Please Join Us For Our Annual
Welcome Back to Frankfort
Legislative Reception
Wednesday
January 8th, 2020
Wednesday
January 8th, 2020
5 PM —7 PM
Government Strategies
229 Shelby Street
Frankfort, KY
Tuesday, December 17, 2019
Tuesday, December 10, 2019
Governor Beshear Takes Office
Beshear Takes Office
Today Frankfort was filled with ceremonies and festivities surrounding the swearing-in of Andy Beshear as the 63rd Governor of the Commonwealth of Kentucky. To read a copy of Gov. Beshear's inaugural address click here and Lt. Gov. Jacqueline Coleman's inauguration day remarks are available here.
Two other items of note were announced today:
- Gov. Beshear followed through on a campaign promise to reorganize the Kentucky Board of Education, which he did via this Executive Order. He also appointed new members to serve on that Board. Several of the board members that were replaced have filed suit to stop this action and a copy of their complaint can be viewed here.
- Gov. Beshear also announced today that he will sign an Executive Order on Thursday restoring voting rights for 100,000 felons. This was also a promise made during the campaign.
We expect additional appointments and announcements to be made this week and we will share those as appropriate.
Wednesday, November 27, 2019
Tuesday, November 5, 2019
KY Election Results
Kentuckians went to the polls today to elect statewide constitutional officers, two special legislative seats, and a Supreme Court Justice.
The big story on the night is that Governor Bevin appears to have been upset in his reelection bid by Democratic Attorney General Andy Beshear by less than 1% or roughly 5000 votes. The Governor has not conceded the race and is going to follow the election recanvass/recount process due to some irregularities. More details in the days to follow.
The apparent win for Democrats in the Governor's Race is juxtaposed against Republicans sweeping all of the other statewide constitutional offices: Attorney General, Ag Commissioner, Treasurer, Auditor, and Secretary of State.
These results are unofficial but the announced winners are highlighted in yellow below.
Governor
Andy Beshear (D) 49.2%
Matt Bevin (R) 48.9%
John Hicks (Lib) 2%
Attorney General
Daniel Cameron (R) 58%
Greg Stumbo (D) 42%
Agriculture Commissioner
Ryan Quarles (R) 58%
Robert Haley Conway (D) 39%
Josh Gilpin (Lib) 3%
Auditor
Mike Harmon (R) 56%
Sheri Donahue (D) 41%
Kyle Hugenberg (Lib) 3%
Secretary of State
Michael Adams (R) 52%
Heather French Henry (D) 48%
Treasurer
Allison Ball (R) 61%
Michael Bowman (D) 39%
There were also two special elections for State House seats with the resignations of Rep. Diane St. Onge and Rep. Tim Moore.
District 18
Samara Heavrin (R) 60%
Becky Miller (D) 40%
District 63
Kim Banta (R) 63%
Josh Blair (D) 37%
Finally, there was also a special election held to fill a vacancy on the Kentucky State Supreme Court, with the retirement of Bill Cunningham, representing Western Kentucky. State Senator Whitney Westerfield squared off against Christopher Shea Nickell.
Supreme Court
Christopher Shea Nickell 57%
Whitney Westerfield 43%
Tuesday, July 30, 2019
BR Sub on Education
The Budget Review Subcommittee on Education met in Frankfort and heard testimony on Career & Technical Education (CTE) efforts across the Education Cabinet, KDE, CPE & KCTCS. My notes are below along with links to the slides.
Education Cabinet
Secretary Ramsey, Deputy Secretary Nemes, and Commissioner Gordon updated the committee on key initiatives. Their slides are available HERE. - 4200 students have received $6.8 million in Work Ready Scholarship
- Dual Credit Scholarship - The data was from 2015-16, so not very helpful on recent trends, but about $15 million has been spent on the program.
- Work Ready Skills $100 million bond fund - Monies have been spent, now in monitoring phase - $220 million total ($98 million state dollars and $121 million in matching funds locally) - Expected to increase training capacity for more than 20,000 employees
- Apprenticeships - $1.5 million in federal funds to expand apprenticeships, 251 programs serving 3,391 apprentices
- KY TECH (Get from slides)
- KY Career Center (Get from slides)
- KYStats Funding - Decreasing by 45% in December 2019. Funded mostly by grants $5.9 of 6.8 million.
KDE
Commissioner Lewis and Associate Commissioner David Horseman gave an overview of KDE initiatives and budget priorities related to CTE. Slides are available HERE and my notes are below:
- Gave an overview of New Skills for Youth as it is an attempt to encourage districts to share resources. Regional partnerships are critical particularly in CTE, because resources are scarce and employers recruit larger areas than one school district
- Employer engagement Strategies were discussed, but no mention of the work on essential skills except that they were soliciting the skills from the Workforce Investment Boards.
