Kentucky budget bills passes general assembly amid criticism from Gov. Beshear

Republicans say the budget sets aside $290 million to address concerns about Medicaid funding. However, Gov. Andy Beshear says the budget cuts Medicaid by $2.7 billion and will hurt Kentucky families.

LOUISVILLE, Ky. (WDRB) — Kentucky's general assembly reached an agreement Wednesday on the state's final budget bill.

Senate Republicans said the two-year budget is fiscally responsible and invests in education, protects essential services and sets the state up to weather economic uncertainty — including rising Medicaid costs.

Republicans said the budget sets aside $290 million to address those concerns. However, Gov. Andy Beshear said the budget cuts Medicaid by $2.7 billion and will hurt Kentucky families by "fueling hospital and clinic closures, rate cuts and elimination of services like hospice, mental health services and more."

Additionally, Beshear said the budget includes "$76 million less for foster care, social workers, TANF and SNAP, resulting in delays in abuse and neglect cases, fewer foster parents, reduction of social workers and more."

"We should be expanding health care access to protect the lives of Kentuckians. And we should be supporting our social workers and programs that help our families. But sadly, these cuts are doing the exact opposite," Beshear said previously.

House Speaker Pro-Tempore David Meade, R-Stanford, said the money for Medicaid "is adequate."

The budget bill includes a $6.2 billion investment in the state's general fund over the biennium toward Medicaid with an additional $290 million allocation reserved for future use "if necessary."

Other proposals in the bill include increasing the public pension and retirement system contributions and reduce long-term liabilities; a 2% salary raise for state employees in the 2026-27 and 2027-28 fiscal years; funding for the Dolly Parton Imagination Library, with a focus on prioritizing children in foster care; and increasing the funding formula for schools, also known as SEEK, to $4,626 per pupil in the 2026-27 year, and to $4,792 per pupil in the 2027-28 fiscal year.

The budget bill now heads to Beshear's desk. He can issue line item vetoes for portions of the budget, but those can be overridden by the Republican majority in the general assembly.

Louisville Mayor Craig Greenberg, meanwhile, said he is grateful to the Kentucky legislature "for once again making a significant investment in the future of Louisville and Kentucky."

"These investments will deliver real results for the people of our city and state by supporting social service organizations, building more affordable housing, expanding early learning, improving public safety, creating jobs, attracting more non-stop flights, strengthening our performing arts programs, expanding our zoo, improving our road infrastructure and so much more," Greenberg said in a statement.