As we near the end of the 2026 session of the Kentucky General Assembly, the Senate has officially dropped their version of a budget, and it includes possible spending cuts but makes allowances for spending in other areas.
The Senate’s $31 billion budget proposal is similar to the House budget in several ways, but it also differs in many others, including passage of a $810 million in one-time spending. Speaking with WHOP News on the matter, Senator Craig Richardson says the budget will now head to conference, so it still has some changing to do before they have a final spending plan to vote on.
The current version does call for fairly hefty reductions in spending, including cuts to state services of four percent in 2027 and three percent additionally in 2028. Senator Richardson that reflects the legislature’s attempts to meet their constitutional obligations while also further reducing taxes.
He says in the next phrase of the process, he will continue to apply what pressure he can to make sure needs in his district, and the state as a whole, are met.
A big focus for him will be how the burden of Medicaid is met by these spending plans—he says he doesn’t really want to reduce funding to that program, but spending does need to be reigned in.
Several programs and agencies are exempt from these possible cuts, including Veterans Affairs, Behavioral Health, Family Resource and Youth Service Centers, Corrections, Pension contributions, Postsecondary Institutions, Kentucky Educational Television, state police, the Department of Public Advocacy and more. The Senate proposal increases the SEEK base per-pupil guarantee from its 2026 level of $4,586 per-student to $4,626, but no additional funding was provided for teacher raises.
This version also contains a ‘13th’ check for state retirees who have not received a cost-of-living adjustment since 2011.