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B
C
C
D
Here,
if
is
everyone
still
hearing
this
echo
all
right?
The
first
thing
I'm
going
to
ask
is:
if
all
the
members
would
turn
your
microphones
off.
Please
is
everybody
still
hearing
an
echo,
no
all
right,
always
the
computer.
I
felt
like
a
genius
there
for
a
second,
so
it
works
okay.
So
all
right,
we
got
three
items
on
the
agenda
for
today,
but
first
of
all,
I'd
like
to
recognize
hunter
branham
who's,
a
new
analyst
hunter.
Where
are
you
at
I
don't
know,
we've
met
before
all
right
there.
He
is
welcome
hunter.
D
And
lexi
vinsberg,
who
is
our
new
committee
assistant,
so
welcome
to
both
of
you
guys
appreciate
you
being
here
so
first
up
is
approval
of
the
minutes
from
the
july
6th
meeting.
Do
I
have
a
motion?
Let's
have
a
second
senator
nima
seconded
by
dr
douglas,
all
those
in
favor,
say
to
fight
by
saying
aye
oppose
like
sign
the
eyes.
Have
it
very
well?
Okay,
so
we
like,
I
said
we
do
have
three
items
on
here
today.
D
We
are
going
to
adjourn
this
meeting
no
later
than
2
35,
so
it'll
be
about
a
half
of
an
hour
per.
So
if
you
have
extra
questions,
just
know
that
I'm
going
to
cut
you
off
and
you
are
welcome
to
submit
those
in
writing.
We
will
pass
them
on
to
the
appropriate
delegations
to
be
answered,
but
first
up
director,
hicks
you're
up
sir.
E
E
All
right
first,
let
me
talk
about
fiscal
22,
general
fund
revenues.
We've
got
a
table
here
that
shows
on
the
left-hand
side
what
we
actually
received
and
to
the
right-hand
side
what
the
budgeted
estimate
was.
So
we
received
14.7
billion
dollars,
which
is
945.4
million
more
than
the
budgeted
estimate
for
fiscal
22..
So
that's
a
very
large
number
14.6
growth
rate
in
fiscal
22,
that's
the
highest
growth
rate
in
31
years
and
31
years
ago
was
fiscal
91
the
first
year
after
cara
and
the
tax
increases
both
income
and
sales
at
that
time.
E
So
you
know
so
so
that
one
was
an
intentional
increase
in
resources.
This
was
the
result
of
you
know.
What's
going
on
in
the
economy
and
the
in
the
impact
it
has
on
state
revenues
and
that's
on
top
of
last
year's
growth
rate
of
10.9.
E
So
over
the
last
two
years
we've
had
a
27
percent
growth
rate
in
general
fund
revenues.
Accepting
for
the
tax
increase,
you
know,
that's
that's
unprecedented.
In
modern
times,
some
of
the
highlights
there.
Individual
income
and
sales
and
use
tax
is
about
three
quarters
of
our
general
fund
revenues.
Individual
income
tax
rose,
you
know,
17.6
sales
tax
rose
11.,
you
know
it's
an
indication
of.
What's
going
on
in
the
underlying
economy,
we
expect
the
august
employment
data
to
reveal
that
kentucky
has
recovered
all
of
its
jobs
to
the
pre-pandemic
level.
E
Income
taxes
soared.
Individual
income
tax
grew
17.6
percent
the
highest
since
that
date
I
mentioned
1991.
When
we
had
a
tax
increase,
two-thirds
of
the
revenue
surplus
was
attributable
to
individual
income
tax
receipts,
withholding
which
I
consider
a
real
good.
Bellwether
of
our
fiscal
health
in
kentucky
grew
11
the
prior
seven
years.
It
averaged
growing
three
and
a
half
percent.
E
That
shows
you
how
phenomenal
fiscal
22
was
for
withholding
that's
weight,
that's
salaries
and
wages,
business
taxes,
the
corporation
income
tax,
the
limited
liability
entity
tax
grew
in
a
com
combined
34
percent
over
a
record
year
last
year,
which
I
think
was
a
38
growth
rate,
so
corporate
profits
very
high.
E
In
fact,
the
business
taxes
there
totaled
1.2
billion
dollars,
which
is
eight
percent
of
the
total
general
fund
and
that's
kind
of
the
highest
share
of
the
general
fund
that
business
taxes
comprise
since
fiscal
2007..
E
E
To
give
you
a
little
context,
the
15-year
average
prior
to
that's
four
percent.
So
again
we're
you
know
we're
outstripping
history
in
two
areas
that
are
truly
based
upon
the
health
of
the
economy,
states,
states,
tax
income
and
and
consumption
primarily
and
those
two
things
have
been
going.
Well,
here's
a
table
that
shows
kind
of
on
a
quarter
by
quarter
basis
for
the
general
fund.
What
the
what
the
revenue
growth
so
three
month
period
at
a
time
20.
E
E
You
know
in
terms
of
throughout
the
year
we
have
seasonality
in
our
tax
system,
our
tax
receipts,
particularly
on
the
individual
income
tax
when
it
comes
in
april
and
the
dedicate
and
the
estimated
tax
payments
every
quarter.
So
we
have
that
sales
taxes
are
fairly
consistent
across
the
year
except
for
february,
where
we
have
the
the
annual
filers
come
in
and
suddenly
february
is
a
very
big
month,
but
other
than
that
it's
been
a
consistent
growth
rate
throughout
the
fiscal
year.
E
E
E
Really
two
things
you?
We
can
set
aside
a
reserve
for
what
we
call
necessary
government
expenses.
These
are
things
like
calling
out
the
national
guard
dealing
with
disasters,
prison
population,
greater
than
budgeted
things
of
that
nature.
So
we
set
aside
20
million-
and
that
was
before
the
flood
and
deposit
the
rest
into
our
rainy
day
fund.
The
budget
reserve
trust
fund,
so
1
billion
13
and
a
half
million
dollars
deposited
in
our
rainy
day
fund.
E
E
So
in
the
last
two
years
a
great
portion
of
the
2.7
billion
has
come
from
two
years
of
general
funds
surpluses,
revenue
surpluses
that
equates
to
about
19
and
a
half
of
fiscal
23's
general
fund
appropriations,
one
measure
of
sufficiency
adequacy
of
a
rainy
day
fund,
is
well
what
share
of
your
spending.
Do
you
have
in
savings?
E
And
so
that's
that's.
A
a
very
high
number
in
in
fiscal
19
kentucky
ranked
46th
in
the
country
in
that
ratio,
so
budget
reserve
trust
fund
a
rainy
day
fund
as
a
percent
of
spending
before
this
surplus,
the
billion
dollars
we
just
added,
we
rose
up
to
the
u.s
median
so
about
you
know
we
went
46
to
like
27.,
don't
know
where
this
one
will
come,
because
our
fellow
states
are
yielding
the
same
kind
of
revenue
surpluses.
E
That
kentucky
is
it's
very
common
across
the
states,
and
so
so
in
any
case,
hooray
that
we've
got
a
rainy
day
fund.
You
know
of
that
size
and
of
that
ratio.
It's
something
we've
all
concerned
ourselves
about
for
years
about.
Do
we
have
enough
inadequate
reserves,
hey.
D
D
E
So,
in
any
case,
you
know
that
you
know
we've
blown
way
past
the
question
of
adequacy
of
a
rainy
day
fund,
but
you
know
that's
a
that's
a
good
thing
to
have.
Let
me
move
to
the
road
fund,
our
road
fund's
about
1.7
billion
dollars,
the
actuals
came
in
just
right
on
target.
