Legislature returns $2.7 billion to Kentucky communities with passage of House Bill 1

Frankfort, Kentucky (March 28, 2024) – Members of the House voted today to approve legislation that provides $2.7 billion over the next two years to fund projects within state government and in communities throughout the Commonwealth. The measure, sponsored by House Appropriations and Revenue Chair Jason Petrie, was presented by Vice Chair Josh Bray. It now goes to the Governor for his consideration.

“These investments will improve quality of life and economic development opportunities across Kentucky,” Bray said. “We’re allocating millions to improve road, rail, river, air, and water infrastructure and make targeted investments in school facilities, public pensions, tourism, and community development.”

Included in HB 1 is $260 million for water and wastewater infrastructure projects in the first year, with another $84.7 million in the second year; $230 million over the biennium towards public pension liabilities; $35 million in each fiscal year for airport capital improvements; and $35 million in each fiscal year towards economic development efforts through the Kentucky Product Development Initiative.

“I’m incredibly pleased to see funding for all regions, and particularly for our postsecondary institutions. In addition to the funding commitments found in the budget, HB 1 includes $220 million for projects like the aviation program at Eastern Kentucky University, a vet tech program at Murray State University, and the applied energy research program at the University of Kentucky,” added Representative Adam Bowling, Appropriations and Revenue Vice Chair. “We’ve also provided funding to the community and technical college system to support the great work they’re doing to train the next generation of our aviation workforce.”

In addition, HB 1 sets aside $100 million in each fiscal year for the GRANT program; $50 million in each year to support approved mega-development projects; $10 million in each year to the Kentuckiana Works program to support workforce training; and $18 million in each year for maintenance and upgrades at the Kentucky Horse Park.

“Let’s be clear, we have this opportunity because of the General Assembly’s commitment to growing the state’s budget reserve trust fund. When we began, we had only enough in the fund to provide for the state for three to four days. Today we have $3.7 billion, far more than even best practice requires. This provides us with an opportunity to make a big impact in several areas of opportunity and need,” Petrie said.

House Speaker David Osborne added to the praise for HB 1, as well as emphasizing the measure’s significance.

“This proposal provides the tools for generational change in communities of all sizes, in all regions, and for all Kentuckians. It is a blueprint for progress and prosperity and a commitment to the common good,” House Speaker David Osborne added. “Investing taxpayer money wisely ensures economic growth, infrastructure development, education, healthcare, and social welfare, fostering a prosperous and sustainable society. I appreciate the work put into crafting this legislation and the intentional investments it makes.”

Once legislation passes the legislature, a governor has ten days to review it and can sign it into law, veto it, or allow it to become law without his signature. Funding measures like HB 1 can also be line-item vetoed. For more information about this legislation and the work of the Kentucky General Assembly, visit legislature.ky.gov.

The Southeast Kentucky Chamber of Commerce is located at 178 College Street in Pikeville and serves more than 500 businesses in eight Eastern Kentucky Counties: Floyd, Johnson, Knott, Lawrence, Letcher, Magoffin, Martin, and Pike. The Chamber’s mission is to serve the businesses of Southeastern Kentucky through a commitment to networking, advocacy, education, and collaboration as we partner together to enhance the business climate in our region.

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