State Budgets 2012: Kentucky



To see more state budget news and information, visit State Budgets 2012

Budget Background:

  • Fiscal Year Begins: July 
  • Frequency of Legislative Cycle: Annual
  • Legislative Session for 2012: Convened January 3, 2012
  • Frequency of Budget Cycle: Biennial (for example, FY 2011 & 2012)

Learn more from the National Association of State Budget Officers

Budget News and Information: 2012


Official Budget Documents:

  • Conference Committee Report to HB 265, click here
  • House Bill 265, unofficial copy as of April 16, 2012, click here
  • Veto Message from Governor Beshear, April 11, 2012, click here

4/17/12: Transportation budget, pain pill bill set for House vote

The House is set to vote Wednesday on a more than $4.5 billion transportation budget bill and a measure aimed at curbing prescription pain pill abuse after the proposals cleared separate committees on Tuesday.

House Bill 2, the transportation operating budget, and House Bill 1, the prescription drug measure, are the sole pieces of legislation to be considered in the special legislative session that started Monday. The session is costing taxpayers about $60,000 a day.

Read more: Lexington Herald-Leader

4/14/12: Angry Steve Beshear calls legislative special session for Monday

Gov. Steve Beshear and Senate President David Williams exchanged bitter barbs Friday in a scathing blame game over failures in the 2012 General Assembly and the need for a costly special session to address unfinished business. The governor signed a proclamation for the special session Friday morning that specifically called out Williams for “rank partisanship,” even as it called on lawmakers to return Monday and work out a final deal on the Transportation Cabinet budget and a bill to combat prescription drug abuse.

Read more: Courier-Journal

4/11/12: Beshear vetoes portions of bare-bones state budget

Gov. Steve Beshear used his line-item veto power Wednesday to delete some spending proposals that lawmakers added to a bare-bones state budget.

The second-term Democrat also removed a provision that required him to slash an additional $80 million from existing government programs.

The two-year, $19 billion budget approved by lawmakers on March 29 included no pay raises for the more than 30,000 government workers and also removed cost-of-living increases for some 200,000 retirees.

Read more: Lexington Herald-Leader

3/30/12: General Assembly approves budget with little for new projects, funding cuts

The General Assembly approved a compromise two-year state budget Friday that provides little money for new projects and cuts funding by 8.4 percent for many state agencies and 6.4 percent for state universities.

The vote on House Bill 265 was 36-1 in the Senate and 81-7 in the House. The measure now heads to Gov. Steve Beshear's desk for action. It was the first time since 2006 that the General Assembly passed a two-year budget on time.

3/29/12: Kentucky House and Senate reach deal on state budget

House and Senate negotiators reached final agreement early Thursday on a $19.3 billion state budget for the two-year period beginning July 1.

The agreement was reached at about 2:40 a.m., which is just in time for the final version of the bill to be prepared and printed for final votes in the House and Senate on Friday afternoon.

Friday will be the 59th day of a legislative session that can last no more than 60 days. Lawmakers plan to vote on the budget and other bills then, and then reconvene for its final day on April 12 to consider overriding any vetoes of bills that may be issued by Gov. Steve Beshear.

Read more: Courier-Journal

3/23/12: Kentucky Senate approves its version of state budget

The Senate approved its version of the state’s $19.3 billion budget for the next two years Thursday night — a plan that differs from the House proposal primarily by taking additional steps to curb the state’s debt.Though it made many changes to the two-year general fund spending plan, most were small.

Read more: Courier-Journal

3/20/12: House panel considers cap on state debt

The House budget committee heard discussion Tuesday on the Senate priority bill to place a cap on state debt, but it didn’t vote on the measure.

And with only eight days left in the 2012 session, time is running out on Senate Bill 1.

SB 1 would, beginning in 2014, limit the state to spending no more than 6 percent of its revenue each year on debt payments.

Read more: Courier-Journal

3/7/12: Ky. House passes state budget that imposes cuts

With Kentucky rebounding slowly from economic recession, the House passed a $19.5 billion biennial budget Wednesday that imposes 8.4 percent cuts on most state agencies.

Even some 200,000 state and local government retirees took hits when lawmakers erased 1.5 percent cost-of-living increases from their monthly pension payments.

The House voted 78-17 to pass the budget, which now goes to the Senate for consideration.

Read more: Courier-Journal

2/26/12: Budget chairman foresees no major budget overhaul

No new taxes and no pay raises will likely remain cornerstones of the next state budget, a key Kentucky lawmaker said Sunday.

House Appropriations and Revenue Committee Chairman Rick Rand told reporters he expects no major overhaul of Gov. Steve Beshear's $19.5 billion, two-year budget proposal. Lawmakers will likely do only "fine tuning" to the Democratic governor's austere spending plan, leaving state workers with no promise of bigger paychecks.

House lawmakers spent Sunday meeting privately at the Capitol to review Beshear's budget proposal, which could be presented for a floor vote within two weeks.

Read more: Lexington Herald-Leader

2/23/12: Beshear accuses David Williams of sabotage after Senate kills gambling

A bid to allow casino gambling in Kentucky fell short of passage Thursday when the state Senate voted 21-16 against it. One senator was absent.

1/17/12: Gov. Beshear: Deep, Painful Cuts Required to Balance Budget

Most state agencies will see cuts of 8.4 percent in the first year of the biennium, Fiscal Year 2013, and then straight-lined budgets in the second year, Fiscal Year 2014.  These reductions are in addition to cumulative cuts of 30 percent or more made to many agencies over the last four years.

Read more: Governor's Press Release

1/17/12: Full text of Gov. Steve Beshear's 2012 budget address

Read more: Lexington Herald-Leader


Budget News and Information: Previous Budget Cycles


Presentation by Budget Director to legislature about HB 1 to amend biennial budget during the special session

3/25/2011: Gov. Steve Beshear vetoes most provisions of Medicaid bill

Gov. Steve Beshear on Friday stripped the Medicaid budget bill of cuts to education as well as other provisions, leaving what amounts to his original proposal for dealing with the program’s funding shortfall. Beshear's veto brings nearly to an end the struggle that pitted the governor and his allies in the Democratic-controlled House against Senate President David Williams and his Republican-controlled Senate over how to deal with a $139 million shortfall in this year's Medicaid budget.

In a surprise move that effectively concluded the special session, the House agreed Thursday night to pass the Senate's version of the Medicaid bill — with an understanding that Beshear would veto most of it so that it would resemble the approach preferred by Beshear and the House.

Read more: Courier-Journal

3/15/11: House leaders discussing compromise Medicaid plan

House Speaker Greg Stumbo said Tuesday that he's working with the chamber’s Republican leaders on a compromise plan to break the deadlock over balancing the state Medicaid budget.

Read more: Louisville Courier-Journal

3/9/11: Gov. Steve Beshear calls for special session Monday over Medicaid impasse

Even before the 2011 General Assembly ended, Gov. Steve Beshear announced Wednesday that he will call lawmakers back to Frankfort on Monday to deal with the state's Medicaid budget shortfall, blaming Senate President David Williams for this week's impasse.

Read more: Louisville Courier-Journal

2/11/11: House approves Medicaid budget fix

To balance Kentucky's $6 billion Medicaid budget, House Bill 305 would move about $166 million from next year's Medicaid budget to the current year, an action requested by Gov. Steve Beshear.

Read more: Lexington Herald Leader