| Finance and Administration | |||||
| Debt Service | |||||
| Actual FY 2024 | Actual FY 2025 | Revised FY 2026 | Recommended FY 2027 | Recommended FY 2028 | |
| SOURCE OF FUNDS | |||||
| General Fund | |||||
| Regular Appropriation | 392,545,500 | 379,897,300 | 721,737,800 | 608,316,400 | 834,836,400 |
| Continuing Approp-General Fund | 18,500,000 | ||||
| Total General Fund | 392,545,500 | 379,897,300 | 721,737,800 | 626,816,400 | 834,836,400 |
| Tobacco Fund | |||||
| Tobacco Settlement - Phase I | 23,666,200 | 23,466,900 | 16,783,700 | 14,100,200 | 13,880,800 |
| Total Tobacco Fund | 23,666,200 | 23,466,900 | 16,783,700 | 14,100,200 | 13,880,800 |
| TOTAL SOURCE OF FUNDS | 416,211,700 | 403,364,200 | 738,521,500 | 640,916,600 | 848,717,200 |
| EXPENDITURES BY CLASS | |||||
| Debt Service | 267,911,723 | 303,675,915 | 711,979,700 | 615,317,600 | 780,618,000 |
| TOTAL EXPENDITURES | 267,911,723 | 303,675,915 | 711,979,700 | 615,317,600 | 780,618,000 |
| EXPENDITURES BY FUND SOURCE | |||||
| General Fund | 245,744,511 | 281,527,015 | 696,320,700 | 601,217,400 | 766,737,200 |
| Tobacco Fund | 22,167,212 | 22,148,900 | 15,659,000 | 14,100,200 | 13,880,800 |
| TOTAL EXPENDITURES | 267,911,723 | 303,675,915 | 711,979,700 | 615,317,600 | 780,618,000 |
| EXPENDITURES BY UNIT | |||||
| Debt Service | 267,911,723 | 303,675,915 | 711,979,700 | 615,317,600 | 780,618,000 |
| TOTAL EXPENDITURES | 267,911,723 | 303,675,915 | 711,979,700 | 615,317,600 | 780,618,000 |
Previously authorized State Property and Buildings Commission General Fund debt service and new 2026-2028 General Fund debt service for all agencies is consolidated in the Finance and Administration Cabinet.
The Governor's budget includes additional General Fund of $54,595,000 in fiscal year 2027 and $122,418,000 in fiscal year 2028 to support new debt authorized in the capital budget. Unlike in past biennial budgets where new debt service was appropriated in the budgets of the affected agencies, the Governor's 2026-2028 budget appropriates the full amount of new General Fund debt service to the Finance Cabinet Debt Service budget unit, which more accurately reflects the manner in which the budget is implemented. The only exception to this is new School Facilities Construction Commission (SFCC) debt service, which remains in SFCC's budget.
The American Recovery and Reinvestment Act of 2009 created a new debt instrument for tax-exempt municipal bond issuers, called Build America Bonds. Municipal bond issuers could issue Build America Bonds for eligible tax-exempt purposes on a permanent basis only. The Commonwealth was eligible for a subsidy for bonds issued as Build America Bonds prior to December 31, 2010. Subsidies from the Build America Bonds shall lapse to the General Fund. The amount of the General Fund lapse is $6,318,100 in fiscal year 2026 and the amount of Tobacco Fund lapse is $1,124,700 in fiscal year 2026. All remaining subsidized debt was refunded for economic savings, and the Commonwealth will no longer receive Build America Bond subsidies after fiscal year 2026.
KRS 150.021 requires that the Finance and Administration Cabinet assess the Department of Fish & Wildlife Resources each fiscal year an amount equal to five percent of the debt service associated with all phases of the Kentucky State Police Two-Way Radio capital project. In fiscal year 2026 that amounts to $599,000, in fiscal year 2027 it equals $599,000, and in fiscal year 2028 it equals $599,200. Those amounts are included as a net adjustment to General Fund debt service expenditures included above.
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