- 20 career pathways that contain general ed as well as technical training, most are grades 9-14 and some are 9-16
- CTE Task Force - Concerns raised by KDE
1. State vs Local centers creates issues on funding and governance
2. Lack of Funding for High Demand CTE programs
3. Funding formula for Local Centers - Statutory funding formula not used
Commissioner Lewis spoke about significant funding need in CTE. Gave an example of Ohio CTE, half the number of technical high schools, but double the students and much better quality. Seems to be saying that we need fewer technical schools and better collaboration between state and local districts
Sen. Wilson in remarks seems to be saying that the CTE Task Force work will be to unify system, fund the system, and deal with qualified teachers of CTE courses. I would expect this will be a big issue next session
CPE & KCTCS
CPE President Thompson & KCTCS President Jay Box spoke on how to improve CTE in postsecondary education.
Thompson shared the following key points in his opening remarks:
- CPE is asking the question...is the credential we are offering producing value for student and needed by business
- Trying to build employability skills into fabric of programs
- Need to consider rebranding work ready scholarship to the "free college" program that it is
- Need to build capacity with underserved students
- Need to invest in higher ed, but need to do it strategically and in results
- CPE is asking the question...is the credential we are offering producing value for student and needed by business
- Trying to build employability skills into fabric of programs
- Need to consider rebranding work ready scholarship to the "free college" program that it is
- Need to build capacity with underserved students
- Need to invest in higher ed, but need to do it strategically and in results
President Box utilized these slides and made the following key points:
- He opened giving examples of several ways KCTCS has been partnering with the business community, specifically the KY Association of Manufacturers with KY FAME and their Go Pro in Manufacturing Signing Day.
- Have changed their program mix to be more focused on students getting certificates and not necessarily transferring to 4 year institutions. From 55% to 45% in terns of transfer students and 45%-55% for students not transferring and going direct to the workforce. Sees that trend continuing.
- KCTCS advocated for fully funding the performance funding formula and to increase dual credit rate reimbursement for KCTCS.
July IJC on A&R
The Interim Appropriations & Revenue Committee met yesterday in Frankfort and took testimony on the SEEK formula, KRS actuarial assumptions, and Tobacco Settlement dollars. My notes and relevant presentations are below.
SEEK Presentation
Robin Kinney and Chay Ritter from KDE gave a very factual presentation on how the SEEK formula works and how local districts can equalize funding. The presentation is encapsulated on these slides. There was no specific ask from KDE and this was very much an informational presentation.
There were several legislative questions, but most were directed at technical formula items and not necessarily policy items around SEEK.
KRS Actuarial Assumptions
KRS Executive Director David Eager provided an overview of current and revised actuarial assumptions for the public employee pension system.
Slides are available HERE. Two key takeaways are:
1. New actuarial assumptions in the KRS system related to mortality, retirement age, etc will add significant cost to the state budget as well as local government budgets over the next 20 years.
2. The KRS is in a positive cash flow situation (taking in more revenue than paying out benefits) for the first time in several years, which Mr. Eager said is a good indicator of the near term health of the fund.
Lots of legislative questions ranging from questions on quasi-pension bill and impact to the state and the KRS to questions on financial health of KRS and need for broader pension reform. On the new assumptions, legislators were sensitive as to how the state and local governments would be able to afford these changes.
Tobacco Settlement Funds
The committee received an informational overview on the Tobacco Settlement Funds provided by Perry Nutt, LRC Economist. The slides are available HERE and in particular went through past history of the MSA Fund and how those funds were appropriated in the current biennium.
- Legislators questions and comments were focused on positive impact of settlement dollars.
- There was no indication of any downturn in the funds over the near term.
SEEK Presentation
Robin Kinney and Chay Ritter from KDE gave a very factual presentation on how the SEEK formula works and how local districts can equalize funding. The presentation is encapsulated on these slides. There was no specific ask from KDE and this was very much an informational presentation.
There were several legislative questions, but most were directed at technical formula items and not necessarily policy items around SEEK.
KRS Actuarial Assumptions
KRS Executive Director David Eager provided an overview of current and revised actuarial assumptions for the public employee pension system.
Slides are available HERE. Two key takeaways are:
1. New actuarial assumptions in the KRS system related to mortality, retirement age, etc will add significant cost to the state budget as well as local government budgets over the next 20 years.
2. The KRS is in a positive cash flow situation (taking in more revenue than paying out benefits) for the first time in several years, which Mr. Eager said is a good indicator of the near term health of the fund.
Lots of legislative questions ranging from questions on quasi-pension bill and impact to the state and the KRS to questions on financial health of KRS and need for broader pension reform. On the new assumptions, legislators were sensitive as to how the state and local governments would be able to afford these changes.
Tobacco Settlement Funds
The committee received an informational overview on the Tobacco Settlement Funds provided by Perry Nutt, LRC Economist. The slides are available HERE and in particular went through past history of the MSA Fund and how those funds were appropriated in the current biennium.
- Legislators questions and comments were focused on positive impact of settlement dollars.
- There was no indication of any downturn in the funds over the near term.
July Medicaid Oversight and Advisory Committee
The Medicaid Oversight and Advisory Committee met in Frankfort for the first working meeting of the Interim. Senator Meredith chaired the meeting and the agenda included an update on pharmacy reimbursement issues and a presentation by Department for Medicaid Services (DMS) on SB 5 implementation and new MCO contracts. Here are the takeaways:
Throughout her comments, Commissioner Steckel focused on the positive steps that DMS has taken to work with independent pharmacies. She said that the Department has a “new found spine” and will not let the MCOs and PBMs “run us over”. Steckel referred to “predators” during parts of her testimony, referring to PBMs and on several occasions stressed that she does indeed have authority over the MCO subcontractors, a different position from her predecessor.
