Governor Andy Beshear laid out his recommendations for the state budget during his 2021 State of the Commonwealth address Thursday night.
Governor Beshear announced his recommendations with the Better Kentucky Budget that would use one-time funding of $603 million, which was not used in the last fiscal year because of money given to the Commonwealth from the CARES Act.
In Pillar 1 of the Better Kentucky Budget proposal, Beshear is asking for $220 million to aid small businesses, $20 million to assist non-profits, and $100 million to repay the Unemployment Insurance loan from the federal government.
Beshear is requesting the legislature approve funds to help small businesses in a separate bill.
With additional funding from the CARES Act, Beshear would like to use $48 million to help unemployed Kentuckians waiting on benefits for over two months and are still unemployed. He wants to send a one-time $1,000 payment to each resident who qualifies. He also wants to send a one-time $400 payment to those who missed the federal unemployment due to reasons beyond their control. Beshear believes there are over 22,000 residents who qualify for either or both of these payments. Additionally, Beshear would like to use $152 million of new CARES Act funding to repay the federal Unemployment Insurance loan.
In Pillar 2, Beshear wants to give $1,000 raises to teachers and classified staff members in every public school district in the state and increase the base SEEK formula by 1-percent. The SEEK formula is the main source of K-12 education funding for Kentucky students.
The second pillar also includes full Medicaid funding and other things to help Kentucky families.
It also includes fully funding pension and medical benefits for the Teachers’ Retirement System, full funding for the state’s retirement plans, and relief for quasi-government agencies that deal with the non-hazardous plan.
Beshear said he wants to do what he believes is right and give a one-percent raise to state employees and ensure all local governments provide equal pay for equal work. The second pillar also includes improved compensation for local and state law enforcement and firefighters and eliminating military pensions from Kentucky income taxes.
In Pillar 3, the governor wants to make bold investments in the future of the state. It includes $100 million to rebuild schools, $50 million to fund the “final mile” in broadband connection, the Better Kentucky Promise, and the Emerging Industries Fund.
Beshear adds there are some laws that need to be changed to help grow the Commonwealth even more.
Beshear’s plan will go to the state legislature for consideration as legislators take up next year’s budget. Beshear said they need to approve this, as it would be a “shame” to let the additional money sit and not be used to help the state recover from the COVID-19 pandemic.
