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Beshear grades the state budget, taking issue with Medicaid cuts amid federal reductions

FILE - Kentucky Gov. Andy Beshear addresses reporters during a press conference in Frankfort, Ky., Nov. 15, 2022. Beshear said Thursday, Dec. 1, that Kentucky will open its first female-only juvenile detention center as part of efforts to defuse the risks of violence that escalated into a riot at a youth facility. (AP Photo/Timothy D. Easley, File)
Timothy D. Easley/AP
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FILE - Kentucky Gov. Andy Beshear addresses reporters during a press conference in Frankfort, Ky., Nov. 15, 2022. Beshear said Thursday, Dec. 1, that Kentucky will open its first female-only juvenile detention center as part of efforts to defuse the risks of violence that escalated into a riot at a youth facility. (AP Photo/Timothy D. Easley, File)

Gov. Andy Beshear is outlining his likes and dislikes in the state budget delivered to his desk this week.

Beshear's chief complaint with the spending plan deals with Medicaid. The governor said a team of experts gathered to estimate what would be needed to keep the system operating as it is, and the General Assembly fell far short of that figure.

"The legislature cut $2.8 billion dollars out of the number that the experts who put this together said that it will cost over the next two years," he told reporters Thursday.

Beshear said that's on top of cuts from President Donald Trump's signature 2025 tax and spending bill. The governor said he fears what the cuts will mean for providers, who could take the biggest hit.

"And so what does that mean to a birthing center that already has tiny margins? What does mean to hospitals that may only be open right now because of the rates that we can pay?" he added.

The Democrat also dinged the GOP-led legislature for putting $5 million toward affordable housing while adding more than $300 million to the Capitol Annex renovation, a lack of requested parks money, and what he described as a number of "unfunded mandates" throughout the spending plan.

The governor did, however, applaud the inclusion of requested funds for the Department for Community-Based Services, the addition of three new driver's testing locations, and a change for state police.

"We wanted to change things from comp time so they can actually get overtime for their jobs. That money was put in," Beshear reported.

Meanwhile, Republicans say the budget meets the core needs of the commonwealth while avoiding unnecessary spending, and frequently point to the state's conservative budgeting as a reason Kentucky has attracted new businesses and built up a sizable rainy day fund.

Any budget vetoes by the governor will go back to the General Assembly during the final two days of the session in mid-April.