Governor Beshear Delivers State of the Commonwealth

Governor Andy Beshear delivered his State of the Commonwealth and Budget Address last night, outlining statewide economic conditions and proposed budget priorities. The address covered economic development, housing, infrastructure, public safety, health care, and education, with several proposals that intersect with local government responsibilities and services. 

The Governor cited more than $45 billion in private-sector investment and 68,000 jobs created statewide over the past six years, with average wages nearing $30 per hour. His budget includes $70 million for site development, $100 million for infrastructure supporting large projects, and $25 million for a Rural Economic Development Fund targeted to counties without recent project announcements. Economic development activity was discussed across multiple regions of the Commonwealth, reflecting both urban and rural communities. 

Housing and infrastructure were also addressed. The address included discussion of ongoing disaster recovery efforts in Eastern and Western Kentucky, as well as a proposed one-time $150 million investment from his Budget Reserve Trust Fund into the Affordable Housing Trust Fund. According to his budget, the funding is intended to leverage private investment to support housing development statewide. Transportation projects discussed included the Mountain Parkway Expansion, the I-69 Ohio River Crossing approach, and the U.S. 460 Corridor in Pike County. 

Education funding was identified as a central component of his budget. The Governor stated that Pre-K for All is the primary budget priority. Budget items related to this initiative and education infrastructure include $10 million for a Pre-K for All information system, $50 million to support renovation grants for secondary career and technical education facilities, $42 million for an escrow reserve to allow Eastern Kentucky University to move forward with an accredited osteopathic medicine program, and $17.9 million to pay down the unfunded liability of Kentucky’s Affordable Prepaid Tuition program. The address stated that the Pre-K for All initiative is intended to increase kindergarten readiness, parental earnings, and workforce participation as the proposal advances through the legislative process.