Additionally, Steckel shared that DMS’s next priority is to begin looking into acquisition costs balanced with dispensing fees.
See the summary below by issue:
Carve-out – It’s still a topic of discussion among legislators. There were several comments that there’s still time to consider ahead of the new contract start date of July 1, 2020. DMS does not intend to weigh in on this issue. They are working on a study similar to West Virginia to determine if savings would be realized if pharmacy is managed by the state. Myers and Stauffer and the DMS FFS PBM, Magellan, are working together to assist with the study. It will be complete by early fall at the latest. According to the Commissioner, it will be objective and DMS will “stand down” on this issue.
If DMS authority is not sufficient under SB 5, the pharmacists suggested that DMS could directly administer the pharmacy benefits and/or comprehensive PBM reforms.
Fees – There was lengthy discussion on post adjudication fees – DIR, GER, etc. The new MCO contracts will prohibit these fees but we should anticipate legislation to the do the same. The pharmacists told members that since 2013 these fees have increased 45,000 percent. They are being described as a money grab by the PBMs and it’s clear that some sort of education effort is needed to properly explain the processes and reasoning behind each fee.
Contracts – There was a fair amount of discussion by both DMS and pharmacists about PBM requirements related to national contracting and the mandatory participation in Medicaid networks. Both pharmacists and DMS want to prohibit this practice
Specialty Drugs – The pharmacists made claims that in OH, CVS dramatically increased reimbursement for specialty drugs because they benefit through the ownership and mandated use of their specialty pharmacy. Mail order was also mentioned. Both are issues that have been discussed for years.
MLR – DMS intends to recoup back to 2016 pharmacy funds that were not included as part of claims for purposes of the MLR.
SB 5 MAC rate approvals – Jessin Joseph walked through the process that DMS is working through to monitor and approve rate changes per SB 5. He commented that the intent is to move back to an aggregate approval process in the future.
Other – DMS stated they are looking to move to a preferred drug list to streamline formularies among the MCOs.
A few positives from the meeting:
The pharmacists acknowledged that through working with DMS on SB 5 implementation, reimbursement issues are being addressed.
They acknowledged the positive steps the General Assembly took with the increase in dispensing fees and seemed pleased with the contract requirements included in the RFP for the new MCO contracts to begin on July1, 2020.
The pharmacists shared that in 2017, 9 independents closed, but in 2018 there were 26 new independent pharmacies that opened and 13 more in 2019. This contradicts previous statements that low reimbursements are continuing to drive independents out of business.
Meeting materials can be accessed HERE
Throughout her comments, Commissioner Steckel focused on the positive steps that DMS has taken to work with independent pharmacies. She said that the Department has a “new found spine” and will not let the MCOs and PBMs “run us over”. Steckel referred to “predators” during parts of her testimony, referring to PBMs and on several occasions stressed that she does indeed have authority over the MCO subcontractors, a different position from her predecessor.
Additionally, Steckel shared that DMS’s next priority is to begin looking into acquisition costs balanced with dispensing fees.
See the summary below by issue:
Carve-out – It’s still a topic of discussion among legislators. There were several comments that there’s still time to consider ahead of the new contract start date of July 1, 2020. DMS does not intend to weigh in on this issue. They are working on a study similar to West Virginia to determine if savings would be realized if pharmacy is managed by the state. Myers and Stauffer and the DMS FFS PBM, Magellan, are working together to assist with the study. It will be complete by early fall at the latest. According to the Commissioner, it will be objective and DMS will “stand down” on this issue.
If DMS authority is not sufficient under SB 5, the pharmacists suggested that DMS could directly administer the pharmacy benefits and/or comprehensive PBM reforms.
Fees – There was lengthy discussion on post adjudication fees – DIR, GER, etc. The new MCO contracts will prohibit these fees but we should anticipate legislation to the do the same. The pharmacists told members that since 2013 these fees have increased 45,000 percent. They are being described as a money grab by the PBMs and it’s clear that some sort of education effort is needed to properly explain the processes and reasoning behind each fee.
Contracts – There was a fair amount of discussion by both DMS and pharmacists about PBM requirements related to national contracting and the mandatory participation in Medicaid networks. Both pharmacists and DMS want to prohibit this practice
Specialty Drugs – The pharmacists made claims that in OH, CVS dramatically increased reimbursement for specialty drugs because they benefit through the ownership and mandated use of their specialty pharmacy. Mail order was also mentioned. Both are issues that have been discussed for years.
MLR – DMS intends to recoup back to 2016 pharmacy funds that were not included as part of claims for purposes of the MLR.
SB 5 MAC rate approvals – Jessin Joseph walked through the process that DMS is working through to monitor and approve rate changes per SB 5. He commented that the intent is to move back to an aggregate approval process in the future.
Other – DMS stated they are looking to move to a preferred drug list to streamline formularies among the MCOs.
A few positives from the meeting:
The pharmacists acknowledged that through working with DMS on SB 5 implementation, reimbursement issues are being addressed.
