►
Description
Meeting Start 00:00:00
Roll Call 00:00:10
Approval of August Minutes 00:01:51
University of Kentucky Update 00:02:25
Cybersecurity Discussion 00:33:48
Pension Update 00:47:32
Sales and Use Tax Exemption for Diapers Discussion 01:20:21
Follow-up Information and Correspondence Received – 01:39:53
Next Meeting Announcement – 01:40:05
A
C
A
Here
very
well
having
a
quorum
duly
constituted,
conduct
business.
At
this
time,
the
chair
will
entertain
a
movable
on
the
approval
on
the
minutes
from
August.
Second
meeting
fine,
all
right.
We
have
a
motion
in
the
second
all
in
favor
signify
by
saying
aye
aye
opposed
like
sign
the
eyes.
Have
it
the
mean
minutes
are
approved.
One
quick
note
before
we
get
to
Rolling.
Here
we
have
a
new
staff.
Member
Adam,
Johnson
Adam,
raise
your
hand
for
us
there.
A
A
Okay,
we're
going
to
change
the
order
up
just
a
little
bit
here
this
morning,
so
everybody
knows
we're
going
to
switch
the
University
of
Kentucky
and
the
pension
update
to
accommodate
a
few
things.
So
at
this
time,
Dr
capilouto.
If
you
would
like
to
come
forward
sir
and
proceed
with
your
testimony,.
D
Eli
Capital,
president
of
the
University
of
Kentucky
and
I'm
Bart,
Hardin
I'm,
the
director
of
government
relations
for
the
University
of
Kentucky.
Thank
you
and
good
afternoon.
I
appreciate
the
opportunity
to
be
with
you
today
and
chair
McDaniel
I,
especially
thank
you
for
giving
me
an
opportunity
to
share
some
information.
I
think
you'll
find
most
important.
D
D
Indeed,
everything
we've
done
over
the
last
decade
of
significance
in
terms
of
the
number
of
students
who
graduate
and
feels
responsible,
responsive
to
our
state's
needs
and
in
authorization
and
support
for
infrastructure
to
meet
our
mission.
All
of
that
has
been
done
with
you
because
of
your
support.
D
We
have
treated
and
healed
or
patients
than
at
any
time
in
our
history
patients
who
come
to
us
for
the
best
of
care.
At
the
worst
of
times,
we
are
more
aggressively
seeking
and
finding
solutions
to
the
problems
and
opportunities
confronting
our
state,
whether
it
be
cancer
or
opioid,
misuse,
energy
consumption,
diabetes,
Strokes,
heart
disease,
Health
disparities,
Economic
Development
and
advanced
Manufacturing,
and
we
have
served
alongside
you
in
every
County,
every
community
and
every
corner
of
this
Commonwealth.
D
D
I
reject
that
assertion
we
have
built
not
for
ourselves
but
for
the
future
of
Kentucky,
and
we,
with
your
help,
support
leadership
and
guidance,
believe
it
is
essential
that
we
continue
to
press
forward.
That's
the
case.
I
want
to
make
with
you
today
on
behalf
of
the
University
of
Kentucky,
on
behalf
of
the
state
we
serve
together
and
I'm
here
today,
representing
25
000
employees
and
over
34
000
students.
D
So
what
have
you
made
possible?
What
have
we
done
together?
We
have
been
able
to
enroll,
educate
and
graduate
more
students.
Take
a
look
at
this
slide.
We
like
to
say
we
put
students
first
in
everything
we
do
a
little
more
than
a
decade.
Uk
a
decade
ago,
UK
had
a
six-year
graduation
rate
of
58
percent
and
it
stubbornly
stood
there
for
several
years,
but
thanks
to
incredibly
hard-working
industrious
and
bright
students,
a
committed
faculty
and
staff,
we
have
been
on
a
trajectory
of
ascent
for
the
last
decade.
D
Last
week
we
announced
to
our
Board
of
Trustees
that
we
have
hit
a
70
percent
graduation
rate.
A
number
that
places
us
among
the
top
100
are
top
20
percent.
Universities
like
ours
that
Grant
bachelor's
degrees
in
the
country,
our
six-year
graduation
rate
that
70
percent
number
has
increased
by
more
than
12
percentage
points,
not
12
percent
12
percentage
points.
It's
a
record.
It's
recognized
on
that
Top
Line
in
the
graph.
D
D
The
number
of
certificates
awarded
has
also
increased
by
more
than
1200
in
that
time
period.
So,
according
to
our
most
recent
numbers
that
we
released
on
Friday,
that's
nearly
nine
thousand
five
hundred
degrees
in
certificates
conferred
in
2010.
It
was
just
five
thousand
and
eight
hundred
this
past
week
we
announced
our
largest
ever
first
year
class
of
nearly
6
500
students,
that's
up
from
400
for
last
year,
and
for
the
first
time
we
have
more
than
thirty
four
thousand
students
enrolled
at
the
University
of
Kentucky.
D
That
means
more
students
coming
to
UK.
It
means
more
students
will
graduate
than
ever
before
and
do
it
on
time.
It
means
more
graduates,
are
joining
Kentucky's
Workforce,
with
the
technical
skills
and
intellectual
capacity
to
contribute
and
Lead
whatever
will
face
them
in
the
future.
So
many
universities
have
increased
their
graduation
rates.
It's
not
something
new,
but
many
of
them
did
so
by
making
their
classes
smaller
and
becoming
more
Elite
and
selective.
D
D
D
The
performance
funding
model
adopted
by
the
general
assembly
in
2019
that
was
endorsed
by
all
universities,
funds,
Kentucky's
priorities.
What
are
those
more
bachelor's
degrees,
more
degrees
in
fields
where
Kentucky
has
the
most
need
stem
plus
Health,
more
students,
succeeding
from
underrepresented
backgrounds
and
low-income
households.
D
D
D
In
2018,
we
initiated
several
research
priority
areas.
We
call
them
rpas.
In
short,
we
are
focusing
the
talents,
intellectual
intellect
and
skills
of
our
best
researchers
on
Kentucky's
biggest
challenges
that
I
mentioned
earlier.
There
are
now
eight
rpas
in
areas
such
as
cancer
and
opioids
energy
and
advanced
Material
Science
and
several
others.
More
than
272
million
dollars
of
those
we
secured
last
year
are
in
these
research
priority
areas.
D
In
fact,
without
that
building
and
your
support,
we
would
not
have
been
able
to
make
an
historic
announcement
last
Friday
on
our
campus,
and
that
is
the
Marquis
Cancer
Center
now
enjoys
Comprehensive
Cancer
Center
status
from
the
National
Cancer
Institute.
So
what
does
that
mean?
First
of
all,
our
outpatient
clinic
visits
to
Marquee
over
the
last
decade
have
increased
by
70
percent.
D
There
are
only
56
of
these
designated
centers
across
the
United
States
we're
the
only
one
in
Kentucky
and
the
closest
one
is
200
miles
from
Lexington,
and
we
are
positioned
to
do
even
more
to
battle
this
scourge
in
a
state
with
cancer
rates
among
the
highest
in
the
country.
Our
progress
through
your
investment
is
essential
to
our
state's
health
and
its
future.
D
So
what
else
did
you
make
possible?
You
made
it
possible
for
us
to
keep
kentuckians
close
to
home
for
care.
This
slide
shows
what
has
happened
at
UK
Health
Care.
In
the
last
20
years,
we
have
more
than
doubled.
The
number
of
patients
that
enter
and
are
discharged
from
our
hospitals
from
under
20
000
to
over
43
000
this
year-
and
you
will
note
on
this
chart
that
asterisk
above
the
bar
in
2011,
is
when
the
Chandler
Hospital
Pavilion
a
opened.
D
D
D
D
A
A
D
Had
to
make
a
change,
our
students
were
voting
with
their
feet.
They
were
telling
us
they
weren't
happy
with
our
choices.
They
wanted
better
options
for
both
housing
and
dining.
So
we
didn't
ask
you
for
more
State
dollars
last
that
time.
At
that
time,
we
went
to
the
market
with
your
permission
and
blessing
and
salt
Partners.
