In an interview with Kentucky Public Radio, Democratic Gov. Andy Beshear, discussed his priorities as he approaches his last two-year budget session as Kentucky’s leader. He’ll face the Republican-controlled legislature as he attempts to secure funding for programs like his Pre-K for All initiative.
The governor also discussed the upcoming midterms and his new role as the chair of the Democratic Governors Association. Beshear has shown up more and more as a potential presidential nominee in 2028 since reportedly finding himself on the shortlist for Kamala Harris’s running mate in the last presidential election.
Asked about the prospects for Kentucy Democrats, who hold less than 20% of seats in the two legislative chambers, Beshear said he is expecting to see some wins during the midterm.
Beshear talked about his decisions to join numerous federal lawsuits against Trump administration funding cuts and the effects federal changes will have on Kentucky’s budget.
This interview has been edited for length and clarity.
Sylvia Goodman: The first thing I want to talk about is this two-year budget session that's coming up — if I'm not mistaken, your last one as Kentucky's governor, right? You've put your full weight behind Pre-K for All initiative in the last year, especially. The legislature so far hasn't made any moves toward it. Do you believe the funds exist to make this a perpetual program right now, and also, do you think you have the support in the legislature to make this happen?
Gov. Andy Beshear: Yes and yes. As I approach this last budget session while I'm Governor, what you're going to see is a budget that invests in the people of Kentucky … One of the biggest steps we've got to take if we want to compete with 18 other states that are telling businesses that they have pre-K for four year olds, which frees up more of the workforce, is to get it passed here. And the proposal that you'll see in this session isn't my proposal, it's Kentucky's proposal. We took this out on the road. We received a lot of feedback, and it's different now from where it started, there's a couple of different options on how it can be done, including ways that previous Republican controlled chambers have voted for it in the past. We're seeing a lot of rank and file members from both parties get fully behind it.
And yes, we can pay for it. We can actually pay for it fully out of sports gaming revenues alone. And that lines up with how the lottery proceeds are used right now to help higher education. So let's use the sports betting proceeds to help our youngest learners.
SG: There's going to be a lot of pressure on this next two year budget. You've said where you think Pre-K money should come from, but you've also said that this is going to be a difficult year in general. Can the state both fill in for the federal cuts that we know are coming both next year and in the next decade, and also fund big ticket items like universal pre-K, but also other things you’ve pushed for, like teacher raises, like child care?
AB: No state can fill in for the amount of damage that the federal government is doing right now and will do in the future. That's everything from pushing about $60 million of SNAP administrative costs to states, which means there's going to be less money for actual food assistance for the people of the United States of America. It's shifting costs for disaster response in those toughest of days, the federal government is not going to be there for you in the same way. It's cutting more than a trillion dollars out of a Medicaid system that's going to shutter rural hospitals that are the number one payroll in their community.
While this will be a more difficult budget, I was around seeing the budgets during the Great Recession, and so I know what we're dealing with is a challenge that we can rise to, but we're not going to be able to solve every problem pushed on us by the federal government. But just because we face a challenging budget doesn't mean we shouldn't make that next game-changing investment.
SG: You have also joined a number of federal lawsuits over some of the things you've talked about, healthcare funding, education funding, electric vehicle charging, and very recently, the [U.S. Department of Housing and Urban Development] funding changes, it seems to reflect a lot of uncertainty about what federal funds the state can and should rely on. How do you think the state should budget given that reality?
AB: I've gone to court because this administration is breaking the law. Each and every lawsuit that we filed isn't about Democrat or Republican. In fact, if you go back in time, my first year as attorney general, we sued the Obama administration because of a policy that would hurt Kentucky. I've opposed some Biden policies when, again, it did not help, but hurt the people of Kentucky. And what this current administration is doing not only harms our families, but is unlawful.
SG: For example, [what about] the HUD changes? It could be that maybe it gets thrown out this year, this application that would defund a lot of the permanent supportive housing programs, but we could again see it next year, maybe they'll follow the process that time. Should the state be budgeting for that?
AB: We filed suit on HUD, and the federal government is now backed off, at least for now, they've pulled back that guidance. You can't budget for the federal government to break its own law. That would be difficult, and right now, who knows what this president will do tomorrow.
