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Kentucky lawmakers begin 2025 with an income tax cut as their first project

Josh James
/
WUKY

Kentucky lawmakers returned to Frankfort Tuesday for the start of the 2025 legislative session.

Aside from an early tussle over a controversial rule change Senate Democrats argued cuts into their ability to debate measures on the floor, the first day of the 30-day session was relatively sedate — with the typical introductions and formalities.

Majority Republicans are moving quickly, however, on another cut to the income tax, taking it from 4% to 3.5%. Senate President Robert Stivers said that measure won't likely win passage this week, but it will be at the top of the list when lawmakers return in early February after a three-week break.

As for priorities during the session, Stivers said: "I think we wanna talk about energy. I think we're gonna talk about artificial intelligence. You already have seen Sen. Higdon has filed a bill on housing. You know, those things are what we're gonna look at, but I think the underlying premise is what we can do related to the tax code."

Meanwhile, Gov. Andy Beshear said he's hopeful the legislature will unlock some more funding for I69 and facilities for the troubled Department of Juvenile Justice.

"My hope is that we can work together in a short session to get some things done, to push affordable housing forward, or at least set the stage for the next budget session," he told WUKY.

Issues where Beshear and the legislature aren't likely to see eye-to-eye are efforts looking to roll back diversity initiatives in public universities and some executive orders that republicans are considering taking action on, including Beshear's Medicaid expansion.

"The Medicaid expansion, and the cost of it, is one of our fastest growing portions of our state budget," Stivers said, adding lawmakers' goal is to figure out how we reduce the benefit cliffs and reimbursement rates he said are driving away providers, creating a "somewhat hollow" expansion.

State of the Commonwealth

Beshear is slated to give his annual State of the Commonwealth Address Wednesday night before a joint session of the General Assembly.

The governor offered few specifics Tuesday about what he'll discuss in his speech but stuck to a message that's become a mantra for his administration — bypassing what he frequently refers to as anger politics and delivering on jobs, health care, infrastructure, education, and public safety.

"When we push out all that national toxicity, what we can do is truly focus and deliver for our people in real ways that improve their lives," he said.

But Beshear is once again facing a tough crowd — Republican supermajorities that dominate the legislative agenda and easily overturn his vetoes.

Later this month, the governor may arguably give a more influential address at the World Economic Forum in Switzerland, further raising his national and international profile as political observers look for signs the Kentucky Democrat may eventually seek higher office.

His State of the Commonwealth Address starts at 7 Wednesday night.

Josh James fell in love with college radio at Western Kentucky University's student station, New Rock 92 (now Revolution 91.7). After working as a DJ and program director, he knew he wanted to come home to Lexington and try his hand in public radio.