GOP leaders in the Kentucky legislature are cautioning people not to overreact, as the budget bill remains a work in progress.
FRANKFORT, Ky. — The Kentucky Education Association, the state’s largest labor organization, is sounding the alarm over a draft budget it says would cause health insurance premiums to spike for state workers – including public school teachers, school bus drivers, and state troopers.
The group’s president, Joel Wolford, is calling on Kentucky lawmakers to ‘Scrap the Cap,’ asking them to vote down any budget the group says shifts more of the burden of health insurance costs to employees.
It refers to a provision in state House Republicans’ draft budget that would limit contributions to health plans for state employees.
“I knew if they were going to cut income taxes again that there would have be cuts made elsewhere. I was hoping that it wouldn’t be to health insurance – that’s such a basic need that people have. But there it was,” he said at a news conference at the KEA’s Frankfort headquarters on Monday.
Retired workers are voicing their concerns too.
“If this passes as is, and we have an increase in premiums, it’s only going to get worse,” said Jim Carroll with the Kentucky Government Retirees. “We’re in a crisis situation.”
Some education advocates argue the budget bill (House Bill 500) — if passed as is – would result in monthly benefit losses starting in 2027.
“Around $500 per month,” Wolford said.
But GOP leadership in the state legislature cautions people not to overreact as the budget bill is far from final. They continue to preach patience.
In a statement, Kentucky House Speaker David Osborne (R-Prospect) said in part, “The challenge our state faces is how to pay for an anticipated 24% increase in the cost of benefits for public employees. This increases the annual expense for this one benefit to an estimated $2 billion – and taxpayers shoulder more than 98% of the cost.”
In an interview with WHAS11 on Monday, Osborne also pointed to budget data he says lawmakers are still waiting for Gov. Andy Beshear’s state budget director to provide.
“There are no numbers to even be flexible with at this point,” Osborne said. “It’s ridiculous that they’re expecting us to pass a budget — adopt a budget – [and] accept their numbers without giving any evidence as to why those numbers aren’t forthcoming.”
Republicans have warned economic conditions may mean 2026 is a year to pull back on spending, while Kentucky Democrats want to dip into the state’s rainy day fund to pour more money into healthcare and public education.
We’re just passed the halfway point of the 2026 legislative session, and the Kentucky state budget still has a ways to go.
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