NEW: In the final hours of the legislative session, lawmakers expanded tax breaks for already-subsidized industries, continuing a pattern of opaque decision-making that keeps the public in the dark on costly legislation that benefits powerful industries.
kypolicy.org/hb-869-tax-b...
The 2026 Kentucky General Assembly ended Wednesday.
Things often move fast in Frankfort, especially at the end of session, so if you have questions about the new two-year state budget, other legislation or something else, we're here to help. #kyga26
The huge Budget Reserve Trust Fund balance that the legislature built up using COVID-related surpluses will diminish dramatically because of the spending on local projects and programs contained in the new budget. 1/
Small changes to the state budget are being made today. ~30 more earmarks are added using rainy day $, universities lose bond $ but gain some of cut operating funds, & $67M previously earmarked for state worker wage compression gets diverted. Updated here: kypolicy.org/budget-agree...
The spike in gas prices from the U. S. war in Iran is costing Kentuckians $175 million a month. That's more per driver than all but 3 states. 1/2
Action is also needed to make transportation more affordable.
Policy can support the transition to EVs so driving costs aren't subject to volatile oil prices. KY can also spend more on public transit and use regulatory and financing powers to make car insurance more affordable.
Most immediately, ending the war will reduce gas prices.
But that's just one part of a crisis that can be addressed by the state, which could put more money in people’s pockets by raising the minimum wage, supporting the growth of unions and creating a state child tax credit.
At a time when Kentuckians are struggling with the rising cost of living, the gas price surge is further reason for public action to address affordability.
NEW: The state agency that serves Kentucky’s most vulnerable children is facing significant cuts in the final budget agreement. #kyga26
NEW: A last-minute tax break allows Kentucky racetracks to keep 100% of state sales taxes generated during race meets.
This is yet another giveaway to an already heavily subsidized industry that keeps getting richer, even as the state makes painful budget cuts. #kyga26
Read all about it here: kypolicy.org/hb-757-sales...
NEW: A last-minute tax break allows Kentucky racetracks to keep 100% of state sales taxes generated during race meets.
This is yet another giveaway to an already heavily subsidized industry that keeps getting richer, even as the state makes painful budget cuts. #kyga26
The General Assembly is passing the budget agreement today. Reflecting the lost revenue from recent income tax cuts, it cuts & freezes funding for most services and underfunds current Medicaid benefits by $691 million. The initial @KyPolicy analysis here: kypolicy.org/budget-agree...
Our statement on the agreement for the next Kentucky state budget is below.
Find our analysis here: kypolicy.org/budget-agree...
What happened with SEEK in the final budget?
The budget passed by the House and Senate Thursday (FCCR in the chart below) increases the SEEK base per-pupil guarantee by less than 1% in 2027 and 3.6% in 2028. That leaves total SEEK funding 25% below 2008 levels after adjusting for inflation.
In HB 900, a bill accompanying the state budget, the legislature earmarks $1.76 billion for more than 300 projects.
Find the complete list here: docs.google.com/spreadsheets...
Our statement on the agreement for the next Kentucky state budget is below.
Find our analysis here: kypolicy.org/budget-agree...
HB 732 is another step toward a bleak future for hardworking men and women in Kentucky. #kyga26
Billionaire-inspired bill would separate KY workers from their rights kentuckylantern.com/2026/03/27/b...
HB 732 greenlights the separation of workers from over a century of hard-won rights.
Tell your Senator to stand with workers and oppose HB 732: act.aflcio.org/letters/stop...
Our analysis of this bill, which advanced through a House committee Thursday morning: kypolicy.org/worker-miscl...
When employers inaccurately and unlawfully treat employees as independent contractors, they're deprived of rights, protections and benefits, and Kentucky is deprived of tax dollars.
HB 732 would make this growing problem worse.
Our statement on the Senate's passage of its state budget:
The Senate budget eases some cuts proposed by the House by spending $ that the House put into the already huge rainy day fund. It also includes a 13th check for retirees. But it includes less in K-12 SEEK than the House budget and continues 7% cuts for many agencies.
At a time of rising grocery costs, SB 257 would create a host of new barriers for people to access needed food assistance, resulting in fewer Kentuckians receiving needed help and new costs to the state. #kyga26
When the state refuses to cover the full cost of public school transportation, districts are forced to take money from students and teachers to cover the gap.
The House budget continues this trend, underfunding school transportation by $93m in each of the next two years. The Senate should fix this.
