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Gov. Matt Bevin signed a budget reduction today last week, meeting the Constitutional mandate that the Commonwealth of Kentucky end the fiscal year with a balanced budget. General Fund revenue receipts fell short of budgeted amounts by $138.5 million, requiring today’s action.
The Governor’s veto of a portion of the budget bill allowed an additional $5 million in lottery receipts to be dedicated to scholarships and not lapse to the General Fund. In addition, a lower than expected lapse of debt service raised the total resource requirements to meet the shortfall to $152.2 million.
“This year’s budget shortfall validates the need for conservative spending plans, and it dramatically underscores the critical need for fixing Kentucky’s broken pension systems and modernizing the state’s tax code,” said Gov. Bevin. “A solid financial foundation is essential before the Commonwealth can reach its full potential.”
The actions taken today to close the fiscal year 2017 budget gap included a combination of General Fund appropriation reductions and fund transfers from restricted funds. Also included were one-time savings in Medicaid costs due to the favorable renegotiation of contracts with the managed care organizations (MCOs) and lower than expected pharmacy costs. The Governor’s order to balance the budget does not include any reduction to the state’s Budget Reserve Trust Fund.
“We are expecting an ongoing challenge with revenues in the next fiscal year and the next biennium,” stated John Chilton, the State Budget Director. “Today’s actions by the Governor responsibly preserves the Rainy Day Fund as we prepare for the tight fiscal environment in front of us.”
In anticipation of the budget shortfall, the Office of the State Budget Director directed the Governor’s Cabinet Secretaries to identify a reduction in their General Fund expenditures. These reductions, plus reductions by the Legislative and Judicial branches, amounted to $59.3 million. Fund transfers of various excess restricted funds totaled $77.3 million. General fund lapses and fund transfers in excess of budgeted amounts accounts for the remaining $15.5 million of the total $152.2 million shortfall. Programs funded through coal severance revenues are automatically adjusted when receipts fall short of projections. That resulted in a $17 million reduction in money going to the Local Government Economic Assistance Fund.
The Medicaid portion of the original budget was based on MCO contract rates in effect in 2015. Prior to Governor Bevin taking office, Kentucky ranked number 1 in the nation in profits earned by MCO providers; their profits were more than 4 times the national average for all MCOs. As part of Governor Bevin’s Medicaid transformation, the administration renegotiated these contracts resulting in lower than budgeted cost.
Final fiscal year 2017 General Fund receipts were 1.3 percent less than the official estimate. If the fiscal year 2018 revenue shortfall approximates this year’s amount, significant additional spending reductions will be needed to balance the budget in fiscal year 2018. The current balance of the Budget Reserve Trust Fund, $150.5 million, remains unaffected by today’s action.
Chefs, food preservation fanatics and other-large volume buyers are urged to celebrate the high season of Kentucky farm production at a Greenmarket Popup scheduled for Wednesday, July 26, from 10 am to noon at Fresh Start 
Growers’ Supply, 1007 E Jefferson St. in Louisville.
Growers’ Supply, 1007 E Jefferson St. in Louisville.The Greenmarket Popup, organized by Louisville Farm to Table, is a way for Kentucky farmers and processors to connect with large-volume buyers, show their products and develop relationships. The popup will allow buyers to meet their growers, discuss growing methods and availability, and learn how to plan for future purchases.
The event is free and open to the public. Cases of eggs, bushels of tomatoes, and boxes of brisket are just a few of the items you’ll find. Foods that are USDA certified organic are included. Carts will be available to transport large purchases to a buyer’s vehicle.
Attorney General Andy Beshear has joined a broad, bipartisan coalition of attorneys general in opposing a cable and telecommunications industry petition to the Federal Communications Commission (FCC) intended, in part, to halt states from enforcing false advertising laws related to internet speeds.
Beshear said part of his duty is to protect Kentuckians from unfair and deceptive business practices and to ensure consumers are receiving the internet speeds purchased from their cable providers.
Under Kentucky’s Consumer Protection Act, Beshear’s office works with consumers through the complaint process on whether fixed and wireless broadband providers have been truthful in their contracts with consumers.
Beshear said if the FCC “improperly guts” state and federal requirements that bar deceptive advertising of internet speed, his office and Kentuckians will be helpless against false and misleading claims by broadband providers.
“We believe the industry is seeking a ruling that exceeds the authority of the FCC,” Beshear said. “We believe the request is procedurally improper, and would upend the longstanding dual federal-state regulation of deceptive practices in the telecommunications industry. Like other industries that provide goods and services to Kentuckians, providers of broadband internet service must be truthful in their advertisements and be held accountable when they are misleading.”
USTelecom and NCTA (The Internet & Television Association) submitted the industry’s petition to the FCC in May. The industry, specifically, is asking the FCC to convert a limited safe harbor from FCC’s own enforcement, into blanket federal and state immunity for fixed and wireless broadband companies from liability for false statements contained in advertisements and marketing.
