Pensions, juvenile justice, economic forecasts

Interim meetings covered several issues important to Kentucky families during the week of September 21, including an important change to health insurance coverage for retired teachers who are under age 65 or otherwise not eligible for Medicare. Beginning this year, these retirees will be required to actively enroll in their health insurance rather than being automatically re-enrolled. This is similar to how coverage works for most people, including state employees, but it is critical that affected retirees understand they must take action to maintain their coverage. Lawmakers also received updates on the Teachers' Retirement System, Medicaid research and oversight, juvenile justice and the state's latest revenue forecast.

Statutory and interim joint committee (IJC) agendas included:

Public Pension Oversight Board: Legislators received an update on the latest Teachers' Retirement System experience study, which found no major changes were needed to the system's actuarial assumptions. Experience studies are a standard part of managing a retirement system. Actuaries compare past assumptions with actual experience and consider factors such as inflation. They also conduct an annual evaluation of the system's gains and losses from the previous year. Changes identified in the experience study will be included in that evaluation and are expected to result in a small increase in the system's unfunded liability.

Medicaid Oversight & Advisory Board: Members received an overview of covered services under Kentucky Medicaid and the Kentucky Children's Health Insurance Program. Members also learned about Medicaid and KCHIP State Plan Amendments, which must be submitted to the federal government for approval before certain changes can be made to the programs, such as changes to covered services.

Healthcare Transparency Dashboard Subcommittee: Lawmakers learned about the Medicaid State University Partnership program, a collaboration between the Cabinet for Health and Family Services and state universities to conduct projects and research that inform evidence-based policy and improve outcomes for Medicaid beneficiaries. Members expressed concerns about the Cabinet's lack of communication with the legislative branch about resulting policy recommendations, as well as the lack of actionable recommendations from some research. They also requested that the Cabinet provide them with a list of policy recommendations resulting from the 2026 research reports once available.

Juvenile Justice Oversight Group: Legislators heard from One Lexington about efforts to reduce youth and gun violence in the community. The panel learned about youth mentoring and in-school tutoring programs that help connect with young people who may be at greater risk. Members also heard about One Lexington's crisis outreach program, which responds quickly when gun violence occurs. The discussion included ways successful programs in Lexington could be adapted and used in communities across Kentucky.

Consensus Forecasting Group: Created by the legislature to provide the official revenue estimates required by state law. The Consensus Forecasting Group is also different from most legislative committees because it has no legislators serving on it. Kentucky's revenue forecast has improved, with state forecasters now expecting about $1.7 billion more in General Fund revenue over the next two years. It is important to remember these are educated estimates, not money the state has in hand, so it would be irresponsible to make new spending commitments based on money we may not actually collect.

The interim continues as we keep our eyes on the upcoming legislative session, which we will convene in right around a hundred days on Tuesday, January 5, 2027. If you would like to learn more about what we are working on, please visit legislature.ky.gov. Our website contains links to thousands of resources, including our YouTube page with archived recordings of committee meetings, minutes and presentations from current and future meetings, and information about previous sessions.

As always, I can be reached anytime through the toll-free message line in Frankfort at 1-800-372-7181. You can also contact me via email at Ryan.Bivens@kylegislature.gov and keep track through the Kentucky legislature's website at legislature.ky.gov.

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