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KY

Kentucky 2026 Regular Session

House Standing Committee on Appropriations and Revenue.(2-10-26)

Appropriations & Revenue

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Summary: The committee met for a budget-only discussion with no bills scheduled for a vote. Members first welcomed a group of high school guests, then heard from the Cabinet for Health and Family Services on funding issues for child advocacy centers, domestic violence centers, rape crisis centers, and SNAP. DCBS Commissioner Lisa Dennis and budget director Misty Sammons said the victim-services programs were included in the current baseline budget, but it was too early in the budget process to know final funding levels. They said earlier reports of major cuts were based on a misunderstanding, that conversations with the agencies were ongoing, and that they would provide the committee with the agency’s base-budget information. A member also asked about domestic violence shelter funding, and the cabinet explained that prior one-time money had been used to replace lost federal Victims of Crime Act funds. On SNAP, the cabinet said Kentucky does not expect to need additional money for benefit costs because the payment error rate is about 4%, below the threshold that would trigger added state costs. However, they said the federal HR1 change shifting SNAP administrative costs from a 50/50 state-federal split to 75% state and 25% federal will require additional funding to operate the program. Members praised the eligibility and family support staff for keeping error rates low and asked to be notified quickly if more implementation support is needed. Representative Bojanowski asked whether a specific SNAP administrative cost figure was already in House Bill 500; the cabinet said it was not, and that such an item would be an additional budget request not included in the bill. The committee then heard from the Department for Medicaid Services. Commissioner Lisa Lee and Senior Deputy Commissioner Veronica Judy Cecil described Medicaid fraud-and-abuse monitoring, including a new CMS file and guidance on concurrent enrollment across states. They said DMS refers suspected fraud or abuse to the Attorney General’s office and that the relationship is working well. When asked about using AI, they said the department is not yet using AI but does use internal algorithms to flag potential fraud, waste, and abuse. Finally, Eric Lowry of the Cabinet for Health and Family Services discussed fiscal note processing, saying House Bill 2 is a complex Medicaid bill and that the cabinet is working to set up a meeting with the sponsor; he said the cabinet is responding and hopes to meet on Monday. The committee also briefly heard from the Kentucky Department of Education, where Matt Ross said the existing $7.4 million for school-based mental health services is already in the base budget and that no additional language is needed in House Bill 500 to distribute it, though KDE has requested additional funding to raise the overall appropriation to $18 million.
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Summary: The committee met with a quorum, approved the minutes from the previous meeting, and then heard a presentation from LG&E and KU representatives Caroline Clark and John Bevington on economic development, energy demand, and the utility’s role in supporting Kentucky’s growth. Bevington described the company’s service territory, generation fleet, and recent economic development activity, including 76 projects supported in 2024, more than $2.8 billion in private investment, and over 3,000 new jobs. He emphasized that data centers are now the dominant driver in the pipeline, with 22 data center projects representing about 8.7 of the 9.7 gigawatts of potential demand, alongside other manufacturing and commercial projects. A major focus was how data centers choose sites and how utilities respond. Bevington explained that hyperscale data centers typically approach utilities first because they need transmission-level access, and that utilities then conduct internal analyses, estimate infrastructure needs, and require financial security before proceeding. He said the company is working through formal transmission studies and long-lead infrastructure planning, and noted that Kentucky’s sales tax exemption for data centers helped attract interest. He also outlined the economic benefits of data centers, citing an announced Louisville project of 525 megawatts and about $11 billion in investment, with an estimated $500 million in new tax revenue over 10 years, plus broader job and GDP impacts. Members asked about whether data centers could generate their own power, the reliability of the pipeline numbers given confidentiality and nondisclosure agreements, and cybersecurity concerns. Bevington said the company does not assume all pipeline projects will materialize in Kentucky and instead assigns probabilities to avoid overbuilding. He also said he was not the right person to address cybersecurity in detail but offered to return to a committee focused on IT or security. In response to questions about future supply, he said LG&E and KU are adding generation through a 120-megawatt solar facility in Mercer County, a 120-megawatt solar purchase in Marion County, and a 645-megawatt natural gas combined-cycle plant in Louisville, with PSC approval recently granted for additional generation and related system upgrades.
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Summary: The committee’s first interim meeting opened with roll call, a quorum, and a briefing from Transportation Cabinet officials on the Cabinet’s response to severe weather and tornadoes in Kentucky, especially the May 16–17 storms that caused deaths and widespread damage in Pulaski and Laurel counties, with an additional tornado noted in Washington County. Secretary Jim Gray, State Highway Engineer James Ballinger, and District 11 engineer Chris Jones described how crews in all 120 counties were placed on alert, how roads were cleared of debris, and how KYTC coordinated with emergency management, law enforcement, local governments, and utilities to restore access and power. They reported major impacts on roads, signals, and other infrastructure, including the EF4 tornado path through Pulaski and Laurel counties, and said KYTC also helped with debris hauling, airport cleanup, and delivery of water and meals. The officials gave specific recovery figures for Laurel County, including 1,800 loads of construction and demolition debris hauled, about 11,000 tons and 22,000 cubic yards removed, with roughly 50% of vegetative debris cleared at that point. They said all state roadways in Laurel County were reopened, the London-Corbin Airport was returned to flight operations by Sunday, and a transition plan was underway for Laurel County Fiscal Court’s contractor to take over debris operations. Gray also noted that KYTC had helped issue replacement IDs, licenses, registrations, and titles at no cost in disaster areas, and said the Team Kentucky Storm Relief Fund had raised nearly $1.5 million from more than 6,000 donors. Members praised KYTC staff as first responders and thanked them for their quick response and coordination. Several legislators recounted local impacts in Washington, Pulaski, and Laurel counties, including blocked roads, rescue challenges, looting concerns, and the scale of property damage. One member asked how KYTC inspects bridges and infrastructure after disasters to check for hidden damage, and officials said the process depends on the event and can include bridge inspections and checks of tall infrastructure such as light poles. No votes or formal committee actions were taken during the discussion.
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Summary: The committee met with a quorum, passed over House Bill 291, and took up House Bill 479, an act related to dementia training. Rep. Derek Lewis, joined by Rep. Adriel Camel and Mackenzie Wallace of the Alzheimer’s Association, explained that the bill would provide free dementia-specific training for Adult Protective Services workers and help them better recognize and respond to abuse, neglect, exploitation, and the needs of people with dementia. Testimony emphasized the personal impact of dementia on families, the difficulty of navigating diagnosis and care, and the need to connect families to services. A senator asked about the bill’s data and scope, and Wallace explained that the county-level figures reflected Adult Protective Services referrals and diagnosed cases of Alzheimer’s or other dementia among people 65 and older. She also noted broader public health efforts related to brain health and a federal grant effort tied to those issues. Several members spoke in support, including Sen. Denine, who described his father’s recent death after a difficult period with dementia and said the training would help families and workers identify and respond to the disease earlier. After discussion, Sen. Heron moved the bill, the motion was seconded, and the committee voted 6-0 to pass House Bill 479 with favorable expression. The chair said it should pass on the Senate floor. Afterward, the committee briefly reviewed administrative regulation 921 KAR 2:100 and found it reviewed with no questions. A child care block grant item was also presented for information only, with no questions raised. The meeting then adjourned.