They acknowledged the positive steps the General Assembly took with the increase in dispensing fees and seemed pleased with the contract requirements included in the RFP for the new MCO contracts to begin on July1, 2020.
The pharmacists shared that in 2017, 9 independents closed, but in 2018 there were 26 new independent pharmacies that opened and 13 more in 2019. This contradicts previous statements that low reimbursements are continuing to drive independents out of business.
Meeting materials can be accessed HERE
Wednesday, July 3, 2019
Monday, June 10, 2019
June Interim Update
The 2019 Interim session got underway last week in Frankfort. Legislative leaders adopted a new approach to the interim committee meeting schedule, choosing to schedule all interim meetings during the same week of each month. Previously, committees met throughout the month. We've already noticed – and you'll see from this summary - that this change in schedule provides more of a "session feel" during the week that the committees meet. You can access the new interim committee schedule HERE.
Political Highlights
Special session chatter escalated as Governor Bevin issued a letter to all members of the General Assembly outlining his administration's concessions to a proposed bill intended to provide relief to quasi-governmental entities for increased pension costs. House Speaker David Osborne, however, issued a response that he doesn't believe that the primary concerns have been addressed and indicated that a special session may not happen before the new fiscal year begins July 1. Earlier in the week, Senator Damon Thayer made similar comments.
June Interim Committee Summaries
We want to provide the most useful information and have worked to include more detail for those committees that are of particular interest to our clients. We look forward to your feedback and are happy to customize based on your needs! Please see the following summaries for each of the committees that met. Don't hesitate to let us know if you have questions or would like additional information on topics discussed.
Medicaid Oversight and Advisory Council
The Medicaid Oversight Committee met briefly, to nominate and elect the new chairs for the upcoming year. Senate members elected Sen. Stephen Meredith as the Senate co-chair and House members elected Rep. Daniel Elliot as the House co-chair. Rep. Elliott is an attorney in Danville and Sen. Meredith is a retired hospital executive from Leitchfield. The next meeting will be held on July 8th and it is expected that the committee will hear updates from the Cabinet for Health and Family Services on new MCO contracts and an update on SB 5 implementation.
Health and Welfare
The IJC on Health and Welfare met last Monday afternoon and with a full agenda. You can access the agenda and all meeting materials HERE. CHFS Deputy Secretary Putnam shared that the Cabinet is in the process of seeking an amendment to the Medicaid state plan that will allow for payment of qualifying physical and mental health services in schools. The committee also heard updates on several programs established through grant awards. Additionally representatives from the Lexington Policy and Fire departments presented on the benefits of crisis intervention teams and their community paramedicine unit. The Office of Homelessness Prevention and Intervention presented alongside the Executive Director of the Homelessness and Housing Coalition of KY to discuss the impact of mental health on homelessness and efforts that are underway to address these growing problems across the Commonwealth. The meeting materials contain information on other items discussed during this interim committee meeting.
Transportation
The IJC on Transportation met and heard presentations from Transportation Cabinet officials.
Secretary Thomas provided an update on design build projects and focused on a grouping of four major projects on the interstate system through Jefferson County. The four projects are 1) Widening of I-71; 2) Widening of I-265; 3) I-71, I-265 Interchange; 4) I-64, I 265.
The four projects together are being grouped under a design build approach that was authorized under legislation in 2018. Collectively this is a $188 million project with a compressed project schedule that will complete in fall of 2023. Secretary Thomas' presentation is available HERE.
Appropriations and Revenue
On Tuesday, many of the Budget Review Subcommittees met, as well as the full IJC on Appropriations and Revenue. A listing of the BR Subs and short summaries are as follows:
BR Subcommittee on Justice – Discussion on Implementation of SB 120
BR Subcommittee on Justice met and heard testimony on the implementation of SB 120. Presenting were Justice Cabinet Secretary John Tilley and various cabinet officials. The presenters touched on a number of pertinent topics from jail funding, re-entry programs, prison enhancement programs, and county jails.
BR Subcommittee on Economic Development, Tourism, and Environmental Protection
The Subcommittee heard presentations from the Tourism Arts and Heritage Cabinet (TAH) and the Public Protection Cabinet (PPC). Presentations can be accessed HERE
Speaking for TAH was Cabinet Secretary Don Parkinson, Deputy Secretary Regina Stivers, and Finance Director Chris Reece. These officials gave an overview of the agencies included in the Cabinet and budget updates for the various agencies. The Presentation concluded with Secretary Parkinson discussing priorities for the next budget cycle, while recognizing that the Cabinet is very early in the budgeting process.
Presenting for PPC were Secretary Gail Russell, ABC Commissioner Carol Beth Martin, and Director Matthew Thacker with the Office of Administrative Services. Following an overview of agencies within the Cabinet, the presenters shared that the Budget priorities for the next budget session including for its agencies, like: Charitable Gaming, Department of Insurance and Department of Financial Institutions.
