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2026-2028 EXECUTIVE BUDGET Andy Beshear GOVERNOR John Hicks STATE BUDGET DIRECTOR Volume I ===== PAGE 2 ===== ## TABLE OF CONTENTS EXECUTIVE BRANCH 1 GENERAL GOVERNMENT 3 Office of the Governor 5 Office of State Budget Director 7 Homeland Security 9 Veterans' Affairs 11 Kentucky Infrastructure Authority 13 Military Affairs 16 Commission on Human Rights 18 Department for Local Government 20 Local Government Economic Assistance Fund 22 Local Government Economic Development Fund 24 Local Government Regional Dev Agency Assistance Fund 26 Executive Branch Ethics Commission 27 Secretary of State 28 Board of Elections 30 Registry of Election Finance 32 Attorney General 33 Commonwealth's Attorneys 35 County Attorneys 37 Treasury 38 Agriculture 40 Auditor of Public Accounts 43 Personnel Board 45 Kentucky Public Pensions Authority 46 Occupational and Professional Boards and Commissions 48 Kentucky River Authority 50 School Facilities Construction Commission 52 Teachers' Retirement System 54 Judgments 56 Appropriations Not Otherwise Classified 57 KY Communications Network Authority 59 ECONOMIC DEVELOPMENT 61 Economic Development 61 DEPARTMENT OF EDUCATION 63 Support Education Excellence in Kentucky (SEEK) 65 Operations and Support Services 67 Commissioner's Office/Board of Education 69 Finance and Operations 70 Legal Services 72 Education Technology 73 West Ky State Aid Funding for Emergencies (SAFE) Fund 75 ===== PAGE 3 ===== EKY SAFE Fund ..... 76 Learning and Results Services ..... 77 Continuous Improvement and Support ..... 79 Special Education and Early Learning ..... 81 Educator Licensure and Effectiveness ..... 83 Teaching and Learning ..... 84 Assessment and Accountability ..... 86 State Schools ..... 87 Career and Technical Education and Student Transition ..... 89 Local District Health and Life Insurance ..... 91 EDUCATION AND LABOR ..... 92 General Administration and Program Support ..... 94 Proprietary Education ..... 97 Deaf and Hard of Hearing ..... 98 Kentucky Educational Television ..... 99 Environmental Education Council ..... 101 Libraries and Archives ..... 103 Libraries and Archives ..... 105 Direct Local Aid ..... 107 Workforce Development ..... 109 Commissioners' Office ..... 111 Vocational Rehabilitation ..... 112 Employer and Apprenticeship Services ..... 115 Adult Education ..... 116 Unemployment Insurance ..... 117 Unemployment Insurance Commission ..... 119 Career Development Office ..... 120 Workforce Innovation and Opportunity Act ..... 121 Workplace Standards ..... 122 Workers' Claims ..... 124 Occupational Safety and Health Review Commission ..... 125 Workers' Compensation Funding Commission ..... 126 Workers' Compensation Nominating Commission ..... 128 Disability Determinations ..... 129 ENERGY AND ENVIRONMENT ..... 130 Secretary ..... 132 Administrative Services ..... 134 Environmental Protection ..... 135 Commissioner ..... 137 Water ..... 138 Waste Management ..... 140 Air Quality ..... 142 Environmental Program Support ..... 143 Enforcement ..... 144 Petroleum Storage Tank Environmental Assurance Fund ..... 145 ===== PAGE 4 ===== Natural Resources 146 Commissioner 148 Forestry 149 Conservation 150 Oil and Gas 151 Mine Permits 152 Mine Reclamation and Enforcement 153 Abandoned Mine Lands 154 Mine Safety 155 Reclamation Guaranty Fund 157 Abandoned Mine Land Reclamation Projects 158 Mine Safety Review Commission 159 Energy Policy 160 Kentucky Nature Preserves 162 Public Service Commission 164 FINANCE AND ADMINISTRATION 166 General Administration 168 Controller 170 Debt Service 172 Facilities and Support Services 174 County Costs 176 Commonwealth Office of Technology 178 Revenue 180 Property Valuation Administrators 182 HEALTH AND FAMILY SERVICES 183 General Administration and Program Support 185 Administrative Support 187 Inspector General 189 Office of Medical Cannabis 191 Medicaid Services 192 Medicaid Administration 194 Medicaid Benefits 196 Behavioral Health, Developmental and Intellectual Disabilities 200 Community Developmental and Intellectual Disabilities 202 Community Substance Use Disorder Services 203 Community Mental Health Services 205 General Support 207 Residential 208 Public Health 210 General Health Support 212 Women's Health 214 Prevention and Quality Improvement 216 Epidemiology and Health Planning 218 Maternal and Child Health 220 Laboratory Services 222 ===== PAGE 5 ===== Public Health Protection and Safety 224 Children's Health Services 227 Family Resource Centers and Volunteer Services 230 Family Resource and Youth Services Center 231 Serve Kentucky 233 Community Based Services 234 Family Support 236 Energy 239 Child Care 240 Family and Community Services 243 Guardianship 247 Aging and Independent Living 249 JUSTICE AND PUBLIC SAFETY 252 Justice Administration 254 Criminal Justice Training 258 Juvenile Justice 261 State Police 264 Corrections 267 Corrections Management 269 Adult Correctional Institutions 271 Community Services and Local Facilities 274 Local Jail Support 276 Public Advocacy 278 PERSONNEL 280 General Operations 282 Public Employees Deferred Compensation Authority 284 Workers' Compensation Benefits and Reserve 285 Fixed Allocation Non-Hazardous Pension Fund 286 State Salary and Compensation Fund 287 POSTSECONDARY EDUCATION 288 Council on Postsecondary Education 289 Agency Operations 291 Licensure 292 Pass Through Programs 293 Federal Programs 295 Strategic Investment and Incentive Funding Program 296 Kentucky Higher Education Assistance Authority 298 Postsecondary Education Institutions 302 Eastern Kentucky University 303 Kentucky State University 305 Morehead State University 307 Murray State University 309 Northern Kentucky University 311 ===== PAGE 6 ===== University of Kentucky 313 University of Louisville 315 Western Kentucky University 317 Kentucky Community and Technical College System 319 Postsecondary Education Performance Fund 321 PUBLIC PROTECTION 322 Secretary 324 Claims and Appeals 325 Professional Licensing 327 Boxing and Wrestling Commission 329 Alcoholic Beverage Control 330 Charitable Gaming 332 Financial Institutions 333 Housing, Buildings and Construction 335 Insurance 337 TOURISM, ARTS AND HERITAGE 339 Secretary 341 Artisans Center 343 Kentucky Department of Tourism 344 Parks 346 Horse Park Commission 349 State Fair Board 351 Fish and Wildlife Resources 353 Historical Society 355 Arts Council 357 Heritage Council 359 Kentucky Center for the Arts 361 TRANSPORTATION 362 General Administration and Support 364 Aviation 366 Debt Service 368 Highways 369 Research 371 Construction 372 Maintenance 374 Engineering Administration 376 Planning 377 Highway Operations 378 Equipment Services 379 Highway Safety 380 EKY SAFE Fund 381 Public Transportation 382 Revenue Sharing 384 ===== PAGE 7 ===== Vehicle Regulation.....386 STATEWIDE Budget Reserve Trust Fund.....388 Kentucky Permanent Pension Fund.....389 ===== PAGE 8 ===== Executive Branch ===== PAGE 9 =====
Executive Branch
Executive Branch
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation13,553,948,30014,841,746,50015,266,489,80015,028,184,80016,356,990,800
Budget Reserve504,700,0001,554,915,7461,047,406,500
State Salary and Compensation Allocation
Postsecondary Ed Performance Fund
Surplus Expenditure Plan1,452,921,41015,044,859251,340,200
Special Appropriation81,775,9006,200,0006,200,000
Current Year Appropriation2,034,616,900
Continuing Approp-General Fund2,942,668,2276,192,228,8455,717,397,5003,884,706,5002,969,834,400
Reorganization Adjustment
Budget Reduction-General Fund(77,722,900)
Mandated Allotments98,682,50562,132,339
Other(495,654,867)(1,554,394,239)(1,124,371,400)(795,650,000)(166,500,000)
Budget Reserve Trust Fund
Total General Fund20,173,658,37521,117,874,04921,086,739,70018,117,241,30019,160,325,200
Tobacco Fund
Tobacco Settlement - Phase I106,078,20099,118,00094,224,70082,800,00077,400,000
Continuing Approp-Tob Settlement110,858,53491,913,24948,816,3005,112,2002,556,100
Other3,277,7542,578,902
Total Tobacco Fund220,214,489193,610,151143,041,00087,912,20079,956,100
Restricted Funds
Balance Forward2,004,425,9092,070,584,4071,769,331,4001,332,948,700822,312,900
Current Receipts11,391,055,83712,777,793,38614,708,382,10015,519,718,80016,363,937,800
Non-Revenue Receipts1,165,771,8001,112,453,1461,338,503,5001,098,805,2001,152,913,600
Fund Transfers(3,267,000)(5,248,634)(4,311,900)(4,408,400)(3,964,600)
Total Restricted Funds14,557,986,54615,955,582,30517,811,905,10017,947,064,30018,335,199,700
Federal Fund
Balance Forward723,651,874629,010,920363,828,67472,979,40096,016,400
Current Receipts21,568,759,05522,193,399,38126,765,748,72624,254,214,60025,197,956,600
Non-Revenue Receipts(10,839,981)(56,767,227)(503,436,800)(5,721,200)(5,720,200)
Total Federal Fund22,281,570,94822,765,643,07426,626,140,60024,321,472,80025,288,252,800
Road Fund
Regular Appropriation1,683,417,3001,985,694,5001,882,761,9001,838,084,6001,910,233,700
State Salary and Compensation Allocation
Surplus Expenditure Plan55,504,57261,645,600
Current Year Appropriation2,500,0005,035,600
Continuing Approp-Road Fund531,452,211422,266,201348,283,600
Budget Reduction-Road Fund
Other41,562,845(2,991,839)(56,584,300)
Total Road Fund2,325,818,3282,404,968,8622,241,142,4001,838,084,6001,910,233,700
TOTAL SOURCE OF FUNDS59,559,248,68662,437,678,44167,908,968,80062,311,775,20064,773,967,500
===== PAGE 10 =====
EXPENDITURES BY CLASS
Personnel Costs10,029,501,97910,550,327,15611,582,590,60011,545,034,90012,022,664,500
Operating Expenses4,975,919,4785,423,652,3626,615,633,7007,003,716,9007,457,992,800
Grants Loans Benefits30,752,017,96533,098,022,14137,405,644,90036,134,238,00037,591,515,600
Debt Service973,114,324956,598,0681,329,187,4001,215,578,3001,344,880,400
Capital Outlay944,439,0391,781,857,9371,408,820,500699,123,400769,597,400
Construction1,559,287,4481,436,777,5684,247,403,2001,797,764,9001,864,537,700
TOTAL EXPENDITURES49,234,280,23253,247,235,23162,589,280,30058,395,456,40061,051,188,400
EXPENDITURES BY FUND
SOURCE
General Fund13,656,729,25415,254,089,80317,179,216,20015,121,807,90016,289,615,000
Tobacco Fund126,802,339143,396,920136,804,10085,356,10079,956,100
Restricted Funds11,913,179,17313,567,279,53516,478,956,40017,124,751,40017,603,884,900
Federal Fund21,652,560,02822,401,828,93226,553,161,20024,225,456,40025,167,498,700
Road Fund1,885,009,4381,880,640,0412,241,142,4001,838,084,6001,910,233,700
TOTAL EXPENDITURES49,234,280,23253,247,235,23162,589,280,30058,395,456,40061,051,188,400
EXPENDITURES BY UNIT
General Government2,667,218,5822,925,584,0863,918,328,3003,076,767,0002,983,281,700
Economic Development75,533,99298,620,234241,931,40035,223,20035,488,500
Department of Education6,413,845,3246,310,710,5926,016,202,2006,568,419,0006,717,865,300
Education and Labor715,451,780786,966,821880,835,700855,953,400860,966,900
Energy and Environment321,600,022324,533,733503,028,000510,938,700515,573,900
Finance and Administration819,190,672825,383,3541,240,972,5001,141,447,8001,314,487,700
Health and Family Services21,883,075,83723,900,891,04726,616,051,10026,085,827,90027,474,608,600
Justice and Public Safety1,577,855,1641,567,982,0711,644,432,1001,674,629,7001,717,143,400
Personnel138,856,279130,555,357136,035,800136,963,100137,468,600
Postsecondary Education10,637,252,18911,611,794,46713,725,870,50014,515,989,60015,419,398,700
Public Protection185,188,281209,394,632109,842,700104,267,800105,512,800
Tourism, Arts and Heritage342,241,527339,235,695334,460,800323,405,100325,239,800
Transportation3,151,671,7673,105,867,3976,499,682,7003,365,624,1003,444,152,500
Statewide305,298,8151,109,715,746721,606,500
TOTAL EXPENDITURES49,234,280,23253,247,235,23162,589,280,30058,395,456,40061,051,188,400
===== PAGE 11 ===== ===== PAGE 12 =====
General Government
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,528,382,5001,733,399,4001,889,073,0001,751,141,3001,831,841,500
Budget Reserve119,050,000120,500,000
State Salary and Compensation
Allocation9,547,000116,300206,200
Surplus Expenditure Plan
Special Appropriation67,674,9001,200,0001,200,000
Current Year Appropriation1,282,700
Continuing Approp-General Fund48,504,33919,849,88129,191,500
Reorganization Adjustment1,799,700
Budget Reduction-General Fund(3,674,300)
Mandated Allotments82,914,40054,991,700
Other6,855,233(14,186,374)(9,240,200)
Total General Fund1,746,960,7721,914,420,9072,027,256,2001,751,141,3001,831,841,500
Tobacco Fund
Tobacco Settlement - Phase I41,862,00039,117,10040,111,00031,299,90028,709,600
Continuing Approp-Tob Settlement56,946,51955,422,21422,389,200
Other1,638,8771,289,451
Total Tobacco Fund100,447,39695,828,76562,500,20031,299,90028,709,600
Restricted Funds
Balance Forward337,515,400322,712,797314,160,400246,586,500170,886,000
Current Receipts258,221,860249,528,727253,331,100275,009,300274,646,400
Non-Revenue Receipts60,803,244175,572,40287,360,40081,842,800101,375,100
Fund Transfers(374,200)
Total Restricted Funds656,540,504747,439,726654,851,900603,438,600546,907,500
Federal Fund
Balance Forward912,453,547721,309,874444,219,90011,639,6009,416,400
Current Receipts420,972,321293,636,8181,482,170,300859,550,000709,862,100
Non-Revenue Receipts(36,732,157)(12,618,020)(494,444,100)
Total Federal Fund1,296,693,7121,002,328,6731,431,946,100871,189,600719,278,500
TOTAL SOURCE OF FUNDS3,800,642,3843,760,018,0714,176,554,4003,257,069,4003,126,737,100
EXPENDITURES BY CLASS
Personnel Costs516,018,025535,456,491593,581,700593,330,200605,587,100
Operating Expenses188,560,978180,612,231206,631,500194,957,300193,924,100
Grants Loans Benefits1,811,631,8022,054,322,4302,983,043,9002,164,628,8002,054,622,000
Debt Service136,041,036123,171,777122,539,500111,605,100116,836,000
Capital Outlay14,840,30620,830,23812,531,70012,245,60012,312,500
Construction126,43511,190,919
TOTAL EXPENDITURES2,667,218,5822,925,584,0863,918,328,3003,076,767,0002,983,281,700
===== PAGE 13 =====
EXPENDITURES BY FUND SOURCE
General Fund1,712,981,7671,860,831,1102,027,256,2001,751,141,3001,831,841,500
Tobacco Fund45,025,27073,360,67762,500,20031,299,90028,709,600
Restricted Funds333,827,707433,279,044408,265,400432,552,600411,864,000
Federal Fund575,383,838558,113,2541,420,306,500861,773,200710,866,600
TOTAL EXPENDITURES2,667,218,5822,925,584,0863,918,328,3003,076,767,0002,983,281,700
EXPENDITURES BY UNIT
Office of the Governor7,149,6777,723,9717,058,3007,039,1007,160,000
Office of State Budget Director3,986,8933,793,2694,288,4004,252,6004,268,300
Homeland Security9,503,90516,033,51419,979,40021,890,90020,858,200
Department of Veterans' Affairs102,712,096106,890,525134,151,200142,748,800145,387,400
Kentucky Infrastructure Authority68,706,704102,350,3961,028,665,200450,198,800301,282,100
Military Affairs542,260,271516,722,775165,031,200139,249,700140,016,800
Commission on Human Rights2,397,7482,217,6952,519,1002,435,2002,483,800
Commission on Women
Department for Local Government146,997,727117,022,347257,803,800256,491,600256,636,100
Local Government Economic Assistance Fund38,295,45732,156,99629,567,50027,926,60025,211,700
Local Government Economic Development Fund42,905,47533,574,13021,724,80020,494,70015,059,000
Local Government Regional Development Agency Assistance Fund6,000,0006,000,0006,000,0006,000,0006,000,000
Executive Branch Ethics Commission1,018,6901,153,8011,217,2001,371,3001,396,500
Secretary of State6,092,7425,705,4536,759,7006,564,0006,652,600
Board of Elections7,655,8437,857,1279,714,0009,637,3009,669,400
Registry of Election Finance1,541,6011,565,9151,794,6001,723,6001,757,900
Attorney General141,180,089151,374,943167,809,200176,152,700177,308,100
Unified Prosecutorial System144,481,164153,905,037169,336,100160,512,200164,000,000
Treasury5,537,0086,069,4157,071,4006,785,3006,872,100
Agriculture92,950,121121,338,151115,231,60077,691,30075,621,400
Auditor of Public Accounts19,999,67033,930,19941,062,20036,074,50036,785,500
Personnel Board884,771872,1191,231,1001,034,7001,049,400
Kentucky Public Pensions Authority286,400,055371,800,445375,115,60052,407,50054,022,700
Occupational & Professional30,685,36831,376,48236,390,40038,468,60037,973,700
Boards & Commissions
Kentucky River Authority5,648,3735,074,3356,550,4006,556,7006,573,300
School Facilities Construction Commission138,773,036117,389,800118,813,900105,468,800108,222,200
Teachers' Retirement System747,169,946906,543,4471,099,365,6001,248,665,3001,302,043,300
Judgments1,867,405815,00014,597,300
Appropriations Not Otherwise Classified19,439,82119,963,32616,750,30017,653,30017,653,300
KY Communications Network Authority44,976,92344,363,47352,728,80051,271,90051,316,900
TOTAL EXPENDITURES2,667,218,5822,925,584,0863,918,328,3003,076,767,0002,983,281,700
===== PAGE 14 =====
General Government Office of the Governor
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation6,476,3006,728,4006,872,7006,751,0006,871,900
State Salary and Compensation Allocation217,800
Budget Reduction-General Fund(206,200)
Total General Fund6,694,1006,728,4006,666,5006,751,0006,871,900
Restricted Funds
Balance Forward160,828314,998597,900401,000202,200
Non-Revenue Receipts173,800288,10091,20089,30085,900
Total Restricted Funds334,628603,098689,100490,300288,100
Federal Fund
Balance Forward(40)(68,635)(429,600)
Current Receipts367,352629,435533,300
Total Federal Fund367,312560,800103,700
TOTAL SOURCE OF FUNDS7,396,0407,892,2987,459,3007,241,3007,160,000
EXPENDITURES BY CLASS
Personnel Costs5,945,8496,456,6805,720,2005,317,9005,438,800
Operating Expenses1,134,2021,248,3421,318,1001,721,2001,721,200
Capital Outlay69,62618,95020,000
TOTAL EXPENDITURES7,149,6777,723,9717,058,3007,039,1007,160,000
EXPENDITURES BY FUND SOURCE
General Fund6,694,1006,728,4006,666,5006,751,0006,871,900
Restricted Funds19,6305,187288,100288,100288,100
Federal Fund435,947990,384103,700
TOTAL EXPENDITURES7,149,6777,723,9717,058,3007,039,1007,160,000
EXPENDITURES BY UNIT
Governor5,316,3255,392,9005,548,3005,609,0005,705,300
Governor's Office Expense31,10727,96827,20027,20027,200
Lieutenant Governor1,020,797992,2861,003,1001,014,1001,033,400
Lieutenant Governor's Expense17,37315,63115,10015,10015,100
Secretary of the Cabinet29,82131,61731,60031,60031,600
Kentucky Commission on Military Affairs563,9801,099,547267,200170,100171,900
Faith Based Initiatives85,13782,01282,80085,90087,600
Office of Minority Empowerment85,13782,01283,00086,10087,900
TOTAL EXPENDITURES7,149,6777,723,9717,058,3007,039,1007,160,000
The Governor serves as the chief administrator of the Commonwealth and, in addition to other powers and duties, acts as Commander-in-Chief of all state military forces, makes appointments for vacancies to executive offices and memberships on boards and commissions authorized by statute, and has the power to grant pardons and commutations. As chief administrator of Kentucky, the Governor ensures that state government provides needed services to the citizens of the Commonwealth at minimum cost to the taxpayer. ===== PAGE 15 ===== The Lieutenant Governor is a constitutional officer elected jointly with the Governor. The Lieutenant Governor is to assume the duties and responsibilities of the Office of the Governor should the Governor be impeached or removed from Office, die, fail to qualify, resign, or be unable to discharge the duties of that office. Additional duties of the Lieutenant Governor include serving on various boards and commissions, serving on Kentucky delegations to several interstate compact commissions, and appointing members to various boards. The Secretary of the Executive Cabinet develops and implements the major program decisions for the Executive Branch of government. As part of these duties, the Secretary of the Cabinet oversees the administration of the various cabinets and agencies of state government and coordinates legislative policy for the Governor. This role promotes cooperation and coordination among all agencies and programs of state government. The Military Affairs Commission (KRS 154.12-203) has been a part of the Office of the Governor since 1996. The Commission serves in an advisory capacity to the Governor, the General Assembly, the Kentucky Congressional Delegation, and other appropriate government officials. This commission is designed to support the U.S. military's widespread presence in Kentucky and to recognize its contribution to the economy and well-being of the Commonwealth. Among the installations and operations eligible for support are: Fort Knox, Fort Campbell, Bluegrass Station in Lexington, National Guard and Reserve operations throughout the state, and Bluegrass Army Depot in Richmond. The Office of Minority Empowerment was established in 2005 pursuant to KRS 12.023. The primary purpose of the Office is to help minorities realize full access to their government and be responsive to the needs of Kentucky's minority community. More specifically, the Office is charged with the responsibility of developing policies affecting Kentucky's minority community in the areas of economic empowerment, health care, housing, education, government services, and the criminal justice system. The Office will also maximize economic opportunities for minorities by reviewing state contracts awarded to minority businesses and reviewing job training and technical education initiatives to ensure and enhance the effectiveness of such programs. The constituents served by this office include, but are not limited to, minority individuals as defined and referenced in KRS 12.070, such as Native Americans, Alaskan Natives, African Americans, Hispanics; the disabled community; small-, minority-, and woman-owned businesses; and other underrepresented ethnic groups. The Office for Faith-Based and Community Nonprofit Social Services was established in 2005 pursuant to KRS 12.510. The Office has lead responsibility in the Executive Branch to establish policies, priorities, and objectives for State Government's comprehensive effort to enlist, equip, enable, empower, and expand the work of faith-based and other community organizations to the extent permitted by law. The office is patterned closely with a similar effort at the federal government level begun in 2001. ## Policy The Governor's budget includes additional General Fund in the amount of $99,600 in fiscal year 2027 and $204,200 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. ===== PAGE 16 =====
General Government Office of State Budget Director
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation3,865,6003,976,4004,073,9003,806,6003,884,300
State Salary and Compensation
Allocation144,5009,50013,600 (122,600)
Budget Reduction-General Fund
Total General Fund4,010,1003,985,9003,964,9003,806,6003,884,300
Restricted Funds
Balance Forward568,423678,423788,400637,000363,000
Non-Revenue Receipts110,000110,000110,000110,000110,000
Total Restricted Funds678,423788,423898,400747,000473,000
Federal Fund
Balance Forward906,658,805732,524,353494,437,90062,000
Current Receipts(137,332,501)(225,311,714)
Non-Revenue Receipts(36,732,157)(12,704,269)(494,313,800)
Total Federal Fund732,594,147494,508,371124,10062,000
TOTAL SOURCE OF FUNDS737,282,671499,282,6944,987,4004,615,6004,357,300
EXPENDITURES BY CLASS
Personnel Costs3,644,8603,468,5473,935,1003,889,4003,896,400
Operating Expenses342,033324,722353,300363,200371,900
TOTAL EXPENDITURES3,986,8933,793,2694,288,4004,252,6004,268,300
EXPENDITURES BY FUND SOURCE
General Fund3,917,0993,722,7993,964,9003,806,6003,884,300
Restricted Funds261,400384,000384,000
Federal Fund69,79470,47162,10062,000
TOTAL EXPENDITURES3,986,8933,793,2694,288,4004,252,6004,268,300
EXPENDITURES BY UNIT
Budget & Policy Analysis2,920,6402,740,9093,238,2003,245,9003,236,400
Policy Research406,340400,956405,100387,600396,500
Economic Analysis659,913651,404645,100619,100635,400
TOTAL EXPENDITURES3,986,8933,793,2694,288,4004,252,6004,268,300
The Office of the State Budget Director, created in KRS 11.068, includes the Governor's Office for Policy and Management (GOPM), the Governor's Office for Policy Research (GOPR), and the Governor's Office for Economic Analysis (GOEA). Under the direction of the State Budget Director, these Offices serve as staff to the Governor, the Governor's Chief of Staff, the Secretary of the Cabinet, and the Secretary of the Finance and Administration Cabinet. The Governor's Office for Policy and Management (GOPM) prepares the Executive Budget, the Governor's financial plan for Kentucky state government and submits it to the General Assembly by the tenth legislative day. The preparation of the budget includes the transmittal of information and necessary budget request forms and instructions to state agencies, assisting agencies in the preparation of their budget requests, analyzing the requests, and making recommendations to the Governor. The Governor's budget recommendation is prepared by GOPM and consists of several volumes of detailed financial and programmatic information that transparently presents the Governor's operating and capital budget decisions and provides substantial amounts of historical spending and revenue information. Following enactment of the budget by the General Assembly, GOPM prepares the Budget of the Commonwealth, another multiple set of volumes which compiles the entirety of the Commonwealth's enacted biennial budget. GOPM is also responsible for the budget execution requirements for the Executive branch in accordance with ===== PAGE 17 ===== provisions of KRS chapter 48. The implementation of the Executive branch's capital projects, in accordance with KRS 45.750-800, is assisted by GOPM for all project increases, new project establishments, and associated monthly reporting to the Capital Projects and Bond Oversight Committee. The continuous monitoring of the Commonwealth's financial situation is performed by GOPM in concert with the Governor' Office of Economic Analysis in accordance with KRS 48.400. The Governor's Office for Policy Research (GOPR) performs research and analysis on public policy issues important to the Commonwealth. In accordance with KRS 154.30-030, the Office provides input into the methodology and assumptions used in the independent consultant's reports for the tax increment financing program and for tourism development projects, pursuant to KRS 148.850, and supports the Office of State Budget Director's certification for each project. The Phase I Tobacco Master Settlement Agreement calculations are monitored and prepared by this Office, and GOPR convenes the state agency participants involved in the enforcement mechanisms necessary to stay in compliance with the Settlement Agreement. Expenditure forecasting for several key areas of state government is led or is contributed to by GOPR, including the incarcerated felon population, Medicaid benefit expenditures, and the elementary and secondary education funding formula inputs. The Governor's Office for Economic Analysis (GOEA) assists the State Budget Director and the Consensus Forecasting Group in providing timely and accurate estimates of General Fund and Road Fund receipts used to build and implement the Budget of the Commonwealth. On September 30 of each odd-numbered year, a preliminary detailed estimate of revenues for the next two fiscal years is presented to the head of the budgeting agency for each branch of state government. To inform the Governor and the General Assembly for the biennial budget process, an official estimate is made by December 20 of each odd-numbered year and is presented along with the Governor's Executive Budget recommendation to the General Assembly. In accordance with KRS 48.400, GOEA prepares a Quarterly Economic and Revenue report which provides a forecast of state tax revenues for the next three quarters as well as a forecast of the Commonwealth's economic conditions. The Commonwealth's Tax Expenditure analysis is prepared by GOEA on an annual basis, incorporating the entirety of all statutory tax expenditures with specific computations of the amount of tax revenues foregone. In accordance with KRS 141.020, GOEA reviews the individual income tax reduction conditions each fiscal year and reports whether the statutory conditions have been met. ## Policy The Governor's budget includes additional General Fund in the amount of $62,700 in fiscal year 2027 and $128,700 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. ===== PAGE 18 =====
General Government Homeland Security
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation618,7005,645,9005,658,6007,441,4007,058,700
State Salary and Compensation Allocation26,600
Budget Reduction-General Fund(169,800)
Total General Fund645,3005,645,9005,488,8007,441,4007,058,700
Restricted Funds
Balance Forward5,159,6875,524,7877,699,4006,202,5004,715,300
Current Receipts3,891,4884,189,8803,000,0003,006,9003,014,100
Non-Revenue Receipts45,37143,479
Total Restricted Funds9,096,5469,758,14610,699,4009,209,4007,729,400
Federal Fund
Balance Forward(69,385)(36,740)(168,500)
Current Receipts5,319,4918,250,88310,206,3009,955,4009,983,700
Non-Revenue Receipts(44,100)
Total Federal Fund5,250,1068,214,1439,993,7009,955,4009,983,700
TOTAL SOURCE OF FUNDS14,991,95323,618,18926,181,90026,606,20024,771,800
EXPENDITURES BY CLASS
Personnel Costs2,752,4732,796,2182,806,7003,628,1003,626,800
Operating Expenses2,036,0645,147,3797,714,2008,784,3007,772,900
Grants Loans Benefits4,685,0718,059,1889,325,0009,325,0009,325,000
Capital Outlay30,29730,729133,500153,500133,500
TOTAL EXPENDITURES9,503,90516,033,51419,979,40021,890,90020,858,200
EXPENDITURES BY FUND SOURCE
General Fund645,3005,592,1965,488,8007,441,4007,058,700
Restricted Funds3,571,7592,058,6904,496,9004,494,1003,815,800
Federal Fund5,286,8468,382,6289,993,7009,955,4009,983,700
TOTAL EXPENDITURES9,503,90516,033,51419,979,40021,890,90020,858,200
EXPENDITURES BY UNIT
Office of Homeland Security5,932,1469,026,09510,482,50012,396,80012,042,400
Law Enforcement Protection Program937,172986,7271,125,0001,125,0001,125,000
Commercial Mobile Radio Service2,634,5876,020,6928,371,9008,369,1007,690,800
TOTAL EXPENDITURES9,503,90516,033,51419,979,40021,890,90020,858,200
The Kentucky Office of Homeland Security (KOHS), administratively attached to the Office of the Governor in accordance with KRS 39G.010, was created to coordinate efforts with public and private partners on issues affecting homeland security. KOHS focuses on preparing Kentucky for acts of terrorism. Although the primary role is to serve as the state's administrative liaison with the U.S. Department of Homeland Security, KOHS has initiated a comprehensive prevention-focused homeland security strategy to ensure Kentucky's communities, first responders and families have the resources and information necessary to prepare, respond, mitigate, and recover from acts of terrorism. ===== PAGE 19 ===== The Kentucky 911 Services Board is administratively attached to the Kentucky Office of Homeland Security pursuant to KRS 65.7623, and KOHS maintains responsibility and oversight of the Board's daily operations. The 911 Services Board collects more than $40 million annually in 911 user fees from wireless prepaid, postpaid, and Lifeline subscribers of the approximately 35 telecommunication carriers providing wireless telephone service in Kentucky. These fees are used to fund operations and technology upgrades at Kentucky's 117 Board-certified 911 emergency call centers. ## Policy The base budget includes General Fund of $5,000,000 to complete the Next Generation 911 System, support on-going operational costs and system enhancements. The Next Generation 911 System will deploy statewide 911 call routing including wireless devices. The budget includes additional General Fund in the amount of $1,755,000 in fiscal year 2027 and $1,360,900 in fiscal year 2028 to establish the Kentucky Cyber Resilience Task Force which will enhance the ability to detect, respond to and recover from cyber incidents statewide. The budget also includes additional General Fund in the amount of $200,000 in each fiscal year for the Kentucky Intelligence Fusion Center to provide technology enhancements which increase information sharing capabilities and meet minimum national standards. The Governor's budget includes additional funding in the amount of $34,400 in fiscal year 2027 and $70,500 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 $7,900 and $16,200, respectively. ===== PAGE 20 =====
General Government Veterans' Affairs
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation31,333,50046,058,40039,853,00036,067,10037,556,600
State Salary and Compensation Allocation1,635,800
Budget Reduction-General Fund(1,195,600)
Total General Fund32,969,30046,058,40038,657,40036,067,10037,556,600
Restricted Funds
Balance Forward24,330,76519,713,43525,605,90013,025,1003,871,200
Current Receipts63,332,86473,115,38582,603,00097,227,800104,509,500
Non-Revenue Receipts(254,299)(68,431)10,000
Total Restricted Funds87,409,33192,760,388108,218,900110,252,900108,380,700
Federal Fund
Balance Forward3,061,4921,014,59281,200
Current Receipts305,000300,000300,000
Non-Revenue Receipts86,249(86,200)
Total Federal Fund3,061,4921,100,842300,000300,000300,000
TOTAL SOURCE OF FUNDS123,440,123139,919,630147,176,300146,620,000146,237,300
EXPENDITURES BY CLASS
Personnel Costs82,655,62484,087,922101,289,700111,678,900114,317,500
Operating Expenses12,430,77113,532,35720,820,00020,808,40020,808,400
Grants Loans Benefits6,282,3458,447,01911,803,50010,023,50010,023,500
Debt Service616,500
Capital Outlay1,343,357206,728238,000238,000238,000
TOTAL EXPENDITURES102,712,096106,890,525134,151,200142,748,800145,387,400
EXPENDITURES BY FUND SOURCE
General Fund32,969,30038,716,43038,657,40036,067,10037,556,600
Restricted Funds67,695,89667,154,52495,193,800106,381,700107,530,800
Federal Fund2,046,9001,019,571300,000300,000300,000
TOTAL EXPENDITURES102,712,096106,890,525134,151,200142,748,800145,387,400
EXPENDITURES BY UNIT
Kentucky Veterans' Centers93,118,37196,629,670121,798,400131,799,300134,271,300
Veterans Cemeteries3,600,3073,632,7724,653,1004,520,3004,593,300
Veterans Services5,993,4196,628,0847,699,7006,429,2006,522,800
TOTAL EXPENDITURES102,712,096106,890,525134,151,200142,748,800145,387,400
The Kentucky Department of Veterans' Affairs (KDVA) is established by KRS 40.300. Pursuant to KRS 40.317, KDVA assists over 295,000 Kentucky veterans and their families in applying for federal, state, and local veteran's benefits. Services include: benefits counseling and claims processing regarding the existence or availability of educational, training, and retraining facilities; health, medical rehabilitation, and housing services and facilities; employment and reemployment services; and provision of services under federal, state, and local laws affording rights, privileges, and benefits to eligible veterans and their dependents. These services are supported by a cooperative network of veterans' benefits field representatives, volunteers, and personal service contracts with major veterans' organizations. ===== PAGE 21 ===== Pursuant to KRS 40.325, the Office of Kentucky Veterans' Centers within the KDVA manages Kentucky's four state veterans' nursing homes, with a fifth under construction, to serve the long-term nursing care needs of Kentucky's elderly veteran population. The Thomson-Hood Veterans' Center, located in Wilmore in Jessamine County, is a 285-bed long-term nursing care facility opened in 1991 specifically for Kentucky's elderly veteran population. The Eastern Kentucky Veterans' Center is a 120-bed facility located in Hazard (Perry County) and the Western Kentucky Veterans' Center is a 120-bed facility in Hanson (Hopkins County), both opened in 2002 and include in-house physician care, nurse practitioners, 24-hour nursing staff, and staffing for a rehab therapy department, barbershop, library, gift shop, laundry facility, and a dietary department. In April 2013, KDVA opened a 36-bed expansion at the Western Kentucky Veterans' Center that utilizes the "Community Living Center (CLC) Concept" required by the federal Veterans' Administration. Three 12-bed buildings provide a more personalized care for its residents and brings the total capacity to 156 beds. In July 2017, a fourth 120-bed Veterans' Center, in Hardin County, the Carl M. Brashear Radcliff Veterans Center opened utilizing the Community Living Center Concept. The Robert E. Spiller Bowling Green Veterans Center, the Commonwealth's fifth state veterans home, is a 60-bed CLC model currently under construction. It is expected to begin admitting veterans in early 2026. The KDVA is required by KRS 40.315 to establish and maintain Kentucky state veterans' cemeteries. The Kentucky Veterans' Cemetery-West is located on Highway 41A south of Hopkinsville. The Veterans' Cemetery-Central in Radcliff opened in June 2007. The Veterans' Cemetery-North near Williamstown opened in early fiscal year 2009. The Veterans' Cemetery-Northeast in Greenup County opened in the fall of 2010. The Veterans' Cemetery-Southeast in Leslie County opened in April 2018. Each facility includes an administration building, a maintenance building with service area, committal facility, a columbarium, appropriate parking, road network, walking path and landscaping. KRS 40.600 established the Women Veterans Program to ensure Kentucky women veterans have equitable access to federal and state veterans' services and benefits. KRS 40.350 established the Wounded or Disabled Veterans Program to assist wounded or disabled veterans in the transition from active service and ensure they receive the federal, state and private benefits to which they are entitled as wounded or disabled veterans. KRS 40.312 established the Kentucky Service Members, Veterans, and their Families Suicide Prevention Program to raise awareness of and reduce death by suicide within the population of service members, veterans, and their families. ## Policy The General Fund base budget in each fiscal year includes: $93,700 for grants to the Brain Injury Association of America, Kentucky Chapter and $93,700 for grants to the Epilepsy Foundation for Kentucky. $187,500 for grants to Veterans' Service Organization programs. $200,000 for the Homeless Veterans Programs. $320,000 each fiscal year to support interment costs for veterans of the National Guard and Reserves, and eligible family members. $152,000 each fiscal year to support military funeral honors for veterans. The Governor's budget includes additional funding in the amount of $1,191,700 in fiscal year 2027 and $2,446,900 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 $500,500 and $1,027,700, respectively. The Governor's budget includes additional Restricted Funds in the amount of $5,110,800 in fiscal year 2027 and $5,488,400 in fiscal year 2028 for additional staffing at Thomson-Hood Veterans Center to increase projected census to 154 by the end of fiscal year 2028. The Governor's budget includes additional Restricted Funds in the amount of $6,397,400 in fiscal year 2027 and $6,778,600 in fiscal year 2028 for additional staffing at Western Kentucky Veterans Center to increase projected census to 124 by end of fiscal year 2028. ===== PAGE 22 =====
General Government
Kentucky Infrastructure Authority
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation4,260,60022,254,0001,940,7001,772,0001,789,600
Budget Reserve800,000
State Salary and Compensation
Allocation11,5009001,800
Continuing Approp-General Fund13,085,500
Budget Reduction-General Fund(58,300)
Total General Fund4,272,10023,054,90014,969,7001,772,0001,789,600
Restricted Funds
Balance Forward1,338,906532,759403,200
Current Receipts32,06317,81820,00020,00020,000
Non-Revenue Receipts(352,976)597,4785,396,5008,355,20010,894,300
Total Restricted Funds1,017,9931,148,0555,819,7008,375,20010,914,300
Federal Fund
Balance Forward(793,311)(1,322,487)(5,000,800)
Current Receipts63,420,19388,053,1741,012,876,600440,051,600288,578,200
Total Federal Fund62,626,88386,730,6871,007,875,800440,051,600288,578,200
TOTAL SOURCE OF FUNDS67,916,976110,933,6421,028,665,200450,198,800301,282,100
EXPENDITURES BY CLASS
Personnel Costs3,780,6655,037,6535,845,6005,784,9005,904,500
Operating Expenses709,253862,979614,100644,600644,600
Grants Loans Benefits61,881,78691,183,9581,022,205,500441,283,300289,761,000
Debt Service2,335,000340,5002,486,0004,972,000
Capital Outlay22,724
Construction4,902,582
TOTAL EXPENDITURES68,706,704102,350,3961,028,665,200450,198,800301,282,100
EXPENDITURES BY FUND SOURCE
General Fund4,272,1009,873,98814,969,7001,772,0001,789,600
Restricted Funds485,235744,9215,819,7008,375,20010,914,300
Federal Fund63,949,36991,731,4871,007,875,800440,051,600288,578,200
TOTAL EXPENDITURES68,706,704102,350,3961,028,665,200450,198,800301,282,100
EXPENDITURES BY UNIT
Kentucky Infrastructure Authority66,258,14692,400,509155,648,700196,693,80050,513,900
Broadband Development2,448,5589,949,887873,016,500253,505,000250,768,200
TOTAL EXPENDITURES68,706,704102,350,3961,028,665,200450,198,800301,282,100
===== PAGE 23 ===== The Kentucky Infrastructure Authority (KIA) pursuant to KRS Chapter 224A funds the acquisition and construction of infrastructure projects as defined in KRS 224A.011(23) and owned by governmental agencies. The Authority also coordinates regional infrastructure planning to promote higher levels of technical, managerial and financial capacity of water based utilities. The Authority with the assistance of the Area Development Districts coordinates water and wastewater planning by the Area Water Management Councils. The Councils establish water planning areas, develop and maintain the regional water management plan and identify and prioritize water and wastewater projects, and provide system and project information to the Water Resource Information System (WRIS). KIA is responsible to operate, maintain and update the information database (Water Resource Information System) for statewide water and wastewater planning in accordance with KRS 224A.300. This database tracks, maps, and houses infrastructure project details for regional planning efforts and for utilities that are seeking funding. The Authority is administratively attached to the Department for Local Government. KIA is the administrator for the US EPA's Clean Water and Drinking Water State Revolving Funds, and Commonwealth funded revolving loan and grant programs, and state appropriated line-item funding for various water and wastewater projects. Infrastructure funding substantially improves human and environmental factors and supports economic growth. For the federal programs, priority is given to projects to correct enforcement issues, consolidation or regionalization of facilities, and underserved/unserved areas of the Commonwealth. The Authority is administratively attached to the Department for Local Government. The agency is authorized to issues notes and bonds to provide infrastructure financing for governmental agencies and to a limited extent investor-owned private utilities. The provisions of KRS 224A.165 dictate certain limits on the amount of notes and bonds the Authority can have outstanding. The purpose of the loans is to assist in financing the construction of infrastructure projects. The Authority also provides grants and subsidized loan incentives. The following provides a description of the Authority's programs: Fund A Clean Water State Revolving Fund (Base, Supplemental, and Emerging Contaminants) – Is a 20 or 30 year loan program for planning, design and construction of wastewater infrastructure projects, storm water projects and nonpoint source projects. Fund A also provides assistance to small communities in financing the preliminary costs prior to construction, commonly referred to as a Planning and Design loan. Planning and Design loans have a 5 year term and are set at the standard interest rate, and may be rolled into a subsequent construction loan. Fund F Drinking Water State Revolving Loan Fund (Base, Supplemental, Lead Service Line Replacement, and Emerging Contaminants) – Is a 20 or 30 year loan program for planning, design and construction of water infrastructure projects that qualify under EPA requirements. Projects must be recommended by the Kentucky Division of Water in the Energy and Environment Cabinet from the Project Priority List and must be financially feasible as determined by KIA staff. Fund B Infrastructure Revolving Fund – Is a low-interest state funded loan program that provides for construction or acquisition of infrastructure projects including water and wastewater. Loans are made to governmental entities that are unable to wholly finance a project through other public grant or loan programs, through commercial credit at reasonable rates, or from their own resources. The loans are offered at or below market interest rates for a term not to exceed 30 years. Grants are available, but are reserved for borrowers facing both a financial hardship and an extreme health hazard. Fund B 2020 Program – This fund provides financing primarily for, but not limited to, water service projects. The fund promotes the merger and consolidation of systems, and encourages the increased financial, managerial, and technical capacity of systems to provide service. Fund C Governmental Agencies Program – This program provides access to local governmental for funding at better terms than could be obtained on an independent basis. Loans are available at terms of up to thirty years for any eligible infrastructure project owned by governmental entities in the Commonwealth. Infrastructure for Economic Development Funds – These funds were authorized by the 2006 and 2008 General Assembly for an array of water and sewer projects included in the Commonwealth budget by specific designation. The Authority coordinates the implementation process and provides project administration for the projects funded in these programs. Local Government Economic Development Fund – (Coal Severance Tax Projects) – These funds were authorized by the 2014 General Assembly from the respective single county fund for projects in coal-producing counties. The Authority coordinates the process of implementation and provides project administration for the water and sewer related projects funded in this program. The program is administered jointly with the Department for Local Government. Cleaner Water Program Fund – This program was funded by federal appropriation through the American Rescue Plan Act (ARPA). Funds were made available to utilities within counties, based on county population through appropriations in the 2021 and 2022 sessions of the General Assembly. Funding must be fully expended by recipients by December 31, 2026. ===== PAGE 24 ===== KY WWATERS Fund – The Kentucky Water and Wastewater Assistance for Troubled or Economically Restrained Systems program was funded in the 2024 Session of the General Assembly to assist utilities with financial challenges. Qualifying events are specified in statute. Projects submitted by utilities will be scored and ranked by the Authority. Funding commitments will be made by the General Assembly. The Broadband Deployment Fund was established in 2020 and the Office of Broadband Development was created in 2022 as the central broadband planning and coordination entity to encourage, foster, develop, and improve broadband within the Commonwealth. The Office aims to improve broadband accessibility for unserved and underserved communities and populations, drive job creation, promote innovation, and expand markets for Kentucky businesses and industries, and serve the needs of Kentucky's agricultural, educational, health care, and public safety systems, governmental operations, and citizens. The Broadband Deployment Fund received $300 million federal funds through the American Rescue Plan Act (ARPA) to award grants from internet service providers and local governments to construct broadband infrastructure and bring high-speed internet to unserved and underserved homes and businesses. Funds were awarded to internet service providers to construct broadband infrastructure and must be fully expended by recipients by December 31, 2026. The Broadband Deployment Fund received a $5 million Planning Fund grant in 2023 for the Broadband Equity, Access, and Deployment program (BEAD) to support planning and mapping efforts and building the capacity of the Office through 2027. The Planning funds will finance the required activities necessary for Kentucky to access the $1.086 billion allocated to Kentucky to achieve universal access to high-speed internet by funding broadband deployment. ## Policy The budget includes Federal Funds appropriation in the amount of $75,502,000 in fiscal year 2027 and $20,223,000 in fiscal year 2028 to support the Clean Water State Revolving Fund and $109,906,000 in fiscal year 2027 and $18,294,000 in fiscal year 2028 to support the Drinking Water State Revolving Fund. The budget includes Restricted Funds appropriation in the amount of $2,486,000 in fiscal year 2027 and $4,972,000 in fiscal year 2028 to support bonds included in the capital budget. ===== PAGE 25 =====
General Government Military Affairs
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation17,765,30034,327,50034,897,30029,493,10029,856,700
State Salary and Compensation
Allocation436,70038,30062,900
Continuing Approp.-General Fund4,437,2094,428,604
Budget Reduction-General Fund(913,800)
Mandated Allotments82,644,00049,192,900
Total General Fund105,283,20987,987,30434,046,40029,493,10029,856,700
Restricted Funds
Balance Forward144,361,391109,139,96354,663,00027,469,90021,744,400
Current Receipts38,387,63720,530,33818,389,20018,427,50017,757,600
Non-Revenue Receipts(19,016,091)27,057,748(2,921,900)(2,703,500)(2,702,800)
Total Restricted Funds163,732,936156,728,04970,130,30043,193,90036,799,200
Federal Fund
Balance Forward(15,189,433)(23,611,992)(52,533,400)
Current Receipts378,439,355300,026,670140,857,80088,307,10088,806,100
Total Federal Fund363,249,922276,414,67888,324,40088,307,10088,806,100
TOTAL SOURCE OF FUNDS632,266,068521,130,031192,501,100160,994,100155,462,000
EXPENDITURES BY CLASS
Personnel Costs66,658,08844,555,83947,353,80046,206,00046,973,200
Operating Expenses75,036,17558,409,20135,514,80034,639,10034,639,100
Grants Loans Benefits388,182,965394,121,50172,419,00048,632,70048,632,600
Debt Service1,879,6682,110,30365,00065,00065,000
Capital Outlay10,500,69117,521,6359,678,6009,706,9009,706,900
Construction2,6854,297
TOTAL EXPENDITURES542,260,271516,722,775165,031,200139,249,700140,016,800
EXPENDITURES BY FUND SOURCE
General Fund100,805,38385,709,64634,046,40029,493,10029,856,700
Restricted Funds54,592,974102,065,09842,660,40021,449,50021,566,600
Federal Fund386,861,914328,948,03188,324,40088,307,10088,593,500
TOTAL EXPENDITURES542,260,271516,722,775165,031,200139,249,700140,016,800
EXPENDITURES BY UNIT
Statutory State Operations4,614,3615,248,1165,919,9005,207,1005,090,200
FEMA Disaster Grants343,075,605303,888,51937,119,60037,121,80037,183,600
Emergency Management Operations40,245,26930,681,02232,482,40032,259,80032,520,400
National Guard Operations329,810540,000200,000200,000200,000
NG Public Safety Operations NGE1,608,1902,186,1012,434,4002,389,4002,389,400
Emergency & Public Safety Operations61,276,42131,287,2991,947,6001,910,0001,910,000
Self-Sustaining, Semi-Commercial Operations23,757,33914,217,05514,388,20014,404,50014,486,200
EKY SAFE Fund17,342,44644,118,9105,557,800
SAFE 486029,499,81217,915,200
===== PAGE 26 =====
SAFE Fund7,577,75410,803,341299,200
Youth Challenge10,394,44711,223,40011,904,50012,003,40012,077,300
Federal & Grant Operations32,038,63033,029,20034,862,40033,753,70034,159,700
TOTAL EXPENDITURES542,260,271516,722,775165,031,200139,249,700140,016,800
The Department of Military Affairs is responsible for all military matters and disaster and emergency service coordination in the Commonwealth. The Governor is constitutional Commander-in-Chief of the Kentucky National Guard and appoints the Adjutant General. The Adjutant General commands the Kentucky National Guard and directs and coordinates all programs in the Department. Units of the Kentucky National Guard may be called to duty by the Governor in the event of civil strife or disorder or the occurrence of natural or man-made disasters. The Department has the responsibility for organizing, equipping, training, and housing these units. Pursuant to KRS 36.010 and KRS Chapter 39A, the Department consists of the following organizational units: The Division of Emergency Management; and the Office of Management and Administration, which contains the Division of Administrative Services, Division of Facilities, Bluegrass Station Division, and the Youth Challenge Program. The Division of Emergency Management is responsible for all aspects of emergency management including planning, assessment, mitigation, response, and recovery in the Commonwealth. The Division works with local emergency management programs to maintain a coordinated program and operates field offices across the state. The Emergency Operations Center in Frankfort is the hub for coordination during an emergency and is operated by the Division. The Center operates on a twenty-four hour basis and serves as a warning point, communications and command center. The Division of Facilities is responsible for maintaining nearly 50 armories across the state as well as the facilities at Wendell H. Ford Regional Training Center in Muhlenberg County, the Emergency Operations Center in Frankfort, and various other facilities statewide. The Department also operates Bluegrass Station in Fayette County, formerly the AVON Army Depot. The property was acquired by the Commonwealth in 1989 under the Base Re-alignment and Closure Act. This 780 acre facility includes more than 2.4 million square feet and houses 22 tenants that employ over 2,200 Kentuckians. Bluegrass Station is a state-owned industrial complex that supports global logistics contracts for the Department of Defense (DOD) and Homeland Security (DOHS). It is known in the DOD and DOHS communities for its flexibility to build and modify mission specific facilities efficiently and rapidly. The Youth Challenge Program is a 22-week residential development and training program for youth between 16 – 18 years of age who are high school dropouts, drug-free, unemployed and free of serious involvement in the criminal justice system. The program is operated by the Kentucky National Guard and is located in Hardin and Harlan Counties. ## Policy The Governor's budget includes additional funding in the amount of $565,900 in fiscal year 2027 and $1,162,700 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 $237,700 and $488,300, respectively. ===== PAGE 27 =====
General Government Commission on Human Rights
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,971,9002,065,2002,127,9001,980,2002,028,800
State Salary and Compensation Allocation71,800
Budget Reduction-General Fund(63,800)
Total General Fund2,043,7002,065,2002,064,1001,980,2002,028,800
Restricted Funds
Balance Forward18,57819,21519,20019,20019,200
Current Receipts68610010,00010,00010,000
Total Restricted Funds19,26519,31529,20029,20029,200
Federal Fund
Balance Forward676,873482,758796,300451,300181,300
Current Receipts159,925466,017100,000175,000263,700
Total Federal Fund836,798948,774896,300626,300445,000
TOTAL SOURCE OF FUNDS2,899,7623,033,2892,989,6002,635,7002,503,000
EXPENDITURES BY CLASS
Personnel Costs2,157,8091,961,4122,202,5002,135,4002,184,000
Operating Expenses218,838255,952316,600299,800299,800
Grants Loans Benefits330
Capital Outlay21,101
TOTAL EXPENDITURES2,397,7482,217,6952,519,1002,435,2002,483,800
EXPENDITURES BY FUND SOURCE
General Fund2,043,6592,065,0822,064,1001,980,2002,028,800
Restricted Funds5012710,00010,00010,000
Federal Fund354,040152,485445,000445,000445,000
TOTAL EXPENDITURES2,397,7482,217,6952,519,1002,435,2002,483,800
EXPENDITURES BY UNIT
General Administration and Support772,750797,225990,400925,200941,700
Enforcement Branch683,109553,749668,700658,700673,100
Research and Information369,392179,971352,200355,200362,100
Legal Affairs572,497686,750507,800496,100506,900
TOTAL EXPENDITURES2,397,7482,217,6952,519,1002,435,2002,483,800
The Commission on Human Rights is the sole state civil rights enforcement agency in Kentucky, and is charged to “…safeguard all individuals within the state from discrimination.” Pursuant to KRS Chapter 344, the Commission investigates, litigates, and administratively decides complaints of discrimination in the areas of employment, public accommodation, housing, and credit based on race, religion, national origin, age, disability, sex, smoking in employment, and familial status for housing decisions. The Commission has four service units: General Administration and Support, Enforcement, Research and Information, and Legal Affairs. General Administration and Support performs personnel and fiscal activities and serves as a liaison with the Governor's Office, legislators, and other agencies in state government. This unit is responsible for development of internal policy directives and legislative initiatives. ===== PAGE 28 ===== The Enforcement Branch consists of two sections: Employment/Public Accommodations and Housing. Employees assigned to these sections receive, investigate, and conciliate complaints of discrimination in the areas of employment, public accommodation, credit transactions, and housing. The Research and Information Branch provides technical assistance and education to local citizen groups, employers, public accommodations staff, educational institutions, local human rights commissions, and government officials. The staff conducts seminars and workshops on sexual harassment, the Kentucky Civil Rights Act, cultural diversity, and the Americans with Disabilities Act. The Legal Affairs Branch litigates discrimination cases before administrative hearing officers, provides legal advice to inquiries, sworn complaints, and file closures. The legal staff takes depositions of witnesses, prepares legal briefs and appeals, and serves as in-house counsel. ## Policy The Governor's budget includes additional General Fund in the amount of $35,500 in fiscal year 2027 and $73,000 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. ===== PAGE 29 =====
General Government Department for Local Government
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation83,969,80012,847,60012,761,80010,278,10012,395,100
State Salary and Compensation Allocation194,8006,4009,500
Special Appropriation2,000,000
Continuing Approp.-General Fund25,000,000
Budget Reduction-General Fund(383,100)
Total General Fund111,164,60012,854,00012,388,20010,278,10012,395,100
Restricted Funds
Balance Forward3,593,1333,400,4713,737,1002,906,600439,700
Current Receipts916,9652,352,836773,600777,000780,200
Non-Revenue Receipts54,501,0051,385,000482,800499,900
Total Restricted Funds4,510,09860,254,3125,895,7004,166,4001,719,800
Federal Fund
Balance Forward2,910,7881,734,231(4,083,000)841,100
Current Receipts43,427,17943,018,797247,350,600241,645,700242,521,200
Total Federal Fund46,337,96744,753,028243,267,600242,486,800242,521,200
TOTAL SOURCE OF FUNDS162,012,664117,861,340261,551,500256,931,300256,636,100
EXPENDITURES BY CLASS
Personnel Costs6,543,7366,712,9368,942,1008,872,6009,028,300
Operating Expenses2,072,5721,981,6953,813,3003,474,1003,462,900
Grants Loans Benefits137,728,920101,983,716245,048,400244,144,900244,144,900
Debt Service652,500244,000
Construction6,100,000
TOTAL EXPENDITURES146,997,727117,022,347257,803,800256,491,600256,636,100
EXPENDITURES BY FUND SOURCE
General Fund101,284,36511,668,86212,388,20010,278,10012,395,100
Restricted Funds1,109,62656,517,3062,989,1003,726,7001,719,800
Federal Fund44,603,73648,836,178242,426,500242,486,800242,521,200
TOTAL EXPENDITURES146,997,727117,022,347257,803,800256,491,600256,636,100
EXPENDITURES BY UNIT
Operations69,055,8035,455,4106,714,3006,284,0006,356,000
Grants77,941,924111,566,937251,089,500250,207,600250,280,100
TOTAL EXPENDITURES146,997,727117,022,347257,803,800256,491,600256,636,100
The Department for Local Government (DLG), pursuant to KRS 147A.002, is an independent agency attached to the Office of the Governor. As the liaison between the Governor and local units of government, DLG coordinates and resolves local government issues and concerns, fulfills statutory obligations of the State Local Finance Officer and the State Local Debt Officer, and administers federal and state grants-in-aid. The Commissioner's Office formulates policy that governs programs administered by the Department. The office also serves as a liaison with state and federal agencies that deal with each of the Kentucky's 120 counties, 411 cities, 2,013 special districts and the 15 Area Development Districts. ===== PAGE 30 ===== The Office of Federal Grants administers the Community Development Block Grant (CDBG) program (including the CDBG - Disaster Recovery, the Recovery Housing program, and the PRICE program), Appalachian Regional Commission, Delta Regional Authority, the Land and Water Conservation Fund, and the Kentucky Recreational Trails program. The office maintains the Commonwealth's Clearinghouse for all federal grants and is responsible for disseminating information to local governments regarding program purposes and eligibility, evaluating applications for need and eligibility, and making recommendations to the commissioner or appropriate board for funding. The office also prepares grant agreements, disperses funds, reviews program records for compliance, provides technical assistance, and ensures program close out. The Office Field Services supports the Governor's mission to deliver good government to all constituents across the state. Field service representatives travel throughout the Commonwealth of Kentucky and answer citizens' questions, resolve problems, and aid local government officials with their government duties. The Office of Financial Management and Administration provides agency administrative support. It has the responsibility for personnel administration, payroll, purchasing, library management, accounting, and budgeting for the entire agency. The Office provides information technology support for the Department and to local government units. Within the Office of Financial Management and Administration are the: Counties Branch: Relates to the statutory obligations of the State Local Finance Officer and the State Local Debt Officer. The branch annually certifies property tax rates for counties, Local Officials training hours, and the annual cost of living adjustment for all constitutional officers. Cities and Special Districts Branch: Provides technical assistance to cities and special districts throughout the Commonwealth so that those municipalities can meet their statutory obligations on ethics ordinances, audits, budgets, Uniform Financial Information Reports (UFIRs), annexations, etc. Additionally, all Special Purpose Governmental Entity reporting is processed through the Branch. The Office of State Grants promotes economic development in Kentucky's localities. It is responsible for financial management, accounting, and fund allocation and reporting of the Local Government Economic Development Fund (LGEDF) and the Local Government Economic Assistance Fund (LGEAF). The agency also reviews and approves LGEDF statutory grant applications; and administers the Regional Development Agency Assistance program, Flood Control Local Match Participation program, Area Development funds, Joint Funding Administration program, and administers line item projects identified in the Enacted Budget. The Office of Legal Services provides technical and compliance assistance to local government officials regarding various federal and state laws and assists local governments with a broad range of administrative and legal matters, including finance, budget preparation, procurement and surplus property, debts, interlocal cooperation agreements, ethics, conflicts of interest, administrative and personnel policies, roads and road aid, and annexation. The Office of Legal Services is also available to advise local governments concerning the various legal requirements of the state and federal grant programs administered by the department. The Office of Legal Services serves as legal counsel for the State Local Finance Officer/Debt Officer (SLDO/SLFO) and assists the SLDO/SLFO in performing his or her statutory duties. ## Policy The base budget includes Restricted Funds in the amount of $500,000 in each fiscal year to the Kentucky Mountain Regional Recreation Authority to increase economic development, tourism, and outdoor recreation for residents and visitors. The funds are from the statewide transient room taxes collected pursuant to KRS 142.400(2). The base budget in each fiscal year includes General Fund for the following: $3,984,000 for the Joint Funding Administration Program in support of the area development districts $257,800 for the support of the Mary Kendall Homes $257,800 for the support of Gateway Juvenile Diversion $250,000 for Area Development Districts to match increased Appalachian Regional Commission grants. $250,000 for Area Development Districts to match increased Delta Regional Authority grants. ===== PAGE 31 =====
General Government Local Government Economic Assistance Fund
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS General Fund
Regular Appropriation35,214,20037,228,20031,983,90027,926,60025,211,700
Other3,081,257(5,071,204)(2,416,400)
Total General Fund38,295,45732,156,99629,567,50027,926,60025,211,700
TOTAL SOURCE OF FUNDS38,295,45732,156,99629,567,50027,926,60025,211,700
EXPENDITURES BY CLASS
Grants Loans Benefits38,295,45732,156,99629,567,50027,926,60025,211,700
TOTAL EXPENDITURES38,295,45732,156,99629,567,50027,926,60025,211,700
EXPENDITURES BY FUND SOURCE
General Fund38,295,45732,156,99629,567,50027,926,60025,211,700
TOTAL EXPENDITURES38,295,45732,156,99629,567,50027,926,60025,211,700
EXPENDITURES BY UNIT
County Coal Severance16,506,29912,950,0228,379,5007,905,1005,808,500
Cities Coal Severance1,828,1911,438,891931,100878,300645,400
County Mineral Severance18,008,01915,553,46418,231,20017,228,90016,882,000
Cities Mineral Severance1,952,9492,214,6192,025,7001,914,3001,875,800
TOTAL EXPENDITURES38,295,45732,156,99629,567,50027,926,60025,211,700
The Local Government Economic Assistance Fund (LGEAF) in KRS 42.450-42.495 is a revenue sharing program that was created by the 1980 Regular Session of the General Assembly to return a portion of the coal and minerals severance taxes to local governments in areas where the minerals were extracted. These funds are used by those communities to strengthen and "to improve the environment for new industry and to improve the quality of life of the residents." Counties that contain industries involved in the production of coal or minerals such as natural gas, oil, and stone and incorporated cities within those counties are eligible to receive LGEAF payments. Likewise, counties and their cities affected by the transportation of coal are eligible to receive a portion of the returned severance taxes. The LGEAF program is funded from 50 percent of minerals taxes (oil, natural gas, and other minerals) and a share of coal severance tax receipts. The portion of the program funded from coal severance funds currently returns funds to an estimated 22 counties and 60 cities at the end of each fiscal quarter. While Kentucky statute directs that 15 percent of the coal severance tax receipts to the LGEAF, recent appropriation bills have authorized that 30 percent of coal severance tax receipts are transferred to the LGEAF to be distributed to local governments. Quarterly allocations are made to localities according to such criteria as population, income, the amount and distance coal is transported over local areas, and coal severance taxes collected from producers in the county. The LGEAF minerals severance tax program currently returns funds to an estimated 99 counties and approximately 254 cities. Quarterly allocations are made to localities according to taxes collected from producers in the county. ===== PAGE 32 ===== KRS 42.455(2)(3)(4) governs the allowable uses of LGEAF funds and specifically prohibits the expenditure of LGEAF for the expenses related to the administration of government. Kentucky statute directs that coal "impact" counties must expend 100 percent of funds in the transportation category in accordance with KRS 42.470(1)(c), and that thirty percent of all funds given to coal "producer" counties must be expended on the county coal haul road system. The remaining 70 percent of the fund shall be spent on priority categories limited to the following but in no event shall grants obtained under this program be used for expenses related to administration of government: Public safety, including law enforcement, fire protection, ambulance service and other related services. • Environmental protection, including sewage disposal, sanitation, solid waste and other related programs, Public transportation, including mass transit systems, streets and roads. • Health. • Recreation. • Libraries and educational facilities, • Services for the poor, aged, and handicapped. • Industrial and economic development. • Vocational education: • Workforce training; and • Secondary wood industry development. ## Policy The budget suspends KRS 42.470(1)(a) suspending the statutory severance allocations formula and directs 70 percent of moneys in the Local Government Economic Assistance Fund to be distributed to each coal producing county on the basis of the ratio of coal severed in each respective county to the coal severed statewide. It also suspends KRS 42.470(1)(c), so that no allocation shall be distributed to non-coal producing counties and suspends KRS 42.455(2) so that no funds appropriated to the Local Government Economic Assistance Fund are required to be spent on the coal haul road system. Before allocations to either Local Government Economic Assistance Fund or Local Government Economic Development Fund, a number of specified uses of General Fund coal severance tax revenues are outlined as follows: 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. ===== PAGE 33 =====
General Government Local Government Economic Development Fund
Local Government FY 2024Real Estate Government Fund
Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation39,816,60042,689,30028,548,60020,494,70015,059,000
Other2,963,875(9,115,170)(6,823,800)
Total General Fund42,780,47533,574,13021,724,80020,494,70015,059,000
Restricted Funds
Non-Revenue Receipts125,000
Total Restricted Funds125,000
TOTAL SOURCE OF FUNDS42,905,47533,574,13021,724,80020,494,70015,059,000
EXPENDITURES BY CLASS
Grants Loans Benefits42,905,47533,574,13021,724,80020,494,70015,059,000
TOTAL EXPENDITURES42,905,47533,574,13021,724,80020,494,70015,059,000
EXPENDITURES BY FUND SOURCE
General Fund42,780,47533,574,13021,724,80020,494,70015,059,000
Restricted Funds125,000
TOTAL EXPENDITURES42,905,47533,574,13021,724,80020,494,70015,059,000
EXPENDITURES BY UNIT
Economic Development Fund42,905,47533,574,13021,724,80020,494,70015,059,000
TOTAL EXPENDITURES42,905,47533,574,13021,724,80020,494,70015,059,000
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. ===== PAGE 34 =====
Severance Tax Dedicated Programs 2026-2028 Biennium Using Consensus Forecast Estimate
FY 2026 RevisedFY 2027 RecommendedFY 2028 Recommended
Coal Severance Tax Resources
Coal Severance Tax49,804,80047,695,60038,969,200
Less: DLG LGEDF Admin cost(669,700)(669,700)(669,700)
Less: Debt Service (Past Bond Appropriations)(18,099,700)(17,747,700)(16,786,600)
Total coal severance tax resources to be distributed31,035,40029,278,20021,512,900
Local Government Economic Assistance Fund (LGEAF) Total Funds
Coal Severance Tax Revenue9,310,6008,783,4006,453,900
Other Mineral Severance Tax Revenue20,256,90019,143,20018,757,800
Total LGEAF29,567,50027,926,60025,211,700
Local Government Economic Development Fund (LGEDF)
Coal Severance Tax Revenue21,724,80020,494,70015,059,000
Total LGEDF21,724,80020,494,70015,059,000
===== PAGE 35 =====
General Government Regional Development Agency Assistance Fund
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward11
Current Receipts6,000,0006,000,0006,000,0006,000,0006,000,000
Total Restricted Funds6,000,0016,000,0016,000,0006,000,0006,000,000
TOTAL SOURCE OF FUNDS6,000,0016,000,0016,000,0006,000,0006,000,000
EXPENDITURES BY CLASS
Personnel Costs6,000,0006,000,0006,000,0006,000,0006,000,000
TOTAL EXPENDITURES6,000,0006,000,0006,000,0006,000,0006,000,000
EXPENDITURES BY FUND SOURCE
Restricted Funds6,000,0006,000,0006,000,0006,000,0006,000,000
TOTAL EXPENDITURES6,000,0006,000,0006,000,0006,000,0006,000,000
EXPENDITURES BY UNIT
Regional Development Agency Assistance Fund6,000,0006,000,0006,000,0006,000,0006,000,000
TOTAL EXPENDITURES6,000,0006,000,0006,000,0006,000,0006,000,000
The Regional Development Agency Assistance Fund receives $6 million each year from the Tennessee Valley Authority in-lieu-of payment and is administered by the Department for Local Government for the purpose of providing funding to agencies that are designated to receive funding in a given fiscal year by the fiscal court of each fund-eligible county through the Regional Development Agency Assistance Fund (RDAAF). The funds are distributed to Industrial Development Authorities (IDAs) established under KRS 154.50-301 to 154.50-346. The funds are used for: economic development and job creation activities; acquiring federal, state, or private matching funds to the extent possible; and debt service for approved projects; that the agency is empowered to undertake in that county. Grants obtained under this program shall not be used for salaries, consulting fees, or operational expenses. Applications for grants from funds provided for in KRS 96.895 shall be made by the legislative bodies of one or more counties entitled to receive money from the RDAAF; include any recipient agency as a co-applicant on the application; and include a concurrence letter from each legislative body entitled to receive the money. ===== PAGE 36 =====
General Government
Executive Branch Ethics Commission
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation624,600681,900701,300673,400688,200
State Salary and Compensation Allocation39,200
Budget Reduction-General Fund(21,000)
Total General Fund663,800681,900680,300673,400688,200
Restricted Funds
Balance Forward106,886165,688204,800255,500145,200
Current Receipts413,692511,044587,600587,600587,600
Total Restricted Funds520,578676,732792,400843,100732,800
TOTAL SOURCE OF FUNDS1,184,3781,358,6321,472,7001,516,5001,421,000
EXPENDITURES BY CLASS
Personnel Costs917,255919,491962,6001,103,1001,122,400
Operating Expenses101,434234,311254,600268,200274,100
TOTAL EXPENDITURES1,018,6901,153,8011,217,2001,371,3001,396,500
EXPENDITURES BY FUND SOURCE
General Fund663,800681,900680,300673,400688,200
Restricted Funds354,890471,901536,900697,900708,300
TOTAL EXPENDITURES1,018,6901,153,8011,217,2001,371,3001,396,500
EXPENDITURES BY UNIT
Executive Branch Ethics Commission1,018,6901,153,8011,217,2001,371,3001,396,500
TOTAL EXPENDITURES1,018,6901,153,8011,217,2001,371,3001,396,500
In accordance with KRS 11A, the Executive Branch Ethics Commission is responsible for reviewing the personal financial interests of the constitutional officers and management personnel in state government in order to prevent conflicts of interest. Additionally, the Commission issues advisory opinions with regard to ethical conduct, investigates and enforces possible violations of the Code, and provides a registration mechanism for executive agency lobbyists. ## Policy The budget in each fiscal year requires all penalties collected or received by the Executive Branch Ethics Commission to be credited to a trust and agency fund account to be used by the Commission for the cost of conducting administrative hearings. The Governor's budget includes additional funding in the amount of $16,500 in fiscal year 2027 and $33,900 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 $11,900 and $24,400, respectively. ===== PAGE 37 =====
General Government Secretary of State
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward8,080,6628,770,15610,735,90011,781,0003,108,400
Current Receipts6,782,2367,671,1787,804,8007,891,4007,967,600
Non-Revenue Receipts(10,000,000)
Total Restricted Funds14,862,89816,441,33418,540,7009,672,40011,076,000
TOTAL SOURCE OF FUNDS14,862,89816,441,33418,540,7009,672,40011,076,000
EXPENDITURES BY CLASS
Personnel Costs4,397,7784,514,7575,092,4004,948,5005,037,100
Operating Expenses1,440,8901,161,3771,665,3001,615,5001,615,500
Grants Loans Benefits2,000
Capital Outlay252,08829,319
Construction1,986
TOTAL EXPENDITURES6,092,7425,705,4536,759,7006,564,0006,652,600
EXPENDITURES BY FUND SOURCE
Restricted Funds6,092,7425,705,4536,759,7006,564,0006,652,600
TOTAL EXPENDITURES6,092,7425,705,4536,759,7006,564,0006,652,600
EXPENDITURES BY UNIT
General Administration76,28636,796266,900187,500255,700
General Operations6,016,4575,668,6576,492,8006,376,5006,396,900
TOTAL EXPENDITURES6,092,7425,705,4536,759,7006,564,0006,652,600
The Secretary of State, a constitutional officer as provided in Section 91 of the Kentucky Constitution, directs the Department of State of the Commonwealth. KRS 117.015 designates the Secretary of State as the chief Election Officer of the Commonwealth and the chair of the State Board of Elections. In addition, the Secretary of State appoints notaries public; issues Kentucky Colonel Commissions; is the keeper of the Seal of the Commonwealth of Kentucky; and maintains records of all official acts of the Governor as well as all legislation passed by the General Assembly. The Office of the Secretary of State consists of the following organizational units: the Office of Business Services; Office of Elections; and the Office of Administration. The Office of Business Services is responsible for the registration and incorporation of businesses, both domestic and foreign, profit and non-profit, including the administration of documents of merger, dissolution, and name changes. This office also accepts and processes filings for limited liability companies and registered limited liability partnerships. These entities must also file articles of organization with the Secretary of State as well as amendments, mergers and dissolutions. The Office of Administration is responsible for executive policy and management functions for the entire office. This office prepares and records official documents for the Governor; administers Kentucky's notary public law; issues commissions, pardons, commutations, and extraditions; processes service of summonses; and implements the election laws of the Commonwealth. The Office of Elections is responsible for candidate filings and collection of filing fees. The State Land Office is also under the supervision of the Secretary of State. This office preserves Kentucky's land grant records and fulfills daily inquiries and requests for copies of those records. This office files city annexations and corporations, state deeds, and new land patents, and it provides the public with certified copies of land surveys, grants, and military warrants. The restoration process consists of indexing, de-acidifying, laminating, and bonding, thus safely preserving Kentucky's original land grants. ===== PAGE 38 ===== ## Policy The Governor's budget includes additional funding in the amount of $63,300 in fiscal year 2027 and $130,000 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 39 =====
General Government Board of Elections
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation6,361,0006,780,5006,808,5007,709,3007,741,400
State Salary and Compensation
Allocation42,40010,80016,500
Special Appropriation1,200,0001,200,000
Budget Reduction-General Fund(240,800)
Mandated Allotments14,30014,900
Total General Fund6,417,7008,006,2007,784,2007,709,3007,741,400
Restricted Funds
Balance Forward479,833472,435490,000452,100414,200
Current Receipts62,95857,24460,30060,30060,300
Total Restricted Funds542,791529,679550,300512,400474,500
Federal Fund
Balance Forward10,427,99711,121,73810,742,5009,747,5008,706,900
Current Receipts1,887,812784,756836,600789,200789,200
Total Federal Fund12,315,81011,906,49411,579,10010,536,7009,496,100
TOTAL SOURCE OF FUNDS19,276,30120,442,37319,913,60018,758,40017,712,000
EXPENDITURES BY CLASS
Personnel Costs2,581,1182,788,0242,472,2002,401,2002,433,300
Operating Expenses1,252,2551,077,6202,441,0002,435,3002,435,300
Grants Loans Benefits3,822,4693,991,4834,800,8004,800,8004,800,800
TOTAL EXPENDITURES7,655,8437,857,1279,714,0009,637,3009,669,400
EXPENDITURES BY FUND SOURCE
General Fund6,391,4166,653,5087,784,2007,709,3007,741,400
Restricted Funds70,35639,58798,20098,20098,200
Federal Fund1,194,0721,164,0331,831,6001,829,8001,829,800
TOTAL EXPENDITURES7,655,8437,857,1279,714,0009,637,3009,669,400
EXPENDITURES BY UNIT
General Administration and Support2,562,5412,584,2352,373,2002,296,5002,328,600
State Share of County Election
Expenses1,897,2001,763,6933,083,0003,083,0003,083,000
State Share of Voter Registration
Expenses1,717,7691,717,7461,717,8001,717,8001,717,800
Presidential Electors2,723
Election Fund1,478,3321,788,7312,540,0002,540,0002,540,000
TOTAL EXPENDITURES7,655,8437,857,1279,714,0009,637,3009,669,400
The State Board of Elections administers the election laws of the state pursuant to KRS Chapters 116, 117, 118, 118A, 119, and 120; supervises the registration and purgation of voters; appoints the political party representatives to the 120 county boards of elections; and certifies official election results. ===== PAGE 40 ===== The State Board of Elections consists of 10 members, pursuant to KRS 117.015. The Secretary of State serves as the chief election official for the Commonwealth and is a non-voting board member. There are 8 voting members appointed by the Governor, and an executive director is appointed by the Board who serves as the chief administrative officer for the Board. The executive director may vote only to break a tie regarding selection of the chair of the board. The General Administration and Support program objectives are to maintain and update the computerized records of registered voters in the state, certify election results, produce precinct rosters, issue certification of nomination and election, train county clerks in election duties, and conduct a nonpartisan voter education program. The State Board of Elections will provide unofficial election results on all candidates who file in the state. The State Share of County Election Expenses program reimburses county fiscal courts the state's share of county election expenses pursuant to KRS 117.345(2). The state currently has 3,243 precincts with over 3 million registered voters. The number of precincts increases as voter registration totals increase and as reapportionment of county commissioner/magisterial districts and congressional and state redistricting occur. The State Board of Elections remits payment to county clerks for newly registered voters pursuant to KRS 116.145. There is a significant increase of newly registered voters in years that county and presidential candidates are on the ballot. The State Board of Elections remits reimbursement to county clerks an amount not to exceed fifty cents ($0.50) per registered voter in the county per year for the cost of employing office personnel necessary for the conduct of elections, including the registration and purgation of voters in the county pursuant to KRS 117.343 and KRS 116.112(7). The Help America Vote Act (HAVA) became law in 2002. The Act imposed new election requirements on states and called for the upgrade of voting machines to be in compliance by January 1, 2006. ## Policy In the Governor's budget includes additional General Fund in the amount of $20,700 in fiscal year 2027 and $42,600 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028 ===== PAGE 41 =====
General Government\nRegistry of Election Finance
Actual\nFY 2024Actual\nFY 2025Revised\nFY 2026Recommended\nFY 2027Recommended\nFY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,713,6001,798,2001,839,8001,723,6001,757,900
State Salary and Compensation Allocation60,10010,300\n(55,500)
Budget Reduction-General Fund
Total General Fund1,773,7001,798,2001,794,6001,723,6001,757,900
TOTAL SOURCE OF FUNDS1,773,7001,798,2001,794,6001,723,6001,757,900
EXPENDITURES BY CLASS
Personnel Costs1,434,5391,447,8081,669,6001,598,9001,633,300
Operating Expenses107,062118,107125,000124,700124,600
TOTAL EXPENDITURES1,541,6011,565,9151,794,6001,723,6001,757,900
EXPENDITURES BY FUND SOURCE
General Fund1,541,6011,565,9151,794,6001,723,6001,757,900
TOTAL EXPENDITURES1,541,6011,565,9151,794,6001,723,6001,757,900
EXPENDITURES BY UNIT
Registry of Election Finance1,541,6011,565,9151,794,6001,723,6001,757,900
TOTAL EXPENDITURES1,541,6011,565,9151,794,6001,723,6001,757,900
The role of the Kentucky Registry of Election Finance is to ensure the integrity of the Commonwealth's electoral process by making certain there is full public access to campaign financial data and financial disclosure reports, and by administering Kentucky's campaign finance laws. Under KRS Chapter 121, Kentucky's campaign finance laws apply to all candidates for public office, except federal office, as well as political issues committees, permanent committees, state and local party executive committees, inaugural committees, and caucus campaign committees. The Registry also receives, compiles, and maintains financial disclosure reports of elected officials and candidates for specified offices as provided in KRS Chapter 61. Regulatory functions of the Registry include: educating candidates and committees on campaign finance laws; ensuring compliance with campaign finance reporting requirements, including the timely filing of campaign finance reports; providing the means for electronic reporting of campaign finance data; conducting desk reviews and random audits; investigating complaints; and adjudicating charges of administrative violations of campaign finance laws. The Registry's public disclosure role is a key component of the campaign finance laws. Registry employees routinely work with members of the public and the media to fill open records requests and to assist in On-line Searchable Database searches. Pursuant to KRS 121.170(5), the Registry receives copies of reports filed with the Federal Election Commission by federally registered out-of-state permanent committees that contribute to Kentucky candidates. These and the reports of other candidates and committees who are required to file with the Federal Election Commission may be viewed at the Registry's office in Frankfort pursuant to 2 U.S.C. Section 439(c). ## Policy The Governor's budget includes additional funding in the amount of $26,100 in fiscal year 2027 and $53,600 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 42 =====
General Government Attorney General
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation33,696,80038,663,50040,655,70024,714,20040,289,600
Budget Reserve2,500,000500,000
State Salary and Compensation
Allocation626,2009,10013,600
Current Year Appropriation933,200
Mandated Allotments256,1002,261,900
Total General Fund35,512,30043,434,50041,169,30024,714,20040,289,600
Tobacco Fund
Tobacco Settlement - Phase I150,000150,000150,000150,000150,000
Total Tobacco Fund150,000150,000150,000150,000150,000
Restricted Funds
Balance Forward55,314,74080,278,86692,361,50080,302,10057,807,500
Current Receipts73,750,77746,023,85842,490,50047,446,20047,519,800
Non-Revenue Receipts6,503,65218,468,17517,209,70017,214,10017,249,900
Total Restricted Funds135,569,170144,770,899152,061,700144,962,400122,577,200
Federal Fund
Balance Forward4,792,5891,671,2351,856,200
Current Receipts47,106,13156,925,42752,874,10064,133,60064,415,700
Total Federal Fund51,898,72058,596,66154,730,30064,133,60064,415,700
TOTAL SOURCE OF FUNDS223,130,190246,952,061248,111,300233,960,200227,432,500
EXPENDITURES BY CLASS
Personnel Costs42,510,90057,118,54155,332,20062,271,00063,426,400
Operating Expenses11,364,58215,040,16022,451,80024,105,60024,019,200
Grants Loans Benefits85,908,60578,662,52789,475,20089,476,20089,476,200
Debt Service1,353,000
Capital Outlay43,002553,715550,000299,900386,300
TOTAL EXPENDITURES141,180,089151,374,943167,809,200176,152,700177,308,100
EXPENDITURES BY FUND SOURCE
General Fund35,512,30042,075,19041,169,30024,714,20040,289,600
Tobacco Fund150,000150,000150,000150,000150,000
Restricted Funds55,290,30452,409,27271,759,60087,154,90072,452,800
Federal Fund50,227,48556,740,48154,730,30064,133,60064,415,700
TOTAL EXPENDITURES141,180,089151,374,943167,809,200176,152,700177,308,100
EXPENDITURES BY UNIT
Administrative Services2,795,6474,144,8374,017,6004,388,5004,469,300
Criminal Services13,725,80017,140,62327,865,60027,840,20028,175,000
Uninsured Employers Fund6,271,9066,309,4237,074,5007,104,4007,121,500
Reliability Defense Program1,140,690500,000496,200500,700
Solicitor General4,124,6183,816,8604,490,0004,536,8004,619,500
Civil Division10,968,35417,417,02718,813,90017,603,00017,932,300
===== PAGE 43 =====
Opioid Abatement Advisory Commission32,449,80326,190,36524,200,00024,200,00024,200,000
Child Support Enforcement70,843,96275,215,11780,847,60089,983,60090,289,800
TOTAL EXPENDITURES141,180,089151,374,943167,809,200176,152,700177,308,100
The Attorney General has the statutory responsibility (KRS 15.020) to act as the chief law officer for the Commonwealth. This involves a wide and diverse range of responsibilities and duties, the power to investigate matters and other legal activities, including representation, on behalf of the Commonwealth. The Office of Administrative Services provides the administrative support network for agency operations including budget, personnel and payroll, fiscal services, procurement services, ADA, Title VI and EEO programs, employee training, federal grant administration, audit coordination and operation management. The Civil Division includes the offices of Consumer Protection, Senior Protection, and Civil and Environmental Law. The Civil Division restructuring centralizes all civil litigation of the Office of Attorney General and to provide a more detailed level of oversight as it relates to such litigation. The Criminal Division includes the Department of Criminal Investigations, Office of Medicaid Fraud and Abuse Control, Office of Prosecutors Advisory Council, and Office of Trafficking and Abuse Prevention. The Criminal Division restructuring centralizes and provides a more detailed level of oversight as it relates to such litigation and investigations. The Office of Solicitor General centralizes and provides a detailed level of oversight for appellate litigation. The Uninsured Employers Fund is part of the Kentucky Workers Compensation Program and KRS 342.760 directs the Attorney General's office to serve as legal representation for the Fund in all claims made against it or on its behalf. The Uninsured Employer's Fund is responsible for payment of Workers' Compensation to employees when the employer does not have Workers' Compensation insurance. The Office of Child Support Enforcement moved from the Cabinet for Health and Family Services to the Office of the Attorney General in Fiscal Year 2026. The functions of this Office include enforcing Kentucky child support laws and serving as the state agency to administer Part D of Title IV of the Social Security Act. (KRS 15.802) The Kentucky Opioid Abatement Advisory Commission was established in KRS 15.291(1) and is tasked with distributing the Commonwealth's portion of the global settlements with pharmacies, opioid manufacturers and distributors and other opioid-related entities for their contributory role in the opioid epidemic. ## Policy The Governor's budget includes additional funding in the amount of $813,600 in fiscal year 2027 and $1,671,900 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 $406,800 and $835,900, respectively. Excess unexpended Restricted funds from the consumer protection program carried forward from fiscal year 2025 in the amount of $15 million are used in fiscal year 2027 as a one-year replacement of General Fund dollars. The budget includes Restricted Funds for the training incentive stipend for Attorney General investigators. The stipend payments are provided from the Kentucky Law Enforcement Foundation Program Fund. ===== PAGE 44 =====
General Government Commonwealth's Attorneys
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation69,940,10077,365,40080,019,40075,751,60077,355,000
State Salary and Compensation
Allocation2,608,100
Total General Fund72,548,20077,365,40080,019,40075,751,60077,355,000
Restricted Funds
Balance Forward4,702,8034,456,4414,781,8003,626,6002,815,800
Current Receipts4,581,5595,075,9514,675,0004,869,6004,954,100
Non-Revenue Receipts72,243101,47590,00090,00090,000
Total Restricted Funds9,356,6049,633,8679,546,8008,586,2007,859,900
Federal Fund
Balance Forward(219,383)(121,429)(139,800)
Current Receipts532,468255,130499,000359,200359,200
Total Federal Fund313,085133,701359,200359,200359,200
TOTAL SOURCE OF FUNDS82,217,89087,132,96989,925,40084,697,00085,574,100
EXPENDITURES BY CLASS
Personnel Costs69,202,34670,012,95875,851,30071,452,20073,157,900
Operating Expenses8,308,7418,897,23910,317,00010,298,50010,298,500
Grants Loans Benefits34342,54380,50080,50080,500
Capital Outlay143,40950,00050,00050,000
TOTAL EXPENDITURES77,511,42979,096,14986,298,80081,881,20083,586,900
EXPENDITURES BY FUND SOURCE
General Fund72,176,75273,970,57580,019,40075,751,60077,355,000
Restricted Funds4,900,1634,852,0505,920,2005,770,4005,872,700
Federal Fund434,515273,523359,200359,200359,200
TOTAL EXPENDITURES77,511,42979,096,14986,298,80081,881,20083,586,900
EXPENDITURES BY UNIT
Commonwealth's Attorneys77,511,42979,096,14986,298,80081,881,20083,586,900
TOTAL EXPENDITURES77,511,42979,096,14986,298,80081,881,20083,586,900
Established by Section 99 of the Kentucky Constitution, the Commonwealth's Attorneys program is made up of 57 elected Commonwealth's Attorneys and their staffs, one for each judicial circuit. Currently 56 circuits have full-time Commonwealth's Attorneys, with only the 36th Judicial Circuit designated as part-time. Commonwealth's Attorneys are responsible for all felony prosecutions, including those prosecutions in which the penalty of death may be imposed upon the defendant. The prosecution of each felony requires a thorough investigation that involves extensive research and trial preparation by the prosecutor. Witness interviews, grand jury presentations, motions (including post-conviction motions), conferences, plea-bargaining, case studies, continuing legal education and participation on multi-disciplinary teams are a part of each prosecutor's responsibility in representing the Commonwealth and citizens of Kentucky as the state's attorney. Pursuant to KRS 15.725, the Commonwealth's Attorneys attend each circuit court held in the judicial circuit. The Commonwealth's Attorneys, except as provided by KRS 15.715, have the duty to prosecute all violations of the criminal and penal laws which are tried in their circuit court. In addition, the Commonwealth's Attorneys have the primary responsibility within the judicial circuit to present evidence to the grand jury concerning such violations. In accordance with KRS 15.735, the Commonwealth's Attorneys serve as special prosecutors in cases where the regularly elected prosecutors have been disqualified. ===== PAGE 45 ===== ## Policy The Governor's budget includes additional funding in the amount of $1,272,600 in fiscal year 2027 and $2,613,700 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 $1.196,200 and $2,456,900, respectively. The budget includes Restricted Funds in the amount of $2,000,000 in each fiscal year to support the Rocket Docket program. ===== PAGE 46 =====