What
did
that
yield?
D
D
They
are
modern
and
they
are
tasteful
for
sure,
but
they're,
none
of
the
swimming
pools
or
lazy
Rivers
beside
them
are
parking
decks
underneath
them,
as
you
see
sensationalized
in
some
stories,
but
they
are
Community
gathering
places
there
are
classrooms
in
these
residence
Halls.
We
have
created
Innovative,
living
and
learning
communities
where
students
interested
in
the
same
academic
areas
and
career
paths
can
learn
and
live
together.
D
D
We
worked
with
Kentucky
companies
like
temper
Seeley
to
provide
mattresses
at
a
reduced
cost
so
that
we
could
use
a
company
here
to
take
care
of
our
students,
a
private
partner,
assumed
all
the
risk
for
occupancy.
You
usually
don't
see
that
in
these
kinds
of
arrangements
we
do
not
have
such
an
agreement,
they
assume
the
risk.
We
do
not
require
any
student
to
live
on
campus
and
we
were
able
to
negotiate
with
our
partner,
stable
and
predictable
rate
increases
that
are
roughly
around
3
percent.
D
We
know
this
if
you
live
on
campus,
even
just
in
your
first
year,
your
likelihood
of
graduating
increases.
Your
gpas
are
higher
you're,
more
likely
to
get
involved
in
campus
activities.
Learn
those
soft
skills
you're
more
likely
to
make
deep
and
Lasting
connections
for
that
lasts
for
a
lifetime
and.
D
D
They
had
more
nutritional
plans
at
more
locations,
so
that's
been
very
successful.
We
have
invested
four
billion
dollars
to
date
in
more
than
8
million
square
feet
on
our
campus
The
Wall
Street
Journal
recently
pointed
out.
We
have
invested
heavily
in
infrastructure;
indeed
we
have,
but
we
used
Innovative
approaches
there
next
slide
Bob.
D
This
illustrates
that
we
have
utilized
private
Partners
to
improve
what
we
offer
and
to
provide
more
stability
and
predictability
for
what
we
charge
students.
We
also
turn
to
generous
donors,
as
with
our
Jacob
science
building
and
our
Gatton
Student
Center,
to
take
some
of
that
cost
burden
away
from
students
and
Families.
D
So
roughly
one-third
of
the
infrastructure
investment
has
been
for
Health
Care
Facilities
to
treat
kentuckians,
and
none
of
that
is
paid
for
by
general
fund
dollars.
We
used
a
variety
of
sources
to
fund
this
four
billion
dollars,
such
as
University
cash,
referred
to
as
restricted
funds,
University
debt,
also
known
as
agency
funds,
and
then
private
partners
and
federal
funds.
D
Our
debt
payment,
as
a
percent
of
our
revenues,
was
2.5
percent.
Even
with
this
four
billion
dollar
investment
a
decade
later,
it
is
less
than
two
percent.
We
have
been
prudent
in
the
way
we
did
this
and,
despite
what
you
may
have
read,
we
have
significantly
arrested
the
rate
of
increases
that
students
are
paying
to
attend
the
University
of
Kentucky,
we're
doing
more
for
those
who
can
least
afford
it.
In
fact,
our
four-year
rolling
average
increase
for
tuition
and
mandatory
fees
is
under
two
percent.
D
D
Those
students
recently
paid
zero
tuition
and
fees
even
get
money
to
pay
for
the
other
costs
that
you
encounter
on
a
college
campus
and
we're
doing
more
with
Innovative
programs.
Let's
go
to
the
next
one.
I'll
mention
three
UK
leads
it's
being
mimicked
all
across
the
country
to
reduce
the
unmet
financial
need,
which
accelerates
graduation
first
of
its
kind,
UK
invest.
Every
student
at
the
University
of
Kentucky
has
access
to
an
investment,
a
brokerage
account.
Now.
How
do
they
get
money
in
that?
By
doing
the.
D
Career
skill,
building,
healthy
behaviors
and
so
forth,
Fidelity
is
our
partner.
There
we've
closed
the
technology
Gap
with
an
arrangement
so
that
every
student
receives
an
iPad
when
they
arrived
on
our
campus,
which
was
a
godsend
when
the
pandemic
showed
up.
So
let
me
close
with
this
story.
This
is
something
else
you
made
possible.
D
It
was
just
kind
of
like
stay
home
join
the
work
Workforce,
but
I
wanted
something
more
Ashton
said
at
your
strong
Direction
and
behalf
of
this
state.
Something
more
is
exactly
what
we
provide
at
the
University
of
Kentucky
Ashton
is
a
member
of
the
graduating
class
of
2026
and
was
in
London
this
summer
as
part
of
a
program
we
believe
is
only
found
at
the
University
of
Kentucky.
It's
called
explore
first
careers
cultures
and
Connections
in
an
education
opportunity
developed
by
our
office
of
student
success
and
International
Center.
D
They
were
exposed
to
cultural
and
career
settings
at
places
like
LinkedIn
Diageo,
which
is
an
international
company
that
owns
Jim
Beam
here
in
our
state
and
has
supported
our
Jim
Beam
Institute
and
Compass
Group
All
Tech
great
construction.
They
heard
from
Executives
on
those
teams,
some
of
whom
were
first
generation
college
students
themselves
and
for
some
of
our
students.
The
Experience
abroad,
was
their
first
plane
trip,
but
they
learned
that
wanting
something
more
doesn't
have
to
be
just
a
dream
or
an
aspiration.
That's
too
ambitious
or
too
high
to
reach
too
far
for
their
grasp.
D
D
D
A
A
Think,
10
years
ago
you
and
I
and
Senator
Givens
sat
across
the
street
around
the
table
for
a
very
difficult
meeting
where
you
laid
out
your
passion
for
the
University
of
Kentucky
and
in
the
last
decade
the
division,
the
teams
you've
built
and
the
relationships
that
you've
strengthened,
have
certainly
pushed
the
university
forward
and
you
deserve
as
much
credit
as
anybody
in
that,
and
we
do.
Thank
you
very
much.
That
being
said,
representative
Palumbo
has
a
question.
F
Yeah
I
just
have
a
comment:
Dr
capelutu
I
want
to
publicly
thank
you
for
your
leadership
at
our
Flagship
University.
You
have
brought
us
forward
and
I
appreciate
that,
and
I
would
also
like
to
publicly
thank
my
high
school
classmate
Tommy
Lewis
for
funding
the
Lewis
Honors
College,
and
for
you
to
recruit
him
to
do
that.
Thank
you
so
much
Dr
capilouto
for
what
you've
done.
G
Thank
you
for
being
here
today.
The
page
and
I
agree
with
this
100
about
the
25
of
Kentucky
undergraduate
students
coming
from
family
with
a
meeting
of
less
than
25
000
income.
I
agree
with
everything
that
you're
doing
here,
but
just
a
general
comment
as
I
see
things
that
are
going
on
in
Frankfort,
sometimes
I'm
very
concerned
about
people
who
are
stuck
in
the
middle,
maybe
to
moderate
or
to
moderately
High
income.
It
seems
like
these
people
sometimes
get
left
behind.
So
as
we
go
into
the
future.
G
D
That's
a
a
very
good
comment
and
one
we
pay
attention
to
our
leads
program
looks
at
unmet
need
across
the
Spectrum.
We
know
that
if
we
can
get
even
those
who
are
in
that
middle
income
group
to
less
than
five
thousand
dollars
a
year
in
unmet,
need
they're
going
to
be
successful.
I'd
like
you
to
remember
this
too
50
of
all
the
students
that
graduate
from
the
graduate
with
no
debt
of
that
other
50
percent
that
have
debt
it's
around
thirty
thousand
dollars.
So
we
concentrate
on
that.
D
We
do
not
want
an
education
at
the
University
of
Kentucky
to
you
or
your
family
when
it
comes
to
achieving
wealth
that
you're
going
to
need
to
pass
on
to
your
children,
and
your
children's
children
are
to
give
them
an
opportunity
to
own
a
home
and
experience
things
that
we
know
contribute
to
the
wealth
of
a
family.
So
thank
you
for
that
comment.