SG: You can't talk about the budget without talking about revenue. You frequently warned that tariffs could wreak havoc or will wreak havoc on the state's economy. Are we seeing signs of that yet? What would that look like? What do you think the state can be doing to try and counteract that?
AB: The two things that impact our revenue in the state are, first, the cut in the state income tax, and second, tariffs, and their impact on the economy. Tariffs result in people paying more for goods, having less to provide for their family, not being able to take that family vacation that they grew up being able to take, not being able to afford that new home.
So we are seeing tariffs, especially in other states, pause and slow economies. In fact, Moody's did a study where half of American states have slipped into recession. Now, Kentucky is still expanding, and I'm proud of that, and I'm going to keep that going, but we have a lot more headwind. So where we would be compared to where we are now, we'd be a lot further ahead, but for tariffs.
We've already seen that we're going to have a budget shortfall this year. Now, I think things are getting a little bit better, and it's not going to be quite as large, but it's still going to be significant, but we can adjust. We can ultimately absorb that. And taking those steps is going to put us in a better place for a budget that's going to be a little bit tighter that will pass this next session.
SG: You mentioned that there are two inputs to the revenue calculation right now, which is also the cut to the income tax, which you did sign. There seems to be some disagreement among Republican leadership whether or not we should go ahead and cut that again. We didn't hit the income tax trigger. Would you support a tax cut, and would you support future tax cuts should we hit the trigger again?
AB: The Republican leadership that pushed the last tax cut put in place a process where you have to meet certain guidelines and safeguards if you're going to decrease the income tax. The idea is that we will still be able to provide necessary services, and our economy is in a place where we can afford that decrease of the income tax. We didn't hit them. So if the Republicans say, doesn't matter, we're going to decrease it anyways, what they're on is a Kansas-type plan … We've seen how this story ends, and we cannot be reckless.
What I expect is for them to live up to their word, because some Democrats voted for it too, and I signed it based on the idea that we were going to do this responsibly. If they're going to come out and say, ‘Oh no, we're willing to be irresponsible.’ Well, that's not good government.
SG: We're approaching the midterms. You're the vice chair of the Democratic Governors Association now.
Chair, as of last week.
SG: Right, now chair. What is the strategy and outlook ahead of the midterms for Democratic governors across the country, but also for Democrats here in Kentucky?
AB: Our strategy is to win as many races as we can, certainly in the DGA, we have 36 governors races, and our goal is to win in places that people don't expect and to ultimately change the map. I believe, both around the country and here at home, we have got to run on people's everyday concerns, and that's how we ought to govern too. When people wake up in the morning, they're not thinking about the next race. They're thinking about their job and whether they can afford to raise their family. … Now, Donald Trump ran on a lot of those things, but is doing anything but them.
SG: What's your plan to shift some of the power dynamics in the state legislature? Do you have a plan? Do you plan to be more involved in those races?
AB: Yeah, I think you're going to see Democrats pick up some seats. It's been a long time, but I think you see a lot of districts, especially with what we're seeing nationally, that I would expect that you will start seeing a little bit more parity. Now, it's going to take time. You didn't see national investment in the Kentucky legislature for a long time, and you still don't see a lot, but we're going to push back, and I think you're going to see some additional wins this midterm.
SG: The Heckbent 501(c)(4) run by your allies reported raising nearly $1.4 million last year. The public doesn't know the identity of those donors. Do you know who has contributed to that group? And if so, are any of them seeking to influence Kentucky policy?
AB: We follow all laws and any of those PACs disclose what has to be disclosed, but no contribution has ever gotten somebody something in return for me or from my administration. We appreciate any support that people get, but we're going to do the right thing by the law and by the people of Kentucky each and every time.
The other thing that's out there right now is a president that is threatening anyone who contributes to the other side is saying that they'll go after them, is saying that they won't approve various mergers. You've seen a weaponization of the Department of Justice against people just for being Democrats or just for contributing. So you could understand why people out there would want to avoid not just the wrath, but the full implication of the federal government against them, just for supporting a cause.
SG: Thank you so much, Governor. I appreciate it.
AB: Thank you and merry Christmas and happy holidays to everybody.