A total of 35 attorneys general oppose the industry’s petition. Nearby states include Illinois, Indiana, Tennessee and West Virginia.
Photo: Bluegrass Supply Chain Services
Gov. Matt Bevin announced Bluegrass Supply Chain Services LLC, a third-party logistics provider for the automotive and food and beverage industries, will invest more than $3.35 million and create 51 jobs at two locations: a new operation in Edmonson County and upgrades at its Bullitt County facility.
“Bluegrass Supply Chain Services has been a customer-focused and high-growth employer in Kentucky for the past 15 years,” Gov. Bevin said. “Their decision to open a fourth location in the commonwealth and to reinvest in an existing facility is a compliment to Kentucky’s leadership in the distribution and logistics sectors. I congratulate BSCS and thank its leaders for their continued confidence in Kentucky.”
The company will invest more than $1.78 million to lease and upfit a building in Park City for office and warehouse space, and more than $1.57 million for similar upgrades in Shepherdsville. The projects will create 27 and 24 full-time positions, respectively.
“We are thrilled to continue our growth and expansion in the Shepherdsville area,” said John Higgins, president of BSCS. “This incentive program provides a mechanism for Bluegrass to compete with other companies outside of Kentucky.”
Headquartered in Bowling Green and founded in 2002, BSCS provides warehousing, quality support, light assembly and transportation management services to customers across four states. In addition to its Bowling Green and Shepherdsville locations, BSCS operates a 49-job facility in Russellville. The new jobs will bring its total Kentucky employment to about 590.
Sen. Dan “Malano” Seum, of Fairdale, bid the company well as it expands its presence in the region.
“It’s a great day for our city and our state when a local employer decides to expand its operations,” Sen. Seum said. “I thank Bluegrass Supply Chain Services for this new investment in Shepherdsville and wish the company all the best in its future endeavors.”
Rep. Dan Johnson, of Mt. Washington, said the state’s efforts to attract business are producing results.
“Bluegrass Supply’s significant expansion in Shepherdsville is fantastic news for Bullitt County, and will bring more jobs and increased opportunity to our area,” Rep. Johnson said. “The legislature’s work to make Kentucky more business friendly is already paying off for our workers, and I applaud the Governor for his continuing efforts to bring more investment to the commonwealth.”
Shepherdsville Mayor Curtis Hockenbury pointed out the significance of keeping business in Kentucky.
“I am always pleased to see a company that is in Shepherdsville expand, because it shows its faith in our community and our workers,” Mayor Hockenbury said. “It is an even greater thrill to have a Kentucky based company firmly believe in our city.”
Bullitt County Judge-Executive Melanie J. Roberts said the community welcomes the expansion with open arms.
“Bluegrass Supply Chain Services has shown a dedication to our community and we must admire the social conscience of its philosophies. The citizens of the county want to welcome this new investment and the job opportunities it provides,” Judge-Executive Roberts said. “We are glad to welcome more automotive-related jobs to the county, thus diversifying our employment base.”
Sen. David Givens, of Greensburg, believes the company will be a great fit for Park City.
“I am pleased to hear Bluegrass Supply Chain Services chose Park City for its newest location,” Sen. Givens said. “I know our region will serve this company well with a centralized location, strong workforce potential and a business-friendly economic climate, and I look forward to the company’s success in the region.”
Rep. Steve Riley, of Glasgow, expressed enthusiasm about the added job opportunities for the community.
“Since entering public office, attracting more jobs and higher levels of investment has been a top priority of mine, and I am glad to see that a company like Bluegrass Supply sees value in our area,” Rep Riley said. “This exciting announcement only adds to the positive economic news that we have been seeing across the state, and I look forward to seeing more in the future.”
Edmonson County Judge-Executive Wil Cannon welcomed the news.
“This is great news for Edmonson County,” Judge-Executive Cannon said. “This will be the third factory that will be operating in our county. We appreciate the opportunity for our citizens to have a job closer to home. On behalf of Edmonson County and our industrial authority, we thank everyone who assisted in making this happen.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in May preliminarily approved BSCS for tax incentives up to $300,000 for each project through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.
In addition, BSCS can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. In fiscal 2016, the Kentucky Skills Network provided training for nearly 95,000 Kentuckians and 5,000 companies from a variety of industry sectors.
For more information on Bluegrass Supply Chain Services, visit www.bluegrass-scs.com.
A detailed community profile for Edmonson and Bullitt counties can be viewed at http://bit.ly/EdmonsonCo and http://bit.ly/BullittCo.
Information on Kentucky’s economic development efforts and programs is available at ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook or follow on Twitter. Watch the Cabinet’s “This is My Kentucky” video on YouTube.
Gov. Matt Bevin has issued an executive order expanding the Work Ready Kentucky Scholarship to include Kentuckians who do not have a high school diploma but are working to achieve their GED concurrent with skills education.
