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Kentucky - Adjournment Graphic

Kentucky adjourned its 60-day 2018 legislative session sine die on April 14, and Governor Matt Bevin (R) finished acting on the bills sent to his desk on April 26. Controversy and high emotion surrounded this year’s session from beginning to end. Just days after the House opened its session, then-House Speaker Jeff Hoover (R) took to the floor to resign his leadership post due to reports of sexual harassment claims and settlements. Controversy continued to swirl up until the very end of the session, when Governor Bevin told reporters that children were left vulnerable to drugs, sexual assault, and harm due to public school closures that allowed teachers to protest at the Capitol over the state’s pension reform bill. Governor Bevin issued an apology a day later, saying his remarks had “unintended consequences.” Before adjourning for the year, the GOP-controlled House passed a pair of resolutions condemning Bevin’s comments.

Legislative Highlights

  • The fiscal year 2018-2020 budget measure (HB 200) calls for 6.25-percent baseline cuts for most state agencies. The two-year budget bill also boosts per-pupil funding for K-12 education to $4,000 per student in each fiscal year. However, Governor Bevin vetoed the measure, stating that the bill does not result in a balanced budget as required by the state constitution. Lawmakers voted to override the governor’s veto on April 13.
  • Legislators passed a package of tax reform bills that are estimated to bring about $400 million in additional tax revenue during the 2018-2020 budget period. The reforms include a flat 5-percent income tax for all individuals and companies, a sales tax levy on previously untaxed services, and an increase in the tax on cigarettes. Citing concerns that the tax reform bills fail to make the state more financially stable, Governor Bevin vetoed the tax package. Once again, the legislature overrode the veto and the tax reform package became law.
  • Hours after its introduction, lawmakers passed a pension reform measure (SB 151) that attempts to stabilize the public pension system affecting teachers and other public employees. Changes include a new benefit plan design for new teachers, changes to teacher sick days, and removing death benefits for certain participants. Cost-of-living increases were unchanged, leaving those at 1.5 percent annually. Passage of the pension measure led to widespread teacher protests and school closures. Attorney General Andy Beshear (D) sued the governor, claiming the bill violates the “inviolable contract” meant to preserve public employees’ benefits at the same level promised when they were hired. Beshear also argues that the legislature acted too fast, ignoring a three-day rule in the state constitution that says a bill must be read three times on three different days in each chamber before it is approved.

Election Preview

Kentucky voters will go to the voting booths on November 6 for the general election, with a closed primary held on May 22. This year, all 100 state house seats and 19 out of 38 state senate seats are up for election. Governor Bevin is not up for reelection until 2019.