By Tom Latek
Kentucky Today
Gov. Andy Beshear announced on Wednesday that his administration is taking $255 million from what it called “unanticipated revenue” to restore cuts made to Medicaid in the budget passed by the General Assembly.
“This means that the providers and services our families rely on will not be at risk this year, there will be no four percent cuts,” Beshear said during a Frankfort news conference. “Normally these dollars would go to the Rainy Day Fund. But even with this reversal of cuts, I will still deposit over 400 million unexpected dollars in that fund. By the end of the fiscal year [June 30, 2027], I believe I will ultimately deposit over a billion of unexpected dollars in the Rainy Day fund.”
Beshear added, “In the past, this might have required action by the General Assembly. But leadership of the General Assembly, including direct quotes from the Speaker of the House, have repeatedly stated that they have given me more flexibility to manage the budget. Today I’m taking them at their word.”
Cabinet for Health and Family Services Secretary Dr. Steven Stack pointed out, “In the budget that was passed, there were numerous shortfalls for the Cabinet for Health and Family Services that made it difficult, if not impossible, at times to advance our visions. For Medicaid specifically, not a single new dollar was provided to sustain inflationary growth over the next two years.”
According to Stack, additional money in the CHFS budget was for required new services and due to inflation.
Beshear said he will ask the General Assembly to re-open the second year of the two-year budget, covering the period from July 1, 2027 to June 30, 2028, when lawmakers return to Frankfort in January.
House Speaker David Osborne, R-Prospect, accused Beshear of trying to scare Kentuckians.
“Lawmakers approved more funding for Medicaid than the governor requested in the budget proposal originally filed by the House Minority,” he said.
“Neither the governor, nor his administration have provided any actual evidence of why they need more money. Rather than frightening vulnerable Kentuckians – including children, individuals with profound disabilities, and seniors – with threats of cuts, it’s time to stop crying wolf, and start managing Medicaid with the seriousness, transparency, and accountability Kentuckians expect.”