LEXINGTON, Ky. — The Kentucky Senate unanimously passed a $31 billion state budget Wednesday, advancing a spending plan that includes cuts to state agencies while preserving funding for schools, pensions and law enforcement.

The 38-0 vote reflected bipartisan support for the budget bill, which allocates $31,011,874,600 in General Fund revenues for the next two fiscal years. The budget also passed legislation to spend $810 million from the Budget Reserve Trust Fund, commonly known as the state's "rainy day fund," though specific uses for those appropriations have not yet been detailed.

Senate Appropriations and Revenue Committee Chair Chris McDaniel, R-Ryland Heights, told lawmakers that most state agencies will see cuts to their allocations of at least 4%, though several areas received exemptions. Funding for Kentucky State Police, juvenile justice, prison operations, prosecutors, public defenders and teachers' pensions were protected from reductions.

The budget includes a 13th check for state retirees, funded by tapping $350 million from the Kentucky Insurance Regulatory Trust, a fund financed by insurance fees. McDaniel said retirees have not received a cost-of-living adjustment since 2010. The Senate is allocating $81 million from that transfer for the one-time payment to address rising costs.

The Senate budget differs from the House proposal, which allocated about $34 million less. Key differences include increased funding for higher education and Medicaid compared to the House version. McDaniel said approximately $3.9 billion would remain in the Budget Reserve Trust Fund under the Senate's proposal.

The rapid pace of budget passage drew criticism. The 228-page budget became publicly available on the legislature's website just hours before the Senate voted on it. Sen. Jared Carpenter, R-Berea, acknowledged he hadn't reviewed the full bill before passage, describing it as "a pretty fast process once we get it in our hands."

The League of Women Voters of Kentucky has criticized moving major legislation through committee and to a final vote in a single day, arguing it limits public input. McDaniel defended the timeline, saying the lengthy budget development process and limited time remaining in the legislative session necessitated swift action.

The budget heads to a conference committee where House and Senate leaders will reconcile their versions before sending the finalized plan to Democratic Gov. Andy Beshear. Lawmakers are expected to send the final budget to the governor by April 1, allowing time for potential veto overrides during the final days of the 2026 session in mid-April.