Every two years, our state lawmakers convene to shape the Commonwealth’s biennial budget – taking into consideration the needs across Kentucky, the limitations or opportunities of the revenue, and, especially of late, sustaining a healthy rainy day fund. Kentucky’s last few budgets were bolstered by federal COVID dollars.

This time around, our lawmakers not only had to navigate less federal support, but also the budget realities that federal HR1 has brought to our bottom line – a larger share of funding programs, including Medicaid and SNAP (the supplemental nutrition assistance program). 

Kentucky, and most states across the country, are navigating uncertainty around federal policy changes that impact the state budget, as well as hedge-betting the impact the economy will have on future revenue. The word ‘cautious’ comes to mind when we look at where the budget landed. There was a real emphasis on reducing year-over-year spending but a clear willingness to invest in one-time projects across the Commonwealth. 

Check out the state budget breakdown below outlining how kids won and where there were missed opportunities for investments. Review the blog post breaking down bills that impact kids, including wins, missed opportunities, and areas of progress.

Missed Opportunities for Kids in the Budget

Despite the aforementioned appropriations for kinship and foster care within the Department for Community Based Services (DCBS) budget, the legislature did not include a line item to ensure that every youth in foster care receives a state-issued ID upon entering care.

Without a state-issued ID, youth in foster care may face barriers to employment, housing, and accessing services as they transition into adulthood and are at greater risk of exploitation and trafficking while in care. Even though the line item was not included, the Transitional Services Branch of DCBS has launched an initiative known as Operation ID and is working with the Kentucky Transportation Cabinet to ensure youth have state-issued identification before they age out of care.

Once again, advocates across the Commonwealth called on the General Assembly to meaningfully invest in addressing the youth nicotine use crisis. Senate Bill 74 and House Bill 187 aimed to direct JUUL settlement dollars toward youth nicotine prevention and cessation programming – a critical support to prevent initiation and help youth quit. Despite gaining momentum among Health Services Committee members in the Senate, SB 74 ultimately stalled and did not receive a needed hearing in the Senate A&R committee.

The state budget typically includes a line item to invest state dollars in prevention and cessation programming, which presented a second opportunity to direct JUUL settlement dollars – currently being absorbed in the General Fund – toward helping curb youth vaping and nicotine use. The final version of House Bill 500 failed to invest any new dollars toward these needed programs, including any new state dollars or the JUUL settlement dollars available. 

Rising costs of food, diapers, housing, and child care, are making it increasingly difficult for many Kentucky families to make ends meet.

• Senate Bill 81 would have established a refundable state child tax credit for Kentucky families with children under age six, a proven investment that helps working families stay afloat.
• Senate Bill 258, House Bill 865, and House Bill 114 would have removed Kentucky’s sales tax on diapers. Senate Bill 58 and House Bill 302 would have established a diaper trust fund to support diaper access programs statewide. Diapers are essential for infant and toddler health and hygiene, yet many families with young children experience diaper need and struggle to afford enough diapers to keep their children clean and healthy. Unfortunately, none of these proposals advanced and budget investments were not made to address this critical need.