09/04/2026
LEGISLATIVE UPDATE
Representative Chris Lewis
Legislature continues budget oversight
While most of the state looks toward Labor Day weekend, a time when Kentuckians are thinking hard about what it means to work, earn, and build a future, the legislature’s budget work reflects that same spirit. The Interim Joint Committee (IJC) on Appropriations and Revenue and its budget review subcommittees (BRs) met the first week of September to hear updates on how various programs, agencies, and cabinets are implementing the new state budget.
By holding the line on spending, strengthening reserves, and insisting on responsible planning, lawmakers have kept Kentucky on solid footing without tax increases, and in fact have delivered tax cuts that let hardworking people keep more of what they earn. That commitment to disciplined budgeting shows up across every subcommittee’s work this month, from safeguarding investments and improving public services to supporting economic growth and long‑term stability for families and communities. This month’s meeting agendas included:
IJC on Appropriations & Revenue: Members heard from the budget review subcommittees that met this month. They examined several issues, including health data collection, spending in underserved areas, Budget Reserve Trust Fund returns, Kentucky Horse Park allocations, the HB 9 23RS GRANT program, Department of Corrections lawsuits, inmate transition of care, employee pay, and transportation contracts. Members also heard from the Kentucky Association of Highway Contractors about Kentucky’s road project letting process, as they highlighted how inflation is outpacing increased funding, creating uncertainty for contractors and contributing to reduced hours and workforce concerns.
BR Subcommittee on Justice & Judiciary: Members heard from the Department of Corrections on the history and status of its contract with Wellpath. The presentation also addressed ongoing litigation concerning the state’s obligation to reimburse county jailers for the care of state inmates housed in local facilities. The Department of Public Advocacy provided an update on the implementation of HB 762, which increased compensation for department attorneys and changed the agency’s responsibilities.
BR Subcommittee on Economic Development, Tourism, & Environmental Protection: Members first received a presentation from the Cabinet for Economic Development on Kentucky’s recent economic achievements, including national rankings and continued investment across the state through the GRANT program. Members also heard an update on significant improvements at the Kentucky Horse Park. These improvements are supported by state funding that advances arena upgrades, infrastructure repairs, museum renovations, and new visitor amenities, highlighting how these projects strengthen tourism, the community, and long-term economic growth across the Commonwealth.
BR Subcommittee on General Government, Finance, Personnel, & Public Retirement: Lawmakers discussed the State Investment Commission, the entity that oversees the investments of the Commonwealth with a goal of preserving principal, maintaining liquidity, and maximizing return. The commission includes the state treasurer, the secretary of the Finance and Administration Cabinet, the state controller, and two governor appointees representing banks across the state. An update was provided on the numbers from fiscal year 2025-2026.
BR Subcommittee on Transportation: Members heard from the Kentucky Transportation Cabinet (KYTC). An overview was provided to committee members on the process of Personal Service Design Contracts. Cabinet representatives explained their use of qualification-based selection in order to find the best consultant to complete the project. Requests for proposals are made by KYTC, and consultants submit their proposals for consideration. The selection committee then has the responsibility of choosing the consultant to lead the project. The cabinet also presented information on the cash management system used for the road fund. The cash-flow financing program allows projects and payments to extend, if needed, beyond the biennium they were allocated for.
BR Subcommittee on Health & Family Services: Legislators learned about Norton Children’s Hospital’s plans to build a pediatric care village in Jefferson County, which will include a full-service hospital for children with complex medical needs, research facilities, and expanded specialty services. Community input has shaped the planning process, with mental and behavioral health, autism, and neurosciences identified as the top three requested services. The project is expected to create around a thousand new jobs and generate a $2.94 billion economic impact from initial construction, while expanding access to care and attracting top talent. Phase One planning is expected to begin in early 2027.
As always, I can be reached anytime through the toll-free message line in Frankfort at 1-800-372-7181. You can also contact me via email at [email protected] and keep track through the Kentucky legislature’s website at legislature.ky.gov.