A
A
C
A
A
H
So
I'm
they
did
all
the
work
I'm
just
up
here,
really
representing
the
the
new
technology
operating
board,
whereas
two
years
from
now
we'll
be
looking
at
oversight
the
budget,
but
one
of
the
things
that
you
all
did
this
last
session
is
give
us
an
immediate
need
that
we
need
to
look
at.
One
of
them
was
cyber
security.
H
We
had
a
great
coding
day
yesterday,
where
the
post-secondary
post-secondary
came
in
and
talked
about
what
they're
doing
for
cyber
security,
but
this
is
an
essential
need
in
the
state
we
have
cities
that
have
been
hacked.
We
I
believe
we
probably
have
ransoms
that
we
have
paid
for.
So
this
is
a
serious
issue.
These
universities
are
getting
out
ahead
of
it.
H
They
come
to
a
great
agreement
I'm
going
to
let
you
talk
about
what
we've
they've
agreed
on
and
I
expect
to
have
a
bill
that
will
really
promote
the
cyber
security
industry
in
Kentucky
in
the
education
that
we
need
to
really
protect
all
of
our
governments
and
our
citizens
and
private
sector.
So
that's.
I
C
Senator
Williams
thank
you
and
chair
McDaniel,
chair
Petrie
members
of
the
committee.
Thank
you
for
allowing
us
a
few
minutes
today
to
talk
about
an
important
topic
to
the
Commonwealth
and
cyber
security,
and
cyber
centers
is
Senator.
Williams
just
pointed
out,
president
schatzel
and
I
are
proud
to
be
here
with
you
again
to
talk
about
this
very
important
topic,
we'll
take
just
a
few
minutes
and
we'll
be
happy
to
answer
questions
at
at
the
end
of
our
presentation.
C
We've
had
programs
since
hired
reform
some
25
years
ago
under
chair
Petri,
chair
McDaniels,
Senator,
neimus,
leader,
Rudy,
representative,
Dawson
and
and
others
many
others
have
have
toured
through
our
facilities
at
Murray,
State
University,
and
we
appreciate
it.
We
also
appreciate
Senator
Williams,
as
he
co-chairs
a
technology
committee
which
we're
addressing
this
topic
in
the
days
to
come.
Cyber
security
is
vitally
important
to
our
Commonwealth,
this
country,
the
world,
our
military,
our
business
community,
our
economy
in
general,
and
personally,
it's
a
daily
issue.
We
we
read
about
it,
hear
about
it
near
daily.
C
The
wars
of
the
future
will
be
impacted
greatly
by
the
cyber
space.
If
you
will
and
then
cyber
security
in
general
Kentucky
needs
to
take
a
a
larger
and
more
aggressive
role
in
this
particular
area.
The
Bureau
of
Labor
Statistics
has
reported
that
over
the
next
few
years,
this
field
will
grow
about
32
percent
I.
Personally
think
it
will
be
much
larger
than
that
today,
it's
estimated
there's
about
700
000
jobs
open
in
the
cyber
security
field.
C
Some
history
very
quickly,
as
many
of
you
know,
I
had
the
honor
of
serving
here
several
years
ago,
and
this
topic
was
important.
Then
we
didn't
call
it
cyber
security
back
25
years
ago
it's
Murray,
State,
University's
program
of
Distinction,
and
so
it's
obviously
very
important
to
us.
We've
spent
millions
of
dollars
enhancing
cyber
security
over
many
many
years
since
higher
education
reform
was
put
in
place
in
1997
and
Beyond,
when
this
legislature
required
institutions
to
have
a
program
of
Distinction
and
again.
This
is
our
program
of
Distinction.
C
C
We
work
very
closely
with
companies
across
the
state
state
and
federal
agencies
for
Campbell's
in
our
backyard,
among
many
others,
at
Murray,
State
University.
We
have
a
vibrant
and
healthy
cyber
Center
and
related
academic
programs.
Again,
many
of
you
have
seen
our
Center
and
those
particular
programs
since
2020
the
enrollment
and
our
cyber
Security
Programs
is
up
54
percent
our
Freshman
Class
coming
in
this
year.
Majoring
in
cyber
areas
is
up.
30
percent,
one
of
our
faculties,
just
published
a
new
textbook
I
received
a
copy
of
it
just
a
few
days
ago.
C
We
have
a
tremendous
need
for
added
space.
Other
program
needs,
including
equipment.
We
have
provided
a
request
of
some
of
these
particular
items
at
the
request
of
members
of
this
Committee
in
recent
days
to
be
considered
the
2024
legislative
session,
the
probably
most
importantly,
this
summer,
Murray
State
University,
the
University
of
Louisville
and
other
universities
worked
on
a
proposed
bill
for
the
next
legislative
session.
In
order
to
develop
an
organized
Statewide
cyber
Center
Network
across
this
Commonwealth,
it
would
be
comprised
of
Institutions
with
cyber
related
programs.
C
C
You
should
have
a
copy
of
the
talking
points,
I
think
in
your
packets.
Today,
many
of
you
have
a
copy
of
a
of
a
draft
bill
as
long
along
with
Senator
Williams,
also
as
his
role
as
in
as
co-chair
I
should
say
in
this
technology,
this
new
technology
committee,
but,
most
importantly,
Mr
chair.
Thank
you
for
the
opportunity
to
be
here.
Thank
you
for
the
opportunity
to
talk
about
this
I
know.
President
schatzel
has
comments
as
well
and
we'll
be
happy
to
answer
any
questions
at
the
end.
Thank
you
again.
Thank
you.
J
Thank
you
very
much.
I
also
want
to
add
my
thanks
to
chairs
Petrie
and
McDaniel
for
inviting
us,
as
well
as
the
members
of
the
committee
as
well
as
I,
want
to
be
able
to
thank
my
colleague,
president
Jackson,
for
everything
he's
done
in
terms
of
partnering,
with
the
other
universities
and
amongst
the
presidents
to
be
able
to
get
to
where
we
are
today
and,
of
course,
Senator
Williams.
Thank
you
for
your
encouragement
as
well.
J
I.
Think
we've
read
in
the
paper
in
the
last
few
days
that
we've
had
Clorox
going
down
because
of
a
cyber
security
attack.
Two
weeks
ago
we
looked
at
MGM
Resorts
across
the
country
going
down
every
single
week.
We
see
a
major
company
being
struck
by
cyber
and
the
inability
to
be
able
to
perform,
provide
their
operations
as
well
as
produce
their
products
and
offer
their
services
we've
seen
that
happen
in
healthcare.
We've
seen
it
in
utilities
across
the
board
to
be
able
to
do
that.
J
But
Recent
research
has
shown
the
fact
that
57
percent
of
small
and
medium-sized
companies
have
suffered
a
Cyber
attack
in
the
last
12
months.
57
percent
of
those
groups
they've
also
said
that
over
90
percent
say
that
they
do
not
have
the
resources.
They
don't
have
the
training.
They
don't
have
the
skills
to
be
able
to
address
cyber
attacks
when
they
occur,
and
it
can
take
days
and
weeks
for
them
to
return
to
operations
fully.
J
It's
something
that,
as
we've
said,
is
just
increasing
dramatically
across
the
country.
When
I
talk
to
corporate
people
and
talk
to
a
lot
of
business
people,
they
don't
talk
about
if
they
talk
about
when
that
they
will
be
struck
by
a
Cyber
attack.
So
this
is
something
that
we
can
wait
no
longer
about
in
Kentucky
and
to
be
able
to
have
this
Consortium
put
together
and
to
address
in
this
way.
I
just
want
to
be
able
to
say
it's
much
needed
to
be
able
to
do
that.
J
Over
the
past
three
years,
uofl
has
received
more
than
16
million
dollars
to
support
cyber
security,
research
and
training.
We
are
also
members
of
the
US
Department
of
Defense
Elite
National,
cyber
command
and
strategic
command.
We
too
offer
numerous
programs
at
cyber
security
from
the
credentialing
bachelor's
Masters,
as
well
as
doctoral
level.
J
We
offer
certificates,
as
I
said,
but
also
we
have
a
law
enforcement,
cyber
security
project
that
offers
training
to
law
enforcement.
