# Kentucky Senate passes $31 billion budget with agency cuts  
**Published:** 2026-03-23T15:16:08.000Z  
**Source:** [KY Center for Economic Policy](https://kypolicy.org/kentucky-senate-unanimously-passes-31-billion-state-budget-and-810-million-in-one-time-spending/)  
**AI-generated:** yes (claude-haiku-4-5-20251001)  
**Canonical:** https://feeds.lexingtonky.news/article/kentucky-senate-passes-31-billion-budget-with-agency-cuts

LEXINGTON, Ky. — [The Kentucky Senate unanimously passed a $31 billion state budget Wednesday](https://kentuckylantern.com/2026/03/18/kentucky-senate-unanimously-passes-31-billion-state-budget-and-810-million-in-one-time-spending/), 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](https://kypolicy.org), 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](https://www.leagueofwomenvotersofky.org/), 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](https://13.5wfpl.org), allowing time for potential veto overrides during the final days of the 2026 session in mid-April.

## Sources

- [KY Center for Economic Policy](https://kypolicy.org/kentucky-senate-unanimously-passes-31-billion-state-budget-and-810-million-in-one-time-spending/)
- [Kentucky Lantern article on Senate budget passage](https://kentuckylantern.com/2026/03/18/kentucky-senate-unanimously-passes-31-billion-state-budget-and-810-million-in-one-time-spending/)
- [Kentucky Center for Economic Policy analysis](https://kypolicy.org)
- [League of Women Voters of Kentucky](https://www.leagueofwomenvotersofky.org/)

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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 2 web searches. The original source is available at https://kypolicy.org/kentucky-senate-unanimously-passes-31-billion-state-budget-and-810-million-in-one-time-spending/.