E
We
were
less
than
three
tenths
of
one
percent
off
of
the
estimate.
It
was
4.7
million
dollars,
but
that
is
an
extremely
accurate
estimate.
We
grew
two
percent
in
fiscal
22
on
road
funds
and
I'll
talk
about
the
two
primary
sources
of
the
road
fund:
the
motor
fuels
tax,
the
gas
tax
and
the
motor
vehicle
usage
tax
or
the
sales
tax
on
on
vehicles.
E
So
you
can
see
there
there's
some.
You
can
see
some
different
percentages
in
some
of
the
lower
dollar
estimates
that
that
are
exaggerated
by
their
low
levels.
But
you
know
one
of
the
things
that
we've
had
some
pluses
and
minuses
and
I'll
talk
about
that,
and
you
know
in
a
sense
that
our
motor
fuels
tax
was
a
little
under
the
estimate
and
our
motor
vehicle
usage
tax
was
over
the
estimate.
E
That
was
compared
to
a
quarter
fourth
quarter
of
last
year,
where
we
had
a
44
increase.
So
it
was
understandable
that
we
had
a
fourth
quarter
drop
compared
to
fourth
quarter
of
last
year,
because
we
had
that
huge
surge.
That
was
when
in
essence,
people
were
going
back
to
driving
on
the
roads
and
that
the
cars
and
vehicle
sales
were
going
through
the
roof.
So
so,
overall,
a
you
know,
fairly
steady
situation
in
the
road
fund
throughout
the
year.
E
I'm
gonna
let
somebody
else
do
this
next
time,
so
the
road
fund
summary,
as
I
said,
revenues
came
in
very
close-
that
motor
vehicle
usage
tax
receipt
in
fiscal
22.
It
was
a
record
629
million,
beat
last
year's
record
620
million
and
before
you
saw
before
fiscal
21,
the
highest
motor
vehicle
usage
tax
annual
amount
was
514.
E
So
a
really
good
year
year,
in
terms
of
you
know
that
revenue
source
motor
fuels
grew
three
and
a
half
percent
and
of
course,
that's
between
motor
fuels
and
the
motor
vehicle
usage.
That's
84
percent
of
the
road
fund,
so
our
road
fund
goes
as
though
those
two
taxes
go.
E
E
So
in
essence,
you
budgeted
a
surplus
in
in
fiscal
22
for
the
road
fund
about
49
million
of
that
and
then
a
few
other
items
in
there
with
the
revenue.
Small
revenue
shortfall
caused
a
70
million
dollar
road
fund
surplus
at
the
end
of
fiscal
22.,
and
you
know,
and
in
the
road
fund
surplus
expenditure
plan
it
goes
to
one
place.
E
It
goes
to
the
bank
to
the
highways
budget
unit
for
the
biennial
highway
construction
program,
so
we're
going
to
add
we've
already
added
70
million
dollars
to
the
state
construction
account
that
is
used
to
finance.
You
know
the
biennial
highway
construction
program,
so
so
a
positive
result
there
with
that.
Mr
chairman
be
happy
to
answer
any
questions.
G
Thank
you,
mr
chairman.
Thank
you
director,
hicks
good,
to
see
you
today.
This
is
a
very
good
report.
It's
good
to
hear
another
good
report.
I
wanted
to
make
sure
I
heard
something
correctly
and
that
is
that
our
tax
receipts
from
businesses
were
up.
I
didn't
I
didn't
catch
the
percentage,
but
they
were
up
higher
than
they've,
been
since
2007..
Is
that
right,
yeah
34.
G
G
So
I
I
guess
I
would.
I
want
to
highlight
that
and
say
that
I
think,
thank
goodness
we're
on
the
right
policy
right
right,
aim
there
and
then
ask
you
to
comment
on
on
that.
If
you
might.
E
Sure,
no,
I
would
say,
as
I
look
across
the
country,
we're
seeing
similar
results
in
states
that
raised
income
taxes
that
lowered
income
taxes,
states
that
didn't
change
their
income
taxes.
You
know
what
what
we're
seeing
here
is.
E
You
know
very,
very
low
unemployment
rate
pressure
on
on
wages,
no
question
about
that,
as
as
wages
goes
up,
income
taxes
go
up.
It's
that
simple
corporate
profits
record
levels,
no
question
about
that.
As
profits
go
up,
business
taxes
receipts
go
up,
so
it's
really
the
you
know
the
underlying
economy
across
the
nation.
You
know
that
that
we're
revealing
and
and
and
as
you
said,
you
know
coming
out
of
the
pandemics.
E
You
know
big
drop.
We
had
in
the
spring
of
2020,
where
we
lost
all
those
jobs
and
then
our
really
slingshot
back.
You
know
quickly
in
terms
of
employment
and
and
we
saw
the
effects
on
sales
taxes
across
the
country.
You
know
we,
we
went
heavily
toward
goods,
you
know,
we've
been
trending
services
for
years
and
years
and
suddenly,
because
of
the
you
know,
pandemic
we
a
lot
of
goods
and
we're
moving
moving
back
to
the
services,
particularly
in
leisure
hospitality.
E
But
you
know
the
circumstances,
were
you
know
kind
of
post-covered
combined
with
you
know,
other
great
economic,
you
know,
conditions
very
difficult.
You
know,
and
I
understand
your
point
very
difficult
to
kind
of
untie.
You
know
how
do
you
disaggregate?
How
much
of
that
effect
is
due
to
this
policy
change
versus
other
underlying
economic
conditions,
but
but
we'll
take
the
results.
D
C
Thank
you
I'll
make
one
brief
comment
that
kind
of
follows
along
with
representative
nemes.
It
seems
to
me,
maybe
I'm
I'm
just
a
novice
at
this,
but
the
impact
of
inflation
certainly
has
to
impact
our
sales
tax
revenue,
as
people
are
having
to
pay
more
for
goods
and
services
they're
paying
more
sales
tax.
C
So
I
can
see
that
I
think
the
main
thing
we
need
to
remember
these
numbers,
it's
very
difficult
to
look
at
a
number,
a
set
of
numbers
at
one
time,
one
point
in
history
and
make
decisions
we're
going
to
have
to
look
at
the
long
term
next,
two
or
three
years,
and
see
what
this
trend
continues.
My
specific
question
is
is
in
regard
to
the
lottery
revenues
being
29
million
under
projected
those
those
revenues
play
a
very
vital
role
in
providing
scholarships
and
grants.
C
E
E
Almost
the
exact
difference
between
the
estimate
into
a
trust
and
agency
fund.
You
know
to
be
future
appropriated
a
little
you
appropriated
a
little
bit
of
it.
You
know
in
in
the
last
in
the
biennial
budget
we're
in
right
now,
so
the
real
answer
is
the
lottery
was
doing
very
well,
and
this
was
an
updated
estimate.
E
You
know
from
december
and
when
the
lottery
corporation,
who
we
work
with
closely
when
we
do
the
forecast
for
that
estimate-
and
they
came
in
on
target
so
so
this
it
really
doesn't
reveal
the
health
of
the
lottery
or
the
concern
over
it.
Even
with
the
advent
of
more
positions
of
historical
horse,
racing
and
and
other
elements
of
the
use
of
entertainment
dollars,
the
lottery's
doing
great,
and-
and
so
so,
thank
you
for
pointing
out
that
this
really
isn't
evidence
of
the
lottery's
concern
issue.
E
Because
of
the
way
you
decided
to
dispose
of
the
funds-
and
I
would
agree
with
you
on
your
on
your
inflation-
affecting
the
sales
tax,
no
question,
thank
goodness
kentucky
doesn't
tax
groceries.