A
national
cyber
teaching
Academy
that
provides
cyber
teaching
to
high
school
teachers
and
also
the
NSA
has
acquired
with
us
to
be
able
to
possibly
host
the
fall.
National
Science
of
academic
excellence
in
cyber
security
for
this
next
fall,
which
would
be
500
to
600
people
coming
to
be
able
to
talk
about
cyber
would
convene
on
it.
J
Cyber
is
much
needed
to
be
able
to
house
these
resources
and
to
provide
a
One-Stop
shop
for
all
of
the
businesses,
all
of
the
organizations
all
of
the
service
organizations
that
they
know
where
to
come
when
they
can
be
trained
and
they
can
be
supported
in
being
able
to
address
this
threat
that
we
just
see
continuing
to
grow
so
I'll
leave
that
with
and
see.
If
there's
any
questions
for
any
of
us.
So
thank
you
very
much
for
your
time.
A
C
L
Good
afternoon
Mr
chair,
Beau
Barnes
I
serve
as
Deputy,
executive
secretary
and
general
counsel
for
the
teachers
retirement
system.
I
know,
we've
had
a
full
agenda
today
and
I've
been
asked
to
be
succinct,
so
I've
only
got
four
slides,
but
a
lot
of
numbers
I'm
not
going
to
cover
all
those
numbers
but
I'm
going
to
cover
enough
of
those
numbers
and
make
a
couple
of
points
so
that
this
committee
will
be
fully
informed
about,
what's
being
represented,
as
it
relates
to
trs's
financial
status.
With
that
we'll
go
to
the
first
slide.
L
This
is
our
cash
flow
slide
and
you
can
kind
of
break
this
slide
down
into
thirds.
The
top
third
is
Cash
inflow
that
represents
dollars
coming
into
TRS.
The
middle
third
is
Cash
outflow,
which
represents
dollars,
leaving
TRS
and
the
bottom
Third
Kind
of
represents
the
results
of
those
cash
inflows
and
outflows.
On
the
left
hand,
side,
dark,
blue
you'll,
see
the
description
of
what
those
various
cash
flows
are
and
the
results
are
in
the
middle
two
columns
you'll
see
the
cash
flows
for
pension
and
then
to
the
right
two
columns.
L
You
see
the
cash
flow
for
the
retiree
health
insurance
for
us
two
different
trusts,
one
for
the
pension,
one
for
Atari
health
insurance.
So,
let's
start
you'll
see
in
the
middle
two
columns.
We
have
FY
23,
which
I'm
going
to
focus
on
in
FY
22
for
comparison
and
at
the
top
you'll
see
member
contributions
for
fiscal
year
23.
You
know
ending
June
30th
of
368
million
200
000,
which
is
slightly
up
from
the
prior
year,
employer
contributions,
1.14
billion
six
hundred
thousand
down
from
the
previous
year
and
there's
a
reason.
L
Employer
contributions
are
down
from
the
previous
year
because
in
the
2022
budget,
the
general
assembly
appropriate
a
one-time
lump
sum
amount
to
TRS
to
pay
off
certain
unfunded
liabilities,
and
that
was
479
million
dollars
that
was
appropriated
and
we
received
at
the
end
of
the
fiscal
year
22..
So
just
a
one-time
payment.
That's
why
you
see
that
anomaly:
investment
income
for
the
pension
trust
here
we
just
have
stock
dividends
and
interest
income
represented
interest.
Income
is
going
to
be
on
bonds.
It's
going
to
be
on
money.
L
Market
accounts
it's
going
to
be
on
private
bank
loans
and
those
are
the
things
that
are
that
generate
interest
for
us
and
you'll
see
that
we
were
up
a
little
a
little
bit
for
fiscal
year,
23
or
the
prior
year
total
cash
inflows.
You
see
there,
the
one
billion
898
million
one
hundred
thousand
dollars.
Now,
let's
go
down
to
the
middle
third
and
the
cash
outflows
and,
of
course,
the
biggest
cash
outflow.
As
you
expect,
is
going
to
be
benefit
payments,
2
billion
418
million
two
hundred
thousand
dollars.
We
also
have
administrative
expense.
L
You
know
a
small
expense.
Our
administrative
expenses
are
very
small
compared
to
other
public
pension
plans
at
14
million
five
hundred
thousand
dollars
they're
up
a
little
from
the
previous
year.
For
two
reasons:
the
state
awarded
and
across
the
board
increase
of
eight
percent
to
State
Employees,
and
also
we
have
some
upgrades
one-time
upgrades
to
our
I.T
system
that
are
reflected
there
as
well.
Those
can
get
kind
of
expensive,
so
total
outflows,
2
billion,
four
hundred
thirty
two
thousand
432
million
seven
hundred
thousand,
and
then
you
see
below
that
cash
flow.
L
You
know
positive
or
negative
and
you'll
see
the
number
534
million
six
hundred
thousand,
that's
in
parentheses,
because
that's
negative,
that's
negative
cash
flow
and
you'll
see
the
year
before.
Just
to
point
this
out
it
was
positive,
51
million
600
000.
again.
That
was
just
as
a
result
of
that
one-time
lump
sum
payment
of
certain
liabilities
in
the
amount
of
479
million
dollars.
We
are
typically
you're
going
to
see
every
year
being
negative
cash
flow
year.
L
Now,
let
me
tell
you
very
quickly:
the
negative
cash
flow
is
very
manageable
where
we
are
now,
we've
been
getting
additional
funding
for
seven
straight
years
and
this
year
we're
in
right
now
will
Mark
eight
full
years
straight
years,
a
full
or
very,
very
near
full
funding
for
the
pension
fund.
So
before
we
got
started
getting
additional
funding,
we
were
headed
in
in
the
territory
where
we
were
our
actuators
worried
about
the
cash
flow
problem
getting
too
big.
L
Now
it's
manageable,
there's
nothing
unusual
about
having
negative
cash
flow
with
a
pension
fund,
so
great
news
there.
The
next
line
for
the
pension
shows
a
very
important
number,
because
it
you
don't
get
the
full
story.
Looking
at
the
numbers
I
just
went
over,
you
have
to
look
at
this
next
line,
investment
gains
or
losses
realizes
and
unrealized,
so
the
realized
investment
gains
would
be
when
stocks
are,
for
example,
selling
really
high
and
we
sell
those
stocks
at
a
profit.
L
We
Harvest
those
stocks
if
you
will
and
the
unrealized
is
just
the
increase
in
value
of
the
assets
of
the
system.
So
it's
a
very
important
component
of
the
financial
health
of
the
retirement
system.
Now
I'm
going
to
go
down
to
the
bottom,
two
numbers
you'll
see
22
billion
900
000
dollars.
That
was
the
size
of
the
pension
trust
fund.
As
of
July
1st
2022
and
the
number
below
that
24
billion
248
248
million
800
000
reflects
the
size
of
the
trust
fund,
the
pension
trust
fund,
as
of
June
30th
2023.
L
So
that's
a
gain
of
1.348
billion
dollars
for
the
year
good
news
there,
medical
insurance,
those
other
two
columns,
reflect
pretty
much.
The
same
thing.
I'll
just
point
out
a
couple
of
things
here:
line
items
one:
the
cash
flow:
you
see
the
cash
flow
for
the
retiree
health
insurance
trust
was
254,
a
million
four
hundred
thousand
and
twenty
three.
We
have
very
strong
cash
flow
for
help.
L
L
So
this
is
actually
a
KDE
budget
request
they
make
and
is
appropriated
through
the
seek
formula
below
pension
you'll,
see
insurance.
That
is,
there's
also
a
fixed
statutory
rate
for
health
insurance
and
that's
0.75.
So
three
quarters
of
one
percentage
point-
and
you
see
those
represented
in
dollar-
amounts:
421
million,
27.7
million
for
a
total
of
448.7
million
coming
to
TRS
through
the
Sikh
formula.
The
middle
set
of
numbers
are
the
additional
funding
that
we
are
getting
for
these
funds
and
it's,
for
example,
for
pension.
