Beshear says ‘all eyes on Kentucky’ amid record private investment in annual address

Democratic Gov. Andy Beshear used Wednesday night’s State of the Commonwealth Address to pitch Kentucky’s strengths as a means for further investment, boasting of the more than $35 billion in private sector investments made during his time in office — the largest amount under any governor, he said.

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Borrowing the tagline from the state’s latest economic and tourism development plan, he repeatedly described “our new Kentucky home” as welcoming further investments in manufacturing, healthcare and infrastructure like those that have come to the state under his tenure.

Over the last year, Kentucky has announced $6.9 billion worth of investments and more than 9,400 new jobs, he said.

“We’re welcoming more businesses, more families and more visitors to our new Kentucky home,” Beshear said. “We’re making progress like we’ve never seen before, and the rest of the country is noticing. Right now, all eyes are on Kentucky.”

The 47-year-old term limited governor also pointed to accomplishments, including bipartisan legislation, like medical marijuana, which technically became legal in the state on Jan. 1, and efforts to restore communities devastated by natural disasters. At the same time he called lawmakers to end legislative efforts to establish school choice, and pushed for universal pre-K.

A smaller than average crowd of Kentucky lawmakers gathered inside the snow-draped Kentucky state Capitol to listen to Beshear’s address on the second day of the legislative session as the General Assembly begins their short 30-day session.

Beshear laid out his goals for the session where he might find common ground with Republican leadership, namely economic development. He asked for a continuation of the state’s site development work and called for a talent attraction program.

In a statement, Republican Party of Kentucky spokesperson Andy Westberry said Beshear can’t take credit for Kentucky’s economic success, laying the attribution at the Republican-controlled legislature’s feet.

“This evening, Andy Beshear delivered the same tired speech he has been giving for the past five years. His attempt to rebrand Kentucky as his ‘new Kentucky home’ is both comical and misleading, and a continuation of the same old Beshear lies,” Westerberry said.

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While Beshear and the Republican supermajority legislature have occasionally agreed on certain economic development priorities — for example, the special session to approve $410 million in incentives for a 5,000-job Ford battery manufacturing park — they have disagreed over many other topics.

Beshear’s attempts to secure across-the-board teacher raises and universal pre-K education have fallen flat — two of his main platforms when he ran for reelection in 2023 — and he renewed the call for both Wednesday. Beshear celebrated the resounding failure of Amendment 2 last year, which would have allowed public dollars to fund private and charter education.

“That’s a mandate – a mandate to prioritize public education,” Beshear said. “So let’s stop with the attempts to defund; let’s stop the voucher nonsense; let’s stop the end-runs through tax shelters. Instead, let’s do the hard work to strengthen and improve our public schools.”

GOP House Speaker David Osborne of Prospect said in an interview with KET that he is frustrated Beshear would accuse the legislature of defunding education, saying the dollar amount is at a record high, although some argue teacher salaries have not kept up with inflation.

Republican House Floor Leader Steven Rudy of Paducah said he doesn’t “foresee” the ability to accomplish universal pre-K anytime soon.

“We’re trying to get our state’s fiscal house in order. We’ve done a really good job of that,” Rudy said. “We’re interested in making Kentucky a better place, focusing on continuing to lower the income tax and make us a better place to live that way.”

A lower income tax, passed by the GOP-dominated legislature, is one of the policies that Beshear lauded in his address.

“At a time when things cost too much, we’ve lowered the income tax, and we’ve lowered property taxes four years in a row,” Beshear said. “We froze the gas tax when times were tough, and we’ve capped the price of insulin.”

It’s one of state Republicans’ top priorities. They are set to once again lower the income tax to 3.5% in 2026 based on a bill now working its way through the state’s House of Representatives. Beshear vetoed the first income tax cut, but put his signature to the second.

Beshear also called for the Kentucky General Assembly to focus on the issues that most affect working-class Kentuckians.

“If you’re staring at the cost of your child’s prescription and wondering how you’re going to pay for both it and your family’s dinner, the offense of the day in Washington just doesn’t seem that important,” Beshear said “That’s why in Kentucky, we make progress by pushing out that national noise, by working together, by setting politics aside, by focusing on what is most important to our families.”

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Beshear was himself involved in national politics last year as he campaigned for Vice President Kamala Harris in her presidential bid — he was reportedly on the shortlist to join her on the ticket. Beshear has also helped raise money for candidates outside the state.

Beshear pointed to infrastructure and manufacturing accomplishments like expanding the Mountain Parkway and the state’s four new electric battery plants. He boasted of $500 million investments in drinking water infrastructure and projects to bring high-speed internet to more than 80,000 homes.

Beshear noted the state has weathered many natural disasters, saying that it has become more resilient. For example, Beshear has begun implementing a plan to spend hundreds of millions of federal recovery dollars to build new high-ground communities on top of former strip mines.

“We’ve proven over and over again that Kentuckians don’t break. We lean on each other, and we get through whatever the world throws at us — and we get through it together,” Beshear said.

Following the address, Republican Senate President Robert Stivers of Manchester said in a KET interview that the state’s fiscal stability and economic growth are due to legislative efforts to rein in spending and adopt business-friendly policies.

“The governor talked about all the successes that have been taking place, and I think he should turn around and look at the legislature when he talks about… how we have had the good credit ratings and all the indexes that are better,” Stivers said, referring to several major agencies raising Kentucky’s credit score.

Referencing the Christmas story of the Virgin Mary giving birth to Jesus in a manger, Beshear called lawmakers to be more thoughtful in how their legislation affects impoverished, homeless and addicted Kentuckians.

“Do we recognize that the difference between the carrot or the stick is the difference between feeding or beating?” Beshear said. “I hope and pray that God grants us the wisdom to see beyond the anger of today to the possibility and promise of tomorrow.”

State government and politics reporting is supported in part by the Corporation for Public Broadcasting.