Impact of Gov. Bevin’s Vetoes Upon Departments

veto-thumb-800xauto-4176Summary of Vetoes to Executive Branch Budget

Governor’s Office of Agricultural Policy

  • Deletes language related to special initiatives that were to be funded with $21 million from Tobacco MSA dollars in FY 2016. The funds now shall be used solely for agricultural development initiatives approved by the Agricultural Development Board with no dollar limit for individual grants.

Military Affairs

  • Deletes language requiring the Maysville National Guard Base located in Mason County to retain its workforce and be adequately maintained throughout the biennium.

Department of Local Government

  • Deletes language related to publishing requirement of a local government’s complete annual financial statement that would have provided the local government with more options than having to publish the statement in a newspaper. Similar language was vetoed under the Department of Education relating to publishing requirements for districts’ complete annual financial statement and school report card.

Local Government Economic Assistance Fund

  • Deletes language and the $1.75 million General Fund (coal severance) appropriation in each fiscal year for School Technology in Coal Counties which would have been used to enhance education technology in local school districts within coal-producing counties. Similar language under Operations and Support Services in the Department of Education was also vetoed.

School Facilities Construction Commission

  • Deletes the minimum value authorized within the range provided for six urgent need school projects. With the deletion of the lower value the language now states a maximum value each project cannot exceed.

Economic Development Cabinet

  • Deletes language requiring the Kentucky Innovation and Commercialization Center Program to remain open for the biennium and General Fund support for the program.
  • Deletes the appropriations and language for Northern Kentucky Waterfront Development, Louisville Waterfront Development, and the Louisville Waterfront Botanical Gardens.

Department of Education and Education & Workforce Development Cabinet

  • Deletes language specifying funding for School Technology in Coal Counties.
  • Deletes language allowing local school districts to publish complete annual financial statements on the internet or by leaving a printed copy at the main branch of the public library for review instead of publishing the documents in the newspaper.
  • Deletes language that would have prohibited utilizing funds provided to the Learning and Results Services Program from being used for state-level administrative purposes.
  • Deletes a part of the $1.24 million General Fund appropriation in each fiscal year for the ACT and WorkKeys testing to restrict the purpose of the appropriation for “testing.” The Governor says this veto conforms to the provisions of HB 15 (2016 Regular Session).
  • Deletes the appropriation of $225,700 in each fiscal year for the Every1 Reads Program.
  • Deletes language related to the expansion of the Preschool Program for children with family income less than 200% of the federal poverty level.
  • The $7.5 million appropriation of preschool funding in each fiscal year for a new grant program to incentivize cooperative, public-private partnerships between school districts and child care providers to develop full-day high quality program for children eligible for the Child Care Assistance Program is retained.
  • Deletes language that allows the Education Professional Standards Board to have the sole authority to determine the employees of the Board staff who are exempt from classified service and to set their compensation comparable to the competitive market.

Energy and Environment Cabinet

  • Deletes the line item General Fund appropriation of $907,300 in each fiscal year for direct aid to local conservation districts.
  • Deletes the line item Restricted Fund appropriation of $250,000 in each fiscal year for the tree nursery programs in Morgan County and Marshall County.

Health and Family Services Cabinet

  • Deletes part of the language related to “Reallocation of Appropriations Among Budget Units” to allow the Cabinet Secretary to request a revision or reallocation among the departments and offices of the Cabinet without any restriction on the amount of the General or Restricted Fund appropriation that can be reallocated. The bill had a set percentage limit of “up to 10 percent.”
  • Deletes the annual study and reporting requirement related to the Quality and Charity Care Trust (QCCT) as well as the state’s appropriation for the program as a necessary government expense and the Louisville Metro Government’s contribution requirement to the QCCT. The Governor says provisions of the Affordable Care Act make these provisions duplicative.
  • Deletes language identifying the General Fund appropriation of $200,000 in each fiscal year to support the operations of ARC of Kentucky encouraging the entity to “focus their fundraising efforts on private sector and foundation support” and noting “non-profits are strongest when they are not dependent upon tax dollars for operations.”
  • Deletes language identifying General Fund support of $10,000 in each fiscal year for the Kentucky Lung Cancer Education, Awareness, Detection, and Survivorship Collaborative (Kentucky LEADS) to support lung cancer care and control research.
  • Deletes language identifying General Fund support of $500,000 in each fiscal year for the Kentucky Colon Cancer Screening Program and $1 million in fiscal year 2018 for the Kentucky Cancer Program to increase the number of women receiving breast and cervical cancer screenings.
  • Deletes language identifying General Fund support of $550,000 in each fiscal year for supplemental payments to dually-licensed pediatric facilities for emergency shelter services for children.
  • Deletes language identifying General Fund support of $100,000 in each fiscal year to the Madison County Fiscal Court for early intervention services.

Justice and Public Safety Cabinet

  • Deletes language identifying General Fund support of $250,000 in each fiscal year for the Kentucky Legal Opportunity Program, $1 million in each fiscal year for Public Safety First Programs, and $682,500 in each fiscal year for Access to Justice (Legal Aid).
  • Deletes part of the language related to the Madisonville Medical Examiner’s Office that prohibits the Office from being relocated or closed during the 2016-2018 fiscal biennium.
  • Retains the $1.5 million in each fiscal year for CASA, but deletes the language specifying how the funds are to be distributed.
  • Deletes language related to Parole for Infirm Inmates and language that addresses management of the state inmate population if the Cabinet Secretary finds that there is overpopulation in county jails and that overpopulation exposes the Commonwealth to litigation.

Personnel Cabinet

  • Deletes language related to the Kentucky Employees’ Health Plan and Medicaid State Plan Cost-Savings Demonstration Project.

