Category: News & Updates

When it comes to the state budget, which the General Assembly overwhelmingly approved on Wednesday, it can be easy to get lost in the numbers. No other legislation, however, better determines our priorities. It is, as one legislator said, our moral document.

I voted for it because I think it moves Kentucky in the right direction, a decision made even easier by the fact that it’s the first budget in 16 years not needing any cuts. At the same time, there are areas where I think improvements should have been made.

There are actually several budget bills, with one for each branch of government and others for transportation. Overall, they total about $118 billion, which includes state and federal revenues and restricted funds like college tuition that have to be spent where they’re generated.

About 90 percent of that money goes to four things: education, health and human services, criminal justice and capital projects like new buildings and repaved highways.

Since the start of the pandemic a little more than two years ago, the budget has benefited greatly from several federal stimulus packages, and one of the most sizable is the American Rescue Plan Act that became law in early 2021.

The General Assembly spends about $1.16 billion of our remaining ARPA funds in the upcoming budget, and within that total are $250 million for water/wastewater improvements; $242 million to help repay the federal loan used to cover unemployment insurance benefits at the height of the pandemic; $169 million for schools with urgent facility needs; and $75 million apiece to help non-profits and to boost tourism in the commonwealth.

Other big-ticket items scattered in the budget are $200 million to overhaul the state fairgrounds in Louisville; $170 million to do the same for many of our state parks; and $250 million for our already sizable “Rainy Day” fund, which is nearing $2 billion, a number far higher than it ever was pre-COVID.

I certainly support having strong reserves to cushion any future economic downturn, but I believe much of this additional deposit could have been better spent drying up the numerous rainy days we’ve already had. That’s especially true with monthly state revenues continuing to easily outpace projections.

Educators, for example, weren’t given raises at all in the budget, even as state workers are set to get an 8 percent salary increase next fiscal year and another as high as 12 percent in the budget’s second year. There are also additional, and deserved, salary bumps for social workers, Kentucky State Police personnel and Judicial Branch employees.

Republican leaders said schools could provide raises through the additional money the state is sending them, but given inflation and other costs, there’s no guarantee that this will happen. I believe the previous Republican House Speaker was correct when he tweeted this past week that not providing a much-deserved raise for teachers is “the biggest smackdown and slap to public education in history.”

State government retirees also won’t get a cost-of-living allowance – their last one was in 2011 – and first responders and frontline essential employees won’t get COVID-related bonuses that other states and communities have awarded.

In education, the budget continues funding all-day kindergarten, something that began in August. The state only paid for half-days before then, although most school districts covered the rest.

In addition to that extra money for kindergarten, per-pupil funding will rise from the current $4,000 to $4,100 next year and then $4,200 the year after that. On the downside, there is still no money for universal pre-K for four-year-olds, and schools also don’t have money for things like textbooks and professional development.

Under the broad heading of health and human services, the budget authorizes 100 additional slots for two programs that help Kentuckians with intellectual or developmental disabilities live more independently. This is definitely good news, but it is nowhere near enough to address waiting lists measuring in the thousands.

Other programs getting a sizable boost in the new budget are schools’ family resource and youth services centers, public health departments and employee-based childcare.

In transportation, the state’s Road Fund makes progress toward expanding the Mountain Parkway and building new Ohio River bridges in Northern and Western Kentucky.

Looking ahead, the General Assembly has approved a tax reform plan that’s similar, but less extensive, than what the state House originally proposed earlier this year. Assuming the current plan is enacted, the state’s flat five percent personal income tax rate is scheduled to drop by a half percentage point in 2023. To help fill in part of that gap, the 6 percent sales tax will be extended to an array of services, including most paid parking; ride-share programs like Uber and Lyft; photography services; renting spaces for events like weddings and conventions; and cosmetic surgery.

Over the long term, Republicans want consumption-based taxes to be the primary source of state revenues, and their tax-reform plan will move further in that direction if spending targets are met and legislators approve.

It is worth pointing out, however, that our current mix of sales, income and property taxes and lottery revenues has provided one of the most stable systems among the states this century, and that has insulated us during wide economic swings.

