Transcript Highlights:

• Tourism and Energy. Madam Secretary, will you call the roll, please? Representative Gu?
• Sloan from the Department of Natural Resources within the Energy and Environment Cabinet.
• Sloan from the Department of Natural Resources within the Energy and Environment Cabinet.
• We have on our website, in the Energy and Environment Cabinet, what we call the energy dashboards.
• <00:18:52.760> committee<00:18:53.000> we<00:18:53.240> adjourned thank youman

Keywords: 00:00 Call to Order and Roll Call 00:30 Energy and Environment Cabinet 18:56 Adjournment, 958, all

Summary: The Tourism and Energy committee received a presentation from Gordon Sloan, Commissioner of the Department of Natural Resources, and Deputy Commissioner David Fields on the Division of Mine Safety. They outlined the division’s structure, saying it has four branch offices in Madisonville, Harlan, Hazard, and Pikeville, with 36 inspectors total, plus administrative staff and several headquarters specialists. They also explained that four additional inspectors are on sick leave or workers’ compensation and will not be backfilled, and confirmed that inspectors work from offices rather than from home. The presentation focused on mine safety duties and staffing needs. Sloan said underground licensed mines must receive six inspections annually, including mine safety analyses, an electrical inspection, roof inspections, and regular inspections of airways, returns, belts, and miner safety equipment. He also described the division’s mine rescue responsibilities, including providing rescue coverage where operators do not have their own teams, maintaining teams within an hour’s drive of mines, and supporting training and certification. The division also conducts 17 training courses and about 8,000 to 9,000 trainings per year. Members were given updated mine and employment figures. Sloan reported 126 licensed mines in 2024 across the branch areas, with 61 active all year and others idle or later abandoned. He said Kentucky had 4,683 miners in 2024, with average employment of 4,509, and noted that the state had gone 34 months without a mining fatality since March 2022. He also said the division provides rescue services for 16 underground rock quarries, three highway tunnels, and three underground military training sites. In response to questions, Sloan said the division does not plan to refill the four vacant inspector positions because staffing is adequate statewide, and he said he would provide additional historical mine data later. The committee took no formal action and adjourned.

Transcript Highlights:

• /c><00:18:29.760> and<00:18:30.080> furniture<00:18:30.480> at to replace mattresses
• and furniture at to replace mattresses and furniture at five<00:18:30.960> resort<00:18:31.360
• I would like to have an additional thank you to our partners, especially the Energy and Environment Cabinet
• the energy<00:29:38.880> and<00:29:39.120> environment<00:29:39.440> cabinet,<00
• :29:40.080> the energy and environment cabinet, the energy and environment cabinet, the finance

Keywords: 00:02 Call to Order and Roll Call 01:44 Approval of Minutes 01:56 Tourism, Arts and Heritage Cabinet 54:59 Adjournment, 958, all

Summary: The House Budget Review Subcommittee on Economic Development, Public Protection, Tourism, and Energy received an update from Kentucky State Parks and the Finance Cabinet on the status of major capital projects funded through recent legislative appropriations. Commissioner Mark Keelin, Deputy Commissioner Chris Perry, and Finance Cabinet/DECA representatives described progress on campground upgrades, utility and broadband improvements, building systems repairs, life-safety work, accommodations and hospitality renovations, pool and beach projects, playgrounds, golf course improvements, marina work, and wastewater upgrades across the state park system. They emphasized that Kentucky has 44 state parks and that the funding has supported completed work and projects still under construction or in design. The presentation highlighted funding tied to House Joint Resolution 76, House Joint Resolution 56, and House Bill 6. Parks reported roughly $72 million invested to date, with 66 projects completed and 17 under construction, including campground renovations at sites such as My Old Kentucky Home, Kin Lake, Carter Caves, Cumberland Falls, and others; broadband projects at several campgrounds; electrical grid resilience work at parks including Kentucky Dam Village and Kin Lake; and completed life-safety upgrades such as lock systems. Officials also noted pool and beach work, ADA improvements, lodge and guest room renovations, marina replacements, and wastewater plant upgrades. DECA said it currently manages 1,335 active capital projects statewide, including 149 for Parks, and credited additional project management capacity and regular coordination meetings for accelerating delivery. Committee members asked for a copy of the presentation and pressed the department for more detailed accounting of House Joint Resolution 56, including how much money remains, which projects are complete, and whether current appropriations are sufficient to finish the listed work. The department also requested a larger maintenance pool appropriation of $40 million for the next budget, arguing that routine and emergency maintenance needs across 44 parks exceed current resources and that preventative maintenance would reduce long-term costs. No votes were taken during the meeting.

Transcript Highlights:

• But I would love to call us to order this morning and I want to thank all of you all for being here.
• Do we have to call the roll? We don't have to call the roll. Okay. Okay.
• <00:30:11.600> And consultants to deliver for us. And consultants to deliver for us.
• And finally<00:30:12.799> uh<00:30:12.880> the<00:30:13.039> cabinet<00:30:13.440
• and from a schedule profile in order<00:46:00.640> to<00:46:00.800> to<00:46:01.119>

Keywords: 00:32 Call to Order and Roll Call 02:30 Road Fund Report 17:22 Approval of Minutes 18:07 High Growth Counties Projects 56:00 Adjournment, 958, all

Summary: The Budget Review Subcommittee for Transportation met without a quorum at first, then later approved the July 15 minutes by voice vote after quorum was reached. The committee heard an update from the Transportation Cabinet on the road fund for FY 2024-25. Cabinet staff reported road fund revenue came in $38.5 million above the enacted estimate, with motor vehicle usage tax receipts setting an all-time high for the fifth straight year. Motor fuels tax revenue was below estimate and down from the prior year, while overall road fund collections totaled $1.86 billion, essentially flat year over year. Staff said the road fund ended FY25 with a $61.6 million surplus, which under the budget bill must be appropriated to state construction. Members discussed the gas tax formula, with Senator Higdon arguing it no longer works well because revenues fall when fuel prices fall, and the chair noting the committee may need to revisit the formula. The committee then received an update on High Growth County projects in the 2024 highway plan. KYTC said $16 million in HGC authorizations had been made, nine projects already had construction funds authorized or were otherwise underway, 12 more were scheduled to be let by the end of 2025 with estimated construction costs above $250 million, and one additional project was expected to be awarded through alternative delivery. The cabinet said it anticipated authorizing the full $450 million appropriated by the General Assembly. Members praised the effort and emphasized the need to get projects to market before the next budget cycle. Jason Sala of KYTC also explained why transportation projects take time, citing planning, design, right-of-way acquisition, and utility relocation as major steps that can delay delivery. He said these processes are complex and require coordination with property owners, utilities, consultants, contractors, and local governments. Eric Pelfrey then briefed the committee on professional and personal service contracts, saying they are used to expand cabinet capacity for design, inspections, right-of-way appraisal, safety, and related work. He reported that authorizations and payments for these contracts have trended upward over the past decade, and that the number of contracts has also increased. In response to questions, Pelfrey said design-build can speed some projects by overlapping steps, but it does not eliminate right-of-way or utility work when those are required; he said KYTC has been using alternative delivery more often, but project complexity still limits how quickly work can move.

