Beshear: KY future stronger than ever, urges governing without division

The state of the commonwealth is “stronger than it has ever been,” Kentucky Gov. Andy Beshear said in his annual address to a joint session of the Senate and House of Representatives Wednesday evening.

Beshear, less than a month into his second term, delivered a characteristically optimistic speech, painting a bright picture of Kentucky’s future and economy — themes that tracked closely with his December budget address, inauguration message and campaign trail stumping.

“Over the past four years, we have gotten through so many hard times together,” he said. “And now, we are getting to the good times together. We have arrived here by leading with kindness, compassion and empathy for one another.”

Wednesday also marked the second day of the 60-day 2024 General Assembly. Lawmakers filed more than 100 bills and resolutions Tuesday alone, tackling such topics as “divisive concepts” on college campuses, modifying the schedule of the gubernatorial election, vaccination incentives, the death penalty and cannabis, and filed dozens more Wednesday.

To hear lawmakers tell it, Beshear’s relationship with the GOP-dominated legislature has been fraught to non-existent. On Wednesday, the governor acknowledged he wasn’t everyone’s choice for chief executive on Election Day.

“It’s a new year, and everyone has something to be excited about. Many of you are excited that I’ll be serving as your governor for the next four years,” Beshear said, pausing. “And the rest of you are excited that I am now term-limited.

“Regardless, of your perspective, it gives us a chance to push politics aside and move our commonwealth forward, together.”

Hours before Beshear gave his speech, the Republican Party of Kentucky released a statement saying the governor would “claim credit for everything, from beautiful sunrises to bountiful harvests.”

“When jobs grow from policies like right-to-work and tax reform, Andy acts as though he backed them,” party spokesperson Sean Southard wrote.

“Kentucky’s strength lies in Republican leadership, notably Senate President (Robert) Stivers and Speaker (David) Osborne. Republicans are committed to a sound budget, tackling rising crime and addressing our students’ educational needs.”

Beshear said there’s plenty of credit to go around for the strength of Kentucky’s economy.

“We set a record for new private sector investment — more than $28.7 billion dollars — the most secured during the tenure of any governor,” he said. “I say ‘we,’ because economic development is a team sport. It takes both the executive and the legislative branches, along with so many hard-working local officials and business leaders.

“Because of our work — because of all of our work — the eyes of the world are on Kentucky and what we are doing.”

Beshear touted what can be accomplished when Frankfort can “govern without name-calling or scapegoating,” such as medical marijuana and sports betting, both passed in 2023 in a bipartisan vote.

The Democrat encouraged everyone to “push away the division.”

“To me, improving life right here at home is the most important focus that we can have,” Beshear said. “These next four years are our chance — Kentucky’s chance — to be the difference, to be both an economic and a moral leader of this country.”

Beshear’s budget request

Beshear unveiled his $136.6 billion budget proposal for the 2024-2026 biennium in December and recapped many of those highlights in his Wednesday address.

High-profile items include an 11% raise for all school employees, fully funding Universal Pre-K, $1.1 billion for high-speed broadband implementation, $500 million for cleaner water and an 8% increase in public higher education funding.

But Republicans in the legislature — who hold a veto-proof super-majority — also have been working on a budget, though their plan hasn’t been publicly released.

GOP leaders have said to expect a plan that will continue to work toward the goal of eliminating the state income tax.

The tax rate fell from 4.5% to 4% Monday, which marked the second consecutive year of a reduction. However, the rate will not decrease to 3.5% in 2025 under the law’s current requirements.

“That will be the House Republicans’ goal until the income tax is gone,” House Majority Floor Leader Steven Rudy previously told the Herald-Leader. “We will always budget to the next trigger.”

Also included in Beshear’s budget proposal: $500,000 for an economic development office in South Korea in hopes of luring more Korean companies to do business in the commonwealth.

A South Korean company, SK On, is a partner with Ford Motor Co. in BlueOval SK in Glendale, the largest economic development project in Kentucky’s history.

Republican reaction

Republican leaders in the legislature have expressed caution and skepticism about Beshear’s proposals. That’s significant because their four-fifths majorities in both chambers largely control the flow of legislation.

When it comes to Universal Pre-K and across-the-board teacher and school staff raises, two of Beshear’s big-ticket items, Stivers and Osborne said they don’t believe there’s support for either in their caucuses.

Stivers added there’s a “strong desire for how we create day care” for working-class families, but not much support for Universal Pre-K. Osborne said while Beshear backs direct raises for educators, the House will likely continue to increase funding for education through the per-pupil state formula that provides money to local school districts.

Osborne also said while Beshear’s budget proposal has been out for about two weeks, the House version will be unveiled in a week or two.

When asked on Kentucky Educational Television after the address where their caucuses and Beshear might align, Osborne and Stivers mentioned investments in infrastructure, as well as aid to communities recovering from historic tornadoes and flooding.

In previewing the rest of the session, legislative leaders also mentioned focusing on addressing crime, maternal health, higher education, energy and continuing to cut the state income tax.

Stivers also said discussions have begun between the House and Senate GOP caucuses about adding exceptions for rape and incest to the state’s near-total ban on abortion, an issue that Beshear rallied around in his campaign.

“At this point in time, I can’t give you any updates about what the position would be, but there is definitely discussion about exceptions and what may happen,” Stivers said.

Newly elected Attorney General Russell Coleman responded positively in at least one way to Beshear’s address. He liked the idea of giving Kentucky State Police troopers another raise.

“I’m particularly pleased to see the proposed increase in funding for the Kentucky State Police and the courageous men and women of law enforcement across the commonwealth,” he said. “I fully support providing those who carry a badge with the resources and equipment they need to protect families and keep themselves safe.”

This story was originally published January 3, 2024 at 8:06 PM.

Austin Horn

Lexington Herald-Leader

706-571-8597

Austin Horn is a politics reporter for the Lexington Herald-Leader. He previously worked for the Frankfort State Journal and National Public Radio. Horn has roots in both Woodford and Martin Counties.

Tessa Duvall

Lexington Herald-Leader

859-334-0430

Tessa has been the Herald-Leader’s Politics and Public Affairs Editor since March 2024, after acting as Frankfort Bureau Chief since joining the paper in August 2022. A native of Bowling Green and a graduate of Western Kentucky University, Tessa has also reported in Texas, Florida and Louisville, where she covered education, criminal justice and policing.