The Senate advanced four budget-related bills on Wednesday with bipartisan support as lawmakers prepare for the next two-year state spending plan.
House Bill 500, House Bill 503, House Bill 504, and House Bill 900 each received unanimous approval from the Senate Appropriations and Revenue Committee before passing the full Senate later in the day.
Sen. Christian McDaniel, R-Ryland Heights, who chairs the committee, said the proposals reflect years of disciplined budgeting through both economic challenges and recovery.
“We crafted our budgets for the future, not just for today,” McDaniel said on the Senate floor.
HB 500 outlines the executive branch budget and includes funding across education, health care, public safety, and infrastructure.
Key provisions include increases to the SEEK education funding formula — raising the per-pupil base to $4,626 in the first year and $4,774 in the second — along with 2% annual raises for state employees and law enforcement training incentives.
The plan also allocates $5 million annually for school safety, $145 million to address pension liabilities, about $80 million for a 13th check for retirees, and $100 million to meet federal SNAP requirements. Additional funding includes $42 million for prison education programs and $44 million for out-of-home care services.
The bill calls for agency budget reductions of 4% in 2027 and 7% in 2028, though several areas are exempt, including Medicaid, SEEK funding, Kentucky State Police, and the Kentucky Teachers’ Retirement System.
HB 503 covers the legislative branch and includes 2% annual raises for employees. HB 504 funds the judicial branch, also including 2% raises and full funding for nine judgeships created in 2022. It also sets aside $1 million for a long-awaited judicial salary study.
HB 900 addresses the Budget Reserve Trust Fund and remains under development. McDaniel said it will help guide one-time funding requests from lawmakers for state and local projects.
Senate Democratic Floor Leader Gerald Neal, D-Louisville, said he supports the bills but noted the complexity of the process.
“There’s a lot involved here, and coming together and speaking in one voice is very important,” Neal said.
The bills now return to the House. If lawmakers do not agree on the Senate’s changes, a conference committee will be formed to resolve differences.
Information from the Kentucky Legislative Research Commission.
