# Kentucky Legislature Passes $31 Billion Budget, Sending to Governor  
**Published:** 2026-04-16T02:31:05.000Z  
**Source:** [KY Center for Economic Policy](https://kypolicy.org/kentucky-legislature-passes-state-budget-heres-what-made-the-cut/)  
**AI-generated:** yes (claude-haiku-4-5-20251001)  
**Canonical:** https://feeds.lexingtonky.news/article/kentucky-legislature-passes-31-billion-budget-sending-to-governor

LEXINGTON, Ky. — The Kentucky General Assembly passed a $31 billion two-year state budget on April 1, sending [House Bill 500 to Gov. Andy Beshear's desk](https://www.courier-journal.com/story/news/politics/2026/04/01/kentucky-passes-fy-2026-2028-budget-legislature/89424821007/) after weeks of contentious negotiations over education, healthcare and spending priorities.

The budget, which takes effect July 1, represents [a compromise between the GOP-controlled House and Senate](https://kypolicy.org/kentucky-legislature-passes-state-budget-heres-what-made-the-cut/) and includes approximately $500 million more in spending than the previous two-year budget. However, it falls short of several gubernatorial priorities and sparked heated debate on the House floor.

The measure increases per-pupil funding through the Support Education Excellence in Kentucky program by 2 percent over the biennium, providing $4,626 per student in fiscal year 2026-2027 and $4,792 in 2027-2028. The budget totals over $7 billion in SEEK funding from the state's general fund. Yet [Democratic Rep. Chad Aull of Lexington argued the increase remains insufficient, noting that Kentucky ranks 48th nationally in starting teacher pay at roughly $40,000 annually, compared to $50,000 in West Virginia and $55,000 in Tennessee.](https://www.lpm.org/news/2026-04-02/kentucky-lawmakers-pass-32b-state-budget-send-to-gov-beshear)

The budget rejected Beshear's request for $159 million in educator raises and universal pre-K for 4-year-olds, instead scrapping a proposed "13th check" for state retirees. However, it does restore funding for the [Dolly Parton Imagination Library](https://kypolicy.org/) program and allocates $44 million toward foster care services.

Medicaid receives $6.2 billion in general fund spending over the biennium, along with an additional $290 million "lockbox" requiring legislative approval before access. The budget also sets aside roughly $350 million for the state's "rainy day" trust fund and approves [$1.7 billion in one-time spending](https://12.1/) from reserve funds for infrastructure, economic development and regional projects, including $90 million for downtown Louisville revitalization.

The Senate passed the budget unanimously 38-0, while the House approved it 73-21 after Republicans ended debate Wednesday evening. [House budget committee chair Jason Petrie, R-Elkton, defended the plan as "disciplined fiscal management," arguing that "restraining the growth in spending is not a cut."](https://kypolicy.org/) The budget cuts base funding for most state agencies by 7 percent over the biennium, though juvenile justice, some universities and pension systems are exempt.

Beshear has two weeks to issue any line-item vetoes before lawmakers return to the Capitol on April 14 for a two-day veto override period. Republicans hold supermajorities in both chambers, making any veto override likely.

## Sources

- [KY Center for Economic Policy](https://kypolicy.org/kentucky-legislature-passes-state-budget-heres-what-made-the-cut/)
- [Courier-Journal article on the Kentucky Legislature passing the state budget](https://www.courier-journal.com/story/news/politics/2026/04/01/kentucky-passes-fy-2026-2028-budget-legislature/89424821007/)
- [Louisville Public Media reporting on the budget with Rep. Chad Aull's comments](https://www.lpm.org/news/2026-04-02/kentucky-lawmakers-pass-32b-state-budget-send-to-gov-beshear)

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This article was generated by AI (claude-haiku-4-5-20251001) based on source material from KY Center for Economic Policy, enriched with 3 web searches. The original source is available at https://kypolicy.org/kentucky-legislature-passes-state-budget-heres-what-made-the-cut/.