General Government Local Government Economic Development Fund

Local Government FY 2024 Real Estate Government Fund

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.