The dust has settled in Frankfort legislative session, with the General Assembly delivering a long list of policy objectives, most notably the two-year budget.
The spending plan includes billions in one-time investments for economic development, infrastructure, education, health and workforce initiatives across the state. The House and Senate pulled an unprecedented $2.7 billion from the budget reserve trust fund—aka the rainy-day fund—to support major regional and local projects.
The Republican supermajorities made efforts to ensure the two-year spending plan keeps the state on track to meet the necessary triggers at year-end for state income tax eductions, the GOP’s primary economic policy objective. Financial forecasts project that state revenues and the rainy-day fund balance will enable another reduction from the current 4% rate to 3.5% in the next year.
Below is a compilation of the 2024 session budget highlights:
ECONOMIC DEVELOPMENT
- • Mega-Development Projects
Allocating $100 million in support of approved projects exceeding $10 million. - • Kentucky Product Development Initiative
$70 million for economic development site projects. - • GRANT Program
$200 million to cover local matches for counties, cities and nonprofits seeking federal grants - Downtown Louisville
$100 million for downtown Louisville revitalization projects. - Shelby County
$25 million for an energy development project (approval pending by 2025 General Assembly). - Hardin and Warren Counties
- $50 million to the Kentucky Economic Development Finance Authority Loan Pool to support economic development in Hardin and Warren counties as a result of mega projects. The funds will go toward critical infrastructure improvements, such as water and sewer requirements.
- Â Clay County
$10 million to Clay County for economic development projects in the area. - Ashland Conference Center $25 million to the City of Ashland for construction of a new conference center complex.
- Â Frankfort Convention Center
$11.25 million for the City of Frankfort to support construction of its new convention center.
EDUCATION
- K-12 Funding
The state’s primary K-12 funding mechanism, known as the SEEK formula, receives a 3%increase in the first year and a 6% increase in the second year. The budget also funds student transportation costs at 90% in the first year and 100% in the second year. - University of Kentucky
$40 million to bolster the Center for Applied Energy Research, support the Kentucky Nuclear Energy Development Authority, and strengthen the Energy Planning and Inventory Commission; $11 million annually to the Kentucky Cattleman’s Association for the construction of a Livestock Innovation Center at the University of Kentucky C. Oran Little Research Farm. - University of Louisville
$20 million to support construction, renovation and operations for the university’s cybersecurity program; $10.6 million for the Kentucky Manufacturing Extension Partnership; $25 million to support cancer care, research, screening and educational programs at the Center for Rural Cancer Education and Research. - Eastern Kentucky University $25 million to support the aviation program.
- Morehead State University $2.5 million dedicated for new space science satellites for the university’s space science program.
- Murray State University
$60 million to construct a facility for the veterinary technician program; $10 million in fiscal year for construction and renovation for the cybersecurity program. - Western Kentucky University $20 million for the university’s Innovation Campus program;$4.4 million for the LifeWorks Transition Academy and Bridge Program.
- Commonwealth Center for Biomedical Excellence
$125 million for the construction of a Commonwealth Center for Biomedical Excellence in the City of Covington in partnership with Northern Kentucky University and the University of Kentucky. The center is slated to house a new home for Northern Kentucky University’s Chase College of Law as well as a facility for the UK College of Medicine.
RAIL, AIRPORTS, RIVERPORTS
- Rail Improvement and Development
$15 million in grants to improve and modernize Kentucky’s rail systems; $15 million for projects that improve connectivity and rail services. - Airports
$2.5 million for Barkley Regional Airport (PAH); $5 million for Blue Grass Airport (LEX); $20 million for Cincinnati/Northern Kentucky International Airport (CVG); $5 million for Louisville Muhammad Ali International Airport (SDF); $2.5 million for Owensboro Daviess County Regional Airport (OWB); $10 million for the Leitchfield-Grayson County Airport to purchase acreage for the expansion of runways to promote economic growth. - Riverports
$15 million for improvements and modernization of public riverports; $3.5 million to the Paducah-McCracken Riverport for the Riverport West project;$1.3 million to the Owensboro Riverport Authority for the construction of the riverport waterline loop.
WATER AND SEWER SYSTEMS
- Kentucky Water and Wastewater Assistance
$150 million for troubled or economically restrained water and wastewater systems (WWATERS Program).
HOUSING
- Kentucky Rural Housing Trust Fund
$10 million for housing development. - $10 million to Lexington Housing Affordability for transformational housing affordability partnership.
HEALTH
- Middlesboro Cancer Treatment Center
$12 million to Appalachian Regional Healthcare for construction of a cancer treatment center in the City of Middlesboro. - Pikeville Medical Center
$12 million to Pikeville Medical Center for facility upgrades, including the obstetrics, labor/delivery ward and operating rooms, intensive care unit, and psychiatric/mental health ward. - Regional Substance Use Disorder Pilot
$20 million to the Barren River Area Development District to develop and implement a regional substance-use disorder services pilot program. - Kosair for Kids
$30 million to the Home of the Innocents for the expansion of the Kosair for Kids Complex Care Center.
Bob Babbage and Rebecca Hartsough are with Babbage Cofounder, a leading government relations firm.