Budget Review Subcommittee on General Government
The only agenda item for this subcommittee was a presentation by Chuck Grindle, the Chief Information Officer at the Commonwealth Office of Technology. He provided a budget overview for COT. The presentation is available HERE
Budget Review Subcommittee on Human Services
This month's meeting focused on the Department for Community Based services with an overview of funding for child welfare services by Commissioner Clark. Subcommittee members also heard from officials with the Family Resource and Youth Service Centers with an overview of funding. Presentations on both topics can be accessed HERE.
Budget Review Subcommittee on Transportation
Transportation Cabinet officials provided subcommittee members with two updates. The first was an update on two grant programs –BUILD and INFRA – and projects that have been identified to be funded through each program. Additionally, State Highway Engineer Andy Barber and Project Manager Royce Meredith updated the committee on the Bridging KY Program.
Bridging Kentucky is a statewide program designed to restore, rehab, repair, or replace deficient state, county, and local bridges. Goals include restoring structures to appropriate capacities, focus on safety and soundness, and deliver all bridges for construction by 2024. The cost is roughly 700M, restoring 1000 bridges over a 6-year period. More detail is provided on this topic and the grant programs mentioned above HERE
Appropriations and Revenue Committee
The Presidents of Kentucky's two research universities, the University of Kentucky and University of Louisville presented to the IJC on A&R. President Eli Capiluto discussed UK's research projects on dementia and opioid abuse and also touched on budget requests for the next budget session. President Neeli Bendaupudi made her inaugural appearance before the committee and presented on UofL's research efforts as well as budget requests. Performance funding was a topic that both addressed and while they voiced support for this relatively new way to fund postsecondary institutions there was also recognition that more dollars are needed in the system.
Representatives, including Senator Givens brother, from Auburn University presented on the long-standing partnership with the Commonwealth to provide in-state tuition to students attending Auburn's veterinary school. A shortage of funds from the state to Auburn to cover the cost of Kentucky student "slots" was the theme of the presentation and a soft ask by Auburn for Kentucky to budget for the full cost of the slots in this next budget cycle.
Education
The Interim Joint Education committee met and heard testimony on early childhood education and homeschooling. There was also opposition testimony to the social studies standards reg from Dick Innes, Bluegrass Institute, but there was no action on the reg and no legislator questions. Linda Hampton, Governor's Office of Early Childhood gave an overview of Early Childhood Education in Kentucky, her slides are HERE. The Homeschooling Presentation was a repeat of an OEA presentation of their report on homeschooling that can be found HERE.
Economic Development and Workforce Investment
Recently named Acting Secretary of Economic Development, Vivek Sarin, presented on the status of the State's Economic Development programs. The Secretary focused on workforce needs, permitting needs, and access to new/existing suppliers/customers. He also discussed his cabinet's budget needs.
Dr. Jay Box, President Kentucky Community and Technical College System, gave a presentation on the Work Ready Kentucky Scholarship program and how SB 98 (2019) expanded the program to include awards for summer terms, eligibility from secondary to postsecondary if a student uses for dual-credit classes, and removes the requirement for Dual Credit Scholarships be used first.
Economic Development and Workforce Investment - June
Recently named Acting Secretary of Economic Development, Vivek Sarin, presented on the status of the State’s Economic Development programs. The Secretary focused on workforce needs, permitting needs, and access to new/existing suppliers/customers. The Cabinet is in the process of revamping a strategy to assist small businesses through the creation of Regional Innovation for Startup and Entrepreneur (RISE) offices as well as creating Commonwealth Commercialization Center (C3) to commercialize intellectual property and technology coming from universities. In addition, they are incenting high-tech startups to locate in Kentucky by matching federal high-tech funds. The Cabinet has also processed 300 plus companies for Kentucky Economic Development Finance Authority and Bluegrass States Skills approval. They have also assisted 173 companies in receiving Small Business Tax Credits. By the numbers, the Cabinet has assisted with $13 Billion in new investments, 767 announced new or expanded projects involving 39,000 jobs the last three years.
When asked what his team need from the Legislature, Sarin mentioned the following:
-Their own revenue source to create a “war chest” to compete with other states.
-Passage of pension reform. He said that investors are concerned about the impact to the states financial stability
-Property readiness
Dr. Jay Box, President Kentucky Community and Technical College System, gave a presentation on the Work Ready Kentucky Scholarship program. The program was created by Governor Bevin in 2016 by Executive Order and recently made permanent by Senate Bill 98 in the 2019 session. The program helps Kentuckians who have not yet earned an associate degree afford an industry-recognized certificate or diploma. Recipients of the scholarships must be approved in a program that leads to an industry-recognized certificate.
SB 98 expanded the program to include awards for summer terms, eligibility from secondary to postsecondary if a student uses for dual-credit classes, and removes the requirement for Dual Credit Scholarships be used first. Scholarships are available in high-demand sectors identified by the Workforce Development Cabinet. Five high demand sectors are: Advanced Manufacturing; Health Care; Transportation; Business Services and Construction.
There’s been a 148% increase in scholarship awards since the fall of 2017. Spring of 2019 recipient demographics show:
60.7% of recipients are male
92.3% are in the 18-44 age group
8.8% minority
$1,570 average scholarship
Additional information can be found in the meeting materials HERE
When asked what his team need from the Legislature, Sarin mentioned the following:
-Their own revenue source to create a “war chest” to compete with other states.