Transcript Highlights:

• > to<00:18:04.560> our<00:18:05.200> next<00:18:05.560> agenda<00:18:06.040
• cabinet administrative cabinet and<00:18:14.400> I<00:18:14.560> think<00:18:15.160>
• A<00:18:21.960> new<00:18:22.200> project<00:18:23.040> and<00:18:23.320> two
• Do I have a motion and a second to roll the two new debt issues into one roll call vote?
• and a second to roll the two motion and a second to roll the two new<00:52:32.880> debt<00:52:

Keywords: 0:00:01 Call to Order and Roll Call 0:00:54 Approval of Minutes 0:01:08 Information Items 0:03:18 Postsecondary Institutions - UK 0:18:10 Finance and Administration Cabinet 0:30:13 KY Infrastructure Authority 0:37:30 Cabinet for Economic Development 0:52:11 Office of Financial Management 0:59:20 Remaining 2026 Mtg Dates 1:00:49 Adjournment, 958, all

Summary: The committee first approved the April 27 minutes and then received several informational reports, including University of Kentucky medical equipment purchases, UK’s use of $200 million in Ever funds for a public-private partnership, school district debt issuances, UK’s planned use of construction manager-at-risk delivery on five projects, Kentucky Communications Network Authority capital projects under House Bill 6, and 14 UK lease improvements. Members were told the House Bill 6 item was also being discussed in the Information Technology Oversight Committee and could return later if needed. The main action item was University of Kentucky’s request to approve a $600 million public-private partnership for central plants and utility infrastructure tied to the Chandler expansion. UK said it would shift $200 million from previously authorized restricted funds into the P3, leaving the project financed through private equity and nonprofit debt with no UK or Commonwealth debt. UK representatives said the project is necessary to support 24/7 hospital operations, expand and modernize utility systems, improve redundancy and efficiency, and reduce long-term operating risk. Members asked about the source of the availability payments, which UK said would come from UK Healthcare revenues, and the committee approved the P3 agreement unanimously. The committee also approved a UK lease renewal for a 20,000-square-foot College of Medicine annex near the Bowling Green Medical Center. UK said the lease costs $38 per square foot, or $912,000 annually, and supports medical education expansion in the region, including growth from 120 to 160 students over four years. Members voiced support for the local impact, and the lease passed unanimously. Later, the committee approved a Transportation Cabinet aviation project for two medium box hangars at Capital City Airport, funded by $1,153,000 in federal money and $950,000 from the Aviation Economic Development Fund, which is supported by a 6% jet fuel tax with a $1 million annual cap per company. Members asked about the fund balance, the cap, and airport revenue sources, and staff said the airport also receives entitlement and federal infrastructure funds and earns revenue from hangar rent and fuel sales. The committee then approved two Finance and Administration Cabinet pool projects: a roof and skylight replacement at the Libraries and Archives building and exterior repairs at several state buildings. Finally, the committee approved six Kentucky Infrastructure Authority action items after hearing about one loan increase for the Springfield Wastewater Treatment Plant and five grant reallocations tied to Cleaner Water Program and county allocation pool funds. Members asked why one project approved in 2024 was only now increasing, and KIA explained that design, water division review, environmental review, and bidding can take one to two years. KIA also reported additional no-action items, including a Brandenburg water grant split among two projects and 17 Kentucky Waters projects provided for information. The meeting ended with approval of the action items and no further action on the informational grants.

Transcript Highlights:

• :18.440> definition<00:14:19.279> to<00:14:19.440> call and you got to have a definition
• to call and you got to have a definition to call a<00:14:19.880> site<00:14:20.120> shovel
• that have been awarded<00:18:38.640> and<00:18:38.799> now<00:18:39.000> I<00:18
• 00:18:53.799> that<00:18:53.919> the<00:18:54.120> project<00:18:54.480> and<
• that the project and program is working<00:18:55.559> and<00:18:55.640> there's<00:18:

Keywords: 00:01 Call to Order and Roll Call 00:34 Economic Development Cabinet 27:51 Adjournment, 958, all

Summary: The committee met without a quorum, so the minutes from the last two meetings were not approved. Secretary Noel of the Cabinet for Economic Development then gave a broad overview of the cabinet’s work and an update on the Kentucky Product Development Initiative (KPD), with Deputy Secretary Katie Smith and General Counsel Matt also present. He said the cabinet’s strategy is to focus on high-wage job creation, especially in automotive transformation, business and financial professional services, tourism, logistics, agri-tech, aerospace, and other high-tech sectors, while also supporting small and medium-sized businesses and existing employers. Noel highlighted several program results and examples, including average incentivized wages approaching $27 per hour, 877 jobs and $346 million in investment through hub operations, $90 million through Commonwealth Ventures, help for hundreds of companies through the Kentucky Intellectual Property Alliance, work with 220 companies through the Kentucky Science and Technology Council, nearly 3,000 students in Advanced Kentucky, and more than 1,100 participants in Kentucky Valor. He also cited 35,000 workers trained through Bluegrass State Skills, 177 businesses helped by the small business tax credit, and 77 entertainment incentive transactions totaling about $200 million and 7,400 jobs. On the grant side, he said the cabinet had approved 155 projects under a federal grant program, committing $99 million, with outreach aimed at smaller communities and all 120 counties. The main focus of the second half was KPD. Noel described it as a program that requires more than basic due diligence, emphasizing community readiness, local vision, title and mineral-rights review, sewer validation, and consultant review. He said 109 projects had been awarded in the earlier rounds, and in 2024 there were 45 requests for information seeking $81 million against $35 million in available funding, showing strong demand. He also said the cabinet has worked with local economic developers through five regions aligned with area development districts, and that the secretary, deputy secretary, or commissioner of business development must attend the regional meetings, with 100% attendance reported for the key three last year. In response to questions, he said Jefferson County’s lack of KPD projects so far likely reflects where local land and development strategies are in the process rather than a lack of interest, and he said the cabinet has not heard that Kentucky’s occupational safety and health rules are clearly helping or hurting competitiveness, though he offered to look into it further.