We
are
getting
additional
funding
requesting
additional
funding.
L
That's
what
I
alluded
to
earlier
when
I
talked
about
the
eight
years
of
additional
funding.
That's
what
we
need
to
implement
our
funding
plan
to
pay
off
the
Legacy
unfunded
liability
and
get
to
100
percent
funded
at
the
end
of
the
amortization
period.
So
it's
very
important
because
when
we
get
to
100
funded
and
we'll
talk
about
this
later,
the
cost
of
TRS
for
the
drop
dramatically.
Okay
and
we'll
talk
about
that
in
a
later
slide
and
in
the
bottom
part
you'll
just
see
the
total,
so
I
won't
go
over
those.
Those
are
self-explanatory.
L
On
this
slide,
we're
sure
we're
focusing
on
certain
fiscal
years.
You
know
historical
fiscal
years,
we're
going
to
focus
on
the
current
fiscal
year
and
select
future
fiscal
years.
So,
on
the
left
hand,
side.
Of
course
you
will
see
in
the
dark
blue
shaded
boxes,
the
particular
fiscal
years
we're
looking
at
and
to
the
right
of
that
you'll
see
pension
and
retiree
Health
appropriation
needs
broken
down
and
then
you'll
see
the
total
in
the
last
column.
So
let's
look
at
the
pension,
and
that
is
pretty
self-explanatory.
L
I'll
be
glad
to
take
any
questions
about
this,
but
pretty
self-explanatory.
One
point
I
will
note
here,
that's
important:
we
stop.
We
end
at
fiscal
year
40
here.
If
we
were
to
go
on
out
to
fiscal
year.
47
in
this
slide
and
show
with
the
retirement
system
is
100
funded.
You
would
see
the
required
contributions.
Appropriations
for
the
pension
fund
dropped
dramatically
to
about
800
to
900
million
dollar
range.
L
Retiree
health
I'm
not
going
to
spend
too
much
time
here
either,
but
just
point
out
a
couple
of
things,
so
it
was
understood,
you'll
see
at
the
top
of
retiree
Health
column
and
FY
10.
We
got
155.1
million
dollars
from
the
state.
This
was
before
the
historic
share
responsibility.
Legislation
was
enacted
in
2010
I'll
talk
about
that
just
a
second
later,
but
that's
before
2010
and
that
share
responsibility.
Legislation
Commonwealth
was
voluntarily
paying
almost
an
entire
cost
of
retired
teachers.
L
Health
insurance,
but
with
that
shared
responsibility,
legislation,
active
teachers,
retired
teachers
and
school
districts
all
can
start
contributing
substantially
to
the
health,
insurance
trust
and
that's
been
a
game.
Changer
and
you'll
see
that
in
the
next
slide.
This
also
includes,
in
addition
to
share
responsibility
that
fixed
statutory
0.75
three-quarters,
one
percent
I
talked
about
earlier,
also
one
more
important
thing
to
note
before
I
leave
this
slide,
and
this
is
also
in
the
health
insurance
column
at
the
bottom.
You'll
see
a
selected
future
projections
for
fiscal
years,
30,
35
and
40.
L
very
important
note
here.
If,
if
conditions
remain
the
same,
because
things
can
change
with
health
insurance
and
when
conditions
I
mean
if
health
insurance
inflation
remains
relatively
stable,
as
it
has
been
in
the
same
kind
of
trend
that
we've
seen
since
2010
and
if
Federal
subsidies
that
are
still
currently
available
that
are
available
now,
which
pay
most
of
the
cost
of
our
65
and
over
health
insurance,
retirees
or
medicator,
if
those
remain
stable,
this
health
insurance
trust
the
health
insurance
trust
is
on
track
to
be
fully
funded
before
fiscal
year
35..
L
L
You
know
you
when
anybody
gets
a
home
mortgage
in
the
early
years,
you're
paying
a
little
principal
and
a
lot
of
interest,
but
every
year
you
start
paying
a
little
more
of
the
principal
off
on
your
home
and
a
little
less
interest,
and
soon
you
get
and
eventually
you
get
to
where
you're,
paying
more
and
more
principal
and
less
and
less
interest
towards
the
end.
It's
all
almost
all
principle
and
little
interest
same
thing
happens
here
when
you're
talking
about
paying
off
a
legacy.
L
Unfunded
liability
like
trss
just
so
you'll,
know,
you'll,
see
a
decline
in
the
funded
status
from
fiscal
year,
20
to
21
from
58.4
percent
to
57.2
percent.
The
reason
for
that
is
Although
our
actuaries
look
at
what
happened
every
year
with
their
Actuarial
assumptions
versus
what
actually
happened,
for
example,
investment
rate
of
return
number
of
retirements
mortality.
They
do
that
every
year
and
make
adjustments
to
our
budget
request
based
on
what
they
see
every
year.
It's
every
five
years
they
conduct
what's
called
an
experienced
study.
L
They
look
back
at
what
happened,
what
they
predicted
they
look
at.
You
know
National
projections
of
what's
going
to
happen
in
the
future
and
at
that
point,
that's
an
opportunity
to
change
their
Actuarial
assumptions
like
investment
rate
of
return
mortality,
retirement
patterns,
those
sort
of
things,
so
they
did
a
five-year
experience
study
in
June,
30th
2020
and
as
a
result
of
that,
they
lowered
investment
rate
of
return
and
they
also
increased
more
to
a
teacher-specific
mortality
table.
Instead
of
a
general
mortality
table,
general
population
mortality
table
and
teachers
live
longer,
so
costs
went
up.
L
That's
why
you
see
a
decline
from
20
to
21.,
and
then
you
see
after
that,
we
start
going
back
up
again
a
note
about
the
2023
projection
that
will
be
based
on
the
valuation
ending
for
the
year
June
30th
2023.
They
are
still
working
on
that.
This
is
not
complete.
This
will
not
be
ready
until
sometime
in
November
I.
L
Think
they've
been
conservative
here,
put
in
a
placeholder,
because
58.8
is
the
same
and
23
inches
for
the
previous
year
and
they're
just
being
careful
about
this,
because
they
don't
know
how
much
it's
going
to
go
up.
I,
don't
know
how
much
it's
going
to
go
up.
It
is
likely,
though,
not
certain
it'll
go
up
somewhat
along
the
same
Trend
we've
seen
previously,
but
just
want
to
note
that
it's
just
a
conservative
place
so
number
I
believe
is
what
they're
doing
here:
dropping
down
to
the
health
insurance
trust
numbers.
L
You
can
see
from
2018
the
health
insurance
trust
was
36.3
percent
funded
and
by
comparison.
I
know
before
share
responsibility
started
in
2010
in
2009
the
health
insurance
trust
was
3.5
funded
so
from
2009
to
2018.
It
grew
from
3.5
to
36.3,
and
you
see
we
continue
the
strong
growth
in
that
health,
insurance
trust
and
that's
because
of
that
strong,
positive
cash
flow
to
the
health
insurance
trust
that
I
noted
on
the
cash
flow
slide.
L
The
actuaries
do
not
have
to
be
as
conservative
for
health
insurance
funded
status
projection
for
2023
because
they
have
such
strong
positive
cash
flow.
They
know
that
they
can
provide
a
a
number
that's
going
to
be
higher
because
we
know
for
certainty
it's
going
to
increase
in
line
with
the
strong
increases
that
we've
seen
in
previous
years.
We
don't
know
what
that
final
number
is,
but
they
provided
what
they
feel
is
a
good.
L
A
M
L
G
L
G
L
L
I
L
Be
glad
to
so
for
our
retirees
who
are
under
the
age,
65
or
Medicaid
eligible
that
they
participate
in
the
Kentucky
employees.
Health
plan,
that's
administered
by
the
Personnel
cabinets,
Department
of
employee
insurance,
and
we
have
about
9
300
people
who
are
in
that
plan
and
of
those
about
3
000,
select
coverage
that
for
family
members.
K
K
I
K
I'm
going
to
highlight
I'm
going
to
go
at
a
pretty
rapid
speed.
I
know
the
the
chairman
likes
to
be
out
an
hour.
