On Jan. 7, Kentucky Gov. Andy Beshear made his annual State of the Commonwealth Address at the Thomas D. Clark Center for Kentucky History in Frankfort. This is Beshear’s seventh State of the Commonwealth and his final budget report as governor. In his address, Beshear discussed the economy, new proposals including housing and economic reforms and the state of the job market, among other things.
Beshear announced that, in the last year, his administration has invested more than $10.5 billion in the private sector. Kentucky also gained 9,600 jobs. These numbers put 2024 as the second best year in the history of our state, a title which gives the administration the first, second, third and fifth largest years documented for Kentucky.
Beshear also reported that they have seen the highest three year average for new wages last year, with the average incentivized wage just under $30 an hour.
Despite President Donald Trump’s damaging tariff policies, which Beshear opposed in his address, Kentucky still grows, even while most states’ economies slowed or even saw a recession. In fact, Kentucky earned a top five ranking for economic development.
Multiple companies invested in Kentucky, from GE Appliances to Apple. Beshear stressed that, despite disagreeing politically with some of the company investors, they share the same goal. Both Beshear and the investors want to strengthen the energy economy.
“There ain’t nothing Democrat or Republican about a good job,” Beshear said.
Beshear’s proposed budget includes $70 million in per-site development to create job ready sites and $100 million for projects that need infrastructure tweaks. There is also, for the first time, $25 million going towards rural economic development funds to bring jobs to those areas.
Beshear discussed the impacts of Trump’s One Big Beautiful Bill Act, which could close 35 rural hospitals, fire 20,000 healthcare workers and eliminate coverage for 200,000 Kentuckians. Beshear’s budget pushes back against the bill: it fully funds Medicaid, includes $25 million for nursing student loan forgiveness, creates a $125 million hospital fund for rural areas and more.
It was also announced that 20,000 improvement miles were completed or in progress. The administration also cut the ribbon on the completed approach to the I-69 Ohio River Crossing and began construction on the final part of the Mountain Parkway through Appalachia.
In terms of public safety, Beshear said that the Kentucky State Police (KSP) is up to 1,896 team members and that Kentucky has 8,000 local law enforcement officers. The new Western Kentucky Law Enforcement Train Center opened and produced its first graduating class of 21 officers.
The KSP Child Crime Task Force arrested 474 online child predators since late 2019. Beshear also mentioned how last April, the administration announced more than a dozen new vocational programs in prisons.
The governor also remembered the deaths from floods, tornados and the UPS plane crash that occurred in November.
“Tonight, let’s recognize and remember all the families that have suffered loss. And let’s give a big thank you to all our first responders,” Beshear said.
The governor stressed that public education is a priority in our state and that he is, “unapologetically a 100% pro-public education governor.” He proposed $159 million for educator raises. This proposal would increase take-home pay by almost 7%. In addition, the budget will add $560 million to teacher retirement funds.
Beshear emphasized that the main objective of succeeding in this budget is funding pre-K for all. Beshear explained that for every one dollar invested in pre-K, ten dollars cycle through our economy.
“If you’re against this because you think it gives me a win, what you’re really doing is handing these kids a loss. Pre-K for all is the right thing to do, so let’s get it done,” Beshear said.
To close, Beshear made two final proposals. The first gives $50 million to Kentucky food banks. This will help the 114,000 Kentuckians that would otherwise go hungry due to cuts in the SNAP program. The second develops a $75-million fund to help at-risk Kentuckians be able to pay their utility bills.
Beshear finished his address by urging the state to come together in a time of need.
“We always come together in times of need, and that’s what makes me so proud to be a Kentuckian. In Kentucky, we’ve turned down the temperature. We’ve worked together because our people deserve a government that unites instead of divides,” Beshear concluded.
