Call to Order and Roll Call
The second meeting of the Budget Review Subcommittee on General Government, Finance, Personnel, and Public Retirement of the Interim Joint Committee on Appropriations and Revenue was held on Thursday, September 28, 2017, at 10:00 AM, in Room 129 of the Capitol Annex. Representative Suzanne Miles, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Danny Carroll, Co-Chair; Representative Suzanne Miles, Co-Chair; Senators Joe Bowen and Dennis Parrett; Representatives Tim Couch, Will Coursey, Myron Dossett, Jim Gooch Jr., Richard Heath, Kim King, Adam Koenig, Michael Meredith, Russ A. Meyer, Jerry T. Miller, Phil Moffett, Rick G. Nelson, and Jim Wayne.
Guests: Becky Gilpatrick, Director of Student Aid, Kentucky Higher Education Assistance Authority (KHEAA); William Crump, MD, Associate Dean, University of Louisville (UofL) School of Medicine, Baptist Health Madisonville; Samantha Hays, MD, Resident at Baptist Health Madisonville; Lisa Wilson, Associate Provost for Finance and Operations, University of Kentucky (UK); Angie Martin, Chief Budget Officer, UK; Nancy Hale, President and CEO, Unlawful Narcotics Investigations, Treatment and Education (Operation UNITE); Jared Arnett, Executive Director, Shaping Our Appalachian Region (SOAR); Donna McNeil, Executive Director, Kentucky Infrastructure Authority (KIA); Steve Johnson, VP of Governmental, Community, and Legislative Affairs, Owensboro Health Family Medicine Residency Program; Michael Scherm, MD, Chief Medical Officer, Owensboro Health.
LRC Staff: Liz Columbia, David Talley, and Spring Emerson.
Chair Miles requested a motion to approve the minutes of the July 27, 2017 meeting; motion was made by Representative Nelson, seconded by Representative Moffett, and the minutes were approved without objection.
Kentucky Higher Education Assistance Authority (KHEAA):
Osteopathic Medicine Scholarship Fund
Coal County Pharmacy Scholarship Program
Becky Gilpatrick, Director of Student Aid, KHEAA, gave an overview of the scholarship programs that are funded with Coal Severance Tax Funds.
University of Louisville Research Foundation (ULRF):
Trover Clinic Grant
William Crump, MD, Associate Dean, University of Louisville School of Medicine, Baptist Health Madisonville, and Samantha Hays, MD, Resident at Baptist Health Madisonville, gave an overview of the Trover Clinic grant that is funded with Coal Severance Tax Funds.
In response to a question from Representative Miller regarding the funding for Trover Clinic versus Owensboro Health, Chair Miles explained that the Trover Clinic funding was reduced in the current budget, while the funding for Owensboro Health was a one-time occurrence for the start-up of the residency program. Future funding will depend on the numbers in the upcoming budget cycle for the next fiscal biennium.
In response to a question from Representative Dossett, Dr. Crump said there are sixteen third- and fourth-year students in the residency program. Representative Dossett commented that with more physicians retiring, young replacements are desperately needed. Dr. Crump said it is difficult to fill Kentucky residencies with Kentuckians; however, that is the goal.
Unlawful Narcotics Investigations, Treatment and Education (UNITE):
Operation UNITE
Nancy Hale, President and CEO of Operation UNITE, gave an overview of the agency, which is funded with Coal Severance Tax Funds.
In response to questions from Representative Wayne, Ms. Hale said Operation UNITE provides vouchers for residential treatment at facilities that his agency contracts with for those services. There are approximately 4,200 clients being treated with vouchers, and some of those clients are eligible for Medicaid, but some are not. Medicaid only covers 28 to 37 days of treatment, and that is not enough. Many studies have shown that short-term treatment will not be as effective in helping clients move into long-term recovery. Clients with vouchers from Operation UNITE are able to receive 120 days of residential treatment, as well as move into the educational phases of treatment, which will help them to move into long-term recovery and to transition successfully back into their communities. Facilities are selected after they have met certain requirements, such as the number of beds, having certified alcohol and drug counselors and dietitians on staff, meeting state fire codes, and other requirements. Without the $2 million per year from the Coal Severance Tax Funds, Operation UNITE would cease to exist.
Representative Couch commented that Operation UNITE provides an invaluable service in east Kentucky.
In response to a question from Representative Coursey, Ms. Hale said Operation UNITE provides education initiatives primarily for grades four through twelve, with the UNITE Service Corps program working with elementary students as early as third grade. Last year, the fifth congressional district had approximately 8,000 young people actively involved in UNITE clubs in grades four through twelve. There are currently 112 students going to college on an “I Am UNITE” Scholarship representing a drug-free choice as UNITE Ambassadors. Camp UNITE is a summer camp for middle school students at the University of the Cumberlands, and many of the former campers, who are now in college or in the workforce, return to give a week of their time each summer as camp counselors.
In response to a question from Chair Miles, Ms. Hale said one hundred percent of Operation UNITE’s budget is from Coal Severance Tax Funds.
Representative Dossett thanked Ms. Hale for the important work performed by Operation UNITE.
Shaping Our Appalachian Region (SOAR)
Jared Arnett, Executive Director of SOAR, gave an overview of the program, which is funded with Coal Severance Tax Funds.
In response to a question from Senator Parrett, Mr. Arnett said Brady Industries is building their corporate headquarters in Ashland, Kentucky, and are projecting to provide 550 jobs at that facility.
Kentucky Infrastructure Authority (KIA)
Donna McNeil, Executive Director of the KIA, gave an overview of how Coal Severance Tax Funds are used in that agency.
Owensboro Health: Family Medicine Residency Program
Steve Johnson, VP of Governmental, Community, and Legislative Affairs, and Michael Scherm, MD, Chief Medical Officer, gave an overview of the use of Coal Severance Tax Funds in the Family Medicine Residency Program at Owensboro Health.
Representative Wayne commented that it is important for us to realize that Kentucky is in a fiscal crisis and in need of new revenue. The programs discussed today are very important and emphasize that need. Dr. Crump said that they went before the Daviess County Fiscal Court (DCFC) with their story and the DCFC gave up some of its own Coal Severance funds to help, even though it is also financially strapped.
Chair Miles thanked the agencies for their presentations before the subcommittee and called for a motion for adjournment. A motion was made by Representative Meredith, seconded by Representative Koenig, and the meeting was adjourned at 11:42 AM.