States without an income tax also have much higher sales taxes than ours on average, and they have built-in advantages, too. Alaska and Texas can rely on sizable energy reserves, while Florida and Tennessee have much larger tourism industries than ours.

There were of course many other bills approved by the General Assembly this year, and like the budget, they, too, will have a major impact on us going forward. I will cover those more in-depth in the next few weeks.

At the moment, other legislators and I are back home for what we call the veto recess. When we return to the Capitol on April 13th and 14th, we’ll review what bills have been vetoed by the Governor and decide whether any remaining ones should also become law.

I want to thank those who have reached out during this legislative session, and encourage you to keep letting me know your thoughts and concerns. My email is Nima.Kulkarni@lrc.ky.gov, and the toll-free messenger line is 1-800-372-7181. It’s open during normal business hours around the year.

Even before the General Assembly arrived at the Capitol in early January, everyone knew the biggest issues would be legislative redistricting, the state budget and tax reform.

The first two have followed predictable, if not always preferred, paths, but the parameters of tax reform have only started to take shape in the last few weeks.

On Friday morning, the House debated House Bill 8, which would have a profound and permanent impact on state revenues.  If enacted, it would send Kentucky into the same choppy waters that, as several other states have found, do not lead to smooth sailing.

The House approved the legislation on Friday, a mere week after it was introduced; and even as the bill was being debated, no one could accurately say what it would cost or offer more than anecdotal evidence that it would actually work. It had only been heard in committee the afternoon before, and multiple rules of procedure had to be waived in order to have the measure heard so quickly.

In short, the legislation would shift Kentucky’s revenues more toward sales taxes and away from the income tax, which provides 40 percent of our $14 billion annual budget.

House Bill 8 leans heavily on a billion-dollar surplus left unspent in the budget the House approved in January. That may be good for one year, but the costs in this bill are recurring and will dig a hole in state spending far faster than the bill’s revenue measures will ever fill it.

Those revenue measures would extend the six percent sales tax to about several dozen new services.  It would make us pay extra for such things as parking; having professional photos made; designing and hosting websites; renting space for a wedding or convention; storing a boat; and sending your child to camp.

The bill’s sponsors readily admit their goal is to emulate the nine states without an income tax.  They also acknowledge that it could be a long journey to get there.  Others and I argue that it’s also highly questionable whether this is the best route to take, because there are many reasons why a significant majority of states relies on a progressive taxing system.

It is important to point out that the nine states without an income tax evolved their policies over decades; their citizens pay more in other taxes – Tennessee taxes groceries, for example, while many communities pay almost 10 percent sales tax – and their economies rely on such industries as tourism that are not as prominent here.

At the same time, states without income taxes often spend less on critical programs and services like education.  A U.S. Census comparison of local, state and federal per-pupil funding showed that, in 2019, Kentucky spent $1,500 more annually on each student than what Tennessee, Texas and Florida spent.

Last fall, the highly reputable Pew Charitable Trusts said Kentucky had the second-most stable tax system between 2001 and 2020, trailing only South Dakota.  That predictability means we are much less likely to see wide swings in state revenues, something that helped immensely during the Great Recession and especially the first few months of the pandemic.

States that have moved in a similar direction have not always had an easy time.  Kansas’ ill-fated attempt in 2012 was essentially reversed five years later after massive budget cuts and the promise of economic growth didn’t materialize.

Other states trying to do something have taken a more cautious approach and still faced difficult times.  House Bill 8 does have trigger mechanisms so that future cuts beyond the first may be years away, but this ever-present financial cliff will make it that much more difficult for us to properly fund our schools and other critical programs in the future.

Moving away from an income tax creates true winners and losers. If you earn $1.4 million, you’re going to get about $11,000 back a year.  Most others who live paycheck-to-paycheck will see monthly savings measured in pennies or a couple of dollars. 

House Bill 8 is now in the hands of the state Senate, and if a compromise is reached, it will likely be in the final days of the legislative session, which must wrap up by mid-April.