Transcript Highlights:

• We'll now call the meeting to order. Madam Secretary, will you please call the roll?
• <00:13:13.519> have<00:13:13.680> to teachers and you know and we have to teachers and
• Do I have a motion and a second to roll the seven EDF grants into one roll call vote?
• Before we go on to the five SFCC grants, do I have a motion and a second to roll them into one roll call
• /c><00:30:07.760> a<00:30:07.919> motion<00:30:08.480> and<00:30:08.960> a

Keywords: 00:09 Call to Order and Roll Call 00:42 Approval of Minutes 01:07 Information Items 04:05 Lease Rpt - Finance and Administration Cabinet 18:59 OFM - Economic Development Fund Grants 25:42 OFM – KY Housing Authority 31:30 Remaining 2025 Meetings 33:26 Adjournment, 958, all

Summary: The committee met with quorum, approved the September meeting minutes, and received a set of information reports on capital projects, debt, school district bond issues, UK and KCTCS asset preservation projects, and the Louisville Arena Authority’s financial report, with the latter noted as lengthy and expected to be discussed further in person in December. The committee also heard a Finance and Administration Cabinet lease report covering three leases: a temporary lease for the Cabinet for Health and Family Services in Louisville due to ongoing maintenance and safety issues at its current site, a Department of Juvenile Justice lease in Hardin County for a day-treatment/alternative school program, and a Warren County lease renewal. Members questioned the Hardin County lease about the higher rate and limited competition; agency staff explained the specialized school setting, transportation and program requirements, and the difficulty of attracting bidders for alternative-school space. The lease package was approved after roll call. The committee then considered seven economic development grants: four EDF grants and three KPDI grants. The projects included infrastructure for Allen County’s industrial park, flood-related repairs for Weddington Plaza in the Big Sandy area, an Owensboro manufacturing expansion for Mscan America, a new Louisville manufacturing facility for Anthro Energy, a Henderson due-diligence study, a Paducah spec building, and utility extensions for the Riverbend site in Carrollton. Staff said the projects had been approved by KEFA and recommended by the relevant cabinet leadership, and the committee approved them by roll call. Finally, the committee reviewed a new Kentucky Housing Corporation conduit bond issue for about $43 million for 233 Louisville housing units, which was approved. It then took up five SFCC debt issues together: new money for an Edmonson County elementary school and Knox County middle school gym improvements, plus refundings for Callaway, Hardin, and McCracken counties. Members raised concerns that the refundings were bundled together and that some did not appear to meet a newly referenced 3% net present value savings guideline, but the package was still approved on a 5-2 vote. The meeting ended with calendar updates, including a November 20 meeting at noon and a December 16 meeting featuring the Yum Arena presentation, followed by adjournment.

Transcript Highlights:

• <00:18:08.720> And<00:18:08.960> one<00:18:09.120> I<00:18:09.360> think<
• And one I think we need to take<00:18:10.080> action<00:18:10.400> on.
• And<00:30:24.080> I<00:30:24.240> would<00:30:24.320> be<00:30:24.480> happy<
• /c><00:30:24.640> to<00:30:24.880> answer<00:30:25.120> any And I would be happy
• > to is required and we do have an option to is required and we do have an option to roll<00:36

Keywords: 00:01 Call to Order and Roll Call 00:49 Approval of Minutes 01:05 Information Items 02:39 Project Rpt from Finance and Admin Cabinet 23:40 Lease Rpt from Finance and Admin Cabinet 26:30 OFM Rpt – KY Infrastructure Authority 36:07 OFM Rpt – Econ Dev Cabinet 43:40 Office of Financial Mgmt 50:18 Remaining 2025 Mtg Dates 50:50 Adjournment, 958, all

Summary: The committee first handled routine business, including approval of the June meeting minutes and receipt of several correspondence and information reports. Those reports covered quarterly capital project status updates from state agencies and postsecondary institutions, lease modifications, asset preservation projects, school district debt issuances, and Kentucky Communications Network Authority budget history materials. Members also raised questions about a long-open stream mitigation account and were told the funds are fee-in-lieu stream mitigation monies administered through Fish and Wildlife, with staff promising to follow up on the specific project. The committee then reviewed and approved several capital project actions. These included a new Camp Oralis dining hall project for the Department of Fish and Wildlife Resources, explained as a reauthorization because the funding split changed to 64% federal and 36% agency funds; an appropriation increase for the Shelbyville armory addition due to higher construction costs and security requirements; and emergency repair projects for Fort Boonesboro flood remediation and the Kentucky State Police Supply Branch fire damage. Members also approved a tenant improvement fund request for parking garage safety improvements at the Mayo Underwood Building. The Office of Financial Management presented three Kentucky Infrastructure Authority items and one Cleaner Water Program reallocation. The loans included a Shepherdsville sewer/drainage project and two Auburn water and lead service line projects; the grant reallocation involved unused Cleaner Water Program funds, with staff emphasizing that all ARPA-funded cleaner water dollars must be spent by December 31, 2026 or returned. After discussion, the committee approved the package. The committee also approved six Economic Development Fund grants, and the Cabinet for Economic Development began presenting the first six KPDI projects, though the transcript cuts off before those project details were completed.

Transcript Highlights:

• and praise to I wanted to pay tribute and praise to our<00:04:57.280> crews,<00:04:57.919>
• included in response to our memorandum of agreement with the Energy and Environment Cabinet, which requires
• <00:10:27.839> cabinet<00:10:28.959> uh<00:10:29.760> which and environment
• cabinet uh which and environment cabinet uh which requires<00:10:30.480> a<00:10:30.720> sustained
• back<00:56:02.640> to<00:56:03.599> grading<00:56:04.000> and >> I

Keywords: 00:03 Call to Order and Roll Call 00:57 Capital Projects and Highway Plan 56:11 Adjournment, 958, all

Summary: The House Budget Review Subcommittee on Transportation met to hear the Kentucky Transportation Cabinet’s presentation on the governor’s 2026 capital projects budget and recommended highway plan. Secretary Gray and cabinet staff first thanked KYTC snow and ice crews, local road departments, first responders, utility workers, and others for their work during a major winter storm, then outlined the capital budget request. The cabinet said its facilities are aging, with about 35% at or beyond useful life, and that limited road fund revenues led it to focus mainly on maintenance, maintenance pools, aircraft maintenance, environmental compliance, AASHTOWare upgrades, state park road maintenance, truck parking, and reauthorization of several projects, including airport work and road projects. The cabinet said the governor’s budget includes about $22.8 million in state funds for the capital budget over the biennium, plus carry-forward language for maintenance pools and project reauthorizations to avoid losing federal funds. Members asked about repeated reauthorizations, cost increases, and whether projects should be restarted as new requests after carrying over for multiple budgets. The cabinet responded that budget office policy generally allows only one reauthorization before a project must be resubmitted, and said many delays are due to acquisition or other project issues. Members also questioned the basis for increased-cost line items and the $5 million request for commercial truck parking; cabinet staff said they could provide original project cost details and that many increases are inflationary, while the truck parking project is expected to use federal funds and is a cabinet priority. The committee also discussed the decline in road fund receipts, which the cabinet attributed largely to lower motor fuels tax revenue. The presentation then shifted to the 2026 recommended highway plan. Officials said the plan covers more than 1,300 projects over six years and anticipates about $9.5 billion in federal and state funding. They said the plan is intended to maintain existing assets, advance long-term priority projects, and honor prior commitments, including the Mountain Parkway, the Brent Spence Companion Bridge, and the I-69 Ohio River Crossing. About 40% of plan funds are dedicated to existing pavements, bridges, and guardrails, and officials cited a 61% rise in highway construction costs from 2020 to 2025 as a major challenge. To help offset those pressures, the cabinet is seeking $125 million from the budget reserve trust fund for the Brent Spence Bridge and release of a federal grant condition tied to the already appropriated $150 million for the I-69 crossing. No votes were taken at the meeting.

