Gov. Andy Beshear has vetoed priority legislation from the General Assembly that would enroll Kentucky in a federal education tax credit program.
Under House Bill 1, participants would receive tax credits by donating to a nonprofit, which would then distribute scholarships to families for educational costs, including private school tuition.
In issuing his veto on Friday, Beshear called on lawmakers to instead put more money into public education.
“The answer to public education isn’t to divert dollars and students," Beshear said. "It’s to fund it in a way to actually fix it and I wish the General Assembly would agree on that.”
Beshear pointed to a 2024 ballot measure in which voters rejected a constitutional amendment that would have allowed taxpayer money to be spent on private or charter schools.
The scholarships could be used for other educational expenses like tutoring, transportation, and home internet access.
“The Governor’s veto of HB 1 is a shameful disservice to Kentucky students and families in public, private, and home school settings, said Reps. Kim Moser and T.J. Roberts in a joint statement.
Moser (R-Taylor Mill) and Roberts (R-Burlington) were the primary and co-sponsor of HB 1, respectively.
The Education Freedom Tax Credit allows up to $1,700 per year for individuals who donate to scholarship granting organizations (SGO). The SGOs would give most of the money to eligible students through scholarships, but keep a small portion for administrative costs. Donors could receive the tax credit even if they don't live in a state participating in the program.
“The measure would allow Kentucky students to benefit from scholarships funded through a federal tax credit – without costing the Commonwealth a single dollar," Moser and Roberts said in their statement. "Because Kentuckians can already donate in other states and receive the same federal tax credit, the Governor’s veto effectively sends Kentucky dollars to educate students elsewhere instead of helping families here at home."
The Democratic governor's veto is likely to be overridden by the House and Senate, both of which have Republican supermajorities.
Beshear suggested that state lawmakers aren't listening to their constituents, pointing to the failed 2024 ballot measure.
“In our constitution, it says if we’re going to use public dollars for anything other than public schools, you have to put it to the voters, and they did," Beshear said. "Guess what happened? Every single county said they didn’t want public dollars to go to private schools.”
HB 1 is the second bill Beshear has vetoed this year. The first was House Bill 314, which would remove the Kentucky Communications Network Authority (KCNA) from the Governor’s office and give the Finance and Administration Cabinet and the Commonwealth Office of Technology oversight of KCNA.
The veto was overridden by the GOP-controlled legislature.