You
know
in
pharmaceuticals,
you
know
number
of
states
who
do
have
started
to
move
away
from
that
because
of
the
revenue
surpluses
we're
seeing
today.
H
It's
always
good
to
see
you,
but
it's
even
better
see
when
you
bring
good
news
right
just
for
clarification,
and
this
might
be
somewhat
outside
of
your
realm,
but
you
mentioned
the
unemployment
rate
and
we're
soon
going
to
be
back
down
to
pre-covered
levels
with
the
unemployment
rate,
or
at
least
that's
the
direction
that
we
seem
to
be
headed,
and
so
I'm
I
get
what
you're
saying,
but
I
scratch
my
head
a
little
bit
when
I
send
all
my
constituents
that
are
business
owners
that
can't
find
employees,
and
there
is
a
number
of
people
that
were
in
the
workforce
pre-covert
they
drew
out
unemployment
to
the
max
that
they
could
and
they've
not
entered
it
back
in
to
those
actual
numbers
as
considered
unemployed.
H
Now
so
percentage
of
unemployment
versus
actual
number
of
people
working
today
versus
three
years
ago.
Do
we
have
an
actual
number
of
people?
That's
actually
working
today
versus
precovid,
throw
out
the
percentages,
because
those
are
can
be
somewhat
skewed,
but
do
we
actually
have
as
many
people
in
the
workforce
today,
as
we
did
three
years
ago
and.
E
The
answer
is
yes,
we
do
it's
a
it's
a
it's
almost.
You
know
1
million
947
000.
Something
like
that.
You
know
because
I'd
ask
this
question
recently.
I
said:
when
are
we
back
to
the
pre-pandemic
level
and
we're
just
now
getting
there?
So
you
know
so
in
total
employment,
you
know
we
we're
we're
back
in
a
little
above.
H
D
I
J
Sir
I'm
rick
halbleibe
my
background.
I
served
24
years
active
duty
in
the
army
as
an
intelligence
officer
and
retired
as
a
colonel
and
then
transitioned
to
federal
senior
executive
service
with
the
department
of
defense
and
intelligence
community
and
served
20
years
with
the
nsa.
I
recently
retired
moved
to
kentucky.
I
We
have
one
online
guest
as
well,
dr
michael
shaffer
from
augusta
university
he's
going
to
be
joining
us
and
giving
part
of
the
presentation
today.
So
thank
you
for
having
us
here
to
talk
about
cyber
security.
This
is
a
global
issue,
as
you
see
on
the
on
the
screen
here.
This
was
taken
this
morning
where
there
was
12
and
a
half
million
attacks.
So
far
at
nine
o'clock.
This
morning
you
can.
I
You
can
pull
one
of
these
up
anytime,
you
like
to
see
where
the
where
these
attacks
are
going
on,
but
it
affects
all
the
businesses
in
the
state
of
kentucky.
It
affects
the
state
agencies
in
the
state
of
kentucky.
It
affects
critical
infrastructure
that
we
rely
on
every
day
in
the
state
of
kentucky.
So
we're
going
to
talk
to
you
about
the
proposed
kentucky
cyber
security
center
at
at
the
university
of
louisville.
So
to
start
off
with
cyber
security
is
a
huge
and
growing
threat.
I
I
think
we
looked
up
some
numbers
on
the
way
over
here.
It
cost
the
world
global
economy
in
the
tens
of
trillions
of
dollars
last
year,
and
it's
something
like
a
60
percent
increase
year
over
year
in
cyber
security
attacks
and
and
criminal
activity,
the
average
cost
of
critical
infrastructure
data
breach,
as
you
see
here,
is
close
to
five
million
dollars,
and
there
is
a
dearth
of
workforce
to
help
us
with
this
problem,
so
in
the
state
of
kentucky
they're.
I
Currently,
as
as
when
we
wrote
this
proposal
about
4
000
jobs
unfilled
in
the
cyber
security
area,
3
million
across
the
country.
This
is
not
a
problem.
The
university
of
louisville
can
handle
or
can
manage.
What
we're
proposing
to
you
is
that
we'll
take
a
lead
on
developing
a
statewide
consortium
that
includes
the
the
educational
institutions
across
the
state
private
sector
across
the
state
state
agencies
and
so
forth,
to
address
this
problem.
I
I
State
and
local
agencies
and
major
economic
sectors
to
include
health
care
manufacturing
will
thrive
in
a
secure
cyber
infrastructure,
that's
built
by
our
own
skilled
workforce,
and
our
mission
is
to
accelerate
the
adoption
of
cyber
security
systems
in
the
state
by
combining
the
assets
that
higher
education
has
state
and
federal
agencies
and
private
sector
companies,
and
do
this
in
an
innovation
park
and
we'll
hear
about
the
the
effort
that
georgia,
the
state
of
georgia,
has
made
in
the
same
along
the
same
lines.
I
There
are
three
major
parts
to
this:
cyber
security
center
we're
proposing
you'll
see
in
the
top
right,
the
first
one,
education
and
workforce
development.
As
I
said,
we
there's
a
critical
shortage
of
of
people
that
are
skilled
and
prepared
to
work
in
this
field,
and
we
need
to
worry
about
pre-kindergarten
through
12
pipeline.
We
need
to
worry
about
industry
certificate
programs,
so
that
they've
got
the
the
the
stamp
of
approval
from
the
from
the
from
the
industry.
I
I
This
is
a
critical
need
like
if
you're,
if
you're,
if,
if
you
have
an,
if
you
have
an
armed
armed
force-
and
they
don't
they've,
never
shot
their
guns
on
a
range
before
you
don't
want
to
take
them
into
battle,
and
so
the
cyber
range
is
the
same
kind
of
thing,
but
it's
for
cyber
systems.
So
it's
for
the
interconnected
network
of
things
that
exist
in
any
kind
of
economy,
whether
it,
whether
it's
voting
systems
or
its
healthcare
industry.
So
those
cyber
ranges
are
really
critical.
I
Part
of
the
of
the
infrastructure
that
state
needs
in
order
to
be
responsive
and
to
be
prepared
and
safe
and
secure,
and
then
the
last
thing
is
a
collaborative
innovation
ecosystem
and
so
we're
proposing
that
we
have
the
physical
space
with
the
cyber
infrastructure
that
go
along
with
that
that
houses,
private
sector
companies,
state
agencies,
federal
agencies.
These
can
these
are
crime
units
they're.
I
This
is
a
proposal
that
we've
got.
This
is
the
research
park,
that's
adjacent
at
the
bottom
part
of
the
screen.
There
is
the
jb
speed
school
of
engineering
at
the
university
of
louisville
on
the
on
the
upper
part
of
that
graphic.
Those
are
proposed
sites
for
buildings
in
this
research
park,
so
this
is
just
off
I-65,
and
this
is
a.
I
This
is
a
place
where
we're
able
the
university
foundation
can
donate
this
land
to
build
this
physical
space,
where
this
innovation
has
to
happen,
and
in
particular,
when
you're
talking
about
certain
types
of
cyber
infrastructure
like
these
skiffs,
it
has
to
have
a
physical
space.
It
can't
just
exist
in
in
cyber
in
cyberspace.
I
I'm
going
to
turn
the
oh
one.
Sorry
one
more
slide
for
me
why
university
of
louisville,
so
university
of
louisville
is
accredited
as
a
center
for
academic
excellence
in
cyber
security
and
that's
a
designation
by
department
of
homeland
security
and
national
security
agencies
and
we're
a
r1
university
as
well.