Transcript Highlights:

• The meeting was called to order. Madam Secretary, will you call the roll? Senator Girdler here.
• on the justifications submitted by the Energy and Environment Cabinet pursuant to House Bill 6.
• and environment cabinet department for and environment cabinet department for natural<00:02:33.959
• do uh do I have a motion and second<00:12:45.399> to<00:12:45.480> roll<00:12:45.760><
• <00:18:18.840> and<00:18:18.960> the<00:18:19.080> design<00:18:19.440> and

Keywords: 00:01 Call to Order and Roll Call 00:30 Approval of Minutes 00:59 Information Items 03:34 Finance and Admin Cabinet 12:31 KY Infrastructure Authority 21:47 Office of Financial Mgmt 23:27 Adjournment, 958, all

Summary: The committee first handled informational reports on several bond and lease matters, including school district and board of education debt-service items, upcoming revenue bond issues in Henderson and Jessamine counties, and three advertised lease-space requests for state agencies. Members also reviewed prior lease transactions that had not been approved in November and December; the Finance and Administration Cabinet later canceled and rebid the Harlan County lease and moved ahead with the Perry County lease modification. Additional information items included a Kentucky Communications Network Authority quarterly capital projects report and Eastern Kentucky University asset preservation revisions. The committee then heard from Deputy State Budget Director Janice Thomas on four action items. She reported a $2.85 million USDA-funded renovation at Kentucky State University’s Betty White Building, a $294,000 increase for the Kentucky School for the Deaf’s Middleton Hall renovation, and a $6.1 million restricted-funds scope increase for the KCTCS Science Building Expansion in Elizabethtown. Members asked about how often the statutory 15% increase authority is used for school dormitory and cottage projects and about the competitiveness of construction bids; Thomas said bids are typically competitive but recent estimates have been difficult because of higher material and equipment costs. The committee approved the three action items unanimously and also received a no-action report on a $3.918 million Corrections project to repair and replace the KCIW kitchen drain line. Next, the Kentucky Infrastructure Authority presented seven loans and grants, all of which the committee approved unanimously. The package included sewer and water projects for Frankfort, Sturgis, Scottsville, Morganfield, Western Pulaski County Water District, and Springfield, plus an emergency $5.487 million Kentucky Waters grant for Eddyville after a catastrophic sewer plant failure and weather-related emergency declarations. The projects covered wastewater interceptor and treatment upgrades, sewer collection rehabilitation, water transmission main installation, and planning/design work, with loan terms ranging from five to 30 years and interest rates from 0.5% to 2.25%. Finally, the committee considered a $38.4 million Kentucky Housing Corporation conduit issuance for a 322-unit multifamily rental project in Jefferson County. A member asked how the committee participates in the transaction, and staff explained that it is a conduit issuance and not state debt. The committee then moved to approve the issuance.

Transcript Highlights:

• <00:26:26.799> 4526 ft to 4526 ft to 4526 ft<00:26:29.600> and<00:26:30.000> and
• We can move these to a roll call, the four KIA loans and..."
• We can move these to<00:27:30.799> a<00:27:31.039> roll<00:27:31.279> call.
• <00:27:33.760> and To a roll call, the four KIA loans and the six Cleaner Water Program grant
• Do I have a motion and a second to roll these four debt issues into one roll call vote?

Keywords: 00:02 Call to Order and Roll Call 00:45 Approval of Minutes 01:01 Information Items 06:25 Project Rpt from Postsecondary Institutions-KCTCS 10:50 Project Rpt from Finance and Admin Cabinet 18:08 Lease Rpt from Finance and Admin Cabinet 27:12 Rpt from OFM – KY Infrastructure Authority 33:56 Rpt from OFM – CED EDF Grants 47:20 Rpt from OFM – Office of Financial Mgmt 56:53 Adjournment, 958, all

Summary: The committee first handled routine business, including approval of the February meeting minutes and several information items. Those items covered university equipment purchases, school district and transportation-related debt issuances, Northern Kentucky University’s planned construction-manager/general-contractor delivery method for the medical examiner/crime lab relocation project, a lease-space advertisement, postsecondary asset preservation allocations, and lease-law compliance reports. Members then discussed the Northern Kentucky crime lab project in more detail; staff explained that the memorandum of agreement would cover the construction portion while the lease would cover operations, and members were told the project should move forward without procurement problems. The committee approved a Kentucky Community and Technical College System project to modify the fire academy maintenance building after the related dormitory project was set aside because of major cost overruns. KCTCS said the dormitory would be about $3 million over budget, so it would not be bid; instead, the maintenance building would be expanded to add showers and restroom/locker facilities, bringing that project from $2 million to about $3.2 million. The committee also approved a Transportation Cabinet project for the Hardin County I-65 southbound commercial motor vehicle station relocation, with members asking about the estimate, the lack of a direct prior example, and the fact that the loadometer equipment itself would be purchased separately and was not included in the construction estimate. Finance and Administration Cabinet lease items were then considered. The committee approved a Department of Public Advocacy lease in Christian County and a Transportation Cabinet vehicle regulation lease in Kenton County, both negotiated down from initial asking prices and both including utilities. Two lease modifications were reported without action: a Department of Revenue fit-up in Jefferson County and an expanded vehicle regulation lease in Adair County. Members also approved a package of Kentucky Infrastructure Authority items, including four loans and six Cleaner Water Program grant reallocations, covering sewer and water projects such as MSD’s Patty’s Run flood pumping station, Paducah-McCracken County’s wastewater treatment plant, Mount Washington’s lift station replacement, and Eminence’s wastewater plant expansion. Finally, the committee heard a batch of Kentucky Product Development Initiative economic development grants and approved the action items in one vote. The projects included due diligence and infrastructure work for industrial and site-development projects in multiple counties, with local match requirements and KEDFA approvals described for each. The committee also received three line-item water grants from House Bill 1 that required no action, and the meeting ended after the grant presentations and approvals.