“The central idea of the Work Ready Kentucky Scholarship is to get thousands of adults to the first or second rung of a high demand career ladder,” said Education and Workforce Cabinet Secretary Hal Heiner. “It’s extremely important that we remove as many barriers as possible to this process, and for thousands of Kentuckians, that barrier is not having a high school diploma.”
The Work Ready Kentucky Scholarship Program was designed to meet the increasing demand for skilled workers in five of Kentucky’s fastest-growing workforce industries:
- Advanced Manufacturing
- Business and IT
- Construction Trades
- Healthcare
- Transportation and Logistics
The scholarship provides tuition for up to 32 credit hours for eligible Kentuckians who have not yet earned at least an associate’s degree and are seeking certificates or diplomas in one of these five industries.
Those wishing to pursue their career certification in tandem with obtaining a GED can do so through the Accelerating Opportunity Kentucky program offered through the Kentucky Community and Technical College System.
You can learn more about the Work Ready Kentucky Scholarship through helpwantedky.com, including eligibility requirements, participating colleges and universities, and certificates and diplomas available in each of the five industries.
“Helpwantedky.com, as well as the Help Wanted Kentucky Facebook and Twitter pages are channels for adults in Kentucky, regardless of age, to learn about jobs that pay well and are in high demand,” said Heiner.
Photo: Muhammad Ali Center
In the Shadows: Photography Exhibit by Howard Bingham opens to the public during a special “Night at the Museum” on Wednesday, July 5th from 5:00-8:00 p.m. at the Muhammad Ali Center. The exhibit, which is on display until January 21, 2018 and included in admission, contains over 50 carefully selected images photographs by Muhammad Ali’s best friend, who was also his personal photographer for over 50 years. Bingham passed away in December 2016.
In the Shadows features never-before-seen photos taken over four decades of Bingham’s career, capturing significant historical events in the United States, from social activism to pop culture, while revealing intimate photos of Muhammad Ali. This exhibit illuminates the relationship that the Ali Center shared with Howard in his role as the Center’s Honorary Curator of Photography, former Board Member of the Center, and as an unforgettable longtime friend of Muhammad Ali.
“Having Howard’s photographs displayed at the Center in the year following both he and The Champ’s passing is a demonstration of the greatness that both men have achieved during their time here on earth and the bond they shared for decades,” said Jeanie Kahnke, spokesperson for the Ali Center. “We hope that the community can come to experience new dimensions of both Howard and Muhammad’s intertwined legacies.”
The exhibit opens during a special preview night as part of the “I Am Ali” Festival on July 5th. “Night at the Museum” includes “open air” gallery talks throughout the evening about In the Shadows and Howard Bingham with the Center’s collections department, a discount admission price of $7 to the Center’s exhibits, and a performance by Commonwealth Theatre Center at 6:30 p.m. The performance will consist of a series of staged readings devised by artists and playwrights based on community reflections about Muhammad Ali’s Six Core Principles.
Beginning today, the Commonwealth of Kentucky takes its first official step toward tort reform, initiating a new program to review claims of malpractice against healthcare providers before any legal action can be filed in court.
The 2017 Kentucky General Assembly passed Senate Bill 4 establishing Medical Review Panels (MRPs) to help weed out unfounded or frivolous medical malpractice lawsuits. Governor Matt Bevin enthusiastically endorsed the bill and signed the legislation into law.
“Making sure patients can pursue legal action in the event of medical malpractice is an important part of securing justice for those harmed by the healthcare system. However, it is equally important that providers be protected from frivolous or unfair claims,” said CHFS Deputy Secretary Judge Timothy Feeley. “MRPs will ensure there is an adequate basis for civil action before a case is pursued in court.”
Any person alleging malpractice against a healthcare provider or institution must first bring a “proposed complaint” to the Medical Review Panels Branch within the Cabinet for Health and Family Services (CHFS), before filing the claim in a Kentucky court. The MRPs will serve as a pre-cursor to filing a medical malpractice action in court and will be staffed by an attorney and three Kentucky-licensed healthcare providers to provide a peer-reviewed assessment of each case. Healthcare providers included in the statute are broadly defined. They include, but are not limited to, physicians, dentists, pharmacists, social workers and nursing homes.
“Medical Review Panels are a small step toward stemming the flow of medical practitioners out of our state,” said the bill’s sponsor, Sen. Ralph Alvarado, in a press release. “The lack of healthcare providers in our Commonwealth can be largely attributed to the litigious-friendly climate in which we have found ourselves in recent years due to the absence of tort reform.”
No matter the outcome of the opinion, the plaintiff retains a right to pursue a medical malpractice claim in a court of competent jurisdiction after the final MRP opinion is rendered. If the plaintiff chooses to file a civil complaint following the MRP review, either party may move the trial court to admit the MRP opinion as evidence in the same manner a party would move to admit the testimony of an expert witness.
For more information on the MRP process, go to: mpr.ky.gov or contact the Medical Review Panel Branch at CHFS via email at mrp@ky.gov.