On
top
of
that,
so
we've
got
and
you'll
hear
about
some
of
the
work
that
we've
been
doing
in
cyber
security
in
education
and
training
and
research.
I
D
J
Crime
law
enforcement,
foreign
policy-
the
list
goes
on,
but
I
would
argue
our
greatest
national
crisis
is
cyber
security.
However,
it's
seldom
discussed
and
understood
by
people,
the
media
and
many
in
government.
Yet
all
of
america
operates
in
cyberspace
with
smartphones,
smart
tvs,
smart
cars,
smart
houses,
it's
the
internet
of
things
and
all
functions
are
connected.
J
Imagine
a
cyber
attack
on
the
u.s
critical
infrastructure
that
zeroes
out
or
denies
you
access
to
your
checking
account
your
savings
account
your
investment
accounts.
How
would
you
provide
for
your
family
pay
your
bills
make
purchases?
How
would
retirees
survive?
How
could
you
recoup
this
financial
loss?
J
J
The
rsa
conference
is
a
series
of
information
technology
security
conferences.
The
last
one
was
held
in
june
of
22
in
san
francisco.
It's
the
super
bowl.
It's
the
world
series
of
security
professionals
dealing
with
cyber
operations,
44
000
people,
hundreds
of
companies
attend
senior
u.s
government
officials
were
there
and
warned
that
we
are
on
high
alert
for
potential
cyber
crime
and
attacks
as
a
consequence
of
the
war
in
the
ukraine.
J
J
He
warned
the
public
that
russia
poses
a
credible
threat
to
public
infrastructure,
jen
easterly
she's,
the
dhs
director
of
cyber
security
and
infrastructure
security
agency
sissa,
and
she
is
also
a
former
nsa
senior
executive
and
she
warned
of
potential
cyber
attacks
against
our
critical
infrastructure.
J
J
For
those
of
us
who
are
old
enough
to
remember
on
18
november
1956,
the
nbc
nightly
news
huntley
brinkley
report
noted
in
the
ussr
leader
nikita
khrushchev's
speech.
His
quote,
we
will
take
america
without
firing
a
shot
we
do
not
have
to
invade
the
u.s.
We
will
bury
you
from
within.
Today.
President
putin
is
implementing
that
threat.
J
J
According
to
the
cyber
security
company
purple
sec,
the
education
industry
is
ranked
last
in
cyber
security
preparedness
out
of
17
major
industries.
Additionally,
79
of
universities
have
experienced
damage
to
reputation
and
almost
74
percent
have
had
to
halt
valuable
research
projects
because
of
cyber
attack.
J
J
I
L
Yes,
thank
you,
mr
chairman
members
committee.
Thank
you
for
this
opportunity
to
provide
you
with
information
on
the
financial
model
of
the
georgia,
cyber
innovation
and
training
center.
I'm
going
to
re
read
my
remarks
simply
to
make
sure
I
stay
within
my
time
and
then
I'll
be
open
for
questions
afterwards.
L
So
in
2017,
governor
nathan
deal
announced
the
creation
and
funding
of
the
first
of
two
buildings
that
make
up
the
georgia
cyber
center
by
january
of
2019.
Both
buildings
had
been
constructed
and
opened
for
business
next
side.
Please,
the
total
investment
of
the
georgia.
Cyber
center
is
122
million
dollars.
106
million
dollars
is
from
the
state
of
georgia
for
the
project.
L
So
what
is
the
mission?
The
mission
of
the
georgia
cyber
center
is
to
cultivate
an
ecosystem
where
the
combined
talents
of
government,
academia
and
private
industry
will
deliver
affordable
and
relevant
cyber
security,
training
and
education
develop
the
state's
cyber
security
workforce,
solve
complex
cybersecurity
challenges
and
offer
unbiased
advice
to
policy
makers
in
order
to
provide
our
state
and
the
nation,
with
the
decisive
advantage
in
cyberspace,
the
secret
to
the
success
of
the
georgia.
Cyber
center
is
the
collaboration
under
one
roof
of
government,
academia
and
industry
partners.
L
But
what
about
our
budget?
We
promised
the
state
if
they
funded
the
construction
of
the
buildings
and
provided
us
with
the
initial
funding
for
personnel
and
operations
that
until
we
could
fill
the
campus
with
the
appropriate
resident
partners,
we
would
then
forego
any
future
operational
dollars
and
we
would
provide
the
future
refresh
of
these
facilities.
L
L
Our
operations
funding
is
just
over
2.2
million,
and
our
personnel
funding
is
just
over
3.2
million
next
side,
please,
our
other
other
revenue
is
earned
revenue
for
fy23.
We
have
budgeted
just
over
5.2
million
dollars,
of
which
the
majority
is
from
our
lease
revenue.
The
other
sources
are
from
our
cyber
range
services,
our
training
and
other
events.
L
You
will
see
an
additional
bar
showing
carrie
ford,
which
are
our
savings.
If
you
recall,
I
mentioned
that
we
would
not
ask
for
additional
funding
allocations
in
the
future
for
operations
or
funding
to
maintain
the
refresh
of
these
facilities.
It
is
these
savings
that
allow
us
to
fund
our
refresh
plans
next
slide.
Please,
the
georgia.
Cyber
center's
business
plan
was
developed
as
a
self-sustaining
model,
utilizing
our
reserves
to
fund
operational
expenditures
and
to
minimize
appropriated
operational
budget
allocations.
L
During
the
first
year
of
our
opening,
we
hired
an
outside
consultant
to
review
the
facilities
and
provide
us
with
a
20-year
road
map
of
cost
to
maintaining
these
facilities.
At
the
end
of
the
20-year
refresh
plan,
32
million
dollars
will
have
been
spent
on
continually,
maintaining
and
refreshing
these
facilities.
L
L
L
Most
of
our
earned
revenue
currently
is
from
lease
payments
from
our
resident
partners.
So
who
are
the
payers
of
the
lease
payments?
Next
slide?
Please
again
the
secret
to
our
success
and
our
mission
is
the
collaboration
between
government,
academia
and
industry,
and
it
is
important
that
we
have
a
balance
next
to
these
three,
as
you
can
see
from
the
pie
chart
on
the
left,
we
have
been
very
deliberate
in
who
our
partners
are
on
our
campus.
L
L
Next
is
government,
which
is
a
mixture
of
both
state
and
federal
partners.
Well,
they
make
up
approximately
37
percent
of
the
space.
They
also
pay
about
37
percent
of
the
cost,
their
average
lease
payment
is
around
25
dollars
per
square
foot
and
finally,
is
our
industry
partners.
Our
industry
partners
take
up
37
of
the
space,
but
they
make
up
60
percent
of
the
revenue
we
receive
from
leases.
L
D
Michael,
I
do
have
one
quick
one:
how
obviously
you're
there
in
augusta
do
you
interact
with
fort
gordon
at
all
in
the
signal
school
and
such
there.
L
Yes,
sir,
very
much
so
so
you
know,
army
cyber,
moved
to
georgia.
It
was
announced
in
2013
and
they
ultimately
finally
moved
what
they
call
move
the
flag
last
year.
I
believe
it
was
in
2021,
so
we
do
interact
in
fact,
army
cyber
has
a
presence
in
the
georgia
cyber
center,
but
we
interact
both
with
nsa
georgia
with
army
cyber
and
the
army.
Cyber
center
of
excellence.
I
And
we've
met
with
fort
knox
for
the
same
reason,
which
they
don't
have
the
same:
cyber
presence
but
they're
of
important
important,
important
elements
there
at
fort
knox
for
sure.