Transcript Highlights:

• them and so really to talk uh support them and so really to talk about<00:21:05.360> the<00:21
• > not<00:30:34.480> have<00:30:34.640> to<00:30:34.880> pay<00:30:35.159>
• back<00:30:35.600> Medicaid<00:30:36.600> to fund not have to pay back Medicaid
• to fund not have to pay back Medicaid to pay<00:30:37.120> for<00:30:37.360> it<00:30:
• c><00:30:49.960> more<00:30:50.240> question<00:30:50.640> and<00:30:50.799>

Keywords: 00:00 Call to Order and Roll Call 00:37 KY Horse Racing and Gaming Corp. 08:32 Cabinet for Health and Family Services 35:28 Adjournment, 958, all

Summary: The subcommittee heard an update from the Kentucky Horse Racing and Gaming Corporation on sports wagering revenue allocations and problem gaming funding. KHRGC reported that in fiscal year 2024, about $34.4 million was deposited to the pension fund and about $931,000 to the problem gaming assistance fund; fiscal year 2025 to date, the totals were about $18.5 million and $556,000, respectively, bringing all-time problem gaming funding to about $1.48 million. Members also discussed wagering volume, with KHRGC stating Kentucky had about $3.5 billion in wagers from September 2023 through December 2024 and about $1.4 billion in fiscal year 2025 to date. KHRGC explained that it tracks the funds sent to CHFS and the self-exclusion list, but does not track the number of people seeking help or the outcomes of those calls. The Division of Mental Health then described how the problem gambling assistance account is used. Patty Clark and Sarah Cooper said the fund supports education, counseling, public awareness, counselor certification, and treatment-related costs, with $50,000 reserved for administrative expenses. They said the department has spent the last 18 months establishing criteria, funding standards, performance measures, monitoring, and application procedures, and that it issued notices of funding opportunity in October. They reported about 1.49 million in the fund through the end of January, with awards including support for the Kentucky Council on Problem Gambling conference, a public awareness campaign by Project Ricochet, and a youth-focused campaign by Shaunie Transformation Youth Coalition. Testimony also focused on the scope of problem gambling in Kentucky and how the helpline works. The department said fewer than 10 clinicians in Kentucky are specifically certified in problem gambling, though all addiction clinicians can provide services, and estimated about 165,000 adults show problem gambling behaviors, with 47,000 to 64,000 potentially meeting criteria for a gambling disorder. They said helpline calls rose to about 3,240 in 2024, but only about 25% were from people seeking help, with most callers seeking information about online wagering. Members asked about anonymity, follow-up, co-occurring alcohol or drug issues, and whether the fund should reimburse Medicaid or directly cover treatment costs. The presenters said calls are anonymous, outcomes are not tracked unless callers follow up, and the program is currently focused on building provider capacity and targeted outreach rather than direct reimbursement or a statewide campaign.

Transcript Highlights:

• And I call the second meeting to order. Uh, please make sure our phones are on silent.
• :00.280> the<00:18:00.440> backup<00:18:00.960> to<00:18:01.160> to then
• to urge<00:30:20.920> [clears throat]<00:30:21.160> you<00:30:21.280> to<00:30:
• and<00:30:39.280> uh and and uh and and uh we're<00:30:40.080> just<00:30:40.240><
• <00:30:42.240> to<00:30:42.520> to<00:30:42.760> make<00:30:42.960> sure<

Keywords: 00:01 Call to Order and Roll Call 01:32 Approval of Minutes 01:46 Public Protection Cabinet 19:05 Tourism, Arts and Heritage Cabinet 33:14 Adjournment, 958, all

Summary: The Budget Subcommittee met without a quorum at first, then approved the minutes once a quorum was reached. The first presentation was from the Department of Housing, Buildings, and Construction within the Public Protection Cabinet. Commissioner Max Fuller and Deputy Commissioner David Moore reviewed the department’s licensing structure, noting about 50 license types and roughly 42,000 active licenses, with most tied to plumbing, HVAC, and electrical work. They compared Kentucky’s fees and requirements with neighboring states and said Kentucky is generally in line or slightly below surrounding states when local and contractor licensing requirements elsewhere are considered. The department also described staffing and inspection pressures. Officials said boiler inspections have a measurable backlog, with about 18% of state-jurisdiction boilers and pressure vessels past due statewide and a higher percentage in Jefferson County. They said building code plan review turnaround has risen from about 30 days to roughly 33–35 days, and that some areas are struggling to maintain same-day plumbing inspections and three-day HVAC inspections. Members asked whether the agency could handle increased housing construction, especially in rural areas; the department said it had requested additional plumbing staff and a plan reviewer, particularly for the Bowling Green/Warren County area, and noted that electrical inspectors are stretched across the state and are also pulled into disaster response work. The committee then heard from Kentucky Venues and the Kentucky State Fair Board on the Kentucky Exposition Center renovation and related operations. David Beck, board chairman David Williams, CFO Tony Shrek, and others said the project is progressing ahead of schedule, with keys to the new building expected in December and the facility already booked for future events. They reported strong tourism and economic impact, including record activity at the Exposition Center and downtown convention center, and said the Farm Machinery Show and other events continue to drive demand. Members asked about budget status, and the presenters said inflation, delayed access to funds due to the RFP/design process, and added costs have left them short of money to finish all planned work. They identified phase three funding needs, including food and beverage service improvements and completion of Freedom Hall seating, and said they are considering bringing food and beverage operations back under their control to improve efficiency and revenue. The meeting ended with no formal votes on the presentations and an announcement that the committee would meet again the following Tuesday.

Transcript Highlights:

• secretary to please call the roll. secretary to please call the roll.
• > have<00:18:18.600> been<00:18:19.400> more<00:18:20.200> and<00:18:20.760
• So, we're we're doing our<00:18:40.480> best<00:18:40.800> to<00:18:40.880> judge
• c><00:30:42.600> were<00:30:42.800> 89<00:30:43.280> counties<00:30:43.800> and
• All<00:30:50.760> right,<00:30:51.040> and<00:30:51.200> I<00:30:51.280> think

Keywords: 00:05 Call to Order and Roll Call 01:55 Bridge Improvement Program 18:56 County Priority Projects Program 38:10 Transportation Alternative Program 51:47 Adjournment, 958, all