I
can't
do
that
chairman,
but
I'll
I'll
come
as
close
as
I.
Can
the
two
important
dates
to
remember
2019,
that
is
when
the
first
fiscal
year,
when
we
really
turned
this
program
around
financially
and
it
was
a
result
of
improved
assumptions
and.
I
K
Variety
of
other
things,
but
2019
it
turned
2049
all
if
all
falls
in
place
as
it
should
and
we
meet
the
assumptions
that
all
plans
will
be
fully
funded.
All
Pension
funds,
four
of
the
five
Insurance
retiree
Health
Care
funds
are
already
fully
funded
but
we'll
be
fully
funded.
So
we've
got
a
30-year
period
and.
K
I
K
K
K
Okay,
cash
flow
I'm,
going
to
focus
on
fiscal
23,
I'm,
going
to
focus
on
the
Pension
funds,
I'm
going
to
tell
you
we're
in
great
shape
from
a
cash
flow
standpoint,
primarily
because
of
the
fact
that
the
contribution
levels
are
so
high,
so
total
cash
inflow
in
23
was
a
billion
445
outflow
for
primarily
benefits
a
billion
0.49.
We
were
positive,
almost
400
million
dollars
just
in
our
bank
account,
if
you
will
cash
coming
in
cash
going
out.
That's
incredible!
K
You
won't
you'll,
look
long
and
hard
to
find
another
state
retirement
plan
that
has
a
ratio
like
that
very
much,
very,
very
positive.
It's
very
important!
On
top
of
that
we
had
investment
gains
of
134
million.
So
we
the
plan
that
canine
has
to
grew
by
530
million
and
in
the
prior
year
when
we
had
significant
investment
losses,
we
were
almost
flat
on
from
a
standpoint
of.
F
K
K
K
So
historically,
contributions
and
again
I'm
going
to
focus
on
pensions
and
it's
K-9
has.
If
you
want
back
to
2010,
it
was
144
million
2015.
We
begin
to
get
to
full
Arc
in
that
period
of
time.
Now
so
it
jumped
to
521
back
to
2010.
We
were
not
getting
the
full
Arc
and
the
assumptions
were
too
liberal.
K
So
the
next
move
is
in
2020
actually
happened
began
in
2019,
which
I'm
showing
every
five
years.
The
assumptions
were
changed
it
added
about
5
billion
to
the
liability
and
to
pay
for
that.
We
had
to
raise
the
contribution
rates
significantly
and
it
resulted
in
significant
increase
in
dollar
contributions.
K
9.49
current
year
in
24
we
get
a
billion
275,
a
billion
252
240
million
additional
Appropriations
in
that
number,
going
forward,
we're
looking
at
the
918
million
for
the
two
years
and
if
you
project
out
30
to
2030
35
and
40,
essentially
around
900
million,
so
I
the
that
I
I
jokingly,
say
the
train
is
on
the
track.
It's
a
long
way
to
go,
but
we're
in
good
shape
in
terms
of
structurally
what's
Happening.
K
Actuarial
conditions
back
to
18,
we
had
an
unfunded
liability
13-7.
Today,
it's
12.3,
it's
been
trending
down
generally,
since
2019
that
kind
of
a
key
date.
The
funded
status
in
2018
was
12.9.
In
other
words,
if
we
had
a
liability
of
a
dollar,
we
had
12.9
cents
and
that
liability
was
what
we
currently
owed.
It
wasn't
anything
in
the
future.
K
It
was
what
we
would
currently
owe
to
pay
off
the
benefits
if
you
were
to
terminate
the
plan,
so
we
were
in
frankly
we
were
terrible
sheep
and
it's
been
improving
every
year
or
up
to
22.2.
As
Bo
said,
the
the
increments
get
bigger
and
bigger
and
bigger
as
we
go
forward.
20
2049
is
the
Year
we're
looking
at
where
that'll
be
100
percent
and
the
health
care
is
in
good
shape.
I
just
bottom
line
say
that
we're
asking
back
and
look
at
historically
assumptions
and
I'll
go
back
to
2016..
K
We
were
assuming
payroll
growth
of
four
percent,
and
why
is
that
important
is
because
we
received
a
percent
of
the
payroll
to
fund.
That
was
how
the
funding
was
done
as
a
percent
of
payroll.
So
if
you
assume
every
year,
it's
going
to
go
up
four
percent
you're,
assuming
we're
going
to
get
four
percent
more
money,
four
percent
more.
It
was
actually
going
down
at
about
two
and
a
half
percent
for
10
years,
we're
creating
this
large
gap
in
fund
status.
K
F
K
Flows
through
in
about
a
year
a
year
and
a
half,
we
reduce
the
investment
consumption
from
675
to
525
and
we've
kept
it
there.
There
was
a
debate
this
past
year
and
I
mean
I
shouldn't,
say
a
debate.
There
was
a
a
the
board
votes
every
year
and
they
voted
to
continue
it
at
five
and
a
quarter
life
expectancy
has
been
increasing.
I'll
show
you
a
little
more
detail
on
that,
but
most
recently
it's
come
down
a
bit.
K
Male
and
female
females
are
generally
two
and
a
half
years
longer
than
males
and
the
employer
contribution
rate
took
that
big
bump
in
2019.
This
is
pension.
Only
it
went
from
40
to
roughly
to
71..
People
have
sometime
in
their
mind,
is
83.43.
That
was
the
total
contribution
rate,
including
insurance,
and
that
was
the
peak
83.43
in
terms
of
what
was
paid,
and
it's
now
gradually
becoming
coming
down,
not
to
go
into
detail,
I'm
happy
to
talk
about
it
at
another
point,
but
House
Bill,
eight
that
was
passed.
K
K
That
last
was
the
life
expectancy.
If
you
went
back
before
2015
I'm
going
to
focus
on
the
males,
that's
the
top
group.
The
females
are
going
to
work
two
and
a
half
to
three
years
longer
we
assumed
they
were,
would
live
17.8
years
at
age,
65.
Somebody
who
lives
a
male
would
live
17.8
years
in
2015
we
bumped
it
up.
I
say
we,
the
actuaries
recommended
that
it
go
to
19.
and
the
actuaries
use
our
retiree
base
as
the
basis
for
making
that
determination.
K
We
don't
use
National
tables,
we
use
our
actual
retirees,
so
they
bumped
it
to
19
the
next
in
2019.
Then
they
bumped
it
to
21-4,
but
they
also
said
Gee.
Somebody
is
40
years
old
is
going
to
live
longer
than
somebody
who's
retiring
at
65
today,
so
they
did
what's
called
an
incremental,
so
21
21.4
for
somebody
retiring
in
25,
but
some
of
you
are
retiring
in
30
who's.
Now,
five
years
younger
today
is
going
to
be
21,
8
and
so
forth.
M
M
You
know
back
in
as
far
back
as
2015
we've
been
looking
at
the
the
systems
and
we
recognized
the
mess
that
it
was,
and
we
have
put
some
some
pretty
difficult
decisions
in
place.
As
far
as
trying
to
reduce
the
cost
and
you've
been
a
part
of
that
ever
since
then,
I
know
that
we've
made
some
what
I
would
call
painful
contributions
because
it
had
to
take
from
something
to
to
do
this.
We're
gonna,
but
we've
done
it.
I
just
want
to
encourage
everyone
to
remember
that
we're
not
there.
M
Yet
we've
gone
through
some
pain,
we're
going
to
have
some
more
pain.
There
is
a
light
at
the
end
of
the
tunnel,
but
it's
a
long
way
off.
As
long
as
we
stay
the
course
we
will
get
there
and
with
the
work
that
Dave
and
Beau
both
have
been
doing
we'll
get
there,
but
we
must
stay
the
course,
and
it's
going
to
be
very
tempting
to
get
off
course,
but
I'm
going
to
encourage
everybody,
not
only
in
this
committee,
but
as
we
go
forward
everyone
to
stay
the
course
yeah.
Thank
you,
sir.
Thank.
A
I
A
Doesn't
mean
that
we
don't
still
have
work
to
do.
First
of
all,
my
compliments
on
the
cash
flow
issues.