General Government County Attorneys
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation65,134,30078,783,90081,980,40077,602,10079,366,400
State Salary and Compensation Allocation2,301,300
Total General Fund67,435,60078,783,90081,980,40077,602,10079,366,400
Restricted Funds
Balance Forward1,338,5611,114,2541,097,500902,600752,300
Current Receipts721,086918,005740,000756,600773,600
Non-Revenue Receipts4,6186,9006,9006,900
Total Restricted Funds2,059,6472,036,8771,844,4001,666,1001,532,800
Federal Fund
Balance Forward118,181114,265220,200256,400258,000
Current Receipts195,743226,521151,300116,700118,700
Total Federal Fund313,924340,786371,500373,100376,700
TOTAL SOURCE OF FUNDS69,809,17181,161,56384,196,30079,641,30081,275,900
EXPENDITURES BY CLASS
Personnel Costs63,902,97071,320,50878,680,50074,274,20076,056,300
Operating Expenses3,066,7653,488,3804,356,8004,356,8004,356,800
TOTAL EXPENDITURES66,969,73574,808,88883,037,30078,631,00080,413,100
EXPENDITURES BY FUND SOURCE
General Fund65,824,68373,748,95081,980,40077,602,10079,366,400
Restricted Funds945,393939,340941,800913,800931,600
Federal Fund199,658120,598115,100115,100115,100
TOTAL EXPENDITURES66,969,73574,808,88883,037,30078,631,00080,413,100
EXPENDITURES BY UNIT
County Attorneys66,969,73574,808,88883,037,30078,631,00080,413,100
TOTAL EXPENDITURES66,969,73574,808,88883,037,30078,631,00080,413,100
Established in Section 99 of the Kentucky Constitution, the offices of the County Attorney are present in each of the 120 counties of the Commonwealth. Pursuant to KRS 15.725(2), each County Attorney attends the district court in the respective county and prosecutes all violations of criminal and penal laws within the jurisdiction of that district court. In accordance with KRS 15.735, County Attorneys also serve as special prosecutors in cases where the elected prosecutors have been disqualified. Criminal cases at the district level include felonies (until the case is transferred to circuit court), misdemeanors, juvenile cases, and traffic cases. County Attorneys prosecute the majority of DUI cases. Most counties have Family Court, Drug Court, and/or Truancy Court requiring representation from the County Attorney. The County Attorney receives numerous criminal complaints from local law enforcement and the general public and frequently mediates local complaints so many of the services provided may never appear on a court docket. County Attorneys are also required to participate on multi-disciplinary teams involving child sexual abuse cases. ## Policy The Governor’s budget includes additional funding in the amount of $1,258,100 in fiscal year 2027 and $2,584,000 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 $1,245,500 and $2,558,200, respectively. ===== PAGE 47 =====
General Government Treasury
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation3,520,0003,709,7003,672,0003,437,2003,500,000
State Salary and Compensation
Allocation93,70017,30025,900
Total General Fund3,613,7003,727,0003,697,9003,437,2003,500,000
Restricted Funds
Balance Forward374,186536,215338,300335,800354,000
Current Receipts17,7801,525
Non-Revenue Receipts1,532,8001,594,7002,159,6002,159,6002,159,600
Total Restricted Funds1,924,7662,132,4402,497,9002,495,4002,513,600
Federal Fund
Balance Forward197,96272,045221,800221,800215,000
Current Receipts1,188,1381,276,0101,211,4001,199,9001,207,900
Total Federal Fund1,386,0991,348,0541,433,2001,421,7001,422,900
TOTAL SOURCE OF FUNDS6,924,5657,207,4957,629,0007,354,3007,436,500
EXPENDITURES BY CLASS
Personnel Costs3,456,5133,951,3814,717,7004,449,4004,526,800
Operating Expenses1,134,4771,296,6601,565,9001,562,3001,561,800
Grants Loans Benefits865,595705,235737,400732,700742,100
Capital Outlay80,423116,13950,40040,90041,400
TOTAL EXPENDITURES5,537,0086,069,4157,071,4006,785,3006,872,100
EXPENDITURES BY FUND SOURCE
General Fund2,834,4033,148,9973,697,9003,437,2003,500,000
Restricted Funds1,388,5501,794,1792,162,1002,141,4002,165,400
Federal Fund1,314,0551,126,2391,211,4001,206,7001,206,700
TOTAL EXPENDITURES5,537,0086,069,4157,071,4006,785,3006,872,100
EXPENDITURES BY UNIT
General Administration and Support1,734,6991,926,4582,380,4002,178,5002,214,400
Disbursements and Accounting907,4051,032,9391,125,1001,067,6001,092,800
Abandoned Property Administration1,388,5501,794,1792,162,1002,140,9002,164,500
Commonwealth Council on Developmental Disabilities1,506,3551,315,8391,403,8001,398,3001,400,400
TOTAL EXPENDITURES5,537,0086,069,4157,071,4006,785,3006,872,100
The Treasury Department is the central administrative agency responsible for the receipt and custody of all revenues collected by state government and for writing all checks and disbursing state funds, as outlined in KRS Chapter 41. The State Treasurer, a constitutional officer as provided in Section 91 of the Kentucky Constitution, heads the Treasury Department. The Treasurer also serves on the Kentucky Lottery Board, the Kentucky Higher Education Assistance Board, as trustee of the Kentucky Teachers' Retirement System, the Deferred Compensation Authority, as Chair of the Kentucky Financial Empowerment Commission, and is Vice-Chair of the State Investment Commission. The Treasury Department is also responsible for administering the federal “Achieving a Better Life Experience”, or STABLE, Kentucky program and provides administrative services to the Commonwealth Council on Developmental Disabilities, including the drawdown of federal funds. The Treasury Department reviews and records all investment transactions of the Commonwealth. ===== PAGE 48 ===== The General Administration and Support Division provides management support for Treasury including: fiscal control, personnel administration, and policy development and implementation. The Division issues over 4,200,000 checks and stubs each year, sends over 7,700,000 ACH payments, reconciles the various Commonwealth bank accounts, reconciles daily with the State Depository, administers and records court-ordered withholdings, and produces wire transfers for state government. The Disbursements and Accounting Division receives all funds of the Commonwealth including fees, grants, taxes, federal funds, fees from officials in counties over 75,000 in population, and fees from various boards and commissions. This program also receives, balances, and deposits all withholdings. A computer analysis is maintained on daily receipts and disbursements, which subsequently is submitted to the Finance and Administration Cabinet for accounting posting. The Unclaimed Property Division is responsible for administering the provisions of KRS Chapters 393 and 393A related to escheats. This program receives unclaimed property reports from holders and potential holders of unclaimed property, collects unclaimed property, pursues the location and collection of the property, and attempts to locate the rightful property owner. The Kentucky Commonwealth Council on Developmental Disabilities is administratively attached to the Kentucky State Treasurer. The Council is made up of 26 members (individuals with developmental disabilities and family/guardian/siblings) appointed by the Governor and state agency representatives as defined in P.L. 106-405 and KRS 41.410(3). The Council promotes systems change, capacity building and advocacy for individuals with developmental disabilities. The Council on Developmental Disabilities represents the interests of an estimated 84,886 Kentuckians who have developmental disabilities. The Council funds time-limited demonstration projects and engages in outreach activities to assist individuals with developmental disabilities and their families. ## Policy Restricted Funds are provided in accordance with KRS 393.250 for the administration of the Unclaimed Property program in the amount of $2,140,900 in fiscal year 2027 and $2,164,500 in fiscal year 2028. This action reflects the movement of available off-budget Restricted Funds to on-budget status to support ongoing activities of the program. The Governor's budget includes additional funding in the amount of $65,500 in fiscal year 2027 and $134,700 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 $47,200 and $97,000, respectively. ===== PAGE 49 =====
General Government Agriculture
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation20,390,90021,691,60022,741,00011,607,80022,085,200
Budget Reserve5,000,000
State Salary and Compensation
Allocation568,90024,00041,500
Current Year Appropriation153,900
Continuing Approp-General Fund6,0359,0248,700
Total General Fund21,119,73521,724,62427,791,20011,607,80022,085,200
Tobacco Fund
Tobacco Settlement - Phase I41,712,00038,967,10039,961,00031,149,90028,559,600
Continuing Approp-Tob Settlement56,946,51955,422,21422,389,200
Other1,638,8771,289,451
Total Tobacco Fund100,297,39695,678,76562,350,20031,149,90028,559,600
Restricted Funds
Balance Forward20,002,40121,458,61423,712,70021,042,9008,292,900
Current Receipts8,151,7628,515,9609,466,7009,252,4008,249,500
Non-Revenue Receipts2,192,2152,540,644775,000758,000740,000
Total Restricted Funds30,346,37832,515,21833,954,40031,053,30017,282,400
Federal Fund
Balance Forward(107,114)(2,239,762)(1,785,400)55,20055,200
Current Receipts15,943,72818,729,14214,019,30012,173,20012,173,200
Total Federal Fund15,836,61416,489,38012,233,90012,228,40012,228,400
TOTAL SOURCE OF FUNDS167,600,123166,407,987136,329,70086,039,40080,155,600
EXPENDITURES BY CLASS
Personnel Costs25,416,27425,269,29033,880,10027,667,90028,227,300
Operating Expenses6,705,7327,481,3669,308,2009,266,8009,266,300
Grants Loans Benefits59,531,03887,859,32571,285,80040,006,60037,377,800
Capital Outlay1,187,658661,619757,500750,000750,000
Construction109,41966,552
TOTAL EXPENDITURES92,950,121121,338,151115,231,60077,691,30075,621,400
EXPENDITURES BY FUND SOURCE
General Fund21,110,71121,050,10927,791,20011,607,80022,085,200
Tobacco Fund44,875,27073,210,67762,350,20031,149,90028,559,600
Restricted Funds8,887,7648,802,49212,911,50022,760,40012,803,400
Federal Fund18,076,37618,274,87312,178,70012,173,20012,173,200
TOTAL EXPENDITURES92,950,121121,338,151115,231,60077,691,30075,621,400
EXPENDITURES BY UNIT
Strategic Planning and Administration7,427,8997,868,3218,239,6007,345,6007,453,100
Motor Fuel Inspection and Testing177,054177,371183,400182,500185,800
Consumer and Environmental Programs26,317,33126,215,87522,312,70022,194,60022,348,400
State Veterinarian5,312,0795,107,7237,049,4006,894,0007,011,600
===== PAGE 50 =====
Animal Control74,94163,56293,70085,00085,000
Agriculture Development - Statewide MSA Admin28,812,93958,309,06152,117,90019,000,40017,316,700
Agriculture Development - Counties MSA15,051,60713,389,50813,285,30010,202,5009,295,900
Farmland Preservation107,032112,5486,8006,8006,800
Agriculture Marketing and Product Promotion9,669,23810,094,18311,942,80011,779,90011,918,100
Small Winery Support Fund
TOTAL EXPENDITURES92,950,121121,338,151115,231,60077,691,30075,621,400
The Department of Agriculture, as defined in KRS Chapter 246, is headed by the Commissioner of Agriculture, a Constitutional Officer. The State Board of Agriculture, appointed by the Governor, acts as an advisory body to the elected Commissioner. The Office of the Commissioner provides leadership and management for the Department. The office assists the Commissioner in promoting and encouraging the organization of agricultural organizations and associations. The Office for Agricultural Marketing develops and manages programs which promote Kentucky-produced agricultural products, including grading and inspecting specific products and commodities and reporting market news. The divisions that make up this office include the Promotion and Development Division, the Shows and Fairs Division, the Livestock Division, the Plant Division, the Education and Outreach Division, and the Direct Farm Marketing Division. Responsibilities of this office include the research, development, and promotion of new and expanded outlets for Kentucky's agricultural products, agricultural education, agritourism development, livestock, farm safety, and farmland preservation. The Office is also responsible for providing testing services for hay and other forages essential for Kentucky's livestock industries and sponsoring district, state, and national livestock shows and sales. The Office for Consumer and Environmental Protection directs programs which have a direct bearing on agricultural revenue. The divisions in this office include, the Division of Regulation and Inspection, the Division of Food Distribution, and the Division of Environmental Services. The Office conducts the grain regulation program, certifies all sales made by solid weight or liquid volume, licenses egg wholesalers, and inspects amusement rides operating within the Commonwealth. Duties include the distribution of commodity foods to qualifying institutions and individuals on behalf of the United States Department of Agriculture. This office is responsible for conducting various pest and noxious weed control programs, enforcing federal and state laws and regulations pertaining to the control of pesticide use and application, and liaison between the regulator and those being regulated. The Office of State Veterinarian protects the livestock industry pursuant to KRS Chapter 257. The primary function of this office is the prevention and eradication of animal disease, and to ensure the health of the state's multi-billion dollar animal agriculture industries. The Office enforces Kentucky's statutes on animal importation and movement, and provides numerous other services to the livestock and poultry industries. The Office of State Veterinarian includes the Division of Regulatory Field Services, the Division of Animal Health Programs, and the Division of Emergency Preparedness and Response. The Office of Administrative Services deals with the budget preparation and administration, handles legislative tracking duties, interacts with government agencies, provides technology systems infrastructure, oversees purchasing and accounting, and ensures fairness for all Department of Agriculture employees. The Office is compromised of the Division of Human Resources, the Division of Administrative Services, and the Division of Information Technology. The Office of Communications informs the public on news about Kentucky agriculture and shares stories about the Kentucky farm families and agribusinesses that are responsible for the goods provided. The Office of Legal Services handles the legal needs of the Department as well as serving as the legislative liaison to members of the Kentucky General Assembly, representing the Department and its employees in administrative hearing and court proceedings, and responding to open records requests from the public. Senate Bill 3 from the 2021 Regular Session of the General Assembly abolished the Governor's Office of Agriculture Policy and established the Kentucky Office of Agricultural Policy within the Department of Agriculture. The office is comprised of two boards, The Kentucky Agricultural Development Board and the Kentucky Agricultural Finance Corporation, which are staffed by the employees in this Office. The Kentucky Agricultural Development Board employs an Executive Director to carry out the duties of the board, while also serving as the Executive Director of the Kentucky Agricultural Finance Corporation. ===== PAGE 51 ===== The Agricultural Development Board has sixteen members, described in KRS 248.707(2). They are the Governor, Commissioner of Agriculture, Secretary of the Cabinet for Economic Development, Director of the University of Kentucky Cooperative Extension Service and President of Kentucky State University, along with eleven members appointed by the Commissioner to staggered terms. Those appointees include representatives of the Kentucky Farm Bureau, the Kentucky Chamber of Commerce, an attorney, an agricultural lender, and seven active farmers. The Commissioner of Agriculture serves as Chair. Pursuant to KRS 248.703 half of Kentucky's tobacco settlement receipts are allocated to the Agricultural Development Fund. That amount is further divided between a counties account for county level grants and a state account for investments that have a regional or statewide purpose. From the state account, the General Assembly has appropriated debt service for bonds to support farmland preservation and safe drinking water, water and sewer infrastructure projects, livestock diagnostic lab design and construction, improvements to 4-H camps and FFA Leadership Center, and funding for land conservation programs. A portion of funds received into the Agriculture Development Fund are allocated for projects at the county level. The specific funding level of a county is dependent upon its tobacco-production dependency in relation to other counties within the state as described in KRS 248.703(3). One hundred and eighteen of Kentucky's 120 counties receive a portion of county allocation. Each county has a council of local agriculture leaders who consider applications for grants from the county's share of funds and prioritizes them for the Agricultural Development Board, which has the final grant authority for each county's funds. The Board has developed several programs in which counties may participate. Funds are provided as matching grants. In addition to their work with the Kentucky Agricultural Development Fund, personnel in the Kentucky Office of Agricultural Policy provide staffing for the Kentucky Agricultural Finance Corporation (KAFC). KAFC is a de jure municipal corporation created in KRS 247.944 to provide access to capital for farmers and other agricultural enterprises. The mission of KAFC is to strengthen Kentucky agriculture by providing access to low interest loan programs through joint partnerships with local lending institutions. KAFC assists beginning farmers, farm families, and agribusinesses to obtain the necessary capital to establish, maintain, or expand their agricultural operation. The Commissioner of the Kentucky Department of Agriculture serves as the Chair and the Secretary of the Finance Cabinet serves as another statutory member. The Commissioner appoints the remaining ten board members who represent various agricultural sectors. ## Policy The Governor's budget includes additional funding in the amount of $397,400 in fiscal year 2027 and $816,300 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 $302,000 and $620,300, respectively. Excess unexpended Restricted funds from the consumer and environmental program carried forward from fiscal year 2025 in the amount of $10 million are used in fiscal year 2027 as a one-year replacement of General Fund dollars. ===== PAGE 52 =====
General Government Auditor of Public Accounts
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation11,335,30014,435,40013,151,0009,598,5009,911,300
Budget Reserve750,000
State Salary and Compensation
Allocation322,4004,200
Current Year Appropriation40,000
Continuing Approp.-General Fund500,0001,500,000
Total General Fund12,197,70015,185,40014,655,2009,598,5009,911,300
Restricted Funds
Balance Forward3,945,0072,028,9446,564,9006,564,9006,495,900
Current Receipts5,885,90724,839,23926,407,00026,407,00026,407,000
Total Restricted Funds9,830,91426,868,18332,971,90032,971,90032,902,900
TOTAL SOURCE OF FUNDS22,028,61442,053,58347,627,10042,570,40042,814,200
EXPENDITURES BY CLASS
Personnel Costs19,024,79032,177,34237,799,30033,151,00033,862,000
Operating Expenses974,8801,752,8573,262,9002,923,5002,923,500
TOTAL EXPENDITURES19,999,67033,930,19941,062,20036,074,50036,785,500
EXPENDITURES BY FUND SOURCE
General Fund12,197,70013,626,84614,655,2009,598,5009,911,300
Restricted Funds7,801,97020,303,35426,407,00026,476,00026,874,200
TOTAL EXPENDITURES19,999,67033,930,19941,062,20036,074,50036,785,500
EXPENDITURES BY UNIT
Auditor of Public Accounts1,833,2002,775,3273,419,4003,253,1003,303,200
State & Local Government Audits18,166,47018,026,35019,350,40014,615,40014,970,900
Ombudsman13,128,52218,292,40018,206,00018,511,400
TOTAL EXPENDITURES19,999,67033,930,19941,062,20036,074,50036,785,500
The Auditor of Public Accounts is the constitutional officer responsible for auditing all state agencies and county governments, pursuant to KRS Chapter 43. Statutory responsibility requires the Auditor's Office to examine the state general accounts, the accounts of all state agencies, all private and semi-private agencies receiving or handling state funds, all state revenue collections, funds contained in each county's budget, and the accounts and papers of all county clerks and sheriffs. The Auditor must examine the management and control of all institutions and public works in which the state has financial interest or legal power. The Auditor's Office is responsible for assisting state and local officials in establishing and maintaining proper accounting records, internal controls, and administrative controls over public funds. The Office responds to requests from public officials, the general public, the Legislative Research Commission, and the Governor's Office concerning financial and program matters, special audits, and investigations. Also, the Auditor of Public Accounts has primary responsibility for auditing nearly $9 billion in federal funds expended in state and county governments. The Auditor of Public Accounts has three program areas: Administration, Financial Audits, and Ombudsman. The Administration area includes the Office of the Auditor of Public Accounts, the Office of the Assistant Auditor of Public Accounts, the Office of Legal and Records Services, and the Office of Planning and Management. All policy, budget, fiscal, legal, and personnel duties are performed within the Administration area. ===== PAGE 53 ===== Financial Audits is responsible for financial audits of state agency transactions, pursuant to KRS 43.050, and of county officials such as fiscal courts, sheriffs, county clerks, property valuation administrators, county attorneys, and circuit clerks per KRS 43.070. Audits of major federal programs performed in accordance with the Single Audit Act of 1984 (amended in 1996) as enacted by the United States Congress are also performed by this office. Collectively, these audits identify significant waste, fraud, and abuse, and have led to numerous law enforcement referrals. The agency's information technology audit and support staff are also within this office. I he Office of Ombudsman, established by KRS 43.035, provides independent oversight of the Cabinet for Health and Family Services (CHFS). The Office investigates citizen complaints, advises on service delivery issues and conducts comprehensive reviews of CHFS programs and administrative actions. ## Policy The Governor's budget includes additional funding in the amount of $542,700 in fiscal year 2027 and $1,114,600 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 $238,800 and $490,400, respectively. ===== PAGE 54 =====
General Government Personnel Board
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation255,000245,300
Budget Reduction-General Fund(5,400)
Total General Fund255,000239,900
Restricted Funds
Balance Forward53,649115,282323,600352,100332,500
Current Receipts946,4041,021,2861,019,7001,015,1001,015,100
Total Restricted Funds1,000,0531,136,5681,343,3001,367,2001,347,600
TOTAL SOURCE OF FUNDS1,000,0531,391,5681,583,2001,367,2001,347,600
EXPENDITURES BY CLASS
Personnel Costs768,964707,7981,000,800820,300846,100
Operating Expenses115,584164,774230,300214,400203,300
Grants Loans Benefits224(453)
TOTAL EXPENDITURES884,771872,1191,231,1001,034,7001,049,400
EXPENDITURES BY FUND SOURCE
General Fund59,164239,900
Restricted Funds884,771812,955991,2001,034,7001,049,400
TOTAL EXPENDITURES884,771872,1191,231,1001,034,7001,049,400
EXPENDITURES BY UNIT
Personnel Board884,771872,1191,231,1001,034,7001,049,400
TOTAL EXPENDITURES884,771872,1191,231,1001,034,7001,049,400
Created by the 1982 General Assembly, the Personnel Board is composed of seven members. The Governor appoints five, and two are classified employees elected by their colleagues. Pursuant to KRS 18A.0551, elections for the two classified employee members of the Board are held every four years. The Personnel Board serves in a quasi judicial capacity and assists the Personnel Cabinet in the development of administrative regulations pertaining to the classified service. The Board administers the appeals process of applicants for classified positions and conducts hearings for any non-probationary employee who is dismissed, demoted, suspended, or otherwise penalized for cause. ## Policy The Governor's budget includes additional funding in the amount of $12,700 in fiscal year 2027 and $26,000 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. The Personnel Board will coordinate with the Finance and Administration Cabinet to assess each agency of the Executive Branch under KRS 18A based upon the authorized permanent full-time positions of each agency as of July 1. ===== PAGE 55 =====
General Government
Kentucky Public Pensions Authority
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation135,000,000250,000,000250,000,000
Budget Reserve75,000,00075,000,000
Special Appropriation105,000,000
Total General Fund240,000,000325,000,000325,000,000
Restricted Funds
Current Receipts55445
Non-Revenue Receipts46,400,00046,800,00050,115,60052,407,50054,022,700
Total Restricted Funds46,400,05546,800,44550,115,60052,407,50054,022,700
TOTAL SOURCE OF FUNDS286,400,055371,800,445375,115,60052,407,50054,022,700
EXPENDITURES BY CLASS
Personnel Costs42,393,89042,097,84943,386,10045,547,00046,921,400
Operating Expenses3,998,2494,702,5966,729,5006,860,5007,101,300
Grants Loans Benefits240,001,571325,000,000325,000,000
Construction6,345
TOTAL EXPENDITURES286,400,055371,800,445375,115,60052,407,50054,022,700
EXPENDITURES BY FUND SOURCE
General Fund240,000,000325,000,000325,000,000
Restricted Funds46,400,05546,800,44550,115,60052,407,50054,022,700
TOTAL EXPENDITURES286,400,055371,800,445375,115,60052,407,50054,022,700
EXPENDITURES BY UNIT
Kentucky Public Pensions Authority286,400,055371,800,445375,115,60052,407,50054,022,700
TOTAL EXPENDITURES286,400,055371,800,445375,115,60052,407,50054,022,700
Kentucky Public Pensions Authority is the administrative arm of three retirement systems which are qualified governmental defined benefit plans under Section 401(a) of the Internal Revenue Code: County Employees Retirement System (cities, counties, local government entities, and classified employees of school boards) governed by KRS 78.510-78.990, Kentucky Employees Retirement System (state employees, universities, health departments, and certain boards) governed by KRS 61.510-61.705 and, State Police Retirement System (uniformed officers of Kentucky State Police) governed by KRS 16.505-16.652 Medical insurance benefits are governed by KRS 61.701-61.702 and KRS 78.5536. The systems were established in the 1950s to provide a pension that, when coupled with Social Security, would provide the career employee with sufficient income to maintain his or her pre-retirement standard of living. Kentucky Public Pensions Authority is administered by a 8-member board that is composed of trustees from the County Employees Retirement System and the Kentucky Retirement System. The County Employees Retirement System is governed by a separate 9 member board of trustees called the County Employees Retirement System Board. Another 9 member board of trustees called the Kentucky Retirement System Board oversees the Kentucky Employees Retirement System and the State Police Retirement System. The boards are responsible for the collection and investment of contributions. Members of the boards are considered fiduciaries and are required to administer the funds in the sole interest of the members and beneficiaries of the systems. All three boards are required to invest the funds under the “prudent person” rule. Investments are diversified among common stocks, government and private bonds, real estate and cash equivalents. An actuarial valuation is conducted each year to determine the funding status of the three systems, and an annual independent audit is performed as well. ===== PAGE 56 ===== Employers contribute a percentage of gross payroll recommended by the actuarial valuation. Kentucky Employees Retirement System non-hazardous employers contribute normal cost plus an additional flat amount based on their assigned percentage of the total unfunded liability calculated within the annual valuation. Pursuant to KRS 61.565 the General Assembly shall pay the full actuarially required contribution rate. Employees contribute at a fixed rate set in the statutes. The assets of the system are considered trust funds. All expenses are paid from the trust. Restricted Funds providing for the operations of the Kentucky Public Pensions Authority are transferred from trust funds held by the System for the benefit of members and beneficiaries. The trust funds include investment earnings, employee contributions, and employer contributions from agencies supported by the General Fund, the Road Fund, Federal Funds, and Restricted Funds. ## Policy The Governor's budget includes additional funding in the amount of $644,900 in fiscal year 2027 and $1,320,700 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. The Governor's budget includes additional Restricted Funds in the amount of $750,000 in fiscal year 2027 and $1,500,000 in fiscal year 2028 to fund ancillary costs associated with the planned modernization of the Kentucky Public Pension Authority's Pension Administration System. ===== PAGE 57 =====
General Government Occupational & Professional Boards & Commissions
Occupational & Professional Boards & Commissions
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS General Fund
Regular Appropriation2,679,6002,718,1002,571,1002,602,900
State Salary and Compensation Allocation38,4006,400
Current Year Appropriation155,600
Reorganization Adjustment1,799,700
Budget Reduction-General Fund(81,700)
Total General Fund1,993,7002,679,6002,642,8002,571,1002,602,900
Restricted Funds
Balance Forward40,953,91242,598,80345,704,00043,795,10043,751,300
Current Receipts30,007,42831,894,09331,489,70035,510,30030,251,100
Fund Transfer(374,200)
Total Restricted Funds70,961,34074,118,69577,193,70079,305,40074,002,400
Federal Fund
Balance Forward(12,474)(24,299)
Current Receipts317,306306,571349,000343,400345,300
Total Federal Fund304,832282,272349,000343,400345,300
TOTAL SOURCE OF FUNDS73,259,87277,080,56880,185,50082,219,90076,950,600
EXPENDITURES BY CLASS
Personnel Costs25,097,52725,552,56528,655,50029,863,00030,336,600
Operating Expenses4,171,2394,231,2125,549,8006,542,8005,574,300
Grants Loans Benefits1,298,5401,483,2902,037,3002,062,3002,062,300
Capital Outlay112,0621,820147,800500500
Construction6,001107,596
TOTAL EXPENDITURES30,685,36831,376,48236,390,40038,468,60037,973,700
EXPENDITURES BY FUND SOURCE
General Fund1,993,7002,679,6002,642,8002,571,1002,602,900
Restricted Funds28,362,53728,414,60933,398,60035,554,10035,025,500
Federal Fund329,131282,272349,000343,400345,300
TOTAL EXPENDITURES30,685,36831,376,48236,390,40038,468,60037,973,700
EXPENDITURES BY UNIT
Accountancy613,418690,103720,800739,700751,100
Certification of Alcohol and Drug206,587191,807275,200405,400405,400
Applied Behavior Analysis56,39641,36370,60070,80070,800
Architects426,256404,930480,700485,500493,200
Certification for Professional Art8,4069,97411,20011,20011,200
Barbering357,123458,498499,100513,400521,500
Chiropractic Examiners264,961288,556300,000299,800299,800
Dentistry755,682782,961980,1001,000,0001,012,900
Diabetes Educators20,80718,48529,30029,30029,300
===== PAGE 58 =====
Emergency Medical Services2,878,8283,003,5293,960,8003,858,2003,893,400
Licensure & Cert. for Dietitians & Nutritionists74,30881,58393,90094,10094,100
Embalmers and Funeral Directors521,956572,150620,000642,300652,000
Licensure for Prof. Engineers and Certification of Fee-Based Pastoral Counselors1,541,0571,549,2192,176,9002,239,5002,270,500
Registration for Professional Geologists2,5452,0263,6003,6003,600
Kentucky Board of Cosmetology88,05092,727109,000109,000109,000
Specialists in Hearing Instruments1,948,4391,958,8432,522,0003,605,9002,657,900
Interpreters for the Deaf and Hard of Hearing43,63068,99978,00077,90077,900
Examiners & Registration of Landscape Architects46,75647,97249,20051,80051,800
Licensure of Marriage and Family Therapists78,35976,43488,20092,80095,300
Licensure for Massage Therapy133,277132,800133,600141,300141,300
Medical Imaging and Radiation Therapy140,330145,249150,500150,700150,700
Medical Licensure418,708575,356498,400518,100526,800
Nursing4,009,9823,891,1974,590,3004,697,0004,751,300
Licensure for Nursing Home9,519,6959,789,54110,624,20010,879,80011,069,400
Licensure for Occupational Therapy82,12883,705101,100101,100101,100
Ophthalmic Dispensers211,554211,176241,600241,600241,600
Optometric Examiners61,84669,00871,40071,20071,200
Pharmacy311,400247,907306,500312,700316,500
Physical Therapy3,022,5702,762,7112,956,8003,255,3003,308,600
Podiatry569,692584,967733,400753,500766,100
Private Investigators46,46158,94846,50058,10058,100
Licensed Professional Counselors84,44685,082113,700113,700113,700
Prosthetics, Orthodics and Pedorthics385,345390,094460,800460,800460,800
Examiners of Psychology42,48441,08746,20046,30046,300
Veterinary Examiners302,971295,205306,400311,400311,400
Respiratory Care511,031575,184759,700816,900813,600
Social Work256,016296,046321,300329,900335,300
Speech-Language Pathology and Audiology448,606588,148636,500653,500663,700
TOTAL EXPENDITURES30,685,36831,376,48236,390,40038,468,60037,973,700
The thirty-eight occupational, professional and regulatory boards and commissions were created to safeguard the life, health, safety and welfare of the people of the Commonwealth who avail themselves of the services that are licensed or regulated by these boards. Board members are appointed by the Governor and represent both industry and consumer interests. Common objectives of the boards and commissions are to examine and license all qualified applicants, enforce ethical, legal and professional standards and regulations, ensure compliance with licensure requirements and administer programs in an efficient manner. The boards and commissions operate solely from agency receipts. Twenty-one of the boards and commissions employ the services of the Department of Professional Licensing established in KRS 324B.020 within the Public Protection Cabinet to perform their administrative functions. Department of Professional Licensing executes administrative support services including but not limited to applications and renewals, preparation of board meeting materials, database entry, maintenance of board records and files, preparation of correspondence, administration of examinations and communications with the public regarding board activity and functions. ===== PAGE 59 =====
General Government Kentucky River Authority
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation311,400398,400407,500393,700399,200
State Salary and Compensation Allocation9,900
Budget Reduction-General Fund(12,200)
Total General Fund321,300398,400395,300393,700399,200
Restricted Funds
Balance Forward11,385,95014,498,27318,173,80010,155,6009,242,500
Current Receipts8,439,3968,351,5326,941,0007,245,6007,250,300
Non-Revenue Receipts(8,804,100)(2,000,000)(6,200,000)
Total Restricted Funds19,825,34622,849,80516,310,70015,401,20010,292,800
Federal Fund
Balance Forward4,3004,300
Total Federal Fund4,3004,300
TOTAL SOURCE OF FUNDS20,146,64623,248,20516,710,30015,799,20010,692,000
EXPENDITURES BY CLASS
Personnel Costs830,448786,865906,500901,300916,800
Operating Expenses272,795478,276413,900425,400426,500
Grants Loans Benefits243,862280,499300,000300,000300,000
Debt Service3,101,2681,997,3744,100,0004,000,0004,000,000
Capital Outlay1,200,0001,523,450830,000930,000930,000
Construction7,870
TOTAL EXPENDITURES5,648,3735,074,3356,550,4006,556,7006,573,300
EXPENDITURES BY FUND SOURCE
General Fund321,300398,400395,300393,700399,200
Restricted Funds5,327,0734,675,9356,155,1006,158,7006,174,100
Federal Fund4,300
TOTAL EXPENDITURES5,648,3735,074,3356,550,4006,556,7006,573,300
EXPENDITURES BY UNIT
General Operations1,025,8061,180,3561,255,1001,258,7001,274,100
Locks and Dams Construction/ Maintenance4,301,2683,495,5794,900,0004,900,0004,900,000
Locks and Dams Operations321,300398,400395,300398,000399,200
TOTAL EXPENDITURES5,648,3735,074,3356,550,4006,556,7006,573,300
===== PAGE 60 ===== The Kentucky River Authority, created by act of the 1986 General Assembly, and now codified as KRS 151.700-730, is charged with managing the water resources of the Kentucky River watershed. The watershed covers all the drainage area to the Kentucky River. This area includes parts of 42 counties and has over 780,000 residents. The primary focus of the Kentucky River Authority is to protect and develop the water supply sources of the area to meet future demands. The primary water source is the main steam of the Kentucky River, extending 256 miles, from Beattyville to Carrollton where it flows to the Ohio River. There are 14 dams creating water supply pools on the Kentucky River. The Authority has title to all 14 locks, dams and adjacent properties and obtained those from the U.S. Army Corps of Engineers who constructed, maintained, and operated the facilities until they gradually abandoned operations between 1985 to 2001. There is a reservation at each dam comprising approximately 15 acres of land and buildings, which once housed the resident lock-master of Corps of Engineers. All commercial traffic on the Kentucky River stopped in 2001 and had not existed upstream of Frankfort for many years. Maintenance has varied widely, and all facilities have outlived their design life. The purpose of these facilities currently is to provide water supply and facilitate recreational use of the river. The Authority collects a water withdrawal fee from each water utility and business user in the watershed that supports programs which benefit the entire watershed. In addition, a second fee is collected from users who withdraw water from the main stem of the river. Those funds support the lock and dam renovation and reconstruction projects the Authority undertakes from time to time. The Authority is created in KRS 151.705 as a public corporation and independent state agency. The Authority is governed by a board that consists of the Secretary of Finance and Administration, the Secretary of Energy and Environment and ten members appointed by the Governor. Those ten include a mayor and a county judge-executive from jurisdictions within the Kentucky River Basin, an engineer and a water quality expert. The board appoints an executive director and other staff necessary to carry out the responsibilities of the Authority. The Kentucky River Authority has built new dams at Dam 9 at Valley View in Fayette County, Dam 3 in Owen and Henry Counties, and Dam 8 in Jessamine County. Dams 9 and 3 retain the water supply for Kentucky American Water Company's Lexington and Owen County water treatment plants. Dam 8 retains the water supply for Nicholasville and Lancaster. Locks 1 through 4 are currently operational. Eighty-two uninterrupted miles of the Kentucky River are now navigable from Carrollton to Tyrone in Anderson County. ## Policy The Governor's budget includes additional funding in the amount of $11,500 in fiscal year 2027 and $23,500 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 $3,000 and $6,100, respectively. ===== PAGE 61 =====
General Government School Facilities Construction Commission
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation127,169,800117,389,800118,827,500105,468,800108,222,200
State Salary and Compensation Allocation11,700
Continuing Approp-General Fund1,281,436(13,600)
Budget Reduction-General Fund
Other810,100
Total General Fund129,273,036117,389,800118,813,900105,468,800108,222,200
Restricted Funds
Balance Forward10,095,9584,624,7797,676,4008,453,400
Non-Revenue Receipts4,028,8223,051,636777,000(8,453,400)
Total Restricted Funds14,124,7797,676,4158,453,400
TOTAL SOURCE OF FUNDS143,397,815125,066,215127,267,300105,468,800108,222,200
EXPENDITURES BY CLASS
Personnel Costs423,200400,700398,800373,100381,600
Operating Expenses38,70040,50040,60041,60041,600
Grants Loans Benefits11,591,536
Debt Service126,719,600116,948,600118,374,500105,054,100107,799,000
TOTAL EXPENDITURES138,773,036117,389,800118,813,900105,468,800108,222,200
EXPENDITURES BY FUND SOURCE
General Fund129,273,036117,389,800118,813,900105,468,800108,222,200
Restricted Funds9,500,000
TOTAL EXPENDITURES138,773,036117,389,800118,813,900105,468,800108,222,200
EXPENDITURES BY UNIT
School Facilities Construction Commission136,681,500117,389,800118,813,900105,468,800108,222,200
SFCC Construction Grants2,091,536
TOTAL EXPENDITURES138,773,036117,389,800118,813,900105,468,800108,222,200
The School Facilities Construction Commission (SFCC), created by the 1985 Extraordinary Session of the General Assembly (KRS 157.611 et seq.), exists to assist local school districts with their school building needs. The Commission is responsible for the distribution of state funds via offers of assistance for approved building or renovation projects. The Commission is empowered to act on behalf of local school districts to issue bonds in the name of the Commission and to enter into lease arrangements with local boards of education to finance construction of new facilities or major renovation of existing school facilities. Offers of assistance are made to eligible local school districts that have demonstrated a reasonable local effort to provide adequate school facilities but still have unmet building needs. Required local effort consists of a levy equivalent to at least five cents per hundred dollars of assessed valuation as well as available funds within a district's capital outlay and building funds and related bonding capacity. Unmet building needs are the costs of projects on a district's facilities plan as approved by the Kentucky Department of Education that remain after the application of local effort. A given district qualifies for offers of assistance based on its unmet need relative to unmet need statewide. The School Facilities Construction Commission is also charged with distributing state funds allocated to the Kentucky Education Technology System's trust fund to assist local school districts in addressing their unmet education technology needs. ===== PAGE 62 ===== ## Policy The budget includes sufficient funds to support debt service necessary to fulfill commitments made by previous sessions of the General Assembly in authorizing additional bonded indebtedness and related offers of assistance to local school districts. Restricted Funds from the Emergency and Targeted Investment Fund in the amount of $8,453,400 are included to support debt service on previously issued bonds in fiscal year 2027. The budget authorizes the School Facilities Construction Commission to make an additional $100,000,000 in new offers of assistance during the 2026-2028 biennium in anticipation of debt service availability during the 2028-2030 biennium. New General Fund debt service in the amount of $1,503,000 in fiscal year 2027 and $3,006,000 in fiscal year 2028 is included to support new bonds authorized in the capital budget. I ne Governor's budget directs unallocated bond funds from the School Facility Assistance Fund appropriated in the 2024-2026 biennial budget to Augusta Independent school system in the amount of $2,679,000 and to Marion County schools in the amount of $9,870,000 in fiscal year 2027 to supplement funding received in the 2024-26 budget needed to complete their capital projects. The Governor's budget includes additional General Fund in the amount of $5,200 in fiscal year 2027 and $10,700 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. ===== PAGE 63 =====
General Government Teachers' Retirement System
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation767,731,100846,740,7001,037,231,2001,225,339,0001,277,624,600
Budget Reserve(39,325,100)40,000,00040,000,000
Special Appropriation
Total General Fund728,406,000886,740,7001,077,231,2001,225,339,0001,277,624,600
Restricted Funds
Balance Forward184,366607,5081,174,500
Current Receipts118,756(109,944)
Non-Revenue Receipts19,068,33220,479,68620,959,90023,326,30024,418,700
Total Restricted Funds19,371,45520,977,25122,134,40023,326,30024,418,700
TOTAL SOURCE OF FUNDS747,777,455907,717,9511,099,365,6001,248,665,3001,302,043,300
EXPENDITURES BY CLASS
Personnel Costs14,834,99315,606,39117,477,80017,763,00018,055,400
Operating Expenses3,928,9544,163,8884,580,7005,487,4006,287,400
Grants Loans Benefits728,406,000886,771,1431,077,231,2001,225,339,0001,277,624,600
Capital Outlay75,90075,90075,900
Construction2,024
TOTAL EXPENDITURES747,169,946906,543,4471,099,365,6001,248,665,3001,302,043,300
EXPENDITURES BY FUND SOURCE
General Fund728,406,000886,740,7001,077,231,2001,225,339,0001,277,624,600
Restricted Funds18,763,94619,802,74722,134,40023,326,30024,418,700
TOTAL EXPENDITURES747,169,946906,543,4471,099,365,6001,248,665,3001,302,043,300
EXPENDITURES BY UNIT
Teachers' Retirement System747,169,946906,543,4471,099,365,6001,248,665,3001,302,043,300
TOTAL EXPENDITURES747,169,946906,543,4471,099,365,6001,248,665,3001,302,043,300
The Teachers' Retirement System, as defined in KRS 161.220 to 161.716, was established in 1940 to provide a broad program of retirement benefits, death and survivor benefits, medical insurance benefits, and disability benefits to its membership. Administration of the System is the responsibility of the eleven member Board of Trustees. Two of the members, the Commissioner of Education and the State Treasurer, are ex officio, serving by reason of their constitutional offices. Two members with investment experience are appointed by the Governor and subject to Senate confirmation. The members of the Retirement System elect the remaining seven trustees for four year terms and cannot exceed three consecutive terms. Four of these must be active members of the Retirement System, one must be a retired member, and two must be persons from outside the teaching profession. The Board of Trustees appoints an Executive Secretary who is responsible for the administration of the affairs of the Retirement System under policies established by the Board. Membership is comprised of all persons occupying positions in the public elementary or secondary schools for which certification is required. In addition, staff members of Western Kentucky University, Eastern Kentucky University, Morehead State University, Murray State University, Kentucky State University, professional staff of the Department of Education, Department of Workforce Development, faculty members of the School for the Deaf, the School for the Blind, as well as faculty of the state and area vocational schools are members. Membership is mandatory for all persons teaching in the public schools or other institutions covered by the statutes governing teachers' retirement. ===== PAGE 64 ===== Benefits are financed through member contributions, contributions by the state, and income accruing from the invested reserves of the system. The General Assembly has set the member contribution rate for non-university members at 12.855 percent of gross salary for members that joined the system prior to January 1, 2022 and 14.75 percent of gross salary on or after that date. Employers contribute 13.105 percent of gross salary for persons that joined the system prior to July 1, 2008, 14.105 percent for members that joined on or after July 1, 2008 but prior to January 1, 2022 and 10.75 percent for persons that joined on or after January 1, 2022. University faculty members who joined the system prior to January 1, 2022 contribute 10.4 percent of gross salary and their employer contribute 13.65 percent. University faculty members joining on or after January 1, 2022 contribute 9.775 percent of gross salary with the employer matching that amount. The employer match for Department of Education, Department of Workforce Development, and university employees is budgeted within these respective budget units and is then transferred to the Teachers' Retirement System. Funding for the employer match on behalf of local school district members is provided as an adjunct to the Support Education Excellence in Kentucky program (SEEK) within the Department of Education. ## Policy The Governor's budget fully funds the teachers' pension and medical benefits. An additional $128,289,000 from the General Fund is provided in fiscal year 2027 over the current budget and an additional $212,193,400 in fiscal year 2028. I ne system's actuary has determined that the medical insurance trust fund's unfunded liability will be fully funded after fiscal year 2027. The Governor's budget honors the promise made when the Shared Responsibility plan began in 2010 when active local school district certified employees began contributing a portion of their paycheck to the fund, by suspending KRS 161.540(1)(e) to permit them to return the 3.75 percent to their family budgets beginning July 1, 2027 since it is no longer needed to help finance the trust fund's liabilities. In fiscal year 2025, active certified local school district employees paid in $153 million to the fund which will now be retained by them. The budget includes an additional $43,418,800 from the General Fund in fiscal year 2027 to cover the actuarially determined shortfall in employer match from prior years. The budget includes additional General Fund to support the State Cost of Shared Responsibility in the amount of $16,400,000 in fiscal year 2027 and $28,200,000 in fiscal year 2028 for a total of $100,600,000 in fiscal year 2027 and $112,400,000 in fiscal year 2028. The Governor's budget includes additional funding in the amount of $286,600 in fiscal year 2027 and $579,000 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. The Governor's budget includes additional Restricted Funds in the amount of $900,000 in fiscal year 2027 and $1,700,000 in fiscal year 2028 to fund ongoing security upgrades and required system enhancements, to the Teacher's Retirement Pathway System. ===== PAGE 65 =====
General Government Judgments
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Continuing Approp-General Fund17,279,65915,412,25314,597,300
Total General Fund17,279,65915,412,25314,597,300
TOTAL SOURCE OF FUNDS17,279,65915,412,25314,597,300
EXPENDITURES BY CLASS
Operating Expenses1,867,405815,00014,597,300
TOTAL EXPENDITURES1,867,405815,00014,597,300
EXPENDITURES BY FUND SOURCE
General Fund1,867,405815,00014,597,300
TOTAL EXPENDITURES1,867,405815,00014,597,300
EXPENDITURES BY UNIT
Judgments1,867,405815,00014,597,300
TOTAL EXPENDITURES1,867,405815,00014,597,300
The Judgments budget unit is for the payment of judgments rendered against the Commonwealth upon a claim filed pursuant to KRS 45A.240 to 45A.270. ## Policy The payment of judgments above the appropriated amount shall be paid first from the General Fund Surplus, if available, or from the Budget Reserve Trust Fund, subject to the conditions and procedures provided in the appropriations act. Also included is continuing appropriation language allowing the current year appropriation balance to carry forward through the end of the biennium to the extent that there is any balance available. ===== PAGE 66 =====
General Government\nAppropriations Not Otherwise Classified
Actual\nFY 2024Actual\nFY 2025Revised\nFY 2026Recommended\nFY 2027Recommended\nFY 2028
SOURCE OF FUNDS\nGeneral Fund
Regular Appropriation20,526,40016,750,30016,750,30017,653,30017,653,300
Mandated Allotments3,522,000
Total General Fund20,526,40020,272,30016,750,30017,653,30017,653,300
TOTAL SOURCE OF FUNDS20,526,40020,272,30016,750,30017,653,30017,653,300
EXPENDITURES BY CLASS
Personnel Costs12,864,56814,640,54712,782,40012,782,40012,782,400
Operating Expenses6,575,2535,322,7793,967,9004,870,9004,870,900
TOTAL EXPENDITURES19,439,82119,963,32616,750,30017,653,30017,653,300
EXPENDITURES BY FUND SOURCE
General Fund19,439,82119,963,32616,750,30017,653,30017,653,300
TOTAL EXPENDITURES19,439,82119,963,32616,750,30017,653,30017,653,300
EXPENDITURES BY UNIT
Attorney General Expense257,650236,911370,700370,700370,700
Board of Claims715,284166,757245,200245,200245,200
Guardian Ad Litem12,502,73314,276,83712,348,30012,348,30012,348,300
Prior Year Claims253,000253,000253,000
Unredeemed Checks Refunded3,384,2993,152,0392,461,8002,461,8002,461,800
Involuntary Commitments-ICF/MR104,185126,80063,40063,40063,400
Frankfort In Lieu of Taxes846,000200,000200,000903,000903,000
Survivor Benefits1,532,3841,692,384690,900690,900690,900
Med Malpractice Liability Ins Reimb59,89174,25677,90077,90077,900
Blanket Employee Bonds37,39637,34339,10039,10039,100
Frankfort Independent Schools In Lieu of Taxes100,000100,000
Franklin County Schools In Lieu of Taxes100,000100,000
TOTAL EXPENDITURES19,439,82119,963,32616,750,30017,653,30017,653,300
Appropriations Not Otherwise Classified (ANOC) are appropriations not related to particular programs. Each item within this category has been given program status so that expenditures can be budgeted and accounted for separately. The Attorney General Expense program is used to pay expenses associated with representation of the Commonwealth and payments for expert witnesses pursuant to KRS 12.215. The Board of Claims program pays claims adjudicated under KRS Chapter 49, the only forum through which a citizen can sue the state for alleged negligence and receive payments for damages caused by the Commonwealth. Awards under $5,000 are paid by the agency at fault. Awards over $5,000 are paid from the General Fund, and awards against the Transportation Cabinet are paid from the Road Fund. The maximum award on a single claim is $250,000, and there is a cap of $400,000 on multiple claims arising from the same incident. See also KRS 49.040-49.180. Guardians ad Litem appointed by the court under KRS 26A.140, 620.100, 625.080, 403.100, 403.727, 456.035, and 199.502 to represent minors in neglect and abuse cases and certain child custody cases are paid the statutory rate of $500 per case from the General Fund. ===== PAGE 67 ===== KRS 45.231 directs the Finance and Administration Cabinet to determine the validity of expenses incurred by an agency but not paid in the fiscal year in which the expense was incurred. If the claim is valid the Cabinet may pay for the expense from the Prior Year Claims program. All claims are limited to those incurred during the two preceding fiscal years and the total shall not exceed the available balance remaining to the credit of the applicable agency at the close of the fiscal year in which the obligations were incurred. Uncashed checks owed by the Commonwealth to a recipient are held for five years and funded by the Unredeemed Checks Refunded program when presented with a claim for reimbursement per KRS 41.370. The Involuntary Commitments program provides funding for legal representation on behalf of persons requiring involuntary hospitalization pursuant to KRS 202B.210. The Frankfort in Lieu of Taxes program provides funding for a payment by the Commonwealth to the City of Frankfort in lieu of property taxes normally owed annually per KRS 45.021. Survivor Benefits in the amount of $80,000 are paid from the General Fund to the spouses and/or children of a police officer, firefighter, emergency medical services worker, or member of the Kentucky National Guard who is killed in the line of duty pursuant to KRS 61.315. The Medical Malpractice Liability Insurance program reimburses clinics and small, regional health care providers for medical malpractice insurance premiums pursuant to KRS 304.40-075. The Blanket Employee Bonds program fund bonds secured by the Commonwealth to cover damages to the Commonwealth because of criminal actions by an employee pursuant to KRS 62.170. ## Policy Funds required to pay appropriations not otherwise classified are appropriated, and additional funds may be appropriated from the General Fund Surplus Account (KRS 48.700) or from any available balance in either the Judgments account or the Budget Reserve Trust Fund Account (KRS 48.705) by the Secretary of the Finance and Administration Cabinet as a necessary governmental expense, subject to the conditions and procedures provided in the Appropriations Act. Additional General Fund in the amount of $703,000 is included in each fiscal year to increase the Commonwealth's payment to the city of Frankfort in lieu of property taxes. This will bring the 1975 value in the current budget up to a current amount. Kentucky state government occupies a significant amount of property in Franklin county and the city of Frankfort which is exempt from property taxes that are the primary local funding source for the public schools. The Governor's budget includes $100,000 each year from the General Fund as a partial offset to the Franklin County and Frankfort Independent school systems in lieu of those taxes. ===== PAGE 68 =====
General Government
Kentucky Communications Network Authority
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation39,634,70041,454,60042,605,60040,886,90040,931,900
State Salary and Compensation Allocation85,200
Budget Reduction-General Fund(130,900)
Total General Fund39,719,90041,454,60042,474,70040,886,90040,931,900
Restricted Funds
Balance Forward964,7311,662,4437,306,6007,905,5006,018,500
Current Receipts5,780,3608,550,95410,853,0008,498,0007,519,000
Non-Revenue Receipts174,3752,090
Total Restricted Funds6,919,46610,215,48618,159,60016,403,50013,537,500
TOTAL SOURCE OF FUNDS46,639,36651,670,08660,634,30057,290,40054,469,400
EXPENDITURES BY CLASS
Personnel Costs5,820,8505,066,4708,420,2008,449,5008,494,500
Operating Expenses39,156,07338,382,50344,308,60042,822,40042,822,400
Debt Service914,500
TOTAL EXPENDITURES44,976,92344,363,47352,728,80051,271,90051,316,900
EXPENDITURES BY FUND SOURCE
General Fund39,719,90041,454,60042,474,70040,886,90040,931,900
Restricted Funds5,257,0232,908,87310,254,10010,385,00010,385,000
TOTAL EXPENDITURES44,976,92344,363,47352,728,80051,271,90051,316,900
EXPENDITURES BY UNIT
KY Communications Network44,976,92344,363,47352,728,80051,271,90051,316,900
TOTAL EXPENDITURES44,976,92344,363,47352,728,80051,271,90051,316,900
Executive Order 2015-574 created the Kentucky Communications Network Authority (KCNA), now codified in KRS Chapter 154.15. KCNA, in conjunction with the Board of the Kentucky Communications Network Authority, manages and oversees the Kentucky Wired network, the Commonwealth's open-access broadband network. Kentucky Wired is a Commonwealth public infrastructure project that was built to provide broadband service using a modern high-capacity fiber infrastructure. The primary purpose of the project is to provide broadband services to the Commonwealth's agencies and its public postsecondary education institutions. The project is designed to have the capacity and ability to service other public sector organizations, like public libraries and public school districts. The network is comprised of more than 3,000 miles of high-speed internet connectivity throughout Kentucky's 120 counties. As authorized by the 2014-2016 Executive Branch appropriations act, a public-private partnership was established to design, build, operate and maintain the network for 30 years. The partnership leveraged private sector funding for most of the construction costs of the project. The Commonwealth will shift resources from payments for current services to pay for the new and substantially faster state-owned network. The Commonwealth retains ownership of the network. KentuckyWired is unique in that it is an “open access” network. This means cities, partnerships, private companies or other groups may acquire access to these “middle-mile” lines, but the network will not be providing “last mile” services, or the lines that run to individual homes or businesses. ===== PAGE 69 ===== ## Policy The Governor's budget includes additional General Fund in the amount of $35,300 in fiscal year 2027 and $72,500 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. Funds are appropriated in an amount sufficient to cover the Availability Payment of $39,200,000 in fiscal year 2027 and $40,179,000 in fiscal year 2028. ===== PAGE 70 ===== Economic Development ===== PAGE 71 =====
Economic Development Economic Development
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation30,482,20030,251,00029,851,20029,297,50030,933,800
State Salary and Compensation
Allocation259,8001,6002,400
Current Year Appropriation4,000,000
Continuing Approp-General Fund272,076,472233,788,785208,756,500
Reorganization Adjustment230,000
Budget Reduction-General Fund(895,600)
Total General Fund307,048,472264,041,385237,714,50029,297,50030,933,800
Restricted Funds
Balance Forward26,711,20826,601,5421,664,1001,555,200352,200
Current Receipts2,542,5712,672,0113,556,9004,036,7004,101,500
Non-Revenue Receipts(25,000,000)250,000250,000250,000
Total Restricted Funds29,253,7794,273,5535,471,0005,841,9004,703,700
Federal Fund
Balance Forward4,67329,030(35,900)
Current Receipts329,38041,033,818336,900436,000401,000
Total Federal Fund334,05341,062,848301,000436,000401,000
TOTAL SOURCE OF FUNDS336,636,304309,377,786243,486,50035,575,40036,038,500
EXPENDITURES BY CLASS
Personnel Costs12,236,26213,539,16714,630,70016,758,00017,023,300
Operating Expenses2,244,5012,329,3112,684,9002,605,9002,605,900
Grants Loans Benefits58,155,32982,117,256224,615,80015,859,30015,859,300
Debt Service1,698,000634,500
Capital Outlay1,199,900
TOTAL EXPENDITURES75,533,99298,620,234241,931,40035,223,20035,488,500
EXPENDITURES BY FUND SOURCE
General Fund72,576,73254,912,015237,714,60029,297,50030,933,800
Restricted Funds2,652,2372,609,4823,915,8005,489,7004,153,700
Federal Fund305,02441,098,737301,000436,000401,000
TOTAL EXPENDITURES75,533,99298,620,234241,931,40035,223,20035,488,500
EXPENDITURES BY UNIT
Economic Development75,533,99298,620,234241,931,40035,223,20035,488,500
TOTAL EXPENDITURES75,533,99298,620,234241,931,40035,223,20035,488,500
The Cabinet for Economic Development is governed by the Kentucky Economic Development Partnership. The Partnership board has 11 voting members and two non-voting members. The 11 voting members are the Governor, who is chairman, the Secretary of the Finance and Administration Cabinet, the Secretary of the Energy and Environment Cabinet, and eight citizen members appointed by the Governor who represent all sectors of the economic development community. The Secretary of the Cabinet for Economic Development (nominated by the Economic Development Partnership and appointed by the Governor) and the Secretary of the Tourism, Arts and Heritage Cabinet serve as non-voting members. ===== PAGE 72 ===== 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. ## Policy 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. ===== PAGE 73 ===== Department of Education ===== PAGE 74 =====
Department of Education Department of Education
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation4,528,254,5004,717,497,8004,958,948,1005,300,249,2005,524,109,700
State Salary and Compensation Allocation3,564,40042,100114,400
Special Appropriation(3,330,000)5,000,0005,000,000
Continuing Approp-General Fund29,560,15331,350,88939,508,70098,310,700
Reorganization Adjustment(2,500,000)
Budget Reduction-General Fund(2,473,200)
Other(810,100)14,707,881
Total General Fund4,554,738,9534,768,598,6705,001,098,0005,398,559,9005,524,109,700
Restricted Funds
Balance Forward56,563,69651,168,89712,650,40010,939,6007,427,700
Current Receipts2,668,2113,121,1606,079,7008,206,7008,746,700
Non-Revenue Receipts17,072,421(11,471,158)19,789,50072,650,30092,953,100
Total Restricted Funds76,304,32842,818,89838,519,60091,796,600109,127,500
Federal Fund
Balance Forward2,855,1852,481,027(4,794,800)2,523,7001,940,700
Current Receipts2,023,329,6111,550,560,6971,093,214,7001,084,907,2001,084,973,200
Non-Revenue Receipts600,000(61,300)
Total Federal Fund2,026,784,7971,553,041,7231,088,358,6001,087,430,9001,086,913,900
TOTAL SOURCE OF FUNDS6,657,828,0786,364,459,2916,127,976,2006,577,787,4006,720,151,100
EXPENDITURES BY CLASS
Personnel Costs148,375,433154,886,968169,925,700171,724,800176,290,500
Operating Expenses69,991,09468,861,29167,103,50065,609,20064,582,000
Grants Loans Benefits6,194,153,3156,086,381,3285,779,173,0006,331,085,0006,476,992,800
Debt Service1,168,000536,500
Capital Outlay64,48244,505
Construction93,000
TOTAL EXPENDITURES6,413,845,3246,310,710,5926,016,202,2006,568,419,0006,717,865,300
EXPENDITURES BY FUND SOURCE
General Fund4,364,406,1234,722,705,6114,902,787,3005,398,559,9005,524,109,700
Restricted Funds25,135,43130,168,45327,580,00084,368,900108,217,900
Federal Fund2,024,303,7701,557,836,5291,085,834,9001,085,490,2001,085,537,700
TOTAL EXPENDITURES6,413,845,3246,310,710,5926,016,202,2006,568,419,0006,717,865,300
EXPENDITURES BY UNIT
Support Education Excellence in Kentucky (SEEK)3,038,244,6513,275,328,3433,402,457,0003,759,644,3003,756,331,600
Operations and Support Services605,994,286606,550,963536,867,400537,070,600538,825,200
Learning and Results Services2,769,606,3872,428,831,2872,076,877,8002,271,704,1002,422,708,500
TOTAL EXPENDITURES6,413,845,3246,310,710,5926,016,202,2006,568,419,0006,717,865,300
===== PAGE 75 ===== In enacting the Kentucky Education Reform Act (KERA), the 1990 General Assembly provided for a reconstituted Department of Education to implement KERA along with existing programs. In accordance with KRS 156.148, the Department of Education is headed by a Commissioner of Education appointed by the Kentucky Board of Education. ===== PAGE 76 =====
Department of Education
Support Education Excellence in Kentucky (SEEK)
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation3,195,808,6003,261,950,5003,365,742,0003,759,644,3003,756,331,600
Other14,707,88136,715,000
Total General Fund3,195,808,6003,276,658,3813,402,457,0003,759,644,3003,756,331,600
Federal Fund
Balance Forward59,95959,95959,900
Non-Revenue Receipts(59,900)
Total Federal Fund59,95959,959
TOTAL SOURCE OF FUNDS3,195,868,5593,276,718,3403,402,457,0003,759,644,3003,756,331,600
EXPENDITURES BY CLASS
Grants Loans Benefits3,038,244,6513,275,328,3433,402,457,0003,759,644,3003,756,331,600
TOTAL EXPENDITURES3,038,244,6513,275,328,3433,402,457,0003,759,644,3003,756,331,600
EXPENDITURES BY FUND SOURCE
General Fund3,038,244,6513,275,328,3433,402,457,0003,759,644,3003,756,331,600
Federal Fund
TOTAL EXPENDITURES3,038,244,6513,275,328,3433,402,457,0003,759,644,3003,756,331,600
EXPENDITURES BY UNIT
Base Funding1,938,679,6171,949,201,8982,058,682,5002,101,969,5002,120,831,000
Pupil Transportation274,446,300358,996,100398,884,500398,884,500398,884,500
Equalized Facilities190,575,818259,751,241232,575,900298,930,200273,117,100
Tier I Equalization172,584,047235,688,542224,613,500251,849,500238,638,400
National Board Certification Salary Supplement3,548,6763,385,3604,655,5004,655,5004,655,500
Vocational Education Transportation7,833,1007,833,1007,833,1007,833,1007,833,100
Audiologist & Speech Language Pathologists2,047,0932,252,1022,312,0002,312,0002,312,000
Local District Teachers' Retirement Match448,530,000458,220,000467,900,000529,410,000541,260,000
SEEK - Star Academy5,000,0005,000,00010,000,000
Certified and Classified Salary Increase158,800,000158,800,000
TOTAL EXPENDITURES3,038,244,6513,275,328,3433,402,457,0003,759,644,3003,756,331,600
Over the 2026-2028 biennium, the funding for the SEEK program will increase by 11.6 percent over the enacted fiscal year 2026 budget. The majority of the increase is directed to base per pupil guarantee, salary increases for certified and classified staff, and teachers' retirement contributions. The budget includes an increase in the base per pupil guarantee by 2.5 percent each year, or 5 percent over the biennium, from $4,586 per student to $4,701 per student in fiscal year 2027 and $4,818 per student in fiscal year 2028. The Governor's budget includes $158.8 million each year to fund a 3 percent pay increase in fiscal year 2026-27 for all full-time school district employees. For certified staff, the combination of this 3 percent pay increase and the retention of their 3.75 percent payroll contribution in fiscal year 2028 to the Teachers' Retirement medical insurance fund will result in a 6.9 percent pay increase over the two years. ===== PAGE 77 ===== The equalization of school district local tax levies dedicated to capital improvements continues to be a growing part of the SEEK budget. An additional $66.9 million in fiscal year 2027 and $41.1 million in fiscal year 2028 is included in Equalized Facilities Funding. The base budget includes General Fund in the amount of $5,000,000 in each fiscal year to support a three-year pilot program of five Star Academy schools. The budget includes an additional $5,000,000 for a total of $10,000,000 in fiscal year 2028 for the three-year pilot program of five Star Academy schools. The following elements comprise the SEEK budget for fiscal years 2027 and 2028:
CategoryFY 2027FY 2028
Base Funding$ 2,101,969,500$ 2,120,831,000
Pupil Transportation$ 398,884,500$ 398,884,500
Tier I Funding$ 251,849,500$ 238,638,400
Teachers' Retirement Contributions$ 529,410,000$ 541,260,000
Equalized Facilities Funding$ 298,930,200$ 273,117,100
Vocational Transportation$ 7,833,100$ 7,833,100
National Board Salary Supplement$ 4,655,500$ 4,655,500
Audio/Speech Path Salary Supplement$ 2,312,000$ 2,312,000
Star Academy$ 5,000,000$ 10,000,000
Certified and Classified Salary Increase$ 158,800,000$ 158,800,000
===== PAGE 78 =====
Department of Education Operations and Support Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation64,606,60066,455,80067,042,60064,912,60066,972,500
State Salary and Compensation Allocation850,90033,40077,600
Special Appropriation(3,500,000)
Continuing Approp-General Fund12,364,7123,506,943448,500
Budget Reduction-General Fund(825,600)
Other(810,100)
Total General Fund73,512,11269,996,14366,743,10064,912,60066,972,500
Restricted Funds
Balance Forward42,618,17339,196,7663,864,4002,491,6001,348,600
Current Receipts54,705710,3032,429,7004,281,7004,296,700
Non-Revenue Receipts290,656(28,342,435)789,5001,143,8001,168,800
Total Restricted Funds42,963,53411,564,6337,083,6007,917,1006,814,100
Federal Fund
Balance Forward166,812(590,832)(185,100)
Current Receipts531,464,704532,978,177465,718,800465,589,500465,807,800
Non-Revenue Receipts(1,400)
Total Federal Fund531,631,517532,387,345465,532,300465,589,500465,807,800
TOTAL SOURCE OF FUNDS648,107,163613,948,121539,359,000538,419,200539,594,400
EXPENDITURES BY CLASS
Personnel Costs22,239,48122,423,22326,972,40027,918,80028,742,400
Operating Expenses20,976,04423,552,57326,627,80026,394,30027,178,500
Grants Loans Benefits561,610,761560,492,166483,267,200482,757,500482,904,300
Debt Service1,168,00083,000
TOTAL EXPENDITURES605,994,286606,550,963536,867,400537,070,600538,825,200
EXPENDITURES BY FUND SOURCE
General Fund70,005,16966,278,26066,743,10064,912,60066,972,500
Restricted Funds3,766,7687,700,2774,592,0006,568,5006,044,900
Federal Fund532,222,349532,572,425465,532,300465,589,500465,807,800
TOTAL EXPENDITURES605,994,286606,550,963536,867,400537,070,600538,825,200
EXPENDITURES BY UNIT
Commissioner's Office/Board of Education3,219,6343,296,9003,088,7003,193,9003,261,200
Finance & Operations551,551,806553,117,935493,970,600494,372,900495,899,500
Legal Services1,197,400977,8001,100,4001,156,8001,203,500
Education Technology38,387,00038,415,70038,259,20038,347,00038,461,000
===== PAGE 79 =====
West Ky State Aid Funding for Emergencies (SAFE) Fund8,047,6693,058,405448,500
EKY SAFE Fund3,590,7777,684,223
TOTAL EXPENDITURES605,994,286606,550,963536,867,400537,070,600538,825,200
The Operations and Support Services program area consists of the Office of Finance and Operations, the Office of Education Technology, the Office of Legal Services, Commissioner of Education, the Kentucky Board of Education, the West Kentucky State Aid Funding for Emergencies, and the East Kentucky State Aid Funding for Emergencies. ## Policy The Governor's budget includes additional funding in the amount of $399,000 in fiscal year 2027 and $812,800 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 $307,200 and $625,900, respectively. ===== PAGE 80 =====
Operations and Support Services Commissioner's Office/Board of Education
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation3,089,0003,296,9003,244,1003,193,9003,261,200
State Salary and Compensation Allocation130,634
Budget Reduction-General Fund(155,400)
Total General Fund3,219,6343,296,9003,088,7003,193,9003,261,200
TOTAL SOURCE OF FUNDS3,219,6343,296,9003,088,7003,193,9003,261,200
EXPENDITURES BY CLASS
Personnel Costs3,035,6343,112,9003,036,6003,151,8003,219,100
Operating Expenses184,000184,00052,10042,10042,100
TOTAL EXPENDITURES3,219,6343,296,9003,088,7003,193,9003,261,200
EXPENDITURES BY FUND SOURCE
General Fund3,219,6343,296,9003,088,7003,193,9003,261,200
TOTAL EXPENDITURES3,219,6343,296,9003,088,7003,193,9003,261,200
The 1990 General Assembly, as part of the Kentucky Education Reform Act (KERA), provided in KRS 156.148 for the appointment of a Commissioner of Education by the Kentucky Board of Education (KBE) to serve as the chief state school officer. The Kentucky Board of Education consists of 15 members. The governor appoints 11 voting members – four represent the state at large and seven represent the Supreme Court districts. The remaining four members, the Secretary of the Education and Labor Cabinet, the President of the Council on Postsecondary Education (CPE), an active elementary or secondary school teacher, and a high school student, serve as non-voting members. Each member serves a four-year term and may be reappointed. The Kentucky Board of Education members elect a board chair and vice chair at the beginning of each fiscal year. The Commissioner of Education's qualifications and compensation are set by the Kentucky Board of Education. The Commissioner serves at the pleasure of the Board and is appointed for a term not to exceed four (4) years. The Commissioner is responsible for carrying out all duties assigned by the legislature; for executing education policy as directed by the State Board; and directing the work of all persons employed by the Department of Education. ===== PAGE 81 =====
Department of Education Operations and Support Services Finance & Operations
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation18,708,40023,792,40024,344,60022,364,90024,196,800
State Salary and Compensation Allocation445,0668,40056,200 (404,500)
Budget Reduction-General Fund
Other(2,000)
Total General Fund19,153,46623,798,80023,996,30022,364,90024,196,800
Restricted Funds
Balance Forward2,500,0142,669,3843,721,2002,491,6001,348,600
Current Receipts54,705710,2242,429,7004,281,7004,296,700
Non-Revenue Receipts290,656357,565782,700993,8001,018,800
Total Restricted Funds2,845,3753,737,1726,933,6007,767,1006,664,100
Federal Fund
Balance Forward165,384(592,260)(186,500)
Current Receipts531,464,704532,978,177465,718,800465,589,500465,807,800
Total Federal Fund531,630,089532,385,917465,532,300465,589,500465,807,800
TOTAL SOURCE OF FUNDS553,628,930559,921,889496,462,200495,721,500496,668,700
EXPENDITURES BY CLASS
Personnel Costs12,882,04713,076,42317,651,20018,278,70018,874,300
Operating Expenses2,903,9445,583,4738,875,2008,711,2009,495,400
Grants Loans Benefits534,597,815534,375,039467,444,200467,383,000467,529,800
Debt Service1,168,00083,000
TOTAL EXPENDITURES551,551,806553,117,935493,970,600494,372,900495,899,500
EXPENDITURES BY FUND SOURCE
General Fund19,153,46620,529,45523,996,30022,364,90024,196,800
Restricted Funds175,99116,0544,442,0006,418,5005,894,900
Federal Fund532,222,349532,572,425465,532,300465,589,500465,807,800
TOTAL EXPENDITURES551,551,806553,117,935493,970,600494,372,900495,899,500
EXPENDITURES BY UNIT
Finance & Operations8,683,5918,307,55412,476,90012,714,30013,691,300
District Support6,925,2278,720,14012,497,70012,577,90012,888,400
School & Community Nutrition535,942,988536,090,241468,996,000469,080,700469,319,800
TOTAL EXPENDITURES551,551,806553,117,935493,970,600494,372,900495,899,500
The Office of Finance and Operations consists of the following divisions: the Division of Budget and Financial Management, the Division of District Support, the Division of Resource Management, and the Division of School and Community Nutrition. The Division of Budget and Financial Management supervises the department's annual and biennial budget creation, budget analysis and forecasting, expenditure authorizations, personnel approvals, and allotment as well as appropriation adjustments. The Division also supervises expenditure and accounting transactions, purchasing and document preparation, and pre-audit functions. The Division serves as agency liaison with the Auditor of Public Accounts, the Finance and Administration Cabinet, the Office of State Budget Director, and the Legislative Research Commission budget staff. ===== PAGE 82 ===== The Division of District Support distributes state SEEK funds to local school districts and provides districts with assistance on salary schedules, data management, facility management, and budgeting. Staff of the Division work with various Department of Education, Council for Postsecondary Education, and Professional Standards Board program areas in analyzing data and determining requirements for data entered in the Department's enterprise data system. The Division also reviews local school district facility plans and compiles information on school district construction needs for the School Facilities Construction Commission. The Division of Resource Management provides personnel and payroll services to Department staff. These services include the administration of the state merit system, Family Medical Leave Act, Workers' Compensation, sick leave sharing, tuition assistance, employee training, Fair Labor Standards Act, Americans with Disabilities Act, and all other related employment laws and regulations. The Division of School and Community Nutrition oversees the administration of the following National School Lunch Act and Child Nutrition Act programs in local school districts and other eligible agencies: National School Lunch program, School Breakfast program, Special Milk program, Child Care Food program, Summer Food Service program, and the Nutrition Education and Training program. ## Policy The base budget in each fiscal year includes General Fund for the following programs: $5 million in each fiscal year for the Educators Employment Liability Insurance Program for the purpose of providing educators employment liability insurance to protect all certified employees of Kentucky public schools from liability for judgments or settlements that are in excess of the coverage provided in KRS 160.105. $492,300 in each fiscal year for the Blind/Deaf Residential Travel Program $1,000,000 in each fiscal year to pay the cost of Advanced Placement and International Baccalaureate examinations for qualifying students and $2,600,000 in each fiscal year to pay the cost of Advanced Placement examinations. $3,584,000 in each fiscal year for the School Food Services Program $500,000 in each fiscal year to support the evaluation process for the classification of primary and secondary school buildings ===== PAGE 83 =====
Department of Education Operations and Support Services Legal Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,155,000977,800997,9001,006,8001,053,500
State Salary and Compensation Allocation42,400
Budget Reduction-General Fund(47,500)
Total General Fund1,197,400977,800950,4001,006,8001,053,500
Restricted Funds
Balance Forward118,159118,159143,200
Current Receipts78
Non-Revenue Receipts25,0006,800150,000150,000
Total Restricted Funds118,159143,238150,000150,000150,000
TOTAL SOURCE OF FUNDS1,315,5591,121,0381,100,4001,156,8001,203,500
EXPENDITURES BY CLASS
Personnel Costs1,167,400947,8001,064,9001,121,3001,168,000
Operating Expenses30,00030,00035,50035,50035,500
TOTAL EXPENDITURES1,197,400977,8001,100,4001,156,8001,203,500
EXPENDITURES BY FUND SOURCE
General Fund1,197,400977,800950,4001,006,8001,053,500
Restricted Funds150,000150,000150,000
TOTAL EXPENDITURES1,197,400977,8001,100,4001,156,8001,203,500
The Office of Legal Services provides a variety of legal and legislative services for the Department of Education. These services include: providing in-house counsel and advice for the Department and the Kentucky Board of Education; investigating educator misconduct; representing the Department and the Kentucky Board of Education before administrative agencies and courts of law; and offering informal legal advice to local school districts. ===== PAGE 84 =====
Department of Education Operations and Support Services Education Technology
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation41,654,20038,388,70038,456,00038,347,00038,461,000
State Salary and Compensation Allocation232,80025,00021,400
Special Appropriation(3,500,000)
Budget Reduction-General Fund(218,200)
Other2,000
Total General Fund38,387,00038,415,70038,259,20038,347,00038,461,000
Federal Fund
Balance Forward1,4281,4281,400
Non-Revenue Receipts(1,400)
Total Federal Fund1,4281,428
TOTAL SOURCE OF FUNDS38,388,42838,417,12838,259,20038,347,00038,461,000
EXPENDITURES BY CLASS
Personnel Costs5,154,4005,286,1005,219,7005,367,0005,481,000
Operating Expenses17,858,10017,755,10017,665,00017,605,50017,605,500
Grants Loans Benefits15,374,50015,374,50015,374,50015,374,50015,374,500
TOTAL EXPENDITURES38,387,00038,415,70038,259,20038,347,00038,461,000
EXPENDITURES BY FUND SOURCE
General Fund38,387,00038,415,70038,259,20038,347,00038,461,000
Federal Fund
TOTAL EXPENDITURES38,387,00038,415,70038,259,20038,347,00038,461,000
EXPENDITURES BY UNIT
Education Technology4,984,9005,011,6004,907,1005,003,7005,117,700
KETS16,124,50016,126,50016,130,50016,130,50016,130,500
Kentucky Educational Network17,277,60017,277,60017,221,60017,212,80017,212,800
TOTAL EXPENDITURES38,387,00038,415,70038,259,20038,347,00038,461,000
The Office of Education Technology (OET) provides planning, administration, and quality assurance for the Kentucky Education Technology System (KETS). OET consists of three areas: the Division of School Technology Services; the Division of School Technology Planning and Project Management; and the Division of School Data Services. The Division of School Technology Planning and Project Management develops and implements the KETS Master Plan, oversees the KETS Offers of Assistance program, and manages the Kentucky Education Network (KEN). The KETS Offers of Assistance program provides school districts with state funds for education technology purchases. KEN is the wide-area-network that provides high speed network connectivity and Internet access to Kentucky school districts, the Kentucky School for the Blind, the Kentucky School for the Deaf, and the Department of Education. The Division of Engineering and Management determines which districts are eligible to receive KETS offers of assistance and submits this information to the School Facilities Construction Commission (SFCC). The SFCC distributes KETS offers of assistance to eligible districts based on each district's average daily attendance. School districts must spend the offers on appropriate education technology items or services and the districts are required to match funds dollar for dollar. The Division of School Technology Services manages the technical support Customer Service Center, oversees school networking, messaging and security services as well as supports the School District Financial Management System (MUNIS) and other systems. ===== PAGE 85 ===== The Division of School Data Services manages the Kentucky Student Information System (KSIS), Department of Education Enterprise Data Dictionary, and master reporting schedule. The Division is also responsible for handling systematic data quality issues that cross all agency and district data systems. KETS Field Services interact directly with District Technology Coordinators and school district technical staff to support the Student Technology Leadership Program (STLP), Microsoft IT Academy and other education technology programs. STLP is an education technology program focused on project-based learning to empower students in all grade levels to use technology. ===== PAGE 86 =====
Department of Education Operations and Support Services West Kentucky State Aid Funding for Emergencies (SAFE) Fund
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Continuing Approp-General Fund12,364,7123,506,943448,500
Other(810,100)
Total General Fund11,554,6123,506,943448,500
TOTAL SOURCE OF FUNDS11,554,6123,506,943448,500
EXPENDITURES BY CLASS
Grants Loans Benefits8,047,6693,058,405448,500
TOTAL EXPENDITURES8,047,6693,058,405448,500
EXPENDITURES BY FUND SOURCE
General Fund8,047,6693,058,405448,500
TOTAL EXPENDITURES8,047,6693,058,405448,500
House Bill 5 from the 2022 Regular Session appropriated $30,000,000 from the General Fund to the Department of Education for school districts impacted by the December 2021 storms and tornadoes. The funding provides necessary wrap-around services to help school children and their families recover from the impact of the storms and tornadoes, including after-school services and activities held at the school or elsewhere in the community, mental health counseling services, and outside-of-school tutoring; assistance to school districts in addressing additional transportation costs; and offers of funding for the construction and repair of school building facilities that were destroyed or severely damaged. ===== PAGE 87 =====
Department of Education Operations and Support Services East Kentucky SAFE Fund
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward40,000,00036,409,223
Non-Revenue Receipts(28,725,000)
Total Restricted Funds40,000,0007,684,223
TOTAL SOURCE OF FUNDS40,000,0007,684,223
EXPENDITURES BY CLASS
Grants Loans Benefits3,590,7777,684,223
TOTAL EXPENDITURES3,590,7777,684,223
EXPENDITURES BY FUND SOURCE
Restricted Funds3,590,7777,684,223
TOTAL EXPENDITURES3,590,7777,684,223
House Bill 1 from the 2022 Special Session appropriated $40,000,000 from the General Fund to the Department of Education for school districts impacted by the July 2022 storms and floods. The funding provides necessary wrap-around services to help school children and their families recover from the impact of the storms and floods, including after-school services and activities held at the school or elsewhere, mental health counseling services, and outside-of-school tutoring; assistance to school districts in addressing additional transportation costs; and offers of funding for the construction and repair of school building facilities that were severely damaged. ===== PAGE 88 =====
Department of Education Learning and Results Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,267,839,3001,389,091,5001,526,163,5001,475,692,3001,700,805,600
State Salary and Compensation
Allocation2,713,5008,70036,800
Special Appropriation170,0005,000,0005,000,000
Continuing Approp-General Fund17,195,44127,843,94639,060,20098,310,700
Reorganization Adjustment(2,500,000)
Budget Reduction-General Fund(1,647,600)
Other(36,715,000)
Total General Fund1,285,418,2411,421,944,1461,531,897,9001,574,003,0001,700,805,600
Restricted Funds
Balance Forward13,945,52311,972,1318,786,0008,448,0006,079,100
Current Receipts2,613,5062,410,8573,650,0003,925,0004,450,000
Non-Revenue Receipts16,781,76516,871,27719,000,00071,506,50091,784,300
Total Restricted Funds33,340,79431,254,26531,436,00083,879,500102,313,400
Federal Fund
Balance Forward2,628,4143,011,900(4,669,600)2,523,7001,940,700
Current Receipts1,491,864,9071,017,582,520627,495,900619,317,700619,165,400
Non-Revenue Receipts600,000
Total Federal Fund1,495,093,3211,020,594,420622,826,300621,841,400621,106,100
TOTAL SOURCE OF FUNDS2,813,852,3562,473,792,8302,186,160,2002,279,723,9002,424,225,100
EXPENDITURES BY CLASS
Personnel Costs126,135,952132,463,745142,953,300143,806,000147,548,100
Operating Expenses49,015,05045,308,71740,475,70039,214,90037,403,500
Grants Loans Benefits2,594,297,9032,250,560,8191,893,448,8002,088,683,2002,237,756,900
Debt Service453,500
Capital Outlay64,48244,505
Construction93,000
TOTAL EXPENDITURES2,769,606,3872,428,831,2872,076,877,8002,271,704,1002,422,708,500
EXPENDITURES BY FUND SOURCE
General Fund1,256,156,3031,381,099,0081,433,587,2001,574,003,0001,700,805,600
Restricted Funds21,368,66322,468,17522,988,00077,800,400102,173,000
Federal Fund1,492,081,4211,025,264,104620,302,600619,900,700619,729,900
TOTAL EXPENDITURES2,769,606,3872,428,831,2872,076,877,8002,271,704,1002,422,708,500
EXPENDITURES BY UNIT
Continuous Improvement & Support1,266,753,304808,961,929505,937,100438,618,100429,893,100
Special Education & Early Learning344,636,775348,111,657247,658,400314,159,100363,434,200
Educator Licensure and Effectiveness4,307,7404,917,4575,801,0005,028,7005,200,300
Assessment & Accountability27,178,23728,420,26229,101,70028,323,00028,392,500
Teaching and Learning85,460,94399,084,219153,133,700113,112,200113,143,500
===== PAGE 89 =====
Career & Technical Education & Student Transition170,605,925174,250,896171,128,200173,931,900179,263,200
Local District Health and Life Insurance850,397,267944,108,605943,186,8001,176,523,2001,279,214,800
State Schools20,266,19720,976,26120,930,90022,007,90024,166,900
TOTAL EXPENDITURES2,769,606,3872,428,831,2872,076,877,8002,271,704,1002,422,708,500
The Learning and Results Services program area consists of the following offices: Office of Continuous Improvement and Support; Office of Special Education and Early Learning; Office of Educator Licensure and Effectiveness; Office of Assessment and Accountability; Office of Teaching and Learning; and Office of Career and Technical Education. ## Policy The Governor's budget includes additional funding in the amount of $1,269,700 in fiscal year 2027 and $2,640,600 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 $838,000 and $1,742,800, respectively. ===== PAGE 90 =====
Department of Education Learning and Results Services Continuous Improvement & Support
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation73,181,40090,114,00092,685,80092,483,20092,559,800
State Salary and Compensation Allocation138,500
Budget Reduction-General Fund(293,100)
Total General Fund73,319,90090,114,00092,392,70092,483,20092,559,800
Federal Fund
Balance Forward(61,827)(251,790)(7,102,600)
Current Receipts1,193,243,441713,574,260420,647,000346,134,900337,333,300
Total Federal Fund1,193,181,614713,322,470413,544,400346,134,900337,333,300
TOTAL SOURCE OF FUNDS1,266,501,514803,436,470505,937,100438,618,100429,893,100
EXPENDITURES BY CLASS
Personnel Costs22,854,25020,975,46921,066,60021,115,60021,441,600
Operating Expenses30,702,39023,487,25024,283,70024,074,00018,809,200
Grants Loans Benefits1,213,132,331764,499,211460,586,800393,428,500389,642,300
Capital Outlay64,332
TOTAL EXPENDITURES1,266,753,304808,961,929505,937,100438,618,100429,893,100
EXPENDITURES BY FUND SOURCE
General Fund73,319,90088,536,79392,392,70092,483,20092,559,800
Federal Fund1,193,433,404720,425,136413,544,400346,134,900337,333,300
TOTAL EXPENDITURES1,266,753,304808,961,929505,937,100438,618,100429,893,100
EXPENDITURES BY UNIT
School & Program Improvement330,834,039328,003,066309,082,500293,080,600293,297,800
Continuous Improvement & Support847,455,903401,510,827112,829,10061,515,00052,575,200
Community Education & Service27,074,36218,059,03622,865,00022,862,00022,859,600
Family Resource and Youth Services Centers48,889,00048,889,00048,660,50048,660,50048,660,500
Education of State Agency Children12,500,00012,500,00012,500,00012,500,00012,500,000
TOTAL EXPENDITURES1,266,753,304808,961,929505,937,100438,618,100429,893,100
The Office of Continuous Improvement and Support includes the Division of School and Program Improvement and its District 180 Branch, the Division of Student Success and its Alternative Learning Branch, and the Division of Innovation and its Innovative Strategies Branch. The Division of School and Program Improvement implements and monitors the following federal and state programs: School-Based Decision-Making councils, Every Student Succeeds Act (ESSA); Title I, Parts A (Improving the Academic Achievement of the Disadvantaged), C (Education of Migrant Children), D (Programs for Children and Youth who are Neglected and Delinquent), F (Comprehensive School Reform), and the Stewart B. McKinney Homeless Assistance Act for the Education of Homeless Children and Youth. The Division also provides assistance to schools and districts in need of improvement through the use of diagnostic reviews and comprehensive improvement planning. The Division of Student Success provides guidance and assistance to Kentucky Alternative Education programs and ensures continuous improvement in instruction, practices and curriculum to help all Kentucky students to be college and career ready. The Division also provides assistance on school safety and safe schools data collection, bullying prevention, suicide prevention, chronic absenteeism, juvenile justice, human trafficking and Title IV, Part A, Student Support and Academic Enrichment. ===== PAGE 91 ===== The Division of Innovation promotes personalized learning for each student using new approaches to learning in hopes that these new approaches can be scaled in the future. The division carries out KDE's role in programs such as Community Education & Service, Education of State Agency Children and the Family Resource & Youth Services Centers (FRYSC). ## Policy The base budget in each fiscal year includes General Fund for the following programs: $48,660,500 for the Family Resource and Youth Services Centers Program $1,850,000 for the Community Education Program $12,500,000 for the Kentucky Educational Collaborative for State Agency Children Included in the base budget is $7,412,500 in each fiscal year to fund school-based mental health services provider full-time equivalent positions on a reimbursement basis. In accordance with all appropriation bills since the Kentucky Education Reform Act was passed in 1990, the General Fund amounts for the FRYSC program are transferred to the Cabinet for Health and Family Services, Department for Family Resource Centers and Volunteer Services, to be administered. ===== PAGE 92 =====