On the same day this bill was approved, the House voted on its versions of the Judicial and Legislative branch budgets.  While both contain needed raises for state employees, the legislative budget includes a pay increase for House and Senate members serving in 2023 and beyond.  I supported an effort to remove, because I believe it is wrong for us to raise our salaries while severely cutting unemployment insurance and not giving teachers a raise.

Budgetary matters were not the only major issue last week.  The House also voted for a draconian anti-abortion bill that, if it becomes law, would all but stop this safe, legal procedure in Kentucky.

House Bill 3 would put unnecessary restrictions on abortion medicine sent through the mail; it will add requirements to obtain birth and death certificates for an abortion; it will make it tougher for minors to obtain an abortion while criminalizing doctors who don’t follow specific consent procedures in those cases; and it would add new but unnecessary reporting requirements designed to intimidate those they affect.

My colleagues and I spoke out strongly against this bill, which will put one of the safest medical procedures out of reach for the majority of women and your girls who need it. It will impact poor, black, brown, abused, and vulnerable women and girls in our Commonwealth the most. Every year, it seems, the legislature finds new and cruel ways to limit reproductive rights and invade privacy during one of the most trying times in someone’s life.  It shouldn’t have to be this way.

For now, the fate of these and many other bills is still unknown, but we will have final answers in most cases in just a few weeks.

I want to hear your thoughts on these issues, because that helps me immensely when it comes time to vote.  You can leave a toll-free message each weekday at 1-800-372-7181, while my email is Nima.Kulkarni@lrc.ky.gov.  If you would like to know more about these and other bills, they can be found at Legislature.Ky.Gov

Last Monday may have been a holiday, but anyone following the proceedings in the Kentucky House of Representatives wouldn’t be able to tell.

After taking Presidents’ Day off, lawmakers returned to Frankfort on Tuesday for day 33 of the legislative session. Bills addressing police and tax reform advanced off the House floor while House committees heard a variety of bills that supporters say will protect Kentuckians from violent criminals.

On Tuesday, the House unanimously approved a bipartisan measure that would prohibit anyone convicted of a misdemeanor sexual offense from becoming a peace officer.

Kentucky law currently prohibits anyone convicted of a felony from becoming or remaining a peace officer. House Bill 206 would add misdemeanor sexual offenses to the list. The bill would also automatically revoke the certification of a peace officer if he or she is convicted of a misdemeanor sexual offense.

One of the bill’s sponsors said the measure is an extension of Senate Bills 80 and 52 from the 2021 legislative session. Both bills sought to reform what constitutes law enforcement misconduct in an effort to weed out “bad actors.”

HB 206 cleared the House by a 96-0 vote. It will now go before the Senate for consideration.

Lawmakers continued to address law enforcement related issues on Wednesday with House Bill 414. Supporters of the bill said it will give local law enforcement agencies more flexibility to address the needs of employees and the communities they serve.

Within the last year, law enforcement agencies across the Commonwealth have reported major staffing shortages and issues with retention. The House took up a bill earlier in the session related to Kentucky State Police salaries to help that agency recruit and retain officers. HB 414 would likewise help local law enforcement agencies.

When it comes to staffing concerns, HB 414 would remove the age ceiling for applicants. Under current statute, applicants must be between 18 and 45 years old. The bill would also allow local law enforcement agencies to operate under an 80-hour, 14-day work period instead of a 40-hour, seven-day work period.

Critics of the bill expressed concerns about the 80-hour, 14-day work period and how some officers may end up working more than 10 hours a day, which could lead to mistakes and accidents.

The bill’s sponsor said these provisions should give local law enforcement agencies more flexibility if an incident requires a long investigation.

Another provision of the bill seeks to strengthen the reputation of police and fire departments by amending the disciplinary process to allow more time for complaints against law enforcement officers to be filed.

Under this provision, the window to file a complaint would be extended from three days to 10 days. The bill would then give the mayor, city manager or legislative body 10 days instead of five days to file charges if there is probable cause.

The House approved HB 414 by an 85-12 vote. It will now go before the Senate for consideration.

