Interim legislative update
Published 3:00 pm Thursday, August 3, 2023
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By Sen. Greg Elkins
I am enjoying the opportunity you have granted me to represent you in Frankfort as senator for Bath, Clark, Menifee, and Montgomery Counties and part of Fayette County. I hope you are enjoying your summer and have had a chance to recharge before the start of the new school year. I want to wish all of our students, teachers and parents well as students return to the classroom.
The Interim period marches on in preparation for the 2024 Legislative Session scheduled to begin on January 2. Below is some information we have gathered in Frankfort from our interim committee meetings.
Public pensions
As a member of the IJC on State Government, my first meeting last month consisted of an overview of our state’s public pension systems. It was beneficial to hear from representatives from the Kentucky Teachers Retirement System (KTRS) and the Kentucky Public Pension Authority, which oversees the Kentucky Employee Retirement System (KERS) hazardous and non-hazardous pensions, the County Employee Retirement System hazardous and non-hazardous pensions and the State Police Employee Retirement System.
The financial health of these retirement systems is essential to thousands in our communities. Fortunately, ensuring they are sustainable has been a top priority of the Kentucky General Assembly in 2017 after many years of being woefully underfunded. In the current state budget, KTRS was provided $1.28 billion to meet the required annuity contributions, which included nearly $480 million over KTRS’ budget request to help pay off past liabilities. KERS has received over $1 billion each year since 2019. KPPA and KTRS each report the system’s unfunded liabilities are improving. I look forward to participating in budget discussions in the 2024 session.
Sports betting
Lawmakers recently heard an update on the implementation of sports betting. The Kentucky Horse Racing Commission recently established regulations and sports betting is expected to become available for residents by the end of September. Revenue estimates from sports betting are expected to be around $23 million. Most of those funds will be earmarked to stabilize public pensions and a portion will be set aside to address gambling addiction.
Teacher Shortages
Members of the Coalition to Sustain the Education Profession shared recommendations from an upcoming report on shortages that the group plans to release in August. Last year, the Frankfort-based Kentucky Association of School Administrators (KASA) convened the coalition. Recommendations discussed Tuesday include extending the GoTeachKY program to every school district, establishing a statewide mentoring program and a tenure review committee. Additionally, the coalition also supports creating an educator stabilization fund to help attract and retain high-quality teachers in low-performing schools and for critical need positions.
Testimony included recognizing lawmakers’ actions to implement a first round of recommendations during the 2023 legislative session. That included substantial and record funding levels through the state’s SEEK formula, which provided many school districts across the commonwealth the financial flexibility to offer pay increases for our teachers. With the cost of living remaining high, salaries will continue to be vital to the discussion.
EKY and WKY Relief Funds
Following the mismanagement of kind contributions from residents of Kentucky and beyond, untold numbers of checks intended to benefit victims of flooding and tornadoes were sent to those unaffected by the disasters. The co-chairs of the Legislative Oversight and Investigations Committee formally requested the state auditor of public accounts to audit the Eastern and Western Relief Funds. The state auditor confirmed the funds would be audited.
Juvenile justice
The Legislative Oversight and Investigations Committee has approved over two dozen recommendations to help stabilize Kentucky’s troubled juvenile justice system after fires and riots at two state detention centers occurred last year. In October, committee members directed staff to investigate two fires and an escape that occurred at the Jefferson Regional Juvenile Detention Center in August, and a riot at the Adair Regional Juvenile Detention Center in November. The nine-month investigation into all eight of Kentucky’s regional juvenile detention centers ended with 30 recommendations made to the Department of Juvenile Justice (DJJ).
In a report recently adopted, the committee calls for more top-down oversight of detention facilities, more training for staff, better monitoring of staff grievances and work hours, and improved tracking of offenders and serious incidents.
The Legislative Oversight and Investigations Committee is our main investigative committee for the Kentucky General Assembly. The 16-member panel, comprised of legislators from both the House and Senate, has the authority to review the operations of all state agencies, including their programs and funding structure.
Largest surplus in state history
We are glad to see a report that Kentucky has the largest surplus in state history. Comprehensive tax reform has been criticized by some, including the governor who has largely vetoed measures to lower the income tax and broaden the tax base. These tax reforms are moving away from penalizing production to empowering taxpayers. This movement to a consumption tax has proven successful in other states. I’m excited to be a part of efforts to further lower working Kentuckians’ income tax because it means you get to keep more of your hard-earned money.
Senator Greg Elkins, R-Winchester, represents the 28th Senate District including Bath, Clark, Menifee, and Montgomery counties and an eastern portion of Fayette County. He was elected to serve the 28th District in a special election, filling a vacancy left by former state Senator Ralph Alvarado. Elkins is a member of the Interim Joint Committees on Local Government, State Government, Families and Children, and Health Services. He is a liaison member of the Budget Review Subcommittee on Human Services. Elkins is also an Administrative Regulation Review Subcommittee member.