So
I'm
going
to
turn
it
over
to
to
sharon
and
then
andrew
to
talk
about
the
some
of
the
experience
that
uofl
has
in
this
realm.
K
So,
first
off
we've
created
a
six
month.
Certificate
doesn't
mean
that
you
have
to
have
a
college
degree
to
do
it.
We
were
awarded
8.3
million
from
the
national
security
agency.
The
first
award
was
6
million,
but
they
had
such
confidence
in
what
we
were
producing
for
curriculum
that
had
hands-on
virtual
instructor-led
success,
coaches
that
then
they
awarded
us
another
2.3
million
to
make
the
8.3
million
what
we're
doing
right
now
for
curriculum,
that's
used
across
the
country.
K
We,
when
we
put
forth
the
proposal
to
nsa
in
2020
what
we
did
is
built
a
consortium
of
schools
here
in
kentucky
and
so
in
within
that
consortium
we
not
only
have
kctcs
and
the
two
schools
owensboro
and
bluegrass
that
have
naecs
and
cybersecurity
experts
as
well
as
we
have
now
added
kentucky
state
university
as
well
as
simmons
college
and
then
you'll
see
on
the
next
slide.
K
We
have
partners
in
the
our
coalition
from
east
coast
to
west
coast
so
that
we
can
leverage
the
advanced
knowledge
that
each
of
them
bring
to
the
table
for
us
and
across
the
top
of
the
screen.
You
see
each
one
of
those
emblems
and
dr
wright's
going
to
explain
what
we
put
together
as
far
as
those
badges
and
certificates
and
things
like
that.
F
F
All
of
the
schools
that
were
participants
in
the
initial
round
were
designated
as
centers
of
academic
excellence
in
cyber
defense
themselves.
The
curriculum
request
from
the
national
security
agency
asked
us
to
specify
an
industry
area
of
focus
initially,
and
healthcare
was
ours.
That
is
obviously
a
hugely
important
part
of
our
economy,
certainly
regionally,
but
nationally
as
well.
The
third
year
that
sharon
discussed
is
moving
us
into
a
new
industry,
focus
area,
logistics
and
distribution.
F
Again,
no
surprise
with
our
regional
presence,
with
ups
and
the
logistics
and
distribution
institute
at
the
university
of
louisville
that
this
would
be
an
area
we
would
focus
on.
The
request
also
included
development
of
cutting
edge
modules,
which
are
not
traditionally
part
of
an
undergraduate
or
graduate
cyber
security
education.
F
These
are
areas
that
are
unusual
in
a
traditional
cyber
security
program,
but
is
the
direction
that
the
world
is
headed.
Artificial
intelligence
will
continue
to
play
a
greater
role
as
we
move
forward
with
cyber
defense.
We
divided
it
across
three
levels
and
yeah,
so
we
have
some
others
that
we
have
experience
with
as
well
on
the
left
side,
the
c4
project
that
dr
jeff
sun
from
the
college
of
education
and
human
development
produced,
which
was
focused
on
certification.
So
these
are
industry,
certifications
like
comptia
security
plus
and
whatnot.
F
Another
project,
this
one
funded
through
the
department
of
homeland
security,
focused
on
taking
the
curriculum
that
we
developed
in
the
grant
previously
mentioned
and
adapting
it
for
law
enforcement,
and
that
has
been
led
by
someone
from
our
criminal
justice
program
and
the
third
one
is
another
from
the
nsa,
dhs
combination,
which
is
focused
on
preparing
the
next
generation
of
cyber
defenders
through
high
school
training.
So
we
have
our
first
cohort
starting
this
summer
with
high
school
instructors,
helping
them
understand
how
they
can
deliver
this
training
to
their
students
in
high
school.
K
So
then,
if
somebody
doesn't
go
in
one
track
of
cyber
security,
they
at
least
have
some
other
upskill
reskill
from
that
perspective,
and
we
were
just
awarded
some
monies
from
humana
to
do
free
classes,
free
introductory
classes
and
cyber
analytics
and
artificial
intelligence,
so
that
our
population
in
kentucky
could
be
moving
forward
and
we're
often
asked
all
over
the
country
presented
a
lot
of
papers
this
year,
we've
done
four
or
five
across
the
country
about
how
we're
doing
this
and
what
we're
doing
in
kentucky
and
how
we're
moving
it
forward.
Thank
you.
D
Guys,
if
you
could
just
kind
of
advance
to
what
your
request
of
the
commonwealth
would
be
because
and
I'm
going
to
explain
why,
with
your
out-of-town
guests
here,
I
want
to
make
sure
we
get
the
opportunity
to
ask
them
questions.
And
I
have
no
doubt
we're
going
to
have
more
conversation
with
little
university
louisville
directly
about
this
and
in
committees
as
well.
But
I
want
to
make
sure.
I
We've
got
some
time
yup,
so
just
real
quick.
This
is
the
first.
This
is
our
first
year
budget
request:
it's
a
million
dollars.
I
realized
it
was
since
mr
hicks
is
still
in
here.
It
should
have
been
945
million,
but
it's
only
a
million,
but
this
is
mainly
for
personnel
personnel
that
are
experts
in
this
space
and
and
the
cyber
range
hardware
and
software
that
is
really
needed
by
critical
infrastructure
in
the
state,
and
it's
really
needed
now
and
then
in
fy24.
I
We
have
a
larger
ask,
and
this
is
really
in
preparation
for
this
building
the
design
of
the
building
and
beginning
site
work
so
that
we
can
in
in
fy,
25
construct
this
this
building,
that
has
the
cyber
infrastructure
and
so
forth
in
it,
and
that
is
the
end
of
our
presentation
happy
to
answer
questions.
Thank
you.
D
Very
good
before
we
get
to
it,
I'm
just
going
to
tell
you
now
the
next
time
that
we
talk
in
the
next
couple
of
months
here
from
louisville.
I
want
to
understand
how
you're
going
to
plug
into
the
bigger
infrastructure
of
all
this,
because
this
is
just
it's
a
huge
issue
and
the
good
news
for
kentucky
is
we're
only
20
years
behind
on
the
deal.
So
I
think
that's
versus.
D
30.
but
nonetheless,
we
can't
go
out
there
in
some
kind
of
a
quixotic
quest.
We
need
to
be
plugged
into
the
overall
national
effort
and
want
to
make
sure
that
we
understand
how
we're
going
to
do
that
appropriately,
all
right
for
the
members
of
the
committee.
Just
briefly,
a
quick
recommendation
from
me:
there's
a
really
great
book
on
kind
of
some
of
the
international
dynamics
to
this
called
three
dangerous
men
by
a
fellow
named
seth
jones.
D
If
you
have
a
chance,
I
would
highly
encourage
you
to
pull
and
read
that
book,
because
if
there's
one
thing
that
cyber
can
do,
it
can
take
the
battlefield
from
a
foreign
shore
to
your
living
room
and
the
speed
of
light,
and
we
all
need
to
realize
that
at
this
point,
so
that's
my
only
admonishment
with
that
senator
carroll,
I
think
you
had
the
first
question.
M
This
impact
insurance
for
government.
I
That's
a
great
question:
I
don't
have
a.
I
don't
have
an
answer
for
that
question
right
now.
I
think
it's
imperative
that
businesses
and
agencies
and
entities
are
are
as
protected
as
it
can
be.
So
I
don't
know
if
anybody
else
has
has
an
answer,
but
we
can
certainly
research
that
and
get
back
to
it's
a
great
question.
C
Thank
you,
mr
chair.
Anything.