Department of Education
Learning and Results Services
Special Education & Early Learning
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation119,097,400119,402,400118,964,600118,987,500119,006,400
State Salary and Compensation Allocation42,100
Total General Fund119,139,500119,402,400118,964,600118,987,500119,006,400
Restricted Funds
Non-Revenue Receipts40,500,000
Total Restricted Fund40,500,000
Federal Fund
Balance Forward34,563(40,393)(920,300)
Current Receipts225,422,318227,829,281129,614,100195,171,600203,927,800
Total Federal Fund225,456,882227,788,887128,693,800195,171,600203,927,800
TOTAL SOURCE OF FUNDS344,596,382347,191,287247,658,400314,159,100363,434,200
EXPENDITURES BY CLASS
Personnel Costs4,630,3006,006,2967,037,8006,582,7006,954,500
Operating Expenses1,401,5592,001,4012,641,1002,729,8002,839,100
Grants Loans Benefits338,604,915339,650,460237,979,500304,846,600353,640,600
Debt Service453,500
TOTAL EXPENDITURES344,636,775348,111,657247,658,400314,159,100363,434,200
EXPENDITURES BY FUND SOURCE
General Fund119,139,500119,402,400118,964,600118,987,500119,006,400
Restricted Funds40,500,000
Federal Fund225,497,275228,709,257128,693,800195,171,600203,927,800
TOTAL EXPENDITURES344,636,775348,111,657247,658,400314,159,100363,434,200
EXPENDITURES BY UNIT
Special Education & Early Learning226,239,375229,714,257129,261,000195,758,700204,531,200
Extended School Services23,916,30023,916,30023,916,30023,916,30023,916,300
State Preschool84,481,10084,481,10084,481,10084,484,100124,986,700
Gifted & Talented10,000,00010,000,00010,000,00010,000,00010,000,000
TOTAL EXPENDITURES344,636,775348,111,657247,658,400314,159,100363,434,200
The Office of Special Education and Early Learning consists of the Division of IDEA Monitoring and Results, the Division of State Schools and the Division of IDEA Implementation and Preschool. This Office oversees several educational programs and funds. The Extended Learning Services or Extended School Services (ESS) Fund was established by KRS 158.070 to provide struggling learners with additional instructional time and assistance to achieve their learning goals. The program offers instructional time outside regular school hours and takes many forms including after-school and before-school instruction, evening sessions, Saturday learning activities, summer programs, and learning inter-sessions in year-round schools. The Gifted and Talented Fund provides support to school districts for educational services to students who are gifted and talented. ===== PAGE 93 ===== The Office of Special Education and Early Learning provides schools with assistance in the development and implementation of services for children and youth with disabilities, including services associated with the federal Individuals with Disabilities Education Act. Program areas include Individuals with Disabilities Education, Preschool Special Education, and Special Education Program Improvement. The Preschool program provides grants to local school districts for the education of four-year-old children whose families meet qualifying poverty guidelines as well as three and four-year-old children with developmental delays or other disabilities. ## Policy The Governor's budget includes Restricted Funds of $40,500,000 in fiscal year 2028 for Pre-K for All. The base budget in each fiscal year includes General Fund for the following programs: $10,000,000 for the Gifted and Talented Program $23,916,300 for the Extended School Services Program $84,481,100 for the Preschool Program ===== PAGE 94 =====
Department of Education Learning and Results Services Educator Licensure and Effectiveness
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation2,482,6002,671,2002,837,600866,6002,944,100
State Salary and Compensation Allocation67,200
Budget Reduction-General Fund(61,600)
Total General Fund2,549,8002,671,2002,776,000866,6002,944,100
Restricted Funds
Balance Forward4,883,5474,762,8144,063,1003,038,100582,500
Current Receipts1,637,2071,546,5942,000,0001,700,0001,800,000
Non-Revenue Receipts6,50013,300
Total Restricted Funds6,520,7546,309,4086,063,1004,744,6002,395,800
Federal Fund
Balance Forward(25,803)(25,803)(25,800)
Current Receipts25,800
Total Federal Fund(25,803)(25,803)
TOTAL SOURCE OF FUNDS9,044,7518,954,8058,839,1005,611,2005,339,900
EXPENDITURES BY CLASS
Personnel Costs3,266,8273,837,2472,944,0003,457,6003,593,600
Operating Expenses433,545388,3132,351,0001,065,1001,100,700
Grants Loans Benefits607,368691,897506,000506,000506,000
TOTAL EXPENDITURES4,307,7404,917,4575,801,0005,028,7005,200,300
EXPENDITURES BY FUND SOURCE
General Fund2,549,8002,671,2002,776,000866,6002,944,100
Restricted Funds1,757,9402,246,2573,025,0004,162,1002,256,200
Federal Fund
TOTAL EXPENDITURES4,307,7404,917,4575,801,0005,028,7005,200,300
EXPENDITURES BY UNIT
Educator Licensure and Effectiveness4,307,7404,917,4575,801,0005,028,7005,200,300
TOTAL EXPENDITURES4,307,7404,917,4575,801,0005,028,7005,200,300
The Office of Educator Licensure and Effectiveness has two divisions, the Division of Educator Preparation and Certification and the Division of Educator Recruitment and Development. The Office is responsible for overseeing educator preparation, certification, recruitment, retention and professional learning. ===== PAGE 95 =====
Department of Education Learning and Results Services Teaching and Learning
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation56,231,40059,654,00060,099,70064,112,30064,144,800
State Salary and Compensation
Allocation78,500
Special Appropriation5,000,0005,000,000
Continuing Approp-General Fund17,195,44127,843,94639,060,200
Reorganization Adjustment(2,500,000)
Budget Reduction-General Fund(26,200)
Total General Fund71,005,34192,497,946104,133,70064,112,30064,144,800
Federal Fund
Balance Forward(436,302)161,535103,200103,20090,200
Current Receipts43,497,38845,588,16549,000,00048,986,90048,974,500
Non-Revenue Receipts600,000
Total Federal Fund43,661,08645,749,70149,103,20049,090,10049,064,700
TOTAL SOURCE OF FUNDS114,666,427138,247,647153,236,900113,202,400113,209,500
EXPENDITURES BY CLASS
Personnel Costs7,381,54610,740,51116,810,80015,563,00015,711,900
Operating Expenses404,0282,748,1793,519,0003,540,7003,540,700
Grants Loans Benefits77,675,36885,595,530132,803,90094,008,50093,890,900
TOTAL EXPENDITURES85,460,94399,084,219153,133,700113,112,200113,143,500
EXPENDITURES BY FUND SOURCE
General Fund41,961,39253,437,709104,133,70064,112,30064,144,800
Federal Fund43,499,55145,646,51049,000,00048,999,90048,998,700
TOTAL EXPENDITURES85,460,94399,084,219153,133,700113,112,200113,143,500
EXPENDITURES BY UNIT
Learning and Results Services
Programs18,800,00024,500,00024,500,00023,500,00023,500,000
Read to Achieve13,584,11613,465,42325,835,20015,936,60015,936,600
Read to Succeed3,721,2236,316,74933,829,90011,000,70011,001,400
Math Achievement4,001,7533,908,2418,399,6005,019,0005,019,000
Numeracy Counts2,048,8957,951,1005,000,0005,000,000
Teaching and Learning45,353,85148,844,91052,617,90052,655,90052,686,500
TOTAL EXPENDITURES85,460,94399,084,219153,133,700113,112,200113,143,500
The Office of Teaching and Learning is responsible for providing leadership, support and services to Kentucky's school districts to enable them to effectively implement standards for student achievement in all academic areas. The Division of Academic Program Standards provides necessary information, resources and guidance to assist districts as they design standards-based curriculum that promotes highly effective teaching, learning and assessment practices. The Read to Achieve Fund provides grants to schools to implement research-based reading diagnostic and intervention programs for struggling readers within the state primary program. The early reading intervention program selected by the funded school must be based on reliable, replicable research and offer short-term intensive one-on-one or small group instruction in essential skills necessary for reading proficiency. The Learning and Results Services Programs consist of a variety of grant programs. ===== PAGE 96 ===== The Mathematics Achievement Fund provides two-year renewable grants to local school districts for training teachers in diagnostic assessment and intervention skills. To qualify, a district must employ standards-based and research-based math instructional practices, use intervention and support services to supplement regular classroom instruction, and provide intervention services to primary program and other students at risk of mathematics failure based on ongoing assessments of their needs. The Instructional Resources/Textbook Fund provides support to local school districts to obtain instructional material for students in kindergarten through eighth grades. ## Policy The base budget in each fiscal year includes General Fund for the following programs: $1,900,000 for AdvanceKentucky $100,000 for the Hearing and Speech Center $100,000 for the Heuser Hearing and Language Academy $1,675,500 for the Jobs for America's Graduates Program $500,000 for the Kentucky Alliance of Boys & Girls Clubs $5,019,000 for the Mathematics Achievement Fund $15,936,600 for the Read to Achieve Program $11,000,000 for the Read to Succeed Program $2,000,000 for Save the Children $1,200,000 for the Statewide Reading Research Center $700,000 for Teach for America $500,000 for the Visually Impaired Preschool Services Program $1,500,000 vendor-provided online computer science courses The base budget includes General Fund of $15,000,000 in each fiscal year for the Center for School Safety. The base budget includes General Fund of $18,000,000 in each fiscal year to assist local school districts in funding salaries for school resource officers. ===== PAGE 97 =====
Department of Education\nLearning and Results Services\nAssessment & Accountability
Actual\nFY 2024Actual\nFY 2025Revised\nFY 2026Recommended\nFY 2027Recommended\nFY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation19,357,40023,362,90022,163,70022,214,00022,283,500
State Salary and Compensation
Allocation160,6008,70036,800\n(63,200)
Budget Reduction-General Fund
Other(1,562,200)
Total General Fund19,518,00021,809,40022,137,30022,214,00022,283,500
Federal Fund
Balance Forward753,677802,821855,400
Current Receipts7,709,3816,663,4976,109,0006,109,0006,109,000
Total Federal Fund8,463,0587,466,3186,964,4006,109,0006,109,000
TOTAL SOURCE OF FUNDS27,981,05829,275,71829,101,70028,323,00028,392,500
EXPENDITURES BY CLASS
Personnel Costs22,521,10724,421,02624,375,70023,597,00023,666,500
Operating Expenses4,657,1303,999,236832,000832,000832,000
Grants Loans Benefits3,894,0003,894,0003,894,000
TOTAL EXPENDITURES27,178,23728,420,26229,101,70028,323,00028,392,500
EXPENDITURES BY FUND SOURCE
General Fund19,518,00021,809,40022,137,30022,214,00022,283,500
Federal Fund7,660,2376,610,8626,964,4006,109,0006,109,000
TOTAL EXPENDITURES27,178,23728,420,26229,101,70028,323,00028,392,500
The Office of Assessment and Accountability consists of the Division of Accountability Data and Analysis and the Division of Assessment and Accountability Support and is responsible for developing and implementing Kentucky's system of assessing progress by students, schools, and districts. The Office of Assessment and Accountability also oversees the implementation of testing and data requirements enacted by Senate Bill 1 of the 2017 Regular Session of the General Assembly. The Division of Assessment and Accountability Support coordinates the logistics of implementing the assessment program at the district level. This involves oversight of contractors during the production of test materials, the coordination and distribution of assessment materials to districts, return of materials to the vendor for scoring as well as online test administration. The Division of Accountability Data and Analysis manages the data results from the state-required assessments. This division generates and manages data necessary to report assessment results on which accountability ratings are based. ## Policy The base budget includes General Fund in the amount of $1,200,000 in each fiscal year to support the academic content standards review process. The base budget includes General Fund in the amount of $1,093,300 in each fiscal year for statewide assessment services costs. ===== PAGE 98 =====
Department of Education
Learning and Results Services
State Schools
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation18,983,60020,829,30020,919,90021,109,00021,630,800
State Salary and Compensation Allocation1,120,200
Budget Reduction-General Fund(439,000)
Total General Fund20,103,80020,829,30020,480,90021,109,00021,630,800
Restricted Funds
Balance Forward1,455,9861,818,4042,010,0002,160,0001,886,100
Current Receipts524,815332,282600,000625,000650,000
Non-Revenue Receipts6,320
Total Restricted Funds1,980,8012,157,0052,610,0002,785,0002,536,100
TOTAL SOURCE OF FUNDS22,084,60122,986,30523,090,90023,894,00024,166,900
EXPENDITURES BY CLASS
Personnel Costs19,462,50519,060,30719,582,60020,595,90021,742,600
Operating Expenses803,6911,950,7921,348,3001,412,0002,424,300
Grants Loans Benefits(34,838)
TOTAL EXPENDITURES20,266,19720,976,26120,930,90022,007,90024,166,900
EXPENDITURES BY FUND SOURCE
General Fund20,103,80020,829,30020,480,90021,109,00021,630,800
Restricted Funds162,397146,961450,000898,9002,536,100
TOTAL EXPENDITURES20,266,19720,976,26120,930,90022,007,90024,166,900
EXPENDITURES BY UNIT
Kentucky School for the Blind8,634,9839,055,1709,098,6009,427,30010,041,300
Kentucky School for the Deaf11,631,21311,921,09111,832,30012,580,60014,125,600
TOTAL EXPENDITURES20,266,19720,976,26120,930,90022,007,90024,166,900
The Kentucky School for the Blind, located in Louisville, Kentucky, provides instructional and residential programs for blind and visually impaired students throughout Kentucky. All instructional programs follow the Kentucky Academic Standards and Academic Expectations and are geared to meet students' individualized needs as set forth in their Individual Education Program (IEP). The Kentucky School for the Blind residential program offers housing, after-school supervision, health center services, daily living skills experiences and leisure and recreational activities, which help in the development of social skills for independence. The Kentucky School for the Blind Outreach Services provide assessments, consultations and professional development opportunities for school districts and teachers of the visually impaired. The Kentucky Instructional Materials Resource Center (KIMRC), a part of Outreach Services, purchases and distributes textbooks for school districts using federal quota funds. The KIMRC is responsible for the federal quota registration for the state. Braille production and the Parent Resource Center also are provided through Outreach Services. The Kentucky School for the Deaf, located in Danville, Kentucky, provides educational services to deaf children who cannot be served by local school districts. The School's educational program consists of appropriate classroom instruction, life skills, physical education, and vocational training. Students receive instruction in accordance with their Individual Education Plan (IEP) that emphasizes language and communication skills development. Students at the Kentucky School for the Deaf are housed in campus dormitories supervised by house parents. The students receive practical living skill instruction in personal safety, hygiene, and independent living skills. ===== PAGE 99 ===== The Kentucky School for the Deaf also supports an Outreach Program which provides consultative, technical, and evaluative support to local school districts on how to provide effective educational services to deaf children attending school in a local district. The Kentucky School for the Deaf is the designated Statewide Educational Resource Center on Deafness. ===== PAGE 100 =====
Department of Education Learning and Results Services Career & Technical Education & Student Transition
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation127,890,900128,741,400130,279,700130,207,200131,292,400
State Salary and Compensation Allocation1,106,400
Special Appropriation170,000
Budget Reduction-General Fund(764,500)
Other1,562,200
Total General Fund129,167,300130,303,600129,515,200130,207,200131,292,400
Restricted Funds
Balance Forward7,605,9905,390,9132,712,9003,249,9003,610,500
Current Receipts451,484531,9821,050,0001,600,0002,000,000
Non-Revenue Receipts16,781,76516,864,95719,000,00019,000,00019,000,000
Total Restricted Funds24,839,24022,787,85222,762,90023,849,90024,610,500
Federal Fund
Balance Forward2,364,1052,365,5292,420,5002,420,5001,850,500
Current Receipts21,992,37923,927,31722,100,00022,915,30022,820,800
Total Federal Fund24,356,48426,292,84624,520,50025,335,80024,671,300
TOTAL SOURCE OF FUNDS178,363,023179,384,298176,798,600179,392,900180,574,200
EXPENDITURES BY CLASS
Personnel Costs46,019,41747,422,89051,135,80052,894,20054,437,400
Operating Expenses10,612,70510,733,5465,500,6005,561,3007,857,500
Grants Loans Benefits113,880,653116,049,955114,491,800115,476,400116,968,300
Capital Outlay15044,505
Construction93,000
TOTAL EXPENDITURES170,605,925174,250,896171,128,200173,931,900179,263,200
EXPENDITURES BY FUND SOURCE
General Fund129,166,645130,303,600129,515,200130,207,200131,292,400
Restricted Funds19,448,32720,074,95819,513,00020,239,40024,609,700
Federal Fund21,990,95423,872,33822,100,00023,485,30023,361,100
TOTAL EXPENDITURES170,605,925174,250,896171,128,200173,931,900179,263,200
EXPENDITURES BY UNIT
Area Technology Center State Funds19,135,34119,438,94218,000,00018,426,80021,467,000
Career & Technical Education & Student Transition151,470,584154,811,954153,128,200155,505,100157,796,200
TOTAL EXPENDITURES170,605,925174,250,896171,128,200173,931,900179,263,200
The Office of Career and Technical Education provides occupational-specific education and training for Kentucky's citizens in order to develop a skilled and versatile workforce. The main responsibility is providing education and technical training to youth and incumbent workers that match the needs of Kentucky business and industry. The Office of Career and Technical Education manages 50 area technology centers. These area technology centers prepare students for postsecondary technical training leading to a certificate or an associate's degree, academic pursuits at a four-year college or university, or entry into the labor market with an industry-recognized qualification. The Office of Career and Technical Education is also responsible for programs under the Carl D. Perkins Vocational and Applied Technology Education Act of 1998 (Public Law 105-332). ===== PAGE 101 ===== ## Policy The base budget includes General Fund in the amount of $654,500 in each fiscal year to support U.S. Army Junior Reserve Officers' Training Corps pilot program consultants. ===== PAGE 102 =====
Department of Education Learning and Results Services Local District Health and Life Insurance
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation850,614,600944,316,3001,078,212,5001,025,712,5001,246,943,800
Continuing Approp-General Fund(36,715,000)98,310,700
Other
Total General Fund850,614,600944,316,3001,041,497,5001,124,023,2001,246,943,800
Restricted Funds
Non-Revenue Receipts52,500,00032,271,000
Total Restricted Funds52,500,00032,271,000
TOTAL SOURCE OF FUNDS850,614,600944,316,3001,041,497,5001,176,523,2001,279,214,800
EXPENDITURES BY CLASS
Grants Loans Benefits850,397,267944,108,605943,186,8001,176,523,2001,279,214,800
TOTAL EXPENDITURES850,397,267944,108,605943,186,8001,176,523,2001,279,214,800
EXPENDITURES BY FUND SOURCE
General Fund850,397,267944,108,605943,186,8001,124,023,2001,246,943,800
Restricted Fund52,500,00032,271,000
TOTAL EXPENDITURES850,397,267944,108,605943,186,8001,176,523,2001,279,214,800
EXPENDITURES BY UNIT
Local District Life Insurance1,173,6671,183,3051,391,0001,391,0001,391,000
Local District Health Insurance849,223,600942,925,300941,795,8001,175,132,2001,277,823,800
TOTAL EXPENDITURES850,397,267944,108,605943,186,8001,176,523,2001,279,214,800
## Local District Health Insurance Employees of local school districts have the option of participating in the Kentucky Employees' Health Plan (KEHP). KEHP is a self-insured program providing health insurance benefits to the employees and retirees of the Commonwealth of Kentucky, as well as local school boards, local health departments, and other quasi governmental agencies. School district employees make up the largest portion of public employees covered by the KEHP. ## Local District Life Insurance Fund Funds in this program are used to pay, on behalf of school districts, the employer's portion of life insurance premiums to the Personnel Cabinet for full-time, qualified school district employees. ## Policy The health insurance budget for fiscal year 2027 includes $98,310,700 in unexpended funds carried over from fiscal year 2026. In fiscal years 2027 and 2028, the health insurance budget is supplemented with a portion of the prior year collections from sports wagering revenue, in the amount of $52,500,000 in fiscal year 2027 and $32,271,000 in fiscal year 2028. ===== PAGE 103 ===== Education and Labor ===== PAGE 104 =====
Education and Labor
Education and Labor
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation84,992,80089,010,00087,103,90087,279,40088,485,900
State Salary and Compensation Allocation1,937,5008,50024,700
Special Appropriation3,500,000
Continuing Approp-General Fund7,487,3237,966,9723,701,100
Budget Reduction-General Fund(1,960,000)
Reorganization Adjustment2,500,000
Total General Fund100,417,62396,985,47288,869,70087,279,40088,485,900
Tobacco Fund
Tobacco Settlement - Phase I1,400,0001,200,0001,200,0001,200,0001,200,000
Continuing Approp-Tob Settlement13,741,82511,754,7318,418,3005,112,2002,556,100
Other983,326773,670
Total Tobacco Fund16,125,15113,728,4019,618,3006,312,2003,756,100
Restricted Funds
Balance Forward33,143,25355,653,47281,976,70041,255,30040,366,400
Current Receipts86,475,40081,752,66670,274,20069,180,40069,885,900
Non-Revenue Receipts101,022,459102,903,76297,962,300136,174,400137,130,700
Total Restricted Funds220,641,111240,309,901250,213,200246,610,100247,383,000
Federal Fund
Balance Forward(8,919,593)(4,104,667)(11,229,400)
Current Receipts459,741,479523,500,680589,731,400558,674,200561,248,600
Non-Revenue Receipts(342,341)(495,973)
Total Federal Fund450,479,545518,900,040578,502,000558,674,200561,248,600
TOTAL SOURCE OF FUNDS787,663,431869,923,814927,203,200898,875,900900,873,600
EXPENDITURES BY CLASS
Personnel Costs311,062,657307,478,401346,427,100339,226,400344,743,200
Operating Expenses50,355,60850,875,58552,889,50050,995,00050,994,700
Grants Loans Benefits352,255,397426,710,319480,811,000465,120,100464,617,100
Capital Outlay1,715,8421,858,462708,100611,900611,900
Construction62,27644,054
TOTAL EXPENDITURES715,451,780786,966,821880,835,700855,953,400860,966,900
EXPENDITURES BY FUND SOURCE
General Fund91,509,50893,194,21088,869,70087,279,40088,485,900
Tobacco Fund4,370,4215,310,0544,506,1003,756,1003,756,100
Restricted Funds164,987,639158,333,092208,957,900206,243,700207,476,300
Federal Fund454,584,212530,129,464578,502,000558,674,200561,248,600
TOTAL EXPENDITURES715,451,780786,966,821880,835,700855,953,400860,966,900
===== PAGE 105 =====
EXPENDITURES BY UNIT
General Administration and Program
Support49,158,46652,433,85761,673,30046,955,50047,445,100
Commission on Proprietary407,544294,685550,600542,300547,300
Deaf and Hard of Hearing2,362,5622,299,0602,544,3002,324,8002,352,600
Kentucky Educational Television18,798,00019,398,73020,073,50019,462,00019,808,600
Environmental Education Council540,009679,030966,500966,100973,000
Libraries and Archives16,495,87618,536,52121,461,80018,363,80018,519,800
Workforce Development426,536,748496,235,564536,976,800533,816,100535,466,700
Workplace Standards12,910,41413,907,40415,108,40014,599,80014,877,100
Workers' Claims50,017,78948,385,62763,230,30062,584,40062,967,500
Occupational Safety and Health
Review Commission623,752675,646822,200807,800819,300
Workers' Compensation Funding
Commission73,920,65369,780,98689,323,60088,372,40089,074,400
Workers' Compensation Nominating Committee1,1001,1001,100
Disability Determinations63,679,96864,339,71168,103,30067,157,30068,114,400
TOTAL EXPENDITURES715,451,780786,966,821880,835,700855,953,400860,966,900
Governor Beshear created the Education and Labor Cabinet, merging the Education and Workforce Development Cabinet and the Labor Cabinet in November of 2021. These agencies work together to give citizens an opportunity to experience transformational change by obtaining a great education and quality training that can lead to a meaningful career and greater prosperity for their families. The merger resulted in a more robust cabinet to give the state an opportunity for cross-training employees, and adding resiliency, while ensuring efforts are not duplicated. Combining these two cabinets has allowed the state to develop a comprehensive workforce development strategy to meet the needs of many economic development projects and better compete for federal funds. Allowing the Cabinet to be more responsive to workforce issues by putting together offices that do similar things. Attached to the Education and Labor Cabinet for administrative purposes are the Kentucky Occupational Safety and Health Review Commission, State Labor Relations Board, Workers' Compensation Funding Commission, Kentucky Occupational Safety and Health Standards Board, Kentucky Environmental Education Council, Kentucky Geographic Education Board, Board of Directors for the Center for School Safety, Kentucky Commission on Proprietary Education, Kentucky Employers' Mutual Insurance Authority, Workers' Compensation Nominating Committee, Kentucky Commission on the Deaf and Hard of Hearing, Kentucky Educational Television, Kentucky Work Ready Skills Advisory Committee, and Foundation for Adult Education. The following agencies comprise the Education and Labor Cabinet: Office of the Secretary Department of Education Department of Workers' Claims Department of Workplace Standards Office of Unemployment Insurance • Kentucky Unemployment Insurance Commission Department for Libraries and Archives Office of Educational Programs • Kentucky Workforce Innovation Board Department for Disability Determination Services Department of Workforce Development ===== PAGE 106 =====
Education and Labor General Administration and Program Support
General Administration and Program Support
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation18,005,90017,131,40014,309,30013,936,00014,018,500
State Salary and Compensation
Allocation94,9002,40014,800
Special Appropriation3,500,000
Budget Reduction-General Fund(300,000)
Total General Fund21,600,80017,133,80014,024,10013,936,00014,018,500
Tobacco Fund
Tobacco Settlement - Phase I1,400,0001,200,0001,200,0001,200,0001,200,000
Current Year Appropriation
Continuing Approp-Tob Settlement13,741,82511,754,7318,418,3005,112,2002,556,100
Other983,326773,670
Total Tobacco Fund16,125,15113,728,4019,618,3006,312,2003,756,100
Restricted Funds
Balance Forward2,398,6042,987,0525,303,5001,823,1001,340,700
Current Receipts1,992,457524,047899,100908,300908,300
Non-Revenue Receipts17,450,57920,665,46020,179,30022,242,30022,609,100
Total Restricted Funds21,841,64024,176,56026,381,90024,973,70024,858,100
Federal Fund
Balance Forward(363,495)(251,237)(462,900)
Current Receipts5,250,96310,905,33919,047,2005,630,4005,664,600
Non-Revenue Receipts(798)
Total Federal Fund4,886,67010,654,10218,584,3005,630,4005,664,600
TOTAL SOURCE OF FUNDS64,454,26165,692,86268,608,60050,852,30048,297,300
EXPENDITURES BY CLASS
Personnel Costs28,333,64727,902,86534,441,10031,865,30032,349,900
Operating Expenses5,309,7584,996,8606,150,4004,895,5004,895,500
Grants Loans Benefits15,515,06119,216,36320,761,3009,970,4009,975,400
Capital Outlay317,769320,500224,300224,300
TOTAL EXPENDITURES49,158,46652,433,85761,673,30046,955,50047,445,100
EXPENDITURES BY FUND SOURCE
General Fund20,795,55017,133,80014,024,10013,936,00014,018,500
Tobacco Fund4,370,4215,310,0544,506,1003,756,1003,756,100
Restricted Funds18,854,58718,873,01624,558,80023,633,00024,005,900
Federal Fund5,137,90711,116,98718,584,3005,630,4005,664,600
TOTAL EXPENDITURES49,158,46652,433,85761,673,30046,955,50047,445,100
EXPENDITURES BY UNIT
Office of the Secretary30,185,97730,631,82434,068,20032,405,10032,863,900
Governor's Scholars1,758,7002,000,0002,000,0002,000,0002,000,000
Kentucky Center for Statistics6,603,2516,217,9607,557,1007,467,4007,489,900
Early Childhood Development6,415,78711,323,65115,498,0004,040,5004,045,600
Everybody Counts4,194,7502,260,4212,550,0001,042,5001,045,700
TOTAL EXPENDITURES49,158,46652,433,85761,673,30046,955,50047,445,100
===== PAGE 107 ===== General Administration and Program Support provides the central coordination and direction for the overall planning, management and oversight of the agencies within the Cabinet. It is responsible for policy and budget development and personnel transactions; legal services including legislative and regulatory development and oversight; a communications strategy with the public, business, and industry; economic analysis and research; accounting, purchasing, and facilities management; and information technology and other administrative support services. Partial funding for the Office of the Secretary is provided by the Kentucky Workers' Compensation Funding Commission's special assessments imposed upon workers' compensation premiums paid by employers and group self-insurers, as well as an indirect rate charged to federal grants. General Funding in this area is to support the Office of Unemployment Insurance and the Career Development Office. The following agencies and entities are attached to the Office of the Secretary for administrative purposes only: The Early Childhood Advisory Council, the Governor's School for Entrepreneurs Program, the Governor's Scholar Program, the Board of the Kentucky Center for Statistics, and the Foundation for Adult Education. The program includes the following units: I ne Uttice or the Secretary provides strategic direction and leadership to establish the focus for policy development, implementation, and program priorities. The Office coordinates Cabinet activities among its departments and agencies to ensure continuous improvement in administration and efficient service to the citizens of the Commonwealth. The Secretary serves as the Chief Executive Officer of the Cabinet and is an advisor to the Governor and the General Assembly. The Office of Legal Services is responsible for providing legal advice and representation in all matters involving the Cabinet and its agencies. In addition to legal representation, the office is responsible for drafting and/or reviewing contracts, administrative regulations, and proposed administrative or executive orders and oversight. The Office of Administrative Service is the Cabinet's chief financial and administrative office. The Division of Operations and Support Services and the Division of Fiscal Management are responsible for the management of all state-owned/state-operated facilities, equipment, and property assigned to the Cabinet, The Division of Fiscal Management is responsible for all central office purchasing, auditing and processing financial documents, compliance with the Federal Cash Management Act, federal reporting, development of the Indirect Cost Plan, monitoring and reconciliation of all financial transactions, and compliance with state and federal guidelines. The Division of Human Resources is responsible for all Cabinet personnel activities including personnel and payroll processing, providing benefits services to Cabinet employees and developing workshops and training programs for employees. The Office of Technology Services oversees and assists with the Cabinet's application development needs and serves as the central location for all Cabinet data processing programs statewide. The Office works with the Commonwealth Office of Technology to effectuate the Cabinet's information technology infrastructure objectives. The Office of Policy and Audit provides coordination and assistance for all external audits and assists in developing all Cabinet policies. Upon request, the Office conducts internal investigations of employees. The Office of Legislative Services is responsible for the coordination of the legislative process including the advancement of the Education and Labor Cabinet's legislative agenda. The Office of Communications provides internal and external communications, marketing support and media advisory services to the Cabinet, Executive Offices, Department for Workforce Investment and other Cabinet agencies. The Office interprets and disseminates information about the Cabinet and its components to employees, the media and the general public. The Office of the Kentucky Center for Statistics and the Board of the Kentucky Center for Statistics manage and oversee the Kentucky Longitudinal Data System. The System is a data repository housing early childhood through Postsecondary education, and training and employment information. The Office removes individual identifiers from the data and links information across agencies, schools, and institutions to provide a complete picture of the education-to-employment process to better inform decisions made by state and local policy makers, the general public, and other stakeholders. The office conducts studies and provides feedback about the performance of high school graduates after they go to college; the outcome of teacher preparation, college, adult education, and other programs; and develops the Kentucky County Profiles book. The Kentucky Center for Statistics Board is comprised of the heads of the five participating agencies and includes the Commissioner of the Department of Education, the President of the Kentucky Council on Postsecondary Education, the Secretary of the Education and Labor Cabinet, the Secretary of the Cabinet for Health and Family Services and the CEO/Executive Director of the Kentucky Higher Education Assistance Authority. The board is charged with developing a detailed access and use policy for data and information request, overseeing the Office and establishing its research agenda, and overseeing compliance by the Office with the federal Family Educational Rights and Privacy Act and other relevant federal and state privacy laws. The Governor's Scholars Program (GSP) is designed to motivate and empower Kentucky's brightest young people to become effective thinkers and citizen leaders with a zeal for excellence and a mind for innovation. The program provides an intensive residential summer academic and personal growth program for academically talented rising high school seniors. The scholars, chosen competitively, spend five uninterrupted weeks in the program on three college campuses. Over 2,000 applications are received at the state level each year, with approximately 1,000 students selected to attend. ===== PAGE 108 ===== The Governor's School for Entrepreneurs (GSE) is a 3-week residential summer program for rising 10th, 11th, and 12th grade students. The GSE was created through Senate Bill 296 in the 2016 Regular Session of the Kentucky General Assembly. It is a summer experiential education program for creative and enterprising students to enhance the next generation of business and economic leaders and enrich future economic development across the Commonwealth. The Early Childhood Advisory Council (KRS 200.700) was established in the Governor's Office in 2011 and reorganized to the Education and Labor Cabinet in 2019. The office coordinates development and continuing activities of Community Early Childhood Councils. The Councils work toward implementation of Kentucky's long-range strategic plan for early childhood development on the local level. The Councils build upon existing resources, foster public-private partnerships, and work within their communities toward such goals as the availability of high quality, accessible, and affordable early childhood care options. The Early Childhood Advisory Council provides financial assistance to local councils through Tobacco Funds. ## Policy The base budget in each fiscal year includes General Fund for the following programs: $2,000,000 to support the Adult Learner Program $2,000,000 to support the Heuser Hearing Institute $1,000,000 to support the Governor's School for Entrepreneurs $100,000 to support the Hope Center The budget includes additional General Fund in the amount of $220,000 in fiscal year 2027 and $225,000 in fiscal year 2028 to fund student membership dues for Future Farmers of America, a student-led organization designed to develop leadership, personal growth and career success through agricultural education. The Governor's budget includes additional funding in the amount of $368,700 in fiscal year 2027 and $757,300 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 $59,000 and $121,200, respectively. ===== PAGE 109 =====
Education and Labor Proprietary Education
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward780,057778,086916,800801,400694,300
Current Receipts405,573433,387435,200435,200435,200
Total Restricted Funds1,185,6301,211,4731,352,0001,236,6001,129,500
TOTAL SOURCE OF FUNDS1,185,6301,211,4731,352,0001,236,6001,129,500
EXPENDITURES BY CLASS
Personnel Costs370,966242,300445,900439,300444,300
Operating Expenses36,57952,385104,700103,000103,000
TOTAL EXPENDITURES407,544294,685550,600542,300547,300
EXPENDITURES BY FUND SOURCE
Restricted Funds407,544294,685550,600542,300547,300
TOTAL EXPENDITURES407,544294,685550,600542,300547,300
EXPENDITURES BY UNIT
Proprietary Education407,544294,685550,600542,300547,300
TOTAL EXPENDITURES407,544294,685550,600542,300547,300
The Kentucky Commission on Proprietary Education was established by action of the 2012 Kentucky General Assembly; it replaced the Board of Proprietary Education. The 11-member commission is charged with licensing and regulating all proprietary schools, doing business in Kentucky, other than those that offer a four year bachelor's degree. The duties of the Commission include issuing and renewing licenses to eligible proprietary schools, investigating complaints from students and schools, and administering and enforcing the provisions of KRS Chapter 165A pertaining to the conduct, operation, maintenance, and establishment of proprietary education institutions and the activities of agents of the schools. The Commission also administers the Student Protection Fund. Each licensed school is obligated to contribute to the fund which reimburses eligible students in the event a school closes, loses its accreditation, or discontinues a program. ## Policy The Governor's budget includes additional funding in the amount of $3,700 in fiscal year 2027 and $7,600 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 110 =====
Education and Labor Deaf and Hard of Hearing
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS General Fund
Regular Appropriation1,051,5001,091,1001,119,300992,9001,018,100
State Salary and Compensation Allocation31,0006,1009,900
Total General Fund1,082,5001,097,2001,129,200992,9001,018,100
Restricted Funds
Balance Forward84,811210,149248,800
Current Receipts1,405,4001,240,5581,166,3001,331,9001,334,500
Total Restricted Funds1,490,2111,450,7081,415,1001,331,9001,334,500
TOTAL SOURCE OF FUNDS2,572,7112,547,9082,544,3002,324,8002,352,600
EXPENDITURES BY CLASS
Personnel Costs1,216,3951,135,7891,621,8001,405,3001,433,100
Operating Expenses1,146,1671,163,272922,500919,500919,500
TOTAL EXPENDITURES2,362,5622,299,0602,544,3002,324,8002,352,600
EXPENDITURES BY FUND SOURCE
General Fund1,082,5001,097,2001,129,200992,9001,018,100
Restricted Funds1,280,0621,201,8601,415,1001,331,9001,334,500
TOTAL EXPENDITURES2,362,5622,299,0602,544,3002,324,8002,352,600
EXPENDITURES BY UNIT Commission on the Deaf and Hard of Hearing2,362,5622,299,0602,544,3002,324,8002,352,600
TOTAL EXPENDITURES2,362,5622,299,0602,544,3002,324,8002,352,600
In accordance with KRS 163.510, the Commission on the Deaf and Hard of Hearing advises the Governor and the General Assembly concerning policies and programs to enhance the quality and coordination of services for deaf and hard of hearing individuals in both the public and private sectors. The Commission oversees the provision of interpreter services to deaf and hard of hearing individuals; identifies and evaluates public and private entities that provide services to deaf and hard of hearing residents of Kentucky for information, referral, and advocacy services; administers a Telecommunications Access Program which provides specialized telecommunications equipment to qualified deaf, hard of hearing, and speech-impaired residents of Kentucky; assists local, state, and federal governments and public and private agencies in the development of programs for the deaf and hard of hearing; and reviews legislative programs relating to services for deaf and hard of hearing persons and conducts studies of conditions affecting the health and welfare of the deaf and hard of hearing. ## Policy The Governor's budget includes additional funding in the amount of $17,500 in fiscal year 2027 and $35,900 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 $15,900 and $32,700, respectively. ===== PAGE 111 =====
Education and Labor
Kentucky Educational Television
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation16,200,00017,641,60018,036,50017,425,00017,771,600
State Salary and Compensation Allocation561,000
Total General Fund16,761,00017,641,60018,036,50017,425,00017,771,600
Restricted Funds
Balance Forward111,973
Current Receipts2,148,9721,645,1572,037,0002,037,0002,037,000
Total Restricted Funds2,148,9721,757,1302,037,0002,037,0002,037,000
TOTAL SOURCE OF FUNDS18,909,97219,398,73020,073,50019,462,00019,808,600
EXPENDITURES BY CLASS
Personnel Costs14,923,33614,518,80214,848,60014,455,50014,802,100
Operating Expenses3,200,4354,480,5265,140,9004,922,5004,922,500
Capital Outlay657,229371,90284,00084,00084,000
Construction17,00027,500
TOTAL EXPENDITURES18,798,00019,398,73020,073,50019,462,00019,808,600
EXPENDITURES BY FUND SOURCE
General Fund16,761,00017,641,60018,036,50017,425,00017,771,600
Restricted Funds2,037,0001,757,1302,037,0002,037,0002,037,000
TOTAL EXPENDITURES18,798,00019,398,73020,073,50019,462,00019,808,600
EXPENDITURES BY UNIT
General Administration and Support5,596,4005,604,4006,312,0005,970,8006,067,800
Broadcasting and Education11,223,60011,629,29711,481,60011,389,50011,614,700
Engineering1,978,0002,165,0332,279,9002,101,7002,126,100
TOTAL EXPENDITURES18,798,00019,398,73020,073,50019,462,00019,808,600
Kentucky Educational Television (KET) was established by the Kentucky General Assembly in the early 1960s for the purpose of supporting educational excellence in the Commonwealth. The agency's mission includes service to citizens of the Commonwealth in the home, in institutions of education, and in the workplace. As required by KRS 168, the Kentucky Authority for Educational Television produces and transmits educational programming for students in public schools, state supported institutions of higher education, and others desiring broadcast programs and services. KET is divided into three program areas: General Administration and Support, Broadcasting and Education, and Engineering. The Broadcasting and Education unit acquires and produces programs and related support material which will most effectively carry out the mission and policies set by the Kentucky Authority for Educational Television. This process includes soliciting feedback from appropriate audiences and seeking input from agencies and groups such as the Kentucky Department of Education and the Higher Education Telecommunications Consortium. The unit assembles three channels of television programming: KET1 carries educational and informational programs for all Kentucky citizens; KET2 carries additional programs and repeats of important programs carried on KET1; and KETKY carries programs about Kentucky and Kentucky and overnight feeds of instructional programs for schools. KETKY also carries the Kentucky General Assembly when in session or in committee, as well as, occasional special feeds for the State Department of Education, Kentucky Community and Technical College System or other partners as needed. ===== PAGE 112 ===== Instructional programming for elementary and secondary schools directly supports the learning goals and outcomes of Kentucky's Common Core Standards, adopted in February 2010. The Broadcasting and Education unit produces interactive and other distance learning courses designed to provide equal access to a variety of learning opportunities for all students. It produces professional development opportunities for educators throughout the state and broadcasts programs designed to help people in the workplace. Acquired and/or locally produced programming services are delivered to under-educated adults, professionals in need of training, and other citizens with various needs related to their jobs and professions. The unit also produces multiple schedules of nationally- and locally-produced programs for citizens at home and in the workplace. This includes educational and public affairs programming as well as quality arts experiences for all Kentucky's. A full line-up of children's educational programs offers a quality alternative to commercial television viewing. KET's Engineering Service unit oversees the delivery of KET programs and other services. It operates and maintains a land-based broadcast network of 16 digital transmitters and three translators capable of delivering multiple channels of content and data into all parts of the state. The Engineering Service unit operates all technical equipment to specifications mandated by the Federal Communications Commission. I ne General Administration and Support unit oversees the implementation of KET's mission as directed by the Kentucky Authority for Educational Television and recommends and carries out the policies of the Authority in all matters of the agency. The unit assures that the agency is in compliance with pertinent state regulations and federal broadcast laws and works to ascertain the desires of the citizens of the Commonwealth. The unit conducts research and planning activities to verify the needs of current and potential audiences then works to assure effective, efficient, and appropriate service to those audiences. ## Policy The Governor's budget includes additional General Fund in the amount of $253,300 in fiscal year 2027 and $518,300 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 113 =====
Education and Labor Environmental Education Council
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward240,853569,7321,127,9001,354,1001,559,300
Current Receipts13,25012,15712,40012,40012,400
Non-Revenue Receipts594,412854,433750,000729,100708,300
Total Restricted Funds848,5141,436,3221,890,3002,095,6002,280,000
Federal Fund
Balance Forward(21,495)(4,339)(800)
Current Receipts278,382374,109431,100429,800429,800
Total Federal Fund256,887369,770430,300429,800429,800
TOTAL SOURCE OF FUNDS1,105,4021,806,0922,320,6002,525,4002,709,800
EXPENDITURES BY CLASS
Personnel Costs506,503623,055810,700810,500817,400
Operating Expenses33,50655,97579,50079,30079,300
Grants Loans Benefits76,30076,30076,300
TOTAL EXPENDITURES540,009679,030966,500966,100973,000
EXPENDITURES BY FUND SOURCE
Restricted Funds278,782308,433536,200536,300543,200
Federal Fund261,226370,597430,300429,800429,800
TOTAL EXPENDITURES540,009679,030966,500966,100973,000
EXPENDITURES BY UNIT
Ky Environmental Education Council540,009679,030966,500966,100973,000
TOTAL EXPENDITURES540,009679,030966,500966,100973,000
Ine Kentucky Environmental Education Council was established in 1990 by KRS 157.910 and is charged with improving the environmental literacy of all Kentuckyians. The Council provides opportunities for all Kentuckyians to understand both that environmental problems exist and how each person's actions contribute to the health of the environment. In accordance with KRS 224.10-250, the Council receives the first $150,000 in environmental fines and penalties collected by the Energy and Environment Cabinet for funding programs and activities that improve the quality of environmental education in the Commonwealth. These programs and activities include: Working with citizens, especially those engaged in environmental education, to implement the master plan for improving environmental education and environmental literacy. Working with the Kentucky Department of Education, the Education Professional Standards Board, and agencies that make up the Environmental Education Interagency Committee to establish guidelines for improving professional development in environmental education for educators. • Establishing standards for environmental education that fit within the Kentucky Department of Education’s instructional standards and help ensure balanced, ecologically-based curriculum and instruction. Working to ensure that environmental education is equitably distributed to all Kentuckians. Additionally, in accordance with KRS 224.43-505, the Council provides interest accrued on the Kentucky Pride Fund, a fund that receives environmental remediation fees charged on each ton of waste disposed of at Kentucky landfills, to the eight state public universities to operate environmental education centers. ===== PAGE 114 ===== ## Policy The Governor's budget includes additional funding in the amount of $4,100 in fiscal year 2027 and $8,300 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 115 =====
Education and Labor Libraries and Archives
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation10,944,90013,387,50013,161,00011,294,10011,927,300
State Salary and Compensation Allocation146,700
Continuing Approp-General Fund1,383,7762,218,900
Budget Reduction-General Fund(459,000)
Reorganization Adjustment2,500,000
Total General Fund13,591,60014,771,27614,920,90011,294,10011,927,300
Restricted Funds
Balance Forward8,389,8349,358,1488,782,9007,547,4005,742,200
Current Receipts2,449,5902,592,1352,215,0002,235,4002,256,600
Non-Revenue Receipts14,645(129,860)
Total Restricted Funds10,854,06911,820,42310,997,9009,782,8007,998,800
Federal Fund
Balance Forward(24,118)(450,009)(223,100)
Current Receipts2,502,1333,263,7133,313,5003,029,1003,061,800
Total Federal Fund2,478,0142,813,7043,090,4003,029,1003,061,800
TOTAL SOURCE OF FUNDS26,923,68429,405,40329,009,20024,106,00022,987,900
EXPENDITURES BY CLASS
Personnel Costs5,491,6726,624,1747,091,8006,935,8007,091,800
Operating Expenses3,988,8574,075,1593,942,9003,925,2003,925,200
Grants Loans Benefits7,009,6287,608,99610,198,9007,274,6007,274,600
Capital Outlay5,719228,192228,200228,200228,200
TOTAL EXPENDITURES16,495,87618,536,52121,461,80018,363,80018,519,800
EXPENDITURES BY FUND SOURCE
General Fund12,071,93112,462,24514,920,90011,294,10011,927,300
Restricted Funds1,495,9213,037,5113,450,5004,040,6003,530,700
Federal Fund2,928,0233,036,7663,090,4003,029,1003,061,800
TOTAL EXPENDITURES16,495,87618,536,52121,461,80018,363,80018,519,800
EXPENDITURES BY UNIT
Libraries and Archives9,799,19411,600,40211,935,90011,762,20011,918,200
Direct Local Aid6,696,6826,936,1199,525,9006,601,6006,601,600
TOTAL EXPENDITURES16,495,87618,536,52121,461,80018,363,80018,519,800
The Department for Libraries and Archives supports and promotes equitable access to quality library services and information resources, and ensures that adequate documentation of government programs is created, maintained, and available for public use. The Department is directed by three goals: To provide effective services that meet the needs of library and public records customers. To build effective and productive partnerships with other organizations and public agencies for enhanced management of and access to information and services, and • To improve employee job satisfaction and agency operations. ===== PAGE 116 ===== The Department serves both governmental agencies and the people of Kentucky directly through local public libraries. The Department also serves several distinct customer populations including the general public, the blind and physically disabled, institutionalized persons, state government personnel, state and local public agencies, and researchers needing historic public records. ===== PAGE 117 =====
Education and Labor Libraries and Archives
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation6,615,3006,777,8006,901,3005,739,4006,372,600
State Salary and Compensation Allocation146,700
Budget Reduction-General Fund(459,000)
Total General Fund6,762,0006,777,8006,442,3005,739,4006,372,600
Restricted Funds
Balance Forward5,421,4656,922,2026,710,6005,699,4004,118,100
Current Receipts1,595,2631,704,1291,392,0001,412,4001,433,600
Non-Revenue Receipts14,645(129,860)
Total Restricted Funds7,031,3738,496,4718,102,6007,111,8005,551,700
Federal Fund
Balance Forward(24,118)(450,009)(223,100)
Current Receipts2,502,1333,263,7133,313,5003,029,1003,061,800
Total Federal Fund2,478,0142,813,7043,090,4003,029,1003,061,800
TOTAL SOURCE OF FUNDS16,271,38718,087,97517,635,30015,880,30014,986,100
EXPENDITURES BY CLASS
Personnel Costs5,491,6726,624,1747,091,8006,935,8007,091,800
Operating Expenses3,988,8524,075,1593,942,9003,925,2003,925,200
Grants Loans Benefits312,952672,877673,000673,000673,000
Capital Outlay5,719228,192228,200228,200228,200
TOTAL EXPENDITURES9,799,19411,600,40211,935,90011,762,20011,918,200
EXPENDITURES BY FUND SOURCE
General Fund6,762,0006,777,8006,442,3005,739,4006,372,600
Restricted Funds109,1711,785,8362,403,2002,993,7002,483,800
Federal Fund2,928,0233,036,7663,090,4003,029,1003,061,800
TOTAL EXPENDITURES9,799,19411,600,40211,935,90011,762,20011,918,200
EXPENDITURES BY UNIT
Libraries and Archives9,799,19411,600,40211,935,90011,762,20011,918,200
TOTAL EXPENDITURES9,799,19411,600,40211,935,90011,762,20011,918,200
The Department for Libraries and Archives supports and promotes equitable access to quality library services and information resources, and ensures that adequate documentation of government programs is created, maintained, and available for public use. The Division of Archives and Records Management oversees the complex process of records management. As outlined in KRS 61.870-884, employees at publicly funded agencies and organizations have a responsibility under the law to see that the information created is maintained, organized, and accessible for use. Public employees need appropriate records to do their jobs and that information needs to be passed on in an organized fashion after the person completes their job, role, or term. Records provide detailed information about a community and in some cases, there may only be one place where this information is kept, due to disposal or destruction of various circumstances. There are four different types of records: state which works with state agencies, local which works with all local government records such as clerks or (there are hundreds), electronic which are documents that are electronic or born digital, and archival which are permanent documents. ===== PAGE 118 ===== The Division of Library Services consists of two important branches for direct service to the residents of Kentucky. The Library Development Branch is the link to Kentucky's public libraries and some of the most underserved and vulnerable audiences across the Commonwealth. The Library Collections and Circulation Branch provides direct support to state agencies, walk-in patrons to the Library and Archives building, library reference activities, and coordinates the Kentucky Talking Book Library which serves those who are blind and print-disabled of all ages. As required by KRS 171.140(5), the division provides library services through the State Library directed at two primary groups: staff in public libraries and state agency employees. Reference and research services and access to information resources are provided. Customers are located throughout the state; therefore, services are provided through e-mail, access to a toll free telephone number, and the department's website, including the online catalog and the web-based Ask-a-Librarian service. ## Policy The Governor's budget includes additional funding in the amount of $101,900 in fiscal year 2027 and $209,100 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 $60,100 and $123,400, respectively. ===== PAGE 119 =====
Education and Labor Direct Local Aid
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation4,329,6006,609,7006,259,7005,554,7005,554,700
Continuing Approp-General Fund1,383,7762,218,900
Reorganization Adjustment2,500,000
Total General Fund6,829,6007,993,4768,478,6005,554,7005,554,700
Restricted Funds
Balance Forward2,968,3692,435,9462,072,3001,848,0001,624,100
Current Receipts854,327888,006823,000823,000823,000
Total Restricted Funds3,822,6963,323,9522,895,3002,671,0002,447,100
TOTAL SOURCE OF FUNDS10,652,29611,317,42811,373,9008,225,7008,001,800
EXPENDITURES BY CLASS
Operating Expenses5
Grants Loans Benefits6,696,6776,936,1199,525,9006,601,6006,601,600
TOTAL EXPENDITURES6,696,6826,936,1199,525,9006,601,6006,601,600
EXPENDITURES BY FUND SOURCE
General Fund5,309,9315,684,4458,478,6005,554,7005,554,700
Restricted Funds1,386,7501,251,6751,047,3001,046,9001,046,900
TOTAL EXPENDITURES6,696,6826,936,1199,525,9006,601,6006,601,600
EXPENDITURES BY UNIT
Direct Local Aid831,0781,251,6751,046,9001,046,9001,046,900
Public Library Facilities Construction
Debt Assistance4,193,7084,019,6163,759,7003,054,7003,054,700
Imagination Library of Kentucky Program1,671,8961,664,8294,719,3002,500,0002,500,000
TOTAL EXPENDITURES6,696,6826,936,1199,525,9006,601,6006,601,600
Direct Local Aid provides the following services to citizens of the Commonwealth: • Federal grants are provided for continuing education, training, and demonstration projects. State aid provides cash grants to all counties with legally established public libraries. The grant funds may be used for the following purposes: purchase, upgrade, and maintenance of technology resources; purchase of library materials and equipment; maintenance and operation of bookmobiles and extension programs; staff and trustee training and compensation; building maintenance; debt service; resource-sharing; program development; and certain other local library needs and services. The Bookmobile program furnishes and replaces bookmobiles used by Kentucky's public libraries. The bookmobiles provide informational and educational resources to those who cannot physically reach a public library. Bookmobiles make regular stops at schools, daycare centers, and after-school centers. Services are also provided to the elderly and homebound individuals. Funds are also provided for maintenance and repair of existing bookmobiles. Services are provided as funds are available. • Construction grants are available through a competitive application process to assist with retiring debt associated with the construction or repair of library facilities. - Institution grants are given to two local libraries to administer library service in three state prisons. The Danville Library works with the Northpoint Training Center, and the Oldham County Public Library works with the Kentucky State Reformatory and the Kentucky Correctional Institution for Women. Kentucky Talking Book Library grants are given to assist in the delivery of services directly to blind and physically disabled library patrons. ===== PAGE 120 ===== Local Records grants provide funds to assist local governments with the protection and preservation of public records, and the improvement of local government records management programs. These services are administered by the Department's program divisions: Field Services, State Library Services, and Public Records. Direct services include cash grants, library materials, and bookmobiles. ## Policy No General Fund is provided for statutory state aid, suspending KRS 171.201. The budget includes a reduction of $705,000 in General Fund each fiscal year due to expiring Public Library Facility Construction grants under KRS 171.027. ===== PAGE 121 =====
Education and Labor Workforce Development
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation36,878,60037,927,30038,603,90041,953,90042,036,800
State Salary and Compensation Allocation1,046,400
Continuing Approp-General Fund7,487,3236,583,1961,482,200
Budget Reduction-General Fund(1,201,000)
Total General Fund45,412,32344,510,49638,885,10041,953,90042,036,800
Restricted Funds
Balance Forward20,660,53137,456,42363,253,40029,729,30031,029,900
Current Receipts5,744,5768,108,3998,255,0007,964,1007,971,000
Non-Revenue Receipts18,926,72623,056,398(28,580,200)6,104,0006,133,300
Total Restricted Funds45,331,83468,621,22042,928,20043,797,40045,134,200
Federal Fund
Balance Forward(8,472,198)(2,672,876)(8,821,500)
Current Receipts385,973,075442,187,112493,714,300479,094,700480,563,100
Non-Revenue Receipts(341,542)(496,257)
Total Federal Fund377,159,335439,017,979484,892,800479,094,700480,563,100
TOTAL SOURCE OF FUNDS467,903,491552,149,695566,706,100564,846,000567,734,100
EXPENDITURES BY CLASS
Personnel Costs108,155,250105,143,223111,542,400110,974,700113,133,300
Operating Expenses29,010,03728,020,16927,445,20026,808,60026,808,600
Grants Loans Benefits288,447,984362,170,634397,980,400396,024,000395,516,000
Capital Outlay883,951884,9858,8008,8008,800
Construction39,52616,554
TOTAL EXPENDITURES426,536,748496,235,564536,976,800533,816,100535,466,700
EXPENDITURES BY FUND SOURCE
General Fund38,829,12643,028,26638,885,10041,953,90042,036,800
Restricted Funds7,875,4115,367,80813,198,90012,767,50012,866,800
Federal Fund379,832,211447,839,490484,892,800479,094,700480,563,100
TOTAL EXPENDITURES426,536,748496,235,564536,976,800533,816,100535,466,700
EXPENDITURES BY UNIT
Commissioner's Office1,528,1051,096,7713,755,2005,221,2005,251,300
Vocational Rehabilitation107,333,789126,497,148119,214,300120,362,600121,006,800
Employer & Apprenticeship Services2,210,1631,539,9313,490,1003,584,0003,604,500
Division of Adult Education30,117,97632,956,61628,781,20027,200,20027,289,100
Workforce Innovation and Opportunity Act52,606,05552,660,61258,919,50055,907,50056,004,700
Career Development Office23,814,56127,435,79029,069,50028,813,00029,086,600
Unemployment Insurance207,035,531252,645,984291,904,300290,918,300291,382,800
Unemployment Insurance Commission1,890,5681,402,7111,842,7001,809,3001,840,900
TOTAL EXPENDITURES426,536,748496,235,564536,976,800533,816,100535,466,700
The Department of Workforce Development connects Kentucky to employment, workforce information, education, and training. The Department includes the following Offices: Career Development Office, Office of Vocational Rehabilitation, Office of Industry and Apprenticeship Services, Office of Adult Education, the Kentucky Apprenticeship Council, Division of Technical Assistance, and the Office of the Kentucky Workforce Innovation Board. ===== PAGE 122 ===== ## Policy The Governor's budget includes additional funding in the amount of $1,329,500 in fiscal year 2027 and $2,739,800 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 $359,000 and $739,700, respectively. ===== PAGE 123 =====
Education and Labor Workforce Development Commissioner's Office
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,000,0001,500,0001,500,000
Other(1,000,000)
Total General Fund1,500,0001,500,000
Restricted Funds
Balance Forward66,58343,85627,100
Current Receipts285,50237,088228,200194,200194,200
Non-Revenue Receipts570,354938,0281,204,3001,229,0001,258,300
Total Restricted Funds922,4391,018,9721,459,6001,423,2001,452,500
Federal Fund
Balance Forward(140,214)(13,428)(21,200)
Current Receipts776,30797,1832,316,8002,298,0002,298,800
Total Federal Fund636,09483,7552,295,6002,298,0002,298,800
TOTAL SOURCE OF FUNDS1,558,5331,102,7273,755,2005,221,2005,251,300
EXPENDITURES BY CLASS
Personnel Costs1,079,841884,9412,721,8004,198,9004,229,000
Operating Expenses395,513211,829609,600599,300599,300
Grants Loans Benefits52,750423,800423,000423,000
TOTAL EXPENDITURES1,528,1051,096,7713,755,2005,221,2005,251,300
EXPENDITURES BY FUND SOURCE
General Fund1,500,0001,500,000
Restricted Funds878,583991,8261,459,6001,423,2001,452,500
Federal Fund649,522104,9452,295,6002,298,0002,298,800
TOTAL EXPENDITURES1,528,1051,096,7713,755,2005,221,2005,251,300
The Office of the Commissioner provides leadership, policy direction, and management for the Department of Workforce Development. ## Policy The budget includes additional General Fund in the amount of $1,500,000 in each fiscal year to replace expiring grant funds which support the Everybody Counts Program which provides qualifying students in participating Kentucky school districts with access to education and career opportunities through education, business, and community partnerships. ===== PAGE 124 =====
Education and Labor Workforce Development Vocational Rehabilitation
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation17,710,30019,397,70019,934,30022,243,10022,231,300
State Salary and Compensation Allocation1,046,400
Other1,110,000
Total General Fund18,756,70020,507,70019,934,30022,243,10022,231,300
Restricted Funds
Balance Forward3,195,704832,9191,076,800607,300393,800
Current Receipts3,576,5233,386,0234,431,8004,395,1004,384,700
Non-Revenue Receipts(121,545)75,00075,00075,000
Total Restricted Funds6,772,2274,097,3975,583,6005,077,4004,853,500
Federal Fund
Balance Forward(2,592,870)(205,476)(412,200)
Current Receipts85,024,328102,763,05394,715,90093,435,90094,086,600
Non-Revenue Receipts847(847)
Total Federal Fund82,432,305102,556,73094,303,70093,435,90094,086,600
TOTAL SOURCE OF FUNDS107,961,232127,161,827119,821,600120,756,400121,171,400
EXPENDITURES BY CLASS
Personnel Costs48,061,91852,684,12454,895,20053,788,30054,940,500
Operating Expenses10,232,07610,299,56510,638,60010,447,90010,447,900
Grants Loans Benefits48,193,70862,625,37153,680,50056,126,40055,618,400
Capital Outlay826,847876,235
Construction19,24011,854
TOTAL EXPENDITURES107,333,789126,497,148119,214,300120,362,600121,006,800
EXPENDITURES BY FUND SOURCE
General Fund18,756,70020,507,70019,934,30022,243,10022,231,300
Restricted Funds5,939,3083,020,5614,976,3004,683,6004,688,900
Federal Fund82,637,781102,968,88894,303,70093,435,90094,086,600
TOTAL EXPENDITURES107,333,789126,497,148119,214,300120,362,600121,006,800
EXPENDITURES BY UNIT
Vocational Rehabilitation86,233,716104,446,84994,918,40096,470,70096,756,900
Carl D Perkins Vocational Training Center12,407,33512,775,15414,073,60013,831,40014,046,300
Division of Blind Services5,465,9525,567,9756,740,0006,603,9006,720,100
Kentucky Business Enterprise3,226,7863,707,1703,482,3003,456,6003,483,500
TOTAL EXPENDITURES107,333,789126,497,148119,214,300120,362,600121,006,800
===== PAGE 125 ===== The Office of Vocational Rehabilitation provides for and improves the vocational rehabilitation of citizens with physical and mental disabilities and helps eligible persons with disabilities achieve suitable employment. The Office of Vocational Rehabilitation has professional staff located at the central office as well as in Kentucky Career Centers throughout the state. Kentucky Career Centers house not only Office of Vocational Rehabilitation staff, but also staff from partner agencies such as the Office of Career Development, Department for Community Based Services, Kentucky Adult Education, Community Action, and others. Such collaboration affords consumers the convenience of a one-stop approach for accessing various types of assistance necessary for reaching employment goals. The Office employs Vocational Rehabilitation Counselors and Program Specialists who utilize vocational assessments, and counseling and guidance services to match workers with disabilities to labor market needs. An array of services is provided to assist clients with reaching employment goals. Job preparation activities include on-the-job training and vocational and classroom instruction. Job development and placement services assist the individual in obtaining and maintaining suitable employment. Transition activities support a move from the classroom to the workplace. Rehabilitation technology adapts the physical environment at work or home to meet employment needs. Follow-up services ensure that employment is progressing satisfactorily. Counselors and Specialists receive ongoing training to maintain certification and to gain knowledge of the latest developments in rehabilitation strategies and techniques. The Office also provides services for employers. Such services include preparing job-qualified applicants, conducting job analyses, recommending job modifications, and conducting disability awareness programs. Other services include disability awareness training programs and affirmative action planning and services to employees with disability-related problems. As a result, employers experience risk reduction, save resources spent on training new hires, and increase cash flow through access to tax incentives. The Rehabilitation Act of 1973, as amended, authorizes and provides federal funding for state vocational rehabilitation programs. Kentucky Revised Statutes 151B.180-210 complies with all provisions of the Act. The Code of Federal Regulations (CFR Chapter 34) and Title 781 of the Kentucky Administrative Regulations establish functions of the program. The Office also complies with relevant sections of the Kentucky Department of Education's administrative regulations. The Division of Field Services provides direct vocational rehabilitation services to eligible individuals who have physical or mental disabilities and is responsible for the actual intake and client service delivery efforts of the Office and performs certain administrative functions. The Division implements the federal Rehabilitation Act of 1973 and must make available, services appropriate to the needs of individuals with disabilities. The services enumerated in the Rehabilitation Act include: evaluation of vocational rehabilitation potential; counseling and guidance; physical and mental restoration services; vocational and other training services; maintenance; transportation; services to family members; interpreter services and note-taking services for persons who are deaf; reader services and note-taking services for persons who are blind; assistive technology and devices; personal assistance services; recruitment and training services; placement; post-employment services; occupational licenses, equipment, initial stock and supplies; and other goods and services needed for employment. The Division of Program Policy and Support provides administrative and staff functions to enhance equitable and efficient service delivery to eligible individuals with disabilities. The Branch has statewide responsibility for program planning, program evaluation, policy development, human resource development, job development and placement, and development of new and innovative programs. The Division also provides staff support to the Statewide Advisory Council for Vocational Rehabilitation and the Statewide Independent Living Council. Federal regulations require an approved State Plan for Vocational Rehabilitation Services under Title I of the Rehabilitation Act as a condition for receiving Federal Funds. The Carl D. Perkins Vocational Training Center (CDPVTC) at Thelma, Kentucky, is a multi-disciplinary residential rehabilitation facility located in Johnson County. The CDPVTC operates five major programs: Vocational Evaluation, Work Adjustment, Vocational Training, Physical Restoration/Outpatient Medical Rehabilitation, and Brain Injury Community Re-entry. All programs meet standards for program quality as documented by the Commission on Accreditation of Rehabilitation Facilities (CARF). Within these five programs, the following professional services are available: comprehensive vocational assessment, vocational training, physical therapy, occupational therapy, speech therapy, nursing services, physician services, adjustment services, psychological and psychiatric services, adult therapeutic recreation, vocational rehabilitation counseling, social services, assistive technology, transportation, and administrative services. A wide range of educational programs and services including developmental math, reading, GED test preparation, and the External Diploma Program are also available. The CDPVTC offers individualized placement services through Preparing Adults for Competitive Employment (PACE) and an Employment Relations Specialist. The Kentucky Assistive Technology Service (KATS) Network is a federally funded project operating within the Office of Vocational Rehabilitation. KATS is a statewide collaborative system of consumer-oriented organizations that help to provide assistive technologies to individuals with a variety of disabilities. ===== PAGE 126 ===== In October 2019, the Office of Vocational Rehabilitation was combined with the Office for the Blind to help utilize funding and staff to more effectively operate the multiple programs operated within the offices. As a result, the Office of the Blind is now a Division within the Office of Vocational Rehabilitation. Pursuant to KRS 163.4/0 and the Rehabilitation Act of 1973 as amended, the Division of Blind Services provides services to assist individuals who are blind and visually impaired in preparing for, obtaining, improving, and maintaining employment, as well as enabling them to live more independent and fulfilling lives. The Division provides vocational rehabilitation of blind and visually impaired Kentuckians. Vocational Rehabilitation Counselors provide vocational counseling, evaluation, physical and mental restoration, vocational and higher education training, assistive technology training, adaptive devices, orientation and mobility training, and job placement services. The Counselors receive ongoing training to maintain certification and to gain knowledge of the latest developments in rehabilitation techniques. The Office provides services through the following avenues: The Office has 10 field offices that provide direct vocational rehabilitation services to individuals with severe visual impairments. The Charles McDowell Comprehensive Rehabilitation Center for the Blind is a facility in Louisville that provides training in vocational preparation, personal adjustment services, independent living skills, orientation and mobility skills, Braille, assistive technology, career assessment, vocational planning, work adjustment, and work experience. • In Lexington and Paducah, the Division operates two volunteer recording units that provide audio-recorded materials statewide for blind and visually impaired individuals. The Business Enterprise Program trains and provides equipment to blind individuals for self-employment at vending facilities located statewide. The Independent Living Program provides training to blind and visually impaired individuals in areas that will enable them to live and function independently. Pursuant to KRS 163.470(11) and the federal Randolph-Sheppard Act, the Division of Kentucky Business Enterprise Program (BEP) establishes vending facilities on state, federal, and other property to provide remunerative employment for licensed merchants who are visually impaired. Business Enterprises staff provides management services and training to individuals who are visually impaired, identifies and develops new sites suitable for vending facilities, and repairs and replaces equipment in existing vending facilities. The Business Enterprise Program also collects a set-aside, or fee based upon the percentage of gross sales from vending operations. The visually impaired merchants currently contribute five percent of their net income to be used for their own health insurance and an IRA. The funds received from the interstate vending contract are utilized exclusively in the Business Enterprise Program. Pursuant to KRS 163.470 and Title VII of the Rehabilitation Act, independent living specialists provide short-term, individualized instruction for individuals who are blind so they may be able to function independently. Services include information, counseling, and skills training in activities of daily living. Mobility training, assistive devices, referrals to community resources in housing and transportation, and information on services offered by other agencies are provided. The service population consists mainly of individuals who are elderly or unable to work due to the severity of disabilities. The Division employs independent living specialists who are located throughout the state. These specialists make home visits and provide specially-adapted aids and appliances such as Braille and talking watches, controls on stoves, writing guides, phone dials, and canes. They provide limited instruction in household tasks such as cooking, keeping time, and learning in the home. The specialists also work with families to educate them about blindness and how to promote independent living. ## Policy The budget includes additional General Fund in the amount of $2,800,000 in fiscal year 2027 and $2,300,000 in fiscal year 2028 to meet the federally required state maintenance of effort requirement for the Vocational Rehabilitation program to ensure that Kentucky receives the full formula grant award. The federal government will deduct a dollar-for-dollar amount from the federal grant award for not meeting the maintenance of effort requirement. ===== PAGE 127 =====
Education and Labor Workforce Development Industry & Apprenticeship Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation581,100609,2001,609,6002,035,6002,041,400
Budget Reduction-General Fund(415,000)
Other(110,000)
Total General Fund581,100499,2001,194,6002,035,6002,041,400
Federal Fund
Balance Forward(907,679)(518,250)566,400
Current Receipts2,018,4922,125,3401,729,1001,548,4001,563,100
Total Federal Fund1,110,8131,607,0902,295,5001,548,4001,563,100
TOTAL SOURCE OF FUNDS1,691,9132,106,2903,490,1003,584,0003,604,500
EXPENDITURES BY CLASS
Personnel Costs1,284,3121,193,0351,474,8001,500,2001,523,400
Operating Expenses468,771346,896573,000622,100622,100
Grants Loans Benefits457,0801,442,3001,461,7001,459,000
TOTAL EXPENDITURES2,210,1631,539,9313,490,1003,584,0003,604,500
EXPENDITURES BY FUND SOURCE
General Fund581,100499,2001,194,6002,035,6002,041,400
Federal Fund1,629,0631,040,7312,295,5001,548,4001,563,100
TOTAL EXPENDITURES2,210,1631,539,9313,490,1003,584,0003,604,500
The Office of Industry and Apprenticeship Services administers the Commonwealth of Kentucky's Registered Apprenticeship program in accordance with KRS Chapter 343. Registered Apprenticeship is an innovative work-based earn and learn model that meets national standards for registration with the U.S. Department of Labor/Office of Apprenticeship and the Kentucky Office of Industry and Apprenticeship Services. It is a formal system of employee training that combines on-the-job learning with related technical instruction. It is designed to produce highly skilled workers who are fully competent in all aspects on an occupation, including knowledge, skill and proficiency on the job. With apprenticeship training, there is a written contract between the apprentice and the sponsor (employer), approved by and registered with the Commonwealth of Kentucky and the U.S. Department of Labor/Office of Apprenticeship, that specifies the length of training, school hours, and outlines the skills and competencies to be learned and the wages the apprentice will receive. Kentucky's apprenticeship program allows employers to design their own training program tailored to the company's needs as long as it meets the minimum criteria set forth by the U.S. Department of Labor. The Office closely monitors apprenticeship programs to ensure they are meeting the standards of providing quality training and instruction as mandated by 29 CFR, parts 29 and 30. The Office is actively involved with employers and industry associations to discuss the development of local and regional programs with align to the industry sectors identified by the Kentucky Workforce Investment Board. In addition to the apprenticeship program this Office assists employers in obtaining qualified workers to fill job openings as quickly as possible. This program provides counseling, employment testing, job development, referral, and placement. ## Policy The budget includes additional General Fund in the amount of $1,439,700 in each fiscal year to replace the expiring Dislocated Worker QUEST federal grant which supported the Ready for Industry program designed to prepare individuals seeking work in high-demand industries. The replacement funding will enable the continuation of the programs which assists jobseekers and businesses with workforce needs and development. ===== PAGE 128 =====
Education and Labor Workforce Development Adult Education
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation18,587,20016,920,40017,060,00016,175,20016,264,100
Continuing Approp-General Fund7,487,3236,583,1961,482,200
Budget Reduction-General Fund(786,000)
Total General Fund26,074,52323,503,59617,756,20016,175,20016,264,100
Restricted Funds
Balance Forward721,289854,296861,800982,7001,103,600
Current Receipts145,24013,440145,900145,900145,900
Total Restricted Funds866,529867,7361,007,7001,128,6001,249,500
Federal Fund
Balance Forward(964,500)(213,635)(1,247,000)
Current Receipts11,365,2829,895,94112,247,00011,000,00011,000,000
Total Federal Fund10,400,7829,682,30611,000,00011,000,00011,000,000
TOTAL SOURCE OF FUNDS37,341,83334,053,63829,763,90028,303,80028,513,600
EXPENDITURES BY CLASS
Personnel Costs5,763,2226,086,2155,711,0005,638,2005,727,100
Operating Expenses1,726,2511,595,1951,595,4001,587,5001,587,500
Grants Loans Benefits22,628,50325,275,20621,474,80019,974,50019,974,500
TOTAL EXPENDITURES30,117,97632,956,61628,781,20027,200,20027,289,100
EXPENDITURES BY FUND SOURCE
General Fund19,491,32622,021,36617,756,20016,175,20016,264,100
Restricted Funds12,2335,90825,00025,00025,000
Federal Fund10,614,41610,929,34311,000,00011,000,00011,000,000
TOTAL EXPENDITURES30,117,97632,956,61628,781,20027,200,20027,289,100
The Office of Adult Education administers state and federal funding for adult basic education and literacy programs. The Office's Kentucky Adult Education program makes available to the citizens of the Commonwealth free adult education services across the state. The vision of Kentucky Adult Education is that Kentuckyians will experience a higher standard of living and quality of life through increased educational attainment. Kentucky Adult Education provides free adult education services in all 120 counties to help Kentuckyians obtain a GED. Through Kentucky Adult Education, Kentuckyians can gain reading, math and communications skills that place them on a path to higher education and training, and earn certifications to move ahead in their careers. Local Kentucky Adult Education teachers are ready in every county to help participants break through barriers to reach their education and career goals. Currently, about 282,000 working-age Kentuckians do not have a high school or GED diploma. The mission of Kentucky Adult Education is to work with Kentuckians to improve their quality of life through education, training and employment so they can take care of themselves and their families and help their communities' and the state's economies expand and thrive. ===== PAGE 129 =====
Education and Labor Workforce Development Unemployment Insurance
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward14,845,77733,716,77858,692,50025,172,10026,041,000
Current Receipts1,280,1902,823,6551,439,1001,168,9001,168,900
Non-Revenue Receipts18,356,37222,239,915(29,859,500)4,800,0004,800,000
Total Restricted Funds34,482,33958,780,34830,272,10031,141,00032,009,900
Federal Fund
Balance Forward880,8431,371,44490,900
Current Receipts207,102,959251,772,998286,713,400285,818,300286,282,800
Non-Revenue Receipts(342,389)(495,410)
Total Federal Fund207,641,413252,649,032286,804,300285,818,300286,282,800
TOTAL SOURCE OF FUNDS242,123,753311,429,380317,076,400316,959,300318,292,700
EXPENDITURES BY CLASS
Personnel Costs31,331,35224,822,84225,856,10025,386,10025,850,600
Operating Expenses11,736,8858,989,8119,101,8008,585,8008,585,800
Grants Loans Benefits163,918,425218,824,581256,937,600256,937,600256,937,600
Capital Outlay48,8698,7508,8008,8008,800
TOTAL EXPENDITURES207,035,531252,645,984291,904,300290,918,300291,382,800
EXPENDITURES BY FUND SOURCE
Restricted Funds765,56287,8965,100,0005,100,0005,100,000
Federal Fund206,269,969252,558,088286,804,300285,818,300286,282,800
TOTAL EXPENDITURES207,035,531252,645,984291,904,300290,918,300291,382,800
EXPENDITURES BY UNIT
Unemployment Insurance
Administration40,890,91534,237,43543,005,30042,019,30042,483,800
Unemployment Insurance Benefits166,144,616218,408,549248,899,000248,899,000248,899,000
TOTAL EXPENDITURES207,035,531252,645,984291,904,300290,918,300291,382,800
The purpose of the Unemployment Insurance (UI) program is to provide temporary financial assistance to workers who become unemployed through no fault of their own, in the form of regular UI benefit payments in an amount determined by the claimant's wage history. Regular UI benefits are funded entirely through payment of the state unemployment taxes by employers determined liable under KRS Chapter 341 based upon the size and duration of payroll. The Office of Unemployment Insurance supports the claims activities within the program. In the central office, the Benefits Branch ensures and accounts for the proper payment of regular UI and federal program benefits, including the determination of chargeability to a specific employer for the cost of each regular UI claim. In cases where benefits have been drawn in error, the branch pursues restitution and, if fraud is involved, pursues prosecution of the claimant. The Benefits Branch also operates an interstate claims “local office” to serve claimants covered under Kentucky law but filing from other states. In addition to regular UI benefits, the program also administers payment of federal benefits to unemployed federal employees and discharged military personnel, those affected by changes in international trade, those affected financially in federal disaster areas, and those covered under extended unemployment compensation programs. With the exception of partial payment from state UI funds in the case of some extended benefits, these programs are financed by employer federal unemployment tax collected by the Internal Revenue Service. The administrative component of the UI program provides benefit payments based on earnings in a specific transaction period. Revenues for this program are derived from a federal unemployment tax on employers' payrolls. ===== PAGE 130 ===== KRS Chapter 341 provides the statutory authority and structure for the operation of the UI program in Kentucky. With regard to most particulars involving worker coverage, benefit entitlement, and employer liability, KRS Chapter 341 conforms to federal unemployment law derived from the Social Security Act of 1935. This state and federal statutory conformity is required in order for Kentucky employers to receive a credit against federal unemployment tax based on state tax payments, and in order for the agency to receive federal administrative funding. ## Policy Federal funding for the Unemployment Insurance program is determined by the Resource Justification Model and approved by the Federal Government. ===== PAGE 131 =====
Education and Labor Workforce Development Unemployment Insurance Commission
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Federal Fund
Balance Forward(15,598)(67,800)
Current Receipts1,906,1661,334,8651,910,5001,809,3001,840,900
Total Federal Fund1,890,5681,334,8651,842,7001,809,3001,840,900
TOTAL SOURCE OF FUNDS1,890,5681,334,8651,842,7001,809,3001,840,900
EXPENDITURES BY CLASS
Personnel Costs1,814,1221,363,6541,803,4001,770,0001,801,600
Operating Expenses76,44739,05739,30039,30039,300
TOTAL EXPENDITURES1,890,5681,402,7111,842,7001,809,3001,840,900
EXPENDITURES BY FUND SOURCE
Federal Fund1,890,5681,402,7111,842,7001,809,3001,840,900
TOTAL EXPENDITURES1,890,5681,402,7111,842,7001,809,3001,840,900
The Unemployment Insurance Commission is created by KRS 341.110. The Commission is composed of the Secretary of the Education and Labor Cabinet and two (2) members appointed by the Governor. The Secretary represents both the state and the public, one member shall be appointed as a representative of labor, and one as a representative of employers. The Commission is required to review and decide appeals from decisions of Unemployment Insurance Referees, issued after due process hearings are held to determine entitlement to unemployment insurance benefits. The Commission holds hearings concerning issues related to employer tax contributions and worker statue. The Commission has a staff of 13 employees and renders approximately 3,000 to 5,000 decisions each year. ===== PAGE 132 =====
Education and Labor Workforce Development Career Development Office
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward1,831,1792,008,5742,595,2002,967,2003,491,500
Current Receipts457,1211,848,1942,010,0002,060,0002,077,300
Total Restricted Funds2,288,2993,856,7684,605,2005,027,2005,568,800
Federal Fund
Balance Forward(1,327,741)(2,391,207)(3,739,800)
Current Receipts22,471,37024,825,57331,171,30027,277,30027,486,200
Total Federal Fund21,143,62922,434,36527,431,50027,277,30027,486,200
TOTAL SOURCE OF FUNDS23,431,92826,291,13332,036,70032,304,50033,055,000
EXPENDITURES BY CLASS
Personnel Costs15,327,86513,931,26213,301,10013,014,20013,287,800
Operating Expenses3,361,3035,194,1953,753,4003,792,6003,792,600
Grants Loans Benefits5,096,8728,305,63312,015,00012,006,20012,006,200
Capital Outlay8,235
Construction20,2864,700
TOTAL EXPENDITURES23,814,56127,435,79029,069,50028,813,00029,086,600
EXPENDITURES BY FUND SOURCE
Restricted Funds279,7251,261,6171,638,0001,535,7001,600,400
Federal Fund23,534,83626,174,17227,431,50027,277,30027,486,200
TOTAL EXPENDITURES23,814,56127,435,79029,069,50028,813,00029,086,600
The Career Development Office receives funds to administer several programs that are related to employment and job placement services, including: Veterans' Employment and Training Services, Labor Market Information, Alien Labor Certification, Agricultural Wage Surveys, and Alien Farmworker Housing Inspections. The Office administers training programs under the Trade Adjustment Assistance program and Title I of the Workforce Innovation and Opportunity Act. These programs are designed to assist the unemployed, underemployed, and persons who wish to change occupations in finding suitable employment. ===== PAGE 133 =====
Education and Labor Workforce Development
Workforce Innovation and Opportunity Act
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Federal Fund
Balance Forward(3,404,440)(702,324)(3,990,800)
Current Receipts55,308,17149,372,16062,910,30055,907,50056,004,700
Total Federal Fund51,903,73148,669,83658,919,50055,907,50056,004,700
TOTAL SOURCE OF FUNDS51,903,73148,669,83658,919,50055,907,50056,004,700
EXPENDITURES BY CLASS
Personnel Costs3,492,6184,177,1485,779,0005,678,8005,773,300
Operating Expenses1,012,7911,343,6201,134,1001,134,1001,134,100
Grants Loans Benefits48,100,64647,139,84452,006,40049,094,60049,097,300
TOTAL EXPENDITURES52,606,05552,660,61258,919,50055,907,50056,004,700
EXPENDITURES BY FUND SOURCE
Federal Fund52,606,05552,660,61258,919,50055,907,50056,004,700
TOTAL EXPENDITURES52,606,05552,660,61258,919,50055,907,50056,004,700
In accordance with the provisions of the Workforce Innovation and Opportunity Act (WIOA), Kentucky continues to consolidate, coordinate, and improve employment, training, literacy, and vocational rehabilitation programs. WIOA reforms implemented by the Commonwealth include streamlining services through a one-stop service delivery system housed in Kentucky Career Centers located throughout the state, empowering individuals by means of information and access to training resources through individual training accounts, providing universal access to core services, increasing accountability for results, ensuring a strong role for Local Workforce Investment Boards and the private sector in the workforce investment system, facilitating state and local flexibility, and improving youth services. The Workforce Innovation and Opportunity Act specifies three funding streams to the states and local areas: adults, dislocated workers, and youth. Most services for adults and dislocated workers are provided through the Kentucky Career Centers, and most customers use individual training accounts to determine which training programs and training providers best fit their needs. The Act authorizes core services available to all adults, and intensive services for unemployed individuals who are not able to find jobs through core services alone. In some cases, intensive services are available to employed workers who need more help to find or keep a job that will lead to self-sufficiency. Through WIOA, youth are prepared for postsecondary educational opportunities or employment. Programs link academic and occupational learning and include tutoring, study skills training, and instruction leading to completion of secondary school (including drop-out prevention); alternative school services; mentoring by appropriate adults; paid and unpaid work experience (i.e. internships and job shadowing); occupational skills training; leadership development; and appropriate supportive services. The 42-member Kentucky Workforce Investment Board (KWIB) serves as an advisory board to the Governor on workforce training and development issues. The KWIB is charged with creating a statewide vision for workforce development and adopting a plan to move Kentucky forward through workforce training and development. ===== PAGE 134 ===== The Department of Workplace Standards (DWS) operates under the authority of KRS Chapters 336, 337, 338, 339, 342, and 388. The Department is comprised of the Division of Wages and Hours, Division of Occupational Safety and Health Compliance, and the Division of Occupational Safety and Health Education and Training.