HB 206 and HB 414 were not the only pieces of legislation related to first responders taken up by the House this week.

The Lifeliner’s Act, or House Bill 79, would allow telecommunicators to be eligible participants in the Law Enforcement Professional Development and Wellness Program. This bipartisan measure would also require telecommunicators to undergo basic training on post-traumatic stress disorder and work-induced stress.

Resources for how to receive treatment for PTSD and work-induced stress would also be required under this bill.

HB 79 advanced off the House floor unanimously. It will now go before the Senate for consideration.

Tax reform

When it comes to the topic of tax reform, lawmakers say they’re working on multiple bills that would put more money in the pockets of hard working Kentuckians while diversifying the tax base to give local governments and the state more revenue options.

One way to give local governments more tax options could soon lie in the hands of voters. House Bill 475 cleared the House floor by an 80-17 vote this week.

The bipartisan measure would allow Kentuckians to vote on a constitutional amendment that would give lawmakers the power to allow local governments to implement new types of taxes.

Currently, Section 181 of the Kentucky Constitution limits the types of taxes local governments can charge. Supporters of the bill said most cities, counties and municipalities survive on occupational tax and property tax revenue, which is an issue for many communities.

Changing the constitution would give the General Assembly the power to approve legislation that would allow local governments to implement a 1% local sales tax, for example.

Supporters of the bill say changing the state constitution is essential if the legislature wants to be successful in implementing comprehensive tax reform.

The bill now lies in the hands of the Senate. If HB 475 clears that chamber and gains the governor’s signature, Kentucky voters will decide on the proposed change to the constitution during the November 2022 general election.

If voters approve, supporters of HB 475 have filed another bill— House Bill 476– that would keep the status quo until lawmakers return in January 2023 for the next legislative session.

Critics of HB 475 worry changing the constitution might put a burden on low income individuals and families. Supporters of the bill disagree, adding it would allow local governments to ease off increasing occupational and property taxes and instead implement other types of taxes that would tax other individuals, such as tourists.

HB 476 cleared the House floor by an 86-11 vote. The bill is now before the Senate for consideration.

In committee

House committees addressed a number of issues this week. All of these bills were approved by their respective committees and are now before the full House for consideration.

House Judiciary Committee: House Bill 313 would issue new guidelines for charitable bail organizations.

The bill would prevent charitable bail organizations from posting more than $5,000 in bail for anyone charged with a crime. The bill would also limit the types of individuals the organizations can post bail for. Individuals charged with a domestic violence-related or dating-violence related crimes and individuals held under a civil court order would not be eligible to be bailed out by charitable bail organizations.

Another provision of HB 313 would also require charitable bail organizations to keep track of who is donating to the organization and who the organization helps. This information would be required to be posted publicly and submitted annually to the Interim Joint Committee on Judiciary.

If the organization posts bail for an individual who commits another offense, HB 313 would also require the bail to be forfeited to the victim of the new crime.

The House Judiciary Committee also approved House Bill 488 this week. The bill would make a second violation or subsequent violation of an order of protection a Class D felony.

House State Government Committee: As Black History Month comes to a close, lawmakers are considering a plan to make Juneteenth a state holiday.

Last year, the federal government made June 19, or Juneteenth, a federal holiday. Juneteenth commemorates the emancipation of the last group of enslaved Black Americans who were living in Galveston, Texas, on June 19, 1865, two years after President Abraham Lincoln signed the Emancipation Proclamation and two months after the end of the Civil War. House Bill 133 would add Juneteenth to the list of federal holidays recognized by the state.

The House State Government Committee also approved House Bill 43 this week. The bill would prohibit a governmental entity from prohibiting religious services during an emergency to a greater extent than imposed on other organizations or businesses that provide essential services.

The Kentucky General Assembly will convene for the 37^th day of the 2022 legislative session at 4 p.m. Monday.

Tuesday is the last day for lawmakers to file new bills in the House, and Thursday is the last day to file new bills in the Senate.

Are we there yet? Not quite, but we’re getting closer.