Summary: The committee met for the first interim meeting of the 2025 Budget Review Committee on Transportation and heard from Bobby Jo Lewis, commissioner of Rural and Municipal Aid at the Kentucky Transportation Cabinet. She reviewed the new County City Bridge Improvement Program, created in the 2024 regular session, reporting that phases one and two are complete, 45 bridges have been funded so far, and about $18.45 million has been authorized. She said roughly $6.549 million remains for phase three in the current fiscal year, with about $26.445 million in bridge applications still pending. For fiscal year 2026, the program will again have $25 million and will use four application phases. She also described a training resource, Local Bridges 101, and said a new executive advisor, Greg Meredith, has been brought in to help with the bridge program. Members asked how rollover applications would be handled, whether they would be re-evaluated with new applications, how the program would account for bridge longevity and load posting, and how isolated communities would be prioritized. Lewis said applicants not funded in FY25 would be contacted and could choose to roll their applications into FY26, and all applications would be evaluated together at the end of each phase. She said preservation projects are assessed for how much they extend a bridge’s life, and isolated community access bridges or closed bridges with no detour access receive priority. She also said the department aims for equitable distribution across regions and plans to produce a map showing where funds have been awarded. Lewis then turned to the County Priority Projects Program and the Local Assistance Road Program established in House Bill 546 and related resolutions. She said the application cycle opened June 1 and closes October 1, with 106 memoranda of agreement being prepared for awards in House Joint Resolution 46. She described updated application and reporting forms, a scoring matrix, and a County City Pavement Evaluation Manual used to rate projects based on preservation of assets, average daily traffic, recent improvements, safety, cost, and district priority. She said projects must be rehabilitation projects designed to restore the original condition of the road, cannot exceed $500,000, and must use local match percentages tied to the economic development grant program formula. She also reported on funding status for prior road projects, including completed, partially completed, pending, and underrun amounts that may be reauthorized. Committee members asked about photo documentation, online access to project materials, how to measure whether projects truly restore roads to original condition, and what happens when project costs exceed estimates. Lewis said the department is still working on how best to store and share the large volume of photos, and that projects are certified through district offices and local sign-off after completion. She said overages are the responsibility of the applicant because the state does not have additional money beyond the awarded amount. No formal votes were taken during the discussion.

Transcript Highlights:

• And it makes it hard to<00:18:25.039> explain<00:18:25.760> why<00:18:26.080> large<
• and put them on the line to to there and put them on the line to to keep<00:36:58.560> our<00
• biders<00:56:34.240> to<00:56:34.720> respond<00:56:35.119> to<00:56:35.839>
• and<00:56:36.079> it work for the biders to respond to and it work for the biders to respond
• to and it actually<00:56:36.799> received<00:56:37.359> 42<00:56:37.920> bids.

Keywords: Call to Order and Roll Call- 00:00:01 Staff Report on Statewide Emergency Responder Voice System- 00:01:09 Kentucky State Police and Finance and Administration Cabinet Response to Staff Report- 00:48:37 Adjournment-01:34:512, 958, all

Summary: The committee heard a staff report on Kentucky’s statewide emergency responder voice system (SERVS), a multi-phase project intended to improve interoperable radio communications for first responders. Staff said Kentucky State Police did not appear to have violated statutes or regulations, but the project lacked an overall master plan, clear milestones, and consistent documentation, which contributed to delays, spending issues, and deployment problems. The report recommended updating the Kentucky Field Operations Guide to reflect SERVS and noted that the project has been funded in phases since 2018, with appropriations totaling roughly $216 million across 2018, 2020, 2022, and 2024, while about $109 million had been spent by the end of fiscal year 2025. The report raised concerns about project sequencing and oversight. Staff said most spending was concentrated in special mobile equipment, with Motorola accounting for about two-thirds of all SERVS expenditures and the top four vendors making up 81 percent of spending. They also said a sample of Motorola payments suggested possible late payments, though they could not confirm whether interest was paid. Staff criticized the use of master agreements for a project of this size, the lack of a centralized ledger, and the absence of a documented timeline or risk mitigation plan. They recommended stronger procurement and planning requirements, including possible legislative changes requiring approved master plans for large capital projects and additional funding conditions tied to SERVS master agreements. Land acquisition and deployment progress were identified as major bottlenecks, especially in Eastern Kentucky. Staff said the project began in western Kentucky using existing tower sites, but the remaining work is concentrated in harder-to-acquire areas, with more than 95 percent of new towers still incomplete. They said the Division of Real Properties did not begin formal contract work on acquisition until October 2024, despite earlier coordination, and recommended earlier consultation on future projects. Staff also noted that the Kentucky Wireless Interoperability Executive Committee had not been active in oversight, and survey results showed limited awareness and involvement among first responders. Committee members agreed that the lack of an initial implementation plan and the continuing need for funding reflected broader planning problems, and they discussed the need for a clearer end-to-end game plan rather than continuing to fund the project without a defined completion path.

Transcript Highlights:

• c><00:18:42.320> curb<00:18:42.640> cuts<00:18:42.799> that to both.
• from the street<00:18:46.799> to<00:18:47.120> the<00:18:47.280> sidewalk.
• <00:18:47.840> So,<00:18:48.160> this<00:18:48.320> is street to the sidewalk
• Do I have a motion and a second to roll the action items into one roll call vote?
• The<00:30:00.240> project<00:30:00.480> to<00:30:00.720> be<00:30:00.799> funded

Keywords: 00:05 Call to Order and Roll Call 00:34 Approval of Minutes 00:56 Information Items 05:40 Project Rpt from Postsecondary Institutions 14:00 Project Rpt from Finance and Administration Cabinet 20:40 Lease Rpt from Finance and Administration Cabinet 24:53 Rpt from OFM – Ky Infrastructure Authority 40:38 Office of Financial Management 47:39 Remaining 2025 Meeting Dates 48:05 Adjournment, 958, all

Summary: The meeting began with routine business, including a quorum call, approval of the April minutes, and several informational reports. Those information items covered upcoming general obligation debt for Bullitt, Jefferson, and Warren counties; Kentucky Communications Network Authority updates tied to House Bill 6; Eastern Kentucky University asset preservation reallocations under House Bill 1; and School Facilities Construction Commission debt activity, including 20 prior debt issues totaling about $386 million with roughly 85% locally supported debt service and 15% SFCC participation. Members then discussed concerns about a Kentucky Communications Network Authority project, focusing on a reported discrepancy between an appropriation of $12.927 million and an apparent payment of about $8.532 million on a project with a cost estimate of $12.449 million. Several members asked for more detailed written information before the next Capital Projects meeting, noting that a lawsuit is pending and that they wanted to better understand the basis for the request and the spending to date. The committee also heard and unanimously approved a donor-funded Northern Kentucky University project to renovate tennis courts, with possible pickleball additions, after questions about why approval was needed, the project’s estimated $3 million cost, and its expected minimal ongoing operating costs. The committee next received Kentucky State University pool allocation reports for three projects: a $2 million McCullen Hall renovation, a $1.75 million walkway and miscellaneous repairs project, and a $2 million academic services building roof-and-window project. A member asked specifically about curb cuts and accessibility in the walkway project, and Kentucky State said existing curb cuts would be repaired and additional accessibility issues would be reviewed by engineers. The lease report from the Finance and Administration Cabinet included one lease modification requiring approval for the Attorney General’s office in Franklin County and one no-action modification for the Board of Cosmetology; the Attorney General lease was approved by roll call vote. Finally, the Kentucky Infrastructure Authority presented five loans and 37 grants, with action taken on the loan and grant items. The loans included a Hodgenville wastewater treatment plant increase, a Grant County sewer district treatment plant loan, a Mount Sterling dam rehabilitation loan, and two Morganfield drinking water loans for granular activated carbon treatment, one with full principal forgiveness. Members asked about the Morganfield project’s purpose and were told it was a remediation effort for a water-quality concern, and they also raised questions about engineering fees, which KIA said are compared against a U.S. Rural Development fee schedule that is industry accepted. The committee also reviewed cleaner water program grant reallocations from county allocation pools.