Education and Labor Workplace Standards
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,911,9001,831,1001,873,9001,677,5001,713,600
State Salary and Compensation Allocation57,500
Total General Fund1,969,4001,831,1001,873,9001,677,5001,713,600
Restricted Funds
Balance Forward38,20582,900
Current Receipts2760
Non-Revenue Receipts8,065,9948,060,0008,918,7008,740,8008,890,500
Total Restricted Funds8,066,0218,098,2659,001,6008,740,8008,890,500
Federal Fund
Balance Forward(33,365)(17,672)(73,700)
Current Receipts2,928,8914,004,9094,306,6004,181,5004,273,000
Total Federal Fund2,895,5273,987,2374,232,9004,181,5004,273,000
TOTAL SOURCE OF FUNDS12,930,94713,916,60215,108,40014,599,80014,877,100
EXPENDITURES BY CLASS
Personnel Costs11,012,94211,921,17013,287,60012,779,00013,056,600
Operating Expenses1,623,9601,760,2301,604,7001,604,7001,604,400
Grants Loans Benefits239,575226,005216,100216,100216,100
Capital Outlay33,937
TOTAL EXPENDITURES12,910,41413,907,40415,108,40014,599,80014,877,100
EXPENDITURES BY FUND SOURCE
General Fund1,969,4001,831,1001,873,9001,677,5001,713,600
Restricted Funds8,027,8168,015,3289,001,6008,740,8008,890,500
Federal Fund2,913,1994,060,9764,232,9004,181,5004,273,000
TOTAL EXPENDITURES12,910,41413,907,40415,108,40014,599,80014,877,100
EXPENDITURES BY UNIT
Wages & Hours1,969,4001,831,1001,873,9001,677,5001,713,600
Occupational Safety and Health10,288,56311,507,01312,446,00012,163,60012,394,300
Commissioner's Office652,452569,291788,500758,700769,200
TOTAL EXPENDITURES12,910,41413,907,40415,108,40014,599,80014,877,100
The Commissioner's Office serves as the oversight unit for all programs and functions assigned to the DWS. The Division of Occupational Safety and Health Compliance ensures that employers are preventing hazards to the safety and health of all employees arising from exposure to harmful conditions and practices in the work environment. Penalties collected by the Division are directed to the General Fund. ===== PAGE 135 ===== The Division of Occupational Safety and Health Education and Training promotes voluntary compliance with the Kentucky Occupational Safety and Health rules and regulations by providing training, on-site consultations, technical data, and technical and informational materials. The Division also gathers and monitors statistical data concerning job injuries and illnesses, and acts as a liaison between the Cabinet and the Kentucky Occupational Safety and Health Standards Board. The Division of Wages and Hours is responsible for enforcing areas of Kentucky labor laws including Kentucky Right-to-Work Act, minimum wage, overtime, prevailing wage, child labor, wage discrimination based on sex. The Department of Workplace Standards is funded with restricted agency receipts garnered through the Workers' Compensation Funding Commission under the authority of KRS 342; federal funding received from the U.S. Department of Labor, Occupational Safety and Health Administration; and General Fund dollars that support only the Division of Wages and Hours. ## Policy The Governor's budget includes additional funding in the amount of $196,700 in fiscal year 2027 and $403,900 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 $25,600 and $52,500, respectively. ===== PAGE 136 =====
Education and Labor Workers' Claims
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward111,95220,18611,000
Current Receipts344,851430,866315,000315,000315,000
Non-Revenue Receipts49,581,17247,945,49162,904,30062,269,40062,652,500
Total Restricted Funds50,037,97548,396,54463,230,30062,584,40062,967,500
TOTAL SOURCE OF FUNDS50,037,97548,396,54463,230,30062,584,40062,967,500
EXPENDITURES BY CLASS
Personnel Costs18,085,45118,715,76019,376,80018,725,20019,108,300
Operating Expenses2,044,1822,064,0933,155,5003,180,5003,180,500
Grants Loans Benefits29,822,20727,605,77440,698,00040,678,70040,678,700
Capital Outlay65,950
TOTAL EXPENDITURES50,017,78948,385,62763,230,30062,584,40062,967,500
EXPENDITURES BY FUND SOURCE
Restricted Funds50,017,78948,385,62763,230,30062,584,40062,967,500
TOTAL EXPENDITURES50,017,78948,385,62763,230,30062,584,40062,967,500
EXPENDITURES BY UNIT
Workers' Claims50,017,78948,385,62763,230,30062,584,40062,967,500
TOTAL EXPENDITURES50,017,78948,385,62763,230,30062,584,40062,967,500
The Department of Workers' Claims operates under the authority of KRS Chapters 12, 336, and 342. The Department enforces statutes with regard to workers' compensation coverage for Kentucky's 2.1 million employees, administers workers' compensation claims and ensures that employers comply with the insurance, self-insurance, and rehabilitation provisions in KRS Chapter 342. The Department of Workers' Claims is managed by the Commissioner's office. The Department is comprised of four divisions: Division of Specialist and Medical Services, Division of Claims Processing, Division of Security and Compliance, and the Division of Workers' Compensation Funds. The Office of Administrative Law Judges and the Workers' Compensation Board are attached to the Department. Division of Security and Compliance regulates individual entities that are approved to self-insure and ensure that sufficient coverage or assets are maintained to pay claims. The Division of Specialists and Medical Services focuses on constituent services to provide services to employees, employers, insurance carriers, and medical providers to assist in claiming Division of Claims Processing handles review and docket assignment for filed claims. Division of Workers' Compensation Funds is responsible for the administration and legal representation for the Special Fund and the maintenance of records regarding the payment of workers' compensation injury claims. The Workers' Compensation Board is attached to the Department for administrative purposes. The Board rules on appeals of decisions rendered by administrative law judges in the Kentucky Workers Claims' and Compensation system pursuant to KRS 342.213 and KRS 342.285. The board consists of three members appointed by the Governor to four-year terms. The Office of Administrative Law Judges conducts hearings; supervises the presentation of evidence and renders final decisions, orders or awards regarding workers' compensation claims. Funding for the Department of Workers' Claims is provided by the Kentucky Workers' Compensation Funding Commission's special assessments imposed upon workers' compensation premiums paid by employers and self-insureds. ## Policy The Governor's budget includes additional funding in the amount of $281,100 in fiscal year 2027 and $577,300 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 137 =====
Education and Labor Occupational Safety and Health Review Commission
Occupational Safety and Health Review Commission
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward46,243200
Non-Revenue Receipts577,510675,890822,000807,800819,300
Total Restricted Funds623,752675,890822,200807,800819,300
TOTAL SOURCE OF FUNDS623,752675,890822,200807,800819,300
EXPENDITURES BY CLASS
Personnel Costs586,898634,474783,000766,900778,400
Operating Expenses36,85441,17239,20040,90040,900
TOTAL EXPENDITURES623,752675,646822,200807,800819,300
EXPENDITURES BY FUND SOURCE
Restricted Funds623,752675,646822,200807,800819,300
TOTAL EXPENDITURES623,752675,646822,200807,800819,300
EXPENDITURES BY UNIT
Occupational Safety and Health Review Commission623,752675,646822,200807,800819,300
TOTAL EXPENDITURES623,752675,646822,200807,800819,300
The Kentucky Occupational Safety and Health Review Commission is an independent quasi judicial administrative agency which hears and rules on appeals of citations, pursuant to KRS 338.071 and KRS 338.081, issued by the Education and Labor Cabinet's Division of Occupational Safety and Health Compliance. The Commission receives and processes over 200 cases per year and holds hearings throughout the state. Written findings of fact, conclusions of law, and the recommended decisions issued by the hearing officers may be appealed to the Commission and then to Franklin Circuit Court. Funding for the Commission is provided by the Kentucky Workers' Compensation Funding Commission's special assessments imposed upon workers' compensation premiums paid by employers and self-insureds. ## Policy The Governor's budget includes additional funding in the amount of $8,700 in fiscal year 2027 and $17,800 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 138 =====
Education and Labor Workers' Compensation Funding Commission
Workers' Compensation Funding Commission
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward430,3684,123,5182,249,300
Current Receipts71,970,70466,241,78654,004,30053,092,50053,757,800
Non-Revenue Receipts5,643,1001,665,00033,070,00035,279,90035,316,600
Total Restricted Funds78,044,17172,030,30489,323,60088,372,40089,074,400
TOTAL SOURCE OF FUNDS78,044,17172,030,30489,323,60088,372,40089,074,400
EXPENDITURES BY CLASS
Personnel Costs73,759,91569,609,56788,995,20088,040,90088,742,900
Operating Expenses160,739165,086328,400331,500331,500
Capital Outlay6,332
TOTAL EXPENDITURES73,920,65369,780,98689,323,60088,372,40089,074,400
EXPENDITURES BY FUND SOURCE
Restricted Funds73,920,65369,780,98689,323,60088,372,40089,074,400
TOTAL EXPENDITURES73,920,65369,780,98689,323,60088,372,40089,074,400
EXPENDITURES BY UNIT
Workers' Compensation Funding Commission2,115,5532,059,4862,951,1002,911,7002,948,400
Benefit Reserve71,805,10067,721,50086,372,50085,460,70086,126,000
TOTAL EXPENDITURES73,920,65369,780,98689,323,60088,372,40089,074,400
The Workers' Compensation Funding Commission was created through the passage of House Bill 1 by the 1987 Extraordinary Session of the General Assembly. House Bill 928, passed by the 1994 General Assembly, transferred the Commission to the Labor Cabinet for administrative purposes. The agency has the public purpose of controlling, investing, and managing the funds collected pursuant to KRS Chapter 342. The Commission is governed by a seven-member Board of Directors. Board members include the Secretaries of the Education and Labor, Economic Development, and Finance and Administration Cabinets. In addition, the Governor appoints four members who represent labor, insurance companies writing workers' compensation insurance, employers, and self-insured employers and groups. The Commission collects two separate assessments as required by KRS Chapter 342. One assessment is imposed on Kentucky Workers' Compensation premiums received by all insurance carriers and group self-insurers and on a calculation-based premium equivalent for employers carrying their own risk. A second assessment is imposed on such premiums received from employers engaged in the severance or processing of coal. Assessments received are to fund and pre-fund the liabilities of the Special Fund and the Coal Workers' Pneumoconiosis Fund; finance the administration and operations of the Special Fund and the Coal Workers' Pneumoconiosis Fund; finance the administration and operations of the Funding Commission; finance all programs in the Labor Cabinet except the Division of Wages and Hours; and pay the liabilities and fund the operating budget for the Uninsured Employers' Fund in the Office of the Attorney General. These assessments are credited to the Commission's Benefit Reserve Fund, and the excess of collections over Special Fund liabilities, the Coal Workers' Pneumoconiosis Fund liabilities, and budgeted expenditures are invested according to the Commission's policies and in compliance with KRS Chapter 386. The agency may perform or contract for audits of those entities subject to assessments, and may coordinate with other governmental agencies to ensure compliance with the statutes relating to Workers' Compensation funding. During the 2017 General Assembly, HB 377 directed the transfer of assets and liabilities of the Coal Workers' Pneumoconiosis Fund. The assets and liabilities of the Coal Workers' Pneumoconiosis Fund were transferred to the Kentucky Employers' Mutual Insurance (KEMI) and the program was closed to new claims after July 1, 2017. The assessments are received by the Workers' Compensation Funding Commission and are to be transferred annually to KEMI. ===== PAGE 139 ===== The Board is required to engage a certified public accountant to conduct an annual examination of the Commission's affairs and report the findings to the Governor and the Auditor of Public Accounts. Included in the operating expenses are the fund transfers that represent the amounts the Commission will transfer to the Labor Cabinet and the Uninsured Employers' Fund for those programs statutorily supported by assessments. The Commission maintains a diverse financial long-term investment portfolio and has an agreement with the Office of Financial Management, within the Finance and Administration Cabinet, for short-term overnight investment advantages. ## Policy The Governor's budget includes additional funding in the amount of $26,900 in fiscal year 2027 and $55,300 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 140 =====
Education and Labor Workers' Compensation Nominating Committee
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Non-Revenue Receipts1,1001,1001,100
Total Restricted Funds1,1001,1001,100
TOTAL SOURCE OF FUNDS1,1001,1001,100
EXPENDITURES BY CLASS
Personnel Costs400400400
Operating Expenses700700700
TOTAL EXPENDITURES1,1001,1001,100
EXPENDITURES BY FUND SOURCE
Restricted Funds1,1001,1001,100
TOTAL EXPENDITURES1,1001,1001,100
EXPENDITURES BY UNIT
Workers' Compensation1,1001,1001,100
TOTAL EXPENDITURES1,1001,1001,100
HB 299 of the 2017 Regular Session of the General Assembly established the Workers' Compensation Nominating Committee (WCNC) in KRS 342.213. The Workers' Compensation Nominating Committee is an agency of the Commonwealth and comprised of five members appointed by the Governor. The WCNC shall make recommendations to the Governor of three qualified individuals nominated to fill the Administrative Law Judge vacant seat and Workers' Compensation Board members 30 days prior to the end of their term or sixty days if the vacancy occurs for any reason except term expiration. ===== PAGE 141 =====
Education and Labor Disability Determinations
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Current Receipts524,113934,900848,600858,100
Non-Revenue Receipts168,321110,949(102,900)
Total Restricted Funds168,321635,062832,000848,600858,100
Federal Fund
Balance Forward(4,923)(708,534)(1,647,400)
Current Receipts62,808,03662,765,49968,918,70066,308,70067,256,300
Non-Revenue Receipts284
Total Federal Fund62,803,11362,057,24967,271,30066,308,70067,256,300
TOTAL SOURCE OF FUNDS62,971,43462,692,31168,103,30067,157,30068,114,400
EXPENDITURES BY CLASS
Personnel Costs48,619,68550,407,22353,181,80052,027,60052,984,700
Operating Expenses3,764,5354,000,6593,974,9004,183,1004,183,100
Grants Loans Benefits11,220,9429,882,54810,880,00010,880,00010,880,000
Capital Outlay69,05649,28266,60066,60066,600
Construction5,750
TOTAL EXPENDITURES63,679,96864,339,71168,103,30067,157,30068,114,400
EXPENDITURES BY FUND SOURCE
Restricted Funds168,321635,062832,000848,600858,100
Federal Fund63,511,64663,704,64967,271,30066,308,70067,256,300
TOTAL EXPENDITURES63,679,96864,339,71168,103,30067,157,30068,114,400
EXPENDITURES BY UNIT
Disability Determinations63,679,96864,339,71168,103,30067,157,30068,114,400
TOTAL EXPENDITURES63,679,96864,339,71168,103,30067,157,30068,114,400
The Department for Disability Determination Services (DDS) makes disability determinations on behalf of the Commissioner of the U.S. Social Security Administration (SSA) for residents of Kentucky. Applicant eligibility for Supplemental Security Income and Social Security Disability Income is based on federal guidelines and regulations. DDS also re-evaluates the claims of disability recipients who have been selected by the SSA for a periodic review of their medical condition and can require face-to-face evidentiary hearings for those individuals who appeal an unfavorable review of their continuing eligibility. The Disability Determination Services workload depends upon a number of factors including: Congressional mandates; legal actions, or other initiatives; the number of individuals who apply for disability benefits through the Social Security Administration (SSA); and the number of claims that SSA selects for continuing review. During fiscal year 2025, DDS processed 80,115 disability claims. They expect to process 81,700 disability claims during fiscal year 2026. The DDS is funded solely by the Social Security Administration. ## Policy The Governor's budget includes additional funding in the amount of $653,400 in fiscal year 2027 and $1,341,700 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 142 ===== Energy and Environment ===== PAGE 143 =====
Energy and Environment
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation96,938,200103,031,200103,898,90094,825,40097,870,500
State Salary and Compensation
Allocation2,704,00070,700171,600
Current Year Appropriation835,500
Continuing Approp-General Fund2,353,6801,687,9601,172,900
Budget Reduction-General Fund(3,047,200)
Mandated Allotments4,597,8903,640,639
Total General Fund107,429,270108,430,499102,196,20094,825,40097,870,500
Tobacco Fund
Tobacco Settlement - Phase I3,400,0003,000,0003,000,0003,000,0003,000,000
Continuing Approp-Tob Settlement7,523,4107,268,5766,701,000
Total Tobacco Fund10,923,41010,268,5769,701,0003,000,0003,000,000
Restricted Funds
Balance Forward60,036,89080,112,937100,338,60098,938,400101,764,200
Current Receipts37,184,32837,157,44137,731,30037,930,50038,179,200
Non-Revenue Receipts72,538,91673,278,63991,527,90094,310,00094,703,000
Total Restricted Funds169,760,134190,549,018229,597,800231,178,900234,646,400
Federal Fund
Balance Forward(7,336,177)35,301,77516,030,90054,288,70079,617,400
Current Receipts146,293,133134,518,650305,265,000312,389,000314,752,200
Non-Revenue Receipts18,901,501(30,291,363)(6,535,800)(3,361,700)(3,360,700)
Total Federal Fund157,858,457139,529,062314,760,100363,316,000391,008,900
TOTAL SOURCE OF FUNDS445,971,271448,777,154656,255,100692,320,300726,525,800
EXPENDITURES BY CLASS
Personnel Costs210,486,125188,247,714210,429,900199,924,700204,406,400
Operating Expenses37,929,89337,899,73844,584,80045,478,10045,757,400
Grants Loans Benefits30,410,70740,816,27981,676,600100,119,400100,105,600
Debt Service985,0001,435,500
Capital Outlay8,344,85116,214,84712,296,40010,804,00010,541,500
Construction33,443,44639,919,656154,040,300154,612,500154,763,000
TOTAL EXPENDITURES321,600,022324,533,733503,028,000510,938,700515,573,900
EXPENDITURES BY FUND
SOURCE
General Fund105,741,310107,257,624102,196,20094,825,40097,870,500
Tobacco Fund3,654,8343,567,6099,701,0003,000,0003,000,000
Restricted Funds89,647,19790,210,314130,659,400129,414,700129,780,800
Federal Fund122,556,682123,498,187260,471,400283,698,600284,922,600
TOTAL EXPENDITURES321,600,022324,533,733503,028,000510,938,700515,573,900
EXPENDITURES BY UNIT
Secretary8,071,3849,081,16011,320,20010,461,10010,612,500
===== PAGE 144 =====
Environmental Protection136,156,705144,041,712158,641,700155,301,800157,226,500
Natural Resources142,714,016133,440,622253,906,000242,025,800243,866,200
Public Service Commission15,890,27817,116,06119,537,70017,854,30018,131,400
Office of Administrative Services12,164,54113,084,54916,003,50015,999,20016,356,400
Office of KY Nature Preserves3,212,9153,313,7554,723,5004,564,3004,626,300
Office of Energy Policy3,390,1834,455,87338,895,40064,732,20064,754,600
TOTAL EXPENDITURES321,600,022324,533,733503,028,000510,938,700515,573,900
The Energy and Environment Cabinet is charged with the protection and preservation of land, air and water resources as well as creating efficient, sustainable energy solutions. The Cabinet has two departments: Environmental Protection and Natural Resources. The Cabinet has three offices: the Office of the Secretary, the Office of Energy Policy, and the Office of Kentucky Nature Preserves. Attached for administrative purposes are the Mine Safety Review Commission and the Public Service Commission. A Secretary appointed by the Governor heads the Cabinet. The Secretary is responsible for leadership, monitoring trends and shaping a vision for the future of Kentucky's energy platform and environment. ===== PAGE 145 =====
Energy and Environment
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation4,202,7004,334,8004,448,7004,232,6004,323,700
State Salary and Compensation Allocation140,200
Total General Fund4,342,9004,334,8004,448,7004,232,6004,323,700
Restricted Funds
Balance Forward2,303,3802,483,6911,701,1001,101,000640,200
Current Receipts180,560163,6252,417,5002,661,9002,711,100
Non-Revenue Receipts1,816,6452,077,9122,048,3001,828,9001,828,900
Total Restricted Funds4,300,5844,725,2276,166,9005,591,8005,180,200
Federal Fund
Balance Forward(31,917)(130,639)(101,100)
Current Receipts1,834,3501,768,2741,868,9001,293,2001,323,200
Non-Revenue Receipts(21,481)(16,583)37,800(16,300)(16,300)
Total Federal Fund1,780,9521,621,0511,805,6001,276,9001,306,900
TOTAL SOURCE OF FUNDS10,424,43610,681,07912,421,20011,101,30010,810,800
EXPENDITURES BY CLASS
Personnel Costs7,308,3976,837,7187,388,8006,876,7007,028,400
Operating Expenses762,987751,098938,500975,400977,300
Grants Loans Benefits1,492,3442,992,9002,609,0002,606,800
TOTAL EXPENDITURES8,071,3849,081,16011,320,20010,461,10010,612,500
EXPENDITURES BY FUND SOURCE
General Fund4,342,9004,334,8004,448,7004,232,6004,323,700
Restricted Funds1,816,8933,024,1245,065,9004,951,6004,981,900
Federal Fund1,911,5911,722,2361,805,6001,276,9001,306,900
TOTAL EXPENDITURES8,071,3849,081,16011,320,20010,461,10010,612,500
EXPENDITURES BY UNIT
Administrative Hearings1,577,7591,434,5891,466,8001,287,9001,315,200
Ofc of Sec - Leg & Interg Aff - Gen Coun6,493,6257,646,5719,853,4009,173,2009,297,300
TOTAL EXPENDITURES8,071,3849,081,16011,320,20010,461,10010,612,500
The Office of the Secretary formulates and executes Cabinet policies based on administration priorities, state and federal statutes, regulations and legislative initiatives. The Office of the Secretary responds to concerns of the general public and initiates public information and education efforts. The Office of Legislative and Intergovernmental Affairs is responsible for communicating programmatic and policy information to stakeholders including the legislature and local governments. The Office of Legal Services provides litigation and other legal services for the Cabinet. The Office of Communications oversees all internal and external communications about the agency. The Office of Administrative Hearings conducts administrative appeal hearings and issues recommended orders for review by the Secretary. ===== PAGE 146 ===== ## Policy The Governor's budget includes additional funding in the amount of $122,500 in fiscal year 2027 and $251,600 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 $73,500 and $151,000, respectively. ===== PAGE 147 =====
Energy and Environment Administrative Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation5,698,3005,905,6006,052,8005,970,8006,115,500
State Salary and Compensation Allocation202,00035,300102,300\n(184,700)
Reorganization Adjustments380,400
Budget Reduction-General Fund
Total General Fund5,900,3005,940,9006,350,8005,970,8006,115,500
Restricted Funds
Balance Forward1,996,7532,491,2081,845,800404,10078,000
Current Receipts8862,6001,1001,1001,100
Non-Revenue Receipts4,353,2004,016,4244,888,3006,024,5006,584,500
Total Restricted Funds6,350,8396,510,2316,735,2006,429,7006,663,600
Federal Fund
Balance Forward(41,023)(106,254)(26,400)
Current Receipts2,394,4652,616,7143,414,8003,787,5003,844,100
Non-Revenue Receipts(55,087)(57,626)(66,800)(110,800)(110,800)
Total Federal Fund2,298,3562,452,8343,321,6003,676,7003,733,300
TOTAL SOURCE OF FUNDS14,549,49514,903,96516,407,60016,077,20016,512,400
EXPENDITURES BY CLASS
Personnel Costs10,264,53310,271,11413,410,00013,441,70013,780,800
Operating Expenses1,832,0652,518,8662,403,5002,382,5002,400,600
Capital Outlay67,943294,569190,000175,000175,000
TOTAL EXPENDITURES12,164,54113,084,54916,003,50015,999,20016,356,400
EXPENDITURES BY FUND SOURCE
General Fund5,900,3005,940,9006,350,8005,970,8006,115,500
Restricted Funds3,859,6314,664,4266,331,1006,351,7006,507,600
Federal Fund2,404,6102,479,2233,321,6003,676,7003,733,300
TOTAL EXPENDITURES12,164,54113,084,54916,003,50015,999,20016,356,400
EXPENDITURES BY UNIT
Office of Administrative Services12,164,54113,084,54916,003,50015,999,20016,356,400
TOTAL EXPENDITURES12,164,54113,084,54916,003,50015,999,20016,356,400
The Office of Administrative Services was established effective November 1, 2017 per Executive Order 2017-0748 and authorized by House Bill 264 during the 2018 regular session. The establishment of the Office resulted in consolidated internal support functions for the Cabinet, which includes administrative, financial management, human resource and geographic information service roles. ## Policy The Governor's budget includes additional funding in the amount of $211,000 in fiscal year 2027 and $433,100 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 $107,600 and $220,900, respectively. ===== PAGE 148 =====
Energy and Environment
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation28,851,30031,856,40030,589,10028,668,70029,724,600
State Salary and Compensation Allocation893,9009,40022,700 (365,000) (86,100)
Budget Reduction-General Fund
Reorganization Adjustment
Total General Fund29,745,20031,865,80030,160,70028,668,70029,724,600
Restricted Funds
Balance Forward40,497,09458,590,59580,418,50086,165,90093,752,900
Current Receipts30,020,46628,590,23328,636,40028,732,20028,732,200
Non-Revenue Receipts64,716,72965,442,09165,522,80066,277,90065,576,700
Total Restricted Funds135,234,289152,622,919174,577,700181,176,000188,061,800
Federal Fund
Balance Forward(3,335,333)(9,477,815)(7,395,800)
Current Receipts26,145,95744,657,08050,292,90041,556,20042,112,800
Non-Revenue Receipts(2,520,628)(2,603,702)(2,827,900)(2,346,200)(2,346,200)
Total Federal Fund20,289,99632,575,56340,069,20039,210,00039,766,600
TOTAL SOURCE OF FUNDS185,269,485217,064,281244,807,600249,054,700257,553,000
EXPENDITURES BY CLASS
Personnel Costs88,689,02688,387,15494,280,50090,931,30092,862,100
Operating Expenses21,223,90220,446,94127,168,80028,103,10028,303,300
Grants Loans Benefits20,752,11824,395,28229,430,10029,150,70029,142,000
Debt Service985,0001,324,000
Capital Outlay3,724,4228,651,4037,737,3007,091,7006,894,100
Construction782,237836,93225,00025,00025,000
TOTAL EXPENDITURES136,156,705144,041,712158,641,700155,301,800157,226,500
EXPENDITURES BY FUND SOURCE
General Fund29,745,20031,865,80030,160,70028,668,70029,724,600
Restricted Funds76,643,69472,204,46288,411,80087,423,10087,735,300
Federal Fund29,767,81139,971,45140,069,20039,210,00039,766,600
TOTAL EXPENDITURES136,156,705144,041,712158,641,700155,301,800157,226,500
EXPENDITURES BY UNIT
Commissioner1,584,9751,808,6951,709,2001,723,9001,761,100
Water36,124,97346,509,67645,884,40045,283,20045,986,100
Waste Management44,321,10240,456,90749,158,30046,375,70046,861,500
Air Quality21,823,69120,894,44522,327,00021,725,60022,085,900
Environmental Program Support4,123,6444,869,7944,802,3004,777,7004,852,200
Enforcement5,647,3185,572,6255,182,5005,215,0005,327,800
Petroleum Storage Tank
Environmental Assurance Fund22,531,00223,929,57229,578,00030,200,70030,351,900
TOTAL EXPENDITURES136,156,705144,041,712158,641,700155,301,800157,226,500
===== PAGE 149 ===== The Department for Environmental Protection is responsible for the protection of the environment through the prevention, abatement, and control of water, land, and air pollution. The Department is also responsible for the Maxey Flats low-level nuclear waste disposal site. ## Policy The Governor's budget includes additional funding in the amount of $1,355,100 in fiscal year 2027 and $2,782,900 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 $460,700 and $946,200, respectively. ===== PAGE 150 =====
Energy and Environment
Environmental Protection
Commissioner
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation947,4002,353,6001,759,1001,023,600840,900
State Salary and Compensation
Allocation170,200
Other(876,200)(306,600)
Total General Fund1,117,6001,477,4001,452,5001,023,600840,900
Restricted Funds
Balance Forward41,404637,513740,100919,100623,300
Current Receipts2,687,829336
Non-Revenue Receipts(1,867,489)246,620243,300217,000218,300
Total Restricted Funds861,744884,469983,4001,136,100841,600
Federal Fund
Balance Forward3(156,225)(85,800)
Current Receipts106,386272,516290,000199,300204,400
Non-Revenue Receipts(19,470)(15,120)(11,800)(11,800)(11,800)
Total Federal Fund86,918101,170192,400187,500192,600
TOTAL SOURCE OF FUNDS2,066,2622,463,0392,628,3002,347,2001,875,100
EXPENDITURES BY CLASS
Personnel Costs1,473,1841,521,9771,526,1001,540,5001,577,100
Operating Expenses111,791238,619183,100183,400184,000
Capital Outlay48,099
TOTAL EXPENDITURES1,584,9751,808,6951,709,2001,723,9001,761,100
EXPENDITURES BY FUND SOURCE
General Fund1,117,6001,477,4001,452,5001,023,600840,900
Restricted Funds224,232144,35864,300512,800727,600
Federal Fund243,143186,936192,400187,500192,600
TOTAL EXPENDITURES1,584,9751,808,6951,709,2001,723,9001,761,100
The Office of the Commissioner, pursuant to KRS 224.10-020(1), provides management, leadership, and direction to the department to ensure protection of the quality of the Commonwealth's air, land, and water resources. ===== PAGE 151 =====
Energy and Environment
Water
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation15,452,90015,674,00014,970,60014,445,70014,929,900
State Salary and Compensation Allocation250,0009,400
Budget Reduction-General Fund(275,300)
Reorganization Adjustment(86,100)
Other(545,000)
Total General Fund15,157,90015,683,40014,609,20014,445,70014,929,900
Restricted Funds
Balance Forward3,128,3352,673,5073,869,6003,049,4002,076,100
Current Receipts1,407,5781,753,6551,445,4001,360,4001,360,400
Non-Revenue Receipts722,0081,297,2971,120,9001,067,200997,900
Total Restricted Funds5,257,9215,724,4596,435,9005,477,0004,434,400
Federal Fund
Balance Forward1,616,725(2,565,095)1,371,800
Current Receipts15,841,42934,674,85932,395,30028,966,80029,303,300
Non-Revenue Receipts(1,640,590)(1,766,502)(5,878,400)(1,530,200)(1,530,200)
Total Federal Fund15,817,56430,343,26127,888,70027,436,60027,773,100
TOTAL SOURCE OF FUNDS36,233,38551,751,12048,933,80047,359,30047,137,400
EXPENDITURES BY CLASS
Personnel Costs30,055,24332,319,43032,732,20031,282,80031,987,700
Operating Expenses3,153,8533,679,9613,545,6003,776,4003,805,400
Grants Loans Benefits2,121,7158,573,7538,893,7009,760,4009,760,400
Debt Service578,000895,500
Capital Outlay216,1621,041,031712,900463,600432,600
TOTAL EXPENDITURES36,124,97346,509,67645,884,40045,283,20045,986,100
EXPENDITURES BY FUND SOURCE
General Fund15,157,90015,683,40014,609,20014,445,70014,929,900
Restricted Funds2,584,4141,854,8503,386,5003,400,9003,283,100
Federal Fund18,382,65928,971,42627,888,70027,436,60027,773,100
TOTAL EXPENDITURES36,124,97346,509,67645,884,40045,283,20045,986,100
The Division of Water, pursuant to KRS Chapters 146, 149, 151, 220, 223, 224, 224A, 261, 350.029, 350.275 and federal law including PL 92-500 as amended (the Clean Water Act) and 92-523 as amended (the Safe Drinking Water Act), is responsible for administering programs for: ensuring a safe drinking water supply, water quality planning and monitoring, stormwater management, dam safety, groundwater protection, wastewater treatment and sewer line construction, water conservation, and regulation development. The Division administers programs relating to groundwater protection plans, Total Maximum Daily Load Plans, the Non- Point Source 319(h) Grant program, watershed management, dam safety inspections, floodplain management, 401 Water Quality Certifications, water quality standards, water quality monitoring and assessment, Clean Water and Drinking Water State Revolving Loan programs, Kentucky Pollution Discharge Elimination System permitting, confined animal feeding operations compliance, and logging operations. ===== PAGE 152 ===== The Division issues permits to control the number of pollutants that can be discharged to the waters of the Commonwealth, reviews plans for building or altering wastewater treatment plants and sewer collection systems, and reviews the design and operation of plans for public drinking water systems. ===== PAGE 153 =====
Energy and Environment
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation6,805,8007,833,4007,719,7007,484,1007,719,000
State Salary and Compensation Allocation22,700
Budget Reduction-General Fund(10,600)
Other793,200444,000
Total General Fund7,599,0008,277,4007,731,8007,484,1007,719,000
Restricted Funds
Balance Forward6,920,3176,844,5627,997,4003,940,8003,085,900
Current Receipts4,433,6604,260,2204,392,4004,392,4004,392,400
Non-Revenue Receipts26,124,26523,015,28124,850,80025,778,90025,805,000
Total Restricted Funds37,478,24234,120,06437,240,60034,112,10033,283,300
Federal Fund
Balance Forward1,103,728542,767(738,800)
Current Receipts6,066,7765,309,06011,234,4008,424,0008,567,500
Non-Revenue Receipts(539,314)(533,855)(2,368,900)(558,600)(558,600)
Total Federal Fund6,631,1895,317,9718,126,7007,865,4008,008,900
TOTAL SOURCE OF FUNDS51,708,43147,715,43553,099,10049,461,60049,011,200
EXPENDITURES BY CLASS
Personnel Costs22,571,50721,010,15924,380,00023,627,60024,073,400
Operating Expenses2,594,0402,839,0842,851,8002,850,8002,863,000
Grants Loans Benefits17,498,55514,849,92819,997,90018,914,80018,914,800
Debt Service407,000428,500
Capital Outlay1,250,0001,329,2351,903,600957,500985,300
Construction25,00025,00025,000
TOTAL EXPENDITURES44,321,10240,456,90749,158,30046,375,70046,861,500
EXPENDITURES BY FUND SOURCE
General Fund7,599,0008,277,4007,731,8007,484,1007,719,000
Restricted Funds30,633,68026,122,65533,299,80031,026,20031,133,600
Federal Fund6,088,4236,056,8528,126,7007,865,4008,008,900
TOTAL EXPENDITURES44,321,10240,456,90749,158,30046,375,70046,861,500
The Division of Waste Management, pursuant to KRS 224, administers programs that regulate the generation, transportation, storage, treatment, and disposal of all hazardous and solid wastes in the state. Additional responsibilities include resources use and recycling initiatives, technical assistance to counties, and solid waste management districts to facilitate compliance with 401 KAR, Chapter 49. The Division is also responsible for investigation and restoration duties at abandoned hazardous waste disposal sites and citizen education concerning waste management issues. The Division also administers the Voluntary Environmental Remediation Act and the Certified Clean Counties initiative. Pursuant to KRS 224.43-505, the Division manages the Kentucky Pride Fund, which encourages proper solid waste management in Kentucky through waste reduction, recycling, proper closure of abandoned landfills, education, proper collection and disposal of solid waste, elimination of illegal open dumps, and abatement of litter. ===== PAGE 154 =====
Maxey Flats, once a low-level nuclear waste disposal site and closed in 1977, was designated to be in its Final Closure Period as of November, 2012. This includes the installation of a permanent vegetative cap, permanent surface water control features, and surface monuments to identify the location of buried waste. This project was funded in the 2012-14 biennial budget from private funds paid into a trust fund by the Private Settling Parties and from General Fund supported bonds. The final cap was substantially completed in November 2016. The Construction Final Completion Inspection was successfully conducted in September 2017 and the Certification of Completion is dependent on EPA approval of the Commonwealth's Institutional Control Plan. The Commonwealth of Kentucky assumed ownership and responsibility for the toxic site in 1978, and is responsible for long-term monitoring and maintenance activities of the site in perpetuity. Ongoing monitoring and maintenance is funded from the General
===== PAGE 155 =====
Energy and Environment
Environmental Protection
Air Quality
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward2,226,7042,147,2592,036,6001,383,2001,377,300
Current Receipts18,401,97819,024,81819,168,70019,349,50019,349,500
Non-Revenue Receipts629,524(743,152)(37,100)(132,400)(168,300)
Total Restricted Funds21,258,20620,428,92521,168,20020,600,30020,558,500
Federal Fund
Balance Forward585,333(133,422)(1,170,800)
Current Receipts2,171,6091,628,1974,474,7002,651,3002,692,000
Non-Revenue Receipts(177,620)(163,440)(761,900)(148,700)(148,700)
Total Federal Fund2,579,3211,331,3352,542,0002,502,6002,543,300
TOTAL SOURCE OF FUNDS23,837,52721,760,26023,710,20023,102,90023,101,800
EXPENDITURES BY CLASS
Personnel Costs18,608,13117,640,00318,753,00017,860,80018,222,800
Operating Expenses2,004,5602,160,2552,454,9002,426,2002,433,900
Grants Loans Benefits436,994287,835465,000465,000465,000
Capital Outlay766,836806,352654,100973,600964,200
Construction7,170
TOTAL EXPENDITURES21,823,69120,894,44522,327,00021,725,60022,085,900
EXPENDITURES BY FUND SOURCE
Restricted Funds19,110,94718,392,31519,785,00019,223,00019,542,600
Federal Fund2,712,7442,502,1302,542,0002,502,6002,543,300
TOTAL EXPENDITURES21,823,69120,894,44522,327,00021,725,60022,085,900
The Division of Air Quality is responsible for the identification and implementation of measures necessary to achieve and maintain ambient air quality standards as mandated by the federal Clean Air Act and KRS 224.10-100. The Division accomplishes its mission through air quality monitoring, permitting, source inspections and enforcement to ensure compliance with air pollution laws and regulations. The 1990 Clean Air Act Amendments imposed new permitting requirements to protect air quality. Federal law requires that an emission fee be levied on facilities with significant air pollutants to fund the implementation of the new requirements. If a state does not have continued authorization, the fee will be collected by the U.S. Environmental Protection Agency to fund a federal permitting program. The Division has been granted authority to enforce portions of the Clean Air Act in the Commonwealth. Under that authority the Division operates the Title V Operating Permit Program, and costs associated therewith are funded through emission fees assessed pursuant to the Clean Air Act and KRS 224.20-050. ===== PAGE 156 =====
Energy and Environment
ActualActualRevisedRecommendedRecommended
FY 2024FY 2025FY 2026FY 2027FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation3,848,9004,311,9004,422,3004,146,9004,220,700
State Salary and Compensation Allocation473,700
Budget Reduction-General Fund(79,100)
Other(248,200)432,200
Total General Fund4,074,4004,744,1004,343,2004,146,9004,220,700
Restricted Funds
Balance Forward38,376144,136295,900362,800196,000
Current Receipts104,525160,193297,000297,000297,000
Non-Revenue Receipts2,9927,55215,400(42,200)(59,500)
Total Restricted Funds145,893311,881608,300617,600433,500
Federal Fund
Balance Forward(51,048)(61,917)(51,000)
Current Receipts39,610128,092229,000224,600229,200
Non-Revenue Receipts(2,992)(7,552)35,600(15,400)(15,400)
Total Federal Fund(14,430)58,624213,600209,200213,800
TOTAL SOURCE OF FUNDS4,205,8635,114,6055,165,1004,973,7004,868,000
EXPENDITURES BY CLASS
Personnel Costs2,817,8782,775,0033,286,1003,147,7003,229,200
Operating Expenses1,304,0101,466,8571,504,4001,609,5001,611,200
Grants Loans Benefits1,75710,5191,80010,5001,800
Capital Outlay617,41610,00010,00010,000
TOTAL EXPENDITURES4,123,6444,869,7944,802,3004,777,7004,852,200
EXPENDITURES BY FUND SOURCE
General Fund4,074,4004,744,1004,343,2004,146,9004,220,700
Restricted Funds1,75716,023245,500421,600417,700
Federal Fund47,487109,671213,600209,200213,800
TOTAL EXPENDITURES4,123,6444,869,7944,802,3004,777,7004,852,200
The Division of Environmental Program Support, pursuant to KRS 224.10-100(7) secures necessary scientific, technical, administrative, and operational services. The Division of Environmental Program Support provides laboratory testing services essential for the identification and characterization of environmental pollutants in the Commonwealth. ===== PAGE 157 =====
Energy and Environment
Environmental Protection
Enforcement
ActualActualRevisedRecommendedRecommended
FY 2024FY 2025FY 2026FY 2027FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,796,3001,683,5001,717,4001,568,4002,014,100
Other306,600
Total General Fund1,796,3001,683,5002,024,0001,568,4002,014,100
Restricted Funds
Balance Forward1,452,4181,968,6272,164,6002,107,4001,865,000
Current Receipts832,922724,418755,400755,400755,400
Non-Revenue Receipts1,240,9491,216,1671,240,1001,640,1001,240,100
Total Restricted Funds3,526,2903,909,2114,160,1004,502,9003,860,500
Federal Fund
Balance Forward(6,590,074)(7,103,922)(6,721,200)
Current Receipts1,920,1482,644,3571,669,5001,090,2001,116,400
Non-Revenue Receipts(140,641)(117,233)6,157,500(81,500)(81,500)
Total Federal Fund(4,810,567)(4,576,798)1,105,8001,008,7001,034,900
TOTAL SOURCE OF FUNDS512,0231,015,9137,289,9007,080,0006,909,500
EXPENDITURES BY CLASS
Personnel Costs4,524,4504,433,0214,578,7004,682,3004,794,500
Operating Expenses429,771466,356532,100532,700533,300
Grants Loans Benefits693,098673,24771,700
TOTAL EXPENDITURES5,647,3185,572,6255,182,5005,215,0005,327,800
EXPENDITURES BY FUND SOURCE
General Fund1,796,3001,683,5002,024,0001,568,4002,014,100
Restricted Funds1,557,6631,744,6892,052,7002,637,9002,278,800
Federal Fund2,293,3552,144,4361,105,8001,008,7001,034,900
TOTAL EXPENDITURES5,647,3185,572,6255,182,5005,215,0005,327,800
The Division of Enforcement is responsible for effective and timely enforcement of Kentucky's environmental laws pertaining to air, waste, and water. The Division carries out enforcement actions against corporations and individuals who are out of compliance with environmental law and/or regulations. ===== PAGE 158 =====
Energy and Environment Environmental Protection Petroleum Storage Tank Environmental Assurance Fund
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward26,689,54144,174,99263,314,30074,403,20084,529,300
Current Receipts2,151,9732,666,5922,577,5002,577,5002,577,500
Non-Revenue Receipts37,864,48040,402,32638,089,40037,749,30037,543,200
Total Restricted Funds66,705,99387,243,909103,981,200114,730,000124,650,000
TOTAL SOURCE OF FUNDS66,705,99387,243,909103,981,200114,730,000124,650,000
EXPENDITURES BY CLASS
Personnel Costs8,638,6348,687,5609,024,4008,789,6008,977,400
Operating Expenses11,625,8789,595,81016,096,90016,724,10016,872,500
Capital Outlay1,491,4234,809,2704,456,7004,687,0004,502,000
Construction775,067836,932
TOTAL EXPENDITURES22,531,00223,929,57229,578,00030,200,70030,351,900
EXPENDITURES BY FUND SOURCE
Restricted Funds22,531,00223,929,57229,578,00030,200,70030,351,900
TOTAL EXPENDITURES22,531,00223,929,57229,578,00030,200,70030,351,900
The Petroleum Storage Tank Environmental Assurance Fund, pursuant to KRS Chapter 224.60, assists owners and operators of underground storage tanks to meet federal environmental mandates and provides reimbursement for eligible clean-up costs and third party damages in the event of a release into the environment. Pursuant to KRS 224.60-130, the Petroleum Storage Tank Environmental Assurance Fund is managed by the Division of Waste Management within the Department for Environmental Protection. ===== PAGE 159 =====
Energy and Environment
Natural Resources
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation42,882,60043,690,60044,685,20039,018,50040,467,100
State Salary and Compensation Allocation1,099,70016,60032,000 (2,041,300) (216,800)
Budget Reduction-General Fund
Reorganization Adjustment
Mandated Allotments4,597,8903,640,639
Total General Fund48,580,19047,347,83942,459,10039,018,50040,467,100
Tobacco Fund
Tobacco Settlement - Phase I3,400,0003,000,0003,000,0003,000,0003,000,000
Continuing Approp-Tob Settlement7,523,4107,268,5766,701,000
Total Tobacco Fund10,923,41010,268,5769,701,0003,000,0003,000,000
Restricted Funds
Balance Forward8,517,4649,441,9649,624,8006,334,3004,198,600
Current Receipts4,856,7636,318,1673,371,2003,401,3003,401,300
Non-Revenue Receipts415,487702,29417,940,80018,834,90019,370,300
Total Restricted Funds13,789,71416,462,42630,936,80028,570,50026,970,200
Federal Fund
Balance Forward(3,708,428)45,233,92823,846,30054,288,70079,617,400
Current Receipts113,372,52881,734,959207,053,300201,683,300203,374,900
Non-Revenue Receipts21,701,070(27,434,971)532,500(719,200)(719,200)
Total Federal Fund131,365,17099,533,915231,432,100255,252,800282,273,100
TOTAL SOURCE OF FUNDS204,658,484173,612,755314,529,000325,841,800352,710,400
EXPENDITURES BY CLASS
Personnel Costs87,242,64163,027,08064,254,80058,819,70060,559,900
Operating Expenses11,454,46611,118,62110,752,10011,040,10011,054,700
Grants Loans Benefits7,889,97113,029,06320,907,30014,385,30014,385,300
Debt Service111,500
Capital Outlay3,465,7307,071,6343,976,5003,193,2003,128,300
Construction32,661,20939,082,724154,015,300154,587,500154,738,000
TOTAL EXPENDITURES142,714,016133,440,622253,906,000242,025,800243,866,200
EXPENDITURES BY FUND SOURCE
General Fund48,580,19047,347,83942,459,10039,018,50040,467,100
Tobacco Fund3,654,8343,567,6099,701,0003,000,0003,000,000
Restricted Funds4,347,7506,837,65624,602,50024,371,90024,212,300
Federal Fund86,131,24375,687,518177,143,400175,635,400176,186,800
TOTAL EXPENDITURES142,714,016133,440,622253,906,000242,025,800243,866,200
EXPENDITURES BY UNIT
Commissioner1,182,1681,080,6241,484,3001,217,7001,543,300
Forestry28,672,51930,539,17326,476,20025,278,20025,618,900
Conservation5,307,7165,566,53812,059,1004,947,5004,986,200
Oil and Gas9,642,3625,141,7769,957,4009,654,2009,765,100
===== PAGE 160 =====
Mine Permits5,780,6645,521,0165,493,6004,514,9004,634,500
Mine Reclamation and Enforcement15,720,21815,214,07215,695,40014,566,70014,898,100
Abandoned Mine Lands13,790,15014,890,37640,022,70039,542,00039,965,700
Mine Safety10,544,0459,866,14510,142,8008,669,9008,799,700
Reclamation Guaranty Fund614,5601,099,3841,440,5001,279,6001,292,600
Abandoned Mine Land Reclamation Projects51,403,51344,465,418131,077,900132,299,000132,306,000
Mine Safety Review Commission56,10056,10056,10056,10056,100
TOTAL EXPENDITURES142,714,016133,440,622253,906,000242,025,800243,866,200
The Department for Natural Resources' mission is to preserve, protect, and enhance the Commonwealth's natural land resources. The Department oversees activities and programs related to forestry, conservation, mining, and oil and gas. The Department, through its divisions and partnerships, provides technical assistance, educational programs, and funding to assist the general public, landowners, institutions, industries, and communities in conserving and sustaining Kentucky's natural resources. In addition, the Department is responsible for the inspection of timber harvests, mining operations, and oil and gas wells to ensure compliance with laws that protect the public, the environment, and Kentucky's coal miners. ## Policy The Governor's budget includes additional funding in the amount of $894,300 in fiscal year 2027 and $1,839,200 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 $536,600 and $1,103,500, respectively. ===== PAGE 161 =====
Energy and Environment
Natural Resources
Commissioner
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation905,100849,700875,600854,8001,051,200
Budget Reduction-General Fund(110,800)
Other(142,800)(170,600)300,000
Total General Fund762,300679,1001,064,800854,8001,051,200
Restricted Funds
Balance Forward220,618228,683203,700153,700155,600
Current Receipts3,386
Non-Revenue Receipts4,6793,0291,9001,9001,900
Total Restricted Funds228,683231,711205,600155,600157,500
Federal Fund
Balance Forward6(12,929)(4,000)
Current Receipts411,612385,468373,500364,800493,900
Non-Revenue Receipts(4,679)(3,029)(1,900)(1,900)(1,900)
Total Federal Fund406,939369,510367,600362,900492,000
TOTAL SOURCE OF FUNDS1,397,9211,280,3221,638,0001,373,3001,700,700
EXPENDITURES BY CLASS
Personnel Costs1,014,560908,5791,216,300949,7001,275,200
Operating Expenses96,00186,816194,000194,000194,100
Grants Loans Benefits71,60785,22974,00074,00074,000
TOTAL EXPENDITURES1,182,1681,080,6241,484,3001,217,7001,543,300
EXPENDITURES BY FUND SOURCE
General Fund762,300679,1001,064,800854,8001,051,200
Restricted Funds28,00251,900100
Federal Fund419,868373,522367,600362,900492,000
TOTAL EXPENDITURES1,182,1681,080,6241,484,3001,217,7001,543,300
The Office of the Commissioner provides leadership, policy direction, and management for the Department for Natural Resources. The Commissioner provides guidance in policy and program implementation for the sustainability of Kentucky's natural resources and the safety of Kentucky's miners. ===== PAGE 162 =====
Energy and Environment
Natural Resources
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation16,033,80016,789,30016,934,00015,179,50015,965,300
State Salary and Compensation Allocation699,700
Budget Reduction-General Fund(385,900)
Mandated Allotments4,597,8903,640,639
Other917,8001,329,300
Total General Fund22,249,19021,759,23916,548,10015,179,50015,965,300
Restricted Funds
Balance Forward1,020,7571,529,2562,106,3001,445,500857,400
Current Receipts2,946,8534,459,8371,603,7001,609,1001,609,100
Non-Revenue Receipts(291,073)(229,189)(164,100)252,600(257,400)
Total Restricted Funds3,676,5375,759,9053,545,9003,307,2002,209,100
Federal Fund
Balance Forward(1,998,921)(1,514,730)(2,507,200)
Current Receipts4,897,6154,427,62811,208,2007,899,5007,954,400
Non-Revenue Receipts(137,377)(293,811)(873,300)(250,600)(250,600)
Total Federal Fund2,761,3182,619,0877,827,7007,648,9007,703,800
TOTAL SOURCE OF FUNDS28,687,04530,138,23027,921,70026,135,60025,878,200
EXPENDITURES BY CLASS
Personnel Costs20,684,48919,940,43517,744,20015,545,60015,888,800
Operating Expenses5,177,3034,826,8724,146,4004,067,9004,074,200
Grants Loans Benefits781,9081,296,6043,105,8003,633,1003,633,100
Debt Service111,500
Capital Outlay2,028,8194,363,7621,479,8002,031,6002,022,800
TOTAL EXPENDITURES28,672,51930,539,17326,476,20025,278,20025,618,900
EXPENDITURES BY FUND SOURCE
General Fund22,249,19021,759,23916,548,10015,179,50015,965,300
Restricted Funds2,147,2813,653,6472,100,4002,449,8001,949,800
Federal Fund4,276,0485,126,2877,827,7007,648,9007,703,800
TOTAL EXPENDITURES28,672,51930,539,17326,476,20025,278,20025,618,900
In accordance with KRS 149 the Division of Forestry provides technical assistance on sound forest management practices; provides forest stewardship assistance to private landowners; assists timber operators and wood-using industries; grows and distributes tree seedlings at low cost for timber production; and provides urban and community forestry technical assistance to provide sustainability of the Commonwealth's 12.4 million acres of forestland. The Division enforces the Kentucky Forest Conservation Act (149.330 – 149.355); the Division is responsible for inspecting logging operations and enforcing compliance with the Kentucky Master Logger Program and Best Management Practices to protect water quality. In addition, the Division maintains an inventory of Kentucky's forests. The Division provides administrative oversight to the Forestry Best Management Practices Board. The Kentucky Division of Forestry is mandated to provide wildland fire protection for the Commonwealth. The Division has established a statewide system of wildland fire prevention, detection and suppression. ===== PAGE 163 =====
Energy and Environment
Natural Resources Conservation
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,516,5001,448,2001,489,3001,565,2001,603,900
Budget Reduction-General Fund(50,000)
Other(200,400)(45,000)242,200
Total General Fund1,316,1001,403,2001,681,5001,565,2001,603,900
Tobacco Fund
Tobacco Settlement - Phase I3,400,0003,000,0003,000,0003,000,0003,000,000
Continuing Approp-Tob Settlement7,523,4107,268,5766,701,000
Total Tobacco Fund10,923,41010,268,5769,701,0003,000,0003,000,000
Restricted Funds
Balance Forward489,493549,910556,000231,900202,100
Current Receipts6545200200200
Non-Revenue Receipts355,608365,650350,000350,000350,000
Total Restricted Funds845,166915,606906,200582,100552,300
Federal Fund
Balance Forward(34,120)5,181(21,100)
Current Receipts86,436225,4732,3002,3002,300
Non-Revenue Receipts(5,608)(15,650)21,100
Total Federal Fund46,708215,0032,3002,3002,300
TOTAL SOURCE OF FUNDS13,131,38412,802,38512,291,0005,149,6005,158,500
EXPENDITURES BY CLASS
Personnel Costs1,457,6391,744,8581,840,4001,685,0001,723,200
Operating Expenses110,407126,639142,400138,500139,000
Grants Loans Benefits3,739,6703,695,04110,126,3003,074,0003,074,000
Capital Outlay(50,000)50,00050,000
TOTAL EXPENDITURES5,307,7165,566,53812,059,1004,947,5004,986,200
EXPENDITURES BY FUND SOURCE
General Fund1,316,1001,403,2001,681,5001,565,2001,603,900
Tobacco Fund3,654,8343,567,6099,701,0003,000,0003,000,000
Restricted Funds295,255359,601674,300380,000380,000
Federal Fund41,527236,1282,3002,3002,300
TOTAL EXPENDITURES5,307,7165,566,53812,059,1004,947,5004,986,200
The Division of Conservation provides assistance to Kentucky's 121 conservation districts in the development and implementation of sound conservation programs to protect, enhance, and develop the Commonwealth's natural resources. The Division administers the Kentucky Soil Erosion and Water Quality Cost Share Program and the Kentucky Soil Stewardship Program to help agricultural operations protect and preserve Kentucky's soil and water resources. The Division provides administrative services to the State Soil and Water Conservation Commission. The Division and the conservation districts provide educational opportunities to promote conservation of Kentucky's natural resources. These programs mitigate soil erosion, and other environmental problems associated with agricultural, woodland and construction operations which impact water quality. ===== PAGE 164 =====
Energy and Environment
Natural Resources
Oil and Gas
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation2,825,3002,329,6002,408,7002,910,1002,978,500
State Salary and Compensation
Allocation32,000
Other150,000550,000227,300
Total General Fund2,975,3002,879,6002,668,0002,910,1002,978,500
Restricted Funds
Balance Forward946,8871,242,347980,600442,800257,200
Current Receipts388,546159,606171,000171,000171,000
Non-Revenue Receipts(31,626)(14,324)44,700(74,000)(141,600)
Total Restricted Funds1,303,8081,387,6291,196,300539,800286,600
Federal Fund
Balance Forward(262,549)(119,693)(167,800)
Current Receipts6,800,6321,876,5676,832,2006,571,3006,618,100
Non-Revenue Receipts(52,174)(69,476)(128,500)(109,800)(109,800)
Total Federal Fund6,485,9091,687,3986,535,9006,461,5006,508,300
TOTAL SOURCE OF FUNDS10,765,0175,954,62710,400,2009,911,4009,773,400
EXPENDITURES BY CLASS
Personnel Costs3,272,0223,356,7564,129,0004,578,6004,692,200
Operating Expenses702,968614,927443,400444,400445,700
Grants Loans Benefits391,120534,4331,050,0001,050,0001,050,000
Capital Outlay86,747365,194310,000284,600284,600
Construction5,189,505270,4674,025,0003,296,6003,292,600
TOTAL EXPENDITURES9,642,3625,141,7769,957,4009,654,2009,765,100
EXPENDITURES BY FUND SOURCE
General Fund2,975,3002,879,6002,668,0002,910,1002,978,500
Restricted Funds61,460407,032753,500282,600278,300
Federal Fund6,605,6021,855,1446,535,9006,461,5006,508,300
TOTAL EXPENDITURES9,642,3625,141,7769,957,4009,654,2009,765,100
The Division of Oil and Gas, pursuant to KRS Chapter 353 and 805 KAR Chapter 1, is responsible for the conservation of oil and gas resources of the Commonwealth and for the protection of correlative rights of mineral owners. The Division's mission is to prevent waste and unnecessary loss, to encourage the maximum recovery of oil and gas, to promote safety, and to prevent contamination of underground water resources. The Division is also charged with the collection of geological data obtained from the drilling of oil and gas wells for deposit in the Kentucky Geological Survey whose records are for public use. The Division is also responsible for the plugging of abandoned wells. ===== PAGE 165 =====
Energy and Environment
Natural Resources
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation2,572,8002,514,5002,631,2002,189,6002,251,900
State Salary and Compensation Allocation16,600
Budget Reduction-General Fund(226,700)
Reorganization Adjustment(216,800)
Other(399,600)
Total General Fund2,173,2002,531,1002,187,7002,189,6002,251,900
Restricted Funds
Balance Forward670,763885,802986,400733,600399,100
Current Receipts628,575575,375573,300573,300573,300
Non-Revenue Receipts(329,005)(338,819)(333,800)(420,200)(433,800)
Total Restricted Funds970,3331,122,3581,225,900886,700538,600
Federal Fund
Balance Forward(292,909)(336,615)(298,200)
Current Receipts3,522,8222,926,0812,852,2001,876,5001,915,700
Non-Revenue Receipts(43,595)(33,781)259,600(38,800)(38,800)
Total Federal Fund3,186,3182,555,6862,813,6001,837,7001,876,900
TOTAL SOURCE OF FUNDS6,329,8516,209,1436,227,2004,914,0004,667,400
EXPENDITURES BY CLASS
Personnel Costs5,065,2014,780,0234,782,6003,820,0003,923,400
Operating Expenses541,313551,368570,100570,000570,200
Grants Loans Benefits174,150189,625124,900124,900124,900
Capital Outlay16,00016,000
TOTAL EXPENDITURES5,780,6645,521,0165,493,6004,514,9004,634,500
EXPENDITURES BY FUND SOURCE
General Fund2,173,2002,531,1002,187,7002,189,6002,251,900
Restricted Funds84,531135,977492,300487,600505,700
Federal Fund3,522,9332,853,9392,813,6001,837,7001,876,900
TOTAL EXPENDITURES5,780,6645,521,0165,493,6004,514,9004,634,500
The Division of Mine Permits, pursuant to KRS 350 and 405 KAR Chapter 8, reviews all surface mining permit applications in accordance with Kentucky law and the federal Surface Mining Control and Reclamation Act. The Division, pursuant to KRS 350.450 and 405 KAR 7:080, administers the federal Small Operator Assistance Program and pursuant to KRS 350.610, the Lands Unsuitable for Mining program. The Division, pursuant to KRS 350.060(13) and 405 KAR 8:040, also reviews underground mining permit applications to determine the surface effects of such operations. ===== PAGE 166 =====
Energy and Environment
Natural Resources
Mine Reclamation and Enforcement
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation8,995,5009,554,4009,902,4008,620,4008,564,100
Budget Reduction-General Fund(873,500)
Other(875,000)(160,100)
Total General Fund8,995,5008,679,4008,868,8008,620,4008,564,100
Restricted Funds
Balance Forward565,737715,090919,2001,046,0001,072,300
Current Receipts43,945121,50643,60043,60043,600
Non-Revenue Receipts105,40882,54297,00097,00097,000
Total Restricted Funds715,090919,1381,059,8001,186,6001,212,900
Federal Fund
Balance Forward(33,264)(291,163)(30,500)
Current Receipts6,572,2276,877,9276,918,9005,929,0005,919,300
Non-Revenue Receipts(105,408)(82,542)(75,600)(97,000)(97,000)
Total Federal Fund6,433,5556,504,2226,812,8005,832,0005,822,300
TOTAL SOURCE OF FUNDS16,144,14516,102,76016,741,40015,639,00015,599,300
EXPENDITURES BY CLASS
Personnel Costs13,296,65912,649,07612,985,20012,126,30012,456,000
Operating Expenses1,955,7172,267,0562,179,2002,333,4002,335,100
Grants Loans Benefits84,00640,395104,000107,000107,000
Capital Outlay383,835257,545427,000
TOTAL EXPENDITURES15,720,21815,214,07215,695,40014,566,70014,898,100
EXPENDITURES BY FUND SOURCE
General Fund8,995,5008,679,4008,868,8008,620,4008,564,100
Restricted Funds13,800114,300511,700
Federal Fund6,724,7186,534,6726,812,8005,832,0005,822,300
TOTAL EXPENDITURES15,720,21815,214,07215,695,40014,566,70014,898,100
The Division of Mine Reclamation and Enforcement, pursuant to KRS 350, develops policies and procedures for reclamation and enforcement programs related to coal and non-coal minerals. The Division reviews permit applications for non-coal mineral operations pursuant to KRS 350.028 and 405 KAR 5:032. The Division conducts inspection programs to carry out these policies and procedures in accordance with applicable federal and state statutes. Pursuant to KRS 351 and 805 KAR Chapter 4, the Division is charged with ensuring the safety and regulation of all blasting operations within the Commonwealth, which includes the use, storage or transportation of explosives. The Division investigates citizens' complaints relating to surface mining and blasting activities. ===== PAGE 167 =====
Energy and Environment
Natural Resources
Abandoned Mine Lands
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward3,779,6783,215,1902,779,3001,582,000811,600
Current Receipts604,467784,592759,200759,200759,200
Non-Revenue Receipts130,225310,97217,418,70017,794,20019,016,400
Total Restricted Funds4,514,3704,310,75320,957,20020,135,40020,587,200
Federal Fund
Balance Forward(369,875)50,056,42129,321,90054,288,70079,617,400
Current Receipts40,846,08519,541,85045,809,80045,746,00047,156,500
Non-Revenue Receipts22,071,182(26,917,349)(195,500)(199,100)(199,100)
Total Federal Fund62,547,39242,680,92374,936,20099,835,600126,574,800
TOTAL SOURCE OF FUNDS67,061,76146,991,67695,893,400119,971,000147,162,000
EXPENDITURES BY CLASS
Personnel Costs10,779,81310,826,19612,195,60011,823,10012,098,500
Operating Expenses1,516,6491,463,4791,695,3001,754,8001,755,600
Grants Loans Benefits30,24831,52050,00050,00050,000
Capital Outlay512,8821,066,128897,100649,900649,900
Construction950,5581,503,05525,184,70025,264,20025,411,700
TOTAL EXPENDITURES13,790,15014,890,37740,022,70039,542,00039,965,700
EXPENDITURES BY FUND SOURCE
Restricted Funds1,299,1801,531,40319,375,20019,323,80019,477,200
Federal Fund12,490,97013,358,97320,647,50020,218,20020,488,500
TOTAL EXPENDITURES13,790,15014,890,37640,022,70039,542,00039,965,700
The Division of Abandoned Mine Lands administers abandoned or unreclaimed land reclamation activities on previously surface-mined land or land used in connection with surface mining under Title IV of Public Law 95-87 and/or KRS 350.550 to KRS 350.597. The Division administers a bond forfeiture reclamation program; bonds forfeited to the Commonwealth due to the failure to mine and reclaim a coal mine site to the standards specified by the mine permit are used by the state to reclaim the site for which the bond was posted. The Division administers a water supply replacement program which extends waterlines into areas where drinking water has been contaminated by past mining. The division budgets up to 30 percent of its annual funding on waterline projects each year. Federal funds for this program are provided from federal tax levies imposed under Public Law 95-87 on all coal mined since August 3, 1977. Approximately 150,000 acres of abandoned mine lands in Kentucky are eligible for reclamation. All state and partial federal project contracts are administered by this agency. ===== PAGE 168 =====
Energy and Environment
Natural Resources
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation9,977,50010,148,80010,387,9007,642,8007,996,100
State Salary and Compensation Allocation400,000
Budget Reduction-General Fund(394,400)
Other(325,000)(788,700)(609,400)
Total General Fund10,052,5009,360,1009,384,1007,642,8007,996,100
Restricted Funds
Balance Forward738,906835,213890,400698,800351,900
Current Receipts230,173209,075212,100236,800236,800
Non-Revenue Receipts17,04615,34617,000117,00017,000
Total Restricted Funds986,1251,059,6341,119,5001,052,600605,700
Federal Fund
Balance Forward11
Current Receipts357,679352,144355,000343,400350,700
Non-Revenue Receipts(17,046)(15,346)(17,000)(17,000)(17,000)
Total Federal Fund340,633336,798338,000326,400333,700
TOTAL SOURCE OF FUNDS11,379,25810,756,53110,841,6009,021,8008,935,500
EXPENDITURES BY CLASS
Personnel Costs8,790,0807,721,4337,925,4007,017,3007,215,700
Operating Expenses1,300,5191,125,7061,320,8001,475,5001,479,000
Capital Outlay453,4471,019,006896,600177,100105,000
TOTAL EXPENDITURES10,544,0459,866,14510,142,8008,669,9008,799,700
EXPENDITURES BY FUND SOURCE
General Fund10,052,5009,360,1009,384,1007,642,8007,996,100
Restricted Funds150,912169,248420,700700,700469,900
Federal Fund340,633336,798338,000326,400333,700
TOTAL EXPENDITURES10,544,0459,866,14510,142,8008,669,9008,799,700
The Division of Mine Safety, pursuant to KRS Chapter 351, is responsible for the regulation of mining practices to prevent injuries and fatalities in underground, strip, and auger mines. The Division trains, tests, and licenses mine personnel. Mine safety instructors provide general and technical safety training and education courses to mine personnel to maintain an adequate number of certified and qualified personnel for the mining industry. Moreover, the agency encourages safe work habits of coal miners by providing quality on-the-job, one-on-one safety training for surface and underground miners. The Division licenses all underground and surface coal mines in the Commonwealth. It issues permits for specific mining methods including the use of diesel equipment, roof control, extended cuts, mining near oil and gas wells, and additional mine openings. The agency inspects mines and investigates illegal mining operations. The Division develops and maintains a database to track information about each mining operation. The database includes the number of miners employed by the mine, type of operations, type of worker's compensation insurance, and the number and type of mining law violations, closures, and abatements for each mine and mine operator. A second database provides information on all individuals certified as surface mine foremen, surface mine safety analysts, underground mine foremen, underground mine instructors, underground mine inspectors, and electrical inspectors. ===== PAGE 169 ===== The Division administers drug testing of all miners as a condition of certification. A database is maintained on the status of those miners whose certifications have been revoked as a result of testing positive for drugs. The Division provides administrative oversight of the Kentucky Mining Board. Federal Law 30 CFR, Section 49, requires mine rescue teams to be stationed within one hour of each active coal mine and to be trained and knowledgeable about each mine the team covers. The Commonwealth, through the Division of Mine Safety and Licensing, provides state-sponsored mine rescue teams to help Kentucky's mines comply with this federal regulation. ===== PAGE 170 =====
Energy and Environment
Natural Resources
Reclamation Guaranty Fund
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward84,625240,473202,90091,400
Current Receipts10,7538,1318,1008,1008,100
Non-Revenue Receipts454,225507,088509,400716,400720,800
Total Restricted Funds549,603755,693720,400724,500820,300
Federal Fund
Balance Forward(1,021)(9,761)(25,700)
Current Receipts300,915534,652750,300651,500658,000
Non-Revenue Receipts(4,225)(3,988)(4,500)(5,000)(5,000)
Total Federal Fund295,669520,903720,100646,500653,000
TOTAL SOURCE OF FUNDS845,2721,276,5961,440,5001,371,0001,473,300
EXPENDITURES BY CLASS
Personnel Costs567,0661,048,2221,385,9001,223,9001,236,700
Operating Expenses47,49451,16254,60055,70055,900
TOTAL EXPENDITURES614,5601,099,3841,440,5001,279,6001,292,600
EXPENDITURES BY FUND SOURCE
Restricted Funds309,130552,747720,400633,100639,600
Federal Fund305,431546,637720,100646,500653,000
TOTAL EXPENDITURES614,5601,099,3841,440,5001,279,6001,292,600
The Office of Reclamation Guaranty Fund, pursuant to KRS 350.500-350.521, provides administrative support to the Kentucky Reclamation Guaranty Fund Commission including covering all administrative, operating and legal expenses of the Commission and to fulfill both the Cabinet's and Commission's goals relating to bonding and reclamation of mining sites. In the event a permit-specific reclamation bond is insufficient to complete reclamation on the permitted mine site, the Fund provides financial assistance to the cabinet for reclamation. ===== PAGE 171 =====
Energy and Environment
Natural Resources
Abandoned Mine Land Reclamation Projects
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Federal Fund
Balance Forward(715,776)(2,542,784)(2,421,100)
Current Receipts49,576,50644,587,169131,950,900132,299,000132,306,000
Non-Revenue Receipts1,548,100
Total Federal Fund48,860,73042,044,385131,077,900132,299,000132,306,000
TOTAL SOURCE OF FUNDS48,860,73042,044,385131,077,900132,299,000132,306,000
EXPENDITURES BY CLASS
Personnel Costs22,265,107
Grants Loans Benefits2,617,2617,156,2156,272,3006,272,3006,272,300
Construction26,521,14537,309,202124,805,600126,026,700126,033,700
TOTAL EXPENDITURES51,403,51344,465,418131,077,900132,299,000132,306,000
EXPENDITURES BY FUND SOURCE
Federal Fund51,403,51344,465,418131,077,900132,299,000132,306,000
TOTAL EXPENDITURES51,403,51344,465,418131,077,900132,299,000132,306,000
The Abandoned Mine Lands (AML) Reclamation Projects program in the Department for Natural Resources receives 100 percent federal funding for the reclamation of certain mine sites that have been abandoned or left unreclaimed under Title IV of Public Law 95-87 or KRS 350.550-.597. If the Commonwealth does not maintain an approved AML Reclamation program, federal funds allocated for reclamation projects within Kentucky may be reallocated to other coal-producing states. Abandoned mine sites are reclaimed through a priority ranking system based on human health and safety considerations. ===== PAGE 172 =====
Energy and Environment
Natural Resources
Mine Safety Review Commission
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation56,10056,10056,10056,10056,100
Total General Fund56,10056,10056,10056,10056,100
TOTAL SOURCE OF FUNDS56,10056,10056,10056,10056,100
EXPENDITURES BY CLASS
Personnel Costs50,00651,50450,20050,20050,200
Operating Expenses6,0944,5965,9005,9005,900
TOTAL EXPENDITURES56,10056,10056,10056,10056,100
EXPENDITURES BY FUND SOURCE
General Fund56,10056,10056,10056,10056,100
TOTAL EXPENDITURES56,10056,10056,10056,10056,100
I he Mine Safety Review Commission, pursuant to KRS Chapter 351, protects the health and safety of coal miners by ensuring the enforcement of mine safety regulations. Its three members, appointed by the governor, conduct hearings on drug and safety violations and impose penalties for serious violations. The Commission has the power to probate, revoke or suspend a mine's license or an individual miner's certification and fine certified miners up to the equivalent of wages for ten working days for their first offense. The Commission is an independent agency attached to the Energy and Environment Cabinet for administrative purposes only. ===== PAGE 173 =====
Energy and Environment
Energy Policy
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation877,4001,741,1001,764,6001,571,8001,579,300
State Salary and Compensation Allocation10,400
Current Year Appropriation835,500
Reorganization Adjustment(77,500)
Total General Fund1,723,3001,741,1001,687,1001,571,8001,579,300
Restricted Funds
Balance Forward1,862,0831,830,9021,922,2001,692,4001,337,800
Current Receipts207,655
Non-Revenue Receipts207,55292,019264,900266,700266,700
Total Restricted Funds2,069,6352,130,5752,187,1001,959,1001,604,500
Federal Fund
Balance Forward(54,783)(56,005)(96,600)
Current Receipts1,496,9832,543,85940,931,60062,618,30062,633,000
Non-Revenue Receipts(70,054)(78,012)(4,121,400)(79,200)(79,200)
Total Federal Fund1,372,1462,409,84236,713,60062,539,10062,553,800
TOTAL SOURCE OF FUNDS5,165,0806,281,51840,587,80066,070,00065,737,600
EXPENDITURES BY CLASS
Personnel Costs1,322,1252,335,18711,785,70011,788,70011,814,300
Operating Expenses419,189330,986348,700355,500355,600
Grants Loans Benefits1,648,8691,789,70026,761,00052,588,00052,584,700
TOTAL EXPENDITURES3,390,1834,455,87338,895,40064,732,20064,754,600
EXPENDITURES BY FUND SOURCE
General Fund1,723,3001,741,1001,687,1001,571,8001,579,300
Restricted Funds238,733208,340494,700621,300621,500
Federal Fund1,428,1502,506,43436,713,60062,539,10062,553,800
TOTAL EXPENDITURES3,390,1834,455,87338,895,40064,732,20064,754,600
EXPENDITURES BY UNIT
Office of Energy Policy3,390,1834,455,87338,895,40064,732,20064,754,600
TOTAL EXPENDITURES3,390,1834,455,87338,895,40064,732,20064,754,600
The Office of Energy Policy, formerly known as the Department for Energy Development and Independence, was reorganized as result of the passage of Senate Bill 129 during the 2018 regular session. The Office oversees the development and implementation of Kentucky's comprehensive energy strategy, Intelligent Energy Choices for Kentucky's Future. The Office provides leadership to enhance the benefits of energy efficiency and alternative energy through supporting awareness, technology development, energy preparedness, partnerships and resource development. The Office also enhances the economic opportunities and benefits to Kentucky's citizens and industry by expanding current markets and developing market opportunities for Kentucky coal, natural gas, petroleum, oil shale, tar sands, liquid and gaseous fuels from coal, and chemicals from coal. ===== PAGE 174 ===== To the extent that funding is available, the Office administers grant programs to support energy-related research, development and demonstration, including supporting multi-state cooperative regional partnerships and research initiatives. The Office develops and implements programs for the production, utilization and conservation of energy in a manner that meets basic needs while maintaining Kentucky's economic growth at the highest feasible level. The Office enters into agreements, administers grant programs and serves as a liaison with the federal government and other states in matters relating to energy; and participates in the review of applications, and upon request of the Kentucky Economic Development Finance Authority, assists in monitoring tax incentive agreements as provided in Subchapter 27 of KRS 154. ## Policy The Governor's budget includes additional funding in the amount of $18,800 in fiscal year 2027 and $38,800 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 $6,200 and $12,800, respectively. ===== PAGE 175 =====
Energy and Environment
Kentucky Nature Preserves
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,563,4001,669,3001,737,6001,634,4001,667,800
State Salary and Compensation
Allocation43,0008,40013,000
Budget Reduction-General Fund(17,500)
Total General Fund1,606,4001,677,7001,733,1001,634,4001,667,800
Restricted Funds
Balance Forward1,629,5561,389,8501,226,1001,009,300697,700
Current Receipts782,908878,0202,308,2001,957,6002,041,200
Non-Revenue Receipts410,398407,220186,100385,600382,900
Total Restricted Funds2,822,8612,675,0903,720,4003,352,5003,121,800
Federal Fund
Balance Forward(21,696)(37,180)(71,500)
Current Receipts166,918158,550356,600280,900283,000
Non-Revenue Receipts(8,898)(5,720)(5,800)(5,800)(4,800)
Total Federal Fund136,324115,650279,300275,100278,200
TOTAL SOURCE OF FUNDS4,565,5864,468,4405,732,8005,262,0005,067,800
EXPENDITURES BY CLASS
Personnel Costs2,653,6512,731,4562,671,3002,697,1002,759,100
Operating Expenses391,850452,938448,900462,800462,400
Grants Loans Benefits119,749102,9841,585,3001,386,4001,386,800
Capital Outlay47,66526,37718,00018,00018,000
TOTAL EXPENDITURES3,212,9153,313,7554,723,5004,564,3004,626,300
EXPENDITURES BY FUND SOURCE
General Fund1,606,4001,677,7001,733,1001,634,4001,667,800
Restricted Funds1,433,0111,448,9392,711,1002,654,8002,680,300
Federal Fund173,504187,117279,300275,100278,200
TOTAL EXPENDITURES3,212,9153,313,7554,723,5004,564,3004,626,300
EXPENDITURES BY UNIT
Office of KY Nature Preserves3,212,9153,313,7554,723,5004,564,3004,626,300
TOTAL EXPENDITURES3,212,9153,313,7554,723,5004,564,3004,626,300
Pursuant to KRS 146.410-146.530, the Office of Kentucky Nature Preserves', formerly known as the Kentucky State Nature Preserves Commission, mission is two-fold: to inventory the Commonwealth for its natural diversity, including its plants, animal life, biological communities, and areas of natural significance, and to protect these natural features by establishing a system of nature preserves. Pursuant to KRS 224.10-022, the Office is attached to the Energy and Environment Cabinet. Acquisition and management funds for the agency are derived through a tax refund check-off system authorized in KRS 141.450-141.480, through gifts, grants, devises and bequests pursuant to KRS 146.465, and through allocations from the Kentucky Heritage Land Conservation Fund pursuant to KRS 146.570. The Office, together with the Kentucky Department of Fish and Wildlife Resources, shares equally the receipts generated by the Non-game Species Protection and Habitat Acquisition program. The Office is responsible for administering the Wild Rivers program. Whose mission is to preserve the Commonwealth's natural streams and attract out-of-state visitors pursuant to KRS 146.200-360. ===== PAGE 176 ===== ## Policy The Governor's budget includes additional funding in the amount of $43,700 in fiscal year 2027 and $89,900 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 $23,600 and $48,500, respectively. ===== PAGE 177 =====
Energy and Environment Public Service Commission
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation12,862,50013,833,40014,620,90013,728,60013,992,500
State Salary and Compensation Allocation314,8001,0001,600
Continuing Approp-General Fund2,353,6801,687,9601,172,900 (438,700)
Total General Fund15,530,98015,522,36015,356,70013,728,60013,992,500
Restricted Funds
Balance Forward3,230,5603,884,7273,600,1002,231,4001,059,000
Current Receipts1,342,746997,143996,9001,176,4001,292,300
Non-Revenue Receipts618,907540,680676,700691,500693,000
Total Restricted Funds5,192,2135,422,5505,273,7004,099,3003,044,300
Federal Fund
Balance Forward(142,998)(124,259)(124,000)
Current Receipts881,9321,039,2141,346,9001,169,6001,181,200
Non-Revenue Receipts(123,421)(94,748)(84,200)(84,200)(84,200)
Total Federal Fund615,513820,2071,138,7001,085,4001,097,000
TOTAL SOURCE OF FUNDS21,338,70621,765,11621,769,10018,913,30018,133,800
EXPENDITURES BY CLASS
Personnel Costs13,005,75314,658,00516,638,80015,369,50015,601,800
Operating Expenses1,845,4352,280,2882,524,3002,158,7002,203,500
Grants Loans Benefits6,905
Capital Outlay1,039,091170,863374,600326,100326,100
TOTAL EXPENDITURES15,890,27817,116,06119,537,70017,854,30018,131,400
EXPENDITURES BY FUND SOURCE
General Fund13,843,01914,349,48515,356,70013,728,60013,992,500
Restricted Funds1,307,4861,822,3673,042,3003,040,3003,041,900
Federal Fund739,773944,2091,138,7001,085,4001,097,000
TOTAL EXPENDITURES15,890,27817,116,06119,537,70017,854,30018,131,400
EXPENDITURES BY UNIT
Public Service Commission15,890,27817,116,06119,537,70017,854,30018,131,400
TOTAL EXPENDITURES15,890,27817,116,06119,537,70017,854,30018,131,400
The Public Service Commission, pursuant to KRS Chapter 278, regulates the intrastate rates and services of over 500 investor-owned electric, natural gas, telephone, water and sewage utilities, rural electric and telephone cooperatives, and water districts. The three-member Commission performs its regulatory functions through written orders following adjudicative and rule making procedures outlined in statute. The Commission is an independent agency attached to the Energy and Environment Cabinet for administrative purposes only. The Commission's goal is to ensure that every utility charges fair, just, and reasonable rates for the services rendered and that those services are adequate and efficient. The agency is funded by an assessment of all utilities under the Commission's jurisdiction based on the annual gross intrastate revenues. ===== PAGE 178 ===== The Commission staff is organized into the Divisions of Inspections, General Counsel, General Administration, Commission Operations, Financial Analysis, and Gas Pipeline Safety. ## Policy The Governor's budget includes additional funding in the amount of $206,400 in fiscal year 2027 and $423,800 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 $189,900 and $389,900, respectively. ===== PAGE 179 ===== Finance and Administration ===== PAGE 180 =====
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation661,360,200634,987,900972,333,700840,700,5001,075,917,300
Budget Reserve5,000,0005,000,000
State Salary and Compensation
Allocation5,735,000831,500240,400
Current Year Appropriation3,700,000
Continuing Approp-General Fund(6,443,700)
Budget Reduction-General Fund18,500,000
Mandated Allotments3,553,4003,500,000
Total General Fund674,348,600644,319,400971,130,400859,200,5001,075,917,300
Tobacco Fund
Tobacco Settlement - Phase I23,916,20023,716,90017,033,70014,350,20014,130,800
Total Tobacco Fund23,916,20023,716,90017,033,70014,350,20014,130,800
Restricted Funds
Balance Forward79,689,92783,047,98598,867,10059,352,50042,276,100
Current Receipts248,651,688271,298,263263,412,700270,629,000270,628,900
Non-Revenue Receipts24,004,1752,524,934(25,378,700)4,024,1003,622,800
Total Restricted Funds352,345,790356,871,181336,901,100334,005,600316,527,800
Federal Fund
Balance Forward1,338,995323,204214,200
Current Receipts1,777,219302,8181,585,0001,766,6001,766,600
Non-Revenue Receipts2,400
Total Federal Fund3,116,214626,0221,801,6001,766,6001,766,600
TOTAL SOURCE OF FUNDS1,053,726,8041,025,533,5031,326,866,8001,209,322,9001,408,342,500
EXPENDITURES BY CLASS
Personnel Costs288,042,932286,542,499300,912,500305,421,600311,427,300
Operating Expenses174,563,202182,697,728180,822,700185,026,300186,805,300
Grants Loans Benefits25,631,65513,178,93712,642,200815,800815,800
Debt Service300,685,004322,332,796722,342,400625,629,900790,891,100
Capital Outlay30,267,87820,631,39324,252,70024,554,20024,548,200
TOTAL EXPENDITURES819,190,672825,383,3541,240,972,5001,141,447,8001,314,487,700
EXPENDITURES BY FUND SOURCE
General Fund524,682,646544,568,329945,713,300833,601,5001,007,818,100
Tobacco Fund22,417,21222,398,90015,909,00014,350,20014,130,800
Restricted Funds269,297,805258,004,232277,548,600291,729,500290,772,200
Federal Fund2,793,010411,8931,801,6001,766,6001,766,600
TOTAL EXPENDITURES819,190,672825,383,3541,240,972,5001,141,447,8001,314,487,700
EXPENDITURES BY UNIT
General Administration67,676,36957,794,68763,077,00051,255,90051,875,200
Controller23,207,34722,740,35924,875,30025,374,10025,657,500
Debt Service267,911,723303,675,915711,979,700615,317,600780,618,000
Facilities and Support Services84,776,56272,174,45866,685,90069,015,60070,312,600
===== PAGE 181 =====
County Costs33,918,05833,744,42730,946,00030,946,00030,946,000
Commonwealth Office of Technology149,454,367135,034,869141,995,300146,937,900148,750,100
Revenue127,641,234133,901,132129,088,500132,271,900134,325,500
Property Valuation Administrators64,605,01266,317,50872,324,80070,328,80072,002,800
TOTAL EXPENDITURES819,190,672825,383,3541,240,972,5001,141,447,8001,314,487,700
