Bevin proposes $6 billion road plan to Kentucky legislature

During a meeting with reporters Tuesday before his formal budget address, Bevin said individual cabinet secretaries would responsible for cutting the budgets of state agencies they oversee.

He also recommended more than $130 million for the Kentucky Retirement Systems, which manages many state worker pensions.

Bevin also wants to see state funding for higher education tied to performance measures created to increase the number of graduates in fields suffering from a talent shortage.

Bevin’s plan would free up a lot of money, but, as he said, it’s just a start on closing the gaps: The Kentucky Retirement Systems is underfunded by $11 billion and selling assets to meet monthly obligations.

Bevin said Tuesday he would also issue an executive order to cut state spending by 4.5 percent across the board during the current fiscal year, which ends in June.

The Kentucky Teachers’ Retirement System sought almost $1 billion in new pension funding, but Bevin is instead offering the agency a combined $591.5 million in the two-year spending plan.

Funding for the Kentucky Arts Council has concerned many people.

“While you can’t afford to do it, you can’t afford not to do it. And that’s the difficulty”, Bevin said about paying the full amount to the pension systems. Due in part to declining gas prices, less money from a reduction in Road Fund receipts will be available to lawmakers to spend on projects.

Bevin said he made all of his spending decisions with one thing in mind: fixing Kentucky’s beleaguered public pension systems.

Bevin said cuts would allow the state to stabilize its finances and put funding toward priorities. “We are going to tap into the existing talent and skills of our state workers, and take care of those who protect the Commonwealth”.

Bevin also is proposing $625 million in new debt, including $100 million for public-private partnerships to improve workforce development and $60 million toward renovating Lexington’s convention center.

However, he did say he wants to allocate funding to ensure the backlog of rape kits in the state are processed.

The plan, if enacted, includes $6 billion in state and federal funds to address the critical transportation needs across the state.

The budget proposal must be approved by the General Assembly, and Bevin indicated that he would not sign a final bill that contains major changes.

The Democratic-led state House will vote on it first, followed by the Republican-led Senate if passed.