You
know
that
our
late
friend,
Joe
Bowen,
will
be
smiling
mightily
with
a
sustained
positive
cash
flow.
I
am
going
to
point
out,
though
you
did
right
your
board
and,
and
your
actuaries
have
recommended
reducing
the
actuarily
required
contribution
this
time
around,
but
I'm
going
to
encourage
the
members
of
this
body
that
that
does
not
mean
that
we
should
reduce
the
number
of
dollars
going.
K
A
Even
though
statutorily
we
could
we're
still
at
22
percent
funded,
and
you
know
that
that's
very,
very
tough
I
do
think
that
maybe
after
this
next
budgetary
cycle,
we
ought
to
take
a
look
and
see
if
we
are
able
to
sustain
some
degree
of
momentum
on
the
payroll
growth.
That
was
obviously
a
very
painful
Discovery
back
in
the
day,
as
were
the
mortality
tables,
the
rates
of
return
on
and
on,
and
on
and
I
Echo
representative
Johnson's
comments
on
my
kudos
to
the
board
for
their
discipline
and
holding
the
ground
on
that.
A
For
the
time
being,
but
I
do
think
is
if
we
can
find
a
way
for
sustained
payroll
growth
as
a
legislative
reality
that,
maybe
you
guys
ought
to
begin
looking
at
it
as
a
bit
of
an
Actuarial
reality
as
well.
But
that's
after
we
get
through
this.
Next
budget
session,
you
know
begin
having
that
conversation.
A
A
A
N
Mr
chairman
first
I
want
to
thank
you
for
the
opportunity
to
be
here
today
and
thank
you
to
the
members
of
the
committee.
Bill
request.
178,
which
is
in
your
folder,
is
a
simple
bill.
It
waives
the
sales
tax
on
diapers
and
it
has
a
simple
purpose
to
make
diapers
more
affordable
for
families
in
Kentucky.
This
is
a
bill
that
is
close
to
my
heart.
In
November,
2020
I
began
spending
between
150
to
200
a
month
on
diapers.
N
That
is
the
month
that
we
welcomed
our
second
son
and
I
joined
the
club
of
moms
with
two
kids
under
the
age
of
two.
Those
early
days
presented
many
challenges.
Many
of
you
will
be
familiar
with
making
sure
my
one-year-old
didn't
whack
his
brother
on
the
head
figuring
out
how
I
was
going
to
stay
awake
during
the
day
figuring
out
how
to
navigate
the
world
with
two
children
going
into
totally
opposite
directions
and
I'm.
Very
grateful
during
that
time
that
affording
diapers
was
not
a
primary
concern
for
our
family.
N
However,
for
many
families,
in
fact,
for
half
of
families
welcoming
a
new
child
in
Kentucky,
that
is
not
the
case.
Families
like
mine,
can
spend
up
to
two
thousand
dollars
a
year
on
this
basic
necessity
and
WIC
and
Medicaid
offer
no
assistance.
That
means
families
are
left
to
rely
on
charitable
organizations
like
the
one
Deanna
sitting
next
to
me
runs.
She
runs
our
only
diaper
Bank
in
the
state
of
Kentucky
you'll
hear
today
from
Deanna
about
the
way
the
diaper
need
puts
families,
especially
babies
in
jeopardy.
N
So
we
might
not
be
able
to
address
all
of
the
diaper
need
here
today
in
the
legislature,
but
we
can
make
a
make
it
on
my
way
into
Frankfurt.
Today,
I
stopped
at
a
store.
I
bought
enough
diapers
for
a
family
to
meet
the
need
of
a
family
with
two
children
for
a
month.
Something
I
know
a
lot
about,
because
I've
been
buying
for
a
family
with
two
children
for
a
long
time,
I
have
here
the
receipt.
N
If
anyone
wants
to
look
at
it
later,
it
was
202.41
to
purchase
those
diapers,
I'll,
donate
them
to
Deanna
and
she'll,
take
them
back
home
to
make
sure
they
reach
families
in
need.
However,
on
this
receipt
you
can
also
see
11.46
of
the
amount
I
paid
was
sales
tax
for
the
state
of
Kentucky
of
the
two
thousand
dollars
a
family
will
spend
annually
on
diapers
a
hundred
and
fifteen
dollars
goes
to
the
state
as
sales
tax.
Many
states
have
already
waived
sales
tax
on
diapers
and
when
they
do,
the
results
are
remarkable.
N
We
see
families
in
low-income
neighborhoods
by
six
percent
more
diapers
and
we
see
the
purchase
of
children's
pain
medications
in
those
same
neighborhoods
decrease
by
6.2
percent.
Babies
are
healthier.
They
aren't
getting
severe
diaper
rash.
Families
are
better
able
to
meet
their
needs.
This
is
a
common
sense
policy.
It
is
the
best
way
to
make
sure
that
every
family
in
need
is
keeping
that
money
in
their
pocket.
P
Thank
you
Senator
and
good
afternoon,
chair
and
members
of
the
committee.
Thank
you
so
much
for
having
me
here
today
to
speak
about
diaper
need
this
happens
to
fall
on.
National
diaper
need
Awareness
Week,
where
we're
making
the
effort
to
raise
greater
awareness
for
diaper
need
the
national
diaper
Bank
Network
leads
a
nationwide
movement
dedicated
to
helping
individuals,
Children
and
Families
access
the
basic
necessities
they
require
to
thrive
and
reach
their
full
potential.
P
Our
active
membership
includes
more
than
300
basic
needs,
Banks
across
the
country
and
all
50
states
DC
and
Puerto
Rico.
But,
as
the
senator
mentioned
here
in
Kentucky
Saint
Bernadette's
diaper
bank
is
the
only
diaper
Bank
located
in
the
state.
They
work
extremely
hard
to
address
the
diaper
need
in
their
Community,
relying
on
philanthropic
donations
and
volunteer
time
to
run
their
bank
and
continue
their
efforts
across
the
country.
Diaper
banks
are
seeing
unprecedented
demand
for
their
services.
Since
2020
diaper
banks
have
reported
a
200
to
600
percent
increase
in
Need
for
diapers,
not
surprisingly.
P
P
Diaper
need
is
widespread
and
cuts
across
income
levels
and
2023.
66
percent
of
families
experiencing
diaper
need
are
low,
income,
28
are
middle
income
and
six
percent
are
high
income.
These
numbers
represent
what
we
all
know.
Diapers
are
expensive
and
families
Nationwide
are
feeling
the
effects.
The
need
certainly
exists
here
in
Kentucky,
as
Deanna
will
speak
to
and
now
more
than
ever
families
could
use
a
break
exempting
diapers
from
state
sales
tax
is
an
opportunity
for
Kentucky
to
support
families
and
provide
opportunities
for
parents
and
children.
O
Thank
you
Senator
good
afternoon,
Mr,
chairman
and
members
of
the
committee.
Again.
My
name
is
Deanna
Hornback
and
I'm,
the
founder
of
the
Saint
Bernadette
diaper
bank,
and
we
have
been
relieving
the
diaper
need
or
trying
to
help
relieve
the
diaper
need
in
Louisville
for
10
years.
We
so
as
the
senator
and
the
national
diaper
Bank
said
one
in
two
families
struggle
with
diapernet
and
one
of
the
things
that
caught
my
attention
for
Kentucky
was
28
percent
of
households
are
single
parent
households.
O
O
Even
with
this
large
increase,
it's
still
not
enough.
A
study
done
in
2018
by
the
national
diaper
Bank
Network
showed
to
meet
the
need
in
Louisville
alone,
with
just
50
diapers
per
month
per
child.
We
would
need
to
give
out
3
million
diapers
for
the
year
and
that's
just
50
diapers
a
month
per
child,
which
we
all
know
is
still
not
going
to
meet
the
need
of
all
the
diapers.
O
We
all
expect
when
we
go
to
a
restaurant
or
we
go
to
an
event
that
they
provide
restrooms
or
porta-potties
for
us
to
use
with
a
baby.
We
need
to
give
them
that
same
respect,
their
diaper.
It
is
it's
their
Port-A-Potty,
it's
their
restroom.
