Budget Cycle

Governor Submits Budget
January (10th legislative day)
Fiscal Year Begins
July 1 

Governor Signs Budget 
10 days after presentment

Budget Links

FY2023-2024 (enacted)
FY2023-2024 (proposed)
FY2021-2022 (enacted)
FY2021 (enacted)
FY2019-2020 (enacted)
FY2017-2018 (enacted)

Proposed Budget - Fiscal Year 2023-2024

On January 13, Kentucky Governor Andy Beshear released a proposed budget for fiscal years 2023 and 2024. The budget recommends general fund spending of $15.4 billion in fiscal 2023, an increase of 19.95 percent over fiscal 2022, and $14.7 billion in fiscal 2024, a decrease of 4.7 percent from fiscal 2023. The consensus revenue estimate for the general fund in fiscal 2023 is $14.09 billion, an increase of 2.1 percent over fiscal 2022, and in fiscal 2024 is $14.68 billion, an increase of 4.3 percent over fiscal 2023. Including beginning balances and other adjustments, general fund resources are projected at $15.69 billion in fiscal 2023 and $14.7 billion in fiscal 2024. The largest categories of general fund appropriations are education (39.6 percent), Medicaid (14.9 percent), criminal justice system (11.0 percent), and postsecondary education (9.3 percent). The current balance of the Budget Reserve Trust Fund is a little over $1.5 billion, the largest dollar amount ever and the highest ratio of balance to the enacted fiscal 2022 revenue estimate at 12.5 percent. The proposed budget provides $250 million in a direct appropriation in fiscal 2023, which would bring the balance to $1.76 billion or 12.5 percent of the fiscal 2023 estimated revenues. The budget also notes that recurring spending in both fiscal years is less than recurring revenues, with recurring revenues exceeding recurring spending by 4.5 percent in fiscal 2024.

Proposed Budget Highlights 

Looking to build on Kentucky’s economic momentum and make investments for the future, the governor’s proposed biennial budget includes a record investment in pre-K-12 education, state-changing economic provisions, crucial health and social services supports, and funds for responsible government operations. The budget also lays out the governor’s recommendations for the remaining $1 billion in American Rescue Plan Act (ARPA) State Fiscal Recovery Fund spending.


Investing in Education
  • The budget adds nearly $2 billion over the biennium to the current education budget, providing an additional $915 million in fiscal 2023 and $983 million in fiscal 2024.
  • Provides a 16 percent increase in SEEK funding, which is the formula funding program for elementary and secondary schools, including an increase to the base per-pupil of 12.5 percent (to $4,300 in fiscal 2023 and $4,500 in fiscal 2024).
  • Adds $175 million each year to fully fund school district costs for pupil transportation, an 81 percent increase in funding.
  • Includes $172 million in each year to fund universal preschool for all four-year-olds and continues the funding for full-day kindergarten.
  • Calls for a minimum five percent salary increase for all school personnel, fully funds the teachers’ pension and medical benefits, prevents any health insurance premium increases for school employees, and provides $26.3 million each year for a student loan forgiveness program for public school teachers.
  • Adds $67.5 million in fiscal 2023 and $90 million in fiscal 2024 to the base funding for public postsecondary education institutions, a nearly 12 percent increase over the biennium.

Health and Social Services Supports
  • Includes $6.0 million each year to significantly increase the number of nursing scholarships and double the maximum award to $3,000 per semester.
  • Fully funds the Medicaid program, including Medicaid expansion, based on an updated forecast. The budget assumes the increased federal match due to the COVID-19 public health emergency is effective through March 31, 2022.
  • Provides $150 million each year to extend the $29 per-diem reimbursement rate increase for nursing homes through June 30, 2024.
  • Includes $17.7 million in fiscal 2023 and $19.1 million in fiscal 2024 to fund the Public Health Transformation legislation enacted in 2020, with funds allocated to the 60 local health departments for workforce and operations support.
  • Adds 350 new social workers to bring the average caseload to 16 to fight abuse and neglect of children and also funds a social worker student loan forgiveness program ($2.1 million each year).

Economic Development and Infrastructure Investments
  • Includes $20 million each year for a competitive workforce initiative grant program.
  • Provides $250 million in one-time funds for Kentucky’s Site Identification and Development Program.
  • Includes $75 million to assist in the establishment of a state-of-the-art AgriTech research and development center in Eastern Kentucky.
  • Invests $250 million from the General Fund for Major Transportation Infrastructure Projects.
  • Provides $61.6 million in fiscal 2023 and $66.1 million in fiscal 2024 from the Road Fund for increased road and bridge match costs from the federal infrastructure bill.
  • Creates an Office for Broadband and provides $200 million in federal and state funds for the Broadband Deployment Fund.

Enhancing Fiscal Responsibility and Investing in Public Employees

  • Proposes a Disaster Relief and Recovery Fund, funded with an initial $100 million, to address the costs that state government incurs in responding to and recovering from natural disasters.
  • Provides $1.2 billion to pay down the debt of state government’s deferred maintenance.
  • Includes a five percent salary increase for state employees who did not receive other salary increases in November or December 2021 or January 2022.
  • Fully funds the actuarially determined contribution for all state employees for all retirement system plans and includes $250 million in fiscal 2023 and $500 million in fiscal 2024 to pay down the pension liability of the retirement system’s nonhazardous pension plan.
  • Includes an additional $13 million in fiscal 2023 and $29 million in fiscal 2024 to prevent health insurance premium increases for state employees.

ARPA Recommendations
  • $400.0 million in premium pay for essential workers
  • $250.0 million in water and wastewater infrastructure grants
  • $179.9 million for COVID-19 mitigation
  • $75.0 million for assistance to nonprofit organizations
  • $36.2 million for senior meals
  • $27.0 million for nursing student loan forgiveness and media effort
  • $24.0 million in child care assistance
  • $11.7 million for behavioral health facilities testing
  • $10.0 million for the travel industry