-Passage of pension reform. He said that investors are concerned about the impact to the states financial stability
-Property readiness
Dr. Jay Box, President Kentucky Community and Technical College System, gave a presentation on the Work Ready Kentucky Scholarship program. The program was created by Governor Bevin in 2016 by Executive Order and recently made permanent by Senate Bill 98 in the 2019 session. The program helps Kentuckians who have not yet earned an associate degree afford an industry-recognized certificate or diploma. Recipients of the scholarships must be approved in a program that leads to an industry-recognized certificate.
SB 98 expanded the program to include awards for summer terms, eligibility from secondary to postsecondary if a student uses for dual-credit classes, and removes the requirement for Dual Credit Scholarships be used first. Scholarships are available in high-demand sectors identified by the Workforce Development Cabinet. Five high demand sectors are: Advanced Manufacturing; Health Care; Transportation; Business Services and Construction.
There’s been a 148% increase in scholarship awards since the fall of 2017. Spring of 2019 recipient demographics show:
60.7% of recipients are male
92.3% are in the 18-44 age group
8.8% minority
$1,570 average scholarship
Additional information can be found in the meeting materials HERE
Interim Joint Education Committee - June
The Interim Joint Education committee met and heard testimony on early childhood education and homeschooling. There was also opposition testimony to the social studies standards reg from Dick Innes, Bluegrass Institute, but there was no action on the reg and no legislator questions.
Linda Hampton, Governor's Office of Early Childhood gave an overview of Early Childhood Education in Kentucky, here slides are HERE and the relevant points and legislator questions are below:
- ESSA Preschool Development Grant - KY received $10.6 planning grant 1 year. Poised to receive continuing funding for actual work that is expected to be over $20 million for multiple years
- Gave multiple examples of counties where schools and child care centers working together on grant applications by collaborating on services
- NGA grant of $25,000 related to prenatal-3rd grade to align education standards.
Homeschooling Presentation - This was a repeat of an OEA presentation of their report on homeschooling that can be found HERE. The committee seemed interested in general about 2 items based on their questions: 1. Should there be more standards for homeschool teachers and 2. How do you prevent parents from claiming they are homeschooling a student mid-year after several absences have occurred.
Linda Hampton, Governor's Office of Early Childhood gave an overview of Early Childhood Education in Kentucky, here slides are HERE and the relevant points and legislator questions are below:
- ESSA Preschool Development Grant - KY received $10.6 planning grant 1 year. Poised to receive continuing funding for actual work that is expected to be over $20 million for multiple years
- Gave multiple examples of counties where schools and child care centers working together on grant applications by collaborating on services
- NGA grant of $25,000 related to prenatal-3rd grade to align education standards.
Homeschooling Presentation - This was a repeat of an OEA presentation of their report on homeschooling that can be found HERE. The committee seemed interested in general about 2 items based on their questions: 1. Should there be more standards for homeschool teachers and 2. How do you prevent parents from claiming they are homeschooling a student mid-year after several absences have occurred.
BR Subcommittee on Economic Development, Tourism, and Environmental Protection - June
The Subcommittee heard presentations from the Tourism Arts and Heritage Cabinet (TAH) and the Public Protection Cabinet (PPC). Presentations can be accessed HERE.
Speaking for TAH was Cabinet Secretary Don Parkinson, Deputy Secretary Regina Stivers, and Finance Director Chris Reece. These officials gave an overview of the agencies included in the Cabinet and budget updates for the various agencies. There was a more detailed update on the KY Department of Parks “Restoring the Finest” program which is focused on necessary improvements to parks across Kentucky and a look at how funding as been allocated to this point as well as future plans to continue needed improvements. Specifics can be found in the presentation. The Kentucky Horse Park and Kentucky Venues also provided updates. The Presentation concluded with Secretary Parkinson discussing priorities for the next budget cycle, while recognizing that the Cabinet is very early in the budgeting process.
Presenting for PPC were Secretary Gail Russell, ABC Commissioner Carol Beth Martin, and Director Matthew Thacker with the Office of Administrative Services
Following an overview of agencies within the Cabinet, the presenters shared that the Budget priorities for the next budget session will be:
Maintain baseline appropriations for all agencies, plus additional increase in defined calculations as determined by Office of State Budget Director.
Ask for additional revenue/flexibility for the Housing Buildings and Construction Division of Fire Prevention.
Appropriations increase for KY Horse Racing Commission.
Of the Agency Updates, the following items of interest were mentioned:
Department of Insurance
20M in General Fund transfers
Have received a federal grant to review healthcare cost drivers in the individual market
In the process of implementing a handful of reforms to increase agent licensing efficiency and decrease costs for agents
Department of Charitable Gaming – Initiatives include:
Eliminating or amending 100% of regulations
Improved online training opportunities
Increased focus that gaming is conducted by legitimate charitable organizations.
Department of Financial Institutions
3M in General Fund transfers
Partnering with other agencies to provide training and outreach to consumers and licensees
Implementation of the Nationwide Multistate Licensing System
BR Subcommittee on Justice - June
BR Subcommittee on Justice met and heard testimony on the implementation of SB 120. Presenting were Justice Cabinet Secretary John Tilley and various cabinet officials.