E
C
K
C
C
Yeah,
I
am,
you-
may
not
understand
how
we
budget
here
we
have
the
general.
We
have
your
base
funding.
We
have
performance-based
funding,
I'm
assuming
this.
If
we
prove
this
would
be
like
a
mandated
program.
C
Type
of
situation
I
know
uofl
has,
I
think,
the
autistic
center
now
yeah
other
universities
have
specific
mandated
programs.
Western
has
the
messinet
program,
so
I'm
assuming
that's
how
the
funding
would
come
as
a
mandated
program
outside
of
performance-based
funding.
I.
C
Okay,
very
good,
but
I
appreciate
that
look
forward
to
learning
more
about
this
recently
had
a
lyft
driver
just
completed
his
fourth
certificate
in
cyber
security.
I
like
to
talk
to
him
so
when
I
was
at
the
ncsl.
So
this
is
a
very
timely
topic
and
I
appreciate
your
presentation.
Thank
you.
C
Mr
chairman,
thank
you
and
thanks
for
the
presentation
and
obviously
from
the
presentation.
It's
evident
that
we've
got
a
workforce
shortage
in
this
space
and
so
think
about
this
room
as
being
full
of
ambassadors
for
us
to
carry
your
message
out
in
our
rural
communities
and
across
the
commonwealth
urban
centers
as
well
to
talk
to
students,
families,
potential
workforce
participants
in
this
space.
C
We
need
you
to
help
us
bridge
that
message
just
a
little,
though,
because
I
heard
dr
wright
and
I
wrote
this
down
dr
wright,
because
this
is
a
fascinating
statement,
I'm
here
behind
the
post,
how
to
handle
the
world
of
cryptography
in
the
period
of
post-quantum
supremacy,
you're
going
to
have
to
help
us
bridge
from
where
you
are
and
where
we
are
and
where
our
citizens
are.
What
do
we
talk
to
constituents
about
as
it
relates
to
this
presentation,
and
how
do
we
convey
the
message.
F
Thank
you
for
that.
I
was
warned
not
to
talk
technically,
and
I
made
the
mistake
of
throwing
in
a
few
buzzwords.
My
apologies,
I
think
in
simple
terms,
the
the
need
is
at
every
level.
The
workforce
needs
include
people
that
are
coming
out
of
high
school
that
have
skills
that
they
can
immediately
offer
with
some
upskilling
and
training.
We
have
need
for
people
with
associates
degrees.
We
have
need
for
people
with
bachelor's
degrees,
master's
degrees
and
phds.
F
K
We
also
looking
into
more
research
about
embedding
things
into
actually
the
hardware
that
can
you
know,
screen
things
before
it
actually
boots
up.
You
know
from
that
time
period,
but
back
to
the
feed
on
the
street.
Really
we
can
slice
and
dice
it
down
to
a
simple
level,
we're
even
doing
build
a
chat
bots
so
that
people
are
doing
artificial
intelligence.
Even
in
fifth
grade,
we've
been
doing
that
throughout
the
schools
free
so
that
they
can
learn
how
to
to
build
those
things,
but
also
have
awareness.
Thank
you.
I
And
if
I
can
just
add
real
quickly,
the
part
of
our
more
detailed
proposal
has
working
with
k-12
and
how
do
we
prepare
students
in
that
in
in
that
pipeline?
To
have
these
then?
Have
these
follow-on
career
options
right
out
of
high
school,
with
some
certificate
training
right
out
of
high
school
into
a
two-year
degree
right?
All
these
different
options
are
important,
and
part
of
our
work
involves
the
our
college
of
education
and
in
their
work
with
the
state
on
that
exact
subject.
D
Very
well
and
thank
thank
you
and
lastly,
to
your
champion
on
the
issue.
Last
question
will
be
from
senator
nemes.
Thank
you.
M
Mr
chairman,
I'd
like
to
make
a
couple
comments
and
two
questions,
as
you
alluded
to
on
a
national
scale.
This
is
a
center.
This
isn't
for
uofl.
This
is
a
center
kentucky
center
and
it's
a
regional
same
as
georgia.
It's
georgia
regional
center
and
we
went
to
pensacola
and
it's
a
regional
center
and
there
happened
to
be
two
military
bases
right
there
and
they're
very,
very
much
involved,
as
will
fort
knox
and
hopefully
for
campbell
and
workforce.
You
know
I'm
all
for
our
workforce.
M
This
is
six
digit
careers
right
off
the
bat,
and
this
is
like
in
eastern
kentucky,
where
you
can't
hardly
put
in
a
nice
facility.
They
can
work
from
home
or
have
a
small
center
that
you
can
work
anywhere
in
the
cyber.
So
this
is
a
business
and
industry
attraction.
It's
needed.
The
insurance
like
senator
carroll
was
talking
about
is
going.
M
We
heard
this
morning
in
the
nine
o'clock
meeting
about
the
how
the
insurances
is
going
way
up
virginia
when
we
were
at
the
nscl
virginia's
whole
system
went
down
the
whole
system
and
the
state
went
down
and
they
decided
not
to
pay
the
ransom
and
because
they
had
good
backup,
distant
backup,
they
were
able
to
get
back
up
and
they
had
a
cyber
security
company
on
retainer.
M
Can
you
imagine
not
having
any
retainer
or
anybody,
and
a
system
goes
down
more
than
just
yours,
you're
waiting,
you're,
just
waiting
to
try
to
get
on
board
with
someone
that
can
help
you
this
center
in
kentucky
will
not
only
be
for
the
state,
but
the
businesses
that
get
involved
with
the
center.
As
in
georgia,
if
something
goes
down
you're
already
there,
you
already
have
help,
if
not
avoided
the
problem
in
the
first
place.
So
this
is
a
fantastic
industry
and
business.
Now,
let's
talk
about
workforce
which
you
did
I've.
I've
got
a
grandson.
M
I'm
trying
to
get
into
this
he's.
Hopefully
we'll
still
get
him
into
it.
He
went
off
to
college
to
play
baseball
so
because
you
come
out
making
really
good
money
and
the
one
question
I
have
for
you
all
and
one
question
for
michael:
let's
start
with
michael
yours
is
an
easy
one.
Can
you
tell
me
the
difference
in
the
lease
between
the
fed
and
the
state
on
on
the
lease
funding?
The
breakdown
on
that.
L
Yes,
sir,
I
would
I'll
give
you
a
little
more
just
so
you
know
their
educational
rate
of
five
dollars
and
31
cents.
Of
course,
state
of
georgia
does
a
funding
model
for
higher
education.
So
that's
where
that
rate
originates
from
so
for
the
feds.
It's
going
to
be
typically
the
core
of
engineers
or
gsa
who's
going
to
negotiate
that
rate
right
they've
got
what
the
market
is,
and
so
we
made
the
we
made.
L
We
knew
what
we
would
be
getting
from
them,
but
the
importance
was
to
have
our
federal
partners
as
part
of
the
georgia
cyber
center
right.
So
we
do
have
two
federal
agents.
We
have
the
department
of
defense
and
the
department
of
energy,
so
they're
around
25
dollars
a
square
foot
for
industry
partners.
Now
for
the
state
partners,
we,
when
the
cyber
center
was
created,
we
went
ahead
and
loaded
into
the
budget.
These
are
my
terms
so
I
worked
with
was
in
the
governor's
office
in
georgia.
L
M
Me
chairman,
mcdaniels,
always
staunch
on
time.
I
was
just
wanting
to
make
the
point
that
the
feds
come
in
with
plenty
of
money,
but
so
we
here
can
say:
okay,
the
state
doesn't
have
to
put
up
as
much
because
the
feds
are
going
to
help
us.