All
the
time
not
being
able
to
change
your
baby
in
a
timely
manner
affects
your
baby's
health.
As
the
national
diaper
rank
said,
it
causes
diaper
rash.
It
causes
infections,
and
this
could
cause
a
baby
to
have
to
have
medical
treatment,
which
is
another
costly
expense
on
those
in
need.
O
O
By
addressing
diaper
need.
Not
only
will
you
be
helping
those
in
need,
but
you
will
also
be
helping
our
economy.
As
the
national
diaper
Bank
said,
when
they're
able
to
buy
diapers
to
go
to
work,
then
the
child
can
go
to
daycare,
because
that
extends
their
supply
of
diapers,
that
they
need
and,
as
was
mentioned,
18
states
plus
Washington
DC
have
taken
this
crucial
step
and
I
know.
Kentucky
can
do
the
same,
and
now
what
I
would
like
to
read
just
a
couple,
quick
testimonials
from
people
who
do
receive
diapers
from
agencies.
O
Diapers
are
a
basic
need
for
parents
with
young
children,
and
this
is
from
a
lady
that
participates
in
parenting
for
Success
Through
little
white
Pregnancy
Center,
and
she
said
the
main
problem
is
that
they
cost
almost
eighty
dollars
for
a
month
of
diapers
per
child.
It
can
be
really
expensive
for
parents
with
multiple
kids
as
well.
Diapers
are
almost
like
a
luxury
that
many
can't
afford.
O
I
can't
afford
them,
because
there
is
no
government
assistance
to
help.
I
am
also
grateful
for
receiving
diapers
from
little
way,
as
it
has
really
supported
me
with
this
need,
and
then
another
one
that
really
touched.
My
heart,
that's
really
important
is
this.
Lady
is
a
foster.
Parent
she's
chose
to
foster
a
one-year-old
and
a
four
week
old,
and
she
said
that
she's
gone
to
a
couple,
different
agencies
to
get
help
with
diapers,
but
they
could
just
Supply
like
a
small
sleeve.
O
O
My
heart
is
because
I
know
how
there's
so
many
children
who
are
in
our
foster
care
system
that
I
would
hate
for
anyone
that
could
that
had
the
space
and
had
the
food
to
foster
a
child
would
hesitate
due
to
diaper
knee
again,
I
want
to
say
thank
you
for
taking
the
time
to
listen
to
this
very
important
need,
because
it's
such
a
silent
need
and
people
just
don't
think
about
it.
When
I
checked,
when
I
had
my
daughter
12
years
ago,
I
was
fortunate.
O
I
changed,
my
daughter
and
I
I
didn't
really
think
about
the
cost,
because
it
was
just
a
basic
need
that
had
to
be
met.
So
when
we
started
hearing
about
babies
being
in
the
same
diaper-
and
you
know
no
diaper
Bank
in
Kentucky,
it
really
made
an
impact
of
how
I
thought
when
I
changed
my
daughter,
so
I
just
want
to
thank
you
again,
and
you
know
please
consider
removing
this
tax
not
only
to
help
Kentucky
but
to
help
other
people
around
the
world
delete.
O
N
Mr,
chair
I,
do
want
to
thank
Deanna
publicly.
She
does
not
receive
a
cent
of
compensation
for
the
work
she
does
on
hyperbank.
It
is
a
volunteer-run
Ministry
out
of
Saint
Bernadette
and
they
are
making
a
huge
difference
in
our
community.
With
that
I'd
be
happy
to
answer
any
questions
from
the
committee.
Thanks
for
the
opportunity.
A
F
A
O
Thank
you
thank
you
and
I
also,
you
know
would
like
to
just
thank
you
know.
I
have
many
volunteers
and
without
all
the
volunteers
and
without
the
church
willingly
approving
this
ministry
over
10
years
ago.
This
would
have
never
been
possible,
so
I'm
just
very
grateful
to
all
the
volunteers
and
to
all
of
you
all
for
listening
to
us
today,
because
it
takes
as
they
say
it
takes
a
village
and
I.
Think
it's
going
to
take
all
of
us
to
help
end.
This
diaper
knee
thank.
E
E
N
If
I'm,
a
senator
I,
think
one
of
the
things
about
diaper
need
is
that
there
are
no
Public
Assistance
programs
that
cover
it
so
a
family
that
can't
afford
diapers
can't
go
to
Medicaid
or
go
to
WIC.
For
that
need,
and
as
is
the
case
with
my
family,
it
can
be
several
thousand
dollars
a
year
and
so
I
think
one
of
the
reasons
you've
seen
so
many
states
like
Texas
Florida
Indiana
all
in
the
past
year.
N
Move
forward
with
this
policy
is
a
recognition
that
we
want
to
make
sure
that
we're
setting
our
youngest
and
most
vulnerable
citizens
up
for
a
lifetime
of
health
and
also
making
sure
that
we're
supporting
families
as
they
make
that
emotional,
social
Financial
transitioning
to
welcoming
a
child.
But
thank
you
for
the
question.
Q
Thank
you,
Mr
chairman
Miss,
Hornbeck,
good,
to
see
you
she
just
a
disclosure
she's
one
of
my
constituents
and
we've
We've
teamed
up
on
a
couple
things
in
terms
of
trying
to
address
LG
e
and
the
light
bills,
and
so,
when
we're
still
working
on
that,
but
any
event,
just
a
quick
question:
the
6.1
million
dollars
Senator,
that's
I!
Think
it's
been
identified.
Q
N
Thank
you
for
the
question
representative
and
thank
you
for
pointing
out.
There
is
a
fiscal
note
in
the
folders
for
the
senators
and
representatives
who
haven't
seen
it.
Yet
it's
about
6.1
million
I
believe
that
that
is
likely
a
high
number.
Quite
frankly,
we
know
that
families
whenever
they
are
undergoing
the
financial
strain
of
having
a
new
child,
every
dollar
you
put
into
their
pocket,
they
reinvest
back
into
buying
things
for
that
child.
It's
one
of
the
times
of
the
biggest
Financial
stress
for
families.
N
Q
Thank
you
very
much.
I
know
when
I
was
out
when
I
went
did
a
run
to
buy
things
for
my
girls,
I
found
that
the
blue
diapers
you
get
10
or
you
get
five
for
ten
dollars
and
the
pink
diapers
you
get.
You
get
a
10
or
yeah
10
for
no,
you
get
five
for
ten
dollars.
I
mean
it's
like
a
complete
difference.
There's
a
place
to
disparity
between
the
girls
and
the
boys.
Diapers
I
appreciate
you
work
on
that.
A
little
discrimination
I
think.
N
It
means
that
anyone
who
is
purchasing
diapers
rather
because
they
have
a
child
or
they
might
be
caring
for
an
adult
with
a
disability
or
a
person
with
a
disability,
will
not
have
to
pay
the
sales
tax.
We
already
don't
charge
sales
tax
for
other
necessary
items
such
as
groceries
or
prescriptions.
This
would
merely
identify
that
diapers
are
a
necessary
item.
It's
a
health
issue.
N
If,
if
babies
don't
have
access
to
enough
diapers,
they
end
up
in
the
hospital
and
that's
something
we
want
to
avoid,
and
so
I
understand
that
people
you
know
some
places
choose
to
invest
in
programs
to
make
sure
that
they
are
especially
reaching
low-income
families.
I
think
that's
great
I
fully
support
those
efforts
and
across
the
board,
removal
of
the
sales
tax
is
the
only
way
to
make
sure
that
every
family
who
is
welcoming
a
child,
particularly
those
who
are
the
most
vulnerable
and
the
hardest
to
reach,
are
benefiting
from
this.
A
A
It
always
riveting
very
well
to
the
members
of
the
committee.
You
have
a
series
of
follow-up
correspondents,
PowerPoint,
slides
presentations,
Etc
in
your
agendas
or
we
would
I,
would
strongly
encourage
you
to
take
a
look
at
those,
and
our
next
meeting
will
be
Wednesday
October.
The
18th
at
1
pm
back
in
this
room
see
another
business
to
come
before
the
committee
we'll
stand
adjourned.