Tilley shared that he had inherited a Cabinet with deferred maintenance and cited personnel and pay issues: Juvenile Justice has a 124% turnover in front line personnel and likewise with KSP and the state Crime Lab.
Sec. Tilley said that SB 120 has provided the Department of Corrections with some tools to ease reentry and that KY is trending in the right direction. He said it is known that recidivism is decreased by meaningful employment post release and lauded faith based and business community efforts on re-entry.
Sec. Tilley discussed SB 120's provisions on discretionary detention in P&P, stating that technical revocations are a significant recidivism driver, and referred to a $27 M. savings from discretionary detention in lieu of revocation.
Sec. Tilley also generally described mandatory re-entry supervision for those who would not otherwise be paroled i.e. timed out, MRS's idea is to assist these persons with re-entry and DOC's re-entry drug program which he termed DOC's version of drug court, pilot program.
Sec. Tilley referred to the day reporting program in Louisville Metro that he said is a means to have routine contact with individuals without full incarceration. He said that this is not a current DOC program, but could be a tool for jails and to avoid pretrial detention.
He described SB 120's prison industry enhancement and said that DOC is working with private industry to develop the program.
County Jail Re-entry Centers were referred to with Sec. Tilley saying that SB 120 gave the legal authority for re-entry centers, saying that there were none yet due to lack of resources. He added that an announcement may be coming soon on this subject.
Sec. Tilley concluded his remarks saying that he is working with Sen. Higdon on jail performance based funding.
Tilley shared that he had inherited a Cabinet with deferred maintenance and cited personnel and pay issues: Juvenile Justice has a 124% turnover in front line personnel and likewise with KSP and the state Crime Lab.
Sec. Tilley said that SB 120 has provided the Department of Corrections with some tools to ease reentry and that KY is trending in the right direction. He said it is known that recidivism is decreased by meaningful employment post release and lauded faith based and business community efforts on re-entry.
Sec. Tilley discussed SB 120's provisions on discretionary detention in P&P, stating that technical revocations are a significant recidivism driver, and referred to a $27 M. savings from discretionary detention in lieu of revocation.
Sec. Tilley also generally described mandatory re-entry supervision for those who would not otherwise be paroled i.e. timed out, MRS's idea is to assist these persons with re-entry and DOC's re-entry drug program which he termed DOC's version of drug court, pilot program.
Sec. Tilley referred to the day reporting program in Louisville Metro that he said is a means to have routine contact with individuals without full incarceration. He said that this is not a current DOC program, but could be a tool for jails and to avoid pretrial detention.
He described SB 120's prison industry enhancement and said that DOC is working with private industry to develop the program.
County Jail Re-entry Centers were referred to with Sec. Tilley saying that SB 120 gave the legal authority for re-entry centers, saying that there were none yet due to lack of resources. He added that an announcement may be coming soon on this subject.
Sec. Tilley concluded his remarks saying that he is working with Sen. Higdon on jail performance based funding.
IJC on Health & Welfare - June
Health and Welfare
The IJC on Health and Welfare met on Monday afternoon and with a full agenda. You can access the agenda and all meeting materials HERE. CHFS Deputy Secretary Putnam shared that the Cabinet is in the process of seeking an amendment to the Medicaid state plan that will allow for payment of qualifying physical and mental health services in schools. If the amendment is approved Medicaid will be able to reimburse for medically necessary services provided to any Medicaid enrolled child when available to all children at no charge. School districts will be able to leverage federal funding to increase school-based health services, such as comprehensive health screenings, mental health services, diabetes and asthma management. KY Youth Advocates have assisted in this effort and this new program is a tool the state can utilize in helping fund the initiatives passed in SB 1 this past session relating to school safety measures. If the federal government approves the amendment, school districts can begin billing for Medicaid-eligible services/students in August.
The committee also heard updates on several programs established through grant awards. Additionally representatives from the Lexington Policy and Fire departments presented on the benefits of crisis intervention teams and their community paramedicine unit. The Office of Homelessness Prevention and Intervention presented alongside the Executive Director of the Homelessness and Housing Coalition of KY to discuss the impact of mental health on homelessness and efforts that are underway to address these growing problems across the Commonwealth.
The meeting materials contain information on other items discussed during this interim committee meeting.
Tuesday, May 21, 2019
KY Election Results - May Primary
Kentuckians went to the polls today to determine the Republican and Democrat nominees for Kentucky's Five Constitutional Officers. The unofficial results (97.5% reporting) and key takeaways are below:
1. It will be Gov. Bevin vs Beshear for the Governor's Mansion in November. Governor Bevin fended off a primary challenge from State Rep. Robert Goforth garnering 52% of the Republican primary vote to earn the GOP nomination. Attorney General Andy Beshear won a hotly contested Democrat primary with 38% of the Democrat vote.
2. Cameron wins contested race to be GOP nominee for Attorney General. The Republican primary for Attorney General was a hotly contested election, but ultimately ended up being won by Daniel Cameron who was supported by Mitch McConnell and openly expressed his support for President Trump's agenda. He will face Democrat nominee and former Attorney General Greg Stumbo in November.