The Finance and Administration Cabinet is responsible for managing the financial resources of the Commonwealth and for providing central administrative services to agencies of state and local government. The mission of the Finance and Administration Cabinet is to provide its customers with assistance in the delivery of quality services, effective administration, and sound financial management. The Cabinet provides leadership, coordination, and support to other state agencies to ensure accountability and integrity in the use of public resources. The Finance and Administration Cabinet constantly strives to conduct government business more effectively. Moreover, among the highest priorities of the Cabinet is providing state government with the resources necessary to carry out its mission by equitable and efficient revenue collection. The Cabinet's duties include construction of state facilities, property management including motor vehicles, tax administration and collection, management of the Commonwealth's information technology systems, expenditure control, and state purchasing. ===== PAGE 182 =====
Finance and Administration
General Administration
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation8,337,40015,527,50015,027,8004,645,5008,051,500
Budget Reserve5,000,0005,000,000
State Salary and Compensation
Allocation319,30010,200
Current Year Appropriation3,700,000
Budget Reduction-General Fund(247,100)
Total General Fund12,356,70020,527,50019,790,9004,645,5008,051,500
Restricted Funds
Balance Forward9,802,7407,738,35313,233,20012,897,2009,231,800
Current Receipts29,411,84837,703,59537,974,90039,718,00039,717,900
Non-Revenue Receipts23,006,9004,934,2004,940,2003,227,0003,227,000
Total Restricted Funds62,221,48850,376,14856,148,30055,842,20052,176,700
Federal Fund
Balance Forward1,344,308329,280216,800
Current Receipts41,50511,734(181,800)
Total Federal Fund1,385,814341,01435,000
TOTAL SOURCE OF FUNDS75,964,00271,244,66175,974,20060,487,70060,228,200
EXPENDITURES BY CLASS
Personnel Costs15,543,61115,769,66517,425,00017,543,50018,092,800
Operating Expenses18,003,03217,417,90718,276,10018,362,50018,432,500
Grants Loans Benefits25,025,16512,611,50911,826,400
Capital Outlay9,104,56111,995,60615,549,50015,349,90015,349,900
TOTAL EXPENDITURES67,676,36957,794,68763,077,00051,255,90051,875,200
EXPENDITURES BY FUND SOURCE
General Fund12,136,70020,527,50019,790,9004,645,5008,051,500
Restricted Funds54,483,13537,142,98043,251,10046,610,40043,823,700
Federal Fund1,056,534124,20735,000
TOTAL EXPENDITURES67,676,36957,794,68763,077,00051,255,90051,875,200
EXPENDITURES BY UNIT
Secretary6,711,6009,613,4768,925,8001,810,9001,841,900
Gubernatorial Transition220,000
General Counsel3,049,6663,141,3373,397,7003,268,3003,338,300
Administrative Services5,533,2845,729,2696,719,7006,769,0006,906,900
Fleet Management28,344,50530,297,28434,360,00034,780,10034,865,600
Postal Services3,254,7183,331,3993,913,4003,924,2003,985,900
Policy and Audit476,152681,922760,400703,400716,600
Rural Housing Trust Fund20,306,4445,000,0005,000,000
TOTAL EXPENDITURES67,676,36957,794,68763,077,00051,255,90051,875,200
===== PAGE 183 ===== The General Administration appropriation unit provides coordination and management of the Cabinet. The Office of the Secretary, including the Office of Legislative and Intergovernmental Affairs and the Office of the Inspector General, develops executive policy and directs the overall management of the Commonwealth's property and financial assets. Office staff coordinates fiscal and personnel administration for the Cabinet, reviews all internal reorganizations, prepares the Cabinet legislative package, and handles inquiries and issues that arise from the General Assembly, the news media, and the general public. The Secretary of Finance serves on numerous boards and commissions including the Kentucky Economic Development Partnership Board, the Kentucky Economic Development Finance Authority, the Kentucky Infrastructure Authority, the Kentucky Higher Education Assistance Authority, and the Kentucky Housing Corporation. The Office of the Inspector General is responsible for conducting various investigations within the Executive Branch pursuant to KRS 45.131. The Office of Equal Employment Opportunity (EEO) and Contract Compliance is responsible for developing, implementing, and monitoring the Finance and Administration Cabinet's affirmative action plan as required by KRS 18A.138. The Office also monitors all contracts in excess of $500,000 awarded by the Cabinet to ensure compliance with the affirmative action provisions of the Kentucky Equal Employment Opportunity Act. The Office of General Counsel provides legal services to the departments of the Finance and Administration Cabinet and Cabinet-related entities. Members of this office represent the Secretary of the Cabinet in civil litigation. The unit also reviews legislation being considered by the General Assembly. The Office of Administrative Services manages personnel, fiscal policy, and payroll functions for all units within the Finance and Administration Cabinet, the Governor's Office, the Executive Branch Ethics Commission, the School Facilities Construction Commission, and the Lieutenant Governor's Office. This budget unit includes the Office of Budget and Fiscal Management which prepares the Cabinet's budget, oversees internal accounting and procurement, and manages the Cabinet's personal property inventory. The Office of Administrative Services also includes the Division of Human Resources and has responsibility for the management and oversight of the Division of Postal Services. The Division of Postal Services includes one mail management center which provides a secure environment for the Commonwealth's mail. The Division provides messenger service to all state agencies and performs mail processing functions for over 125 state agencies. This division advises agencies about USPS rules, regulations, and services. The Office of Fleet Management manages and maintains the Commonwealth's vehicle fleet for use by state agencies and employees. The Office of Policy and Audit is responsible for assuring the reliability and integrity of information used to support management decision making, evaluating how state assets are safeguarded, providing risk and insurance management to the Cabinet, and appraising the economy and efficiency of resource use. Staff also ascertains whether the operations and programs are being implemented as planned, and performs special studies at the request of management. Established in KRS 198A./44, the Rural Housing Trust Fund is administered by the Kentucky Housing Corporation. The fund exists to assist moderate income individuals in meeting basic housing needs. ## Policy The Governor's budget includes $229,300 of additional Restricted Fund spending in fiscal year 2027 and $241,300 of additional spending in fiscal year 2028 for two additional positions in the Division of Fleet Management. General Fund in the amount of $220,000 in fiscal year 2028 is included to support the Gubernatorial Transition. The $6,800,000 annual, recurring contribution to the Kentucky Affordable Prepaid Tuition trust fund was removed from the base General Fund budget and replaced with a $17,900,000 lump-sum contribution to the fund in fiscal year 2027 to fully pay down the actuarially determined liability of the trust fund. This one-time funding to pay down the liability is from the Budget Reserve Trust Fund and will ensure that the promises made to Kentucky families are honored. I he Governor's budget includes additional funding in the amount of $280,000 in fiscal year 2027 and $575,200 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. The General Fund portion is $134,400 and $276,100 respectively. ===== PAGE 184 =====
Finance and Administration Controller
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation8,737,4007,567,8007,404,4004,272,2005,653,700
State Salary and Compensation Allocation217,80013,200
Budget Reduction-General Fund(222,500)
Total General Fund8,955,2007,567,8007,195,1004,272,2005,653,700
Restricted Funds
Balance Forward16,540,70020,863,78126,577,3005,960,1005,134,100
Current Receipts16,240,11318,539,89116,052,90017,027,70017,027,700
Non-Revenue Receipts2,335,1142,346,152(18,989,900)3,248,2002,846,900
Total Restricted Funds35,115,92841,749,82423,640,30026,236,00025,008,700
TOTAL SOURCE OF FUNDS44,071,12849,317,62430,835,40030,508,20030,662,400
EXPENDITURES BY CLASS
Personnel Costs12,187,71913,125,71414,811,70014,629,10014,902,800
Operating Expenses9,331,6289,390,64510,063,60010,745,00010,754,700
Debt Service1,688,000224,000
TOTAL EXPENDITURES23,207,34722,740,35924,875,30025,374,10025,657,500
EXPENDITURES BY FUND SOURCE
General Fund8,955,2007,567,8007,195,1004,272,2005,653,700
Restricted Funds14,252,14715,172,55917,680,20021,101,90020,003,800
TOTAL EXPENDITURES23,207,34722,740,35924,875,30025,374,10025,657,500
EXPENDITURES BY UNIT
Controller4,514,3694,281,5565,278,5005,172,0005,223,300
Local Government Services974,8041,227,5831,446,0001,441,7001,466,000
Financial Management4,405,9524,356,3864,679,4004,602,7004,649,800
Procurement Services3,011,2633,758,4823,977,7003,988,1004,075,600
Customer Resource Center7,649,2666,478,6326,180,5006,870,9006,901,700
State Risk and Insurance Services2,651,6942,637,7203,313,2003,298,7003,341,100
TOTAL EXPENDITURES23,207,34722,740,35924,875,30025,374,10025,657,500
The Office of the Controller provides management for financial accounting control policies and procedures; financial accounting systems; debt management; state purchasing; administration of the Old-Age, Survivors, Disability and Hospital Insurance program; and functions relating to the county fee systems for local entities. The State Controller functions as the Commonwealth's Chief Accounting Officer and participates in the development and maintenance of the Commonwealth's strategic financial management program. The Division of Local Government Services administers, for the benefit of state employees and political subdivisions within the Commonwealth, the Old Age and Survivors Insurance program under Section 218 of the federal Social Security Act. This program is responsible for ensuring that the social security obligations of the state and its political subdivisions are met. To fulfill this responsibility, the State Office for Social Security periodically visits each of the political subdivisions for a procedural, compliance, and fiscal audit pursuant to KRS 61.410-61.500. The Division also provides personnel, accounting, and other administrative services to counties through the County Costs, County Fees, and PVA programs. ===== PAGE 185 ===== The Office of Statewide Accounting Services is responsible for maintenance and operation of the central statewide accounting system and provides centralized accounting of all receipts and disbursements of the Commonwealth. In addition, this division prepares daily, monthly, and annual financial reports, which constitute a complete report of the financial activities and condition of the Commonwealth. The Office of Financial Management manages the state's investments and debt. This includes managing cash flow to maximize the return on state investments, making debt service payments, managing the sale of bonds, and reporting to the General Assembly on all investment and debt matters. The Office is responsible for developing a long-term debt plan for the Commonwealth, including the development of criteria for the issuance of debt, providing an evaluation of how much total state debt is justified, and evaluating revenue projections relative to proposed revenue bond issues. The Office handles all investments on behalf of the General Fund, the Capital Construction Fund, the Road Fund, and approximately 50 other accounts. The Office of Procurement Services is responsible for the central purchasing and materials management for state government (excluding construction and road maintenance). The Office supports the Procurement software module of eMARS, designing and testing modifications to the software to ensure it meets the needs of user agencies. The Division of Goods and Services Procurement and the Division of Technology Services Procurement are responsible, with respect to their area of expertise, for purchasing all commodities and non-professional services for state agencies that exceed an agency's small purchase authority limit. The office also provides administrative oversight and review of all personal service contracts and Memoranda of Agreement, and ensures compliance with the provisions of KRS Chapter 45A prior to forwarding contracts to the Legislative Research Commission, Government Contract Review Committee, for review. Pursuant to KRS 45.065, the Kentucky Procurement Institute provides procurement training to all Executive Branch agencies. The Division of the Customer Resource Center (CRC) operates a help desk to support over 4,000 users of the eMARS system and is responsible for training Commonwealth employees on all eMARS products. In addition, CRC is responsible for developing and analyzing reports to identify areas that need improvement. The Division of State Risk & Insurance Services manages the state property insurance program, the state building sprinkler system program and the state automobile insurance program in accordance with KRS Chapter 56. ## Policy Additional Restricted Funds appropriation is included for the Customer Resource Center in fiscal years 2027 and 2028 in the amount of $822,400 and $832,100 respectively to provide ongoing support for eMARS, the Commonwealth's financial management system. I he Governor's budget includes additional funding in the amount of $201,100 in fiscal year 2027 and $412,900 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. The General Fund portion is $70,400 and $144,500 respectively. ===== PAGE 186 =====
Finance and Administration
Debt Service
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation392,545,500379,897,300721,737,800608,316,400834,836,400
Continuing Approp-General Fund18,500,000
Total General Fund392,545,500379,897,300721,737,800626,816,400834,836,400
Tobacco Fund
Tobacco Settlement - Phase I23,666,20023,466,90016,783,70014,100,20013,880,800
Total Tobacco Fund23,666,20023,466,90016,783,70014,100,20013,880,800
TOTAL SOURCE OF FUNDS416,211,700403,364,200738,521,500640,916,600848,717,200
EXPENDITURES BY CLASS
Debt Service267,911,723303,675,915711,979,700615,317,600780,618,000
TOTAL EXPENDITURES267,911,723303,675,915711,979,700615,317,600780,618,000
EXPENDITURES BY FUND SOURCE
General Fund245,744,511281,527,015696,320,700601,217,400766,737,200
Tobacco Fund22,167,21222,148,90015,659,00014,100,20013,880,800
TOTAL EXPENDITURES267,911,723303,675,915711,979,700615,317,600780,618,000
EXPENDITURES BY UNIT
Debt Service267,911,723303,675,915711,979,700615,317,600780,618,000
TOTAL EXPENDITURES267,911,723303,675,915711,979,700615,317,600780,618,000
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. ## Policy 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. ===== PAGE 187 ===== Excess unbudgeted funds in the amount of $38,500,000 in each fiscal year are transferred to the Debt Service Fund to be used to pay debt service on previously issued bonds. These funds include: $12,000,000 in each fiscal year from Medical Cannabis application fees; $9,000,000 in each fiscal year from the Department of Financial Institutions; $6,500,000 in each fiscal year from interest earnings on funds from the Local Government Economic Development Fund; $6,000,000 in each fiscal year from the Department for Alcoholic Beverage Control; and $5,000,000 in each fiscal year from the Secretary of State. In addition, in accordance with the appropriations act, Restricted Funds from excess bond proceeds and investment income earned on bond proceeds in the amount of $17,725,700 in fiscal year 2027 are transferred to the Debt Service Fund to be used to pay debt service. ===== PAGE 188 =====
Finance and Administration Facilities and Support Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation27,879,50017,097,2009,572,0009,157,9009,339,600
State Salary and Compensation Allocation124,100700
Budget Reduction-General Fund(287,200)
Total General Fund28,003,60017,097,2009,285,5009,157,9009,339,600
Restricted Funds
Balance Forward7,303,8486,251,8709,764,10010,867,0009,721,300
Current Receipts56,131,99459,683,79659,346,70059,273,10059,273,100
Non-Revenue Receipts(411,010)(1,094,318)(843,400)(561,100)(561,100)
Total Restricted Funds63,024,83264,841,34768,267,40069,579,00068,433,300
TOTAL SOURCE OF FUNDS91,028,43281,938,54777,552,90078,736,90077,772,900
EXPENDITURES BY CLASS
Personnel Costs29,842,34830,019,90631,056,50031,900,10032,700,200
Operating Expenses21,596,25222,361,31322,935,60024,441,10024,983,200
Debt Service31,085,28118,114,38110,362,70010,312,30010,273,100
Capital Outlay2,252,6811,678,8582,331,1002,362,1002,356,100
TOTAL EXPENDITURES84,776,56272,174,45866,685,90069,015,60070,312,600
EXPENDITURES BY FUND SOURCE
General Fund28,003,60017,097,2009,285,5009,157,9009,339,600
Restricted Funds56,772,96255,077,25857,400,40059,857,70060,973,000
TOTAL EXPENDITURES84,776,56272,174,45866,685,90069,015,60070,312,600
EXPENDITURES BY UNIT
Commissioner's Office1,431,6571,311,734928,200920,500934,300
Facility Development and Efficiency5,385,1536,040,0146,268,5006,433,8006,541,400
Real Property1,476,8181,810,1732,021,0002,001,6002,041,700
Historic Properties472,215494,101488,700499,600506,000
Building and Mechanical Services75,180,47961,569,74356,021,70058,174,80059,287,000
State Surplus Property804,259912,112926,900954,400971,300
Federal Surplus Property25,98236,58030,90030,90030,900
TOTAL EXPENDITURES84,776,56272,174,45866,685,90069,015,60070,312,600
The Department for Facilities and Support Services consists of the Commissioner's Office and five offices/divisions: Facility Development and Efficiency, Historic Properties, Real Properties, Surplus Properties, and the Office of Building and Mechanical Services. The Department manages the State's facilities construction program, maintains Finance and Administration Cabinet buildings, provides management and oversight of state-owned historical buildings and sites, and provides real property acquisition, disposition, leasing, and inventory services. The Commissioner's Office coordinates and supervises the activities of the five offices/divisions authorized in KRS 42.425. ===== PAGE 189 ===== The Office of Facility Development and Efficiency includes the Division of Engineering and Contract Administration which provides professional and technical engineering and architectural services to state agencies, reviews capital construction design documents, acts as a liaison between the Department and state agencies on new construction and major maintenance projects, and monitors construction and maintenance contracts for compliance with plans and specifications. The Division is also responsible for administering the procurement process for construction projects of the Commonwealth of Kentucky, excluding roads and bridges, as prescribed by the Kentucky Model Procurement Code (KRS 45A) and the related administrative regulations. The Division prepares invitations to bid, opens and evaluates those bids, and awards contracts. The Office of Facility Development and Efficiency also includes the Division of Facility Efficiency which is responsible for managing the Guaranteed Energy Saving Performance Contracting program and for implementing the Commonwealth Energy Management and Control System (CEMCS). The CEMCS project is an aggressive effort to use an enterprise software platform to reduce energy use in state buildings. The Division of Real Properties provides buildings and parking facilities for state agencies throughout the Commonwealth. The Division manages the Commonwealth's acquisition, inventory, and use of both state-owned and privately-owned leased space. The Division of Historic Properties, in accordance with KRS 42.019 and KRS 11.026, is responsible for the preservation and maintenance of Finance and Administration Cabinet-owned historic sites including the Kentucky State Capitol, Executive Mansion, Old Governor's Mansion, Berry Hill Mansion, and the Vest-Lindsey State Meeting House. The Division consults with the Department of Parks to preserve and maintain those historic sites under the management and control of the Tourism Cabinet. The same consultation services are provided to other agencies within state government as requested. The Director of the Division of Historic Properties serves as State Curator and a member of the Historic Properties Advisory Commission. The Office of Building and Mechanical Services, which includes the Division of Building Services and the Division of Mechanical Services, as authorized by KRS 42.425, provides services for all Finance and Administration Cabinet- operated buildings and for the state agencies occupying those facilities. The Office is responsible for several buildings in Frankfort including the Capitol, New Capitol Annex, Old Capitol, Old Capitol Annex, Human Resources Building, Executive Mansion, Old Governor's Mansion, 300 Building, State Office Building, KHEAA Building, Library and Archives Building, Central Lab Facility, the Kentucky History Center, the Transportation Cabinet building, and the Mayo-Underwood Building. The Office also services buildings at the London Regional state office complex, the Spindletop Research Complex in Fayette County, and offices in Louisville and Richmond that were formerly owned and operated by Cabinet for Health and Family Services. Services provided include minor renovations; maintaining parking lots, sidewalks and ramps; janitorial and landscaping services; maintaining the heating, ventilating, and air conditioning systems; maintaining special equipment within the buildings as requested; roof repair; fire alarm and security systems; electrical systems; energy conservation; maintaining elevators and escalators; maintaining emergency power systems; and after-hours emergency services. The Department entered into two public-private partnerships for the development of new state office space in Franklin County. The first, included in the 2014-2016 Executive Branch appropriations act, authorized the Department for Facilities and Support Services to construct a new state office building to house displaced state workers from the Capital Plaza Tower and privately leased space. The Department entered into an agreement with a private developer to construct, operate, and maintain the property at 300 Sower Boulevard in Franklin County for a period of 35 years, at which time the Commonwealth will take over ownership of the property. Construction was complete in the spring of 2016, and state employees began to occupy the new building shortly thereafter. Payments to the developer for amortization of the construction cost and for ongoing maintenance and operations are made by the Department for Facilities and Support Services in conjunction with the Office of Financial Management. The second project was authorized by Senate Bill 238 from the 2017 Regular Session of the General Assembly and was completed in the Fall of 2019. The Mayo-Underwood Building is on the former site of the Capital Plaza Tower in downtown Frankfort. Both new construction projects are consistent with the Cabinet's goal of reducing the Commonwealth's reliance on private leases. ## Policy Included in the Restricted Funds appropriation is an additional $1,017,400 in fiscal year 2027 and $1,726,700 in fiscal year 2028 from the Property Management Fund to cover inflated costs for utilities, rental and maintenance of equipment, pest control services, garbage collection, supplies, and materials. The Governor's budget includes additional funding in the amount of $398,300 in fiscal year 2027 and $818,100 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. The General Fund portion is $123,500 and $253,600 respectively. ===== PAGE 190 =====
Finance and Administration
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation29,243,50029,243,50029,243,50029,243,50029,243,500
Mandated Allotments3,553,4003,500,000
Total General Fund32,796,90032,743,50029,243,50029,243,50029,243,500
Restricted Funds
Current Receipts1,121,1571,015,6921,702,5001,702,5001,702,500
Total Restricted Funds1,121,1581,015,6921,702,5001,702,5001,702,500
TOTAL SOURCE OF FUNDS33,918,05833,759,19230,946,00030,946,00030,946,000
EXPENDITURES BY CLASS
Personnel Costs6,136,1716,023,1155,419,7005,419,7005,419,700
Operating Expenses27,199,34027,153,88324,710,50024,710,50024,710,500
Grants Loans Benefits582,547567,429815,800815,800815,800
TOTAL EXPENDITURES33,918,05833,744,42730,946,00030,946,00030,946,000
EXPENDITURES BY FUND SOURCE
General Fund32,796,90032,728,73529,243,50029,243,50029,243,500
Restricted Funds1,121,1581,015,6921,702,5001,702,5001,702,500
TOTAL EXPENDITURES33,918,05833,744,42730,946,00030,946,00030,946,000
EXPENDITURES BY UNIT
Public Defender Program6,103,2615,988,8515,386,7005,386,7005,386,700
Witnesses65,40097,36790,00090,00090,000
DUI Service Fees582,547567,429815,800815,800815,800
Sheriffs Fees123,201,58023,378,72820,516,70020,516,70020,516,700
County Clerks (Make Tax Bills)204,870224,706230,000230,000230,000
Board Of Assessment Appeals34,32519,85040,00040,00040,000
Fugitive From Justice1,382,2741,320,5371,498,3001,498,3001,498,300
Jury Fund1,879,9381,661,2371,901,4001,901,4001,901,400
Sheriffs Expense Allowance463,110483,253462,100462,100462,100
Premium On Sheriffs' Bonds7532,4695,0005,0005,000
TOTAL EXPENDITURES33,918,05833,744,42730,946,00030,946,00030,946,000
The County Costs program provides payment to local officials for the performance of functions required by state statutes. Payments under the County Costs program are statutorily mandated and are regarded as a necessary governmental expense. KRS 31.185 requires the fiscal court or legislative body of an urban county government to annually appropriate twelve and one-half cents ($0.125) per capita of the population of the county as determined by the Council of Local Governments' most recent population statistics. The funds, which shall not lapse, shall be held in a special account to be administered by the Finance and Administration Cabinet, and shall be used to pay all court orders that have been entered into as a result of a needy defendant's motion for funding assistance. If the funds are depleted in any given year, any unpaid court orders will be paid as a judgment against the Commonwealth. In accordance with KRS 421.015 and 421.250, circuit and district court clerks provide witnesses compensation with reimbursement being provided by the State Treasury upon claim accompanied by documentation. The service fee imposed by KRS 189A.050 for persons convicted of driving under the influence of alcohol or other substances shall be disbursed among various state and local agencies to fund such programs as enforcement, indigent defense, and the traumatic brain injury trust fund. ===== PAGE 191 ===== Pursuant to KRS 64.092, the sheriff or other law enforcement officer providing security in a Circuit or District Court shall be compensated at the rate of $8 per hour of service. Pursuant to KRS 133.240, county clerks are paid $0.30 per tax bill for preparing property tax bills and $1.00 for omitted assessments. The Finance and Administration Cabinet is responsible for remitting half of the allowed amount to the county clerk. Pursuant to KRS 133.030, each member of a county board of assessment appeals is compensated $100 per day for their services in hearing tax appeals and reviewing tax assessments. The Finance and Administration Cabinet refunds county fiscal courts for half of the board members' compensation. As authorized by the County Judge Executive or the Governor, and pursuant to KRS 440.090 and 440.380, duly appointed officers are reimbursed by the Finance and Administration Cabinet for mileage and expenses incurred while traveling out of state and returning a fugitive from justice to Kentucky. KRS 29A.170 and KRS 30A.110 require that all jurors in circuit and district court be paid a daily compensation of $12.50 per day. The Finance and Administration Cabinet administers this compensation and reimbursement program in cooperation with each county circuit court clerk office. Under KRS 29A.180, sequestered jurors are provided meals, housing, transportation, and security which are funded by the Finance and Administration Cabinet. Pursuant to KRS 70.170, the Finance and Administration Cabinet administers the sheriffs' expense allowance program by issuing monthly checks to each of the 120 county sheriffs. The payments of $300 per month are for expenses incurred in the performance of his or her official duties. KRS 62.140 and KRS 62.155 requires the Commonwealth to reimburse each county sheriff for the cost of bond premiums required by law in the performance of his or her official duties. Under KRS 27A.630, filing fees for civil actions include $20 in Circuit Court and $10 in District Court to support access to justice by indigent clients. The fees are paid to the General Fund, and the Finance and Administration Cabinet distributes them monthly to non-profit agencies designated by the Chief Justice in each judicial district to provide the legal services. In previous years these have been accounted for as expenditures requiring an appropriation. Upon recommendation of the Finance Cabinet, these will be considered as reductions to revenue and accounted for solely on the revenue side of the ledger. ## Policy Funds required to pay county costs are appropriated, and additional funds may be allotted from the General Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund Account (KRS 48.705) by the Secretary of the Finance and Administration Cabinet as a necessary governmental expense, subject to the conditions and procedures provided in the appropriations act. The budget sustains the $15 per hour wage rate for Court Security Officers budgeted in the Sheriffs' Fees program. ===== PAGE 192 =====
Finance and Administration
Commonwealth Office of Technology
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation8,793,800318,500
State Salary and Compensation
Allocation730,400
Total General Fund8,793,8001,048,900
Restricted Funds
Balance Forward22,934,81918,051,89122,231,60021,705,60014,227,600
Current Receipts135,307,849139,252,278141,072,400138,742,700138,742,700
Non-Revenue Receipts(976,830)(1,358,200)(1,319,700)(999,400)(999,400)
Total Restricted Funds157,265,838155,945,969161,984,300159,448,900151,970,900
Federal Fund
Balance Forward(2,439)(2,439)(2,400)
Current Receipts1,716,476271,5801,716,6001,716,6001,716,600
Non-Revenue Receipts2,400
Total Federal Fund1,714,037269,1411,716,6001,716,6001,716,600
TOTAL SOURCE OF FUNDS167,773,675157,264,010163,700,900161,165,500153,687,500
EXPENDITURES BY CLASS
Personnel Costs69,423,27160,958,84466,865,00069,279,20069,934,200
Operating Expenses61,640,81666,928,34868,758,20070,816,50071,973,700
Grants Loans Benefits23,944
Debt Service318,500
Capital Outlay18,366,3366,829,1776,372,1006,842,2006,842,200
TOTAL EXPENDITURES149,454,367135,034,869141,995,300146,937,900148,750,100
EXPENDITURES BY FUND SOURCE
General Fund8,523,9441,048,900
Restricted Funds139,213,947133,714,389140,278,700145,221,300147,033,500
Federal Fund1,716,476271,5801,716,6001,716,6001,716,600
TOTAL EXPENDITURES149,454,367135,034,869141,995,300146,937,900148,750,100
EXPENDITURES BY UNIT
Commonwealth Office of Technology14,611,2588,933,3665,465,6006,115,9006,157,800
Chief Information Security Officer19,462,08914,609,85916,031,90019,162,10020,350,300
Infrastructure Services49,238,77838,650,78840,742,60041,705,50041,836,100
Architecture and Governance36,168,31436,544,54339,637,00038,877,10039,043,800
Client Support Services29,973,92836,296,31340,118,20041,077,30041,362,100
TOTAL EXPENDITURES149,454,367135,034,869141,995,300146,937,900148,750,100
The Commonwealth Office of Technology (COT) provides leadership, policy direction, and technical support to all Executive Branch agencies in the application of information technology and the delivery of information services. This broad statement of responsibility encompasses major information resource functions such as data center operations; voice, data, and video communications; application development; data security administration; computer hardware selection and installation; and related end-user and customer support services. The workload for COT is highly sensitive to agency programmatic shifts, particularly changes mandated by state and federal legislation. ===== PAGE 193 ===== COT consists of five units: Commissioner, Chief Information Security Officer, Architecture and Governance, Infrastructure Services, and Client Support Services. The Commissioner's Office is responsible for developing strategies and policies to promote the effective application of information technology within state government as a means of saving money, increasing efficiency and employee productivity, and improving services to the public, including electronic access to information of the Commonwealth. The Chief Information Security Officer manages security, access and acceptable use policies for all COT functions. As more and more of the Commonwealth's mission-critical applications go on-line, their potential exposure to malicious activity increases. In addition to maintaining the physical security of the Commonwealth Data Center and other COT facilities, the Security Office develops and maintains the disaster recovery business continuity plan. The Office of Architecture and Governance is responsible for providing comprehensive application development services. These services are provided upon request to Commonwealth agencies and adhere to the structure of the Office's system development lifecycle process that follows industry best practices for software development. The Office of Infrastructure Services is responsible for operation of the Commonwealth enterprise computing and communications environment. The office offers day-to-day technical support and operation of Executive Branch IT resources and operates the Commonwealth Data Center. This includes oversight of shared IT infrastructure resources and services, including large-scale computing, server hosting, IT security, data and voice communications networks, and phone systems. The Office of Client Support Services provides frontline customer support, asset management, and monitoring of the Commonwealth's infrastructure and application availability. In the Commonwealth Office of Technology operates as an internal service fund agency with budgetary support derived through the application of a federally-approved cost allocation plan, which distributes costs to user agencies based upon utilization of services. The rate schedule by which COT bills agencies for IT services is reviewed annually and adjusted as necessary to accurately reflect actual cost. By consolidating infrastructure services and purchases of equipment and software licenses, COT is able to provide many basic services at very competitive rates. ## Policy Additional Restricted Funds in the amount of $775,000 each fiscal year are included to support the requirements of KRS 42.731, which was effective March 24, 2025. The law added new duties to COT surrounding governance over the use of artificial intelligence by state government agencies. The Governor's budget includes additional Restricted Fund spending of $2,500,000 in each fiscal year to procure and implement Citizen Identity software to provide secure and seamless digital services to the public. Additional spending in the area of cybersecurity is included in the amount of $625,800 in fiscal year 2027 and $1,719,100 in fiscal year 2028 from Restricted Funds. Funds will be invested in key areas such as email integrity, data classification, directory resilience, and incident response and training. The Governor's budget includes additional funding in the amount of $540,300 in fiscal year 2027 and $1,109,800 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. ===== PAGE 194 =====
Finance and Administration
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation121,304,300117,664,600119,721,400119,523,000121,576,600
State Salary and Compensation Allocation2,620,300101,100216,300 (3,598,100)
Budget Reduction-General Fund
Total General Fund123,924,600117,765,700116,339,600119,523,000121,576,600
Tobacco Fund
Tobacco Settlement - Phase I250,000250,000250,000250,000250,000
Total Tobacco Fund250,000250,000250,000250,000250,000
Restricted Funds
Balance Forward22,597,99429,632,46026,371,4007,922,6003,961,300
Current Receipts10,431,10014,911,1243,166,0009,378,2009,378,200
Non-Revenue Receipts50,000(2,302,900)(9,165,900)(890,600)(890,600)
Total Restricted Funds33,079,09542,240,68420,371,50016,410,20012,448,900
Federal Fund
Balance Forward(2,874)(3,637)(200)
Current Receipts19,23819,50450,20050,00050,000
Total Federal Fund16,36315,86850,00050,00050,000
TOTAL SOURCE OF FUNDS157,270,058160,272,251137,011,100136,233,200134,325,500
EXPENDITURES BY CLASS
Personnel Costs90,741,58094,776,15493,748,90097,062,30099,115,900
Operating Expenses36,355,35438,997,22635,339,60035,209,60035,209,600
Capital Outlay544,300127,751
TOTAL EXPENDITURES127,641,234133,901,132129,088,500132,271,900134,325,500
EXPENDITURES BY FUND SOURCE
General Fund123,924,600117,765,700116,339,600119,523,000121,576,600
Tobacco Fund250,000250,000250,000250,000250,000
Restricted Funds3,446,63415,869,32612,448,90012,448,90012,448,900
Federal Fund20,00016,10650,00050,00050,000
TOTAL EXPENDITURES127,641,234133,901,132129,088,500132,271,900134,325,500
EXPENDITURES BY UNIT
Commissioner's Office48,398,68551,126,10048,087,80046,501,10046,735,000
Property Valuation12,067,76310,161,60010,563,50010,982,40011,191,600
Field Operations12,368,23214,890,80313,190,00014,186,40014,517,300
Income Taxation10,394,34411,064,00011,812,70012,743,40013,041,300
Sales and Excise Taxes10,955,49112,189,38612,595,70013,485,80013,767,000
Registration and Operations18,384,47319,136,90019,368,80020,217,40020,628,800
Office of Tax Policy & Regulation937,131948,1001,017,3001,124,3001,146,400
Enforcement14,135,11514,384,24312,452,70013,031,10013,298,100
TOTAL EXPENDITURES127,641,234133,901,132129,088,500132,271,900134,325,500
===== PAGE 195 ===== The Department of Revenue is responsible for the accurate and equitable administration of all state revenue laws, and for the assessment and collection of over 40 separate state taxes. The Department aims to ensure the taxpayer's voluntary compliance with the revenue laws, to enforce such laws in those instances where necessary, and to supervise and assist county property valuation administrators in assessing property for taxation. The Commissioner's Office includes the Division of Protest Resolution, the Division of Information Management, the Special Investigations Division, and the Taxpayer Ombudsman. Department-wide costs such as office rent, printing, postage, and information technology are budgeted in this unit. The Office of Property Valuation monitors and evaluates the real property assessments produced by the 120 locally-elected Property Valuation Administrators (PVAs). The office is charged with assessing the property of public service companies; collecting and distributing personal property taxes; and providing education, training, and technical support to the PVAs and sheriffs. The Office of Field Operations has 10 regional taxpayer service centers located across the state and is responsible for field audits and providing taxpayer assistance. The Office of Income Taxation administers individual and business income taxes, including employer withholding. The Office is responsible for technical tax research, compliance, taxpayer assistance, tax-specific training, and publications. The Office of Sales and Excise Taxes administers sales and use taxes and miscellaneous excise taxes. The Office conducts technical tax research and is responsible for compliance, taxpayer assistance, training, and publications. The Office of Enforcement, comprised of the Division of Collections, is responsible for collecting, in the most efficient manner, delinquent debt owed the Commonwealth. The Office of Registration and Operations receives all tax receipts, returns, refunds, documents and correspondence; registers new businesses; and maintains appropriate storage, retrieval and management of tax records for the Commonwealth. The Office of Tax Policy and Regulation is responsible for providing oral and written technical advice on Kentucky tax law; drafting proposed tax legislation and regulations; analyzing tax publications; providing expert witness testimony in tax litigation cases; providing consultation and assistance in protested tax cases; and conducting training and education programs. ## Policy The budget includes Tobacco Settlement Funds in the amount of $250,000 in each fiscal year for the state's diligent enforcement of noncompliant nonparticipating manufacturers. The Governor's budget includes additional General Fund in the amount of $1,402,900 in fiscal year 2027 and $2,881,000 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. ===== PAGE 196 =====
Finance and Administration
Finance and Administration
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation64,518,80067,671,50069,626,80065,542,00067,216,000
State Salary and Compensation Allocation2,453,500
Budget Reduction-General Fund(2,088,800)
Total General Fund66,972,30067,671,50067,538,00065,542,00067,216,000
Restricted Funds
Balance Forward509,826509,630689,500
Current Receipts7,626191,8874,097,3004,786,8004,786,800
Total Restricted Funds517,452701,5174,786,8004,786,8004,786,800
TOTAL SOURCE OF FUNDS67,489,75268,373,01772,324,80070,328,80072,002,800
EXPENDITURES BY CLASS
Personnel Costs64,168,23165,869,10271,585,70069,587,70071,261,700
Operating Expenses436,781448,406739,100741,100741,100
TOTAL EXPENDITURES64,605,01266,317,50872,324,80070,328,80072,002,800
EXPENDITURES BY FUND SOURCE
General Fund64,597,19066,305,47967,538,00065,542,00067,216,000
Restricted Funds7,82112,0294,786,8004,786,8004,786,800
TOTAL EXPENDITURES64,605,01266,317,50872,324,80070,328,80072,002,800
EXPENDITURES BY UNIT
Property Valuation Administrators64,605,01266,317,50872,324,80070,328,80072,002,800
TOTAL EXPENDITURES64,605,01266,317,50872,324,80070,328,80072,002,800
Each of the state's 120 counties has a locally elected Property Valuation Administrator (PVA). The PVA and an appointed staff are responsible for locating, identifying, and assessing at fair market value all taxable real property (land and improvements) and tangible personal property in the county. Tax revenues generated by these assessments are used to fund services provided by the state, cities, counties, and school districts as well as special taxing districts such as fire departments, libraries, extension offices, and refuse disposal services. Funding for PVA offices is provided by state, county, and city governments as well as from sales of maps and other geographic information. ## Policy The Governor's budget includes additional General Fund in the amount of $1,136,500 in fiscal year 2027 and $2,334,600 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. ===== PAGE 197 ===== Health and Family Services ===== PAGE 198 =====
Health and Family Services
Health and Family Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation3,501,679,4003,675,583,1004,193,966,7003,969,906,9004,714,939,300
Budget Reserve64,000,0002,000,000
State Salary and Compensation
Allocation16,814,60025,80056,900
Continuing Approp-General Fund14,780,9161,767,200
Budget Reduction-General Fund(27,050,200)
Total General Fund3,518,494,0003,754,389,8164,170,740,6003,969,906,9004,714,939,300
Tobacco Fund
Tobacco Settlement - Phase I26,000,00023,203,30023,380,00023,449,90021,629,300
Continuing Approp-Tob Settlement28,419,43715,406,3909,649,600
Other655,551515,780
Total Tobacco Fund55,074,98839,125,47033,029,60023,449,90021,629,300
Restricted Funds
Balance Forward580,688,299465,025,600220,698,600128,798,10061,880,700
Current Receipts1,434,991,6081,920,064,4102,420,721,0002,347,746,2002,300,676,400
Non-Revenue Receipts592,122,833562,856,036544,124,300793,482,000470,123,400
Total Restricted Funds2,607,802,7392,947,946,0463,185,543,9003,270,026,3002,832,680,500
Federal Fund
Balance Forward(13,309,443)(14,233,918)31,096,900
Current Receipts16,195,988,42617,438,437,86519,340,338,20018,884,325,50019,938,064,300
Non-Revenue Receipts4,115(4,315)
Total Federal Fund16,182,683,09817,424,199,63119,371,435,10018,884,325,50019,938,064,300
TOTAL SOURCE OF FUNDS22,364,054,82524,165,660,96426,760,749,20026,147,708,60027,507,313,400
EXPENDITURES BY CLASS
Personnel Costs1,334,164,7971,297,595,1161,501,506,7001,399,219,6001,389,496,600
Operating Expenses165,710,014171,376,862162,336,500165,723,700163,854,900
Grants Loans Benefits20,365,856,55422,416,813,60924,942,261,40024,510,938,10025,911,310,600
Debt Service12,134,94414,680,6639,810,8009,810,8009,810,800
Capital Outlay5,209,511423,801135,700135,700135,700
Construction17996
TOTAL EXPENDITURES21,883,075,83723,900,891,04726,616,051,10026,085,827,90027,474,608,600
EXPENDITURES BY FUND SOURCE
General Fund3,503,713,0843,751,065,1334,154,840,6003,969,906,9004,714,939,300
Tobacco Fund39,668,59829,475,86433,029,60023,449,90021,629,300
Restricted Funds2,142,777,1392,727,247,5793,056,745,8003,208,145,6002,799,975,700
Federal Fund16,196,917,01617,393,102,47119,371,435,10018,884,325,50019,938,064,300
TOTAL EXPENDITURES21,883,075,83723,900,891,04726,616,051,10026,085,827,90027,474,608,600
===== PAGE 199 =====
EXPENDITURES BY UNIT
General Administration and Program Support148,505,964165,017,653162,537,900160,985,900162,929,500
Aging and Independent Living94,899,74891,017,700101,621,400100,724,100100,950,300
Income Support
Public Health566,856,089539,222,084548,213,300768,284,500761,243,600
Behavioral Health, Developmental & Intellectual Disabilities536,231,512554,677,339555,500,800570,669,100572,021,800
Family Resource Centers and Volunteer Services39,795,19538,956,35946,380,30039,080,20039,133,500
Community Based Services1,988,026,2941,924,816,2481,949,450,6001,896,686,0001,910,283,400
Medicaid Services18,508,761,03420,587,183,66323,252,346,80022,549,398,10023,928,046,500
TOTAL EXPENDITURES21,883,075,83723,900,891,04726,616,051,10026,085,827,90027,474,608,600
The Cabinet for Health and Family Services is the primary state agency responsible for leadership in protecting and promoting the health and well-being of all Kentuckians through the delivery of quality health and human services. The following departments and/or offices comprise the Cabinet for Health and Family Services: the Office of the Secretary, Office of the Inspector General, Office of Legal Services, Office of Administrative Services, Office of Application Technology Services, Office of Human Resource Management, Office of Finance and Budget, Office of Legislative and Regulatory Affairs, and Office of Public Affairs which comprise the Administration and Program Support appropriation unit. Remaining agencies/appropriation units within the Cabinet include Department for Medicaid Services; Department for Behavioral Health, Developmental and Intellectual Disabilities; Department for Public Health; Department for Aging and Independent Living; Department for Community Based Services; and the Department for Family Resource Centers and Volunteer Services. ===== PAGE 200 =====
Health and Family Services
General Administration and Program Support
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation11,140,40015,443,30013,684,70013,851,50014,043,900
State Salary and Compensation Allocation178,30017,50029,700 (411,400)
Budget Reduction-General Fund
Total General Fund11,318,70015,460,80013,303,00013,851,50014,043,900
Restricted Funds
Balance Forward12,147,97313,928,49537,481,40032,797,4006,226,000
Current Receipts11,819,28041,241,22614,034,40014,032,60015,380,600
Non-Revenue Receipts65,233,61570,416,96861,400,30038,081,80062,581,800
Total Restricted Funds89,200,867125,586,689112,916,10084,911,80084,188,400
Federal Fund
Balance Forward1,554,0242,118,4852,250,800
Current Receipts62,479,35262,020,40766,865,40068,448,60069,010,700
Total Federal Fund64,033,37664,138,89269,116,20068,448,60069,010,700
TOTAL SOURCE OF FUNDS164,552,944205,186,381195,335,300167,211,900167,243,000
EXPENDITURES BY CLASS
Personnel Costs123,047,904118,442,991115,569,900112,487,000114,430,600
Operating Expenses23,912,76825,542,38125,677,50026,746,70026,746,700
Grants Loans Benefits1,332,14520,740,62421,290,50021,752,20021,752,200
Capital Outlay213,147290,661
Construction996
TOTAL EXPENDITURES148,505,964165,017,653162,537,900160,985,900162,929,500
EXPENDITURES BY FUND SOURCE
General Fund11,318,70015,024,31213,303,00013,851,50014,043,900
Restricted Funds75,272,37288,105,30180,118,70078,685,80079,874,900
Federal Fund61,914,89161,888,04069,116,20068,448,60069,010,700
TOTAL EXPENDITURES148,505,964165,017,653162,537,900160,985,900162,929,500
EXPENDITURES BY UNIT
Administrative Support98,664,264103,737,15796,278,20094,518,30095,832,600
Inspector General49,841,70054,185,78559,118,90059,438,60059,969,800
Office of Medical Cannabis7,094,7117,140,8007,029,0007,127,100
TOTAL EXPENDITURES148,505,964165,017,653162,537,900160,985,900162,929,500
General Administration and Program Support consists of Administrative Support and the Office of the Inspector General (OIG). The Administrative Support function includes the Office of the Secretary, the Office of Public Affairs, the Office of Legal Services, the Office of Administrative Services, the Office of Application Technology Services, the Office of Data Analytics, the Office of Human Resource Management, the Office of Legislative & Regulatory Affairs, and the Office of Finance and Budget. These offices provide policy, administrative, legal, financial, technological, and personnel support services to the program areas of the Cabinet. Senate Bill 48 from the 2023 Regular Session reorganizes the Office of the Ombudsman and Administrative Review out of the Office of the Secretary in the Health and Family Services Cabinet and creates a Commonwealth Office of Ombudsman that is administratively attached to the Auditor of Public Accounts and moves Administrative Review to the Office of Attorney General effective July 1, 2024. ===== PAGE 201 ===== The Office of Inspector General provides support to other programs in the Cabinet for Health and Family Services as well as its programmatic functions of health care facility licensure and child care facility regulation. The OIG has four major functions: Audits and Investigations • Regulated Child Care • Health Care Licensing • Certificate of Need ## Policy The Governor’s budget includes additional funding in the amount of $1,330,400 in fiscal year 2027 and $2,731,900 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 $146,300 and $300,500, respectively. ===== PAGE 202 =====
Health and Family Services General Administration and Program Support Administrative Support
Administrative Support
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation2,500,2001,500,000650,0001,278,4001,278,400
State Salary and Compensation Allocation17,50029,700
Reorganization Adjustment(500,200)
Total General Fund2,000,0001,517,500679,7001,278,4001,278,400
Restricted Funds
Balance Forward231,500
Current Receipts4,105,6533,652,6463,550,0002,228,9003,319,900
Non-Revenue Receipts56,571,97462,045,99252,310,30052,541,80052,541,800
Total Restricted Funds60,677,62865,698,63856,091,80054,770,70055,861,700
Federal Fund
Balance Forward1,188,8022,725,6531,577,600
Current Receipts37,523,48735,604,46537,929,10038,469,20038,692,500
Total Federal Fund38,712,29038,330,11739,506,70038,469,20038,692,500
TOTAL SOURCE OF FUNDS101,389,917105,546,25596,278,20094,518,30095,832,600
EXPENDITURES BY CLASS
Personnel Costs77,056,93661,772,65653,764,90050,403,80051,718,100
Operating Expenses20,305,18421,183,19621,318,20022,457,70022,457,700
Grants Loans Benefits1,088,99820,645,91721,195,10021,656,80021,656,800
Capital Outlay213,147135,388
TOTAL EXPENDITURES98,664,264103,737,15796,278,20094,518,30095,832,600
EXPENDITURES BY FUND SOURCE
General Fund2,000,0001,517,500679,7001,278,4001,278,400
Restricted Funds60,677,62765,467,15756,091,80054,770,70055,861,700
Federal Fund35,986,63736,752,50039,506,70038,469,20038,692,500
TOTAL EXPENDITURES98,664,264103,737,15796,278,20094,518,30095,832,600
Administrative Support provides funding for organizational units within the Cabinet for Health and Family Services (CHFS) including the Office of the Secretary, the Office of Legal Services, the Office of Public Affairs, the Office of Human Resource Management, the Office of Legislative & Regulatory Affairs, the Office of Finance and Budget, the Office of Administrative Services, the Office of Application Technology Services, and the Office of the Ombudsman and Administrative Review. The Office of the Secretary provides leadership, oversight and guidance in order for CHFS to deliver quality services that enhance the health, safety, and well-being of all people in the Commonwealth of Kentucky. Legal Services provides legal guidance and assistance to all units of the Cabinet in any legal action in which it may be involved. This office provides legal representation for the Cabinet in federal courts, state courts, and before quasi-judicial and administrative bodies; administers all personal service contracts of the Cabinet for legal services; assists in drafting and reviewing legislation, regulations, statutes, and other legal documents and instruments; and provides the Secretary, Commissioners, and Directors in the Cabinet with the legal guidance and representation necessary for them to properly administer the Cabinet's programs. Administrative Services consists of Cabinet functions related to accounting, facilities management, and procurement; Accounting services supports and oversees the cabinet's accounting functions. Facility Services oversees the management of facilities, fixed assets and leased properties; Procurement services oversees grants and Memoranda of Agreement, personal services contracts, acquisition of commodities and services, IT procurement and requests for proposals. ===== PAGE 203 ===== Application Technology Services is responsible for providing CHFS agencies information technology (IT) support for cabinet and agency IT systems, including development, maintenance and operations, technical support (help desk), project management and oversight of all vendor developed/lead IT systems. Human Resource Management serves all Cabinet employees and programs and provides payroll and health benefits administration, equal employment opportunity compliance, and professional development and training activities. This office serves as the Cabinet's appointing authority and performs all the duties, responsibilities and functions required to maintain an effective and efficient personnel management system in accordance with the Kentucky Revised Statutes, Kentucky Administrative Regulations, and the policy guidelines of the Secretary of the Cabinet. Legislative & Regulatory Affairs coordinates activities related to the Cabinet's public policy initiatives and administrative and legislative agendas with other governmental and private agencies. The office is responsible for coordination and oversight of over 660 regulations in the cabinet on behalf of the Office of the Secretary. This office develops, implements, and pursues the cabinet's legislative agenda including reviewing, evaluating, and analyzing all legislative, regulatory, and public policy proposals impacting the cabinet and responding to requests for public policy information from the cabinet. Each legislative session, CHFS and its departments provide comprehensive reviews, analysis, and feedback on approximately 200 bills and numerous amendments impacting the cabinet's departments and programs. Finance and Budget manages the cabinet's budget in coordination with departments on behalf of the Office of the Secretary. This office reviews and coordinates activities related to budgetary and programmatic issues across agency lines within the cabinet as well as with other state agencies outside the cabinet, including the Governor's Office for Policy and Management, the Finance and Administration Cabinet, and the Legislative Research Commission. In addition, the office reviews legislation for fiscal impact on the cabinet and responds to budgetary requests for information from various sources. The Office of Data Analytics provides enterprise analytic services to inform effective program implementation and provide strategic information to the policy-making process. ## Policy I ne base budget includes General Fund appropriation in the amount of $150,000 in each fiscal year to support the operations of Special Olympics Kentucky. The budget includes additional General Fund appropriation of $461,700 each year to support the Kentucky Eating Disorder Council Trust Fund. ===== PAGE 204 =====
Health and Family Services General Administration and Program Support Inspector General
Inspector General
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation8,640,2008,728,3007,880,1007,418,5007,610,900
State Salary and Compensation Allocation178,300
Reorganization Adjustment500,200
Budget Reduction-General Fund(411,400)
Total General Fund9,318,7008,728,3007,468,7007,418,5007,610,900
Restricted Funds
Balance Forward12,147,97213,928,49410,036,5005,370,2002,498,200
Current Receipts7,713,6277,269,0068,284,4009,628,7009,893,100
Non-Revenue Receipts8,661,6409,160,9779,090,0009,540,00010,040,000
Total Restricted Funds28,523,23930,358,47727,410,90024,538,90022,431,300
Federal Fund
Balance Forward365,222(607,168)673,200
Current Receipts24,955,86526,415,94228,936,30029,979,40030,318,200
Total Federal Fund25,321,08725,808,77529,609,50029,979,40030,318,200
TOTAL SOURCE OF FUNDS63,163,02664,895,55164,489,10061,936,80060,360,400
EXPENDITURES BY CLASS
Personnel Costs45,990,96850,367,53555,300,90055,690,90056,222,100
Operating Expenses3,607,5843,755,5033,755,6003,685,3003,685,300
Grants Loans Benefits243,14761,75062,40062,40062,400
Construction996
TOTAL EXPENDITURES49,841,70054,185,78559,118,90059,438,60059,969,800
EXPENDITURES BY FUND SOURCE
General Fund9,318,7008,728,3007,468,7007,418,5007,610,900
Restricted Funds14,594,74520,321,94522,040,70022,040,70022,040,700
Federal Fund25,928,25425,135,54029,609,50029,979,40030,318,200
TOTAL EXPENDITURES49,841,70054,185,78559,118,90059,438,60059,969,800
The Inspector General has seven divisions: the Division of Inspector General, the Division of Telehealth Services, the Division of Kentucky Health Information Exchange, the Division of Audits and Investigations, the Division of Regulated Child Care, the Division of Health Care, and the Division of Certificate of Need. The general authority for the Office of the Inspector General is codified within KRS 194A.030. The Division of Inspector General administers the Kentucky Applicant Registry and Employment Screening Program (KARES). This program provides comprehensive fingerprint-supported background checks for prospective employees in Long Term Care facilities. The Division of Telehealth Services provides oversight and direction to Kentucky's telehealth providers to help expand telehealth adoption and increase access to healthcare services. The Division of Kentucky Health Information Exchange provides a statewide health information exchange that facilitates the safe, secure, electronic exchange of patient health information among participating providers and organizations. ===== PAGE 205 ===== The Division of Audits and Investigations examines Cabinet programs to assess contractor compliance with state and federal laws and regulations. In accordance with KRS 194A.030, the Division is responsible for conducting audits of programs within the Cabinet for Health and Family Services, their grantees and contractors. Investigations are conducted to detect fraud or abuse of any program by any client, or vendor of services with whom the Cabinet has contracted. Special investigations may be requested by the Secretary, commissioners, or agency heads into matters related to the Cabinet and its programs. Any information relevant to possible criminal violations is forwarded to the appropriate prosecuting authority. The agency operates a toll-free welfare and Medicaid fraud and abuse hotline (mandated by KRS 205.8483 and 42 CFR 455); conducts investigations of Women, Infants, and Children program vendors; and collects data on assistance program fraud investigations by the Office of the Inspector General and the Office of the Attorney General. The Kentucky All Schedule Prescription Enforcement Reporting or KASPER system is also maintained here. Regulated Child Care is charged with licensing certified Family Day Care homes, licensed day care centers (Type I and II), child caring facilities, child-placing agencies, and private adoptive service agencies. This includes initial licensure surveys, yearly re-licensure surveys, and complaint surveys. Health Care is responsible for inspecting, monitoring, licensing and certifying all health care facilities as defined by KRS 216.510 (1). On-site inspections are conducted of all health facilities and services throughout the state (including nursing homes, hospitals and laboratories) to determine compliance with state licensing standards and federal Medicare and Medicaid certification requirements. Allegations of abuse and neglect that may occur in a licensed health facility are also investigated. Certificate of Need (CON) staff is responsible for administering the certificate of need program in order to prevent unnecessary proliferation and/or duplication of health care facilities, health services and major medical equipment that increase the cost of health care within the Commonwealth. Staff are responsible for developing the State Health Plan which guides the decision-making process for many types of CON applications. The proposed State Health Plan goes through an extensive review process allowing for comment and input from the public as well as the provider community. ===== PAGE 206 =====
Health and Family Services
General Administration and Program Support Office of Medical Cannabis
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation5,215,0005,154,6005,154,6005,154,600
Total General Fund5,215,0005,154,6005,154,6005,154,600
Restricted Funds
Balance Forward27,213,40027,427,2003,727,800
Current Receipts30,319,5742,200,0002,175,0002,167,600
Non-Revenue Receipts(790,000)(24,000,000)
Total Restricted Funds29,529,57429,413,4005,602,2005,895,400
TOTAL SOURCE OF FUNDS34,744,57434,568,00010,756,80011,050,000
EXPENDITURES BY CLASS
Personnel Costs6,302,8016,504,1006,392,3006,490,400
Operating Expenses603,681603,700603,700603,700
Grants Loans Benefits32,95633,00033,00033,000
Capital Outlay155,273
TOTAL EXPENDITURES7,094,7117,140,8007,029,0007,127,100
EXPENDITURES BY FUND SOURCE
General Fund4,778,5125,154,6005,154,6005,154,600
Restricted Funds2,316,1991,986,2001,874,4001,972,500
TOTAL EXPENDITURES7,094,7117,140,8007,029,0007,127,100
Senate Bill 47 of the 2023 Regular Session legalizes medical cannabis in the commonwealth effective January 1, 2025 and established the Office of Medical Cannabis. The Office of Medical Cannabis in the Cabinet for Health and Family Services is charged under KRS Chapter 218B with implementing and administering Kentucky's Medical Cannabis Program. As of April 18, 2024, the Program has filed 17 regulations establishing the processes and procedures for medical cannabis businesses and registered cardholders. Regulations regarding cannabis businesses establish how cultivators, processors, producers, safety compliance facilities, and dispensaries will apply, become licensed, and operate in the Commonwealth. Regulations regarding patients, designated caregivers, and practitioners establish the procedures to receive a written certification and a medical cannabis card, supply limits, and procedures to publish a list of varieties of medical cannabis. ===== PAGE 207 =====
Health and Family Services Medicaid Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS General Fund
Regular Appropriation2,473,126,2002,568,077,2003,088,857,7002,790,491,3003,506,756,900
Budget Reserve62,000,000
State Salary and Compensation
Allocation143,6008,30020,000
Budget Reduction-General Fund(2,316,100)
Other(9,100,000)
Total General Fund2,473,269,8002,630,085,5003,077,461,6002,790,491,3003,506,756,900
Restricted Funds
Balance Forward366,075,964290,669,04699,818,30025,471,5004,341,000
Current Receipts936,723,3871,386,673,1431,752,187,4001,727,588,2001,678,156,800
Non-Revenue Receipts572,158,161534,198,679503,499,900788,810,100441,021,100
Total Restricted Funds1,874,957,5122,211,540,8692,355,505,6002,541,869,8002,123,518,900
Federal Fund
Balance Forward(8,505,096)4,536,73338,783,200
Current Receipts14,464,240,51015,879,626,34017,821,967,90017,221,378,00018,297,770,700
Non-Revenue Receipts4,089(4,289)
Total Federal Fund14,455,739,50215,884,158,78517,860,751,10017,221,378,00018,297,770,700
TOTAL SOURCE OF FUNDS18,803,966,81420,725,785,15323,293,718,30022,553,739,10023,928,046,500
EXPENDITURES BY CLASS
Personnel Costs236,001,418211,675,519368,520,600288,967,300265,107,200
Operating Expenses14,287,11216,314,84319,565,20017,118,20017,118,200
Grants Loans Benefits18,258,472,50420,359,193,30122,864,261,00022,243,312,60023,645,821,100
TOTAL EXPENDITURES18,508,761,03420,587,183,66323,252,346,80022,549,398,10023,928,046,500
EXPENDITURES BY FUND SOURCE
General Fund2,473,269,8002,630,085,5003,061,561,6002,790,491,3003,506,756,900
Restricted Funds1,584,288,4662,111,722,6562,330,034,1002,537,528,8002,123,518,900
Federal Fund14,451,202,76915,845,375,50817,860,751,10017,221,378,00018,297,770,700
TOTAL EXPENDITURES18,508,761,03420,587,183,66323,252,346,80022,549,398,10023,928,046,500
EXPENDITURES BY UNIT
Medicaid Administration311,656,205280,316,385444,763,800359,763,500335,903,400
Medicaid Benefits18,197,104,82920,306,867,27822,807,583,00022,189,634,60023,592,143,100
TOTAL EXPENDITURES18,508,761,03420,587,183,66323,252,346,80022,549,398,10023,928,046,500
Medicaid Services is comprised of two appropriation units: Administration and Benefits. Additionally, two major programs operate within each of those appropriation units: the Kentucky Medical Assistance program (regular Medicaid program) and the Kentucky Children's Health Insurance program (KCHIP). The Medical Assistance program provides for comprehensive physical and behavioral health services by reimbursing providers for health care provided to medically indigent Kentuckians. Providers are reimbursed directly on a fee-for-service basis or indirectly through contractual arrangements with managed care organizations who receive a monthly capitation payment for each enrolled recipient. Eligibility for services is determined by staff in each county through a contractual agreement with the Department for Community Based Services. Individuals may automatically qualify for benefits if they are eligible for Supplemental Security Income benefits administered by the Social Security Administration. ===== PAGE 208 ===== KCHIP provides for comprehensive physical and behavioral health services for uninsured children up to 213 percent of the federal poverty level who are not otherwise eligible for Medicaid. ## Policy The Governor's budget includes additional funding in the amount of $483,200 in fiscal year 2027 and $992,300 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 $67,600 and $138,900, respectively. ===== PAGE 209 =====
Health and Family Services Medicaid Administration
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation70,437,50067,047,40077,182,90082,956,70076,443,600
State Salary and Compensation
Allocation143,6008,30020,000 (2,316,100)
Budget Reduction-General Fund
Total General Fund70,581,10067,055,70074,886,80082,956,70076,443,600
Restricted Funds
Balance Forward3,170,03112,147,96014,633,6008,681,9004,341,000
Current Receipts10,756,2906,590,03911,400,00013,545,30013,162,900
Non-Revenue Receipts45,022,04330,571,32017,666,70017,630,00017,629,800
Total Restricted Funds58,948,36449,309,32043,700,30039,857,20035,133,700
Federal Fund
Balance Forward7,800,59011,048,11814,432,500
Current Receipts197,518,141181,973,579320,426,100241,290,600224,326,100
Non-Revenue Receipts4,089(4,289)
Total Federal Fund205,322,820193,017,408334,858,600241,290,600224,326,100
TOTAL SOURCE OF FUNDS334,852,283309,382,427453,445,700364,104,500335,903,400
EXPENDITURES BY CLASS
Personnel Costs236,001,418211,675,519368,520,600288,967,300265,107,200
Operating Expenses14,287,11216,314,84319,565,20017,118,20017,118,200
Grants Loans Benefits61,367,67552,326,02256,678,00053,678,00053,678,000
TOTAL EXPENDITURES311,656,205280,316,385444,763,800359,763,500335,903,400
EXPENDITURES BY FUND SOURCE
General Fund70,581,10067,055,70074,886,80082,956,70076,443,600
Restricted Funds46,800,40434,675,81035,018,40035,516,20035,133,700
Federal Fund194,274,702178,584,875334,858,600241,290,600224,326,100
TOTAL EXPENDITURES311,656,205280,316,385444,763,800359,763,500335,903,400
EXPENDITURES BY UNIT
Medical Assistance Administration301,737,145271,030,096432,763,800347,785,600323,906,100
KCHIP Administration9,919,0609,286,28912,000,00011,977,90011,997,300
TOTAL EXPENDITURES311,656,205280,316,385444,763,800359,763,500335,903,400
Administrative functions of the Medicaid program and the Kentucky Children's Health Insurance program (KCHIP) include determining applicant eligibility, formulating policy, processing claims, assuring appropriate utilization of medical services, and managed care oversight. For the fee for service elements of the program, claims are paid through contracts with a fiscal agent and a pharmacy benefits administrator. For the managed care elements of the program, a monthly capitation fee for each member is paid. The Medicaid program contracts for medical review of acute care admissions, level of care determinations for long-term care patients, and care reviews for recipients in mental hospitals and psychiatric facilities. The Department for Community Based Services performs the eligibility determination function on behalf of the Department for Medicaid Services through a contractual arrangement. The Department for Medicaid Services also administers KCHIP, a program to provide health care services for uninsured children with family incomes below 200 percent of the federal poverty level but above the federal income level for the Medicaid Program. ===== PAGE 210 ===== ## Policy To implement new federal requirements from the 2025 legislation, H.R. 1, additional funding in the amount of $35,551,600 in fiscal year 2027 and $11,031,600 in fiscal year 2028 is provided for the necessary information system changes needed to implement the new community engagement and work requirements for the Medicaid expansion population, and the shifting of annual Medicaid redeterminations to every six months, for the Medicaid expansion population to retain eligibility. The General Fund portion is $8,137,900 and $1,532,900, respectively. ===== PAGE 211 =====
Health and Family Services
Medicaid Benefits
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation2,402,688,7002,501,029,8003,011,674,8002,707,534,6003,430,313,300
Budget Reserve62,000,000
Other(9,100,000)
Total General Fund2,402,688,7002,563,029,8003,002,574,8002,707,534,6003,430,313,300
Restricted Funds
Balance Forward362,905,932278,521,08685,184,70016,789,600
Current Receipts925,967,0971,380,083,1041,740,787,4001,714,042,9001,664,993,900
Non-Revenue Receipts527,136,118503,627,359485,833,200771,180,100423,391,300
Total Restricted Funds1,816,009,1482,162,231,5492,311,805,3002,502,012,6002,088,385,200
Federal Fund
Balance Forward(16,305,686)(6,511,385)24,350,700
Current Receipts14,266,722,36915,697,652,76117,501,541,80016,980,087,40018,073,444,600
Total Federal Fund14,250,416,68315,691,141,37717,525,892,50016,980,087,40018,073,444,600
TOTAL SOURCE OF FUNDS18,469,114,53020,416,402,72622,840,272,60022,189,634,60023,592,143,100
EXPENDITURES BY CLASS
Grants Loans Benefits18,197,104,82920,306,867,27822,807,583,00022,189,634,60023,592,143,100
TOTAL EXPENDITURES18,197,104,82920,306,867,27822,807,583,00022,189,634,60023,592,143,100
EXPENDITURES BY FUND SOURCE
General Fund2,402,688,7002,563,029,8002,986,674,8002,707,534,6003,430,313,300
Restricted Funds1,537,488,0622,077,046,8462,295,015,7002,502,012,6002,088,385,200
Federal Fund14,256,928,06715,666,790,63217,525,892,50016,980,087,40018,073,444,600
TOTAL EXPENDITURES18,197,104,82920,306,867,27822,807,583,00022,189,634,60023,592,143,100
EXPENDITURES BY UNIT
Medicaid Benefits17,721,401,91319,777,192,16722,113,690,40021,440,994,20022,789,634,100
KCHIP Benefits475,702,916529,675,111693,892,600748,640,400802,509,000
TOTAL EXPENDITURES18,197,104,82920,306,867,27822,807,583,00022,189,634,60023,592,143,100
The Kentucky Medicaid program, under Title XIX of the Social Security Act and KRS 205.520, provides for preventive and remedial medical care for financially and medically indigent citizens in Kentucky who meet the income and resource criteria for Medicaid eligibility. The following services are currently provided by Kentucky's Medicaid program: Inpatient Hospital; Mental Hospital (for individuals under age 21 and age 65 and over); Renal Dialysis; Model Waiver II (home based services for individuals who are ventilator dependent); Psychiatric Residential Treatment Facilities (8-9 bed group homes for adolescents needing psychiatric residential services); Outpatient Hospital (including Emergency Room); Ambulatory Surgical Centers; HANDS (home visiting services for new and expectant parents); Specialized Children's Services Clinics (sexual abuse examinations); School-Based Services (Medicaid coverage for health services provided by schools to children with disabilities); Commission for Children with Special Health Care Needs; Intermediate Care Facility Services for Individuals with Intellectual Disabilities-ICFIID (residential habilitation for Medicaid recipients with intellectual disabilities); Nursing Facility Services (residential placement for the elderly and/or disabled); Preventative Services (health care) through the Local Health Departments; Early Intervention Services for Infants through age 2 with developmental problems; Early and Periodic Screening, Diagnosis and Treatment Services (EPSDT) which is preventive health care for children under 21 and coverage of any Federally-allowable, medically necessary Medicaid service for children, even if the service is not covered by the state's Medicaid plan; Chiropractic; X-ray and Laboratory Services; Physical, Occupational and Speech Therapy; Durable Medical Equipment (DME); Federally Qualified Health Centers (FQHC); Primary Care Centers (PCC); Community Mental Health Centers (CMHC); Rural Health Centers; Family Planning; Home Health services; Supports for Community Living (SCL) Waiver Services (long term community services and supports for individuals with intellectual health care); and other services for children with mental, physical, and/or mental health problems. ===== PAGE 212 ===== disabilities); Home and Community Based (HCBS) Waiver Services (long term community services and supports for individuals who meet nursing facility level of care); Adult Day Health Care; Brain Injury Waiver Services (long term community services and supports for individuals with acquired brain injuries); Michelle P. Waiver services (long term community services and supports for individuals with intellectual or developmental disabilities); Nurse Anesthetist; Hospice; Transportation (Non-Emergency and Emergency/Ambulance); Pharmacy; Vision Care; Dental; Physician Services; Nurse Practitioner/Midwife; Audiology Services; Podiatry; Comprehensive Outpatient Rehabilitative Facilities (CORF); Distinct Psychiatric Units in hospitals; Distinct Rehabilitative Units in hospitals; Physicians Assistants; Private Duty Nursing Services; Behavioral health (mental health or substance use disorder services) provided by licensed practitioners, practitioner groups and licensed organizations; Targeted Case Management for individuals with serious mental health or substance abuse disorders; Medicare Premiums (Medicare beneficiaries with income below the federal poverty level receive Medicaid assistance for payment of Medicare premiums, deductibles and cost sharing). These individuals are Qualified Medicare Beneficiaries (QMBs). Individuals at the lowest income levels are entitled to full Medicaid benefits. Medicare beneficiaries with income levels slightly higher than poverty receive Medicaid assistance for payment of Medicare premiums. These individuals are Specified Low-Income Medicare Beneficiaries (SLMBs). Effective January 1, 2014, the federal Patient Protection and Affordable Care Act (ACA) changed the basis for Medicaid eligibility from eligibility categories tied to deprivation to income-based eligibility, with household income for most beneficiaries determined by the Modified Adjusted Gross Income (MAGI) reported on income tax returns. ACA also simplified and streamlined eligibility processes for most beneficiaries. ACA required states with Medicaid benchmark benefit packages, including Kentucky, to align their Medicaid benefits with ten essential health benefits defined by the benchmark plan adopted for the state's health benefit exchange (the 2012 Anthem PPO plan for Kentucky). This required Kentucky to add substance use treatment services and private duty nursing to its benefit package for all Medicaid beneficiaries. Prior to ACA, Kentucky Medicaid only covered substance use treatment for children and pregnant women. Kentucky adopted the adult Medicaid eligibility expansion which extends Medicaid eligibility to individuals in households with income at or below 138% of the federal poverty level (FPL). ## Kentucky Medical Assistance Program (KMAP) Recipient Groups Based on the eligibility changes in ACA, individuals who are eligible for KMAP benefits are classified into two groups: the Modified Adjusted Gross Income (MAGI) eligibility group and the non-MAGI eligibility group. The MAGI eligibility group includes children and non-disabled adults under age 65. Specifically, this group includes children, pregnant women, caretaker relatives of children eligible for Medicaid, the adult Medicaid expansion eligibility group and former foster care children who are eligible for Medicaid up to age 26. Eligibility for each of these groups is based on the following income levels: pregnant women and infants under one year of age – 200% of the Federal Poverty Level (FPL); children from one to eighteen years of age: 147% FPL; and the adult Medicaid expansion eligibility group: 138% FPL. Former foster care children are eligible for Medicaid up to age 26 regardless of their income. The non-MAGI eligibility group includes aged, blind and disabled individuals whose eligibility is associated with their health status and who are subject to resource requirements as well as income limits in establishing Medicaid eligibility. ## Projecting Benefits Cost Forecasting models were combined in the preparation of the Medicaid Benefits projections. Both the Office of State Budget Director (OSBD) and the Department for Medicaid Services (DMS) prepared cash forecasts to arrive at a consensus forecast. These forecasts examine past trends in categorical spending to generate projections for future cash expenditures, adjusting for policy changes. It should be noted that fewer members and services remain under fee-for-service due to the expansion of managed care which was implemented November 1, 2011. Using member eligibility information, historical monthly cash fee-for-service data was classified as either fee-for-service or managed care. Managed care costs were calculated based on the monthly member forecast and the negotiated rates with the contracted managed care organizations. The managed care portion of the budget does not include individual categories of service; therefore, total projected costs for individual services cannot be determined. ## Provider Taxes Dedicated provider assessments are levied on hospitals, home health agencies, Intermediate Care Facilities for Persons with Intellectual Disabilities, providers of alternative community services and long-term care facilities. The recommended budget assumes continuation of the current level of provider tax collections to maintain existing reimbursement levels for hospitals established in state fiscal year 2006. ===== PAGE 213 ===== ## Disproportionate Share Hospital (DSH) Payments The budget includes funding for Disproportionate Share Hospital (DSH) payments equal to the maximum amount established by federal law. Disproportionate Share Hospital payments to state mental hospitals are budgeted in each year of the biennium. This budget includes funds transferred from the university teaching hospitals to be used as state matching funds for the portion of DSH funds received by those facilities. ## Managed Care The budget request assumes that Medicaid services are provided statewide by five (5) contracted Managed Care Organizations (MCOs). Recipients in long term care facilities and waiver programs are excluded from managed care enrollment. ## Benefit Match Rate The budget request assumes a federal medical assistance percentage (FMAP) of 71.55 percent for state fiscal year 2027 and 71.60 percent for fiscal year 2028 for eligibility groups other than the ACA Medicaid expansion group. The FMAP for the Medicaid expansion eligibility group authorized by the Affordable Care Act (ACA) is 90 percent for the biennium. The federal Medicaid match rate for KCHIP is estimated at 80.90 percent for fiscal year 2027 and 80.12 percent for fiscal year 2028. ## Kentucky Children's Health Insurance Program (KCHIP) The Kentucky Children's Health Insurance program was initiated under Title XXI of the Social Security Act and currently serves eligible children up to 213 percent of the federal poverty level. ## Policy The Office of State Budget Director and the Department for Medicaid Services work together to arrive at a consensus forecast of the amount needed to maintain the Medicaid Benefits budget. These forecasts examine past trends in categorical spending to generate projections for future cash expenditures, adjusting for policy changes. Using member eligibility information, historical monthly cash fee-for-service data was classified as either fee-for-service or managed care. Managed care costs were calculated based on the monthly member forecast and the negotiated rates with the contracted managed care organizations. An additional $442,498,700 General Fund was added in fiscal year 2028 to support Medicaid Benefits. This will cover estimated program needs and forecasted eligibles in the Medicaid Benefits Program determined through a consensus forecasting process. The budget accommodates the following estimated average monthly enrollment for fiscal year 2027 and fiscal year 2028.