Transcript Highlights:

• repairs uh envelopes, modifications and repairs uh to<00:18:04.240> create<00:18:04.720> an
• And<00:30:00.559> do<00:30:00.799> I<00:30:00.960> hear<00:30:01.200> a<00
• And do I hear a motion on rolling those And do I hear a motion on rolling those action<00:30:03.760
• Pursuant<00:30:34.000> to<00:30:34.159> KRS<00:30:34.880> 224A100, Pursuant to KRS
• to at least win 30 games a year<00:59:33.200> and<00:59:33.520> lose<00:59:33.839>

Keywords: Reuploaded tor restore the roll call and minutes approval 0:00:01 Call to Order and Roll Call 0:00:20 Approval of Minutes 0:00:50 Information Items 0:01:39 Project Rpt from Eastern KY University 0:06:54 Lease Rpt from University of KY 0:11:33 Project Rpt from Finance and Admin Cabinet 0:18:50 Lease Rpt from Finance and Admin Cabinet 0:29:33 OFM – KY Infrastructure Authority 0:38:27 OFM – Debt Issues 0:46:27 Louisville Arena Authority 1:24:30 Adjournment, 958, all

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:

• back to just a second So, let's circle back to just a second to<00:18:01.360> what<00:18:01.840
• And so that<00:18:50.240> dropped<00:18:50.799> because<00:18:51.200> of<00:18:51.440
• to debt which caused your interest<00:18:57.280> to<00:18:57.440> be<00:18:57.600> lower
• >> And<00:18:59.120> so<00:18:59.280> you<00:18:59.440> rec<00:18:59.840><
• $792,200 transferred from the Energy and Environment Cabinet Office of Energy Policy.

Keywords: 0:00:02 Call to Order and Roll Call 0:00:30 Approval of Minutes 0:00:49 Information Items 0:01:54 Louisville Arena Authority 0:24:50 Project Rpt from Postsecondary Institutions - MSU 0:26:35 Project Rpt from Finance and Admin. Cabinet 0:37:52 Lease Rpt from Finance and Admin. Cabinet 0:40:13 Rpt from OFM – KIA 0:56:00 Rpt from OFM – EDF Grants 0:58:45 Rpt from OFM – OFM 1:01:46 Adjournment, 958, all

Summary: The committee first handled routine business, including a roll call, approval of the prior meeting minutes, and a set of informational reports. Those reports covered University of Louisville research equipment purchases, a Kent County school district debt issue for elementary school renovations, the University of Kentucky’s planned use of construction management risk for a new engineering building, APA certification reports for underwriter and bond counsel selection committees, and a KCNA status report on infrastructure upgrades and purchases. The main presentation was an informational update from the Louisville Arena Authority. Board representatives said the arena was created to drive economic development and reported about $1.4 billion in economic impact from 2010 to 2013. They explained the authority’s financial structure, including arena operating revenues, TIF revenues, debt service, and a long-term capital plan for major repairs and replacements. Members questioned the low net revenue figures, the long timeline before TIF revenues are projected to exceed debt service, the size of capital expenditure spikes, and the University of Louisville revenue-sharing arrangement. The authority said the $2.42 million annual UL payment is fixed under a 2017 refinancing agreement, while other amounts vary with ticket sales and related revenues. They also said the COVID-era state and Metro funds, combined with authority cash, were used to prepay debt and reduce interest, lowering the debt service schedule. The committee then considered and approved a new capital project for a new HVAC system for the student wellness center pool area. The project, presented by university staff, was approved by the board and required committee action. The committee took a roll call vote, and the project passed unanimously. Finally, Janice Thomas of the state budget office presented two tourism, arts, and heritage cabinet grid resilience projects at Kincaid Lake State Resort Park and Kentucky Down Village State Resort Park. Each project costs $7,834,600 and is funded mostly by a federal grid resilience grant, with the remainder from state utility infrastructure replacement funds and energy policy funds. Staff explained that the projects will move park electrical service ownership and maintenance to regional utilities, allowing the state to exit the infrastructure-management role while continuing to pay utility bills through normal metering. The committee approved the action item by voice vote.

Transcript Highlights:

• with the energy and environmental<00:36:32.800> cabinet<00:36:33.640> on<00:36:33.800>
• In closing, an additional thank you to all of our partners, especially the Energy and Environment Cabinet
• energy of our partners especially the energy and<00:48:40.960> environment<00:48:41.640> cabinet
• <00:48:42.280> and<00:48:42.480> West and environment cabinet and West and environment
• > so<00:56:08.440> and<00:56:08.599> and<00:56:08.760> we community there

Keywords: Reuploaded to restore full meeting 00:13 Call to Order and Roll Call 01:14 Approval of Minutes 01:40 Tourism, Arts, and Heritage Cabinet 27:44 Department of Parks 59:23 Adjournment, 958, all

Summary: The committee met for its second Budget Review on Economic Development, Public Protection, Tourism, and Energy and first approved the minutes from the prior meeting. Members then heard a presentation from the Tourism, Arts, and Heritage Cabinet and the Kentucky Department of Tourism on the 1% tourism marketing fund. Witnesses explained that the fund supports statewide tourism promotion, advertising, research, regional marketing, and matching grants to local tourism commissions, and that it cannot be used for capital construction. They reported that the General Assembly and governor increased appropriations in the 2024 session, adding $3 million in FY25 and $7 million in FY26, and set aside funding for the Kentucky Mountain Regional Recreation Authority, the National Quilt Museum, and the Southern Kentucky Tourism Initiative. Tourism officials emphasized that Kentucky tourism is a major economic driver, citing 2023 figures of $13.8 billion in economic impact, 79.3 million visitors, $9.7 billion in direct spending, more than 95,000 jobs supported, and nearly $1 billion in state and local tax revenue. They said the department now uses targeted digital and over-the-top advertising in selected domestic and international markets, with 62% of media placements digital and 80% of the budget spent out of state. Members asked about market selection, how the department measures return on investment, and what attracts visitors from places such as Dallas, Orlando, Toronto, and Washington, D.C.; officials said research shows a mix of family visits, outdoor recreation, and varied Kentucky offerings, and that 81% of overnight visitors are repeat visitors. They also discussed the potential impact of tariffs and trade tensions on bourbon-related tourism and international visitation, especially from Canada, and officials said they were monitoring the situation with U.S. Travel Association and Brand USA. The committee then heard from Kentucky State Parks officials on capital projects funded through HJR 76, HJR 56, and House Bill 6. They said they are providing quarterly project reports and have been meeting regularly with the Finance Cabinet’s engineering and contract staff. The presentation focused on campground utilities, broadband, and structural upgrades, including $40 million for campground improvements across the park system, with completed bathhouse renovations at Barren River and Nolin Lake and additional projects underway or in planning. Officials said the work is based on camper survey feedback, such as requests for better Wi-Fi, sewer and electric upgrades, frost-free spigots, and improved site layouts, and noted that the My Old Kentucky Home campground project is under construction and expected to be completed by spring 2026.

