Kentucky Teachers’ Union, Education Groups Sound Alarm Over House Budget Bill

Jessica Bowling

February 16, 2026

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A Kentucky teachers’ union and several public education advocacy groups are voicing strong opposition to a Republican-backed state budget proposal, warning it could significantly impact school employees and public education funding.

The Fayette County Education Association and the advocacy group Protect Our Schools both released statements Sunday criticizing House Bill 500. Protect Our Schools also announced it would host an online “urgent call to action” meeting Monday evening.

At the center of the concern is a provision in House Bill 500 that would place a 5% annual cap on employer contributions to the Kentucky Employee Health Plan (KEHP). In a letter to lawmakers last week, Personnel Cabinet Secretary Mary Elizabeth Bailey warned the cap would create a funding shortfall in the health plan, which covers more than 310,000 state workers, retirees and dependents. According to Bailey, about 6.8% of all Kentuckians participate in KEHP.

Bailey cautioned that the proposal could lead to steep premium increases — potentially up to 78% over the next two years — or reductions in benefits for state employees.

Allison Slone, founder of Kentucky Teachers in the Know, echoed those concerns in a Facebook post over the weekend, warning the measure could push teachers and bus drivers to leave their jobs. “If this bill becomes law, your children’s teachers and bus drivers will leave. Many won’t have a choice,” Slone wrote.

Protect Our Schools described the proposal as an “all-out assault on public education in Kentucky,” arguing that beyond the health insurance cap, the bill also sidesteps pay raises, reduces school bus funding and freezes state funding for public schools.

The legislation, House Bill 500, was introduced by Rep. Jason Petrie, a Republican from Elkton and chair of the House Appropriations and Revenue Committee. Lawmakers have said the bill is a first draft and subject to revisions. It has been referred to the House Appropriations and Revenue Committee for further consideration.

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