Medicaid Enrollment
Projections FY 2026 - FY 2028
MCO (Traditional Medicaid)MCO (Medicaid Expansion)MCO (KCHIP)Fee For Service (FFS)Grand Total
FY 2026716,419459,675137,590151,8461,465,530
FY 2027709,928452,126145,432152,3841,459,870
FY 2028700,085423,400153,282152,4261,429,193
The budget includes a state fiscal year 2027 federal share or FMAP of 71.55 percent for Medicaid eligibility groups, 80.90 percent for the Kentucky Children's Health Insurance Program eligibility group, and 90 percent for the Medicaid expansion eligibility group. The budget includes a state fiscal year 2028 federal share or FMAP of 71.60 percent for Medicaid eligibility groups, 80.12 percent for the Kentucky Children's Health Insurance Program eligibility group, and 90 percent for the Medicaid expansion eligibility group. The budget includes an additional 500 slots for the Michelle P. Waiver program. The total additional funding for Michelle P slots is $27,300,000 each year, with $7,766,200 from the General Fund and $19,533,800 from federal funds. This increase will bring the total number of funded slots to 11,850. The budget includes an additional 250 slots for the Supports for Community Living program. The total additional funding for Supports for Community Living slots is $28,625,000 each year, with $8,143,100 from the General Fund and $20,481,900 from federal funds. This will bring the total number of funded slots to 5,666. ===== PAGE 214 ===== The budget includes an additional 500 slots for the Home and Community Based Services program over the biennium. The total additional funding for Home and Community Based Services slots is $20,349,900 each year, with $5,789,100 from the General Fund and $14,560,800 from federal funds. This will bring the total number of funded slots to 18,300. The budget includes an additional $1,441,400 General Fund in fiscal year 2028 as a federal fund replacement to support the four currently operating pilot Certified Community Behavioral Health Clinics. Funds are needed due to an expiring enhanced federal match rate at the end of calendar year 2027. Congress passed H.R. 1 in July 2025 which made significant changes to the Medicaid program. Among them are new work or community engagement requirements for the expansion population and changing the eligibility determination timeline for the expansion population from annually to every six months. These two changes are effective January 2027. The Medicaid eligibility forecast assumes that the work or community engagement change will reduce enrollment by 4,295 in fiscal year 2027 and by 9,660 in fiscal year 2028. The more frequent eligibility redetermination change is estimated to reduce enrollment by 18,879 in fiscal year 2028. When these two changes are combined, the estimated enrollment reduction is 28,539 in fiscal year 2028. H.R. 1 also impacts Medicaid program income from provider taxes. It imposes limits on provider tax, used as a match for federal funds. The legislation reduces the allowable Medicaid provider tax rate by phasing it down over five years from 6% to 3.5% by 2032, starting January 1, 2028 with 0.5% annual drops. The first year of impact to Kentucky is in 2029. Starting October 2028, the new law imposes a cost sharing requirement on the expansion population between 100-138 percent of the federal poverty level, capped at $35 dollars per service and 5 percent of total family income annually. One of the most significant changes is the new law's limits on state directed payments to hospitals. In Kentucky, the most prominent example is the Hospital Rate Improvement Program (HRIP). State directed payments help fill the gap between base Medicaid rates and the average commercial rate. The change phases down these payments by 10 percentage points each year to no more than what Medicare pays. The phase down is scheduled to begin in 2028. The Kentucky Hospital Association has estimated this change will amount to a 90 percent loss of the current payments. One national study has estimated that Kentucky would be at risk of losing 35 rural hospitals because of H.R. 1. ===== PAGE 215 =====
Health and Family Services Behavioral Health, Developmental & Intellectual Disabilities
Behavioral Health, Developmental & Intellectual Disabilities
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation186,810,300190,981,100189,492,900202,555,100203,500,200
State Salary and Compensation Allocation1,253,7001,300
Budget Reduction-General Fund(5,594,700)
Total General Fund188,064,000190,981,100183,899,500202,555,100203,500,200
Tobacco Fund
Tobacco Settlement - Phase I1,400,0001,300,0001,300,0001,258,900249,300
Continuing Approp-Tob Settlement5,531,7514,124,2723,122,300
Other515,780
Total Tobacco Fund6,931,7515,940,0524,422,3001,258,900249,300
Restricted Funds
Balance Forward58,477,94552,819,91050,718,10046,826,40042,965,800
Current Receipts235,166,480251,860,171262,836,800262,703,000253,251,200
Non-Revenue Receipts1,053,243186,0571,555,3001,540,3001,525,200
Total Restricted Funds294,697,668304,866,138315,110,200311,069,700297,742,200
Federal Fund
Balance Forward(2,715,314)(1,793,046)(1,912,300)
Current Receipts104,404,543106,611,254100,807,50098,751,20098,921,400
Total Federal Fund101,689,230104,818,20898,895,20098,751,20098,921,400
TOTAL SOURCE OF FUNDS591,382,648606,605,499602,327,200613,634,900600,413,100
EXPENDITURES BY CLASS
Personnel Costs112,448,161119,130,324117,384,500115,866,600117,175,500
Operating Expenses15,697,64318,152,29817,130,60016,883,40016,886,100
Grants Loans Benefits397,022,316404,134,384411,114,200428,047,600428,088,700
Debt Service10,989,94413,212,1639,810,8009,810,8009,810,800
Capital Outlay73,43248,17060,70060,70060,700
Construction17
TOTAL EXPENDITURES536,231,512554,677,339555,500,800570,669,100572,021,800
EXPENDITURES BY FUND SOURCE
General Fund188,064,000190,981,100183,899,500202,555,100203,500,200
Tobacco Fund2,807,4792,817,7244,422,3001,258,900249,300
Restricted Funds241,877,758254,148,107268,283,800268,103,900269,350,900
Federal Fund103,482,275106,730,40898,895,20098,751,20098,921,400
TOTAL EXPENDITURES536,231,512554,677,339555,500,800570,669,100572,021,800
===== PAGE 216 =====
Community Behavioral Health85,973,33593,594,37794,015,90090,494,50090,929,100
Community Developmental and Intellectual Disabilities24,418,48324,123,46924,435,00024,385,10024,442,900
Community Mental Health Services80,367,05083,540,65382,233,60082,114,90082,252,500
General Support8,756,3079,017,43912,086,00011,962,80012,105,400
Residential336,716,338344,401,401342,730,300361,711,800362,291,900
TOTAL EXPENDITURES536,231,512554,677,339555,500,800570,669,100572,021,800
The Department for Behavioral Health, Developmental and Intellectual Disabilities operates behavioral health, substance use disorder, developmental and intellectual disabilities programs. Services are provided in the community and in state-owned, state-operated and contracted residential facilities. Approximately 800 inpatients are cared for daily in the facilities operated or contracted by the Cabinet, and over 175,000 more are treated as outpatients in the community setting by the 14 Regional Boards for Mental Health and Intellectual Disability (Community Mental Health Centers) established by KRS 210. ## Policy The Governor's budget includes additional funding in the amount of $897,500 in fiscal year 2027 and $1,844,500 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 $646,200 and $1,328,000, respectively. ===== PAGE 217 =====
Health and Family Services Behavioral Health, Developmental & Intellectual Disabilities Community Developmental and Intellectual Disabilities
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation17,723,40017,754,50017,800,10017,216,20017,274,000
State Salary and Compensation Allocation31,100
Other612,500(440,000)
Budget Reduction-General Fund(534,000)
Total General Fund18,367,00017,314,50017,266,10017,216,20017,274,000
Restricted Funds
Balance Forward59,59058,85540,70040,70040,700
Non-Revenue Receipts2,725,7002,822,6193,414,4003,414,4003,414,400
Total Restricted Funds2,785,2902,881,4743,455,1003,455,1003,455,100
Federal Fund
Balance Forward(1,804,990)(1,618,350)(1,792,100)
Current Receipts3,511,6893,794,4405,546,6003,754,5003,754,500
Total Federal Fund1,706,6982,176,0903,754,5003,754,5003,754,500
TOTAL SOURCE OF FUNDS22,858,98822,372,06424,475,70024,425,80024,483,600
EXPENDITURES BY CLASS
Personnel Costs3,111,1213,626,3903,016,5002,972,8003,030,600
Operating Expenses455,775499,220619,300619,300619,300
Grants Loans Benefits20,851,58719,997,86020,799,20020,793,00020,793,000
TOTAL EXPENDITURES24,418,48324,123,46924,435,00024,385,10024,442,900
EXPENDITURES BY FUND SOURCE
General Fund18,367,00017,314,50017,266,10017,216,20017,274,000
Restricted Funds2,726,4352,840,8183,414,4003,414,4003,414,400
Federal Fund3,325,0483,968,1513,754,5003,754,5003,754,500
TOTAL EXPENDITURES24,418,48324,123,46924,435,00024,385,10024,442,900
Community Developmental and Intellectual Disabilities is responsible for administration of the Supports for Community Living Medicaid waiver program for individuals with intellectual and developmental disabilities and for the oversight of community providers of both waiver and state General Fund service programs. Developmental and Intellectual Disability Services provides support and services to individuals to help them be contributing members of their community. Services are provided through contracts with the 14 Regional Community Mental Health Centers and with for-profit and non-profit agencies which provide residential, vocational, community, respite, and a variety of other services that increase independence in the community. Some of the residential services include support to individuals within their own homes, family homes, group home living placements, apartment living supervision, community staffed residences, and assistance with other living arrangements. It is the responsibility of the provider to ensure that people are safe, healthy, respected and valued; that they live in the community with effective, individualized assistance; and are contributing members of the community in which they live and work. Additionally, each of the 14 Regional Community Mental Health Centers has 24/7 crisis prevention and intervention support available to individuals, families and providers with the goal of enabling an individual to remain in his/her community and to prevent future crisis events. ===== PAGE 218 =====
Health and Family Services Behavioral Health, Developmental & Intellectual Disabilities Community Substance Use Disorder Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation8,048,3007,986,7009,418,4009,112,7009,139,600
State Salary and Compensation Allocation66,300
Other788,2001,422,000
Budget Reduction-General Fund(282,500)
Total General Fund8,902,8009,408,7009,135,9009,112,7009,139,600
Tobacco Fund
Tobacco Settlement - Phase I1,400,0001,300,0001,300,0001,258,900249,300
Continuing Approp-Tob Settlement5,531,7514,124,2723,122,300
Other515,780
Total Tobacco Fund6,931,7515,940,0524,422,3001,258,900249,300
Restricted Funds
Balance Forward22,187,57933,857,05641,922,60040,835,30039,943,100
Current Receipts17,591,04617,561,36017,121,80017,126,1007,672,900
Non-Revenue Receipts74,31273,16773,20073,20073,200
Total Restricted Funds39,852,93751,491,58459,117,60058,034,60047,689,200
Federal Fund
Balance Forward(1,884,581)(845,894)(1,283,900)
Current Receipts69,305,86171,360,94063,459,30062,031,40062,201,600
Total Federal Fund67,421,28170,515,04562,175,40062,031,40062,201,600
TOTAL SOURCE OF FUNDS123,108,769137,355,382134,851,200130,437,600119,279,700
EXPENDITURES BY CLASS
Personnel Costs6,121,0265,734,4315,888,0005,533,8005,927,200
Operating Expenses317,964456,304437,000437,000437,000
Grants Loans Benefits79,534,34587,403,64287,690,90084,523,70084,564,900
TOTAL EXPENDITURES85,973,33593,594,37794,015,90090,494,50090,929,100
EXPENDITURES BY FUND SOURCE
General Fund8,902,8009,408,7009,135,9009,112,7009,139,600
Tobacco Fund2,807,4792,817,7244,422,3001,258,900249,300
Restricted Funds5,995,8829,569,00518,282,30018,091,50019,338,600
Federal Fund68,267,17571,798,94862,175,40062,031,40062,201,600
TOTAL EXPENDITURES85,973,33593,594,37794,015,90090,494,50090,929,100
===== PAGE 219 ===== The Community Substance Use Disorder Services Program provides quality treatment, prevention, and education services to citizens suffering from, or at-risk of, substance use disorders (tobacco, alcohol and prescription or illegal drugs). Services are provided through contracts with the CMHCs and other state, local, and private non-profit providers. Substance abuse prevention and treatment services are provided pursuant to KRS 222. The receipts from alcohol intoxication fines are received pursuant to KRS 431.100. Other statutes under which the program operates include: KRS 189A (Driving Under the Influence assessment, education, and treatment) and KRS 218A.410 (Drug Property subject to forfeiture). Contracts with the CMHCs and their subcontractors, schools, local government agencies, and other community-based organizations provide services which include: community prevention programming (offered through 14 Regional Prevention Centers); juvenile diversion programs; DUI assessment, education, and treatment programs; consultation with businesses on the development of a drug-free work place and employee assistance programs; social setting detoxification centers, residential treatment for men, women and youth, outpatient treatment, intensive outpatient treatment, and case management services; and specialized treatment services for pregnant women, women with dependent children, adolescents, and intravenous drug users. In addition, opiate replacement therapy (medication) and corresponding counseling is available to opiate dependent persons who are at high risk for HIV/AIDS due to their intravenous drug use. Training, consultation and client evaluations are made available, within budget limitations, to criminal justice agencies and other agencies within the Cabinet for Health and Family Services for clients with substance use disorders. As the State Substance Abuse Authority and the State Opiate Replacement Authority, the Department is tasked with leading the Kentucky Opioid Response Effort (KORE) and collaborating with other departments within the Cabinet, the Office of Drug Control Policy, and other state and local agencies in the effort to eradicate addiction. ## Policy The base budget includes Tobacco Settlement Funds in the amount of $1,258,900 in fiscal year 2027 and $249,300 in fiscal year 2028, and $1,050,700 in interest income from the Early Childhood Development trust fund, for substance abuse prevention and treatment for pregnant women with a history of substance abuse problems. The base budget includes General Fund of $900,000 in each fiscal year to support direct services to clients provided by The Healing Place, $14,600,000 General Fund each year to support the Appalachian Regional Hospital, and $750,000 General Fund each year to support Lee Specialty Clinic. ===== PAGE 220 =====
Health and Family Services Behavioral Health, Developmental & Intellectual Disabilities Community Mental Health Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation56,868,60059,247,20048,879,00046,993,90047,131,500
State Salary and Compensation Allocation108,700 (10,388,200)(7,857,000)
Other(1,766,400)
Budget Reduction-General Fund
Total General Fund46,589,10051,390,20047,112,60046,993,90047,131,500
Restricted Funds
Balance Forward10,708,96911,565,6408,373,3005,696,2002,855,100
Current Receipts1,276,6181,656,621610,900461,900463,000
Non-Revenue Receipts2,131,263(3,643,221)1,867,7001,852,7001,837,600
Total Restricted Funds14,116,8509,579,03910,851,9008,010,8005,155,700
Federal Fund
Balance Forward1,025,183671,3121,163,900
Current Receipts30,872,86831,437,31528,801,40029,965,30029,965,300
Total Federal Fund31,898,05132,108,62729,965,30029,965,30029,965,300
TOTAL SOURCE OF FUNDS92,604,00193,077,86687,929,80084,970,00082,252,500
EXPENDITURES BY CLASS
Personnel Costs5,951,1317,158,5546,721,5006,600,8006,738,400
Operating Expenses434,244280,674364,900364,900364,900
Grants Loans Benefits73,981,67476,101,42575,147,20075,149,20075,149,200
TOTAL EXPENDITURES80,367,05083,540,65382,233,60082,114,90082,252,500
EXPENDITURES BY FUND SOURCE
General Fund46,589,10051,390,20047,112,60046,993,90047,131,500
Restricted Funds2,551,2101,205,7555,155,7005,155,7005,155,700
Federal Fund31,226,73930,944,69829,965,30029,965,30029,965,300
TOTAL EXPENDITURES80,367,05083,540,65382,233,60082,114,90082,252,500
The Community Mental Health Services program provides services and support to Kentuckians with mental health conditions in an effort to improve their ability to function in the community. The Department for Behavioral Health, Developmental and Intellectual Disabilities contracts with 14 Regional Community Mental Health Centers (CMHCs) and other local entities to provide these services and supports. In addition, the Community Mental Health Services program has targeted funds to the most vulnerable citizens with behavioral health conditions. These include: • Adults with severe mental illness (KRS 210, KRS 202A), • Children/youth with severe emotional disabilities (KRS 200.501 to KRS 200.509), and • Uninsured or underinsured individuals with behavioral health disorders. In accordance with KRS 210.410, CMHCs must provide mentally ill persons and persons who abuse drugs and alcohol with specific services such as: consultation and educational services to help individuals understand their illnesses and treatment options; community support programs to assist individuals with mental health conditions in developing skills that allow them to live independently within the community; outpatient services; emergency services; and inpatient services, which are generally made available through referrals to crisis stabilization units or state or community hospitals. ===== PAGE 221 ===== State and Federal funds are used to provide psychiatric screening and assessment services, case management services, psychotropic medications, housing, and employment support services for adults with severe mental illness and children with severe emotional disabilities. Funds are also provided for unique services and supports designed to "wraparound" an adult or child who is at risk of psychiatric hospitalization. Funding is used to support promotion of mental “wellness” and early intervention assessment and treatment services. Suicide prevention for youth, adults and older adults is an important focus of the Department as well as services to individuals, and their families, dealing with behavioral health issues related to or exasperated by military service. Funding is used to support statewide needs assessment and planning, monitoring of services provided, training and technical assistance for providers and other community partners (child welfare, law enforcement, education), and procurement and administration of federal and other funds for the provision of effective, community-based services and supports. Integrated (physical and behavioral health) healthcare delivery is necessary for achieving optimal outcomes. ===== PAGE 222 =====
Health and Family Services Behavioral Health, Developmental & Intellectual Disabilities General Support
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation8,230,6008,505,4008,819,0008,432,5008,575,200
State Salary and Compensation Allocation274,8001,300
Other91,000153,000
Budget Reduction-General Fund(264,600)
Total General Fund8,596,4008,658,4008,555,7008,432,5008,575,200
Restricted Funds
Balance Forward84,410327,003381,500254,200126,900
Current Receipts402,500412,870403,000403,000403,300
Non-Revenue Receipts311
Total Restricted Funds486,910740,185784,500657,200530,200
Federal Fund
Current Receipts3113,000,0003,000,0003,000,000
Total Federal Fund3113,000,0003,000,0003,000,000
TOTAL SOURCE OF FUNDS9,083,3109,398,89612,340,20012,089,70012,105,400
EXPENDITURES BY CLASS
Personnel Costs7,053,6037,208,4707,386,7007,277,5007,420,200
Operating Expenses888,926842,040781,100781,100781,100
Grants Loans Benefits813,777966,9293,918,2003,904,2003,904,100
TOTAL EXPENDITURES8,756,3079,017,43912,086,00011,962,80012,105,400
EXPENDITURES BY FUND SOURCE
General Fund8,596,4008,658,4008,555,7008,432,5008,575,200
Restricted Funds159,907358,728530,300530,300530,200
Federal Fund3113,000,0003,000,0003,000,000
TOTAL EXPENDITURES8,756,3079,017,43912,086,00011,962,80012,105,400
General Support includes the Commissioner's Office, the Division of Administration and Financial Management, the Division of Program Integrity and the Office of Autism. This unit's activities include policy and budget development, proactive program monitoring, standards development, contract development and implementation, oversight of personnel and staffing, Autism Spectrum Disorder support, legislative monitoring and management decision-making for the overall direction of the Department. ===== PAGE 223 =====
Health and Family Services Behavioral Health, Developmental & Intellectual Disabilities Residential
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation95,939,40097,487,300104,576,400120,799,800121,379,900
State Salary and Compensation Allocation772,800
Other8,896,5006,722,000
Budget Reduction-General Fund(2,747,200)
Total General Fund105,608,700104,209,300101,829,200120,799,800121,379,900
Restricted Funds
Balance Forward25,437,3987,011,356
Current Receipts215,896,315232,229,320244,701,100244,712,000244,712,000
Non-Revenue Receipts(3,878,033)933,180(3,800,000)(3,800,000)(3,800,000)
Total Restricted Funds237,455,680240,173,856240,901,100240,912,000240,912,000
Federal Fund
Balance Forward(50,926)(113)(200)
Current Receipts714,12618,248200
Total Federal Fund663,20018,135
TOTAL SOURCE OF FUNDS343,727,580344,401,290342,730,300361,711,800362,291,900
EXPENDITURES BY CLASS
Personnel Costs90,211,28195,402,47994,371,80093,481,70094,059,100
Operating Expenses13,600,73316,074,06014,928,30014,681,10014,683,800
Grants Loans Benefits221,840,932219,664,529223,558,700243,677,500243,677,500
Debt Service10,989,94413,212,1639,810,8009,810,8009,810,800
Capital Outlay73,43248,17060,70060,70060,700
Construction17
TOTAL EXPENDITURES336,716,338344,401,401342,730,300361,711,800362,291,900
EXPENDITURES BY FUND SOURCE
General Fund105,608,700104,209,300101,829,200120,799,800121,379,900
Restricted Funds230,444,325240,173,801240,901,100240,912,000240,912,000
Federal Fund663,31318,300
TOTAL EXPENDITURES336,716,338344,401,401342,730,300361,711,800362,291,900
Residential Services provides inpatient care in the areas of psychiatric hospitalization, intermediate care for persons with developmental and intellectual disabilities, nursing facility care, and forensic psychiatry for approximately 800 individuals each day. Inpatient psychiatric services are provided for adults through four psychiatric hospitals: Eastern State Hospital in Lexington with an average daily census (ADC) of 136; Central State Hospital in Louisville with an ADC of 52; and Western State Hospital in Hopkinsville with an ADC of 143. The ARH Psychiatric Facility located in Hazard, owned and operated by Appalachian Regional Healthcare, Inc., with an ADC of 84, provides acute inpatient psychiatric services through a contract with the Department. Eastern State Hospital is operated under a management contract with the University of Kentucky. Glasgow Nursing Facility with an ADC of 45 and Western State Nursing Facility with an ADC of 66 provide quality care to adults with severe and persistent mental illness who require a skilled nursing facility's level of care. ===== PAGE 224 ===== Ten facilities provide intermediate care for individuals with developmental and intellectual disabilities who are unable to live unassisted in their communities: the Oakwood Community Center in Somerset with an ADC of 107, Outwood in Dawson Springs with an ADC of 43, Hazelwood in Louisville with an ADC of 73, Bingham Gardens located in Louisville with an ADC of 22, Del Maria in Fern Creek with an ADC of 8, the Meadows in Mount Washington with an ADC of 8, and Windsor in Crestwood with an ADC of 8. Residents are assisted in self-care skills and community living skills and are provided specialized services to promote their personal growth. The Department has established three specialty clinics in support of individuals with developmental and intellectual disabilities living in the community, who may have transitioned from a facility placement. Moving from a facility placement to a community placement creates a gap in services that can negatively impact clients and jeopardize a successful placement. These clinics provide a vast array of specialized services including medical, dental and therapeutic services on an outpatient basis, avoiding institutionalization. These three specialty clinics are located on the campuses of Bingham Gardens, Hazelwood Center, and Oakwood. Forensic psychiatric and competency evaluation services are provided at the Kentucky Correctional Psychiatric Center within the Luther Luckett Correctional Complex in LaGrange with an ADC of 34. Pretrial services are provided for persons with felony charges who are referred by district and circuit courts for evaluation of competency to stand trial. The correctional component may serve some post-convicted females in need of acute inpatient psychiatric treatment who are transferred from various institutions within the Department of Corrections. ## Policy The budget includes an additional $20,000,000 in General Fund in each fiscal year to meet the needs of increased census numbers and higher costs of operating residential facilities for individuals who are court ordered for involuntary treatment due to severe mental illness or intellectual disability and who pose a risk to themselves, family, or others. The base budget includes General Fund in the amount of $9,807,300 in fiscal year 2027 and $9,808,000 in fiscal year 2028 for lease payments for Eastern State Hospital. ===== PAGE 225 =====
Health and Family Services Public Health
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation107,537,60089,151,80088,543,30098,735,100100,208,200
Budget Reserve2,000,0002,000,000
State Salary and Compensation
Allocation996,2004,300
Budget Reduction-General Fund(2,656,400)
Total General Fund108,533,80091,151,80087,891,20098,735,100100,208,200
Tobacco Fund
Tobacco Settlement - Phase I12,200,00010,103,30010,580,00010,691,0009,880,000
Continuing Approp-Tob Settlement21,190,52311,282,1186,527,300
Other655,551
Total Tobacco Fund34,046,07421,385,41817,107,30010,691,0009,880,000
Restricted Funds
Balance Forward31,294,25643,361,02926,943,60017,176,3007,727,600
Current Receipts103,189,301105,509,317135,780,000146,221,400151,123,100
Non-Revenue Receipts43,032(1,156,467)(4,962,700)(6,962,600)(7,012,600)
Total Restricted Funds134,526,588147,713,879157,760,900156,435,100151,838,100
Federal Fund
Balance Forward(4,057,612)(4,876,581)(6,187,800)
Current Receipts343,573,806311,130,711308,818,000510,150,900499,317,300
Total Federal Fund339,516,194306,254,130302,630,200510,150,900499,317,300
TOTAL SOURCE OF FUNDS616,622,655566,505,227565,389,600776,012,100761,243,600
EXPENDITURES BY CLASS
Personnel Costs160,838,660158,364,354173,521,800174,833,200171,823,600
Operating Expenses36,446,50340,382,95528,512,70030,319,00028,465,200
Grants Loans Benefits364,647,993338,921,305346,103,800563,057,300560,879,800
Debt Service1,468,500
Capital Outlay4,922,93284,97075,00075,00075,000
TOTAL EXPENDITURES566,856,089539,222,084548,213,300768,284,500761,243,600
EXPENDITURES BY FUND SOURCE
General Fund108,533,80091,151,80087,891,20098,735,100100,208,200
Tobacco Fund22,763,95614,858,14017,107,30010,691,0009,880,000
Restricted Funds91,165,559120,770,229140,584,600148,707,500151,838,100
Federal Fund344,392,774312,441,915302,630,200510,150,900499,317,300
TOTAL EXPENDITURES566,856,089539,222,084548,213,300768,284,500761,243,600
===== PAGE 226 =====
EXPENDITURES BY UNIT
General Health Support60,600,12945,937,87136,529,300249,953,400250,530,700
Women's Health8,507,6838,387,3738,567,4008,611,0008,648,200
Prevention and Quality Improvement35,641,68231,170,62934,286,00039,306,00039,284,800
Epidemiology and Health Planning147,927,339135,883,963141,150,800132,501,300113,324,800
Maternal and Child Health233,374,270235,424,387249,015,800257,426,900267,582,900
Laboratory Services14,549,79814,449,95214,632,20016,572,20017,411,800
Public Health Protection and Safety44,342,22045,792,41941,782,30041,635,10041,937,900
Children's Health Services21,912,96822,175,49022,249,50022,278,60022,522,500
TOTAL EXPENDITURES566,856,089539,222,084548,213,300768,284,500761,243,600
The Department for Public Health's (DPH) mission is to improve the health and safety of all people in Kentucky through Prevention, Promotion and Protection. DPH is responsible for carrying out the core public health functions of: • Assessment of health status and programs; • Science-based health policy development; and Assurance of health services, codes, and programs to meet the needs of Kentuckians. Pursuant to KRS 211.025 and 211.180, DPH, with its seven divisions, enforces public health laws and regulations, assists local boards of health and health departments, and acts to protect and improve health. It does so by formulating, promoting, establishing, and executing policies, plans, and programs “relating to all matters of public health”, partnering with 61 local health departments (LHDs) covering 120 counties as well as other local, state and federal agencies. The department's focus is improving the health status of the population. Due in part to public health efforts, fewer Kentuckians smoke, a greater number of colon cancers are prevented, teen pregnancy rates are down, and deaths from cardiovascular disease are decreasing. The department strives to protect and improve the health and quality of life of each of over 4.4 million Kentuckians every day by administering approximately 150 distinct programs and services, which are as varied as immunizations, newborn screening, women's cancer prevention, radon control and the regulation of tattoo parlors. A sizable part of the state's economy is regulated by the actions of the department including the operation of food retail services, food manufacturing, radiation health services, hotels and pools. In fiscal year 2023, the public health system in Kentucky provided clinical services to an average of about 300,000 unduplicated patients. Many public health services are unavailable from any other source or are unattainable from another source at low or no cost. The department relies on LHDs to carry out many public health activities required by statute, regulation, or participation in federal grant awards. Federal monies support over half of the department's yearly budget. The majority of these awards are allocated to the community level for the performance of services. LHDs may also choose to perform enhanced services based on community health needs and for which the availability of funding allows. The department consists of seven divisions: Administration and Financial Management to include the Commissioner's Office, Women's Health, Prevention and Quality Improvement, Epidemiology and Health Planning, Maternal and Child Health, Laboratory Services, and Public Health Protection and Safety. A healthy population can help create a more robust workforce and contribute to driving down societal costs for healthcare. Kentucky's public health system, which touches numerous lives daily with its wide array of programs and messages, is critical to protecting and improving the state's health through its myriad programs and services many of which are performed only by public health agencies. Senate Bill 48 enacted in the 2023 regular session reorganized the Cabinet for Health and Family Services (CHFS). Effective July 1, 2024 the Office for Children with Special Health Care Needs was reorganized to the Department for Public Health. ## Policy The Governor's budget includes additional funding in the amount of $1,394,000 in fiscal year 2027 and $2,861,600 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 $487,900 and $1,001,600, respectively. ===== PAGE 227 =====
Health and Family Services Public Health General Health Support
Public Health General Health Support
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation53,433,20034,839,50032,870,70033,058,60033,940,800
State Salary and Compensation Allocation224,9004,300
Other(20,450,000)(1,310,300)
Budget Reduction-General Fund(2,656,400)
Total General Fund33,208,10033,529,20030,218,60033,058,60033,940,800
Restricted Funds
Balance Forward1,852,3481,121,9731,412,300955,80017,400
Current Receipts434,50993,5193,849,2003,849,4004,451,000
Non-Revenue Receipts434,2142,614,511(2,730,000)(2,730,000)(2,730,000)
Total Restricted Funds2,721,0713,830,0032,531,5002,075,2001,738,400
Federal Fund
Balance Forward(366,150)(3,419,157)(195,000)
Current Receipts22,739,92513,215,0994,930,000214,837,000214,851,500
Total Federal Fund22,373,7749,795,9424,735,000214,837,000214,851,500
TOTAL SOURCE OF FUNDS58,302,94547,155,14537,485,100249,970,800250,530,700
EXPENDITURES BY CLASS
Personnel Costs13,076,95711,693,2729,407,5008,883,7009,465,000
Operating Expenses2,409,9892,873,501777,200551,700547,700
Grants Loans Benefits45,000,33429,902,59826,344,600240,518,000240,518,000
Debt Service1,468,500
Capital Outlay112,850
TOTAL EXPENDITURES60,600,12945,937,87136,529,300249,953,400250,530,700
EXPENDITURES BY FUND SOURCE
General Fund33,208,10033,529,20030,218,60033,058,60033,940,800
Restricted Funds1,599,0972,417,6851,575,7002,057,8001,738,400
Federal Fund25,792,9329,990,9864,735,000214,837,000214,851,500
TOTAL EXPENDITURES60,600,12945,937,87136,529,300249,953,400250,530,700
The General Health Support Program includes two organizational units: the Commissioner and Administration and Financial Management. The Commissioner is responsible for the leadership, management, oversight, and policy direction of the Department for Public Health. The Commissioner advises the heads of major agencies in state government on policies, plans, and programs relating to matters of public health. This includes actions necessary to respond to extraordinary events in order to safeguard the health of the citizens of the Commonwealth. The Commissioner serves as the State Health Officer for the Commonwealth. The Commissioner's role includes the coordination of public health emergency response capabilities with federal and other state agencies and involvement in the statewide management of anti-terrorist (nuclear, biologic, chemical) activities. The Commissioner provides leadership in transforming the role of public health in Kentucky to new models as more uninsured citizens have opportunities for healthcare coverage under the new insurance marketplace and expanded Medicaid coverage. ===== PAGE 228 ===== The Chief Nursing Officer for Public Health, located in the Commissioner's Office, provides nurse administration consultation and technical assistance to the Commissioner, executive staff, and state and local health departments including approximately 800 nurses and APRNs who practice in local health departments across the state. This guidance includes nursing scope of practice issues, the development and implementation of clinical protocols, nursing education and clinical competencies as well as public health nursing workforce development initiatives. Ine Office of Population Health functionally operates through the Commissioner's Office. The Office seeks to eliminate health disparities in the state of Kentucky specifically those social, cultural, and environmental factors that contribute to adverse health outcomes. The Office serves in an advisory capacity to all divisions across the Department of Public Health, Local Health Departments, and other partners. Quality improvement, performance management, and national accreditation efforts continue to be a focus of the department. The goal of this program is for participants to make fundamental changes in their organizations and practices so that they can improve the delivery of public health services and create a culture of continuous quality improvement. The ten (10) essential public health services and Public Health Accreditation Board (PHAB) are the driving forces to achieve minimum standards and measures for public health. The Division of Administration and Financial Management provides all resource support to the department. This includes approximately 450 department-level personnel and more than 2,600 Local Health Department personnel represented by the 61 Kentucky LHDs in all 120 counties. The division provides all budget and accounting support, payments, grant allocation, fee collection, procurement, and contracting support. The division plays a vital role in providing effective and efficient training that enhances workforce abilities of the department, LHDs, public health preparedness, and other public health system partners. The division develops the department's biennial budget and oversees LHDs' fiscal planning and administrative management functions. The division works in concert with the other divisions in the department to plan, program, execute, manage, and report the financial activities of the department and LHDs. The division is also responsible for overseeing the day-to-day operations of the 61 LHDs. This responsibility includes conducting training on medical coding and billing practices, local health personnel procedures, and financial operations. Additionally, this division has the responsibilities for personnel management; medical records and forms management, reporting of clinical and community-based services, operating the online local health network that tracks more than three (3) million services to over 300,000 patients, policy interpretation, and the local Board of Health appointment process. The division is the primary liaison between the department and LHDs. ## Policy The budget includes an additional General Fund of $3,960,000 each year to retain the funding provided in the 2024-26 budget for the Public Health Transformation program. The 2024-26 budget included this funding from one-time money out of the Budget Reserve Trust Fund. This budget replaces the one-time money with recurring funds. The total amount for the program is $23,981,400. Kentucky recently received a $212,905,600 award from the new Rural Health Transformation Fund established in H.R.1 that Congress passed in July 2025. This is expected to be the first year of five years of this award amount. Its purpose is to lessen the impacts of recent federal cuts to the Medicaid program and help support health care in Kentucky's rural communities. Kentucky's plan was developed in partnership with health partners across the state and will use the funding to help address the unique challenges rural Kentucky faces, including high rates of chronic conditions, maternity care deserts and gaps in coverage for oral care, emergency services and behavioral health. ===== PAGE 229 =====
Health and Family Services Public Health Women's Health
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation425,500433,600521,300518,700522,600
State Salary and Compensation Allocation8,100
Other87,700
Total General Fund433,600521,300521,300518,700522,600
Restricted Funds
Balance Forward6,1736,1737,7005,1002,500
Current Receipts1,500400400500
Total Restricted Funds6,1737,6738,1005,5003,000
Federal Fund
Balance Forward(423,601)(412,442)(824,400)
Current Receipts8,085,2427,454,1498,867,5008,089,3008,122,600
Total Federal Fund7,661,6417,041,7078,043,1008,089,3008,122,600
TOTAL SOURCE OF FUNDS8,101,4147,570,6808,572,5008,613,5008,648,200
EXPENDITURES BY CLASS
Personnel Costs4,788,2584,753,4994,582,4004,626,1004,663,300
Operating Expenses255,290208,888189,400189,400189,500
Grants Loans Benefits3,464,1363,424,9863,795,6003,795,5003,795,400
TOTAL EXPENDITURES8,507,6838,387,3738,567,4008,611,0008,648,200
EXPENDITURES BY FUND SOURCE
General Fund433,600521,300521,300518,700522,600
Restricted Funds3,0003,0003,000
Federal Fund8,074,0837,866,0738,043,1008,089,3008,122,600
TOTAL EXPENDITURES8,507,6838,387,3738,567,4008,611,0008,648,200
The Division of Women's Health (DWH), in partnership with key stakeholders, provides leadership to improve the physical and socio-emotional health, safety, and well-being of Kentucky's women, including those with low incomes, diverse ethnic or racial backgrounds and isolated populations with limited access to care. The Division also represents Kentucky for the federal Health Resources Service Administration (HRSA) Office of Women's Health. The DWH includes the following programs: The Kentucky Women's Cancer Screening Program (KWCSP) provides breast and cervical cancer screenings and diagnostic case management and treatment referral services to reduce cancer morbidity and mortality among Kentucky's medically underserved, low income, and uninsured women. The Kentucky Women's Cancer Screening program is funded by a federal grant from the Centers for Disease Control and Prevention (CDC). The CDC grant requires the program to provide appropriate referrals for medical treatment; assure appropriate follow-up services and case management; develop and disseminate public information and education programs for the detection and control of breast and cervical cancers; improve the education, training, and skills of health professionals; monitor the quality of screening procedures for breast and cervical cancers; and evaluate activities through appropriate surveillance. In the past, this program has primarily been contracted to local health departments (LHDs). Through Kentucky's Public Health Transformation initiative, the LHDs will be allowed, at their discretion, to opt out of providing these services and the department will secure other partners to provide the services such as Federally Qualified Health Centers, Rural Health Clinics, and other community providers. ===== PAGE 230 ===== The Breast Cancer Research and Education Trust Fund program, is funded by revenue collected from breast cancer license plate purchases and the State Income tax form optional checkbox. Funds collected through these methods are distributed to community-based affiliates through an annual Request for Proposal process. Projects awarded support breast cancer research, education, treatment, screening, and awareness in Kentucky. The Title X Family Planning program provides individuals with the information and means to exercise personal decisions to determine the number and spacing of their children. Title X family planning clinics play a critical role in assuring access to voluntary, confidential family planning services for low-income or uninsured families. Charges to participants are at no cost or at a reduced cost based on their household income. Family Planning services are offered in LHDs and clinics targeting special populations (e.g. males, Hispanics, and adolescents). Title X supported clinics also provide a number of preventive health services such as patient education and counseling, breast and pelvic examinations, cervical cancer screenings, sexually transmitted disease prevention, human immunodeficiency virus (HIV) screenings, preconception counseling, and pregnancy diagnosis. The Title X Family Planning program is funded through the federal Office of Population Affairs, Health and Human Services agency. Through the Public Health Transformation initiative, the department will secure non-LHD providers for these services if the LHD declines participation. ===== PAGE 231 =====
Public Health
Prevention and Quality Improvement
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation14,439,90013,541,60014,254,00026,720,40026,770,700
Budget Reserve2,000,0002,000,000
State Salary and Compensation
Allocation101,700
Other775,000192,000
Total General Fund15,316,60015,733,60016,254,00026,720,40026,770,700
Tobacco Fund
Tobacco Settlement - Phase I3,400,0003,069,3003,200,0003,311,0002,500,000
Continuing Approp-Tob Settlement8,654,3057,142,8104,587,600
Other655,551
Total Tobacco Fund12,709,85610,212,1107,787,6003,311,0002,500,000
Restricted Funds
Balance Forward1,143,2561,254,313801,600534,400267,200
Current Receipts390,071245,797304,800304,800304,800
Non-Revenue Receipts500,000700,000
Total Restricted Funds2,033,3281,500,1101,106,400839,2001,272,000
Federal Fund
Balance Forward10,693(493,336)(159,000)
Current Receipts13,474,9929,448,3119,831,4008,702,6008,742,100
Total Federal Fund13,485,6858,954,9749,672,4008,702,6008,742,100
TOTAL SOURCE OF FUNDS43,545,46936,400,79534,820,40039,573,20039,284,800
EXPENDITURES BY CLASS
Personnel Costs7,939,6787,227,7087,530,4007,455,0007,544,800
Operating Expenses1,057,0931,416,815939,300939,200939,200
Grants Loans Benefits26,525,21522,526,10625,816,30030,911,80030,800,800
Capital Outlay119,696
TOTAL EXPENDITURES35,641,68231,170,62934,286,00039,306,00039,284,800
EXPENDITURES BY FUND SOURCE
General Fund15,316,60015,733,60016,254,00026,720,40026,770,700
Tobacco Fund5,567,0465,624,5777,787,6003,311,0002,500,000
Restricted Funds779,015698,520572,000572,0001,272,000
Federal Fund13,979,0219,113,9339,672,4008,702,6008,742,100
TOTAL EXPENDITURES35,641,68231,170,62934,286,00039,306,00039,284,800
The mission of the Prevention and Quality Improvement (PQI) program is to deliver programs and services which can be implemented at the local level including chronic disease management, clinical and community education/promotion, self-management education, quality improvement, health care access for low income Kentuckians, and health risk behavior data analysis through the Kentucky Behavioral Risk Factor Surveillance System in order to effectively prioritize health issues and implement appropriate evidence-based interventions. The program's activities cover the spectrum of population-based and personal preventive health services, delivered through a wide range of health partners and health care organizations. ===== PAGE 232 ===== The PQI division provides leadership and facilitates partnerships with key stakeholders in order to improve care and services with a special focus on populations with low incomes, diverse ethnicity and racial backgrounds, and underserved populations with limited access to care. Division staff support partners who provide clinical and community based services and provide technical assistance in infrastructure building through policy development and implementation, providing data and surveillance activities, and developing appropriate disease management strategies. I ne PQI division is also involved in the departmental preparations to apply for national accreditation by the Public Health Accreditation Board (PHAB). Key division staff are working on domain teams for public health accreditation activities. Division staff also serve on the department accreditation readiness team, strategic plan committee, State Health Improvement Plan committee, and State Health Assessment committee, and provide data through the Behavioral Risk Factor Surveillance System (BRFSS) to all local health departments in Kentucky for their own accreditation efforts. The Chronic Disease Prevention Branch utilizes evidence-based programming and interventions to reduce morbidity and mortality from chronic diseases. Programs include asthma, community health action teams, community health worker, comprehensive cancer, pediatric cancer, colon cancer, chronic obstructive pulmonary disease, diabetes, heart disease and stroke, obesity prevention, and tobacco prevention. The Branch provides partial funding to local health departments for capacity building, which will lead to sustainable interventions in order to improve health status at the community level through local coalitions, health systems improvement strategies, and by increasing community-clinical linkages for access to screening and disease self-management. The Health Care Access Branch provides a departmental focus on primary care and administers federal grants and programs relative to primary care. Through these programs, approximately 120 additional physicians are serving Kentucky's medically underserved population. The Branch is responsible for determining areas of Kentucky that meet the criteria for Health Professional Shortage Area and Medically Underserved Area. The Branch is also responsible for the Charitable Health Program, National Health Service Corps Program, Kentucky Physician Care Program, J-1 VISA Program, Kentucky Prescription Assistance Program (KPAP) and Kentucky Spinal Cord and Head Injury Research Board. The Division of Prevention and Quality Improvement, including both branches, is working toward alignment with Kentucky's public health transformation principles. In order to ensure continuity of services for Kentuckyians, in those geographic areas in which these programs are not identified as local community priorities and will no longer be provided by the LHD, the division is seeking non-traditional partners. Many programs have been in alignment with transformation principles for years and are serving as guidance for others. ## Policy The base budget in each fiscal year includes General Fund resources in the amount of $500,000 for the Kentucky Colon Cancer Screening Program, and an additional $250,000 in each fiscal year, for a total of $750,000 each year. The base budget includes Tobacco Settlement Funds in the amount of $2,111,000 in fiscal year 2027 and $2,000,000 in fiscal year 2028 for Smoking Cessation; $700,000 fiscal year 2027 for Early Childhood Oral Health, and $500,000 in each fiscal year for the Lung Cancer Screening Program. A restricted fund appropriation of $700,000 is added in fiscal year 2028 for Early Childhood Oral Health. The budget includes an additional $12,500,000 of General Fund in each fiscal year for a nursing student loan forgiveness program. ===== PAGE 233 =====
Health and Family Services Public Health Epidemiology and Health Planning
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation3,005,8003,253,9003,287,0003,443,8003,582,800
State Salary and Compensation Allocation48,100
Other830,00010,000
Total General Fund3,883,9003,263,9003,287,0003,443,8003,582,800
Tobacco Fund
Continuing Approp-Tob Settlement2626
Total Tobacco Fund2626
Restricted Funds
Balance Forward8,505,82810,826,9468,163,6005,442,4002,721,200
Current Receipts48,448,64344,086,99658,560,30064,201,10066,201,100
Non-Revenue Receipts(1,000,000)438,723(300,000)(300,000)(300,000)
Total Restricted Funds55,954,47055,352,66566,423,90069,343,50068,622,300
Federal Fund
Balance Forward(2,050,389)(2,174,851)(4,897,300)
Current Receipts98,791,45382,708,51581,779,60062,435,20041,119,700
Total Federal Fund96,741,06480,533,66476,882,30062,435,20041,119,700
TOTAL SOURCE OF FUNDS156,579,460139,150,255146,593,200135,222,500113,324,800
EXPENDITURES BY CLASS
Personnel Costs78,355,87566,584,47575,481,80076,892,60072,282,400
Operating Expenses17,015,09918,006,35912,689,80011,989,8009,389,800
Grants Loans Benefits48,661,67051,293,12952,979,20043,618,90031,652,600
Capital Outlay3,894,695
TOTAL EXPENDITURES147,927,339135,883,963141,150,800132,501,300113,324,800
EXPENDITURES BY FUND SOURCE
General Fund3,883,9003,263,9003,287,0003,443,8003,582,800
Restricted Funds45,127,52447,189,06460,981,50066,622,30068,622,300
Federal Fund98,915,91585,431,00076,882,30062,435,20041,119,700
TOTAL EXPENDITURES147,927,339135,883,963141,150,800132,501,300113,324,800
The mission of the Division of Epidemiology and Health Planning is to provide quality epidemiological and vital records services, public health planning, and reportable disease prevention and control services in order to promote, protect, and plan for the health and safety of Kentuckians. To accomplish these responsibilities, the Division conducts activities in four areas: The Infectious Disease Branch, which includes disease surveillance, prevention, and control activities related to vaccine-preventable diseases, sexually transmitted diseases, tuberculosis, adult viral hepatitis, healthcare associated infections, and other reportable diseases, The Viral Disease Prevention and Services Branch, which is responsible for the prevention and control of viral diseases through surveillance, prevention, and client services. The Immunization Branch, which includes providing vaccines for children-enrolled health care providers at no cost, enforcing school and child care immunization regulations, providing immunization education and training for health care providers and the general public, coordinating surveillance and control efforts for vaccine-preventable diseases, and promoting vaccine safety, and ===== PAGE 234 ===== The Vital Statistics Branch, which collects and preserves mandatory records of vital events including births, deaths, marriages, and divorces. The Sexually Transmitted Disease (STD) Prevention and Control Section is designed to reduce the occurrence and prevent the transmission and debilitating complications of sexually transmitted diseases. The STD Section provides educational materials, staff training, program planning and evaluation services, technical consultation, and selected antibiotics to all local health departments (LHDs) and other selected health care providers. The Tuberculosis (TB) Prevention and Control Section aims to reduce the number of cases and deaths due to TB by preventing non-infected individuals from becoming infected, keeping those infected without disease from progressing to disease, and by attempting to maintain infected individuals with disease as non-infectious. The Reportable Disease Program is responsible for case confirmation, oversight of disease investigations, and surveillance for reportable diseases such as meningitis, hepatitis, diarrheal diseases, foodborne illnesses, and vector-borne diseases. The Adult Viral Hepatitis Prevention Program is a federally funded program that focuses on the prevention of viral hepatitis in adults caused by hepatitis A, hepatitis B, and hepatitis C viruses. The Healthcare Associated Infection (HAI) Program establishes an infrastructure within the Kentucky Department for Public Health to develop statewide activities focused on the prevention of HAIs within healthcare facilities. The Viral Disease Prevention and Services Branch seeks to identify and track cases of HIV and AIDS, prevent the disease by raising awareness and promoting risk reduction behaviors and connect HIV-positive clients to care. The HIV Prevention program focuses on testing, awareness of one's status, and strategic intervention activities to reduce HIV transmission for at-risk populations. The HIV/AIDS Services program assists HIV-positive clients with case management, in addition to providing life-saving medications and insurance continuation for qualified clients, as a payor of last resort. The Immunization Branch provides financial support and vaccines to LHDs and other providers for the provision of over one million immunizations each year to about 700,000 persons, primarily ages 0-18 years. Immunization rates are tracked in schools, day care facilities, LHD clinics, and the general child population. This branch also operates the Kentucky Immunization Registry. The Vital Statistics Branch is responsible for the registration, certification, and issuance of vital records (birth, death, marriage, and divorce certificates) in Kentucky. The program's primary responsibility is the maintenance and security of these vital records as well as responding to specific requests for vital statistics data. ## Policy The budget includes additional Restricted Funds of $4,000,000 in fiscal year 2026-2027 and $6,000,000 in fiscal year 2027-2028 to support increased services for the Ryan White HIV/AIDS Program. The budget includes additional Restricted Funds of $1,640,800 in each year to support the ongoing operations of the Office of Vital Statistics including staffing, technology, security, and maintenance of records ===== PAGE 235 =====
Public Health
Maternal and Child Health
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation16,527,10017,146,50017,604,10017,570,50017,620,500
State Salary and Compensation Allocation119,400
Other12,995,000593,600
Total General Fund29,641,50017,740,10017,604,10017,570,50017,620,500
Tobacco Fund
Tobacco Settlement - Phase I8,800,0007,034,0007,380,0007,380,0007,380,000
Continuing Approp-Tob Settlement12,536,1924,139,2821,939,700
Total Tobacco Fund21,336,19211,173,2829,319,7007,380,0007,380,000
Restricted Funds
Balance Forward10,855,40520,928,62314,385,0008,789,8003,994,900
Current Receipts35,374,52440,113,91448,749,80049,550,10050,350,100
Non-Revenue Receipts(316,668)(1,764,986)(2,050,000)(2,050,000)(2,050,000)
Total Restricted Funds45,913,26159,277,55261,084,80056,289,90052,295,000
Federal Fund
Balance Forward(950,005)1,761,3541,092,500
Current Receipts164,262,582162,889,360168,704,500180,181,400190,287,400
Total Federal Fund163,312,577164,650,714169,797,000180,181,400190,287,400
TOTAL SOURCE OF FUNDS260,203,530252,841,647257,805,600261,421,800267,582,900
EXPENDITURES BY CLASS
Personnel Costs14,460,50519,455,60024,722,50024,987,90025,243,900
Operating Expenses1,915,9501,872,3271,610,2001,547,7001,547,700
Grants Loans Benefits216,997,815214,096,461222,683,100230,891,300240,791,300
TOTAL EXPENDITURES233,374,270235,424,387249,015,800257,426,900267,582,900
EXPENDITURES BY FUND SOURCE
General Fund29,641,50017,740,10017,604,10017,570,50017,620,500
Tobacco Fund17,196,9109,233,5639,319,7007,380,0007,380,000
Restricted Funds24,984,63844,892,52452,295,00052,295,00052,295,000
Federal Fund161,551,223163,558,200169,797,000180,181,400190,287,400
TOTAL EXPENDITURES233,374,270235,424,387249,015,800257,426,900267,582,900
I he Division of Maternal and Child Health (MCH) promotes and safeguards the health of all Kentuckians, with an emphasis on at-risk mothers, infants, children, and adolescents. The division's goal is to help those at risk of adverse health effects achieve the highest level of health and wellness possible through public health surveillance, education, nutrition, perinatal care, early childhood promotion and intervention, well-child care, injury prevention, coordinated school health, and selected primary and preventive care activities. The Surveillance and Evaluation Branch is responsible for public health surveillance systems including the Neonatal Abstinence Reporting, Pregnancy Risk Assessment Monitoring System, and the Sudden Unexpected Infant Death Registry. The Kentucky Birth Surveillance Registry, which is required by KRS 211.651-.670, identifies children in Kentucky who are at risk for serious medical conditions and developmental delays, and works closely with the Newborn Screening and Case Management program to ensure infants get appropriate and timely follow-up to mitigate adverse outcomes, and in some cases, prevent early death. ===== PAGE 236 ===== The Child Development Branch is required, by KRS 211.689-.690, to provide early childhood initiatives such as home visitation (Health Access Nurturing Development Services [HANDS]), childcare health consultation, early childhood mental health services for children, Kentucky Strengthening Families, and Help Me Grow. HANDS is a voluntary statewide home visitation program designed to assist overburdened parents during the prenatal period until the child's third birthday. Home visitation services include education and information on prenatal and postnatal health, early brain development, family self-sufficiency, home safety, and parent-child interactive curriculum activities. The Early Intervention Branch administers the Kentucky Early Intervention System (KEIS), within the Child Development Branch, referred to as First Steps. The Branch provides case management and coordination of services for infants and toddlers between birth and three years of age with developmental disabilities or developmental delays. These early intervention services include services such as physical therapy, occupational therapy, speech therapy, hearing and vision services, and other services as needed to meet the child's developmental needs. KEIS services are provided in the home or other community settings. Families and other interested parties access the KEIS program locally through 15 points of entry covering the state. Children served by KEIS transition at age three to the local education agency or other community supports. The Clinical Support Services Branch provides oversight to services and activities including prenatal care, childhood lead poisoning prevention, maternal mortality review, and coordinated school health. The Newborn Screening Follow-up and Metabolic Nutritional Support programs identify children in Kentucky who are at risk for serious medical conditions and developmental delays, and works closely with the Birth Surveillance Registry. The Population Health Branch provides oversight to services and activities including child and adolescent preventative health, child fatality review and injury prevention. In addition, this branch houses the division's infant mortality efforts, including the safe sleep campaign and the division's population health efforts of the Title V Block Grant that are executed through the Local Health Department system in all 120 counties. The Nutrition Services Branch administers the Special Supplemental Nutrition Program for Women, Infants and Children (WIC); Clinical Nutrition Services, Breastfeeding Peer Counselor Program; and the WIC Farmer's Market Nutrition Program. The Women, Infants and Children program is funded wholly by the US Department of Agriculture and provides food packages and nutrition education to low-income pregnant and postpartum women, infants, and children at nutritional risk, and sets standards for nutrition services. Nutritionists in local health departments provide medical nutrition therapy and follow-up nutrition care for mothers and children with special nutrition needs. ## Policy The base budget includes $750,000 from the General Fund in each fiscal year for the Kentucky Poison Control Center. The base budget each year includes Tobacco Settlement Funds in the amount of $700,000 for the Healthy Start initiatives, $700,000 for Early Childhood Mental Health, and $5,980,000 in each fiscal year for the Health Access Nurturing Development Services Program. ===== PAGE 237 =====
Health and Family Services Public Health Laboratory Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation5,779,2006,251,0006,201,4006,141,4006,231,000
State Salary and Compensation Allocation121,800
Other3,100,000(300,000)
Total General Fund9,001,0005,951,0006,201,4006,141,4006,231,000
Restricted Funds
Balance Forward1,272,6773,224,995423,000282,000141,000
Current Receipts7,403,9598,929,7399,879,80011,879,80012,629,800
Non-Revenue Receipts(3,291,723)(1,700,000)(1,700,000)(1,700,000)
Total Restricted Funds8,676,6368,863,0118,602,80010,461,80011,070,800
Federal Fund
Balance Forward(3,841)
Current Receipts100,99858,952110,000110,000110,000
Total Federal Fund97,15758,952110,000110,000110,000
TOTAL SOURCE OF FUNDS17,774,79314,872,96314,914,20016,713,20017,411,800
EXPENDITURES BY CLASS
Personnel Costs8,179,9528,293,0948,891,0008,834,7008,924,300
Operating Expenses6,362,3456,143,3575,727,8007,724,2008,474,400
Grants Loans Benefits7,50113,50013,40013,30013,100
TOTAL EXPENDITURES14,549,79814,449,95214,632,20016,572,20017,411,800
EXPENDITURES BY FUND SOURCE
General Fund9,001,0005,951,0006,201,4006,141,4006,231,000
Restricted Funds5,451,6418,440,0008,320,80010,320,80011,070,800
Federal Fund97,15758,952110,000110,000110,000
TOTAL EXPENDITURES14,549,79814,449,95214,632,20016,572,20017,411,800
The Division of Laboratory Services (DLS) performs sophisticated state of the art chemical, biological, and molecular laboratory testing. In partnership with federal, state, and local entities, testing performed at the state public health laboratory supports critical activities like disease investigation, control, prevention and surveillance; food safety; and environmental health and protection. Leveraging expertise and resources, DLS serves as a reference center for hospitals and local health departments across the Commonwealth. DLS detects and identifies a wide variety of microorganisms (bacterial and viral) and toxic chemical substances that pose a threat to public health. These include infectious agents related to food-borne disease outbreaks, seasonal influenza, and high-risk and high mortality diseases like antibiotic resistant tuberculosis, hospital-associated pneumonia, and sepsis. This requires the use of technology such as Next-Generation Sequencing (NGS) to look for relatedness between organisms that are identified from human or food sources. DLS also tests for environmental contaminants like pesticides in fruits or vegetables sold at farmers markets and bacterial contamination in commercial dairy products. When DLS identifies hospital-associated infections or dangerous, emerging infectious pathogens such as the Zika or Ebola virus, methods for their detection are rapidly deployed. Timely and precise detection of these biological agents is essential for effectively limiting spread and harm to the public. ===== PAGE 238 ===== DLS tests packages and/or substances with possible links to chemical or biological terrorism in a highly secured biosafety level 3 laboratory with specialized protocols developed and distributed by the Centers for Disease Control and Prevention (CDC) as a part of the Laboratory Response Network (LRN). These facilities and protocols are not available to other laboratories in the state making DLS a reference laboratory for Kentucky. DLS' specially trained and skilled scientists develop and maintain capacity for testing for low incidence or high-risk diseases (e.g. botulism, rabies, etc.) which may be unavailable in the private sector. DLS performs testing for heritable conditions in newborns that may be undetectable by physical examination or by other clinical signs or symptoms. DLS performs initial laboratory screening for the identification of metabolic, endocrine, hemoglobin, and other disorders. In July 2018, DLS added X-linked Adrenoleukodystrophy to its screening panel through a collaboration with Mayo Clinic Laboratories. Additionally, in August 2019 screening for Spinal Muscular Atrophy was implemented bringing the total number of disorders on the panel to 55. DLS also began providing paid courier service to birthing hospitals in 2017 in order to meet national timeliness requirements for newborn screening. To meet the timeliness requirements, DLS instituted a six-day workweek. Timeliness is critical for newborn screening as there are treatments or preventive measures that work only if initiated early after birth. DLS is regulated by CLIA (Clinical Laboratory Improvement Amendments) and is accredited by the College of American Pathologists. In January 2017, the laboratory received accreditation as a food-testing laboratory. Other agencies that routinely inspect and/or certify DLS include the CDC, U.S. Department of Homeland Security, U.S. Department of Transportation, Environmental Protection Agency, and American Industrial Hygiene Association. DLS performs testing for the Department for Public Health (DPH) and Occupational Safety and Health Administration (OSHA), often requiring very specific laboratory support. Workload is largely driven by state program needs in compliance with applicable state statutes and/or regulations. ## Policy The budget includes additional Restricted Funds of $2,000,000 in fiscal year 2026-2027 and $2,750,000 in fiscal year 2027-2028 for drug and supplement analysis. This additional funding will fully support new, mandated testing requirements for drugs and supplements, including medical marijuana and related edibles, supplements, as well as potential contaminants. ===== PAGE 239 =====
Health and Family Services
Public Health
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation6,547,7005,996,1005,888,1003,465,6003,573,800
State Salary and Compensation Allocation153,400
Other2,750,000(157,000)
Total General Fund9,451,1005,839,1005,888,1003,465,6003,573,800
Restricted Funds
Balance Forward939,3943,846,2131,033,600689,000344,500
Current Receipts5,492,4015,629,7987,637,4009,637,50010,387,500
Non-Revenue Receipts1,171,795(255,667)(200,000)(2,200,000)(2,950,000)
Total Restricted Funds7,603,5909,220,3448,471,0008,126,5007,782,000
Federal Fund
Balance Forward(197,008)(99,873)(1,157,900)
Current Receipts31,230,87830,708,54429,270,10030,387,50030,582,100
Total Federal Fund31,033,87130,608,67128,112,20030,387,50030,582,100
TOTAL SOURCE OF FUNDS48,088,56145,668,11542,471,30041,979,60041,937,900
EXPENDITURES BY CLASS
Personnel Costs17,456,85323,656,67726,183,00026,392,10026,694,800
Operating Expenses4,823,5136,506,2453,894,5004,692,5004,692,500
Grants Loans Benefits21,678,87915,629,49611,704,80010,550,50010,550,600
Capital Outlay382,975
TOTAL EXPENDITURES44,342,22045,792,41941,782,30041,635,10041,937,900
EXPENDITURES BY FUND SOURCE
General Fund9,451,1005,839,1005,888,1003,465,6003,573,800
Restricted Funds3,757,3778,186,7497,782,0007,782,0007,782,000
Federal Fund31,133,74431,766,56928,112,20030,387,50030,582,100
TOTAL EXPENDITURES44,342,22045,792,41941,782,30041,635,10041,937,900
The Division of Public Health Protection and Safety provides a variety of environmental health services to the general public and other local and state agency partners. These services range from monitoring exposure to radiation to ensuring sanitation of food, milk, and various public facilities including hotels, swimming pools, tattoo studios and others. These programs provide technical consultation, guidance and training to the sixty-one (61) local health departments (LHDs) and approximately 700 LHD environmental registered sanitarians, and regulatory oversight to thousands of Kentucky's regulated businesses. The Program's mission is to promote a healthier, safer public through prevention, education, communication, and regulation. The Radiation Health Branch inspects and issues over 720 licenses to users of radioactive materials. The branch monitors the transportation of radioactive waste throughout the Commonwealth, and is mandated and equipped to respond to radiological emergencies 24 hours a day. The branch registers and inspects more than 4,000 facilities with 10,715 X-Ray tubes, conducts reviews and inspections of approximately 163 mammography facilities, and approves approximately 65 shielding plans for facilities. The branch also operates a radiation health laboratory which collects and analyzes approximately 5,000 environmental samples for radiologic contamination annually and conducts over 6,000 analyses on the samples. This branch provides monitoring for radiologic sites such as the Maxey Flats Disposal Site and the Paducah Gaseous Diffusion Plant. The Milk Safety Branch operates under Kentucky Revised Statutes Chapter 217C, to prevent adulteration, misbranding, and false advertising of milk and milk products and protects the public from disease transmission through milk products. This mandate is achieved through inspections of dairy farms, dairy plants, micro-processors, distributors, milk haulers, and other entities improving ===== PAGE 240 ===== the quality of milk that is produced and sold to the public. This branch also monitors the development of product standards of identity and legal labeling for all dairy products as mandated by the U.S. Food and Drug Administration (FDA) and the U.S. Department of Agriculture. Kentucky adopted the 2017 edition of the Pasteurized Milk Ordinance, a federally mandated ordinance which ensures certain quality standards and which allows milk produced and processed in Kentucky to be produced, processed, transported and sold to all other forty-nine states. The Food Safety Branch provides regulatory oversight to Kentucky's multi-billion dollar food industry. The branch provides training and technical consultation to local health department (LHD) employees who inspect food service establishments, retail food stores, vending machine companies, tattoo studios, body piercing facilities, boarding homes, tanning facilities, and bed and breakfast establishments in order to prevent the spread of communicable diseases and injuries. The branch also directly regulates food manufacturing and storage programs and the farmer's market for program compliance with state regulations. The branch responds to and investigates food recalls and works closely with the federal FDA on outbreak investigation involving regulated foods. The Food Safety Branch is also actively involved during natural and man-made disasters to protect the food supply. The Drug and Supplement Branch is responsible for the regulatory oversight of Hemp-Derived Cannabinoid, Delta 8, Kratom and Dietary Supplement products in Kentucky. This branch aims to ensure the safety and well-being of Kentucky residents by the managing and overseeing the production and distribution of these substances. The Environmental Management Branch is responsible for the oversight and regulatory requirements involving public facilities, including hotels/motels, public restrooms, schools, state confinement facilities, public swimming and bathing facilities, mobile home/recreational vehicle parks/communities, and youth camps through annual operating permits and routine inspections as required by law. The branch provides technical assistance and training to the sixty-one (61) LHDs which provide direct inspection of the regulated entities. The branch is also responsible for conducting initial certification and ongoing specialized trainings to LHD environmental staff, providing continuing education for septic system installers, approving septic system components and experimental designs, providing consumer education on such issues as mold and bedbugs, operating a radon education program, and providing support for both the rabies control program and issues regarding private water sources. The branch additionally is responsible for maintaining certifications and tracking continuing education for certified radon professionals. This branch ensures that public health nuisances (illegal garbage dumps, accumulation of trash and garbage, rodent infestations, mosquito infestations, and untreated sewage) are investigated and abated by LHD inspectors. Through its education, investigation, permitting, and inspection activities, the Environmental Management Branch has a direct effect on protecting the lives of the public as well as, the operation of most private business entities. The Public Safety Branch is responsible for the regulation and certification of lead abatement professionals and clearance testing of mitigated properties. This branch also oversees the public swimming pool construction program and the methamphetamine contaminated properties program. Public Safety provides epidemiological support for disease cluster investigations and supports statistical and standardized reporting of environmental data. This branch houses the CDC funded program that provides data to the Environmental Public Health Tracking Network to establish links between the environment and health outcomes. The Public Health Workforce Readiness Branch is structured to include a public health workforce education section and public health student education section. This structure supports department programs and initiatives to recruit, train and sustain a competent and diverse response-ready public health workforce for the Commonwealth of Kentucky. The Harm Reduction Branch focuses on improving the health and safety of Kentuckians through prevention, promotion, and protection. The branch works to deliver harm reduction services that aim to reach individuals who are not otherwise accessing healthcare services by providing naloxone, wound care kits and drug testing strips. Its work is made possible through community involvement and collaboration with Kentucky's local health departments and other community-based organizations. The Emergency Preparedness and Response Branch is responsible for enhancing the capacity of the Department for Public Health (DPH), local public health departments, and the health care system to prevent, prepare for, respond to, and recover from the adverse health effects of public health emergencies. DPH is the lead agency for the Federal Emergency Management Agency (FEMA) Emergency Support Function #8 (ESF-8) for coordination of public health and medical-related preparedness, and this branch works with 38 external ESF-8 partners to conduct response and recovery activities for emergencies, exercises, and planned events. The state ESF-8 Plan builds capacity for: ===== PAGE 241 ===== Community/Healthcare Preparedness and Recovery. Community/Healthcare System Recovery, • Emergency Operations Coordination, Emergency Public Information and Warning. • Fatality Management. • Information Sharing, • Mass Care, • Medical Countermeasure Dispensing, • Medical Material Management and Distribution. • Medical Surge, - Non-Pharmaceutical Interventions, Public Health Laboratory Testing. Public Health Surveillance and Epidemiological Investigation. • Responder Safety and Health, and • Volunteer Management. ===== PAGE 242 =====
Health and Family Services Public Health Children's Health Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation7,379,2007,689,6007,916,7007,816,1007,966,000
State Salary and Compensation Allocation218,800
Other884,000
Total General Fund7,598,0008,573,6007,916,7007,816,1007,966,000
Restricted Funds
Balance Forward6,719,1752,151,792716,800477,800238,900
Current Receipts5,645,1946,408,0546,798,3006,798,3006,798,300
Non-Revenue Receipts(746,309)1,102,6742,017,3002,017,4002,017,400
Total Restricted Funds11,618,0599,662,5209,532,4009,293,5009,054,600
Federal Fund
Balance Forward(77,312)(38,275)(46,700)
Current Receipts4,887,7374,647,7825,324,9005,407,9005,501,900
Total Federal Fund4,810,4254,609,5075,278,2005,407,9005,501,900
TOTAL SOURCE OF FUNDS24,026,48422,845,62722,727,30022,517,50022,522,500
EXPENDITURES BY CLASS
Personnel Costs16,580,58316,700,02816,723,20016,761,10017,005,100
Operating Expenses2,607,2253,355,4642,684,5002,684,5002,684,400
Grants Loans Benefits2,312,4432,035,0282,766,8002,758,0002,758,000
Capital Outlay412,71784,97075,00075,00075,000
TOTAL EXPENDITURES21,912,96822,175,49022,249,50022,278,60022,522,500
EXPENDITURES BY FUND SOURCE
General Fund7,598,0008,573,6007,916,7007,816,1007,966,000
Restricted Funds9,466,2688,945,6879,054,6009,054,6009,054,600
Federal Fund4,848,7004,656,2035,278,2005,407,9005,501,900
TOTAL EXPENDITURES21,912,96822,175,49022,249,50022,278,60022,522,500
The Office for Children with Special Health Care Needs (OCSHCN) provides comprehensive care to children and youth with special health care needs who are Kentucky residents; younger than 21 years of age; meet medical eligibility; and meet financial eligibility. OCSHCN's mission is to enhance the quality of life for Kentucky's children with special health care needs through quality service, leadership, advocacy, education and collaboration. OCSHCN supports the highest quality of life for Kentucky's children with special health care needs and their families through collaboration and creation of a more accessible community based system of support. OCSHCN believes in working with partners including families on new initiatives to develop and promote a more robust system of care. OCSHCN continues to build collaborations to ensure more of Kentucky's most vulnerable children will have access to the care they need for a wide variety of direct, enabling, population-based and surveillance programs which provide specialized health care; early periodic screening diagnosis and treatment services; social services and support to children, youth, and his/her families. ===== PAGE 243 ===== The programs/services currently operating within OCSHCN are: Support Services: Outreaches to providers, schools, and the community through trainings, meetings, and participation in health fairs and educational symposiums. OCSHCN increases community and family engagement through the agency's Facebook page, Youth Advisory Committee, Parent Advisory Committee and Spanish speaking support groups. OCSHCN provides interpreters (at no cost to families) for those directly enrolled in OCSHCN services who have limited English proficiency. Family to Family: OCSHCN employs two family consultants who oversee family-to-family connections in each OCSHCN district office through a mentoring program called the Family-to-Family (F2F) Health Information Center. The mentors identify available community resources and educate families, children, and young adults about how to navigate and access those resources. Over the last few fiscal years, F2F had over 70 support parents across the state assisting over 1,000 families for various needs related to healthcare. OCSHCN utilizes data to identify areas of the Commonwealth where there may be gaps in services. Based on the data, outreach is increased and partnerships are pursued. To ensure a successful transition from pediatric to adult health care, OCSHCN works with the patient and their family to connect the patient with an adult health care provider prior to discharge from OCSHCN services at 21 years of age. OCSHCN partners with schools, state and local agencies and other community organizations, to encourage family centered decision-making, which leads to each child reaching his/her personal goals for the future. The transition administrator conducts regular follow-up calls to aged-out youth – of over 100 patients who have been contacted, 98% have successfully transitioned to adult health care providers. Clinical and Augmentative Services Program: Provides services to children with special needs under 21 years of age throughout the Commonwealth as authorized by KRS 200.460 - 200.499 and 902 KAR 4:100. Three new OCSHCN regulations became effective July 2019 and August 2019: Application to Clinical programs (911 KAR 1:010), Billing and fees (911 KAR 1:020) and Medical staff (911 KAR 1:060). The program provides preventative, diagnostic, and treatment services, which include: medical care; hospitalization; durable medical goods; care coordination/medical case management; therapy; transportation; and nutritional education. Diagnostic conditions eligible for direct service, care coordination/case management and/or financial assistance include: asthma (severe), autism spectrum disorder; cardiology, cerebral palsy; craniofacial anomalies, cleft lip & palate, cystic fibrosis, diabetes; hearing loss, hemophilia, neurology, ophthalmology, orthopedic, otology, rheumatology, scoliosis and spina bifida. The critical services provided enhances the quality of many children's lives enabling them to reach their full potential during their lives. • Hemophilia Program: Mandated by KRS 200.550 and KRS 200.560. It is a unique program that provides care for both children and adults with hemophilia and related bleeding disorders. This program is designed to assist those people who require continuing treatment with blood derivatives or a manufactured product to avoid debilitating effects and premium assistance toward health insurance for qualified patients. The program is operated through partnership with both University of Louisville and the University of Kentucky. Together they provide clinical services and systems of intervention and education in order to provide a safety net for this vulnerable population and improve the quality of life for those enrolled in the program across the Commonwealth. Foster Care: Provides children and youth safe and nurturing foster homes that cultivate trust and stability and provide for their health needs, as well as a service delivery system that supports access among our community's most vulnerable citizens, the children and youth who are medically complex and in foster care. Nurses stationed in child welfare offices (and those in regional OCSHCN offices) now convene individual health planning meetings and reviews, as well as conduct monthly home visits to approximately 140 medically complex children placed in out-of-home care throughout the state. Annually, over 1,500 visits are conducted by OCSHCN. Medical consultation is also available on behalf of any child in or at risk of placement in the child welfare system on an as-needed basis. - Early Hearing Detection and Intervention (EHDI) Program: Mandated by KRS 216.2970 with the goal of ensuring that infants diagnosed with permanent hearing loss receive timely and appropriate services, and thereby live a greater quality of life. It strives to ensure that all infants born in a Kentucky hospital (with at least 40 births annually) receive a physiologic hearing screening prior to discharge, and that the results of the screen are shared with the parents, physicians, and OCSHCN for tracking and follow-up purposes. The program is designed to assist families in obtaining diagnostic follow-up and early intervention in a timely manner. EHDI supports statewide screening for the early detection of hearing disorders and referral for follow-up treatment. The program has strong partnerships with Kentucky birthing hospitals, resulting in a consistently high hearing screening rate (98%) prior to discharge. ===== PAGE 244 ===== - First Steps Point of Entry (POE) for KIPDA Region: Serves as the Local Lead Agency in the KIPDA Region for Kentucky's Early Intervention System (KEIS). KEIS is mandated by 20 US Code Chapter 33: Education of Individuals with Disabilities, Part 303 (Part C) –Early Intervention Program for Infants and Toddlers with Disabilities the program serve children from birth to age three that have significant developmental delay or a specific medically established risk condition that is known to cause a developmental delay. The Department for Public Health, which serves as the state lead agency, funds the POE for the KIPDA region. The POE ensures access to core services, which include screenings; service coordination; evaluation and assessment; individualized family service plan development; and implementation of procedural safeguards. The EHDI program expanded the Early Childhood Hearing Outreach in Kentucky that distributed Otoacoustic Emissions equipment to Part 303 (Part C) –Early Intervention Program for Infants and Toddlers with Disabilities (First Steps) point of entry staff, and provided training in service delivery and EHDI reporting procedures. OCSHCN district offices receive direct referrals from First Steps for any child at risk of hearing loss who cannot be screened or who fails the screening provided by First Steps. ===== PAGE 245 =====
Health and Family Services Family Resource Centers and Volunteer Services
Health and family Services
Family Resource Centers and Volunteer Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation22,566,20026,578,20026,626,20026,512,20026,555,700
State Salary and Compensation Allocation56,300
Total General Fund22,622,50026,578,20026,626,20026,512,20026,555,700
Restricted Funds
Balance Forward5,18914,900
Current Receipts5,1899,7083,700
Non-Revenue Receipts(18,600)
Total Restricted Funds5,18914,897
Federal Fund
Balance Forward260,55690,903577,900
Current Receipts17,003,04212,865,17319,176,20012,568,00012,577,800
Total Federal Fund17,263,59812,956,07619,754,10012,568,00012,577,800
TOTAL SOURCE OF FUNDS39,891,28739,549,17346,380,30039,080,20039,133,500
EXPENDITURES BY CLASS
Personnel Costs3,996,8303,660,4123,879,7003,783,1003,836,400
Operating Expenses484,423522,015620,200665,200665,200
Grants Loans Benefits35,313,94234,773,93241,880,40034,631,90034,631,900
TOTAL EXPENDITURES39,795,19538,956,35946,380,30039,080,20039,133,500
EXPENDITURES BY FUND SOURCE
General Fund22,622,50026,578,20026,626,20026,512,20026,555,700
Federal Fund17,172,69512,378,15919,754,10012,568,00012,577,800
TOTAL EXPENDITURES39,795,19538,956,35946,380,30039,080,20039,133,500
EXPENDITURES BY UNIT
Family Resource and Youth Services
Center27,290,72826,021,00333,333,40026,069,90026,091,600
Serve Kentucky12,504,46812,935,35713,046,90013,010,30013,041,900
TOTAL EXPENDITURES39,795,19538,956,35946,380,30039,080,20039,133,500
The Department for Family Resource Centers and Volunteer Services is comprised of two separate programs: Family Resource and Youth Service Centers and Serve Kentucky. ## Policy The Governor's budget includes additional funding in the amount of $38,700 in fiscal year 2027 and $79,500 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 $32,500 and $66,800, respectively. ===== PAGE 246 =====
Health and Family Services Family Resource Centers and Volunteer Services Family Resource and Youth Services Center
Family Resource Centers and Volunteer Services Family Resource and Youth Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation21,575,60025,581,80025,585,10025,518,00025,539,700
State Salary and Compensation Allocation53,700
Total General Fund21,629,30025,581,80025,585,10025,518,00025,539,700
Restricted Funds
Balance Forward5,18914,900
Current Receipts5,1899,7083,700
Non-Revenue Receipts(18,600)
Total Restricted Funds5,18914,897
Federal Fund
Balance Forward65,45047,618275,700
Current Receipts5,643,595667,2857,472,600551,900551,900
Total Federal Fund5,709,045714,9037,748,300551,900551,900
TOTAL SOURCE OF FUNDS27,343,53426,311,60033,333,40026,069,90026,091,600
EXPENDITURES BY CLASS
Personnel Costs2,474,9632,417,0272,312,3002,243,7002,265,400
Operating Expenses244,207281,510335,800337,300337,300
Grants Loans Benefits24,571,55723,322,46630,685,30023,488,90023,488,900
TOTAL EXPENDITURES27,290,72826,021,00333,333,40026,069,90026,091,600
EXPENDITURES BY FUND SOURCE
General Fund21,629,30025,581,80025,585,10025,518,00025,539,700
Federal Fund5,661,428439,2037,748,300551,900551,900
TOTAL EXPENDITURES27,290,72826,021,00333,333,40026,069,90026,091,600
The Kentucky Education Reform Act (KERA) of 1990, KRS 156.496 and KRS 156.4977 as amended, created the Family Resource and Youth Services Centers (FRYSC). FRYSC provides technical assistance, as well as administrative and training support to the local school-based FRYSC. The primary goal of these centers is to enhance student ability to succeed in school by developing and sustaining partnerships that promote early learning and successful transition into school, academic achievement and well-being, graduation, and transition into adult life. Each center has a unique blend of program components depending on location, available services, local need, and community input designed to promote the flow of resources and support to families in ways that strengthen their functioning and further the growth and development of each member. Services may include after-school child care, literacy programs, home visits to new/expectant parents, referrals to social services, employment counseling, summer and part-time job development, drug/alcohol counseling, and family crisis and mental health counseling. Centers also offer programs such as peer mediation, conflict resolution, pregnancy prevention and job shadowing. There are currently 960 centers that include 503 family resource centers, 343 youth services centers, and 114 combined centers that serve a combination of elementary, middle and high school students. These centers serve approximately 1,200 schools and over 633,000 students and their families. In accordance with all appropriation bills since the Kentucky Education Reform Act was passed in 1990, the General Fund amounts for the FRYSC program are appropriated to the Kentucky Department of Education and transferred annually to the Cabinet for Health and Family Services, Department for Family Resource Centers and Volunteer Services, to be administered. ===== PAGE 247 ===== ## Policy The base budget in the Department of Education includes $48,660,500 in each year to be transferred to support Family Resource and Youth Services Centers. This has been the budgetary treatment since the 1990 Education Reform Act. ===== PAGE 248 =====
Health and Family Services Family Resource Centers and Volunteer Services Serve Kentucky
Family Resource Centers and Volunteer Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation990,600996,4001,041,100994,2001,016,000
State Salary and Compensation Allocation2,600
Total General Fund993,200996,4001,041,100994,2001,016,000
Federal Fund
Balance Forward195,10643,285302,200
Current Receipts11,359,44712,197,88811,703,60012,016,10012,025,900
Total Federal Fund11,554,55312,241,17312,005,80012,016,10012,025,900
TOTAL SOURCE OF FUNDS12,547,75313,237,57313,046,90013,010,30013,041,900
EXPENDITURES BY CLASS
Personnel Costs1,521,8671,243,3851,567,4001,539,4001,571,000
Operating Expenses240,216240,506284,400327,900327,900
Grants Loans Benefits10,742,38511,451,46611,195,10011,143,00011,143,000
TOTAL EXPENDITURES12,504,46812,935,35713,046,90013,010,30013,041,900
EXPENDITURES BY FUND SOURCE
General Fund993,200996,4001,041,100994,2001,016,000
Federal Fund11,511,26811,938,95712,005,80012,016,10012,025,900
TOTAL EXPENDITURES12,504,46812,935,35713,046,90013,010,30013,041,900
Serve Kentucky (formerly the Kentucky Commission on Community Volunteerism and Services or KCCVS) was created in 1994 to serve as a conduit for federal funds that support AmeriCorps programs in the Commonwealth, encourage and recognize volunteerism, and assist in service program development. The majority of federal funds received by Serve Kentucky are contracted to community organizations that, in turn, receive local matching funds, which include cash and in-kind services. AmeriCorps members serve faith-based and nonprofit organizations with critical educational, environmental and safety needs. Grant recipients include programs dedicated to efforts such as teaching and tutoring children, offering environmental education, combating homelessness, providing drug resistance education, and increasing food security. Since AmeriCorps began in 1994, more than 17,000 Kentuckys have served more than 26 million hours and have qualified for Segal AmeriCorps Educations Awards totaling more than $66 million. ===== PAGE 249 =====
Health and Family Services Community Based Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation661,125,300734,292,800735,637,100779,735,600805,672,000
State Salary and Compensation Allocation13,913,6001,600
Continuing Approp-General Fund14,780,9161,767,200
Budget Reduction-General Fund(14,837,900)
Other1,300,000
Total General Fund676,338,900749,073,716722,568,000779,735,600805,672,000
Tobacco Fund
Tobacco Settlement - Phase I12,400,00011,800,00011,500,00011,500,00011,500,000
Continuing Approp-Tob Settlement1,697,163
Total Tobacco Fund14,097,16311,800,00011,500,00011,500,00011,500,000
Restricted Funds
Balance Forward111,407,17762,331,4983,945,8005,300,000
Current Receipts146,635,110134,229,891254,556,400195,879,400201,452,700
Non-Revenue Receipts(46,840,980)(41,417,780)(19,599,900)(30,182,100)(30,182,100)
Total Restricted Funds211,201,308155,143,609238,902,300170,997,300171,270,600
Federal Fund
Balance Forward504,075(10,074,179)(2,323,600)
Current Receipts1,152,923,0581,023,383,535984,103,900934,453,100921,840,800
Non-Revenue Receipts26(26)
Total Federal Fund1,153,427,1591,013,309,330981,780,300934,453,100921,840,800
TOTAL SOURCE OF FUNDS2,055,064,5291,929,326,6551,954,750,6001,896,686,0001,910,283,400
EXPENDITURES BY CLASS
Personnel Costs689,603,018676,600,296710,683,600691,780,500705,395,600
Operating Expenses73,068,48969,137,22669,525,00072,911,30072,893,600
Grants Loans Benefits1,224,209,7861,179,078,7251,169,242,0001,131,994,2001,131,994,200
Debt Service1,145,000
TOTAL EXPENDITURES1,988,026,2941,924,816,2481,949,450,6001,896,686,0001,910,283,400
EXPENDITURES BY FUND SOURCE
General Fund661,557,984746,185,521722,568,000779,735,600805,672,000
Tobacco Fund14,097,16311,800,00011,500,00011,500,00011,500,000
Restricted Funds148,869,809151,197,786233,602,300170,997,300171,270,600
Federal Fund1,163,501,3381,015,632,940981,780,300934,453,100921,840,800
TOTAL EXPENDITURES1,988,026,2941,924,816,2481,949,450,6001,896,686,0001,910,283,400
EXPENDITURES BY UNIT
Family Support556,660,689615,300,828586,745,500586,645,100592,648,600
Energy66,573,73061,854,69060,000,00059,997,90059,998,900
Child Care500,671,188330,556,280336,617,700334,145,900334,264,900
Family and Community Services841,122,399891,603,136944,483,000892,486,600899,525,100
Guardianship22,998,28925,501,31421,604,40023,410,50023,845,900
TOTAL EXPENDITURES1,988,026,2941,924,816,2481,949,450,6001,896,686,0001,910,283,400
===== PAGE 250 ===== The Department for Community Based Services (DCBS) is responsible for administering the following programs: Family Support (includes eligibility determinations for Medicaid, Qualified Healthcare Program, the Children's Health Insurance Program and the Supplemental Nutrition Assistance Program (SNAP - formerly Food Stamps); the Child Care Assistance Program (CCAP); eligibility determination and benefits for the Temporary Assistance for Needy Families (TANF) and State Supplementation programs); Energy Assistance (LIHEAP); Child Care program; Family and Community Based Services program (includes Family Based Services, Adult Services and Alternatives for Children); and Guardianship program. These programs benefit Kentuckians who are without sufficient resources to meet their basic needs. DCBS's mission is to preserve the family as a unit when possible and protect individuals from abuse, neglect, and/or exploitation with safety and permanency as the paramount goals. DCBS also administers the state foster care and adoption systems, and recruits and trains parents to care for the state's children who are waiting for a safe, stable, and permanent home. Services provided by DCBS are administered through our network of nine geographical service regions and offices in each of Kentucky's 120 counties. In addition, DCBS utilizes a network of contracting officials to deliver services including the LIHEAP and Community Services Block Grant programs. The provision of services is enhanced through a close relationship and coordination with local community partners. The programs operate based on federal law and regulations issued by the United States Department of Health and Human Services and the United States Department of Agriculture. Supreme Court decisions, Kentucky Revised Statutes, Kentucky Administrative Regulations, state plans, and Court of Appeal decisions provide other regulatory guidance and oversight. ## Policy The Governor's budget includes additional funding in the amount of $9,643,800 in fiscal year 2027 and $19,879,400 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 $8,100,800 and $16,698,700, respectively. ===== PAGE 251 =====
Health and Family Services Community Based Services Family Support
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation216,311,000225,000,000211,315,800249,528,700268,794,300
State Salary and Compensation Allocation6,819,9001,600
Other(17,642,000)(7,187,949)
Budget Reduction-General Fund(6,599,100)
Total General Fund205,488,900217,812,051204,718,300249,528,700268,794,300
Restricted Funds
Balance Forward1,124,7074,575,342299,200
Current Receipts3,541,0692,442,3864,243,9002,504,1002,532,000
Non-Revenue Receipts20,603,93413,602,05727,109,70016,428,30016,428,300
Total Restricted Funds25,269,71020,619,78531,652,80018,932,40018,960,300
Federal Fund
Balance Forward54,993,35056,353,66857,364,800
Current Receipts331,837,739379,300,376293,009,600318,184,000304,894,000
Total Federal Fund386,831,089435,654,044350,374,400318,184,000304,894,000
TOTAL SOURCE OF FUNDS617,589,699674,085,880586,745,500586,645,100592,648,600
EXPENDITURES BY CLASS
Personnel Costs330,865,637315,253,845294,470,700288,346,200294,349,700
Operating Expenses32,823,63029,250,20030,119,90030,949,10030,949,100
Grants Loans Benefits192,971,421270,796,784262,154,900267,349,800267,349,800
TOTAL EXPENDITURES556,660,689615,300,829586,745,500586,645,100592,648,600
EXPENDITURES BY FUND SOURCE
General Fund205,488,900216,691,018204,718,300249,528,700268,794,300
Restricted Funds20,694,36820,320,53131,652,80018,932,40018,960,300
Federal Fund330,477,421378,289,280350,374,400318,184,000304,894,000
TOTAL EXPENDITURES556,660,689615,300,828586,745,500586,645,100592,648,600
The Division of Family Support (DFS) consists of the following programs: Temporary Assistance to Needy Families (TANF); Supplemental Nutrition Assistance Program (SNAP), formerly known as Food Stamps; eligibility determination for Medicaid and for health insurance premium assistance; and State Supplementation Program for persons who are aged, blind, or have a disability. The Division also provides direct eligibility services for the Simplified Assistance for the Elderly (SAFE), the Elderly Simplified Application Demonstration Project (ESAP), Transitional SNAP Benefits (TSNAP), the Kentucky Children's Health Insurance Program (K-CHIP) and medical assistance for guardianship cases. The programs administered by the DFS are designed to promote self-sufficiency, access job training and provide essential services for families and children in need of assistance and are accessible to all residents in all 120 Kentucky counties. Each local office has the responsibility to determine eligibility, provide facts and information on available benefits to interested individuals, offering services to meet the needs of working recipients, advising potential clients on the availability and coordination of benefits as well as the regulatory limitations of these benefits, and maintaining case record information. Applications can be made by the individual, their parent, statutory benefit payee, committee, guardian, power of attorney or authorized representative, as applicable. These programs operate in accordance with federal laws and regulations established by the United States Department of Health and Human Services and the United States Department of Agriculture. Additionally, regulatory guidance and oversight are provided by Supreme Court rulings, Kentucky Revised Statutes, Kentucky Administrative Regulations and state plans. ===== PAGE 252 ===== With the implementation of the new eligibility system in December 2015, the DFS established a program integrity branch. The staff within this section are responsible for resolving discrepancies from computer matches with federal and state interfaces as well as investigating national databases related to unreported income, prior fraud disqualifications, and conducting case reviews. The purpose of this section is to enhance efforts in identifying fraud and improving program accuracy rates. The legal authority for the program includes 921 KAR 3:010 through 3:100 (SNAP), KRS 205.520 (MA), KRS 205.245 (State Supplementation), and 921 KAR 2:006 through 2:520 (TANF) as well as the Food and Nutrition Act 2008 (PL 110-246), Title XIX of the Social Security Act in accordance with 20 C.F.R. 416.2099, Title XVI, and Title IV-A (AFDC). ## Temporary Assistance for Needy Families (TANF) The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193) amended and combined Title IV-A Aid for Families with Dependent Children (AFDC) and Title IV-F Job Opportunities and Basic Skills Training Program (JOBS) of the Social Security Act to provide block grants to states for TANF. These federal funds support the program's administrative and benefit expenditures that include personnel, operating, and indirect costs; contracts with partnering agencies; cash assistance subsidies; supportive services; child care; and transportation. The U.S. Department for Health and Human Services (DHHS) uses a formula-driven basis for determining each state's Maintenance of Effort based on fiscal year 1994 level of expenditures and work participation rates. The General Fund budgeted for fiscal year 2025 meets the DHHS Maintenance of Effort requirement of $71,913,000 per year. Kentucky TANF-funded programs are further specified by 921 KAR 2:006 through 2:520. The Kentucky Transitional Assistance Program (K-TAP) is the Commonwealth's cash assistance program for families with a dependent child who is deprived of parental support due to the continued absence, unemployment, incapacity, or death of one or both parents. Monthly payments are designed to help adults find a job or obtain training that leads to employment. Gross income must fall below the Gross Income Scale appropriate for the family's size, and total family resources cannot exceed agency limits. Receipt of cash assistance is limited to 60 months in a lifetime for adults who are required to participate in work activities as part of technical eligibility. The Kentucky Works Program (KWP) assists recipients with their transition into the workforce and achieving self-sufficiency. Adults receiving K-TAP benefits are required to participate in this program unless determined exempt and, with the assistance of a case manager, develop a Transitional Assistance Agreement (TAA) with the goal of moving off assistance and gaining self-sufficiency. KWP activities include employment, on-the-job training, work experience training programs, a job search/job readiness component, vocational training or other educational services, community service, high school completion for teen parents, and other activities necessary to prepare for employment. Referrals to providers of child care, along with supportive services such as car repairs, transportation assistance, and supplies ensure that individuals are able to take part in this program. Safety Net Services are available to former K-TAP families who lose cash assistance as a result of time limits or failure to comply with requirements of the KWP. Families with an income at or below 200 percent of the federal poverty level can access temporary benefits to meet basic needs such as shelter, food, clothing, or utilities. A total of $635 may be authorized for four months during a 12-month period. The Family Assistance Short Term (FAST) program provides an alternative for working families whom, though otherwise eligible, choose not to receive K-TAP cash assistance. A maximum of $2,600 is available to assist the family with immediate needs such as food, shelter, transportation. These benefits may be authorized for a three-month period. FAST was implemented in an effort to assist families, particularly low-income families, and former welfare clients, through difficult financial periods. FAST is designed to provide support to families who might otherwise have no alternative but to enroll, or return to, K-TAP cash assistance. The Kinship Care Program provides financial assistance and support services to non-parental relatives caring for children who would otherwise be placed in foster care due to abuse, neglect, or the death of both parents. Effective April 1, 2013, the Department for Community Based Services (DCBS) issued a moratorium impacting a child's initial eligibility for the Kinship Care Program; however, the moratorium did not apply to previously existing beneficiaries. A one-time relative placement support benefit and K-TAP are available to address a child's immediate and ongoing needs, respectively, upon placement by the DCBS with a qualified relative caregiver as an alternative to foster care. This program is administered in accordance with 922 KAR 1:130. Efforts to partner with local communities to achieve the goals of self-sufficiency, protection, and permanency for Kentucky's families continue. The flexibility of the TANF block grant has allowed the DCBS to pursue initiatives to address the needs of those striving to escape a life of dependency. ===== PAGE 253 ===== ## Medical Assistance DCBS determines eligibility for Medicaid program under a contract with the Department for Medicaid Services. The Medicaid program is authorized under Title XIX of the U.S. Social Security Act and KRS 205.520. Subsequent amendments to this act required federal/state funding to address medical care for persons receiving benefits for subsistence needs, those designated as categorically needy, and the medically indigent only. Currently, the categorically needy designation includes individuals who receive Supplemental Security Income (SSI) administered by the Social Security Administration; participants in the State Supplementation program for aged, blind, and disabled recipients; and low-income families meeting requirements for Modified Adjusted Gross Income Medicaid Aid to Families with Dependent Children (AFDC) State Plan in effect as of July 16, 1996. The Department provides eligibility determination services for health insurance premium assistance program via the state-based American Health Benefit Exchange (Kentucky Health Benefit Exchange) established in accordance with P.L. 111-148, as amended, and 42 U.S.C. 18031. ## State Supplementation The State Supplementation Program, authorized by KRS 205.245 and 921 KAR 2:015, provides financial support to aged, blind, or disabled individuals who have insufficient income to meet their needs in a licensed personal care home or family care home; acquire caretaker services designed to prevent institutionalization, or reside in a community-integrated private residence as an individual with serious mental illness. To be eligible, persons must meet the criteria of the Supplemental Security Income program related to age, blindness or disability as well as additional requirements associated with citizenship, Kentucky residency, enumeration, and special needs. There is also a $2,000 per individual ($3,000 per couple) limit on resources. State supplementation payment amounts are determined by subcontracting countable income from the standard of need living arrangement costs. ## Supplemental Nutrition Assistance Program (SNAP) The Supplemental Nutrition Assistance Program (SNAP), formerly known as Food Stamps, helps low-income persons purchase food for a nutritional diet. SNAP, authorized by the Food and Nutrition Act 2008 (PL 110-246) and 921 KAR 3:010 through 3:100 (SNAP), is designed to promote the general welfare and safeguard the health and well-being of the nation's population by raising nutritional levels among low-income households. SNAP benefits are a work support and serve as a stimulant to the economy. A household is defined as any individual, family, or group of people living with each other who buy and prepare food together. To qualify, each household must meet eligibility standards. The SNAP Employment and Training Program (E&T) is designed to assist SNAP recipients obtaining employment that leads to self-sufficiency. Able Bodied Adult Without Dependents (ABAWDs) must participate and comply with work requirements in order to maintain their SNAP eligibility. Participants needing assistance to comply can volunteer to be placed in an E&T component. Only ABAWDs residing in areas of the state that are waived from work requirements due to high unemployment rates can continue receiving SNAP benefits without meeting the work requirements. These designated areas are adjusted every year. ABAWDs living in counties not exempt will be required to meet work requirements and can choose to participate in the SNAP E&T program to meet the requirements. Additionally, other SNAP recipients can choose to participate in SNAP E&T in counties where services are available. ## Policy The budget includes additional General Fund in the amount of $43,500,000 in fiscal year 2027 and $58,000,000 in fiscal year 2028 to support the higher share of administrative costs of the Supplemental Nutrition Assistance Program (SNAP) that resulted from the U.S. Congress' passage of H.R. 1, shifting from 50 percent state share to 75 percent state share. The base budget in each fiscal year includes General Fund for the following programs: $1,000,000 to support the operations of the Family Scholar House. $12,000,000 to support reimbursement provided to personal care homes. ===== PAGE 254 =====
