Kentucky Senate passes its version of new state budget

FRANKFORT, Ky. (AP) — The Kentucky Senate on Thursday passed its version of a new state budget that reflects an expected downturn in tax collections as the new coronavirus inflicts damage on the economy.

The Senate action was another phase in the budget-writing process. The next step will occur when House and Senate conferees resolve differences in their budget plans.

Reflecting the new economic uncertainties, the Senate version includes “bumpers” that would stop certain spending increases if state revenues fall short of projections.

“Frankly, we do not know, nor do the experts, exactly where we will end up," said Sen. Chris McDaniel, chairman of the Senate Appropriations and Revenue Committee.

Regarding the state’s main funding formula for K-12 schools, known as SEEK, the Senate’s spending plan calls for a per-pupil base guarantee of $4,161 in each year of the two-year period.

“This budget contains more per-pupil funding for SEEK than in the history of any budget presented by a governor or another body in the General Assembly,” McDaniel said.

But under the Senate's plan, school districts would have to tap into SEEK funding to cover teacher pay raises and instructional materials. That's in conflict with Gov. Andy Beshear's budget proposal, which earmarked funds for a $2,000 across-the-board pay raise for teachers.