In less than a month, lawmakers will convene for the 2024 Kentucky General Assembly.

Advocates said they want fewer dollars stockpiled in the state's rainy day fund and more money going to resources to help address the housing crisis, teacher and bus driver shortage and economic hardship brought about by inflation.

According to the Kentucky Center for Economic Policy, the state has nearly $4 billion in its "rainy day" or Budget Reserve Trust Fund, and it's expected lawmakers will continue padding its savings.

Jason Bailey, executive director of the Kentucky Center for Economic Policy, said the cash stockpile could be used to justify tax cuts down the road, which would disproportionately benefit the wealthiest Kentuckians, while the state's problems grow.

"We have child care centers that are on the brink," Bailey pointed out. "We have needs in our state that are unfulfilled, and the money's there for the first time in a long time to begin to reinvest it."

Supporters of bulking up the state's rainy day fund argue the money is needed to buffer the state from future economic downturns and provides extra cash for natural disaster aid. The rainy day fund is expected to top $5 billion by next summer, an amount Bailey argued exceeds what is necessary to protect against hard times.

Courtney Rhoades Mullins, black lung organizer for the Appalachian Citizen Law Center, said residents in eastern Kentucky are still out of their homes, living in tents or FEMA campers a year-and-a-half after 2022's devastating floods. She stressed money to build new homes continues to be a need.

"People are still having to adapt," Rhoades Mullins explained. "People are still trying to navigate in this world after this devastating flood that not only took several people's lives but has displaced so many."

Kentucky recently changed its income tax rate from a graduated rate up to 6% to a flat 4% rate. According to some economists, the Commonwealth's General Fund, typically fueled by income taxes, will likely fail to keep pace with inflation over the next few years.

Missouri's House of Representatives approved a budget of about $51 billion just before a Friday 6 p.m. deadline.

Gov. Mike Parsons has labeled it the "largest supplemental budget in Missouri's history," and can either accept it as-is or make cuts.

Rep. Cody Smith, R-Carthage, the House budget chair, expressed satisfaction for managing to boost funding for education and infrastructure without risking budget shortfalls. He mentioned a surplus of more than $1.5 billion in general revenue, to be used for potential growth or future projects.

"We've got a balanced budget, we've got less spending than we did have last year, and we've got a healthy rainy day fund," Smith outlined. "I think that package is what I'm most proud of."

Smith is especially pleased with the infrastructure spending for Interstate 44 repairs but expressed disappointment in the budgeting process, due to the lack of a conference committee and challenges in the final weeks. Still, he described the final budget as "strong."

Sen. John Rizzo, D-Independence, the Senate Minority Leader, told reporters a special session could be needed due to the budget being "rushed" and the possibility of other issues coming up.

Rep. Crystal Quade, D-Springfield, the House Minority Leader, also shared her dissatisfaction with the budgeting process.

"We cannot allow the 'new normal' for spending taxpayer money to become just two guys writing a budget in secret and then jamming it through the process at the very last minute, full of pork and appeasing lobbyists," Quade stressed.

Quade described the budget as being completed in the "technical sense" but feels lawmakers deliberately low-balled spending, as several are competing in Republican primaries for statewide offices. She pointed out it is a strategy allowing them to claim credit for cutting overall state spending.


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Child care advocates are pushing for increased funding as the budget deadline approaches this Friday.

Robyn Schelp, director of policy and advocacy for Kids Win Missouri, said ensuring increases to child care subsidies remain in the budget are vital for every Missourian whether they have children or not.

"It impacts the entire workforce," Schelp pointed out. "We have to stop thinking that this is a parent's issue. It isn't. If we want teachers in the classroom and doctors at their offices and whatnot, we have to make sure there's childcare for their kids."

The legislature adjourned after just about 10 minutes on Monday, following a record 41-hour filibuster which went to 4 a.m. Thursday without agreeing on a budget. Missouri lawmakers have only missed the budget deadline one time, in 1977.

Sen. Cindy O'Laughlin, R-Shelbina, the Senate Majority Leader said on social media Friday the Missouri Freedom Caucus only yielded the floor under the threat of a motion to end debate. She tried to introduce the Federal Reimbursement Allowance, which she said is crucial for funding to offset general revenue and vital for Medicaid services.

The budget includes child care subsidies under House Bill 2002. Schelp noted the House's proposal would support only 23,000 children, restricting expansion and compliance with federal guidelines.

"Our hope is that it stays with the governor's recommendation, of that $52 million," Schelp emphasized. "Allowing them to go to that 100th percentile of payment for infants and toddlers and then the 65th percentile for preschool and afterschool."

Sen. Bill Eigel, R-Weldon Spring, is leading an effort to convince fellow members of his party to approve abortion restriction legislation and a bill on ballot initiatives in Missouri before agreeing to a vote on the reimbursement allowance.

A plan to use public money to fund vouchers for students to attend private schools is drawing pushback from Louisiana teachers, who say the plan could devastate the public school system.

The program making its way through the Louisiana Legislature would be first available to low-income students and by the 2027-2028 school year, it would be available to all students.

Larry Carter, president of the Louisiana Federation of Teachers, predicts the plan could cause significant budget cuts for public schools.

"These universal voucher bills are a step in the wrong direction," Carter argued. "We've seen in other states around the country, like Arizona and Ohio, where these bills have been passed, they're now facing a budget crisis, and we're hoping that we cannot go down that same road."

Carter pointed out the education savings account program known by the acronym LA GATOR would allow as much as $7,500 per student from families below 250% of the Federal Poverty Line, and $5,000 for those who make more.

The plan, House Bill 745 and companion Senate Bill 313, has been approved by the state House. The Senate is expected to vote on it by Friday or Monday.

Carter explained teachers are concerned classroom standards currently mandated for public schools would not be upheld in private or parochial schools.

"We want to make sure it has some accountability," Carter emphasized. "We think that's at least giving all education stakeholders and parents an opportunity to talk about whether this program is successful or not. And through accountability practices, we think that will help."

There is concern the plan would force public schools to eliminate many positions and needed programs. Carter fears the loss of funds could deprive students of the benefits of a public school education.

"If we're cutting that funding stream, Louisiana students will have fewer nurses and counselors, less options for after school program, and certainly limited access to field trips and AP courses that help prepare them for their next step in life," Carter outlined.