9358c7b6-57c1-44a6-8891-7466b904500c_2026-28_Executive_Budget_-_Operating_Budget_-_Volume_I-artifacted.pdf — PaddleOCR-VL (Baidu)

General Government Local Government Economic Development Fund

	Local Government FY 2024	Real Estate Government Fund
	Local Government FY 2024	Actual FY 2025	Revised FY 2026	Recommended FY 2027	Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation	39,816,600	42,689,300	28,548,600	20,494,700	15,059,000
Other	2,963,875	(9,115,170)	(6,823,800)
Total General Fund	42,780,475	33,574,130	21,724,800	20,494,700	15,059,000
Restricted Funds
Non-Revenue Receipts	125,000
Total Restricted Funds	125,000
TOTAL SOURCE OF FUNDS	42,905,475	33,574,130	21,724,800	20,494,700	15,059,000
EXPENDITURES BY CLASS
Grants Loans Benefits	42,905,475	33,574,130	21,724,800	20,494,700	15,059,000
TOTAL EXPENDITURES	42,905,475	33,574,130	21,724,800	20,494,700	15,059,000
EXPENDITURES BY FUND SOURCE
General Fund	42,780,475	33,574,130	21,724,800	20,494,700	15,059,000
Restricted Funds	125,000
TOTAL EXPENDITURES	42,905,475	33,574,130	21,724,800	20,494,700	15,059,000
EXPENDITURES BY UNIT
Economic Development Fund	42,905,475	33,574,130	21,724,800	20,494,700	15,059,000
TOTAL EXPENDITURES	42,905,475	33,574,130	21,724,800	20,494,700	15,059,000

The Local Government Economic Development Fund (LGEDF) in KRS 42.458-42.495 is a revenue-sharing program that was created by the 1992 General Assembly to provide coal-producing counties with a means to attract new industry.

The Executive budget provides $20,494,700 in General Fund in fiscal year 2027 and $15,059,000 in fiscal year 2028 coalescence tax revenues to the LGEDF. These funds will be transferred to the LGEDF Single-County accounts to be allocated to projects with the concurrence of the respective county judge/executive, state senator(s), and state representative(s) of each county. Currently, 30 counties receive allocations to their Single-County account.

Policy

The budget suspends KRS 42.450 to 42.495, so that 70 percent of the severance and processing taxes on coal collected annually is transferred to the Local Government Economic Development Fund and 30 percent of the severance and processing taxes on coal collected annually shall be transferred to the Local Government Economic Assistance Fund.

Off-the-Top Funding Items: funds are provided for specified uses from General Fund coal severance tax revenues, many resulting from the suspension of KRS 42.450 to 42.495:

$669,700 for the Department for Local Government to administer Local Government Economic Development Fund and Local Government Economic Assistance Fund programs
$17,747,700 in fiscal year 2027 and $16,786,600 in fiscal year 2028 for debt service to the Finance and Administration Cabinet equating to 100 percent of the debt service needed to support bonds authorized in the 2008, and 2010 sessions of the General Assembly.