The first 30 days of the 60-day 2022 legislative session have flown by. Time is ticking as lawmakers in the Kentucky House of Representatives and Senate work quickly to meet Tuesday’s deadline for bill requests.

More than 500 bills have been introduced on the House floor since the first legislative day on Jan. 4. While not every bill will receive a committee hearing or come to a vote on the House floor, 24 pieces of legislation were heard in the House just this week.

A bill that I have worked on since 2019 passed the House unanimously on Friday. House Bill 222, which is the first anti-SLAPP legislation introduced in Kentucky. The Uniform Public Expression Protection Act safeguards the First Amendment in courts by creating a special motion to dismiss certain civil lawsuits that are used strategically to intimidate, censor or silence those who speak out against a matter of public interest or concern.

These are called strategic lawsuits against public participation, or SLAPP. The goal of these lawsuits is to silence the person speaking out by burdening them with a lawsuit that is costly to fight.

This bill has been developed and improved through numerous discussions with attorneys, legal scholars, and stakeholders, and addresses many complicated concerns about the judicial process. I am thankful to my colleagues who voted to pass this important legislation, which now goes to the Senate for consideration. This was truly a bipartisan effort, and I am hopeful that this collaborative spirit continues throughout this session.

You can read the final bill here.

View the full presentation and my remarks here (starting at the 23:30 mark).

I wrote more about this bill during the 2021 Interim Session here.

On Tuesday, House members debated House Bill 63 and the merits of school resource officers (SROs). HB 63 is a follow up to Senate Bill 1 (the School Safety and Resiliency Act) from the 2019 Regular Session. SB 1 required school districts to assign at least one SRO to each school in a district as funds and qualified personnel become available.

HB 63 would require schools who can place an SRO at each school to do so by Aug. 1. If sufficient funds and qualified personnel are not available, the bill directs the school district to work with the state school security marshal at the state Center for School Safety to address those issues.

I voted against this measure after hearing from teachers and students in our district who would not feel safer having armed officers at school, as well reviewing data on the disproportionate disciplinary treatment of students of color. The bill also undercuts local decision-making and creates another unfunded mandate for our already stretched school districts. HB 63 cleared the House floor by a 78-17 vote.

I also voted against House Bill 4, which would cut the time that Kentuckians can collect unemployment benefits from 26 weeks to as little as 12 weeks under certain circumstances, and forces them to accept positions in a one-size-fits-all approach.

I voted against this measure because it penalizes those who are actively looking for work, and assumes that people can be plugged in to open jobs without regard to wage rate, job requirements, education/experience, or career goals. The bill also disregards those Kentuckians with disabilities who may need supportive employment as well as second chance employment for those with prior records. Colleagues in rural areas spoke out strongly against this measure as well, citing a lack of jobs in their communities.

The House voted on several other measures that I supported, which will now advance to the Senate, including:

House Bill 250— This bill would allow the state to loan $23 million to Kentucky State University to help the struggling university meet its financial obligations this fiscal year. HB 250 directs the Council on Postsecondary Education to create and oversee a management improvement plan and a loan repayment plan for KSU. The bill moves to the full Senate for consideration after an 82-7 vote in the House.

House Bill 220— Intimidation of a sports official would become a Class A misdemeanor under this bill. This includes threatening, injuring or causing physical damage to the property of a sports official. The House approved this bill by an 89-6 vote.

House Bill 397— This bill would allow the commissioner of the Kentucky Department of Education to waive up to 15 student attendance days for school districts in the major disaster declaration counties impacted by December’s tornados. This bill passed unanimously.

It’s impossible to predict what will become law and what will have to wait another year in the handful of weeks the General Assembly has left.  The only thing I know for sure is that your input is crucial in this process.

You can always leave me a message each weekday at 1-800-372-7181, and my email is Nima.Kulkarni@LRC.KY.gov. If you would like to read the bills I’ve mentioned, they can be found at Legislature.Ky.Gov.

Due to the Presidents’ Day holiday on Feb. 21, the Kentucky General Assembly will not convene on Monday. Both chambers return to Frankfort Tuesday and will reconvene at 4 p.m.