Postsecondary Education

  • Deletes language that would require the Council on Postsecondary Education to fully fund the veterinary and optometry slots if General Fund appropriations are not sufficient to fully fund 164 veterinary slots and 44 optometry slots. The General Fund appropriation for the slots is retained in the bill.
  • Deletes language that would require the first $5 million of unanticipated lottery receipts to be transferred to the General Fund allowing all lottery receipts above the revenue estimate to the need-based CAP and KTG programs.
  • Deletes the appropriation in fiscal year 2017 of $9.4 million for the Work Ready Scholarship Program, but retains the fiscal year 2018 appropriation of $15.9 million.
  • HB 10 deletes the additional General Fund appropriations to the need-based CAP and KTG programs to correct the funding of the Work Ready and Dual Credit Programs with lottery funds. This reduces support for the need-based scholarship programs.
  • Deletes the language related to the Community Operations Board under Eastern Kentucky University.
  • Deletes language that would have required Northern Kentucky University to retain the use proceeds from any sale of surplus real property and improvements in Covington, Kentucky. The vetoed language allows NKU to retain the proceeds.

Tourism, Arts and Heritage Cabinet

  • Deletes language requiring the Cabinet to develop a statewide marketing plan for the Tourism, Meeting, and Convention Marketing Fund (transient room tax receipts) and present this plan to the IJC on Appropriations and Revenue by October 1, 2016.
  • HB 10 deletes part of the language for the two appropriations for the Department of Parks to extend the availability of the $13 million six months past fiscal year 2016 so the funds can be accessed up to December 31, 2016.

General Provisions

  • Deletes part of the provision related to “Revision of Appropriation Allotments” to allow allotments to be revised without conforming to KRS 48.610 and 48.605 and HB 303.
  • Deletes part of the provision related to “Appropriation Expenditure Purpose and Transfer Restrictions” to delete the requirement that the IJC on Appropriations and Revenue review and determine compliance with the provisions of this section.
  • Deletes part of the provision related to “Interpretation of Appropriations” so that the title now reads “Interpretation” and the Secretary of the Finance and Administration can decide all questions that arise in interpreting HB 303 instead of just the appropriations and the purpose or manner for which an appropriation may be expended.
  • Deletes part of the provision related to “Reallocation of Appropriations Among Budget Units” to allow Cabinet Secretaries, the Commissioner of the Department of Education, and other agency head to request a reallocation among budget units under their administrative authority without any restriction on the amount of the General Fund appropriation that can be reallocated in fiscal year 2017 and 2018. The bill had set percentage limit of “up to 10 percent.”
  • Deletes part of the provision related to “Budget Implementation” to direct Executive Branch to carry out all budgetary language provisions in HB 303. The bill had required the branch to also carry out all appropriations. It also deletes the requirement that LRC review quarterly expenditure data to determine if an agency is out of compliance with this directive and the ability of LRC to request an audit or review at the agency’s expense if it suspects non-conformity.

Fund Transfers

  • Deletes the $1.25 million fund transfer in fiscal year 2018 from the Workers’ Compensation Benefits and Reserve Fund to the General Fund.

General Fund Budget Reduction Order

  • Deletes language that prohibited budget revisions by branch heads in excess of the actual or projected revenue shortfall.
  • Deletes language that prohibited transfers of excess unappropriated Restricted Funds to the General Fund in the event of a revenue shortfall of 5 percent or less from specific funds including the LGEAF and LGEDF coal severance funds.
  • Deletes the requirement that any unanticipated Tobacco MSA revenues in both fiscal years to be appropriated in accordance to KRS 248.654.
  • Deletes the requirement that any provision that expresses legislative intent regarding a specific appropriation shall not be reduced by a greater percentage than the reduction to the General Fund appropriation for that budget unit.
  • Deletes language prohibiting reductions to Constitutional Officers or their offices, the Commonwealth’s Attorneys or their offices, or County Attorneys or their offices.

 

 

HB 304 Veto Messages-Transportation Cabinet Budget Bill

General Administration and Support

  • Deletes the requirement for a second section of a publication of the highway plan that details the preconstruction program plan for the six-year period and requires the report be submitted to all members of the General Assembly within 60 days of adjournment.

Highways

  • Deletes language related to the $5 million appropriation for Kentucky Pride out of the Highway Construction Contingency Account. Also deletes “Shortline” and “service improvements” and the matching requirement to expand the use of the $1.6 million appropriated in each fiscal year from the Highway Construction Contingency Account to railroads.
  • Deletes the monthly forecast reporting requirement concerning the Cabinet’s cash management plan. The Cabinet will still provide quarterly reports to the IJC on Appropriations and Revenue.
  • Deletes language identifying $125 million in Road Fund in each fiscal year for the State Resurfacing Program.
  • Deletes part of the language related to the Delayed Projects Status Report that requires a detailed description of the circumstance leading to the project delay and information required for project or projects advanced with funds initially scheduled for the delayed project.
  • Deletes a portion of the Transportation Employees Salary Study language by removing the reference to all merit employee classifications and removing the deadline for submission of the study.
  • Deletes language related to the Mountain Parkway Extension from Prestonsburg, Kentucky to Beckley, West Virginia, but retains the language concerning upgrading the Hal Rogers Parkway to interstate standards. It deletes the deadline for reporting cost estimates for the project to the IJC on Appropriations and Revenue.
  • Deletes language requiring the Cabinet to give projects identified by the General Assembly for improving economic development opportunities for the benefit of Kentucky’s citizens construction priority.

 

HB 129 Veto Messages- State Highway Plan

  • Deletes the requirement for a second section of a publication of the highway plan that details the preconstruction program plan for the six-year period and requires the report be submitted to all members of the General Assembly within 60 days of adjournment.
  • There are NO project vetoes!!!!

 

 

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