Road fund transfer is an issue to be resolved in the budget conference

The list of differences between the House and Senate versions of the budget is always a long one. This year is no different.

One thing we’ll be monitoring in the budget conference committee is the use of road fund resources to fund non-infrastructure related spending. And, while there are differences between the legislative chambers, both deserve credit for moving Kentucky away from Steve Beshear’s excessive raids on the road fund during his eight years in office.

The Senate - and more specifically Sen. Chris McDaniel and Sen. Jimmy Higdon - started the state on this new path in 2021.

The House version of HB1 (this year’s executive branch budget bill) took the Senate’s action to its logical conclusion by completely eliminating the transfer. With that decision, along with some additional general fund resources directed towards roads and bridges, the House proposed an unprecedented investment in Kentucky’s infrastructure.

The Senate reinstated the transfer in their version of the budget, allocating $56.98 million from the road fund to the state police in each year of the biennium. When the issue comes up in the conference committee, Senate leaders will likely say their approach simply returns to the 80/20 split agreed upon in last year’s negotiations.

Both sides have credibility on the issue, especially since the legislature has resisted intense lobbying over the last half-decade to raise the gas tax.

While we’ll wait to see the final product, the legislature is again positioned to increase the state’s investment in infrastructure by prioritizing spending and directing the lion’s share of road fund resources towards their intended purpose.

Many in Frankfort said it couldn’t be done without higher gas taxes. The General Assembly should continue to prove them wrong.