and the number of people still needing placement. The presenters said there is no requirement for licensed or certified staff in these facilities, though some homes use medication technicians and occasional LPNs. They estimated they are currently serving about 2,000 residents and said they receive roughly 30 referrals for every one person admitted, with many referrals involving people whose needs exceed the personal care home level. Senator Meredith and Representative Fleming said any funding request would need documentation of savings and corresponding budget offsets, while Representative Duval expressed support and asked about possible staffing and program improvements. The witnesses also compared Kentucky’s flat-rate reimbursement to a more individualized reimbursement model in Minnesota, saying a needs-based system would better match staffing and reduce hospitalizations.

Keywords: 958, all

Summary: The Budget Subcommittee on Economic Development, Tourism, and Environmental Protection received a detailed update from Kentucky State Parks Commissioner Meyer on capital projects funded through HJR 76, HJR 56, and House Bill 6. He said the department is making steady progress on a large portfolio of park improvements, with regular quarterly reporting to the legislature and ongoing coordination with the Finance Cabinet, the Energy and Environment Cabinet, the Commonwealth Office of Technology, and local utilities and governments. He emphasized that ADA accessibility is a priority across projects and noted that many completed items, including campground bathhouse renovations, broadband upgrades, life safety improvements, playground replacements, and some furniture and mattress upgrades, are already drawing positive feedback. The presentation focused heavily on campground, utility, and infrastructure work. Meyer described $40 million in campground upgrades split between western and eastern Kentucky, including projects at Ken Lake, Carter Caves, My Old Kentucky Home, Cumberland Falls, and others. He also outlined $20 million in utility improvements, including a federal matching grant for grid resiliency at Ken Lake and Kentucky Dam Village, plus wastewater and electrical infrastructure work at parks such as Dale Hollow, Blue Licks, Natural Bridge, and Cumberland Falls. Additional categories included building systems, life safety, structural repairs, accommodations and hospitality upgrades, pool and beach work, dam safety, playgrounds, and golf course improvements. Members asked about the status of Lake Barkley utilities, the possibility of transferring upgraded utility infrastructure to local providers after repairs, and how park repair priorities are set. Meyer said park managers report issues through regional directors and that projects are prioritized through a running capital list, similar to a long-range transportation plan. He said the department has already spent the current $20 million allocation and is requesting $40 million in the next budget cycle, adding that the department believes it could spend and complete projects if that amount is appropriated. The commissioner also said the department is managing 284 additional capital projects outside the main funding streams, totaling nearly $70 million.

Keywords: 958, all

Summary: The Health and Family Services committee heard an informational presentation on Kentucky personal care homes from representatives of the Kentucky Association of Healthcare Facilities, Management Systems of Kentucky, and Elder Care Partners. Witnesses described personal care homes as a lower-cost, 24/7 residential option for adults, often with serious mental illness, who do not meet nursing home criteria but need structured supervision, medication assistance, meals, and daily support. They said the homes are regulated by the Cabinet for Health and Family Services, are not Medicaid-funded, and are supported largely through state supplementation payments and residents’ SSI income. The presenters argued that the current reimbursement rate of about $50.70 per day is no longer sufficient to cover staffing, food, insurance, utilities, maintenance, and other costs, and said the sector has shrunk significantly over time. They cited figures showing a decline from 64 to 34 homes serving the seriously mentally ill since 2002, with 30 closures over 23 years, and said the loss of beds contributes to homelessness, hospital overcrowding, and longer psychiatric stays. They also gave examples of residents who had spent many months in hospitals before being successfully placed in personal care homes, which they said can prevent more costly institutional care. Committee members asked about staffing credentials, fraud controls, referral processes, and how reimbursement works in other states. The presenters said Kentucky does not require licensed or certified staff in these facilities, though some homes use certified medication technicians or an LPN, and they described a county case-manager-based assessment process used to set individualized rates in other states such as Minnesota. Members expressed support for the work but emphasized the need for documentation of savings and budget offsets. The presenters said they are seeking an incremental reimbursement increase over two years, roughly 25% to 50% in the first year and another 50% after that, and urged the committee to support the homes to prevent further closures.