Transcript Highlights:

• We'll call the meeting to order.
• > I'm<00:30:02.240> going<00:30:02.320> to<00:30:02.480> go<00:30:02.559>
• I'm going to go to uh Senator From Thank<00:30:07.039> you<00:30:07.200> for<00:30:07.520
• :30:48.480> lease<00:30:49.440> to<00:30:49.679> the<00:30:49.840> center
• Motion made and seconded to go ahead. Madam Secretary, will you call the roll?

Keywords: 0:00:07 Call to Order and Roll Call 0:00:47 Approval of Minutes 0:01:05 Correspondence and Information Items 0:54:15 Lease Rpt from Postsecondary Institutions 0:56:19 Project Rpt from Finance and Administration Cabinet 1:08:46 Lease Rpt from Finance and Administration Cabinet 1:13:00 Rpt from Office of Financial Mgmt - KIA 1:20:00 Office of Financial Management 1:35:50 Adjournment, 958, all

Summary: The meeting began with routine business, including welcoming new committee member Senator Reginald Thomas, approving the minutes, and receiving a correspondence report on several information items. Those items included University of Kentucky research equipment funding, UK capital project funding using federal/private funds, debt issues from McGoffin County and Owen County school districts, lease modifications by the Division of Real Properties, asset preservation project revisions at Eastern Kentucky University and Northern Kentucky University, and Kentucky Communications Network Authority (KCNA) information on Kentucky Wired critical infrastructure. The main discussion focused on a dispute over the Kentucky Wired communication shelters, or “huts,” and related payments under KCNA’s agreement with Asellicom/Excel. Brad Kilby of Asellicom testified that KCNA had not paid for the huts, that Asellicom had not received the alleged $8 million or any later payment, and that Asellicom remained the legal owner. Committee members pressed him on whether payment had been received, whether anyone else might have received it, and whether the lawsuit or dispute resolution process clarified the issue. Kilby said no payment had been received and that the matter was part of ongoing litigation. KCNA Executive Director Doug Hendricks and General Counsel Adam Atkins then testified. They said a certified check for $8.5 million was mailed in July, based on the Finance and Administration Cabinet secretary’s determination that $8.5 million was due under the model procurement code, even though KCNA had initially requested about $12 million to cover a worst-case estimate. They said the contract allowed payment in full or in tranches, that the huts were completed and operational, and that KCNA had not received documentation supporting Asellicom’s higher $10.1 million claim. Members expressed frustration over the missing check and the broader implications for Kentucky Wired, and one member requested that the committee obtain all agency requests related to KCNA/Kentucky Wired since inception; the co-chairs said they would look into making that information available. No formal vote was taken on the dispute during the portion provided.

Transcript Highlights:

• ><00:21:46.720> and<00:21:46.960> to so my charge to you is to go back and to so my charge
• discussion<00:30:05.360> on<00:30:05.600> this<00:30:06.080> and<00:30:06.399><
• > now<00:30:08.559> and<00:30:09.039> all<00:30:09.279> these<00:30:09.679
• <00:30:16.840> responsibilities<00:30:17.840> to commitments and responsibilities to
• commitments and responsibilities to offer<00:30:18.480> the<00:30:18.799> services<00:

Keywords: 0:16 – CALL TO ORDER 0:20 – ROLL CALL 0:56 – ELECTION OF CO-CHAIRS 1:54 – APPROVAL OF MINUTES 2:10 – OFFICE OF THE ATTORNEY GENERAL 3:28 – PERSONNEL BOARD 4:30 – EDUCATION AND LABOR CABINET, BOARD OF EDUCATION, DEPARTMENT OF EDUCATION 5:18 – PUBLIC PROTECTION CABINET, OFFICE OF CLAIMS & APPEALS 12:03 – PUBLIC PROTECTION CABINET, DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL 12:54 – CABINET FOR HEALTH AND FAMILY SERVICES, DEPARTMENT FOR MEDICAID SERVICES 14:54 – CABINET FOR HEALTH AND FAMILY SERVICES, DEPARTMENT FOR COMMUNITY-BASED SERVICES 31:44 – NEXT MEETING ANNOUNCEMENT/ADJOURNMENT, 958, all

Summary: The Administrative Regulation Review Subcommittee met to reorganize its leadership for the new term, renewing Representative Derek Lewis as House co-chair and Senator Steven West as Senate co-chair. The committee then approved the minutes and moved through a series of agency regulations, generally adopting staff-suggested amendments without objection. Among the regulations reviewed were an Attorney General rule changing how a commission reviews and distributes funds and how grant reporting is handled; Personnel Board changes abolishing and renaming certain job classifications and adjusting probationary periods; an Education and Labor Cabinet rule removing references to local board of education members; several Public Protection Cabinet rules covering Board of Claims and Crime Victims’ Compensation procedures; an Alcoholic Beverage Control rule on direct-to-consumer shipping forms; and a Medicaid Services emergency regulation establishing the Kentucky Trauma Hospital Rate Improvement Program for rural hospitals serving many Medicaid patients. The committee also heard that the Board of Claims and Crime Victims’ Compensation regulations included both staff and, in one case, an agency amendment, which were approved. The most extended discussion came on the Department for Community Based Services’ regulation increasing per diem rates for private child-placing therapeutic foster care levels 2 and 3. Committee members questioned the estimated $10 million biennial cost, the source of the funding, and why the cabinet had not yet filed regulations implementing Senate Bill 151 on kinship care. DCBS staff said the rate increase was discretionary and intended to address placement crises for children with high needs, while acknowledging they could not personally explain the budget decisions. A kinship caregiver testified in support of the rate increase but urged the cabinet to also implement SB 151 and expand support for kinship families. The committee expressed frustration over the lack of SB 151 implementation but stated the rate increase itself was appropriate and allowed the regulation to proceed.