Yes,.
M
Well,
absolutely
thank
you
and
then
for
for
you
all
we
you
alluded
to
both
of
these
things
is.
I
want
to
know
what
the
you're
going
to
do
for
the
universities
real
quickly,
especially
the
five
other
ones
that
have
the
top
line,
and
we
already
talked
about
why
at
uofl
how
you're
going
to
help
them,
because
the
other
universities,
the
university
of
cumberland's,
they're,
willing
to
put
it
in
their
place
too.
So,
and
then
you
alluded
to
how
we're
helping
and
already
helping
with
the
grants.
K-12,
which
is
tremendous.
K
So,
as
we've
moved
forward
with
the
nsa
again,
even
other
partners
outside
the
state
have
brought
us
into
their
grants.
So
that's
even
new
money
that
we
weren't
even
expecting
because
of
our
expertise,
but
back
to
cumberland
and
or
northern
kentucky
university
has
a
great
technology.
You
see,
there's
such
a
slim
amount
of
high
level
expertise.
We
really
do
need
each
other
in
a
lot
of
different
ways
and
so
cross-pollinating
cross-training
and
even
utilizing
a
central
pool
of
instructors
for
different
different
levels.
K
You
get
to
see
that
slide
that
had
24
modules
and
then,
when
we
start
talking
about
some
of
these
higher
advanced
ones,
wouldn't
it
be
great
if
we
had,
you
know
those
resources
at
all
the
universities
that
we
could.
You
know
pull
from
this
one
poll
from
that
one
to
teach
this
this
particular
module
or
that
particular
module.
You
know,
and
it
shares
the
the
responsibility
as
well
as
the
wealth,
if
you
will,
or
the
revenue
generation
for
the
organizations
in
their
communities.
D
Anybody
else
on
the
committee
haven't
everyone
any
panel
have
anything
for
our
friends
from
university
of
louisville.
Thank
you
for
being
here.
I
do
expect
to
be
back
over
the
next
several
months
here.
Talking
about
this,
some
more
and
for
the
committee.
I
just
want
you
to
think
about
a
couple
of
things.
Please,
because
you
know
every
other
issue
that
we'd
address
in
this
general
assembly
normally
affects
a
constituent
group,
a
small
slice
of
kentucky.
D
That's
largely
what
we
deal
with
this
affects
every
single
person
in
the
commonwealth
and
unfortunately,
it's
not
like
it's
a
it.
A
lot
of
this
is
not
the
fun.
You
know
offensive
type
of
stuff.
You
get
to
go
out
and
design
things
for
amazon.
This
is
a
lot
of
defensive
stuff
and
there's
a
lot
of
people
who
have
ill
will
and
if
you
just
stop
and
think
about
what
all
is
connected
to
the
internet
in
kentucky
it's
everything
except
voting
machines.
D
I
thought
I'd
get
a
chuckle
but
think
about
your
water,
your
power,
your
electricity,
your
health
care
systems
on
and
on,
and
on,
and
every
one
of
those
has
some
impact
every
single
day,
and
this
is
a
big
deal.
So
thank
you
to
senator
nemes
for
bird
dogging
this
up
front.
Thank
you
to
you
guys
all
for
your
work
on
it,
both
nationally
georgia
and
in
our
state,
we'll
look
forward
to
hearing
more
from
you.
Thank
you
very
much.
B
B
We
now
with
the
closeout
of
fiscal
year
2022.
We
now
have
a
second
year
of
rate
reduction
conditions
to
evaluate
and
both
lrc
staff
and
the
executive
branch
staff
have
reviewed
the
conditions
and
both
sets
of
staff
believe
that
the
reduction
conditions
have
been
met
for
fiscal
year
22..
So
you
see
the
chart
at
the
bottom
fiscal
year
2021
to
be
reported
by
that
two
years
to
be
reported
by
september
5th,
but
2021
will
impact
tax
year
2023
and
then
the
2022
conditions
will
impact
tax
year.
B
2024
or
I
should
say,
may
impact-
and
I
say
may
because
the
language
that
was
enacted
in
house
bill
a
yes
house
bill
8
requires
that
the
general
assembly
must
take
action
before
that
second
year
of
rate
reductions
would
occur,
and
so
if
the
general
assembly
takes
action,
the
rate
for
2024
will
be
four
percent.
Instead
of
the
four
and
a
half
percent
that
it
is
for
2023.
B
A
couple
of
other
or
three
other
provisions
that
are
related
to
income
tax
is
the
internal
revenue
code
was
updated.
This
is
something
we
do
quite
regularly
because
it
keeps
kentucky
statute
in
line
with
the
federal
statute
and
the
administrative
regulations
that
go
along
with
the
internal
revenue
code,
and
so
the
internal
revenue
code
update
was
the
reference
date
was
updated
to
the
code
in
effect
on
december
31st
2021,
and
that
applies
to
taxable
years,
beginning
on
or
after
january,
1
2022..
B
B
The
new
tax
credit
is,
refundable,
may
be
assigned
to
another
taxpayer
and
it
has
limitations
based
upon
30
million
dollars
per
qualifying
decontamination
property
and
then,
once
that
credit
is
approved,
then
it
is
taken
over
a
four-year
period,
can't
exceed
25
of
the
total
approved
tax
credit
within
a
taxable
year.
B
B
We
were
still
hanging
on
to
the
bank
franchise
tax
related
to
this
tax
credit,
and
so
that
language
was
also
amended
to
reflect
the
change
that
financial
institutions
now
pay
the
income
tax.
Instead
of
the
bank
franchise
tax.
B
Moving
on
to
sales
tax,
we
have
35
new
services
that
will
become
taxable
january
1
of
2024,
and
I've
just
highlighted
five
here
on
the
screen.
These.
These
are
the
the
ones
who
might
result
in
the
highest
amount
of
receipts,
and
I'm
often
asked
if
businesses
are
taxed
when,
when
a
base,
expansion,
incomes,
whether
business
inputs
are
taxed
and
the
answer
I
always
give
when
we
start
that
that
type
of
discussion
is
well,
it
depends,
and
so
kentucky
has
what
most
well
all
other
states
that
have
a
sales
tax.
B
B
So
now
that
we're
going
to
be
taxing
marketing
services
that
other
company
and
I
they
would,
they
would
issue
a
resale
certificate
to
me
and
then
tax
would
not
be
charged
on
the
transaction
between
the
two
marketing
cup
companies.
B
But
then,
if
my
customer
were
a
business
who
were
they
were
purchasing
marketing
services
to
be
used
in
their
business,
then
that
is
the
transaction
that
would
be
taxable
what
I
charged
for
this
complete
service
provided
by
both
marketing
companies.
But
it's
that
sale
for
resale
between
these
two
marketing
companies
that
allows
that
exemption
to
occur
at
the
initial
level
and
only
tax
to
the
end
consumer.
B
B
The
other
type
of
surgery
is
plastic
surgery,
so
cosmetic
surgery
is
taxable
plastic
surgery
related
to
those
reconditions
and
and
body
defects.
That
would
not
be
taxable
also
for
testing
services
that
excludes
medical,
educational
or
veterinary
services,
and
something
that's
not
on
here
that
I'll,
just
throw
in
parking
services
excludes
services
at
an
educational
institution.
B
Some
other
provisions
in
sales
tax
that
were
within
house
bill
8.
We
have
expanded
the
definition
of
extended
warranty
to
include
items
of
real
property.