3. The leading vote getter in the May primary was a Democrat. In a state that trends heavy in voter registration and at the ballot box for Republicans it was Democrat nominee for Secretary of State Heather French Henry who was the leading vote getter in the May primary with more than 250,000 votes.
Unofficial Results (97.5% reporting)
Governor - GOP
Matthew G. BEVIN / Ralph A. ALVARADO 130910 51.88
Robert GOFORTH / Michael T. HOGAN 99705 39.51
Ike LAWRENCE / James Anthony ROSE 8078 3.2
William E. WOODS / Justin B. MILLER 13642 5.41
Governor - DEM
Rocky ADKINS / Stephanie HORNE 123745 32.75
Andy BESHEAR / Jacqueline COLEMAN 142618 37.75
Adam H. EDELEN / Gill HOLLAND 102856 27.22
Geoffrey M. YOUNG / Joshua N. FRENCH 8584 2.27
Secretary of State - GOP
Michael G. ADAMS 91499 41.21
Andrew ENGLISH 60844 27.41
Stephen L. KNIPPER 40296 18.15
Carl NETT 29378 13.23
Secretary of State - DEM
Jason S. BELCHER 46066 12.97
Jason GRIFFITH 45888 12.92
Heather French HENRY 251773 70.87
Geoff SEBESTA 11544 3.25
Attorney General - GOP
Daniel CAMERON 128530 55.31
Wil SCHRODER 103853 44.69
Auditor - DEM
Kelsey Hayes COOTS 91965 33.31
Sheri DONAHUE 129246 46.81
Chris TOBE 54916 19.89
Treasurer - DEM
Michael BOWMAN 208954 66.41
Josh MERS 105694 33.59
Agriculture Commissioner - GOP
Bill POLYNIAK 40725 17.77
Ryan F. QUARLES 188462 82.23
Agriculture Commissioner - DEM
Robert Haley CONWAY 194325 60.19
Joe TRIGG 128545 39.81
We will have more analysis in the days ahead.
Friday, March 29, 2019
KY Legislative Update - Sine Die
Sine Die
The 2019 regular session of the General Assembly came to a close just before midnight when legislators finalized their work on several issues on the 30th legislative day. Among the items considered on the final legislative day, that were passed without the ability for the General Assembly to override any vetoes that may be issued, were:
- HB 458 - Was amended to become a supplemental revenue measure to clean up various tax changes that amend the tax bill passed earlier this session, HB 354. In addition, the General Assembly passed HB 346 with amendment to amend the budget to transfer funds from the Rainy Day fund to pay for the tax changes in HB 458.
- SB 18 to require certain accommodations by employers for employees affected by pregnancy or childbirth.
- SB 175, which revised the school assessment and accountability system was passed after an additional amendment was filed today to broker a compromise on the issue.
- HB 11 to ban the use of tobacco in schools, unless the local school board opts out.
- HB 358 that allows quasi-entities and regional universities to exit from the current retirement system was passed after action by a Free Conference Committee.
In addition, the House and Senate did override two vetoes issued by the Governor earlier this week on HB 4 and HB 268. HB 4 amends the legislative review process of administrative regulations. The legislature opted to only override one of the Governor's two vetoes on HB 268, which made amendments to the 2018 biennial budget. The legislature opted to override the veto dealing with the grant procedures of Area Development Districts in seeking certain federal funds
When the General Assembly adjourned it did so until January 7, 2020 or until called into special session by the Governor.
We will provide a final summary of the 2019 session in the coming days.
Friday, March 15, 2019
Time for Recess
The 2019 Session of the Kentucky General Assembly completed its 29th day and adjourned for the Veto Recess shortly before midnight tonight. The bills passed during this session now head to the Governor's Desk for consideration of veto action. The General Assembly returns for the 30th and final legislative day on March 28 to consider overriding any vetoes, bringing final action to any remaining bills, and sine die adjournment.
Before commencing the veto recess tonight the legislature brought final action to several bills after a marathon day of floor action. Noteworthy bills that passed this session include:
- HB 354, a correction to the 2018 tax reform legislation, that included a fix to the misapplied sales tax on nonprofit admissions and changes to the bank franchise tax, Rep. Rudy
- SB 7 to clarify and allow arbitration agreements as a condition of employment, Senate President Stivers
- Several Social Issues - We didn't list all of the bill numbers here, but the House and Senate spent a significant amount of activity this session on issue that passed like: allowing permitless carry of a concealed weapon, prayer and religious freedom in schools and universities, and several abortion bills.
Obviously we did not list all of the bills of interest from this session, but we will be following up with a weekly report on client specific issues as usual. If you have questions don't hesitate to contact us.
Wednesday, March 13, 2019
Bill Lists - February 12, 2019
From Government Strategies:
During the 2019 session of the General Assembly, you can view the following bill lists updated nightly.
During the 2019 session of the General Assembly, you can view the following bill lists updated nightly.
Friday, March 8, 2019
Bill Lists - March 7, 2019
From Government Strategies:
During the 2019 session of the General Assembly, you can view the following bill lists updated nightly.
During the 2019 session of the General Assembly, you can view the following bill lists updated nightly.
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