Health and Family Services Community Based Services Energy
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward5,209
Current Receipts(5,209)
Total Restricted Funds
Federal Fund
Balance Forward493,498629,111(1,464,200)
Current Receipts66,709,34359,761,41161,464,20059,997,90059,998,900
Total Federal Fund67,202,84160,390,52160,000,00059,997,90059,998,900
TOTAL SOURCE OF FUNDS67,202,84160,390,52160,000,00059,997,90059,998,900
EXPENDITURES BY CLASS
Personnel Costs118,06869,55956,40061,90062,900
Operating Expenses14,72317,08018,70024,10024,100
Grants Loans Benefits66,440,93861,768,05259,924,90059,911,90059,911,900
TOTAL EXPENDITURES66,573,73061,854,69060,000,00059,997,90059,998,900
EXPENDITURES BY FUND SOURCE
Federal Fund66,573,73061,854,69060,000,00059,997,90059,998,900
TOTAL EXPENDITURES66,573,73061,854,69060,000,00059,997,90059,998,900
The Low Income Home Energy Assistance Program (LIHEAP), authorized by PL 94-385 and 921 KAR 4:116, is a federally subsidized program that assists low-income households to meet the cost of energy expenses. Eligibility criteria include income that does not exceed 130 percent of the Federal Poverty Level (FPL), resources which total less than $2,000 except when a household member has a catastrophic illness, in which case applicants may have as much as $4,000 in liquid resources to be readily accessed on a regular basis for living and medical expenses, and the responsibility for home heating expenses. This program is divided into two components. The subsidy component operates in November and December to assist recipients with home heating costs for which they are responsible either by direct payment or as an undesignated portion of their rent. The crisis component operates from early January until the middle of March or until all funds are expended to assist eligible households experiencing a home energy emergency involving imminent loss of heating energy. Services include accepting applications, determining eligibility, implementing outreach components, and coordinating this program with other energy assistance initiatives. Extrapolations from the most recent census data report that over 537,000 Kentucky households are eligible for assistance based on income levels that do not exceed 130% FPL. Federal program rules also allow the use of a portion of the state's LIHEAP grant for the weatherization assistance program; a federally funded program to help low-income households meet the cost of energy expenses through energy conservation repairs to their homes. It is designed to reduce energy consumption, lower heating bills, and ensure the health and safety of those whose annual income is at or below 200 percent of FPL. Funds are provided to conduct energy audits, heat system safety tests and repairs, reduce air infiltration, install insulation, and perform other energy-related conservation measures. While a house is allowed to receive this assistance only one time, a dwelling may be re-weatherized if this service was provided prior to October 1, 1993. The weatherization assistance program was co-housed with LIHEAP in the DCBS energy budget until April 2009, when it was reorganized to the Finance and Administration Cabinet (FAC), where the Kentucky Housing Corporation (KHC) is designated to administer the program. During the 2024-2026 biennium, DCBS anticipates transfer of 15% of the state LIHEAP allocation to KHC for weatherization activities performed in accordance with a combination of LIHEAP and Department of Energy rules. The summer cooling program is only offered when additional federal or state funds are available. It provides eligible households with a one-time payment to the household cooling (electric) provider. Air conditioners may be provided for households where residents are at a risk for health problems associated with excess heat. ===== PAGE 255 =====
Health and Family Services
Community Based Services
Child Care
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation89,688,00051,000,00055,700,50053,350,50053,350,500
Continuing Approp-General Fund14,780,9161,767,200
Budget Reduction-General Fund(2,350,000)
Other(46,260,000)(7,813,696)
Total General Fund43,428,00057,967,22055,117,70053,350,50053,350,500
Tobacco Fund
Tobacco Settlement - Phase I9,900,0009,900,0009,500,0009,500,0009,500,000
Continuing Approp-Tob Settlement1,697,163
Total Tobacco Fund11,597,1639,900,0009,500,0009,500,0009,500,000
Restricted Funds
Balance Forward476,216482,497466,700
Current Receipts12,87915,9551,533,3001,309,0001,309,000
Total Restricted Funds489,095498,4522,000,0001,309,0001,309,000
Federal Fund
Balance Forward5,316,970(6,527,968)1,662,400
Current Receipts448,575,403272,614,817268,337,600269,986,400270,105,400
Total Federal Fund453,892,374266,086,849270,000,000269,986,400270,105,400
TOTAL SOURCE OF FUNDS509,406,632334,452,521336,617,700334,145,900334,264,900
EXPENDITURES BY CLASS
Personnel Costs25,887,28621,809,65414,410,30011,380,40011,517,100
Operating Expenses1,643,7361,963,6801,968,7001,997,0001,979,300
Grants Loans Benefits473,140,166306,782,946320,238,700320,768,500320,768,500
TOTAL EXPENDITURES500,671,188330,556,280336,617,700334,145,900334,264,900
EXPENDITURES BY FUND SOURCE
General Fund28,647,08456,200,05855,117,70053,350,50053,350,500
Tobacco Fund11,597,1639,900,0009,500,0009,500,0009,500,000
Restricted Funds6,59831,7652,000,0001,309,0001,309,000
Federal Fund460,420,342264,424,457270,000,000269,986,400270,105,400
TOTAL EXPENDITURES500,671,188330,556,280336,617,700334,145,900334,264,900
The Child Care Program administers the child care assistance subsidy program, the ALL STARS quality rating system, as well as a professional development framework for child care providers. The primary funding services for the program include the federal Child Care Development Fund, state General Fund and Tobacco Settlement-Phase I funds. The Child Care Development Fund (CCDF) was created by Congress in August 1996 as part of the federal welfare reform legislation. Child care services delivered through CCDF are designed to promote, expand, and improve the quality of care for children in Kentucky and ensure that families most in need are aware of and have access to available, quality child care which is developmentally appropriate, affordable, and safe. The Cabinet for Health and Family Services' approach to service delivery combines the efforts of Cabinet staff and other service providers to address a family's needs in a comprehensive fashion thereby maximizing the likelihood that a family will achieve positive outcomes. The Division of Child Care (DCC) serves Kentucky's most vulnerable children prioritizing children receiving child protective or preventive services, Temporary Assistance for Needy Families (TANF) recipients and persons transitioning off TANF, children with special needs, families experiencing homelessness, and teen parents. Children of low income working families are also eligible for child care assistance. ===== PAGE 256 ===== On November 19, 2014, the Child Care and Development Block Grant (CCDBG) Act of 2014 was signed into law at the federal level. This reauthorizes the child care program for the first time since 1996 and represents an historic re-envisioning of the CCDF program. The new law makes significant advancements by defining health and safety requirements for child care providers, outlining family-friendly eligibility policies, and ensuring parents and the general public have transparent information about the child care choices available to them. The sweeping changes of the Child Care and Development Block Grant and Kentucky's participation in the federally funded Preschool Development Grant provide Kentucky's Division of Child Care with the unique opportunity to realign the current system and advance quality child care in the state to meet the complex needs of Kentucky's poorest families. The originally unfunded mandated changes of the CCDBG Act of 2014 required additional funding in order to come into compliance with federal law. While some changes were straightforward to implement, others have been more complex, requiring additional time for planning and implementation. The Division of Child Care has successfully implemented the required changes, including the new background check requirements for childcare staff. Additional federal funding awarded to Kentucky in 2018 allowed for increases to the child care subsidy program and increased financial assistance with the federal background check program. CCDF reauthorization increased the minimum quality set-aside from 4% to 9% over a phase-in period of 5-years. Beginning FFY 2018, the quality set-aside increased to 8% of the aggregate funds expended by the Lead Agency for quality activities. These activities include childcare health and safety requirements, the tiered quality rating and improvement system, and early care and education professional development. The infant & toddler set-aside remains at least 3% of CCDF and must be spent on activities to improve the quality of care for infants and children. The 3% infant and toddler set-aside began in FY 2018 and is in addition to the 8% quality set-aside. The Child Care Assistance Program is one of the support services directed at: (1) eliminating barriers to work and education for parents; (2) strengthening and maintaining client families; (3) providing early educational opportunities for at-risk children; (4) preventing or remedying abuse, neglect or exploitation of children; (5) preventing family dissolution; and (6) preventing out of home placements. These services are provided by subsidized child care through the CCDF for full and part-day care by licensed providers, certified family child care homes and registered providers. Childcare services are intended to supplement, but not supplant, the parents' responsibility for the child's protection, development, and supervision. Children with special needs and child protective services are the top priority for the DCC. In addition, childcare is also used to support low-income working parents and TANF client's efforts to find and keep jobs and transition off public assistance. Licensed centers and homes, certified family childcare homes, and registered providers that meet enrollment requirements and health and safety guidelines are reimbursed for services at approved rates for eligible, enrolled families. Regulation and Monitoring of Child Care Providers: The Office of Inspector General (OIG), Division of Regulated Child Care ensures that licensed and certified childcare providers meet minimum health, safety, and quality standards. DCBS contracts with OIG to conduct on-site inspections, monitor, license center-based providers, and certify family childcare home providers. OIG is also contracted to investigate complaints against licensed and certified providers, as well as to conduct fraud investigations. KRS 199.8994 stipulates a targeted ratio of an individual caseload of 1:50 be maintained for continuation of quality services; however, the current average individual caseload is 1:80. Tiered Quality Rating and Improvement System: The Kentucky ALL STARS Program is part of Kentucky's Early Childhood Initiative and is a quality rating system that places major emphasis on raising the quality level of early care and education in childcare settings. This program is mandatory for child care centers and in-home programs that wish to receive child care subsidy funds. Kentucky ALL STARS monetary incentives and rewards are granted to childcare providers based on environmental scoring using identified characteristics associated with positive outcomes for children and families. These scores are also combined with a list of program standards in order to achieve a STARS rating of 1 to 5. Through the provision of technical assistance, providers work to achieve quality indicators in their Environmental Rating Scale. STARS Levels 2 through 5 surpasses the minimum licensing or certification requirements that all programs must meet per regulations. STARS Levels 3 through 5 are considered high-quality programs and can receive higher levels of reimbursement. Programs are assessed in the following areas: staff/child ratios, group size, curriculum, family involvement, training and education of staff, regulatory compliance, and personnel practices. As of June 2025 there were 47,089 children receiving subsidized child care with 41,374 (87.86%) enrolled in a STARS Rated facilities. As of June 2025 out of the 1,994 ALL STARS rated providers, 35% are considered at the high-quality with a rating between 3 and 5. Initiatives to promote the Kentucky ALL SIARS program are contracted with the University of Kentucky Human Development Institute. The University of Kentucky coordinates the Quality Enhancement Program with twenty-six Quality Coaches and four Technical Assistance Quality Consultants, to recruit, train, and provide technical assistance to providers when preparing to enter the program and throughout provider participation in the program. A total of thirteen STARS Raters conduct environment assessments on all participating programs. ===== PAGE 257 ===== The Professional Development System is also part of Kentucky's Early Childhood Initiative. The Division has put in place the "Kentucky Childhood Professional Development Framework" which addresses the needs for education, training and credentialing of early care professionals in Kentucky and represents a culmination of months of planning and input from multiple stakeholders across the state. The Framework identifies individual core competencies, credentials, scholarships, grants, awards and training criteria to early care and education professionals. Additionally, targeted quality set-asides under CCDF are being utilized to promote and improve the quality of infant/toddler training opportunities, enhance professional development activities, improve education in child care programs, improve staff and child interactions, increase parental involvement, and facilitate regulatory compliance to all child care programs. As of June 30, 2025, there were 2,826 active Director's Credentials, 721 Trainer's Credentials, and 438 active Commonwealth Child Care Credentials. During fiscal year 2025, 95,944 childcare provider/staff received early care and education training. Collaborative Efforts continue between the Division of Child Care and key stakeholders in order to ensure that outcomes will focus on continuing quality improvements in early learning environments. These efforts include partnerships with Head Start, the Department of Education, the Department for Public Health Division of Maternal and Child Health, Kentucky Out-of-School Alliance, Governor's Office of Early Childhood, and other government and quasi-government agencies that share the common goal of increasing professionalism in Early Care and Education, promoting quality care, and supporting early learning guidelines. Annual Training Requirements: Licensed Child Care Type I and II directors and staff are required to complete nine hours of cabinet-approved early care and education training within the first year of employment (after completing a six-hour state-mandates orientation to the childcare profession), including one and one-half hours of pediatric abusive head trauma training; and 15 hours of cabinet-approved early care and education training annually, including one and one half hours of pediatric head trauma training completed once every five years. Certified Family Child Care Home providers are required to complete nine hours of cabinet-approved early care and education training annually, including one and one-half hours of pediatric abusive head trauma training completed once every five years. ## Policy The base budget includes Tobacco Settlement Funds in the amount of $9,500,000 in each fiscal year for the Child Care program for the Kentucky ALL STARS program quality rating system, a federal requirement. These funds provide monetary incentives and rewards to childcare providers and are used as match for the federal funds received from the Child Care Development Grant. ===== PAGE 258 =====
Health and Family Services
Community Based Services
ActualActualRevisedRecommendedRecommended
FY 2024FY 2025FY 2026FY 2027FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation346,596,200450,121,100459,944,300468,154,100474,581,800
State Salary and Compensation Allocation6,552,500
Budget Reduction-General Fund(5,888,800)
Other63,902,00012,501,645
Total General Fund417,050,700462,622,745454,055,500468,154,100474,581,800
Tobacco Fund
Tobacco Settlement - Phase I2,500,0001,900,0002,000,0002,000,0002,000,000
Total Tobacco Fund2,500,0001,900,0002,000,0002,000,0002,000,000
Restricted Funds
Balance Forward106,005,86354,588,7122,026,9005,300,000
Current Receipts141,572,948130,377,732247,085,000190,066,300195,611,700
Non-Revenue Receipts(66,137,119)(54,943,129)(46,709,600)(46,610,400)(46,610,400)
Total Restricted Funds181,441,692130,023,315202,402,300148,755,900149,001,300
Federal Fund
Balance Forward(59,316,367)(59,925,468)(59,748,400)
Current Receipts294,109,591299,261,045351,073,600273,576,600273,942,000
Non-Revenue Receipts26(26)
Total Federal Fund234,793,250239,335,551291,325,200273,576,600273,942,000
TOTAL SOURCE OF FUNDS835,785,643833,881,611949,783,000892,486,600899,525,100
EXPENDITURES BY CLASS
Personnel Costs311,566,794317,057,628385,021,700373,988,000381,026,500
Operating Expenses36,942,23934,915,09332,834,10034,918,20034,918,200
Grants Loans Benefits491,468,366539,630,414526,627,200483,580,400483,580,400
Debt Service1,145,000
TOTAL EXPENDITURES841,122,399891,603,135944,483,000892,486,600899,525,100
EXPENDITURES BY FUND SOURCE
General Fund417,050,700462,622,745454,055,500468,154,100474,581,800
Tobacco Fund2,500,0001,900,0002,000,0002,000,0002,000,000
Restricted Funds126,852,981127,996,398197,102,300148,755,900149,001,300
Federal Fund294,718,718299,083,992291,325,200273,576,600273,942,000
TOTAL EXPENDITURES841,122,399891,603,136944,483,000892,486,600899,525,100
Family and Community Services are designed to provide maximum support to a family at the time of crisis to prevent the disruption of the family unit and to protect individuals from abuse, neglect, and exploitation with safety and permanency as the paramount goals. The subprograms contained in Family and Community Services are Family Based Services, Adult Services, and Alternatives for Children. The legal authority for the program is in KRS Chapters 199, 200, 209 (Adult Protection), and 600-645, and in Titles IV, XIX and XX of the Social Security Act. ===== PAGE 259 ===== Family Based Services include child protection; reunification following out-of-home placement; home safety services; preventative services for families; community-based juvenile services; family preservation services; mental health services through contracts with local comprehensive care centers; self-help services provided through local child abuse councils; and preventative assistance. These services are provided in order to preserve the family unit while keeping safety of all family members as the primary goal. Child Protective Services are specialized services aimed at safeguarding the rights and welfare of abused, neglected or dependent children; aiding parents or other persons responsible for the care, custody or supervision of children in recognizing and remedying conditions detrimental to the welfare of their children; and identifying conditions that contribute to the neglect, abuse, or dependency of children. Child Protective Services are both preventive and corrective in nature. This includes intake/investigation of reports of neglect, abuse, or dependency and the provision of treatment to those families in need. DCBS staff provides direct in-home services as well as serving in a case manager role and networking community resources. DCBS is mandated to receive and investigate reports of the abuse or neglect of children. Home Safety Services provide in-home support that prevents the disruption of a family unit or expedites the return of the child by helping parents with general homemaker skills, role modeling, parenting skills, assistance in daily living skills, and direction in utilizing community services. Preventive Services to families, who do not qualify for services under other program areas, address a family's treatment and access needs before the situation has escalated to become abusive or neglectful. Prevention services also serve to strengthen communities and promote stability and sustainability, with the goal of preventing family separations and poor family outcomes. Family Preservation provides crisis intervention and intensive (5-20 hours per week) in-home services to families who have children at imminent risk of removal from their home. Family Reunification Services, which follow the same basic model with less intensive in-home services over a longer duration (up to 6 months), facilitate the successful return of children to the home and decrease the likelihood of repeated child placements. Through implementation of The Family First Prevention Services Act (FFPSA) of 2018, Kentucky is in the process of expanding its Sobriety Treatment and Recovery Teams (START) and Kentucky Strengthening and Empowering Parents (KSTEP) programs. Along with FPP, these programs work with families to mitigate issues when a child is at imminent risk for removal. Kentucky is also in the process of re-implementing High Fidelity Wrap Around services to provide intensive services to both children and families who are at risk for family separation. The advent of FFPSA adds prevention services to Title IV-E of the Social Security Act, which was previously exclusive to adoption and foster care. In addition to the tertiary prevention services, the Division for Prevention and Community Wellbeing also provides primary and secondary prevention services. These services include Parent Engagement Meetings and other hands-on and in-home services through the Community-Based Child Abuse Prevention (CBCAP) and Community Collaboration for Children (CCC) grants and provide child abuse prevention awareness and outreach during Child Abuse Prevention month and throughout the year. Kentucky remains committed to prevention services and continues to expand partnerships with national and local organizations that share our mission and goals. Self-Help Groups provide support and education for parents in crisis or at risk of further abuse or neglect of children. Juvenile Services in the community provide an array of preventive and treatment services for children adjudicated as status offenders under KRS 630. Because status offender behaviors such as running away from home, being beyond parental control and truancy are most often indicative of prior abuse or neglect of the child, services are targeted at prevention of further abuse or neglect and interventions to curb the child's negative behaviors. Appropriate services may be provided directly by DCBS or arranged through local mental health centers, Family Resource and Youth Service Centers, community partnerships, private child care agencies, and/or other private providers in the community. Children's advocacy centers provide services to victims of child sexual abuse and their non-offending caregivers. Adult Services includes protection and self-support. Adult services are directed toward preserving the vulnerable individual's independence to the maximum degree possible and protecting him/her from abuse, neglect or exploitation pursuant to KRS 209. The elements of adult services are: adult protection; adult home safety services which is the direct provision of home safety services to adults at risk or in need of protections; Alternate care (also called placement and movement) which involves assisting individuals with appropriate community and institutional placements; Preventive services for adults which entails assessment, planning, and guidance. Services often involves securing food, shelter, clothing, and medical treatment. Adult Self-Support includes the Community Services Block Grant, which provides funding for emergency needs of economically disadvantaged citizens. This program helps to alleviate the stresses on the family unit resulting from poverty while promoting self-sufficiency. ===== PAGE 260 ===== Pursuant to KRS 209, any person, including but not limited to a physician, law enforcement officer, nurse, social worker, Cabinet personnel, coroner medical examiner, alternate care facility employee, or caretaker, having reasonable cause to suspect that an adult who because of mental or physical dysfunction is being abused, neglected or exploited, shall report or cause reports to be made to the CHFS. DCBS is required to investigate the reports, notify local law enforcement officials, offer appropriate protection and support services, and maintain case records. DCBS is involved in placement and movement of individuals into, between, and out of facilities. Placement and Movement denotes assistance provided to Medicaid eligible individuals. Alternate Care services denotes assistance to non-Medicaid eligible individuals. Approximately 56,000 Kentuckians need alternate care or placement and movement services each year. The majority of these individuals have family or friends to assist them in finding alternate living arrangements. The Department assists those individuals who are not able to locate appropriate placements. Alternate Care Services help ensure that persons are not inappropriately placed in a level of care exceeding their need and thus promotes cost effectiveness. These services also help ensure that persons assisted receive the care they require. DCBS is involved in the completion of court ordered guardianship assessments (interdisciplinary team reports) pursuant to KRS 387. These assessments are completed by qualified DCBS employees. The employee submits the assessment to the court and testifies in a guardianship hearing. Domestic violence shelter services are available in each of the 15 Area Development Districts under a contract between DCBS and ZeroV (formerly Kentucky Coalition Against Domestic Violence). A portion of the marriage license fee as authorized by KRS 209A.045 provides part of the funding for this element. Rape crisis centers services are available throughout the state and are provided under a contract with the Kentucky Association of Sexual Assault Programs (KASAP), which is the statewide coalition of Rape Crisis Centers. Batterer Intervention Program (BIP) providers are mental health professionals meeting certification standards specified by DCBS who provide services to domestic violence batterers. Alternatives for Children provides placement resources for children who have been or are at risk of being abused or neglected. Services are directed toward finding substitute care for children who must live apart from their family, working toward reuniting the child and family, and if that is not possible, securing an alternative living arrangement which will provide permanency for the child. The legal authority includes KRS Chapters 199; 600; and 620; Titles IV-B and IV-E of the Social Security Act; and the Social Services Block Grant. The trauma of childhood abuse or neglect often leads to emotional and behavioral problems that are difficult to manage. In recent years an increasing proportion of children have had more severe problems which require more specialized treatment services (such as mental health, intellectual and/or developmental disabilities, or sexual abuse) and medical care that, in turn, has added to the cost of care. Adoption provides permanent families for children who cannot return home. Family Foster Care provides a planned, goal-directed service in which the care of children and youth takes place in the home of an agency-approved family. Its value is the ability to respond to the unique, individual needs of infants, children, youth, and their families through the strength of family living, as well as family and community supports. The goal of family foster care is to provide opportunities for healing, growth, and development leading to healthier children and families with safe and nurturing relationships intended to be permanent. Effective June 27, 2019, DCBS implemented KRS 620.142 to assist relatives and/or fictive kin caregivers of abused, neglected, or dependent children. Relative or Fictive Kin Placement is used as an alternative to foster care via a prevention plan or through temporary or permanent custody, given by the court to the relative or CHFS. This placement requires criminal background checks on all adult household members; home evaluations; 1.5 hours training regarding pediatric abusive head trauma (if child is five years of age or younger); monthly home visits to caregiver's home; and guardian ad litem services. At this time, all placements which qualify and meet DCBS guidelines are eligible for monthly stipends paid with general fund. These caregivers may also qualify for those services received by foster parents. The department provides case management activities that seek to utilize a least restrictive placement, assist parent/caretakers in reunifying with their child(ren), providing supportive services to the relative and achieving alternative permanency for the child if reunification is not possible. If CHFS is granted custody of the child, all applicable out of home care standard of practices (SOPs) are utilized. If the child is placed on a prevention plan with a relative or in the custody of the relative, in home SOPs are applicable. Fictive kin are individuals who are not related to a child by birth, marriage, or adoption but who has an emotionally significant relationship with the child, or an emotionally significant relationship with a biological parent, siblings, or half-siblings of the child in the case of a child from birth to twelve (12) months of age, prior to placement and may be utilized when a child is removed from their home of origin and when no family members or relatives are identified as an appropriate placement option for a child. ===== PAGE 261 ===== Kentucky has implemented the Title IV-E Guardianship Assistance Program (GAP). This program supports states, who opt to provide guardianship assistance payments for the care of children by relatives who have assumed legal guardianship of eligible children for whom they previously cared as foster parents. This will be a transformative program for Kentucky to increase placement and support to relatives, increase a child's timeliness to permanency, and support long term stability for youth. Additional funding is needed to support the program long term. Independent Living services are specialized services designed to enhance the self-sufficiency skills of older children currently or formerly in foster care, private child care, and other state funded living arrangements. Services are provided both directly by staff and by contract agencies. Services include formal classroom and experiential life skills trainings; room and board assistance for aged-out youth 18-21 years of age; educational assistance for post-secondary education; the opportunity to both mentor and be mentored on post-secondary campuses and in the community; transitional planning; and provision of youth conferences. The loss of the Independent Living services would result in children leaving the foster care system unprepared to enter the world as productive, tax-paying adults. Rather is the likelihood they would enter the criminal, homeless, or adult services population increasing the poverty in Kentucky. Private Child Caring/Child Placing services and emergency shelter services are essential components of a protective service program that provides temporary placement services for children who are unable to remain in their own homes because of severe abuse, neglect, exploitation, abandonment, or because they have specialized treatment needs. Adoption is the legal process by which a child becomes a legal child of a person or persons other than his/her biological parents. It is a complex social and emotional experience that ensures permanency and well-being for children. DCBS provides services prior to adoption in order to bring children and families together and services after adoption to provide support to the family structure. Intensive Family Based Services (IFBSS) are cost-effective, home-based alternatives to institutionalization for children who are dually diagnosed. Services are provided through contracts with local comprehensive care centers or other appropriate contractors. These services are designed to meet the needs of individual children and his/her families and may include, but are not limited to, in-home services, family therapy, respite care, behavior management and consultation, and individual counseling. Psychiatric services provide 24-hour care to DCBS committed children and youth with behavioral health or mental health issues. Services are provided by various psychiatric hospitals and psychiatric residential treatment facilities throughout Kentucky. ## Policy The budget includes additional General Fund in the amount of $14,600,000 in each fiscal year to fully fund the Relative and Fictive kin foster care reimbursements passed, but not funded, in the 2024 Regular Session through Senate Bill 151, and codified at KRS 620.142. The budget includes additional General Fund in the amount of $22,000,000 in each fiscal year to continue providing services for children in out-of-home-care. These funds are partially replacing TANF grant funds previously used for out-of-home care services. The budget includes additional General Fund in the amount of $2,000,000 for a total of $8,000,000 in each fiscal year to support direct service costs for Domestic Violence Shelters. The base budget in each fiscal year includes General Fund for the following programs: $1,000,000 for Relative Placement Support Benefit; $50,000 to provide forensic interviews, family counseling, and trauma remediation serving Jefferson County and surrounding Kentucky counties; $1,350,000 for Maryhurst to provide reimbursement rate increase for children in the 5 Specialized Program. $500,000 for the Fostering Success Program; $2,000,000 for independent living supports to children aging out of the foster care system; $2,000,000 for Rape Crisis Centers; $5,500,000 for Child Advocacy Centers; $500,000 to support the operations of the Volunteers of America - Family Recovery Court; and $375,000 to support the operations of the Seven Counties Services through the Jefferson County Recovery Court to assist families involved with the child welfare system. The base budget includes Tobacco Settlement Funds in the amount of $2,000,000 in each fiscal year for the Early Childhood Adoption and Foster Care Supports Program. ===== PAGE 262 =====
Health and Family Services Community Based Services Guardianship
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation8,530,1008,171,7008,676,5008,702,3008,945,400
State Salary and Compensation Allocation541,200
Other1,300,0002,500,000
Total General Fund10,371,30010,671,7008,676,5008,702,3008,945,400
Restricted Funds
Balance Forward3,795,1812,684,9481,153,000
Current Receipts1,513,4241,393,8181,694,2002,000,0002,000,000
Non-Revenue Receipts(1,307,795)(76,708)
Total Restricted Funds4,000,8104,002,0572,847,2002,000,0002,000,000
Federal Fund
Balance Forward(983,376)(603,522)(138,200)
Current Receipts11,690,98012,445,88610,218,90012,708,20012,900,500
Total Federal Fund10,707,60511,842,36410,080,70012,708,20012,900,500
TOTAL SOURCE OF FUNDS25,079,71526,516,12221,604,40023,410,50023,845,900
EXPENDITURES BY CLASS
Personnel Costs21,165,23322,409,61016,724,50018,004,00018,439,400
Operating Expenses1,644,1622,991,1744,583,6005,022,9005,022,900
Grants Loans Benefits188,895100,530296,300383,600383,600
TOTAL EXPENDITURES22,998,28925,501,31421,604,40023,410,50023,845,900
EXPENDITURES BY FUND SOURCE
General Fund10,371,30010,671,7008,676,5008,702,3008,945,400
Restricted Funds1,315,8632,849,0932,847,2002,000,0002,000,000
Federal Fund11,311,12611,980,52110,080,70012,708,20012,900,500
TOTAL EXPENDITURES22,998,28925,501,31421,604,40023,410,50023,845,900
Kentucky's Guardianship Program is administered by the Department for Community Based Services, Division of Guardianship in the Cabinet for Health and Family Services as authorized in KRS 210.290 and KRS 387.500-387.910. Individuals are served by offices in all regions of the state. In Kentucky, guardianship is a legal relationship between a court-appointed adult who assumes the role of guardian for a ward. A ward is a person who has been declared legally disabled by the court and is no longer able to care for his or her personal and/or financial needs. A guardian may be a friend or family member who is willing to care for the disabled individual. If there is no one willing to assume guardianship for the disabled person, the court will appoint the Cabinet for Health and Family Services as the state guardian. The duties of the state guardian include: • Full Guardianship/Full Conservator – The Cabinet is responsible for the personal and financial needs of the ward. A court has found the ward fully disabled and all personal and financial rights are removed except the right to vote. The judge decides whether or not a ward retains the right to vote. Personal Guardian – A court finds the ward fully disabled in his/her personal affairs and appoints a personal guardian who is responsible for only personal affairs of the ward. • Conservator – A court finds the ward fully disabled in managing his/her financial affairs and appoints a conservator who is responsible for financial or fiduciary affairs of the the ward. ===== PAGE 263 ===== • Limited Guardian – A limited guardian may be appointed if the disabled person is declared partially disabled and can manage some personal needs but may need assistance with others. In this case, the court will also decide which civil rights the person can retain and which are given to the guardian. These may include the right to vote, the right to drive a car, the right to make medical decisions and the right to determine where to live. • Limited Conservator – A limited conservator may be appointed if the disabled person only needs help with managing some financial or fiduciary affairs. In this case, the court will also decide which civil rights the person can retain and which are given to the conservator. These may include the right to sell property and the right to sign legal documents such as checks, marriage licenses, or wills. ===== PAGE 264 =====
Health and Family Services Aging and Independent Living
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation39,373,40051,058,70051,124,80058,026,10058,202,400
State Salary and Compensation Allocation272,900
Budget Reduction-General Fund(1,233,700)
Other(1,300,000)9,100,000
Total General Fund38,346,30051,058,70058,991,10058,026,10058,202,400
Restricted Funds
Balance Forward1,284,9851,910,4341,776,5001,226,500620,300
Current Receipts1,452,861540,9541,322,3001,321,6001,312,000
Non-Revenue Receipts475,763628,5782,250,0002,194,5002,190,000
Total Restricted Funds3,213,6083,079,9655,348,8004,742,6004,122,300
Federal Fund
Balance Forward(350,077)(4,236,234)(91,300)
Current Receipts51,364,11642,800,44538,599,30038,575,70038,625,600
Total Federal Fund51,014,03938,564,21138,508,00038,575,70038,625,600
TOTAL SOURCE OF FUNDS92,573,94892,702,876102,847,900101,344,400100,950,300
EXPENDITURES BY CLASS
Personnel Costs8,228,8059,721,22011,946,60011,501,90011,727,700
Operating Expenses1,813,0751,325,1431,305,3001,079,9001,079,900
Grants Loans Benefits84,857,86879,971,33788,369,50088,142,30088,142,700
TOTAL EXPENDITURES94,899,74891,017,700101,621,400100,724,100100,950,300
EXPENDITURES BY FUND SOURCE
General Fund38,346,30051,058,70058,991,10058,026,10058,202,400
Restricted Funds1,303,1751,303,5004,122,3004,122,3004,122,300
Federal Fund55,250,27338,655,50038,508,00038,575,70038,625,600
TOTAL EXPENDITURES94,899,74891,017,700101,621,400100,724,100100,950,300
EXPENDITURES BY UNIT
Aging and Independent Living94,899,74891,017,700101,621,400100,724,100100,950,300
TOTAL EXPENDITURES94,899,74891,017,700101,621,400100,724,100100,950,300
The Department for Aging and Independent Living (DAIL) sets policies and oversees programs and services on behalf of Kentucky's elders and individuals with disabilities. The aging programs benefit Kentucky's young and冉冉而起的}}}{ sustaining families and improving the quality of life through an array of community-based services designed to help older persons and individuals with disabilities to be as independent as possible in the least restrictive environment. DAIL programs also provide counseling and support services to family caregivers to enable them to provide quality care to older persons while fulfilling other family and employment responsibilities. In carrying out its programs, DAIL emphasizes successful aging; independent living; planning for an aging society; and continued involvement of older persons, and disabled individuals in every aspect of the community. ===== PAGE 265 ===== The Department for Aging and Independent Living is designated as the State Unit on Aging by the Federal Administration on Aging. In accordance with the Older Americans Act Amendments of 1965 as amended through March 2020 and 45 CFR 1321. The Aging and Independent Living program is responsible for aging issues on behalf of all older persons in Kentucky. It is required to carry out a wide range of functions related to service delivery, advocacy, planning, coordination, interagency linkages, information-sharing, community preparedness, brokering, and evaluation. These functions are intended to focus on the development or enhancement of comprehensive and coordinated community-based service systems designed to help elderly and physically disabled adult Kentuckians maintain independence and dignity in their own homes and communities. This focus on community-based alternatives is consistent with Kentucky's plan developed in response to the Supreme Court's Olmstead decision and the State Plan on Aging. The Aging and Independent Living program administers statewide services; develops the State Plan on Aging; allocates funds to the 15 Area Agencies on Aging and Independent Living (AAAIL) and approves AAAIL program plans, amendments, budgets, and contracts for local provision of aging and physical disabilities services. It provides education, training, benefits counseling, information and assistance to respond to the needs of older Kentuckians and those with physical disabilities. The services administered to achieve these goals include: Title III Older Americans Act Nutritional Services provided through agreements with the AAAIL's include the Nutritional Services Incentive Program: For persons age 60 years and older, provides congregate meals at senior centers and home-delivered meals to the homebound elderly in each Kentucky county. Senior Community Service Employment Program (Older Americans Act Title V): Employs persons age 55 years and older who have incomes at or below 125% of the poverty level in part-time non-profit community work, such as senior citizens centers, with the goal of skill development and eventual placement in unsubsidized employment. - State Health Insurance Assistance Program (SHIP): (Section 4360 OBRA 1990, PL 101-508) provides benefits counseling and application assistance to Medicare eligible persons and those likely to be eligible for the Low-Income subsidy program, Medicare savings program, and Medicare Part D prescription drug program. Long-Term Care Ombudsman Program (Older Americans Act Title IIC, 910 KAR 1:210): receives and investigates all complaints from residents of nursing homes and personal care homes in Kentucky. Collects and analyzes data related to complaints and conditions in long-term care facilities to identify and resolve problems and submits information to appropriate licensing agencies to ensure compliance with regulations. Aging and Disability Resource Center (ADRC): (Sec 1110 SS Act and 42 USC 3031-30378) provides a single point of entry to all long-term services and supports with the goal to empower individuals to make informed choices and streamline access to services. - Older Americans Act In-Home Services (KRS 205.460, 910 KAR 1:170 - 180): Provides in-home services to persons 60 years and older who have functional or physical limitations and are at risk of institutionalization. Services include personal care, home health aide, home-repairs, and respite. • Homecare Program (910 KAR 1:180): This program is offered statewide through the AAAILs and provides supports and services for daily needs as well as coordination among caregivers and provider agencies to help adults at risk of institutional care remain in their own homes. • Hart Supported Living (KRS 210.770-795): This program provides grants for a broad category of flexible, individualized services that, when combined with natural unpaid or other eligible paid supports, provide the necessary assistance to: enable a disabled person to live in a home of the person's choice, typical of those living arrangements for persons without disabilities; encourages integrated participation in the community; promotes rights and autonomy; enhances the skills and competencies in living in the community; and enables the acceptance in the community by promoting home ownership or leasing arrangements. Personal Care Attendant Program (PCAP) (KRS 205.900): A state funded program that provides personal care assistant services to adults with severe physical disabilities, who have functional loss of two or more limbs and need services to prevent institutionalization or to leave an institutional setting. Kentucky Family Caregiver Program (910 KAR 1:260): Supports grandparents, of any age, who are primary full-time caregivers for a grandchild no older than 18 years of age. Services include information and assistance, counseling, support groups, and training. Provides financial assistance in the form of a voucher to be utilized for the child's safety, stability, and welfare. To the extent funds are available, the maximum total assistance shall be up to $500 per grandchild in any one fiscal year. National Family Caregiver Support Program: A federally funded program serving family and informal caregivers who provide care to people 60 years and older or an individual of any age with Alzheimer's or a related diagnosis, as well as grandparents and other relatives 55 years and older who provide care to children up to age 19. Services include information and assistance, counseling, support groups, training, respite, and limited financial assistance. ===== PAGE 266 ===== Traumatic Brain Injury (TBI) Trust Fund Program (KRS 211.476, KRS 42.320): A state program that provides services to assist children and adults with brain injuries to maintain living in the community. The TBI Trust Fund Program is a funding source of last resort for Kentucky residents. The TBI Trust Fund draws funds primarily from court fees, traffic school fees, and DUI service fees. The fund can also accept contributions and grants. The program is overseen by a board of directors to ensure that individuals with a brain injury and their families are provided services and supports to promote independence and personal productivity. Traumatic Brain Injury Behavioral Program (KRS 189A.050 and KRS 42.320): This program is funded through DUI fees and serves individuals who are in need of intense neurobehavioral services that are not available in Kentucky and are placed out-of-state. • Alzheimer's disease and Related Advisory Council (KRS 194.600-609): This governor-appointed council oversees information and resources related to policy and services affecting the sixty thousand (60,000) residents of Kentucky with dementia, and the caregivers and families of the residents. • Health Promotion/Disease Preventive: Provides disease prevention, education and assistance in training and care of elderly Kentuckians on health-related issues. • Supportive Services: For persons aged 60 years and older, that includes: assessment/case management; transportation; escort to medical facilities, stores and other service delivery points; information assistance and referral; health promotion; visiting and telephone reassurance; legal assistance; counseling; education; advocacy; respite; preventive health services; elder abuse prevention programs; supportive services for families of elderly victims of Alzheimer's and related disorders. Home and Community Based Waiver (HCB): The HCB Waiver is part of Kentucky's Medicaid program designed to support individuals who are elderly or have physical disabilities. It aims to help them maintain their independence and avoid institutionalization by providing a range of services tailored to their needs. DAIL is contracted by the Department for Medicaid Services to serve as the operating agency preforming day to day oversight of the program including certification and monitoring of waiver providers. Participant Directed Services (PDS): Allows people eligible for services through Medicaid waiver services to choose his/her own providers for nonmedical waiver services. Provider choice gives members greater flexibility in the delivery of services received. Kentucky Medicaid members may participate if he/she currently receives or are eligible for services through the: Home and Community Based Waiver; Supports for Community Living Waiver; Acquired Brain Injury Acute Waiver; Long-Term Care Brain Injury Waiver; or the Michelle P Waiver. Office of Dementia Services (ODS) (KRS 194A.601): created by SB74 in 2021, the Office of Dementia Services is Kentucky's first state entity dedicated to supporting the more than 81,000 Kentuckyan living with dementia and over 400,000 unpaid caregivers who provide 307 million hours of care annually. Led by the Dementia Coordinator, ODS develops and implements the Kentucky Alzheimer's and Related Dementias State Plan, manages the Alzheimer's Disease and Related Disorders Advisory Council, advances dementia-specific training, and builds programs that improve quality of life for those impacted by dementia. • Centers for Independent Living (CILs) are consumer-controlled, community-based, cross disability, nonresidential, private nonprofit agencies, designed and operated within a local community by individuals with disabilities. CILs assist people with disabilities to achieve their full potential for community inclusion through improving access, choice, and equal opportunity. DAIL distributes federal grant funding to two CILs with 4 satellite locations in Kentucky to provide independent living services in accordance with the State Plan on Independent Living. DAIL also partners with the Statewide Independent Living Council (SILC) to develop, monitor, and review a state plan and support the statewide network of independent living centers. • Programs of All-Inclusive Care for the Elderly (PACE): Provides individuals the ability to live in their own home by offering needed services and supports. When an individual enrolls in PACE, the PACE organization becomes their sole source of services. PACE organizations develop a team that coordinates and/or delivers an individual's preventive, acute, and long-term care needs. DAIL is contracted by the Department for Medicaid Services to serve as the operating agency preforming day to day oversight of the program. ## Policy The budget includes additional General Fund in the amount of $9,100,000 in each fiscal year to continue providing nutritional meals to senior citizens in the community with the goal of not having a waitlist. The Governor's budget includes additional funding in the amount of $156,000 in fiscal year 2027 and $320,300 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 $121,700 and $249,800, respectively. ===== PAGE 267 ===== Justice and Public Safety ===== PAGE 268 =====
Justice and Public Safety
Justice and Public Safety
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,190,244,6001,264,243,6001,340,412,3001,291,310,2001,324,796,100
State Salary and Compensation Allocation26,325,500403,500683,400
Special Appropriation50,900,000
Continuing Approp-General Fund5,032,1762,065,7392,065,000
Budget Reduction-General Fund(27,738,700)
Total General Fund1,272,502,2761,266,712,8391,315,422,0001,291,310,2001,324,796,100
Tobacco Fund
Tobacco Settlement - Phase I3,250,0003,037,5003,250,0003,250,0003,250,000
Continuing Approp-Tob Settlement4,227,3432,061,3391,658,200
Total Tobacco Fund7,477,3435,098,8394,908,2003,250,0003,250,000
Restricted Funds
Balance Forward161,304,427179,515,369193,987,700157,751,500140,644,100
Current Receipts56,764,23956,045,20752,893,00052,357,40049,310,500
Non-Revenue Receipts129,821,279134,834,031108,124,600184,884,400173,611,100
Fund Transfers(2,057,000)(2,301,000)(2,301,000)(2,368,000)(2,368,000)
Total Restricted Funds345,832,945368,093,607352,704,300392,625,300361,197,700
Federal Fund
Balance Forward(10,679,128)163,6981,298,5003,112,3002,299,000
Current Receipts78,121,09880,356,15674,628,70071,704,70071,646,000
Non-Revenue Receipts9,088,348(151,678)(38,500)
Total Federal Fund76,530,31980,368,17675,888,70074,817,00073,945,000
Road Fund
Regular Appropriation59,262,50056,289,60056,372,70055,570,30057,914,800
State Salary and Compensation Allocation112,900
Total Road Fund59,375,40056,289,60056,372,70055,570,30057,914,800
TOTAL SOURCE OF FUNDS1,761,718,2831,776,563,0611,805,295,9001,817,572,8001,821,103,600
EXPENDITURES BY CLASS
Personnel Costs934,217,859916,882,877979,035,500969,024,5001,002,337,100
Operating Expenses187,993,492215,300,656222,954,300230,145,500223,081,300
Grants Loans Benefits404,139,618398,167,823412,638,800412,368,900411,231,200
Debt Service31,433,51018,194,607487,300487,300487,300
Capital Outlay19,820,09119,655,87529,316,20062,603,50080,006,500
Construction250,595(219,767)
TOTAL EXPENDITURES1,577,855,1641,567,982,0711,644,432,1001,674,629,7001,717,143,400
EXPENDITURES BY FUND SOURCE
General Fund1,270,379,5631,255,076,3931,315,422,0001,291,310,2001,324,796,100
Tobacco Fund5,416,0043,440,6154,908,2003,250,0003,250,000
Restricted Funds166,317,576174,105,788194,952,800251,981,200258,529,900
Federal Fund76,366,62079,069,67472,776,40072,518,00072,652,600
Road Fund59,375,40056,289,60056,372,70055,570,30057,914,800
TOTAL EXPENDITURES1,577,855,1641,567,982,0711,644,432,1001,674,629,7001,717,143,400
===== PAGE 269 ===== ## EXPENDITURES BY UNIT
Justice Administration90,097,91481,165,99694,095,90085,865,80087,706,600
Criminal Justice Training89,833,94898,397,477109,736,200141,105,000169,676,200
Juvenile Justice166,831,239176,533,127193,270,400197,841,600206,456,100
State Police350,423,703334,696,346362,559,700372,979,200368,451,300
Corrections788,870,840773,440,082782,405,400776,467,300782,597,800
Public Advocacy91,797,519103,749,043102,364,500100,370,800102,255,400
TOTAL EXPENDITURES1,577,855,1641,567,982,0711,644,432,1001,674,629,7001,717,143,400
The Kentucky Justice Cabinet was established in 1974 and was renamed the Justice and Public Safety Cabinet in 2007. The Cabinet is responsible for criminal justice services throughout the Commonwealth of Kentucky, including: law enforcement, law enforcement training, adult and juvenile incarceration, and public advocacy. The Cabinet provides overall leadership, policy direction and training for six departments and multiple public agencies and boards, with a focus on prevention, treatment, law enforcement, and preparing offenders for reentry into society with acquired skills to facilitate non-criminal behavior. The Cabinet is comprised of six departments: Department of Justice Administration Department of Public Advocacy Department of Kentucky State Police Department of Juvenile Justice Department of Criminal Justice Training Department of Corrections The mission of the Justice and Public Safety Cabinet is to ensure the safety and security of Kentucky communities through a fair and impartial administration of taxpayer resources. The approach centers on protecting citizens, restoring victims and reforming wrongdoers, all in a focused environment where everything is measured for accountability and performance. The Cabinet seeks the best possible return from Kentucky's public safety investment, using evidence-based programs, fiscal discipline, and data-driven strategies. Likewise, the Cabinet is committed to holding offenders to the highest standards of personal accountability and responsibility. The vision of the Justice and Public Safety Cabinet is to remain a national leader in criminal justice while focusing resources on the most effective strategies to reduce crime and protect public safety. This involves a comprehensive effort to right-size corrections, enhance re-entry programs, and reinvest any savings into law enforcement, community supervision, and better drug interventions. The Cabinet will empower and support victims, and ensure that offenders learn productive skills to support themselves after release. ===== PAGE 270 =====
Justice and Public Safety Justice Administration
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation48,296,70050,548,70050,889,30044,411,50046,450,600
State Salary and Compensation Allocation784,500
Special Appropriation1,000,000
Continuing Approp-General Fund1,800,0001,800,0001,800,000
Budget Reduction-General Fund(1,526,700)
Other(2,248,000)
Total General Fund49,633,20052,348,70051,162,60044,411,50046,450,600
Tobacco Fund
Tobacco Settlement - Phase I3,250,0003,037,5003,250,0003,250,0003,250,000
Continuing Approp-Tob Settlement4,227,3432,061,3391,658,200
Total Tobacco Fund7,477,3435,098,8394,908,2003,250,0003,250,000
Restricted Funds
Balance Forward4,342,4474,290,2654,230,9002,898,4001,350,000
Current Receipts1,804,989295,292301,600301,600301,600
Non-Revenue Receipts1,232,5821,499,0991,500,0001,459,1001,482,700
Total Restricted Funds7,380,0186,084,6566,032,5004,659,1003,134,300
Federal Fund
Balance Forward(8,095,772)(764,775)(193,000)
Current Receipts41,146,84727,600,19635,084,00034,895,20034,883,700
Total Federal Fund33,051,07426,835,42134,891,00034,895,20034,883,700
TOTAL SOURCE OF FUNDS97,541,63690,367,61696,994,30087,215,80087,718,600
EXPENDITURES BY CLASS
Personnel Costs24,535,61323,175,09924,905,40024,488,50026,551,200
Operating Expenses2,526,8002,591,0002,887,4003,261,8003,261,800
Grants Loans Benefits62,955,81155,199,89763,717,90057,315,50057,309,100
Capital Outlay79,690200,0002,585,200800,000584,500
TOTAL EXPENDITURES90,097,91481,165,99694,095,90085,865,80087,706,600
EXPENDITURES BY FUND SOURCE
General Fund47,776,30748,843,25151,162,60044,411,50046,450,600
Tobacco Fund5,416,0043,440,6154,908,2003,250,0003,250,000
Restricted Funds3,089,7541,853,7063,134,1003,309,1003,122,300
Federal Fund33,815,84927,028,42434,891,00034,895,20034,883,700
TOTAL EXPENDITURES90,097,91481,165,99694,095,90085,865,80087,706,600
EXPENDITURES BY UNIT
Secretary13,229,08013,316,63414,392,60014,390,10014,667,300
Child Fatality/Near Fatality Review Board369,414701,077640,900588,500596,300
Office of Drug Control Policy12,766,00410,190,61511,658,2006,003,6006,005,400
Medical Examiner Program8,873,3688,123,66111,004,9009,298,30010,819,600
Parole Board1,352,2001,382,7001,414,7001,365,2001,392,900
Grants36,629,54830,575,60938,101,10037,864,50037,864,900
Access to Justice500,000500,000500,000500,000500,000
===== PAGE 271 =====
Substance Abuse Initiatives16,378,30016,375,70016,383,50015,855,60015,860,200
TOTAL EXPENDITURES90,097,91481,165,99694,095,90085,865,80087,706,600
Under the authority of KRS 15A, the Department of Justice Administration (DJA), within the Justice and Public Safety Cabinet (JPSC) provides leadership, strategic planning and administrative support for all agencies within the Justice Cabinet. Per KRS 15A.020, the Office of the Secretary provides a variety of administrative, financial, investigative and legal functions that perform key oversight activities for the Department and the Cabinet. The associated offices and branches are outlined below: Office of the Secretary is headed by the Deputy Secretary, appointed pursuant to KRS 12.050, and is responsible for the direct administrative support for the Secretary. The Office of Financial Management Services (OFMS) is responsible for all matters relating to budgeting, fiscal function, administrative services and procurement oversight for the Justice and Public Safety Cabinet. OFMS also includes the Criminal Justice Statistical Analysis Center (CJSAC) as authorized by KRS 15.280. CJSAC is tasked with collecting, analyzing, and reporting data related to criminal justice issues that affect the Commonwealth and its citizens, and is required under KRS 209A.122 to collect and report data specifically related to domestic violence. It also manages federal grant awards, in partnership with JPSC agencies, which are utilized to strategically improve technology and data collection systems within JPSC. The Office of Legal Services (OLS) is dedicated to providing quality legal services for the Justice and Public Safety Cabinet. As one of the largest cabinets in state government and the cabinet responsible for the Commonwealth's criminal justice services, the Justice and Public Safety Cabinet and its employees face a wide range of legal issues every day. Attorneys in OLS provide legal assistance to JPSC officers, employees, and departments on a myriad of issues, such as employment and administrative law matters, regulatory and statutory interpretation, legislative initiatives, and a wide range of civil legal questions. They also provide representation before administrative bodies and in state and federal court in any matters that involve the JPSC. The Internal Investigations Branch serves the citizens of the Commonwealth of Kentucky by receiving and investigating certain limited allegations involving abuse of juveniles committed to, or in the custody of, the Department of Juvenile Justice and investigating administrative violations within JPSC as determined by the Cabinet Secretary. Allegations that meet certain criteria are assigned for investigation. Investigations are conducted for administrative purposes and if criminal violations are discovered, the allegation is referred to law enforcement. The duties of the office have expanded to include investigating allegations within JPSC with the exception of the Kentucky State Police and with certain restrictions in the Department of Public Advocacy. The Office of Legislative and Intergovernmental Services (OLIS) oversees the legislative portfolio for JPSC and its agencies, including testimonies and requests for the legislative branch and statutorily required reports. OLIS advises on and coordinates inter-cabinet and intergovernmental relations and interfaces with each branch of government, advocacy groups, and key stakeholders on issues that impact JPSC. Furthermore, OLIS develops, coordinates, and manages criminal justice policy priorities of behalf of the Secretary and the Governor's Office, conducts research and produces materials as needed, and represents JPSC on commissions, committees, and working groups at the state and national level. The Child Fatality and Near Fatality External Review Panel (the Panel) is an independent, autonomous agency administratively attached to the Cabinet and as created and established by KRS 620.055 for the purpose of conducting comprehensive reviews of child fatalities and near fatalities suspected to be the result of abuse or neglect. The Panel is a 22 member multidisciplinary team of professionals, including representatives from the medical, social services, mental health, legal, and law enforcement communities, as well as others who work with and on behalf of Kentucky's children. The Panel reviews official records and other relevant information received from a variety of sources, including: the Cabinet for Health and Family Services; the Department for Juvenile Justice; and medical records including autopsy reports, law enforcement records, and records held by a Family, Circuit, or District Court. The purpose of these reviews is to become aware of systemic deficits and to make recommendations for improvements to help prevent child fatalities and near fatalities due to abuse or neglect. The Office of Human Resource Management (OHRM) provides functional oversight and supervision of all human resources activities within the Justice and Public Safety Cabinet. The Office of Communications is responsible for delivering transparent communications regarding matters pertaining to justice and public safety. This office explores innovative strategies and opportunities to build proactive communications through electronic and print media outlets, social media and public outreach. The office collaborates with JPSC departments and agencies to ensure timely notification to the public as programs and services that have a direct impact on public safety while ensuring proper protocols are followed and direct oversight is given with all essential communication needs. ===== PAGE 272 ===== Pursuant to KRS 15A.020, the JPSC is responsible for housing the Office of the State Medical Examiner (OSME), which is headed by the Chief Medical Examiner for the Commonwealth of Kentucky. OSME is responsible for all matters relating to forensic pathology and forensic toxicology. Recognized as national leaders in their respective field, the scientific staff members of OSME provide death investigation services and forensic autopsy services for deaths that occur in Kentucky when authorized by county coroners or the court. All deaths that are sudden or unexpected or occur from other than natural causes must be reported to the county coroner, who then may authorize a postmortem examination by OSME. The goal of OSME is to assist county coroners, families, law enforcement agencies and the legal system by determining a scientifically unbiased and logical cause and manner of death. The Kentucky Parole Board is an independent, autonomous agency attached in administrative capacity to the JPSC under KRS 439.330. The Kentucky Parole Board consists of nine full-time members whose primary responsibility is to grant and revoke parole for adult felony offenders incarcerated in Kentucky correctional institutions. The purpose of the Parole Board is to determine if, when and under what circumstances the best interest of society will be served by allowing an offender to serve a portion of their sentence in the community under supervision and conditions of parole. Parole is the process that endeavors to reintegrate the offender from incarceration back into society, before restoring complete freedom. Under the provisions of KRS 15A.150, the JPSC shall administer all state and federally funded grant programs related to criminal justice. The Grants Management Division, located within the Department of Justice Administration, serves as the designated State Administering Agency for most of the criminal justice and victim service-related discretionary and formula grants issued by the U.S. Department of Justice. Programs are administered according to funding source guidelines, applicable statutes, state, and agency priorities and policies. Pursuant to KRS 15A.020 the JPSC is responsible for housing the Office of Drug Control Policy (ODCP) which is tasked with coordinating Kentucky's response to addiction. The goal of ODCP is to change the way addiction is handled, reduce the stigma and prevalence, and make the Commonwealth a model for other states. ODCP works with leaders and stakeholders in prevention, education, treatment, and law enforcement in a united effort to confront the epidemic. The Access to Justice Foundation is a poverty law resource center dedicated to providing opportunity for quality civil legal assistance for low-income Kentuckians. This is accomplished by supporting Kentucky's four legal services programs and pro bono lawyers and promoting awareness in the legal community of the need for volunteers to assist poor Kentuckians in civil matters. Per KRS 15A.075, the JPSC provides administrative support to the Criminal Justice Council (CJC). When active, the CJC is intended to be a neutral forum for discussion of systemic issues by a diverse group of state and local criminal justice professionals. ## Policy I ne base budget provides $15,855,600 in fiscal year 2027 and $15,860,200 in fiscal year 2028 for substance abuse initiatives. This funding enables the Kentucky Office of Drug Control Policy to continue to work towards increased public education, access to treatment, and greater access to naloxone. Funding is provided to the following entities: Department of Public Advocacy to fund social worker program, for the purpose of developing individualized alternative sentencing plans. • Prosecutors Advisory Council to enhance the use of “rocket docket” prosecutions in controlled substances cases for the Commonwealth's Attorneys and County Attorneys. Department of Corrections for substance abuse treatment programs for county inmates in local jails and for an injectable, FDA-approved treatment program to prevent an opiate relapse as offenders are released from custody. Department of Behavioral Health, Developmental and Intellectual Disabilities (DBHDID) for community mental health centers to fund additional substance abuse treatment resources on a local level. Funding to DBHDID also addresses neonatal abstinence syndrome by assisting with transitional care and wrap-around services. • Kentucky Agency for Substance Abuse Programs to supplement traditional programming for ASAP boards/counties. The base budget in each fiscal year includes General Fund resources for the following programs: $1,500,000 for the Operation UNITE Program $3,000.000 in each fiscal year for grants to support Court Appointed Special Advocate funding programs $1,000,000 in each fiscal year to support the Freedom House administered by Volunteers of America $250,000 in each fiscal year to support the Lincoln County Family Recovery Court to assist families involved with child welfare system ===== PAGE 273 ===== The base budget includes Tobacco Settlement Funds in the amount of $3,000,000 in fiscal year 2027 and $3,000,000 in fiscal year 2028 for the Office of Drug Control Policy to support opioid prevention, treatment, and recovery initiatives. The base budget includes Tobacco Settlement Funds in the amount of $250,000 in fiscal year 2027 and $250,000 in fiscal year 2028 to support the Restorative Justice Program administered by the Volunteers of America. The budget includes additional General Funds in the amount of $1,618,700 in fiscal year 2028 to support the operations of the new Northern Kentucky Medical Examiner's Office that is currently under construction. The Governor's budget includes additional funding in the amount of $392,700 in fiscal year 2027 and $801,400 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 $345,600 and $705,200, respectively. ===== PAGE 274 =====
Justice and Public Safety Criminal Justice Training
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation2,057,000
Total General Fund2,057,000
Restricted Funds
Balance Forward75,251,239109,009,652134,088,500114,956,400114,530,700
Current Receipts4,589,4055,242,4885,223,3005,231,2005,231,200
Non-Revenue Receipts119,002,956120,534,80387,681,800137,816,100140,382,000
Fund Transfers(2,057,000)(2,301,000)(2,301,000)(2,368,000)(2,368,000)
Total Restricted Funds196,786,601232,485,943224,692,600255,635,700257,775,900
Federal Fund
Balance Forward38,49338,49338,500
Non-Revenue Receipts(38,500)
Total Federal Fund38,49338,493
TOTAL SOURCE OF FUNDS198,882,094232,524,436224,692,600255,635,700257,775,900
EXPENDITURES BY CLASS
Personnel Costs33,616,82234,627,97938,614,60038,637,40039,049,500
Operating Expenses6,035,6927,966,3818,378,00012,433,2009,793,500
Grants Loans Benefits44,564,26647,438,13149,147,00050,955,90050,916,700
Debt Service2,057,000
Capital Outlay3,559,5738,364,98613,596,60039,078,50069,916,500
Construction595
TOTAL EXPENDITURES89,833,94898,397,477109,736,200141,105,000169,676,200
EXPENDITURES BY FUND SOURCE
General Fund2,057,000
Restricted Funds87,776,94898,397,477109,736,200141,105,000169,676,200
TOTAL EXPENDITURES89,833,94898,397,477109,736,200141,105,000169,676,200
EXPENDITURES BY UNIT
Kentucky Law Enforcement Program
Fund84,249,50092,434,519102,551,600133,328,400161,936,300
Peace Officer Professional Standards667,982712,895782,600811,000825,400
Kentucky Law Enforcement Council Support1,612,4731,840,0071,723,3002,380,5002,258,000
Office of the State School Security Marshal2,025,7621,873,6232,470,3002,416,6002,461,600
Special Training Programs133,131123,956220,400218,600221,100
Professional Development & Wellness Prog. Fd1,145,1001,412,4771,988,0001,949,9001,973,800
TOTAL EXPENDITURES89,833,94898,397,477109,736,200141,105,000169,676,200
===== PAGE 275 ===== The Department of Criminal Justice Training (DOCJT) is responsible for the training of law enforcement professionals as provided under Kentucky Revised Statutes, Chapters 15, 15A, 16, 70, 71, 72, 95, and KRS 403.785(2), along with 500 KAR 8:010 and 503 KAR. Basic and specialized training courses are offered to police officers, dispatchers, sheriffs, deputies, coroners, certified court-security officers, school resource officers, and certain other agencies upon request. Major training areas include patrol procedures, physical training, vehicle operations, defensive tactics, criminal law and DUI, firearms, criminal investigations, cultural awareness, bias-related crimes and tactical responses to crisis situations. Telecommunication training includes identifying the role and responsibilities of the dispatcher, correct phone and radio procedures, handling emergency and nonemergency calls for service, using emergency medical dispatch protocols and using the state and national criminal databases. Training is conducted in Richmond at the Training Center on the Eastern Kentucky University campus, in Madisonville and at regional sites. The DOCJT operates two training programs: the Kentucky Law Enforcement Foundation Program Fund (KLEFPF), and the Special Training programs. As a part of their duties, DOCJT is responsible for the Law Enforcement Professional Development and Wellness Fund, the Office of the State School Security Marshal Fund, and the Carrying Concealed Deadly Weapons fund. Additionally, DOCJT provides financial support for the Peace Officers Professional Standards (POPS) program and the Kentucky Law Enforcement Council Support (KLECS) office. The KLEFPF agency resources are derived from property and casualty insurance premium surcharge proceeds, which accrue pursuant to KRS 136.392, and are allocated by KRS 42.190 between the KLEFPF and the Kentucky Firefighters Foundation Program Fund. KRS 15.518 established the Professional Development and Wellness Branch. It is a comprehensive approach to wellbeing by striving to provide Kentucky law enforcement officers and dispatchers with the tools required to have a long life, a successful career and a happy retirement. The branch hosts Kentucky Post-Critical Incident Seminars (KYPCIS), three-day trainings led by mental health professionals trained to work with peace officers and dispatchers, and driven by a team of law enforcement and public safety dispatch peers who have experienced their own critical incident and received training in Critical Incident Stress Management. Additionally, the branch is responsible for assisting law enforcement officers with obtaining benefits related to disability and line of duty death. The School Safety and Resiliency Act, an act relating to school safety and regularly referred to as Senate Bill 1, was passed during the 2019 Regular Session. The Office of the State School Security Marshal was established to monitor school safety and security initiatives, born out of legislation developed after the Marshall County High School shooting that occurred on January 23, 2018. Compliance officers are assigned to districts throughout the state to conduct school on-site reviews to ensure compliance with the law, using a 66-point assessment tool DOCJT prepared in accordance with SB1. The Kentucky Law Enforcement Council (KLEC) is an independent council with statutory duties that are directly supported by the Office of Kentucky Law Enforcement Council Support (OKLECS). OKLECS under 15A.080, is administratively attached to the Department of Criminal Justice Training for administrative services that include financial, procurement, human resources, fleet and facility management, governmental connectivity and logistics, computer hardware, and supply services. The KLEC and its support staff oversee the certification requirements of police officers, dispatchers, and court security officers from across the Commonwealth. ## Policy The budget provides for a training incentive stipend in the amount of $4,562 each fiscal year from the Kentucky Law Enforcement Foundation Program Fund (KLEFPF) for approximately 8,360 certified peace officers. The budget includes funding for a proportional amount $2,281 each fiscal year annual training incentive stipend for approximately 164 part-time certified officers. The stipend recipients include municipal, county and university local law enforcement officers, state troopers, arson investigators, hazardous devices investigators, legislative security specialists, and Vehicle Enforcement officers within the Kentucky State Police; Horse Park mounted patrol officers; State Park rangers; Agriculture investigators, Charitable Gaming investigators; Alcoholic Beverage Control investigators; Insurance fraud investigators; Attorney General investigators; and School Security Officers. House Bill 137 of the 2022 Regular Session expanded eligible recipients under KRS 15.420 to include: an officer serving on a joint task force, a detective employed by a county attorney, a process server for juvenile courts with a consolidated local government, a local alcoholic beverage control investigator appointed pursuant to KRS Chapter 241 and any detective for a Commonwealth's attorney established in accordance with KRS 15.460. The budget includes $133,328,400 in fiscal year 2027 and $161,936,300 in fiscal year 2028 for the Kentucky Law Enforcement Program Fund. The Governor’s budget includes funding for the Western Kentucky Training Facility located in Madisonville in the amount of $372,800 each year for an additional two basic training classes allowing to meet needs of training in the region, $17,200 each year for Google workspace licensing to support rising enrollment, and $106,100 in fiscal year 2027 and $110,900 in fiscal year 2028 for a Program Coordinator to provide local support for scheduling, registration, roster management, and communication to agencies, ensuring that training operations are efficient and accessible. ===== PAGE 276 ===== The budget includes additional funding in the amount of $172,000 each year to complete a phased infrastructure upgrade of the Law Enforcement Training and Reporting System, $202,100 each year for insurance/moving/mechanical associated with new firing range, $54,700 each year to address custodial/operational workload associated with new firing range and dormitory, and $100,000 in fiscal year 2027 for lead mitigation at the Boonesboro range to maintain environmental safeguards. In addition, the budget includes $354,500 in fiscal year 2027 and $10,000 in fiscal year 2028 to upgrade the law enforcement simulation system and ongoing maintenance costs. The budget includes additional funding for the Kentucky Law Enforcement Council Support in the amount of $172,400 each year for facility rent, $127,500 to add a contract instructor monitor associated with council Instructor Monitor Program which ensures instructors are properly certified, teach approved curricula, and adhere to attendance and training standards to meet demand and maintain oversight standards; $237,600 each year for staff attorney and paralegal positions at the cabinet that support the increasing workload on behalf of the Department, and $150,000 in fiscal year 2027 to conduct a new law enforcement job task analysis for POPS entrance testing. The Governor's budget includes additional funding in the amount of $402,800 in fiscal year 2027 and $827,300 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. ===== PAGE 277 =====
Justice and Public Safety Juvenile Justice
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation114,529,200146,847,000168,341,200172,164,700181,655,000
State Salary and Compensation Allocation1,648,20026,80041,700
Special Appropriation19,900,000
Continuing Approp-General Fund1,750,000
Other1,833,400
Total General Fund139,660,800146,873,800168,382,900172,164,700181,655,000
Restricted Funds
Balance Forward26,309,52220,836,9156,862,3001,733,000226,900
Current Receipts430,951159,957296,4001,219,100183,100
Non-Revenue Receipts8,044,1815,061,2448,535,80012,000,00013,597,200
Total Restricted Funds34,784,65426,058,11615,694,50014,952,10014,007,200
Federal Fund
Balance Forward(17,469)(16,351)(15,700)
Current Receipts13,223,81710,412,94810,941,70010,951,70010,951,700
Non-Revenue Receipts51,231
Total Federal Fund13,206,34910,447,82810,926,00010,951,70010,951,700
TOTAL SOURCE OF FUNDS187,651,803183,379,744195,003,400198,068,500206,613,900
EXPENDITURES BY CLASS
Personnel Costs133,455,751136,542,883155,774,600156,881,100166,114,200
Operating Expenses16,826,14618,111,03217,775,40020,614,40019,670,800
Grants Loans Benefits15,628,87718,380,44619,233,10019,858,80020,183,800
Debt Service478,5102,588,607487,300487,300487,300
Capital Outlay441,955896,368
Construction13,790
TOTAL EXPENDITURES166,831,239176,533,127193,270,400197,841,600206,456,100
EXPENDITURES BY FUND SOURCE
General Fund139,660,800146,873,800168,382,900172,164,700181,655,000
Restricted Funds13,947,73919,195,80013,961,50014,725,20013,849,400
Federal Fund13,222,70010,463,52710,926,00010,951,70010,951,700
TOTAL EXPENDITURES166,831,239176,533,127193,270,400197,841,600206,456,100
EXPENDITURES BY UNIT
Program Management2,399,9002,399,9003,837,6003,899,4003,974,400
Program Operations152,422,339152,803,027141,829,700149,254,100157,229,000
Support Services12,009,00021,330,20047,603,10044,688,10045,252,700
TOTAL EXPENDITURES166,831,239176,533,127193,270,400197,841,600206,456,100
The Department of Juvenile Justice (DJJ) operates programs for juvenile crime prevention, community services, residential and non-residential alternatives to secure detention, and residential facilities for pre- and post-adjudicated youth. All programs are designed primarily for “public” and “youthful” offenders. DJJ consists of three programmatic areas: Program Management, Program Operations, and Support Services. ===== PAGE 278 ===== Program Management is comprised of the Commissioner's Office which provides management and policy direction for DJJ. There are four Offices reporting to the Commissioner's Office: Office of Program Operations, Office of Detention, Office of Community and Mental Health Services, and Office of Support Services. The Office of the Commissioner provides staff support for the Commissioner, which includes public information services and the Division of Compliance. Program Operations consists of the direct services provided to both “public” and “youthful” offenders, through Day Treatment Services, Group Homes, Residential Facilities, Community Supervision, Private Child Care Facilities, and Alternatives to Secure Detention. The programs are administered on a regional basis, divided into two separate regions. Day Treatment Services is comprised of five state-owned and 18 contract programs. These programs are the least restrictive where the youth remain in a home setting during the evening and attend a day treatment program during the day. Priority is given to youth transitioning from juvenile justice programs and/or facilities, youth at risk of out-of-home placement and youth with serious behavior issues in the school or community. A court or school system typically refers a youth to serve in these programs, and both males and females are eligible. Program participants are required to participate in individual, group and family counseling. Youth are also provided with a normal, six-hour school day along with highly individualized instruction. Day Treatment facility programs utilize an effective balance of treatment, education and graduated sanctions to redirect troubled youth. The 23 Day Treatment centers admitted approximately 1,259 youth during FY 2025. Group Homes are community-based residential treatment facilities that generally serve eight youths per home; DJJ operates six facilities throughout the state. These programs accept youths who have been committed to DJJ as public or youthful offenders. Group home care serves as an alternative to institutionalization and aims to transition a youth from institutional placement to the community. Group Homes utilize either Day Treatment facilities or local public schools to meet the educational criteria of their programs. Additionally, Group Homes provide individual and group counseling, substance abuse treatment, and community service components as a part of their comprehensive programming. Overall, Group Homes serve younger and/or less serious offenders; as such, some Group Homes also function as a step-down program for youth leaving a residential center that could benefit from a less restrictive level of care before they return home. The average daily population of Group Homes was 36 for FY 2025, with a total capacity of approximately 48 beds across 6 Group Homes. The six state-operated Residential Facilities (Youth Development Centers) provide 24-hour care and custody of juveniles who have been committed to DJJ as public offenders or sentenced as youthful offenders. These facilities serve youths who need treatment that cannot be provided in their community or who require placement in a secure setting because they represent a threat to the community. Youth Development Centers provide an on-grounds, six-hour school day in coordination with local school districts. This includes educational alternatives such as graduation track and GED track, as well as vocational opportunities. Some youths committed are eligible to receive college credit through virtual university programs. Youth Development Centers also provide individual, group and family counseling. Programming offered at Youth Development Centers include substance abuse; anger management; recreation; parenting classes; and independent living classes. Additionally, community-based education, service learning, and community service options are integral components of Youth Development Centers. Youth Development Centers housed an average of 106 juveniles per day during FY 2025, and the current capacity of the residential care program is approximately 210 youths. Currently, the Office of Detention operates seven centers in Adair, Breathitt, McCracken, Campbell, Warren, Fayette, and Boyd. The Jefferson County detention center is currently under construction and projected to open during the spring of 2027, while the Lyndon facility is scheduled to reopen in the fall of 2026. The Commonwealth's juvenile detention system provides pre-adjudication and pre-trial detention of all alleged delinquent juveniles and alleged youthful offenders determined to be a safety risk to themselves or the community. Detention centers can also serve as post-adjudication holding centers, and some juveniles are ordered to serve days in a detention center as punishment for their crime. The juvenile detention system ensures state-operated detention centers are available for all counties. If a youth is ordered detained in a detention facility, DJJ staff screen the youth using a risk assessment evaluation tool. Detention centers provide programs with a wide range of services including education; counseling; medical and mental health screening; behavior management; observation; assessment; and continuous supervision. On average 255 youth were housed in secure detention facilities per day in FY2025, with a total capacity of approximately 284. DJJ offers placements in less restrictive than detention facilities through two state-owned residential Alternatives to Secure Detention or through contracts with pre-adjudication group homes, emergency shelters and foster care providers, electronic monitoring, and tracking services. DJJ Detention Alternatives Coordinators work with the court to determine the least restrictive placement for the juveniles and if an alternative to secure detention is appropriate. During FY 2025, the state-owned pre-adjudication Alternatives to Secure Detention residential facilities admitted 219 youths. Private childcare facilities and therapeutic foster care programs are utilized to alleviate facility capacity problems and to provide specialized treatment for youths. Approximately one juvenile is in these programs on any given day. ===== PAGE 279 ===== DJJ Community Services provide services to juvenile offenders adjudicated as delinquent or guilty. Juvenile Social Workers (JSWs) typically serve in roles similar to probation officers where offenses can be reported to the JSW by family members or the police. JSWs often oversee juveniles who are currently committed to DJJ and have completed the residential phase of their treatment. JSWs assist DJJ in monitoring juveniles in the community and imposing graduated sanctions on a juvenile breaking the rules of their placement. These JSWs can initiate a legal process administered by DJJ to return a committed juvenile from community placement to a DJJ residential facility. DJJ staff in the community offices develop service objectives and comprehensive service plans for juvenile offenders and their families. JSWs supervised an average daily population of approximately 462 youths per day in FY 2025 and recommend any necessary out-of-home placements. The Division of Placement Services, included in the Program Operations area, determines appropriate out-of- home placements for youths committed to DJJ. The Division of Placement Services consists of five branches: Alternative Services, Classification Branch, Juvenile Detention Alternative Initiative Branch, Interstate Compact Juveniles Branch, and the Medical Branch. The Medical Branch oversees the medical delivery system throughout DJJ. Support Services provides administrative support to all organizational units of DJJ, including Division of Administrative Services; Division of Program Services; and the Division of Professional Development. The Division of Administrative Services consists of four branches: Fiscal; Grants; Capital Construction and Real Properties; and Information Systems. The Division of Program Services consists of the Education Branch, Benefits and Human Services Branch, and Program Operations Branch that report directly to the Division Director. The Division of Professional Development consists of the Academy Training Branch and the In-service Training Branch. ## Policy The base budget includes General Fund in the amount of $20,000,000 in each fiscal year to support expanded medical services for youth under the care of the department, including primary care and mental health services. The budget includes additional General Fund in the amount of $6,515,300 in fiscal year 2027 and $12,019,800 in fiscal year 2028 to operate the new the Jefferson County Youth Detention Center in downtown Louisville and the expansion of the Jefferson Regional Detention Center in Lyndon. Both facilities are undergoing extensive renovations and expected to be operational in Fall of 2026 for Lyndon and Spring 2027 for the downtown location. The Governor's budget includes additional funding in the amount of $1,911,000 in fiscal year 2027 and $3,931,300 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 $1,758,100 and $3,616,800, respectively. ===== PAGE 280 =====
Justice and Public Safety State Police
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation220,554,800232,878,200247,593,800244,370,800252,765,600
State Salary and Compensation Allocation10,542,800322,400496,300
Other2,248,000
Total General Fund233,345,600233,200,600248,090,100244,370,800252,765,600
Restricted Funds
Balance Forward31,413,84817,184,06716,630,80014,343,00012,865,800
Current Receipts20,553,58321,348,90522,059,10022,419,40022,639,700
Non-Revenue Receipts658,2378,639,82810,407,00025,867,00010,407,000
Total Restricted Funds52,625,66747,172,80049,096,90062,629,40045,912,500
Federal Fund
Balance Forward(6,796,376)180,451552,4002,382,6001,575,300
Current Receipts20,149,58218,323,62825,173,20022,467,20022,409,000
Non-Revenue Receipts9,088,348(250,000)
Total Federal Fund22,441,55418,254,08025,725,60024,849,80023,984,300
Road Fund
Regular Appropriation59,262,50056,289,60056,372,70055,570,30057,914,800
State Salary and Compensation Allocation112,900
Total Road Fund59,375,40056,289,60056,372,70055,570,30057,914,800
TOTAL SOURCE OF FUNDS367,788,221354,917,080379,285,300387,420,300380,577,200
EXPENDITURES BY CLASS
Personnel Costs267,975,696251,406,862272,570,300269,880,300280,487,700
Operating Expenses58,855,91768,880,39875,324,10078,693,00076,777,200
Grants Loans Benefits324,9751,584,4051,825,6001,825,6001,825,600
Debt Service8,906,0003,739,500
Capital Outlay14,111,1149,335,18112,839,70022,580,3009,360,800
Construction250,000(250,000)
TOTAL EXPENDITURES350,423,703334,696,346362,559,700372,979,200368,451,300
EXPENDITURES BY FUND SOURCE
General Fund233,345,600230,163,147248,090,100244,370,800252,765,600
Restricted Funds35,441,60030,541,95534,753,90049,763,60034,554,600
Federal Fund22,261,10317,701,64423,343,00023,274,50023,216,300
Road Fund59,375,40056,289,60056,372,70055,570,30057,914,800
TOTAL EXPENDITURES350,423,703334,696,346362,559,700372,979,200368,451,300
EXPENDITURES BY UNIT
Administration32,428,68439,012,34753,003,30057,981,90045,540,100
Technical Services73,349,87272,722,57175,947,90080,679,70079,424,600
Operations231,543,823208,401,654217,370,100217,956,000226,575,500
Commercial Vehicle Enforcement13,101,32314,559,77516,238,40016,361,60016,911,100
TOTAL EXPENDITURES350,423,703334,696,346362,559,700372,979,200368,451,300
===== PAGE 281 ===== The Kentucky State Police, established in 1948, is the statewide law enforcement agency of the Commonwealth. In accordance with Kentucky Revised Statute (KRS) 16, the department shall consist of the commissioner and the number of officers, individuals employed as a Trooper R Class, CVE R Class, and civilians, and shall be organized in the manner as the commissioner determines. The agency will efficiently fulfill the responsibilities placed upon agency officers, as well as those other responsibilities assigned pursuant to any Legislative Act, Administrative Regulation, or Executive Order. State Troopers are assigned to 16 regional posts and Commercial Vehicle Enforcement officers are assigned to 3 regions. The Department is responsible for the enforcement of criminal and traffic laws, including white-collar crime, organized crime, electronic crime, racketeering, and drug-related crime. The State Police also provide executive protection for the Governor, Lieutenant Governor, their families, and state-owned property. The current organization is comprised of the following four offices: Commissioner; Administrative Services; Operations; and Technical Services. The Office of the Commissioner comprises the executive staff of the commissioner as well as the Executive Security Branch and Legislative Security Branch. The Office of Administrative Services, includes the Internal Affairs Branch, Strategic Planning Branch, Executive Services, the Division of Operational Support and the Division of Management Services. The Division of the Operational Support provides professional support services for the Department, including Public Affairs, Health and Wellness, Recruitment, and Academy Branches. The Division of Management Services includes Supply, Properties Management, Budget, Financial Grants Management, and Security Branches. The Academy Branch is responsible for all basic training and providing continuing education to meet individual employees' peach officer certification requirements. The Office of Operations consists of the Inspections and Evaluation Branch, Special Services, Division of East Troops, Division of West Troops, Division Special Enforcement and Division of Commercial Vehicle Enforcement. The Office includes the regional posts and the personnel assigned to each post. State Police posts are maintained in Mayfield, Madisonville, Henderson, Elizabethtown, Bowling Green, Dry Ridge, Frankfort, Campbellsburg, Richmond, Columbia, Morehead, Ashland, Pikeville, Hazard, Harlan, and London. Other functions in this office include Driver's Testing, Highway Safety, Drug Enforcement Special Investigations, Vehicle Investigation, Critical Incident Response Team, Cannabis Suppression, Intelligence, and Special Operations (Hazardous Devices, Special Response Team, and Canine). The Division of Commercial Vehicle Enforcement is responsible for encouraging and promoting a safe driving environment through education and safety awareness while enforcing state and federal laws and regulations, placing special emphasis on commercial vehicles. This Division is staffed with sworn law enforcement officers, regulatory weight and safety inspectors, and civilian staff. The Office of Technical Services comprises the Division of Forensic Sciences, Division of Electronic Services, Division of Records Management, and the Chief Information Officer. The Office is responsible for providing technical assistance to all departmental areas, along with outside agencies, concerning electronic crimes examination/analysis, communications, criminal history information and records, intelligence information, automated fingerprint information, and computer information technology needs. The Office also has the responsibility of providing forensic analysis for all law enforcement agencies throughout the Commonwealth. The forensic analysis function is provided through the Central Laboratory in Frankfort as well as Regional Laboratories in Ashland, Louisville, Cold Springs, London, and Madisonville. ## Policy The budget includes additional General Fund in the amount of $5,500,000 in each fiscal year to support compensatory time conversion to paid overtime for sworn Troopers which will improve recruitment and retention. The budget includes additional funds in the amount of $5,581,900 in fiscal year 2027 and $11,083,300 in fiscal year 2028 to support the additional costs of the KRS 16.052 salary schedule for troopers and commercial vehicle enforcement officers. These include changes in rank and experience and the required, statutory increase in the consumer price index. The General Fund portion is $3,776,300 and $7,380,200, respectively. The budget includes additional General Fund in the amount of $1,302,900 in fiscal year 2027 and $3,416,000 in fiscal year 2028 to support new drivers testing locations at three existing Transportation Cabinet locations and add six new locations. The Governor's budget includes additional General Fund in the amount of $867,700 in fiscal year 2027 and $810,200 for two additional forensic biologists, increased lease cost and a vehicle lift at the relocated Northern Kentucky Crime Lab, and four additional forensic biologists for the Central Lab to reduce sexual assault examination backlog. The budget includes Restricted Funds for a $4,562 training incentive stipend in each fiscal year for state troopers, arson investigators, hazardous devices investigators, legislative security specialist, and Vehicle Enforcement officers within the Kentucky State Police. The stipend payments are provided from the Kentucky Law Enforcement Foundation Fund. The base budget includes General Fund in the amount of $2,925,200 in each fiscal year for Kentucky Emergency Warning System lease renewals. ===== PAGE 282 ===== The Governor’s budget includes additional Restricted Funds in fiscal year 2027 in the amount of $13,260,000 for law enforcement vehicles and $2,200,000 for mobile data terminal and mount replacement. The funds are provided from the Kentucky Law Enforcement Foundation Fund. The Governor's budget includes additional funding in the amount of $1,476,100 in fiscal year 2027 and $3,031,400 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 $1,249,700 and $2,566,700, respectively. ===== PAGE 283 =====
Justice and Public Safety
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation722,374,000737,791,000775,139,500736,949,900748,684,600
State Salary and Compensation Allocation10,757,10040,100123,900
Special Appropriation30,000,000
Continuing Approp-General Fund1,482,176265,739265,000
Budget Reduction-General Fund(23,257,900)
Other(1,833,400)
Total General Fund762,779,876738,096,839752,270,500736,949,900748,684,600
Restricted Funds
Balance Forward22,099,29525,967,62829,950,10021,595,6009,499,300
Current Receipts24,535,44524,237,91520,501,20018,674,70016,443,500
Non-Revenue Receipts883,323(900,944)7,742,2007,742,200
Total Restricted Funds47,518,06249,304,59950,451,30048,012,50033,685,000
Federal Fund
Balance Forward4,333,007978,711966,600729,700723,700
Current Receipts1,452,05421,023,0801,042,300998,2001,009,200
Non-Revenue Receipts47,091
Total Federal Fund5,785,06022,048,8822,008,9001,727,9001,732,900
TOTAL SOURCE OF FUNDS816,082,999809,450,320804,730,700786,690,300784,102,500
EXPENDITURES BY CLASS
Personnel Costs392,986,075380,347,905397,664,800392,029,200401,141,900
Operating Expenses93,599,719104,807,283105,730,900101,880,500100,315,400
Grants Loans Benefits280,665,288275,550,841278,715,000282,412,900280,995,800
Debt Service19,992,00011,866,500
Capital Outlay1,627,759851,110294,700144,700144,700
Construction16,443
TOTAL EXPENDITURES788,870,840773,440,082782,405,400776,467,300782,597,800
EXPENDITURES BY FUND
SOURCE
General Fund762,514,057733,003,295752,270,500736,949,900748,684,600
Restricted Funds21,550,43519,354,47628,855,70038,513,20032,704,700
Federal Fund4,806,34921,082,3111,279,2001,004,2001,208,500
TOTAL EXPENDITURES788,870,840773,440,082782,405,400776,467,300782,597,800
EXPENDITURES BY UNIT
Corrections Management20,215,71020,306,83520,385,60019,453,80020,219,900
Adult Correctional Institutions490,407,639487,683,323494,917,400492,838,500499,999,500
Community Services and Local Facilities260,773,990248,160,682250,817,500247,890,100246,093,500
Local Jail Support17,473,50217,289,24216,284,90016,284,90016,284,900
TOTAL EXPENDITURES788,870,840773,440,082782,405,400776,467,300782,597,800
===== PAGE 284 ===== The Department of Corrections, pursuant to KRS 196 - 197, is responsible for the broad range of activities associated with adult criminal incarceration, public safety, inmate rehabilitation, probation and parole, and criminal recidivism. As the largest department in the Justice and Public Safety Cabinet, Corrections has four separate appropriation units: Corrections Management, Community Services and Local Facilities, Adult Institutions, and Local Jail Support. The Department of Corrections utilizes resources from each of these units to provide the necessary balance between public safety and fiscal responsibility. In order to accomplish this, the Department is charged with accommodating a growing inmate population through a balance of community and institutional based solutions. I ne Department's core cost driver is the teion population. KRS 196.111 mandates the use of evidence-based practices in the sentencing process for convicted felons and in the decision making process for the supervision and treatment of felons in prison or on probation or parole. In 2011, modifications to KRS Chapter 218A controlled substance statutes placed emphasis on probation, diversion, and treatment and diverts savings from the drug law changes to drug treatment programs. Other provisions in KRS 439.335, KRS 439.340, KRS 439.320, and KRS 197.045 emphasize the use of parole to effectuate accelerated parole hearings; to order mandatory reentry supervision release; and to allow for good time credit that reduces the sentence while on parole. ## Policy The budget incorporates the following array of institutional and community beds to accommodate the projected prison and community felon population under the custody of the Department of Corrections.
