The budgetary resources for the Cabinet are organized into six programs within a single appropriation unit. The Office of the Secretary provides strategic direction for Cabinet activities and administrative services such as legal, fiscal, budget, personnel and asset management. Business Development is the Commonwealth's marketing and sales force to both prospective investors and existing businesses. Its resources include Kentucky-based business development agents and representatives in Tokyo, Japan and Hamburg, Germany; a database of available sites; comprehensive market research; targeted programs for small businesses; and support of the statewide network of Innovation and Commercialization Centers. The Bluegrass State Skills Corporation makes matching grants for industry-specific training of employees. Financial Services administers loans, grants and tax incentives available to businesses that invest and create or maintain jobs in Kentucky, and staffs the Kentucky Economic Development Finance Authority. The Science and Technology Program captures the Science and Technology Funding Programs outlined in KRS 154.12-278, which include the Kentucky Innovation Network HUBS, the Kentucky Commercialization Ventures, the Kentucky Enterprise Fund, the Kentucky Small Business Innovation Research and Technology Transfer programs including the administration of the matching funds (SBIR/STTR), the Experimental Program to Stimulate Competitive Research (EPSCoR), and the Kentucky Science and Engineering Foundation (KSEF). The Kentucky Film Office provides guidance and assistance to the film and entertainment industry to choose locations in the Commonwealth for the filming and production of motion picture and entertainment productions and encourages the development of the film and entertainment industry in Kentucky.
The budget includes additional General Fund of $2,500,000 in each fiscal year for a Talent Attraction initiative to establish a strategy around talent attraction and retention. This initiative will be used to promote and market Kentucky's employment opportunities throughout the United States. These funds will be used to develop a strategy around talent attraction and retention, to leverage local chambers of commerce and private funding to target the jobs available within those communities, to develop a promotional campaign to attract talent, and to establish online and other resources that are readily available for individuals seeking more information on skilled job opportunities and the quality of life in Kentucky.
The budget includes additional General Fund of $225,000 in each fiscal year to contract with representation in South Korea to assist with the attraction of new projects, expansion opportunities, and retention of South Korean companies located in or considering Kentucky.
The base budget includes $250,000 in Restricted Funds from the statewide transient room tax each fiscal year for the new Kentucky Film Office established in SB 1 from the 2025 Regular Session of the General Assembly. The Governor's budget includes additional General Fund of $285,000 in each fiscal year for the Office for staffing and operating costs.
The Governor's budget includes additional funding in the amount of $179,600 in fiscal year 2027 and $368,300 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. The General Fund portion is $136,500 and $279,900, respectively.