So
if
your
home
warranty
included
replacement
of
a
roof,
that
is
normally
real
property
which
would
not
have
been
taxed,
the
extended
warranty
on
that
service
would
not
have
been
taxed
until
house
bill,
8
becomes
effective
january
1..
B
Today
there
was
a
new
exemption
created
for
prescription
and
over-the-counter
drugs
related
to
any
person
regularly
engaged
in
the
business
of
farming
and
those
drugs
being
used
in
the
treatment
of
cattle,
sheep,
goats,
wine,
poultry
rat,
tights,
llamas,
all
the
livestock
which
currently
have
the
other
agricultural
exemptions
and
then
finally,
the
the
current
exemption
for
residential
utilities
was
limited
and
that
it
is
the
residential
utilities
at
your
place
of
domicile
that
would
be
exempt.
So
for
a
person
who
owns
two
homes
in
kentucky.
Maybe
you
have
a
lake
house
for
vacation
purposes.
B
B
It
is
based
upon
six
percent
of
the
gross
receipts
derived
from
peer-to-peer
car
sharing
from
the
rental
of
motor
vehicles
for
transportation
network
companies.
For
those
of
you
who
may
not
be
familiar
with
that
term,
that's
a
uber
or
lyft
for
taxi
cab
services
for
limousine
services,
so
any
person
who
is
either
providing
for
rent
or
for
sharing
a
motor
vehicle
in
kentucky.
B
The
next
tax
is
next
new
tax
is
the
electric
vehicle
power
excise
tax?
This
is
a
road
fund
tax,
so
deposit
it
into
the
road
fund,
and
it
will
begin
one
year
later
january.
1
2024
the
electric
vehicle
power
must
be
distributed
by
an
electric
vehicle
power
dealer.
So
this
is
not
you
plugging
in
your
car
at
your
home.
This
is
the
the
refueling,
the
recharging
of
your
vehicle,
while
you're
out
on
the
road
by
dealer.
B
The
initial
base
rate
is
three
dollars
per
kilowatt
hour.
There
is
a
surtax
that
is
also
charged
of
3
cents
per
kilowatt
hour.
If
the
charging
station
is
located
on
state
property,
this
rate
will
be
adjusted
according
to
the
national
highway
construction
cost
index
2.0
and
that
annual
adjustment
will
begin
one
year
after
implementation
on
january
1
2025.,
as
that
rate
goes
up,
it
cannot
go
up
or
down
greater
than
five
percent
and
it
cannot
degra
decrease
below
the
base
rate
of
the
three
cents
per
kilowatt
hour.
B
B
She
is
researching
all
50
states
and
the
federal
government
and
providing
that
information
on
a
monthly
basis.
So
look
for
the
final
report
to
come
in
december.
You
you'll
get
month
by
month,
updates
and
you'll
see
that
listed
on
the
reports
that
we
receive,
but
the
the
most
important
report
will
be
the
final
one
in
december,
when
we
have
all
states
collected
at
that
point
in
time,
plus
the
federal
government.
B
It
begins
one
year
later,
like
the
ev
power
tax
on
january
january,
1
2024,
and
it's
imposed
for
the
privilege
of
owning
an
electric
vehicle.
So
you
heard
state
budget
director
john
hicks
say
something
about
the
sales
tax
on
cars,
the
motor
vehicle
usage
tax
of
six
percent
that
still
stays
that
remains
the
same.
This
is
an
additional
tax
or
a
fee,
four
electric
vehicles
and
it's
120
dollars
for
electric
vehicles,
sixty
dollars
for
electric
motorcycles
or
hybrid
vehicles,
and
it's
paid
at
the
same
time
as
the
annual
registration.
B
B
B
B
That
might
be
referred
to
the
department
for
collection
purposes
and
if
you're
not
aware,
the
department
of
revenue
receives
individual
income
taxes,
it's
the
primary
source,
but
individual
income
tax
notices
of
tax
due
from
the
federal
government-
and
they
primarily
will
try
to
collect
that
and
revenue
then
sends
the
irs
the
kentucky
income
tax
due
these
are
final
due
and
owing
bills
that
they
exchange
and
they
collect
for
each
other.
B
That
date
is
coming
up
and
I
have
not
heard
about
an
rfp
yet
so
there
is
a
provision
in
house
bill.
8
that
says.
If
a
successful
bid
for
procurement
is
not
secured,
then
the
department
will
implement
a
tax
amnesty
one
year
later
during
a
similar
60-day
period.
B
I
know
that
was
pretty
quick
but
I'll
be
glad
to
answer
any
questions
or
go
back
over
anything
that
needs
more
detail.
D
M
Yes,
thank
you
chairman.
I
just
want
to
make
a
comment.
I
take
issue
with
the
wording
tax
imposed
for
the
privilege
of
owning
an
electric
vehicle
that
is
not
so
it's
a
tax
for
the
use
of
the
roads
that
that
electric
vehicle
uses-
and
I
know
the
feds-
give
like
seventeen
thousand
dollars
off
on
purchasing
a
ev.
So
I
just
take
issue
with
that
wording
because
we
are
not
taxing
people
for
a
privilege
to
own
something.
M
B
If
I
may
respond,
that
is
statutory
language,
so
I
pulled
that
out
of
the
statute.
G
Just
real
quickly,
I
wanted
to
just
clarify,
because
I
know
there
are
some
weary
souls
that
watch
this
and
and
for
those
who
saw
that
we're
going
to
expand
taxing
on
cosmetic
surgery.
I
just
wanted
to
be
sure
to
to
mention
that
that's
not
cosmetic
surgeries
in
connection
with,
like
breast
cancer
or
some
kind
of
a
medical
necessity,
it's
elected
cosmetic
surgery,
is
that
is
that
correct.
G
D
Very
well
anything
else.
Well,
if
anyone's
not
seen
hope's
report.
As
of
yet
it's
it's
a
good
piece
of
work.
Hope
I
apologize.
I
think
it's
my
fault
that
you're
having
to
put
that
together,
but
it
is
good
work
and
every.
I
would
remind
the
members
of
this
committee.
D
We
specifically
put
january
1st
2024
in
there
to
allow
time
for
comment
and
input,
as
this
is
a
very
new
thing,
but
as
we
expand
electric
vehicles
and
and
begin
to
see,
the
reduction
reliance
on
the
internal
combustion
engine
is
something
we
want
to
have
in
place
and
plenty
of
time
to
accommodate
for
that
transition.
So,
to
the
extent
that
there
are
people
who
have
issue
with
that,
they
need
to
be
bringing
those
things.
D
We've
given
plenty
of
grace
period
for
adjustments
to
be
made
as
necessary,
but
at
the
end
of
this
session
it
will
go
into
law
come
following
january
and
we
want
it
to
be
as
right
as
humanly
possible.
So
jenny
once
again.
Thank
you
for
splitting
your
testimony
up
into
two
meetings.
We
sincerely
do
appreciate
that
in
your
packets
today,
you
will
find
some
follow-up
information
from
louisville
metro
regarding
their
juvenile
corrections
facilities
would
encourage
everybody
to
take
a
look
at
that.
D
There
is
our
normal
correspondence
from
jenny,
bannister
on
interim
allotment
and
emergency
appropriation
increases,
and
also
some
various
reports
we've
seen
received
since
july,
the
6th
of
2022
once
again
to
our
friends
from
university
of
louisville
and
also
from
out
of
town.
Thank
you
very
much
for
being
here
today
and
presenting
on
a
very
important
subject.
We
will
certainly
look
forward
to
some
additional
conversations
moving
forward,
any
other
business
to
come
for
the
committee,
seeing
none.
We
will
stand
adjourned.