Keywords: 958, all

Summary: The committee met and approved the minutes from its August 27 meeting. It then received a presentation from Katherine Castanza of the National Conference of State Legislators on the Medicaid provisions in the 2025 budget reconciliation bill, referred to as HR1. She explained that the bill is estimated by CBO to save the federal government $911 billion over 10 years, with more than 20 Medicaid-specific provisions, most of the savings concentrated in five policies and largely backloaded into 2030-2034. She emphasized that the bill’s effects will vary by state, but that expansion states and hospitals are expected to be most affected, in part because of changes to eligibility, provider taxes, and state-directed payments. Castanza highlighted several new funding and flexibility provisions, including a $50 billion Rural Health Transformation Fund for 2026-2030 and a new home- and community-based services waiver option effective July 1, 2028, with $100 million in grants in fiscal year 2027. She also outlined major eligibility changes for Medicaid expansion adults: work or community engagement requirements effective January 1, 2027; twice-yearly redeterminations for the expansion population effective the same date; and new cost sharing for certain expansion adults effective October 1, 2028. She noted that Kentucky, as an expansion state, would be subject to these changes and that state agencies would face significant implementation demands, especially because federal guidance and timelines are tight. A substantial portion of the presentation focused on financing changes. Castanza described new limits on provider taxes, including a 0% safe harbor for new taxes and a phased reduction for existing taxes in expansion states beginning in 2028, while nursing facilities and intermediate care facilities are exempt from the reduction if already taxed. She also explained that state-directed payments will be capped and phased down over time, with existing arrangements grandfathered only briefly; she said Kentucky has 11 approved state-directed payments and could see significant fiscal effects. She added that the bill also bars Medicaid payments to Planned Parenthood or similarly situated providers for one year, changes immigrant eligibility rules effective October 1, 2026, lowers the federal match for certain emergency services, and expands the scope of the federal erroneous payment recoupment provision effective October 1, 2029. Throughout, she stressed that federal savings may translate into state cost shifts and that implementation timing will be critical.

Keywords: 958, all

Summary: The task force meeting began with approval of the July 14 minutes and then heard a presentation from the Kentucky Aviation Association. Association leaders described general aviation airports as important to rural access, commerce, emergency response, tourism, agriculture, and workforce development, and cited statewide economic impacts they said exceed $1.6 billion and support more than 9,400 jobs. They thanked the legislature for prior airport funding and said it had helped airports with basic operations and repairs. The association asked lawmakers for four things: continued appropriations for general aviation airports; relief or a more workable process for required financial audits, which they said can cost $10,000 to $20,000 or more and sometimes exceed a small airport’s annual budget; a regularized statewide appropriations process for airport infrastructure needs, which they said total about $100 million and are currently addressed unevenly; and funding for the Aerospace Education Reinvestment Opportunity Act to support scholarships and aviation workforce training. Members of the task force asked follow-up questions about the audit burden, the difference between financial and safety audits, and the difficulty of finding audit firms. The presenters said they would bring specific ideas back on audit reform. Eastern Kentucky University then presented on its aviation program. EKU leaders thanked the committee for prior support, including a $25 million appropriation for a new flight school building at Central Kentucky Regional Airport, and said the project is expected to break ground in 2026. They reported strong enrollment growth, with 502 aviation majors, most of them Kentuckians, and said the program has expanded flight hours and job placement. EKU also outlined plans to add an air traffic control program in response to Senate Bill 87 and the national shortage of controllers, saying it could train students to FAA standards if the university receives the needed investment in simulators, equipment, space, and faculty. They also discussed the need to replace an aging fleet of training aircraft, saying the current planes are decades old and costly to maintain, and that newer aircraft would improve training quality and reduce student costs.

Keywords: 958, all

Summary: The meeting focused on preliminary fiscal 2026 revenue estimates and the governor’s office request for an official revision to fiscal 2026, with members reminded that any estimate adopted now would not bind the December official estimates. Staff from S&P Global walked through three forecast scenarios—control, optimistic, and pessimistic—based on recent federal tax changes, tariffs, and other policy developments, emphasizing that the outlook remains highly uncertain. Under the control scenario, the presentation projected below-trend real GDP growth of 1.8% in fiscal 2026, slowing to 1.5% by fiscal 2028, with unemployment peaking around 4.5% and the Federal Reserve cutting rates three times to a long-run range of about 2.75% to 3%. The optimistic scenario assumed lower effective tariffs, stronger growth, and better labor and housing outcomes, while the pessimistic scenario assumed a broader trade war, higher effective tariffs, faster deportations, weaker employment and consumer spending, and unemployment rising to about 6.3%. Speakers also noted that the forecast was prepared before later BLS revisions and that recent data on inventories and AI-related investment made the recent quarters look unusually volatile. Members discussed how the current fiscal 2026 outlook compared with earlier assumptions and noted that the eventual revenue revision may be smaller than the spread between the optimistic and pessimistic economic scenarios. The governor’s office and committee members also reviewed sector-specific impacts, including manufacturing, housing, light vehicle production, exports, and consumer sentiment, with particular concern about Kentucky’s auto and housing-related industries. No votes or formal actions were taken in the portion provided.