Interim Joint Committee on Appropriations and Revenue


Minutes of the<MeetNo1> 6th Meeting

of the 2016 Interim


<MeetMDY1> November 21, 2016


Call to Order and Roll Call

The<MeetNo2> 6th meeting of the Interim Joint Committee on Appropriations and Revenue was held on<Day> Monday,<MeetMDY2> November 21, 2016, at<MeetTime> 1:00 PM, in<Room> Room 154 of the Capitol Annex. Representative Rick Rand, Chair, called the meeting to order, and the secretary called the roll.


Present were:


Members:<Members> Senator Christian McDaniel, Co-Chair; Representative Rick Rand, Co-Chair; Senators Danny Carroll, Chris Girdler, David P. Givens, Denise Harper Angel, Stan Humphries, Dennis Parrett, Brandon Smith, Robin L. Webb, and Stephen West; Representatives John Carney, Larry Clark, Ron Crimm, Mike Denham, Jeffery Donohue, Myron Dossett, Kelly Flood, Joni L. Jenkins, Terry Mills, Marie Rader, Steven Rudy, Sal Santoro, Dean Schamore, Arnold Simpson, Wilson Stone, Susan Westrom, and Addia Wuchner.


Guests: Jay Morgan, Vice President, Shaun McKiernan, Budget Coordinator, and Travis Powell, General Counsel, Council on Postsecondary Education; Jack Couch, KIPDA.


LRC Staff: Jennifer Hays, Charlotte Quarles, Cynthia Brown and Jennifer Beeler


In honor of Eric Kennedy’s departure from LRC and the Appropriations and Revenue Committee, Chairman McDaniel and Chairman Rand proposed a resolution in his honor. The resolution was adopted by voice vote upon a motion from Senator Parrett, seconded by Representative Crimm.


Approval of the Minutes

Representative Simpson made a motion, seconded by Representative Stone, to approve the minutes of the October 27, 2016, meeting. The motion carried by voice vote.


Testimony on the Contract Spaces Program

Jay Morgan, Vice President, Shaun McKierman, Budget Coordinator and Travis Powell, General Counsel of the Council on Postsecondary Education (CPE) gave a brief presentation on the Contract Spaces Program and how money is appropriated.


Mr. Morgan explained that Kentucky participates in the Southern Regional Education Board (SREB) Contract Spaces Program for Veterinary Medicine Program and Optometry School Program. Kentucky pays the schools the difference between in-state and out-of-state tuition for a pre-determined number of Kentucky Students. Kentucky Residents compete for Kentucky’s reserved spaces. Those who are awarded these spaces attend the institution and pay the in-state tuition rate.


He stated that recently Kentucky has funded 164 veterinary medicine slots that were filled at Auburn University and Tuskegee University, and 44 optometry slots that were filled at Southern College of Optometry, Indiana University, University of Alabama-Birmingham and most recently University of Pikeville.


Mr. Morgan explained that House Bill 303 specifies that CPE maintain the program’s FY 2015-16 funding at $5.6 million in each year of the 2016-2018 biennium. In order to stay within budget and maintain spaces CPE took necessary action and negotiated with SREB and partners a ‘hold’, which saved Kentucky approximately 6 percent on tuition rate increases for most SREB spaces. This action funded all but one optometry space and all veterinary for FY 2016-17. For FY 2017-18 CPE negotiated a lower rate for SREB spaces and funded all but four optometry and two veterinary spaces.


            Mr. Morgan explained that due to budget shortfalls CPE would need approximately $541,000 in order to recover the necessary funds to keep all contract spaces and recuperate CPE monies that were used out of its general fund budget.


            Other Business

            After the testimony at the October 27, 2016 meeting, Jack Couch, KIPDA presented before the committee regarding the formula dating back to 1976 used to appropriate funds through the Joint Funding Administration (JFA). He stated that 70 percent of the JFA funds are divided evenly among the 15 Area Development Districts (ADDs), 20 percent is the allocated based off population, and the last 10 percent was used several different ways in the past. He explained that this is the formula that the 15 ADDs have agreed upon and discussed with the Department of Local Government in hopes to go back to this formula in the future.


            With no further business before the committee, the meeting was adjourned.