2026 - 2028 Felon and Community Beds Forecast
FY 2026
RevisedFY 2027FY 2028
Felons*19,20619,29819,438
Other**1,6761,6471,647
Total20,88220,94521,085
* The incarcerated felon forecast is a consensus estimating process involving the Department of Corrections and the Office of the State Budget Director. **The Other category is the remaining population under the custody of the Department of Corrections located in Halfway House and Recovery Kentucky beds for parolees and probationers, as well as others serving time in jails under an alternative sentence arrangement with the Courts. ===== PAGE 285 =====
Justice and Public Safety Corrections Management
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation16,038,30020,212,90020,405,20019,072,50019,765,600
State Salary and Compensation Allocation657,40069,600
Budget Reduction-General Fund(614,200)
Reorganization Adjustment3,215,000
Total General Fund19,910,70020,212,90019,860,60019,072,50019,765,600
Restricted Funds
Balance Forward426,860918,017485,300367,300118,000
Current Receipts536,97432,31432,00032,00032,000
Non-Revenue Receipts(450,000)
Total Restricted Funds963,834500,330517,300399,300150,000
Federal Fund
Balance Forward436,509471,296486,300205,300199,300
Current Receipts293,98093,88694,00094,000105,000
Total Federal Fund730,489565,182580,300299,300304,300
TOTAL SOURCE OF FUNDS21,605,02221,278,41220,958,20019,771,10020,219,900
EXPENDITURES BY CLASS
Personnel Costs17,190,05717,007,51516,812,00016,207,50016,769,300
Operating Expenses2,904,8283,204,6493,573,6003,246,3003,450,600
Grants Loans Benefits77,77694,671
Capital Outlay43,049
TOTAL EXPENDITURES20,215,71020,306,83520,385,60019,453,80020,219,900
EXPENDITURES BY FUND SOURCE
General Fund19,910,70020,212,90019,860,60019,072,50019,765,600
Restricted Funds45,81715,030150,000281,300150,000
Federal Fund259,19278,905375,000100,000304,300
TOTAL EXPENDITURES20,215,71020,306,83520,385,60019,453,80020,219,900
EXPENDITURES BY UNIT
Corrections Management20,215,71020,306,83520,385,60019,453,80020,219,900
TOTAL EXPENDITURES20,215,71020,306,83520,385,60019,453,80020,219,900
Corrections Management provides the administrative and management functions for the Department of Corrections. These functions are achieved through the following program areas: Office of the Commissioner, Division of Corrections Training, and Division of Administrative Services. The Office of the Commissioner provides departmental management and administrative support necessary for the Commissioner of Corrections to conduct statutorily assigned duties pursuant to KRS 196 and 197. The Kentucky State Corrections Commission is administratively attached to the Office. Also attached to the Office of the Commissioner is the Office of the Deputy Commissioner for Support Services, responsible for the Division of Correctional Industries and Division of Administrative Services. The Division of Population Management, Division of Offender Information, which includes the Information Technology Branch, and the Division of Parole Board Support are also under the Office of the Deputy Commissioner of Support Services. ===== PAGE 286 ===== The Division of Corrections Training is responsible for developing curriculum and providing job training to corrections employees including staff in the county jails. Instruction is provided through the Basic Academy program, the Common Core/Officer In-service program, Jail Training programs, and various specialized programs. I ne Division of Administrative Services is comprised of two branches that provide support services to the entire Department in accounting and purchasing, property inventory, and budgeting. ## Policy The Governor's budget includes additional General Fund in the amount of $286,100 in fiscal year 2027 and $588,000 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. ===== PAGE 287 =====
Justice and Public Safety Adult Correctional Institutions
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation425,982,200448,922,400479,587,300470,739,400482,498,600
State Salary and Compensation Allocation6,128,50040,10054,300
Special Appropriation30,000,000
Continuing Approp-General Fund265,020265,000
Budget Reduction-General Fund(6,389,200)
Reorganization Adjustment(3,705,000)
Other12,506,1007,200,000
Total General Fund470,911,800456,427,520473,517,400470,739,400482,498,600
Restricted Funds
Balance Forward13,978,94018,065,07421,235,90015,833,9007,067,200
Current Receipts19,152,86418,512,28015,968,00013,302,40011,056,400
Non-Revenue Receipts883,323(900,944)
Total Restricted Funds34,015,12735,676,41037,203,90029,136,30018,123,600
Federal Fund
Balance Forward4,323,229533,782524,400524,400524,400
Current Receipts21,43920,119,41830,00030,00030,000
Non-Revenue Receipts47,091
Total Federal Fund4,344,66820,700,292554,400554,400554,400
TOTAL SOURCE OF FUNDS509,271,595512,804,221511,275,700500,430,100501,176,600
EXPENDITURES BY CLASS
Personnel Costs287,353,551272,546,896285,873,100281,868,400287,988,400
Operating Expenses79,080,64889,890,31889,144,20084,621,60082,662,600
Grants Loans Benefits103,492,738112,512,056119,605,400126,203,800129,203,800
Debt Service19,992,00011,866,500
Capital Outlay488,702851,110294,700144,700144,700
Construction16,443
TOTAL EXPENDITURES490,407,639487,683,323494,917,400492,838,500499,999,500
EXPENDITURES BY FUND SOURCE
General Fund470,646,700453,066,936473,517,400470,739,400482,498,600
Restricted Funds15,950,05314,440,50621,370,00022,069,10017,470,900
Federal Fund3,810,88620,175,88230,00030,00030,000
TOTAL EXPENDITURES490,407,639487,683,323494,917,400492,838,500499,999,500
EXPENDITURES BY UNIT
Institutions Operations4,869,7414,006,9774,315,8003,566,3003,352,500
Medical Services76,970,04482,441,28494,843,80094,822,80095,024,800
Education5,472,0295,968,0636,897,1006,900,0007,156,400
Correctional Industries10,214,0919,670,16312,944,20012,671,00012,771,200
Correctional Facilities350,024,397343,659,516338,421,800336,502,000343,246,800
Mental Health15,143,60713,268,4348,663,2008,768,1008,839,500
Private Prisons27,713,72928,668,88728,831,50029,608,30029,608,300
TOTAL EXPENDITURES490,407,639487,683,323494,917,400492,838,500499,999,500
===== PAGE 288 ===== Adult Correctional Institutions is comprised of 13 state correctional facilities and one contracted correctional facility for adult felon offenders. Seven additional programmatic areas serve all institutions and their incarcerated populations: the Division of Operations, the Division of Mental Health, Education programs, Inmate Medical Services, the Division of Adult Institutions and the Division of Correctional Industries. The Division of Operations, pursuant to KRS 197.505, 197.065, 196.240, and 197.110, supervises and directs the following activities: coordination of academic and technical programs, coordination of dietary and health programs for state owned facilities, and coordination of security threat group information. The Division of Mental Health is responsible for providing mental health treatment services to Kentucky's incarcerated, paroled, and probated populations. The Division is comprised of three units: sex offender treatment programs, the Sex Offender Risk Assessment Unit, and psychiatric and psychological out-patient services. Inmate Medical Services, pursuant to KRS 197.020, provides necessary health services to inmates committed to the Department. Services are performed at each institutional location through institutional medical staff, personal service contracts, and outside referrals to local specialists and hospitals. The provision of medical services is monitored, authorized, and reviewed by a system-wide Medical Director. Beneficiaries of the Division of Inmate Medical Services also include the state inmates housed in local jails who are able to participate in the healthcare network administered through the Division. County jail inmates are now beneficiaries of the healthcare network in accordance with KRS 441.560. Kentucky Correctional Industries (KCI), as authorized by KRS 197.200, produces goods and services employing inmate labor. Kentucky Correctional Industries operates thirteen industries at seven plants in the Department's state-operated institutions. Plants produce products and provide services such as office furniture, license tags, janitorial products, printing, mattresses, ergonomic chairs, signage, furniture refurbishing, coupon sorting, Braille printing services, and mail services are also offered by KCI. Also administered by the Division of Correctional Industries is the Institutional Farm program. Farm programs are currently operated at Blackburn Correctional Complex, Northpoint Training Center, Roederer Correctional Complex, and Western Kentucky Correctional Complex. Current farm operations consist of cattle (including commercial cattle and a prime Registered Angus herd), grain, hay, orchards, and vegetables. The farm program also has a working agreement with the Thoroughbred Retirement Foundation, and operates a refuge for retired thoroughbred horses at the Blackburn Correctional Complex. ## Correctional Institutions Kentucky State Reformatory (KSR) is a medium security institution with current operational capacity of 363 inmates located near LaGrange in Oldham County. The inmate population is divided into four segments: general population, special management unit, nursing care facility, and mental health unit. Since 1980, KSR has converted designated living areas into single cell facilities and opened a new 150-bed mental health unit during 1998. In 1995 KSR opened the Nursing Care Facility which houses inmates in need of medical care due to their medical condition. Kentucky State Penitentiary (KSP) is a maximum security institution with an operational capacity of 914 inmates, located near Eddyville in Lyon County. The inmate population is separated into three major groups: general population, protective custody, and disciplinary/administrative segregation. KSP also houses the state's capital punishment unit. Blackburn Correctional Complex (BCC) is a minimum security institution with an operational capacity of 320 inmates located near Lexington in Fayette County. The institution programmatically directs inmates to halfway houses or returns the inmate to the community by parole, based upon the individual's demonstrated conduct, program performance, and need. Bell County Forestry Camp (BCFC) is a minimum security institution with an operational capacity of 300 inmates located near Pineville in Bell County. The institution provides manpower to the Division of Forestry for fire suppression in Bell and seven surrounding counties during fire season along with road, highway garage, and community service details. Kentucky Correctional Institution for Women (KCIW), the only state institutional facility for women in the Commonwealth, is located in PeeWee Valley in Shelby County, and has an operational capacity of 715 inmates. All levels of security and all levels of medical services must be provided since virtually all female prisoners are housed at KCIW. Eastern Kentucky Correctional Complex (EKCC) is a medium security institution with an operational capacity of 1,914 inmates located near West Liberty in Morgan County. The facility is the second largest correctional institution in the state, providing inmates with employment opportunities, academic resources, and vocational programs. ===== PAGE 289 ===== Western Kentucky Correctional Complex (WKCC) is a medium security institution with an operational capacity of 493 inmates located near Caldwell County. The institution operates a full farm operation on 2,500 acres, a community work program for surrounding parks and cities, and the Correctional Industries recycling program serving the surrounding counties. Ross-Cash Center (R-CC) is located on the grounds of Western Kentucky Correctional Complex in Lyon County and has an operational capacity of 200 female inmates. The facility, which opened in October 2015, is named for two correctional employees killed in the line of duty during the 1980s. Roederer Correctional Complex (RCC) is a medium security institution with an operational capacity of 1,238 inmates located near LaGrange in Oldham County. The institution operates the Department's Assessment and Classification Center, serving all incoming male inmates with the exception of inmates sentenced to capital punishment. The operational capacity includes 200 female assessment center beds, which is a temporary measure to alleviate the female controlled intake population. The institution also operates a full farm operation on approximately 2,800 acres. Luther Luckett Correctional Complex (LLCC) is a medium security institution with an operational capacity of 1,200 inmates, also located near LaGrange in Oldham County. The facility houses two separate institutions: the Department of Correction's prison facility and the Cabinet for Health and Family Services' Kentucky Correctional Psychiatric Center (KCPC). Due to KCPC, the inmate population has a variety of psychological, pharmaceutical, recreational, academic, vocational, and substance abuse programs available. Green River Correctional Complex (GRCC) is a medium security institution with an operational capacity of 982 inmates located near Central City in Muhlenberg County. Northpoint Training Center (NTC) is a medium security institution with an operational capacity of 1,272 inmates located near Danville in Boyle County. The institution operates a prison farm, along with counseling, academic, and vocational programs. Little Sandy Correctional Complex (LSCC) is located near Sandy Hook in Elliott County and will have an operational capacity of 1,882 inmates upon expansion. Programming at the institution consists of basic educational and vocational training classes, as well as psychological services. Correctional industries programs include wood furniture and office seating. Southeast State Correctional Complex (SSCC) is a medium security facility with an operational capacity of 621 inmates located in Wheelwright in Floyd County. This facility is operated by the Commonwealth and is privately owned by CoreCivic and leased to the Commonwealth. Lee Adjustment Center (LAC) is located near Beattyville in Lee County and has an operational capacity of 866 inmates. The Department contracts with CoreCivic for operation of this medium security facility. ## Policy The Governor's budget includes additional General Fund in the amount of $4,000,000 in fiscal year 2027 and $9,000,000 in fiscal year 2028 to support medical cost increases. The Governor's budget includes additional funding in the amount of $3,725,800 in fiscal year 2027 and $7,700,200 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 $3,688,500 and $7,623,200, respectively. ===== PAGE 290 =====
Justice and Public Safety Community Services and Local Facilities
Community Services and Local Facilities
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation263,564,900251,867,100258,358,400230,853,100230,135,500
State Salary and Compensation Allocation3,971,200
Continuing Approp-General Fund1,096,555
Budget Reduction-General Fund(15,750,800)
Reorganization Adjustment490,000
Other(14,639,500)(7,700,000)
Total General Fund254,483,155244,167,100242,607,600230,853,100230,135,500
Restricted Funds
Balance Forward7,693,4946,984,5378,228,9005,394,4002,314,100
Current Receipts4,845,6075,693,3224,501,2005,340,3005,355,100
Non-Revenue Receipts450,0007,742,2007,742,200
Total Restricted Funds12,539,10213,127,85912,730,10018,476,90015,411,400
Federal Fund
Balance Forward(426,731)(26,367)(44,100)
Current Receipts1,136,634809,775918,300874,200874,200
Total Federal Fund709,904783,408874,200874,200874,200
TOTAL SOURCE OF FUNDS267,732,160258,078,367256,211,900250,204,200246,421,100
EXPENDITURES BY CLASS
Personnel Costs88,419,62790,760,27194,919,70093,893,30096,324,200
Operating Expenses11,209,24211,313,31612,608,10013,607,60013,797,200
Grants Loans Benefits160,049,113146,087,095143,289,700140,389,200135,972,100
Capital Outlay1,096,008
TOTAL EXPENDITURES260,773,990248,160,682250,817,500247,890,100246,093,500
EXPENDITURES BY FUND SOURCE
General Fund254,483,155242,434,217242,607,600230,853,100230,135,500
Restricted Funds5,554,5644,898,9417,335,70016,162,80015,083,800
Federal Fund736,270827,524874,200874,200874,200
TOTAL EXPENDITURES260,773,990248,160,682250,817,500247,890,100246,093,500
EXPENDITURES BY UNIT
Probation and Parole Program79,874,76081,598,33987,233,30086,761,40088,847,300
Local Facilities Operations1,474,6711,613,1001,599,0001,587,3001,628,700
Local Facilities - Jail Program125,787,479111,608,018107,550,400105,523,800101,106,700
Community Corrections Commission594,544627,095670,500670,500670,500
Halfway Houses23,302,76522,849,70423,767,10023,767,10023,767,100
Addiction Services23,860,01123,510,57224,123,60023,240,20023,579,900
Reentry Division5,879,7606,353,8535,873,6006,339,8006,493,300
TOTAL EXPENDITURES260,773,990248,160,682250,817,500247,890,100246,093,500
===== PAGE 291 ===== The Community Corrections area is comprised of the Division of Local Facilities, County Jail Program, Halfway House program, Kentucky Corrections Commission, the Division of Reentry, Probation and Parole, and the Division of Addiction Services. Pursuant to KRS Chapter 439, the Halfway House program provides rehabilitation in community residential correctional centers throughout the Commonwealth where inmates are transitioned prior to their release. Pursuant to KRS Chapter 196, the Kentucky Corrections Commission grants funds for the purpose of assisting judges, throughout the Commonwealth, develop alternatives to incarceration. In accordance with KRS 532.260, the Department of Corrections has initiated the Home Incarceration program (HIP). The current average daily population of HIP participants is 211. ## Policy The Department of Corrections estimates a 0.9% percent year-over-year decline, and an 1.8% decline over the biennium, in the number of probationers and parolees. The number of individuals completing their sentence and being discharged has become the most common form of release from the direct supervision of the prison system. Recent data indicates a lower Release to Supervision for a significant number of felons due to increased awards of good-time and educational credits, Mandatory Release Supervision, expanded reentry services such as job placement, counseling, housing support, and Medicaid enrollment upon release. These program initiatives have impacted fewer admissions associated with being returned from supervision.
Fiscal YearProbation and Parole Population
2026 Revised46,586
2027 Estimated46,158
2028 Estimated45,762
Notwithstanding KRS 197.045(6), the base budget includes General Fund in the amount of $12,000,000 in each fiscal year to support payments for program completions resulting in sentencing credit as prescribed in KRS 197.045(6)(a), (b), and (c). The Governor's budget includes additional funding in the amount of $1,508,700 in fiscal year 2027 and $3,109,300 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 $1,493,600 and $3,078,200, respectively. ===== PAGE 292 =====
Justice and Public Safety\nLocal Jail Support
Actual\nFY 2024Actual\nFY 2025Revised\nFY 2026Recommended\nFY 2027Recommended\nFY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation16,788,60016,788,60016,788,60016,284,90016,284,900
Continuing Approp-General Fund385,621719
Budget Reduction-General Fund(503,700)
Other300,000500,000
Total General Fund17,474,22117,289,31916,284,90016,284,90016,284,900
TOTAL SOURCE OF FUNDS17,474,22117,289,31916,284,90016,284,90016,284,900
EXPENDITURES BY CLASS
Personnel Costs22,84133,22360,00060,00060,000
Operating Expenses405,000399,000405,000405,000405,000
Grants Loans Benefits17,045,66116,857,01915,819,90015,819,90015,819,900
TOTAL EXPENDITURES17,473,50217,289,24216,284,90016,284,90016,284,900
EXPENDITURES BY FUND SOURCE
General Fund17,473,50217,289,24216,284,90016,284,90016,284,900
TOTAL EXPENDITURES17,473,50217,289,24216,284,90016,284,90016,284,900
EXPENDITURES BY UNIT
Local Jail Allotment10,048,80010,048,80010,048,80010,048,80010,048,800
Restricted Medical792,800792,800792,800792,800792,800
Jailers' Allowance427,841432,223465,000465,000465,000
Catastrophic Medical1,573,8611,385,219851,800851,800851,800
Local Corrections Assistance Fund4,630,2004,630,2004,126,5004,126,5004,126,500
TOTAL EXPENDITURES17,473,50217,289,24216,284,90016,284,90016,284,900
The Local Jail Support program consists of five funds used to assist counties in local jail operations: Local Jail Allotment, Restricted Medical Allotment, Jailer's Allowance, Local Corrections Assistance Fund and Catastrophic Medical. These programs were part of the Jail Reform package passed in the 1982 and 1984 Regular Sessions of the General Assembly. The Local Jail Allotment, pursuant to KRS 441.206, was established for the care and maintenance of prisoners charged with or convicted of violations of state law. Funds appropriated for the Jail Allotment and Restricted Medical programs are distributed to each county based upon the formula in KRS 441.206. The Jailer's Allowance program, pursuant to KRS 441.115, trains jailers and jail personnel. No fee is charged for this training. Three hundred dollars ($300) per month is paid to jailers to help defray the costs of participation in this training program. Expense allowance payments are discontinued if the jailer fails to satisfactorily complete annual continuing training. The Catastrophic Medical program, pursuant to KRS 441.045, provides funds that assist counties with costs of providing necessary medical, dental, or psychological care beyond routine care and diagnostic services. When the cost of providing such services exceeds $1,000, the county is reimbursed. Initial reimbursements are limited by the maximum payments allowed for services under the Kentucky Medical Assistance Program. ===== PAGE 293 ===== ## Policy The base budget includes General Fund in each fiscal year for jailer expense allowance to the statutory amount of $3,600. The base budget includes General Fund appropriation of $860,000 each fiscal year to provide a monthly payment of an annual amount of $20,000 to each county with a Life Safety or Closed Jails Program. The payment shall be in addition to the payment required by KRS 441.206(2). Ine base budget includes General Fund appropriation in the amount of $792,800 each fiscal year for medical care contracts to be distributed, upon approval of the Department of Corrections, to counties by the formula codified in KRS 441.206, and $851,800 each fiscal year, on a partial reimbursement basis, for medical claims in excess of the statutory threshold pursuant to KRS 441.045. ===== PAGE 294 =====
Justice and Public Safety Public Advocacy
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS General Fund
Regular Appropriation82,432,90096,178,70098,448,50093,413,30095,240,300
State Salary and Compensation Allocation2,592,90014,20021,500 (2,954,100)
Budget Reduction-General Fund
Total General Fund85,025,80096,192,90095,515,90093,413,30095,240,300
Restricted Funds
Balance Forward1,888,0762,226,8422,225,1002,225,1002,171,400
Current Receipts4,849,8664,760,6504,511,4004,511,4004,511,400
Total Restricted Funds6,737,9426,987,4936,736,5006,736,5006,682,800
Federal Fund
Balance Forward(141,011)(252,831)(50,300)
Current Receipts2,148,7982,996,3042,387,5002,392,4002,392,400
Total Federal Fund2,007,7882,743,4722,337,2002,392,4002,392,400
TOTAL SOURCE OF FUNDS93,771,530105,923,865104,589,600102,542,200104,315,500
EXPENDITURES BY CLASS
Personnel Costs81,647,90290,782,15089,505,80087,108,00088,992,600
Operating Expenses10,149,21812,944,56112,858,50013,262,60013,262,600
Grants Loans Benefits40014,103200200200
Capital Outlay8,229
TOTAL EXPENDITURES91,797,519103,749,043102,364,500100,370,800102,255,400
EXPENDITURES BY FUND SOURCE
General Fund85,025,80096,192,90095,515,90093,413,30095,240,300
Restricted Funds4,511,1004,762,3754,511,4004,565,1004,622,700
Federal Fund2,260,6192,793,7692,337,2002,392,4002,392,400
TOTAL EXPENDITURES91,797,519103,749,043102,364,500100,370,800102,255,400
EXPENDITURES BY UNIT
Office of the Public Advocate2,150,0003,319,5003,375,7003,293,8003,344,500
Defense Services83,305,25692,809,63291,267,90089,414,30091,133,300
Conflict Services343,184765,8431,039,8001,008,6001,032,400
Law Operations2,401,2092,990,7003,060,9002,983,1003,047,800
Protection and Advocacy3,597,8713,863,3693,620,2003,671,0003,697,400
TOTAL EXPENDITURES91,797,519103,749,043102,364,500100,370,800102,255,400
The United States and Kentucky Constitutions guarantee all Americans the right to the assistance of counsel when charged with a crime. These provisions also require that individuals who cannot afford an attorney, and who face potential loss of liberty, be provided with an attorney by the state. The Kentucky Department of Public Advocacy (DPA) created under KRS Chapter 31, fulfills this mandate by representing indigent persons accused of crimes or facing involuntary hospitalization for a mental illness or condition. Kentucky's public defender services are delivered through a statewide system of DPA offices staffed by full-time employed public defenders and supplemented by private attorneys for cases that cannot be handled by DPA attorneys, usually due to conflicts of interest. As of July 1, 2024, DPA assumed responsibility for defender services in all 120 Kentucky counties, following the enactment of 2023 House Bill 568, which merged the Louisville-Jefferson County Public Defender Office into the Department, completing the unification of the statewide public defender system in Kentucky. The Department, under the direction of the Public Advocate, is attached to the Justice and Public Safety Cabinet for administrative purposes. ===== PAGE 295 ===== The Public Advocacy Commission serves as the governing board of the Department. It consists of twelve members: the Dean or a designee from each of the three Kentucky law schools; three members appointed by the Governor from recommendations of the Kentucky Bar Association; one member appointed by the Governor from recommendations by the Protection and Advocacy Advisory Boards; three at-large members appointed by the Governor; and two members appointed by the Kentucky Supreme Court. The Commission ensures that DPA maintains its professional independence and delivers professional representation of individual clients consistent with the American Bar Association's Ten Principles of a Public Defense Delivery System (2002). The Office of the Public Advocate is responsible for the oversight of the agency and includes the Public Advocate, Deputy Public Advocate, and General Counsel who manage compliance, policy development, and legislative advocacy for the Department. The Education, Recruitment, and Strategic Planning Division is responsible for attorney and defender staff training and long-term planning for the Department. The Division also oversees DPA's recruiting activities to attract attorneys and law school graduates to be public defenders. The Law Operations Division provides budget, personnel, administrative, technology, facility oversight, library services, research, archive services and management support for the Department and its offices across the state. The Trial Division represents all needy persons accused of crimes punishable by loss of liberty, persons accused of juvenile delinquency and status offenses, and all needy persons faced with involuntary commitments due to mental state or condition in all of Kentucky's 120 counties. This includes district, circuit, drug, juvenile, mental health, veterans and family court venues. The Post-Trial Division provides mandated defender services after conviction. These services include providing counsel to indigent persons on appeal to the Kentucky Supreme Court and Court of Appeals, to incarcerated persons on post-conviction actions in state and federal court, and to all juveniles in treatment facilities. The Division of Conflict Services was established to build a statewide indigent conflict system and improve the quality of the departments existing conflict defense program that supports individuals represented through contract conflict counsel statewide. Kentucky Protection & Advocacy (P&A), a division within the Department of Public Advocacy attached to the Department for administrative purposes only, was established pursuant to Public Law 99-319 (42 USC 10805 et seq.), Public Law 106-402 (42 USC § 15042 et seq.), and KRS 31.010 (2). P&A seeks legal, administrative, and other appropriate remedies to protect and promote the rights of Kentuckyians with disabilities. The majority of funds in this division's budget are federal funds that have strict non-supplanting requirements. ## Policy The Governor’s budget includes additional funding in the amount of $1,385,100 in fiscal year 2027 and $2,844,600 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 $1,315,800 and $2,702,400, respectively. ===== PAGE 296 ===== Personnel ===== PAGE 297 =====
Actual FY 2024Personnel Personnel
Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS General Fund
Regular Appropriation89,924,80075,657,30069,750,40069,691,60069,691,600
State Salary and Compensation Allocation(70,658,800)(1,500,000)(1,500,000)
Special Appropriation65,851,800
Total General Fund88,117,80077,157,30069,750,40069,691,60069,691,600
Restricted Funds
Balance Forward40,064,33345,656,40248,019,80040,933,60033,409,900
Current Receipts32,829,24731,372,57430,425,00027,191,90027,244,400
Non-Revenue Receipts26,501,30025,889,00428,774,20032,555,90032,872,700
Total Restricted Funds99,394,881102,917,980107,219,000100,681,40093,527,000
Road Fund
Regular Appropriation1,129,000
State Salary and Compensation Allocation(12,510,400)
Special Appropriation11,381,400
Total Road Fund
TOTAL SOURCE OF FUNDS187,512,681180,075,280176,969,400170,373,000163,218,600
EXPENDITURES BY CLASS
Personnel Costs48,760,52248,482,88458,212,60059,517,40060,063,500
Operating Expenses5,477,9576,415,2818,072,8007,754,1007,713,500
Grants Loans Benefits84,617,80075,657,19269,750,40069,691,60069,691,600
TOTAL EXPENDITURES138,856,279130,555,357136,035,800136,963,100137,468,600
EXPENDITURES BY FUND SOURCE
General Fund85,117,80075,657,19269,750,40069,691,60069,691,600
Restricted Funds53,738,47954,898,16566,285,40067,271,50067,777,000
TOTAL EXPENDITURES138,856,279130,555,357136,035,800136,963,100137,468,600
EXPENDITURES BY UNIT
General Operations28,125,35728,201,82733,360,50034,492,60034,938,700
Public Employees Deferred Compensation Authority7,509,4367,535,5948,520,0008,397,0008,439,200
Workers' Compensation Benefits and Reserve18,603,68719,160,74424,404,90024,381,90024,399,100
Fixed Allocation Non-Hazardous Pension Fund84,617,80075,657,19269,750,40069,691,60069,691,600
State Salary and Compensation Fund
TOTAL EXPENDITURES138,856,279130,555,357136,035,800136,963,100137,468,600
The Personnel Cabinet provides human resources management for Kentucky state government agencies. The Cabinet coordinates the personnel and payroll functions for most of state government. State employee benefit packages, such as health and life insurance, workers' compensation, and deferred compensation programs are coordinated by the Cabinet. State government's employee application process, as well as recruiting and retention functions are also coordinated by the Cabinet. ===== PAGE 298 ===== Currently, the Personnel Cabinet is comprised of five appropriation units: General Operations, Public Employees Deferred Compensation Authority, Workers' Compensation Benefits and Reserve, the State Salary and Compensation Fund and the Fixed Allocation Non-Hazardous Pension Fund. The Department of Personnel was created in 1960 under KRS 18.160. At the time of its inception, it was headed by a personnel board consisting of five members appointed by the Governor. The Board had the responsibility to forward to the Governor a list of qualified applicants for the position of Commissioner of Personnel. In 1972, the legislature made the Commissioner of Personnel a direct appointee of the Governor without nominations from the Personnel Board. In 1982, KRS 18.160 was repealed and re-enacted under KRS chapter 18A.015. Legislation enacted that year also authorized the Department to charge other state agencies their pro rata share of costs associated with the administration of the Executive Branch's personnel-related functions. In 1998, the General Assembly elevated the Department to Cabinet status. ===== PAGE 299 =====
Personnel
General Operations
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
State Salary and Compensation
Allocation
Special Appropriation500,000
Total General Fund500,000
Restricted Funds
Balance Forward4,131,5474,841,6354,456,4001,828,2001,711,000
Current Receipts1,649,1441,737,6241,763,1001,619,5001,672,000
Non-Revenue Receipts26,686,30026,079,00428,969,20032,755,90033,077,700
Total Restricted Funds32,466,99232,658,26235,188,70036,203,60036,460,700
TOTAL SOURCE OF FUNDS32,966,99232,658,26235,188,70036,203,60036,460,700
EXPENDITURES BY CLASS
Personnel Costs23,062,46122,203,00825,784,10027,220,30027,707,000
Operating Expenses5,062,8965,998,8197,576,4007,272,3007,231,700
TOTAL EXPENDITURES28,125,35728,201,82733,360,50034,492,60034,938,700
EXPENDITURES BY FUND SOURCE
General Fund500,000
Restricted Funds27,625,35728,201,82733,360,50034,492,60034,938,700
TOTAL EXPENDITURES28,125,35728,201,82733,360,50034,492,60034,938,700
EXPENDITURES BY UNIT
General Administration11,150,80111,870,38514,643,80015,122,30015,148,000
Governmental Service Center903,610963,3831,016,2001,017,2001,086,500
Employee Relations709,278702,549779,700751,500766,800
Employee Insurance9,081,0839,424,95010,256,00010,203,90010,393,500
Personnel Administration6,280,5855,240,5606,664,8007,397,7007,543,900
TOTAL EXPENDITURES28,125,35728,201,82733,360,50034,492,60034,938,700
The General Operations unit includes the Office of the Secretary, the Department of Human Resources Administration and the Department of Employee Insurance. The Secretary of the Personnel Cabinet is the executive and administrative head of the cabinet and supervises all activities of the cabinet. The Office of the Secretary includes: the Office of Administrative Services, the Office of Legal Services, the Office for Employee Relations, the Office of Employee Engagement, and Training, and the Office of Public Affairs. The Office of Administrative Services' (OAS) responsibilities include overseeing the internal operations of the Cabinet, including personnel related matters, budgeting, accounting, property management, coordinating information technology for the Cabinet and procurement functions. In addition, the development and implementation of the replacement benefits, personnel and payroll system is coordinated through the OAS Division of Technology Services. The Office of Legal Services provides legal services relating to the enforcement and application of state and federal laws and regulations governing employment with both the Cabinet and other Executive Branch agencies. ===== PAGE 300 ===== The Office of Employee Relations administers the Kentucky Employee Assistance Program which provides counseling, referral and resource assistance to employees; the employee suggestion system; a mediation program to help resolve employment problems; the state safety program; and the self-insured Workers' Compensation program. The Workers' Compensation program provides benefits to workers injured on the job and manages a return-to-work program. The program provides coverage for state employees, the Kentucky Community Technical College System, volunteer firefighters, volunteer ambulance personnel, and various local government entities. The Office of Employee Engagement and Training is responsible for administering the Commonwealth's affirmative action plan established in 18A.138, equal employment and the Governor's Leadership program. The Office of Public Affairs is responsible for setting the strategic direction for the Cabinet, improving processes, developing services, and planning future service offerings. The Department of Human Resources Administration consists of two divisions: the Division of Employee Management and the Division of Career Opportunities and has oversight of the Governmental Services Center. The responsibilities of this department include recruiting, counseling, and certifying persons for employment with the Commonwealth; maintaining the classification and compensation system; auditing and certifying state payrolls; preparing and maintaining the official personnel and payroll records; government-wide training, consultation, and organizational development, including the coordination of the Commonwealth's strategic planning, performance measurement processes and its responsible for maintaining the employee performance management system. The Department of Employee Insurance manages state government's self-insured health insurance program, the Kentucky Employees' Health Plan and the life insurance benefits for state employees. The Health Plan provides health insurance coverage for state employees, state and teacher retirees that are not yet Medicare eligible, local boards of education, local health departments, and other public and quasi-public agencies. The Department also provides administrative support to the Group Health Insurance Board under KRS 18A.226 and 18A.227. The Personnel Cabinet shall collect a benefits assessment per month per employee eligible for health insurance coverage in the state group for duly authorized use by the Personnel Cabinet in administering its statutory and administrative responsibilities, including but not limited to administration of the Commonwealth's health insurance program. ## Policy The Governor's budget includes additional funding from an internal service fund in the amount of $974,200 in fiscal year 2027 and $1,002,300 in fiscal year 2028 to fund positions for a centralized payroll group responsible for complex payroll functions for Kentucky state government. The Governor's budget includes additional funding in the amount of $315,700 in fiscal year 2027 and $648,500 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 301 =====
Personnel Public Employees Deferred Compensation Authority
Public Employees Deferred Compensation Authority
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward12,029,90114,040,77014,317,30012,659,20013,734,600
Current Receipts9,612,8057,907,0756,959,4009,572,4009,572,400
Non-Revenue Receipts(92,500)(95,000)(97,500)(100,000)(102,500)
Total Restricted Funds21,550,20621,852,84521,179,20022,131,60023,204,500
TOTAL SOURCE OF FUNDS21,550,20621,852,84521,179,20022,131,60023,204,500
EXPENDITURES BY CLASS
Personnel Costs7,161,1127,187,8548,107,1007,995,3008,037,500
Operating Expenses348,323347,740412,900401,700401,700
TOTAL EXPENDITURES7,509,4367,535,5948,520,0008,397,0008,439,200
EXPENDITURES BY FUND SOURCE
Restricted Funds7,509,4367,535,5948,520,0008,397,0008,439,200
TOTAL EXPENDITURES7,509,4367,535,5948,520,0008,397,0008,439,200
EXPENDITURES BY UNIT
Public Employees Deferred Compensation Authority7,509,4367,535,5948,520,0008,397,0008,439,200
TOTAL EXPENDITURES7,509,4367,535,5948,520,0008,397,0008,439,200
The Kentucky Public Employees Deferred Compensation Authority administers tax sheltered, supplemental retirement savings programs as established in the U.S. Internal Revenue Code Sections 457, 401(k), Roth 401(k), and 403(b) and in accordance with KRS 18A.230-18A.350. These programs are an optional benefit for Kentucky's public employees. ## Policy The Governor's budget includes additional funding in the amount of $30,400 in fiscal year 2027 and $62,400 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 302 =====
Personnel
Workers' Compensation Benefits and Reserve
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward23,902,88526,773,99729,246,10026,446,20017,964,300
Current Receipts21,567,29821,727,87621,702,50016,000,00016,000,000
Non-Revenue Receipts(92,500)(95,000)(97,500)(100,000)(102,500)
Total Restricted Funds45,377,68448,406,87350,851,10042,346,20033,861,800
TOTAL SOURCE OF FUNDS45,377,68448,406,87350,851,10042,346,20033,861,800
EXPENDITURES BY CLASS
Personnel Costs18,536,94919,092,02224,321,40024,301,80024,319,000
Operating Expenses66,73768,72283,50080,10080,100
TOTAL EXPENDITURES18,603,68719,160,74424,404,90024,381,90024,399,100
EXPENDITURES BY FUND SOURCE
Restricted Funds18,603,68719,160,74424,404,90024,381,90024,399,100
TOTAL EXPENDITURES18,603,68719,160,74424,404,90024,381,90024,399,100
EXPENDITURES BY UNIT
Workers' Compensation Benefits and Reserve18,603,68719,160,74424,404,90024,381,90024,399,100
TOTAL EXPENDITURES18,603,68719,160,74424,404,90024,381,90024,399,100
Created in 1990, the Workers' Compensation Benefits and Reserve is state government's self-insured Workers' Compensation program. The program provides coverage to the executive, legislative, and judicial branches of government, but excludes the Transportation Cabinet and all state universities. The program also covers the Kentucky Community and Technical College System, volunteer firefighters, volunteer ambulance personnel, and employees of some county clerk's or sheriff's offices when the county's population is 70,000 or more. Workers' Compensation includes a return-to-work program for injured employees, managed care, and a statewide safety program. The revenue accruing to the program is derived from participating agencies based upon the claims history of the agency and the number of covered employees. Claims history is calculated based upon a three year running average. ## Policy The Governor's budget includes additional funding in the amount of $10,500 in fiscal year 2027 and $21,700 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 303 =====
Personnel
Fixed Allocation\nActual\nFY 2024Non-Hazardous\nActual\nFY 2025Pension Fund\nRevised\nFY 2026Recommended\nFY 2027Recommended\nFY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation84,617,80075,657,30069,750,40069,691,60069,691,600
Total General Fund84,617,80075,657,30069,750,40069,691,60069,691,600
TOTAL SOURCE OF FUNDS84,617,80075,657,30069,750,40069,691,60069,691,600
EXPENDITURES BY CLASS
Grants Loans Benefits84,617,80075,657,19269,750,40069,691,60069,691,600
TOTAL EXPENDITURES84,617,80075,657,19269,750,40069,691,60069,691,600
EXPENDITURES BY FUND SOURCE
General Fund84,617,80075,657,19269,750,40069,691,60069,691,600
TOTAL EXPENDITURES84,617,80075,657,19269,750,40069,691,60069,691,600
EXPENDITURES BY UNIT
Fixed Allocation Non-Hazardous
Pension Fund84,617,80075,657,19269,750,40069,691,60069,691,600
TOTAL EXPENDITURES84,617,80075,657,19269,750,40069,691,60069,691,600
The State Fixed Allocation Pension Fund is a statewide pool to provide the additional funds necessary for state agencies to finance the increased costs of the fixed allocation non-hazardous retirement plan's employer contributions. The Fixed Allocation Non-Hazardous Pension Fund is a statewide pool of $69,691,600 in each fiscal year from the General Fund for quasi-governmental entities to continue the baseline subsidy for employer contributions and provide the additional funds necessary to finance the increased costs attributable to the shift to a fixed allocation for the unfunded liability of the nonhazardous retirement plan's employer contributions. The fixed allocation subsidy for Public Health Departments is 50 percent of the fiscal year 2022 subsidy in fiscal years 2027 and 2028. The fixed allocation subsidy for Community Mental Health Centers and Non-P1 Agencies is 75 percent of the fiscal year 2022 subsidy in fiscal years 2027 and 2028. This 2021 legislation made a significant change in the method of funding the unfunded actuarially accrued liability by assigning a fixed dollar allocation to each participating entity instead of by a contribution rate against actual payroll amounts. This reform addresses the longstanding trend of quasi-governmental entities purposefully reducing the participation of their workers in the nonhazardous retirement system and avoiding those costs. The funds are allocated as follows:
Fiscal Year 2027Baseline SubsidyFixed Allocation SubsidyTotal
Community Mental Health Centers$ 18,882,100$ 8,842,300$ 27,724,400
Public Health Departments$ 25,151,300$ 16,432,300$ 41,583,600
Non-P1 Agencies$ 332,100$ 51,500$ 383,600
Total44,365,50025,326,100$ 69,691,600
Fiscal Year 2028
Community Mental Health Centers$ 18,882,100$ 8,842,300$ 27,724,400
Public Health Departments$ 25,151,300$ 16,432,300$ 41,583,600
Non-P1 Agencies$ 332,100$ 51,500$ 383,600
Total44,365,50025,326,100$ 69,691,600
General Fund amounts to cover additional costs were directly appropriated to comprehensive universities and the Kentucky Community Technical College System, and the County Attorney offices. ===== PAGE 304 =====
Personnel
State Salary and Compensation Fund
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation5,307,000
State Salary and Compensation Allocation(70,658,800)(1,500,000)(1,500,000)
Special Appropriation65,351,800
Continuing Approp.-General Fund3,000,0001,500,000
Other3,000,000
Total General Fund3,000,0001,500,000
Restricted Funds
Non-Revenue Receipts
Total Restricted Funds
Road Fund
Regular Appropriation1,129,000
State Salary and Compensation Allocation(12,510,400)
Special Appropriation11,381,400
Total Road Fund
TOTAL SOURCE OF FUNDS3,000,0001,500,000
EXPENDITURES BY CLASS
Grants Loans Benefits
TOTAL EXPENDITURES
EXPENDITURES BY FUND SOURCE
General Fund
Restricted Funds
TOTAL EXPENDITURES
EXPENDITURES BY UNIT
State Salary and Compensation Fund
TOTAL EXPENDITURES
The State Salary and Compensation Fund is a statewide pool to provide the additional funds necessary for 2023-2024 employer contributions of state agency health insurance benefits. House Bill 6 from the 2024 Regular Session of the General Assembly included funding for fiscal year 2025 and fiscal year 2026 for state employee pay raises in the information technology job series pursuant to the completed analysis by the Personnel Cabinet within their job classification review process. The General Fund in fiscal year 2025 and fiscal year 2026 of $1,500,000 each fiscal year was transferred from the General Fund appropriation of $200,000,000 in fiscal year 2024 set out in 2022 Ky. Acts ch. 199, Part I, N., 1. ===== PAGE 305 ===== Postsecondary Education ===== PAGE 306 =====
Postsecondary Education
Postsecondary Education
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,440,555,7001,513,695,6001,492,094,3001,479,311,3001,482,942,600
State Salary and Compensation Allocation249,000
Special Appropriation10,000,000
Current Year Appropriation4,107,500
Continuing Approp-General Fund43,503,19714,571,32420,795,2003,772,7001,361,300
Budget Reduction-General Fund(619,300)
Reorganization Adjustment(1,799,700)
Other3,000,000
Total General Fund1,499,615,6971,528,266,9241,512,270,2001,483,084,0001,484,303,900
Tobacco Fund
Tobacco Settlement - Phase I6,250,0005,843,2006,250,0006,250,0005,480,300
Total Tobacco Fund6,250,0005,843,2006,250,0006,250,0005,480,300
Restricted Funds
Balance Forward16,948,51912,872,21931,688,40025,942,00015,629,400
Current Receipts8,682,354,8719,539,109,34711,016,606,60011,855,269,70012,734,531,500
Non-Revenue Receipts12,622,600114,652,584104,594,10039,122,10036,830,700
Total Restricted Funds8,711,925,9909,666,634,15111,152,889,10011,920,333,80012,786,991,600
Federal Fund
Balance Forward(572,810)(827,933)(2,600)
Current Receipts1,020,597,4841,086,265,8711,084,178,5001,123,312,5001,148,968,000
Total Federal Fund1,020,024,6741,085,437,9381,084,175,9001,123,312,5001,148,968,000
TOTAL SOURCE OF FUNDS11,237,816,36112,286,182,21313,755,585,20014,532,980,30015,425,743,800
EXPENDITURES BY CLASS
Personnel Costs5,227,616,3405,766,633,9806,059,495,4006,432,277,4006,839,536,200
Operating Expenses3,581,898,8013,973,260,9565,100,100,1005,499,457,1005,925,819,400
Grants Loans Benefits1,034,700,5431,054,924,0661,799,824,0001,759,625,9001,771,896,600
Debt Service267,464,635262,748,996252,165,400264,499,400268,582,300
Capital Outlay525,571,869554,226,468514,285,600560,129,800613,564,200
TOTAL EXPENDITURES10,637,252,18911,611,794,46713,725,870,50014,515,989,60015,419,398,700
EXPENDITURES BY FUND SOURCE
General Fund1,485,318,7771,504,525,7231,508,497,5001,481,722,7001,483,666,000
Tobacco Fund6,250,0005,843,2006,250,0006,250,0005,480,300
Restricted Funds8,124,830,8059,015,974,82911,126,947,10011,904,704,40012,781,284,400
Federal Fund1,020,852,6071,085,450,7141,084,175,9001,123,312,5001,148,968,000
TOTAL EXPENDITURES10,637,252,18911,611,794,46713,725,870,50014,515,989,60015,419,398,700
EXPENDITURES BY UNIT
Council on Postsecondary Education51,964,87533,434,89143,087,30040,070,30038,367,400
Kentucky Higher Education Assistance Authority409,462,339477,922,913524,342,200455,256,300455,526,100
Postsecondary Education Institutions10,175,824,97511,100,436,66313,158,441,00014,020,663,00014,925,505,200
TOTAL EXPENDITURES10,637,252,18911,611,794,46713,725,870,50014,515,989,60015,419,398,700
===== PAGE 307 =====
Postsecondary Education
Council on Postsecondary Education
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation17,871,80022,452,90017,920,50013,981,80017,613,100
State Salary and Compensation249,000
Special Appropriation10,000,000
Current Year Appropriation2,000,000
Continuing Approp-General Fund1,093,5832,000,0007,143,3002,058,00058,000
Budget Reduction-General Fund(439,300)
Total General Fund31,214,38324,452,90024,624,50016,039,80017,671,100
Tobacco Fund
Tobacco Settlement - Phase I6,250,0005,843,2006,250,0006,250,0005,480,300
Total Tobacco Fund6,250,0005,843,2006,250,0006,250,0005,480,300
Restricted Funds
Balance Forward1,622,9401,701,8971,969,2001,496,300575,700
Current Receipts881,0212,061,5384,775,9004,725,0004,758,400
Non-Revenue Receipts2,489,1792,233,8422,951,2006,064,1003,756,500
Total Restricted Funds4,993,1405,997,2779,696,30012,285,4009,090,600
Federal Fund
Balance Forward(333,506)(690,040)(2,600)
Current Receipts13,251,1877,194,8996,073,4006,128,8006,190,100
Total Federal Fund12,917,6816,504,8596,070,8006,128,8006,190,100
TOTAL SOURCE OF FUNDS55,375,20442,798,23646,641,60040,704,00038,432,100
EXPENDITURES BY CLASS
Personnel Costs12,601,18313,037,13312,924,60012,717,20012,950,100
Operating Expenses2,137,9742,737,1592,318,4002,284,0002,249,700
Grants Loans Benefits33,886,91517,660,60027,844,30025,069,10023,167,600
Debt Service3,224,000
Capital Outlay114,803
TOTAL EXPENDITURES51,964,87533,434,89143,087,30040,070,30038,367,400
EXPENDITURES BY FUND SOURCE
General Fund28,815,91117,056,09522,566,50015,981,80017,671,100
Tobacco Fund6,250,0005,843,2006,250,0006,250,0005,480,300
Restricted Funds3,291,2434,028,1258,200,00011,709,7009,025,900
Federal Fund13,607,7216,507,4716,070,8006,128,8006,190,100
TOTAL EXPENDITURES51,964,87533,434,89143,087,30040,070,30038,367,400
EXPENDITURES BY UNIT
Agency Operations7,076,1369,163,15710,947,70010,931,10011,067,300
Licensure427,195500,000600,000610,900618,900
Pass Through Programs22,520,22412,012,67612,810,10012,524,80012,524,800
Federal Programs10,531,9074,495,5815,041,3005,258,3006,190,100
Strategic Investment and Incentive Funding Program11,409,4137,263,47713,688,20010,745,2007,966,300
TOTAL EXPENDITURES51,964,87533,434,89143,087,30040,070,30038,367,400
===== PAGE 308 ===== The Council on Postsecondary Education coordinates public postsecondary education, bringing a statewide perspective to budget and policy issues and planning. The Council both guides the system and serves as an advocate for the postsecondary education sector of the state's education enterprise. The Council also licenses private non-profit and proprietary bachelor's degree-granting institutions. ## The Council’s statutory responsibilities include: development of a strategic plan for an efficient and effective system of postsecondary education that provides statewide access without unnecessary competition and duplication, recognizing both public and independent institutions; implementation of the strategic plan through public accountability, including reporting and evaluation of institutional performance; • approval of the creation, modification, and elimination of programs and degrees and transferability of credits earned; approval of tuition rates and admission requirements; - approval of capital projects and real property acquisitions by institutions; training and orientation of new members of institutional governing boards; - liaison between postsecondary education institutions and the Kentucky Department of Education, the Education Professional Standards Board, the Education and Labor Cabinet. and the Cabinet for Economic Development • operation of the Kentucky Virtual High School and the Kentucky Virtual Library; coordination and acquisition of technology resources for broadest access and cost efficiency; • collection of data and research and analysis concerning the overall needs of postsecondary education; assistance in the development of the postsecondary institutions' biennial budget requests and recommendations concerning operating and capital appropriations to the Governor and the General Assembly; and implementation of the Postsecondary Education Performance Funding Model. ## Policy The Governor's budget includes additional funding in the amount of $175,800 in fiscal year 2027 and $361,400 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. The General Fund portion is $102,000 and $209,600 respectively. ===== PAGE 309 =====
Postsecondary Education Council on Postsecondary Education Agency Operations
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation6,273,4006,318,5006,544,1002,832,3006,430,000
State Salary and Compensation249,000
Current Year Appropriation2,000,000
Continuing Approp-General Fund2,000,000
Budget Reduction-General Fund(196,400)
Total General Fund8,522,4008,318,5006,347,7002,832,3006,430,000
Restricted Funds
Balance Forward895,693614,2371,066,100771,300397,800
Current Receipts272,3321,546,5014,305,2004,248,0004,275,500
Non-Revenue Receipts3,477,300
Total Restricted Funds1,168,0252,160,7385,371,3008,496,6004,673,300
TOTAL SOURCE OF FUNDS9,690,42510,479,23811,719,00011,328,90011,103,300
EXPENDITURES BY CLASS
Personnel Costs5,872,3497,577,7737,453,7007,451,7007,587,900
Operating Expenses1,088,9841,583,2731,002,400998,500998,500
Grants Loans Benefits2,1112,491,6002,480,9002,480,900
Capital Outlay114,803
TOTAL EXPENDITURES7,076,1359,163,15710,947,70010,931,10011,067,300
EXPENDITURES BY FUND SOURCE
General Fund6,522,3488,068,5006,347,7002,832,3006,430,000
Restricted Funds553,7881,094,6574,600,0008,098,8004,637,300
TOTAL EXPENDITURES7,076,1369,163,15710,947,70010,931,10011,067,300
The Agency Operations program provides administrative support and governance for the organization. Activities of the professional staff include review of academic programs, admission standards, tuition rates, and credit transfer procedures; research and data analysis; financial management and strategic planning; and aligning higher education initiatives with workforce needs. Also included in this budget are the business functions of the agency such as human resources, communications, budget, accounting, and purchasing, as well as board relations. ===== PAGE 310 =====
Postsecondary Education Council on Postsecondary Education Licensure
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward694,957865,562867,500725,000177,900
Current Receipts597,800501,900457,500463,800469,700
Non-Revenue Receipts(400,000)
Total Restricted Funds1,292,7571,367,4621,325,000788,800647,600
TOTAL SOURCE OF FUNDS1,292,7571,367,4621,325,000788,800647,600
EXPENDITURES BY CLASS
Personnel Costs425,817335,392327,100337,800345,800
Operating Expenses1,378164,608272,900273,100273,100
TOTAL EXPENDITURES427,195500,000600,000610,900618,900
EXPENDITURES BY FUND SOURCE
Restricted Funds427,195500,000600,000610,900618,900
TOTAL EXPENDITURES427,195500,000600,000610,900618,900
This unit manages the licensure of both independent non-profit and for-profit postsecondary institutions that grant baccalaureate degrees and higher in the Commonwealth of Kentucky. It also approves new degree programs offered by these institutions. Initial licensing and renewal fees are based on the total number of students and the years licensed in the state. ===== PAGE 311 =====
Postsecondary Education
Council on Postsecondary Education
Pass Through Programs
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation3,264,8004,024,8003,274,8003,274,8003,274,800
Special Appropriation10,000,000
Continuing Approp-General Fund1,093,583285,300
Total General Fund14,358,3834,024,8003,560,1003,274,8003,274,800
Tobacco Fund
Tobacco Settlement - Phase I6,250,0005,843,2006,250,0006,250,0005,480,300
Total Tobacco Fund6,250,0005,843,2006,250,0006,250,0005,480,300
Restricted Funds
Balance Forward32,291222,09735,600
Current Receipts10,88913,13713,20013,20013,200
Non-Revenue Receipts2,489,1792,233,8422,951,2002,986,8003,756,500
Total Restricted Funds2,532,3582,469,0763,000,0003,000,0003,769,700
TOTAL SOURCE OF FUNDS23,140,74112,337,07612,810,10012,524,80012,524,800
EXPENDITURES BY CLASS
Personnel Costs661,758453,194285,300
Operating Expenses248,205232,813224,800224,800224,800
Grants Loans Benefits21,610,26111,326,66812,300,00012,300,00012,300,000
TOTAL EXPENDITURES22,520,22412,012,67612,810,10012,524,80012,524,800
EXPENDITURES BY FUND SOURCE
General Fund13,959,9633,736,0083,560,1003,274,8003,274,800
Tobacco Fund6,250,0005,843,2006,250,0006,250,0005,480,300
Restricted Funds2,310,2612,433,4683,000,0003,000,0003,769,700
TOTAL EXPENDITURES22,520,22412,012,67612,810,10012,524,80012,524,800
EXPENDITURES BY UNIT
Contract Spaces214,800221,271224,800224,800224,800
SREB Doctoral Scholars Program50,00050,00050,00050,00050,000
Cancer Research Insts Mtchg Fd2,310,2612,433,4683,000,0003,000,0003,000,000
Spinal Cord and Head Injury Research2,000,0002,000,0002,000,0002,000,0002,000,000
Ovarian Cancer Screening1,000,0001,000,0001,000,0001,000,0001,000,000
Cancer Research and Screening6,250,0005,843,2006,250,0006,250,0006,250,000
Kentucky State University Fiscal Stabilization10,695,163464,737285,300
TOTAL EXPENDITURES22,520,22412,012,67612,810,10012,524,80012,524,800
Funds are appropriated to the Council on Postsecondary Education and subsequently "passed through" to other agencies or entities. The Council monitors the implementation of the programs but is not responsible for actual day to day operations. The State SREB Membership Program covers Kentucky's membership dues in the Southern Regional Education Board (SREB). Kentucky has participated in the regional compact of southern states for education services since 1950. The purpose of the compact is to promote a regional approach to education where possible through sharing arrangements and to provide educational services requested by member states. CPE is the designated compact administrator pursuant to KRS 164.530 and 164.540. ===== PAGE 312 ===== The Cancer Research Institutions Matching Fund established in KRS 164.043 is administered by the Council on Postsecondary Education to support cancer-related research that will ultimately reduce the morbidity and mortality from these diseases. The program is funded by a one cent per pack cigarette surtax, and the two research institutions – UK and U of L-provide a dollar for dollar match from external sources. I he Southern Regional Education Board (SREB) Doctoral Scholars Program supports and encourages students to pursue doctoral degrees. The goal of the program is to increase the number of students who earn doctorates and choose to become faculty at colleges and universities. Students are provided scholarships and other support to attend institutions throughout the southern region and in some Midwest states. The Ovarian Cancer Screening Program supports early cancer screening at the University of Kentucky. The program is an ongoing, 38-year research study showing that annual screening continues to detect ovarian cancer at an earlier stage than is possible with a clinical examination. The Cancer Research and Screening Programs at the University of Kentucky and the University of Louisville support research and clinical trials to benefit the citizens of Kentucky. The Spinal Cord and Head Injury Research Program, codified in KRS 211.500 through 211.504, funds spinal cord and head injury research undertaken at the University of Kentucky and the University of Louisville. The funding is administered by the Kentucky Spinal Cord and Head Injury Research Board. The Kentucky State University Fiscal Stabilization Program was established as a result of House Bill 250 enacted by the 2022 General Assembly. In that act, the General Assembly appropriated funding to Kentucky State University (KSU) to avert a fiscal crisis and provided strategic operating funds to KSU to be distributed by CPE. The act also required CPE to provide ongoing oversight of KSU's progress toward the goals outlined in its management improvement plan. ## Policy Tobacco Settlement Funds in the amount of $6,250,000 in fiscal year 2027 and $5,480,300 in fiscal year 2028 and Restricted Funds from interest earnings from the Healthcare Improvement Fund in the amount of $769,700 in fiscal year 2028 are included for Cancer Research and Screening, which is shared equally between the University of Kentucky's Markey Cancer Center and the University of Louisville's Brown Cancer Center. ===== PAGE 313 =====
Postsecondary Education
Council on Postsecondary Education
Federal Programs
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Federal Fund
Balance Forward(333,506)(690,063)(2,600)
Current Receipts10,175,3505,183,0335,043,9005,258,3006,190,100
Total Federal Fund9,841,8444,492,9695,041,3005,258,3006,190,100
TOTAL SOURCE OF FUNDS9,841,8444,492,9695,041,3005,258,3006,190,100
EXPENDITURES BY CLASS
Personnel Costs4,158,3723,138,6212,906,1002,964,1003,025,400
Operating Expenses659,816648,280686,700686,700686,700
Grants Loans Benefits5,713,719708,6801,448,5001,607,5002,478,000
TOTAL EXPENDITURES10,531,9074,495,5815,041,3005,258,3006,190,100
EXPENDITURES BY FUND SOURCE
Federal Fund10,531,9074,495,5815,041,3005,258,3006,190,100
TOTAL EXPENDITURES10,531,9074,495,5815,041,3005,258,3006,190,100
The Council on Postsecondary Education has administered the following federal grant programs in recent years: GEAR UP, the Governor's Emergency Education Relief Fund, American Rescue Plan funds to support summer bridge program grants, and State Fiscal Recovery Funds to benefit Simmons College. ===== PAGE 314 =====
Postsecondary Education Council on Postsecondary Education Strategic Investment and Incentive Funding Program
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation8,333,60012,109,6008,101,6007,874,7007,908,300
Continuing Approp-General Fund6,858,0002,058,00058,000
Budget Reduction-General Fund(242,900)
Total General Fund8,333,60012,109,60014,716,7009,932,7007,966,300
Federal Fund
Current Receipts3,075,8372,011,8661,029,500870,500
Balance Forward24
Total Federal Fund3,075,8372,011,8901,029,500870,500
TOTAL SOURCE OF FUNDS11,409,43714,121,49015,746,20010,803,2007,966,300
EXPENDITURES BY CLASS
Personnel Costs1,482,8871,532,1531,952,4001,963,6001,991,000
Operating Expenses139,591108,183131,600100,90066,600
Grants Loans Benefits6,562,9355,623,14111,604,2008,680,7005,908,700
Debt Service3,224,000
TOTAL EXPENDITURES11,409,4137,263,47713,688,20010,745,2007,966,300
EXPENDITURES BY FUND SOURCE
General Fund8,333,6005,251,58712,658,7009,874,7007,966,300
Federal Fund3,075,8132,011,8901,029,500870,500
TOTAL EXPENDITURES11,409,4137,263,47713,688,20010,745,2007,966,300
EXPENDITURES BY UNIT
Technology Initiative Trust Fund3,653,2003,653,2003,557,6003,561,8003,571,600
Physical Facilities Trust Fund3,224,000
Special Initiatives Funding Program1,456,4001,456,4001,391,1001,399,9001,420,800
Healthcare Workforce Investment Fund3,075,8132,153,8778,739,5005,783,5002,973,900
TOTAL EXPENDITURES11,409,4137,263,47713,688,20010,745,2007,966,300
The Strategic Investment and Incentive Funding Program was created in the Kentucky Postsecondary Education Improvement Act of 1997, codified as KRS 164.7911. This program consists of appropriations for the Physical Facilities Trust Fund, the Technology Initiative Trust Fund, and the Healthcare Workforce Investment Fund, as well as the Special Initiatives Funding Program. These appropriations are made to the Council, which is responsible for establishing criteria and distributing these funds to postsecondary institutions and other partners in a manner that will allow the Commonwealth to accomplish the goals established in KRS 164.003(2). ## Special Initiatives Funding Program The Council on Postsecondary Education allocates funds to institutions for activities that support the goals of Senate Bill 1 from the 2009 session of the General Assembly. These include professional development of faculty and revision of the pedagogic curriculum and assessment standards of colleges of education. ## Technology Initiative Trust Fund This program includes funding for the Kentucky Postsecondary Education Network (KPEN), the Kentucky Virtual Campus and Virtual Library, the College Level Learning Assessment, the College Access Initiative, and faculty development activities that improve teaching and develop best practices, particularly for distance learning situations. ===== PAGE 315 ===== ## Physical Facilities Trust Fund The Physical Facilities Trust Fund includes funding to support the physical plants at public postsecondary education institutions. The Council is charged with distributing the funds in this program to the institutions as enacted in the biennial appropriations act. ## Research Challenge Trust Fund and Regional University Excellence Trust Fund Also known as “Bucks for Brains”, the purpose of these funds is to grow university endowments by encouraging private giving. The Research Challenge Trust Fund supports the University of Kentucky and the University of Louisville funds research-related programs and capital projects. The Regional University Excellence Trust Fund supports the Commonwealth's six comprehensive universities and encourages them to develop nationally recognized programs. ## Workforce Development Trust Fund The Workforce Development Trust Fund is intended to provide financial assistance to further cooperative efforts among community colleges and technical institutions and for the acquisition of equipment and technology necessary to provide quality education programs. ## Healthcare Workforce Investment Fund Established by the 2023 General Assembly and codified in KRS 164.0401 through 164.0407, the purpose of the Healthcare Workforce Investment Fund is to address the shortage of healthcare professionals in the Commonwealth by funding public-private partnerships to provide healthcare training scholarships to Kentucky residents seeking high-demand healthcare credentials. ===== PAGE 316 =====
Postsecondary Education Kentucky Higher Education Assistance Authority
Kentucky Higher Education Assistance Authority
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation345,982,100369,805,400393,373,800393,193,800393,193,800
Continuing Approp-General Fund37,409,6148,675,54711,575,0001,714,7001,303,300
Budget Reduction-General Fund(180,000)
Other3,000,000
Total General Fund386,391,714378,480,947404,768,800394,908,500394,497,100
Restricted Funds
Balance Forward15,325,5785,303,55223,815,40021,493,80012,101,800
Current Receipts9,535,22617,011,35817,237,60019,115,10019,095,700
Non-Revenue Receipts10,133,422112,418,742101,642,90033,058,00033,074,200
Total Restricted Funds34,994,226134,733,652142,695,90073,666,90064,271,700
Federal Fund
Balance Forward(239,304)(137,893)
Current Receipts2,156,910226,39386,00086,00086,000
Total Federal Fund1,917,60688,50086,00086,00086,000
TOTAL SOURCE OF FUNDS423,303,546513,303,099547,550,700468,661,400458,854,800
EXPENDITURES BY CLASS
Personnel Costs14,033,62314,860,63418,563,90018,334,20018,320,000
Operating Expenses1,797,3561,879,7712,249,7002,276,7002,276,700
Grants Loans Benefits393,344,758460,978,210503,497,300434,385,400434,639,400
Capital Outlay286,602204,29731,300260,000290,000
TOTAL EXPENDITURES409,462,339477,922,913524,342,200455,256,300455,526,100
EXPENDITURES BY FUND SOURCE
General Fund377,716,166366,905,929403,054,100393,605,200393,859,200
Restricted Funds29,690,674110,918,320121,202,10061,565,10061,580,900
Federal Fund2,055,49998,66486,00086,00086,000
TOTAL EXPENDITURES409,462,339477,922,913524,342,200455,256,300455,526,100
EXPENDITURES BY UNIT
General Administration and Support15,697,48516,552,28220,444,90020,470,90020,486,700
College Access Program182,977,789232,021,221252,470,100210,022,300210,022,300
Kentucky Tuition Grant37,957,54743,465,66846,485,40038,381,60038,381,600
Teacher Scholarships1,175,8001,796,2123,962,7003,015,0003,015,000
Ky National Guard Tuition6,564,0937,176,0408,167,8007,448,1007,448,100
Ky Educational Excellence Scholarships113,855,519114,491,272116,182,800102,856,600102,856,600
Early Childhood Development Scholarships2,136,0332,363,6872,500,7002,500,0002,500,000
Kentucky Rural Veterinarian Loan Repayment Program62,500150,000252,500
Kentucky's Affordable Prepaid Tuition (KAPT)420,096392,421400,000400,000400,000
Coal County Scholarship for Pharmacy Students176,225244,553200,000250,000250,000
===== PAGE 317 =====
Early Graduation Scholarship
Certificate182,700149,247575,000575,000575,000
Work Ready Scholarship12,627,01912,764,04620,205,50012,400,50012,400,500
Dual Credit Scholarship23,701,41726,474,05921,742,00027,490,10027,490,100
Other Programs85,99398,66486,00086,00086,000
Optometry Scholarship Program829,572830,000925,400848,400848,400
Veterinary Contract Spaces Program5,331,0235,473,1606,061,8006,061,8006,213,300
Innovative Scholarship Pilot Project5,744,0294,401,4485,098,5005,000,0005,000,000
Teacher Loan Forgiveness3,335,13311,464,90010,000,00010,000,000
Student Teacher Stipend Program5,893,8007,306,2007,300,0007,300,000
TOTAL EXPENDITURES409,462,339477,922,913524,342,200455,256,300455,526,100
The mission of the Kentucky Higher Education Assistance Authority (KHEAA) is to increase educational attainment by providing student financial aid and other assistance to Kentuckyians preparing for and attending college. KHEAA administers state grants, scholarships, work study and college savings programs for postsecondary students. The agency is the designated guarantor of insured student loans and disseminates college planning and financial aid information. The Kentucky Higher Education Assistance Authority administers the following student aid programs: The College Access Program awards grants to Kentucky's financially needy undergraduate students enrolled in a public or private non-profit college, public technical college, or proprietary school. The Kentucky Tuition Grant program provides need-based grants to qualified Kentucky students who choose to attend one of the Commonwealth's 21 participating independent colleges and is designed to assist full-time students with tuition charges at these schools. The Kentucky Educational Excellence Scholarships (KEES) program provides merit-based scholarships to eligible high school students based on their yearly grade point average and supplemental awards based on their highest ACT (or equivalent SAT) score and Advanced Placement, International Baccalaureate, or Cambridge Advanced International test scores. The scholarships can be used to pay the expenses of each year of college or technical training. The Teacher Scholarship program is designed to assist financially needy Kentucky students with the costs incurred while seeking initial or additional teacher certification. Recipients must agree to render qualified teaching service in the Commonwealth. The Kentucky National Guard Tuition Award program provides tuition assistance to active members of the Kentucky National Guard to attend Kentucky's state-supported postsecondary educational institutions. The Department of Military Affairs selects the recipients and KHEAA forwards funds to the schools to be disbursed to the students. The Coal County Pharmacy Scholarship Program provides tuition awards to eligible students at Kentucky colleges who agree to provide pharmacy services in a coal-producing county of Kentucky for one year for each year they receive the scholarship, or repay their tuition grants. The Early Childhood Development Scholarship program provides tuition assistance to Kentucky residents pursuing a credential, certificate, or degree in early childhood education. It was established to upgrade the professional development of child-care workers and trainers who do not have access to state or federal professional development funds. The John R. Justice program, supported by a Federal grant, provides student loan repayment assistance for public defenders and prosecutors who commit to continued employment for at least three years after graduation from law school. The Early Graduation Scholarship is awarded to students who graduate high school in three years. It can be used at any public or non-profit, independent institution the academic year immediately following graduation and is equal to one-half of the state portion of the average statewide per pupil guaranteed base funding level (SEEK allowance). The Dual Credit Scholarship is awarded to Kentucky high school students who enroll in an approved dual credit course at a participating institution. The Work Ready Kentucky Scholarship is awarded to Kentuckyians with a high school credential but who have not yet earned an associate's degree and are enrolled in an industry-recognized certificate or diploma program in a high-demand workforce sector. The Optometry Scholarship program provides financial assistance for eligible Kentucky students to attend an accredited school of optometry to become certified practitioners rendering medical service in the Commonwealth. ===== PAGE 318 ===== The Veterinary Contract Spaces program provides financial assistance and access to Kentucky students seeking a veterinary education and helps ensure the availability of sufficient veterinary workers in the Commonwealth. The program allows Kentucky students to pay in-state tuition rates at out-of-state veterinary schools. I ne Kentucky Affordable Prepaid Tuition (KAPT) program was intended to provide Kentucky families an affordable way to save for future tuition costs by providing tuition guarantees in exchange for families' up-front investment. The program has not accepted new enrollees since 2004. The Innovative Scholarship Program was created by the 2022 General Assembly in the 2022-2024 appropriations act. KHEAA and CPE developed the program to serve two groups of students. The Kentucky Humanitarian Assistance Scholarship serves displaced students who are foreign nationals that have received asylum, resettled refugees, or are in the U.S. under Temporary Protected Status, humanitarian parole, or through a special immigrant visa. The Kentucky Scholarship for Cultural Exchange is awarded to Kentucky residents who are participating in study abroad programs. The Kentucky Rural Veterinary Medicine Student Loan Repayment program was created to provide student loan repayment assistance for livestock practitioners who practice in underserved rural areas or shortage areas for five consecutive years. The Student Teacher Stipend program reduces financial barriers faced by students who are completing educator preparation programs and entering the educator workforce by providing stipends during the semester the student is performing his or her required student teaching. The Teacher Recruitment Student Loan Forgiveness program funds loans to students preparing to become certified teachers in Kentucky public schools. Recipients must agree to render qualified teaching service in the Commonwealth ## Policy Due to its reliance on $89 million in one-time funding in the fiscal year 2026 budget from past unappropriated lottery funds, and a slight reduction in the lottery revenue estimate, the amount of total lottery funds for student financial programs is less than in the 2024-26 budget. The Governor's budget dedicates one-hundred percent of Lottery revenues to student financial aid. A slight reduction in lottery revenue and the unavailability of the one time-funds means the number of student financial aid recipients or the aid awards may decline. Kentucky's need-based aid programs, the College Access Program (CAP) and the Kentucky Tuition Grant (KTG) program, have benefited from the dedication and growth of Lottery receipts in the past several biennia, funding all eligible applicants for the first time ever in the 2022-2024 biennium and continuing the trend in the current biennium. The maximum grant award for CAP increased from $2,900 to $5,300 over the course of the 2022-2024 biennium and remains at that level currently. When leveraging federal Pell Grant dollars, the CAP program covers full-time tuition and fees at KCTCS and four-year regional universities in Kentucky, and nearly covers the average tuition and fees at four-year public research institutions. Additional General Fund in the amount of $8,093,400 in each fiscal year is included from Lottery receipts for the College Access Program (CAP), but available Restricted Funds have declined as described above and total just $22,584,100 in each fiscal year. Unless the award levels are reduced, the reduced funding will result in returning the CAP and the Kentucky Tuition Grant programs to a first-come, first-serve model that KHEAA has administered for many years. General Fund for the Kentucky Educational Excellence Scholarship (KEES) is flat in fiscal years 2027 and 2028, while available Restricted Funds from Unclaimed Lottery Prize revenue have declined to $12,300,000 in each fiscal year, leaving KEES short about 12% in fiscal year 2027 and 13% short in fiscal year 2028 when compared to the consensus estimate of the program's needs. KRS 164.7879(1) from the original KEES legislation governs KHEAA's ability to adjust the base KEES award after considering the availability of funds. Any unbudgeted Lottery revenue will be appropriated pursuant to KRS 154A.130(4). The budget provides additional Restricted Funds of $665,000 in each fiscal year for the Teacher Scholarship Program, which provides need-based financial aid to attract Kentucky students into the teaching profession. The additional funding will fund 117 additional applicants in each fiscal year. Additional Restricted Funds of $50,000 per fiscal year are included for the Coal County Scholarship for Pharmacy students, which will provide support for an additional 5 scholarship recipients each year. Funding for the Early Childhood Development Scholarship is appropriated to the Community Based Services budget unit in the Cabinet for Health and Family Services, but will be administered by KHEAA per statute. ===== PAGE 319 ===== The Governor's budget includes additional funding in the amount of $9,200 in fiscal year 2027 and $18,900 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. ===== PAGE 320 =====
Postsecondary Education
Postsecondary Education Institutions
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,076,701,8001,121,437,3001,080,800,0001,072,135,7001,072,135,700
Postsecondary Ed Performance Fund
Current Year Appropriation2,107,500
Continuing Approp.-General Fund5,000,0003,895,7772,076,900
Reorganization Adjustment(1,799,700)
Total General Fund1,082,009,6001,125,333,0771,082,876,9001,072,135,7001,072,135,700
Restricted Funds
Balance Forward5,866,7715,903,8002,951,9002,951,900
Current Receipts8,671,938,6259,520,036,45110,994,593,10011,831,429,60012,710,677,400
Total Restricted Funds8,671,938,6259,525,903,22211,000,496,90011,834,381,50012,713,629,300
Federal Fund
Current Receipts1,005,189,3871,078,844,5791,078,019,1001,117,097,7001,142,691,900
Total Federal Fund1,005,189,3871,078,844,5791,078,019,1001,117,097,7001,142,691,900
TOTAL SOURCE OF FUNDS10,759,137,61211,730,080,87813,161,392,90014,023,614,90014,928,456,900
EXPENDITURES BY CLASS
Personnel Costs5,200,981,5345,738,736,2136,028,006,9006,401,226,0006,808,266,100
Operating Expenses3,577,963,4703,968,644,0265,095,532,0005,494,896,4005,921,293,000
Grants Loans Benefits607,468,870576,285,2561,268,482,4001,300,171,4001,314,089,600
Debt Service264,240,635262,748,996252,165,400264,499,400268,582,300
Capital Outlay525,170,465554,022,171514,254,300559,869,800613,274,200
TOTAL EXPENDITURES10,175,824,97511,100,436,66313,158,441,00014,020,663,00014,925,505,200
EXPENDITURES BY FUND SOURCE
General Fund1,078,786,7001,120,563,7001,082,876,9001,072,135,7001,072,135,700
Restricted Funds8,091,848,8888,901,028,38410,997,545,00011,831,429,60012,710,677,600
Federal Fund1,005,189,3871,078,844,5791,078,019,1001,117,097,7001,142,691,900
TOTAL EXPENDITURES10,175,824,97511,100,436,66313,158,441,00014,020,663,00014,925,505,200
EXPENDITURES BY UNIT
Eastern Kentucky University384,811,190402,291,771435,710,700443,499,100451,876,000
Kentucky State University86,848,644111,364,351132,504,500139,741,400152,077,900
Morehead State University182,692,100187,536,800198,401,500208,640,400209,219,700
Murray State University212,903,300213,975,000224,123,900240,728,500240,728,500
Northern Kentucky University280,643,841284,178,641291,629,000304,337,600304,337,600
University of Kentucky6,172,140,9006,868,630,8008,621,830,3009,344,078,90010,182,898,000
University of Louisville1,654,276,2001,738,385,8001,796,250,6001,871,242,0001,908,241,600
Western Kentucky University404,400,400406,968,500404,076,500410,023,600411,023,600
Kentucky Community and Technical College System797,108,400887,105,0001,053,914,0001,058,371,5001,065,102,300
TOTAL EXPENDITURES10,175,824,97511,100,436,66313,158,441,00014,020,663,00014,925,505,200
===== PAGE 321 =====
Postsecondary Education Eastern Kentucky University
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation81,901,30081,067,20076,751,70080,929,70080,929,700
Postsecondary Ed Performance3,222,9004,769,4004,880,300
Total General Fund85,124,20085,836,60081,632,00080,929,70080,929,700
Restricted Funds
Current Receipts203,735,364212,149,499218,578,700227,069,400235,446,300
Total Restricted Funds203,735,364212,149,499218,578,700227,069,400235,446,300
Federal Fund
Current Receipts107,742,092117,294,031135,500,000135,500,000135,500,000
Total Federal Fund107,742,092117,294,031135,500,000135,500,000135,500,000
TOTAL SOURCE OF FUNDS396,601,656415,280,130435,710,700443,499,100451,876,000
EXPENDITURES BY CLASS
Personnel Costs172,670,130175,910,705181,500,000175,000,000175,000,000
Operating Expenses113,205,69899,001,713107,543,400106,411,100106,340,100
Grants Loans Benefits73,941,564108,220,525130,924,200138,247,500138,333,200
Debt Service24,993,79719,158,82715,743,10023,840,50032,202,700
TOTAL EXPENDITURES384,811,190402,291,771435,710,700443,499,100451,876,000
EXPENDITURES BY FUND SOURCE
General Fund81,901,30081,067,20081,632,00080,929,70080,929,700
Restricted Funds195,167,798203,930,540218,578,700227,069,400235,446,300
Federal Fund107,742,092117,294,031135,500,000135,500,000135,500,000
TOTAL EXPENDITURES384,811,190402,291,771435,710,700443,499,100451,876,000
EXPENDITURES BY UNIT
Instruction91,818,82590,168,06792,042,90096,929,00097,370,500
Research1,095,834753,0431,260,0001,260,0001,260,000
Public Service16,211,31614,541,44518,770,00018,770,00018,770,000
Libraries3,501,7853,607,7195,300,0005,300,0005,300,000
Academic Support20,159,25521,319,04519,650,00024,650,00025,100,000
Student Services20,296,39820,760,60028,380,30023,500,00023,500,000
Institutional Support76,226,40579,191,39882,627,50085,340,20092,895,500
Operation and Maintenance of Plant6,136,0836,511,83125,000,00025,069,90025,000,000
Scholarships and Fellowships115,508,350132,718,173130,680,000130,680,000130,680,000
Auxiliary Enterprises33,856,93932,720,45032,000,00032,000,00032,000,000
TOTAL EXPENDITURES384,811,190402,291,771435,710,700443,499,100451,876,000
Eastern Kentucky University, originally founded as a training school for teachers, has grown into a comprehensive postsecondary institution with an enrollment of over 15,000 students. In addition to the main campus in Richmond, EKU operates regional campuses at Corbin, Manchester, and Hazard. Baccalaureate degree programs are offered in liberal arts and sciences, business and technology, education, health sciences, and the university's program of distinction, justice and public safety. Each academic program requires students to demonstrate effective communication, creativity and critical thinking skills. ===== PAGE 322 ===== Advanced degrees are offered in education, psychology and technology, and doctoral programs in educational leadership, nursing practice and occupational therapy. ## Policy The fiscal year 2026 Postsecondary Education Performance Fund distribution in the amount of $4,880,300 is added to EKU's base General Fund appropriation in fiscal years 2027 and 2028. Included in the base General Fund budget is $4,571,900 in each fiscal year for the Model Laboratory School; $5,345,800 in each fiscal year for the Fixed Allocation Pension Subsidy; and $2,423,200 in each fiscal year to support the Commonwealth's Property and Casualty Insurance Fund premium. These items make up EKU's Mandated Programs, which total $12,340,900 in each fiscal year. ===== PAGE 323 =====
Postsecondary Education
Kentucky State University
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation28,690,80032,650,90031,441,90030,198,50030,198,500
Current Year Appropriation2,107,500
Total General Fund30,798,30032,650,90031,441,90030,198,50030,198,500
Restricted Funds
Balance Forward5,866,7715,903,8002,951,9002,951,900
Current Receipts35,162,72045,753,49358,583,70068,862,30077,848,200
Total Restricted Funds35,162,72051,620,26464,487,50071,814,20080,800,100
Federal Fund
Current Receipts26,754,39532,996,96639,527,00040,680,60044,031,000
Total Federal Fund26,754,39532,996,96639,527,00040,680,60044,031,000
TOTAL SOURCE OF FUNDS92,715,415117,268,130135,456,400142,693,300155,029,600
EXPENDITURES BY CLASS
Personnel Costs36,312,83944,274,99544,939,20045,837,70046,754,600
Operating Expenses28,983,68640,508,50858,070,20061,383,30069,700,100
Grants Loans Benefits10,683,38514,644,14720,072,70024,127,90027,558,600
Debt Service2,389,7144,971,7995,422,4005,440,4005,112,400
Capital Outlay8,479,0206,964,9024,000,0002,952,1002,952,200
TOTAL EXPENDITURES86,848,644111,364,351132,504,500139,741,400152,077,900
EXPENDITURES BY FUND SOURCE
General Fund30,798,30032,650,90031,441,90030,198,50030,198,500
Restricted Funds29,295,94945,716,48561,535,60068,862,30077,848,400
Federal Fund26,754,39532,996,96639,527,00040,680,60044,031,000
TOTAL EXPENDITURES86,848,644111,364,351132,504,500139,741,400152,077,900
EXPENDITURES BY UNIT
Instruction8,752,71510,364,68712,231,00013,277,80014,359,100
Research13,866,30617,872,32519,481,40021,615,20023,803,400
Public Service10,928,35812,554,35113,915,40015,439,40017,002,500
Academic Support87,548125,336122,200
Libraries651,099590,054555,800599,400522,500
Student Services6,277,0236,315,8337,364,9007,964,8008,585,600
Institutional Support24,317,50631,688,93741,563,00040,496,80043,926,300
Operation and Maintenance of Plant7,366,0817,361,3709,032,2009,414,80010,171,100
Scholarships and Fellowships8,901,19712,736,17113,911,00015,348,60016,825,100
Auxiliary Enterprises5,700,81111,755,28714,449,80015,584,60016,760,100
TOTAL EXPENDITURES86,848,644111,364,351132,504,500139,741,400152,077,900
Like other comprehensive universities, Kentucky State University was founded as a training school for teachers. An historically black university, it is also a land grant institution charged with educating and improving the lives of Kentucky's rural residents. The Cooperative Extension Program complements the research activities of the divisions of agriculture and natural resources, aquaculture, environmental studies and sustainable systems, food and animal science and family and consumer science and provides an avenue for technology transfer of research findings that are relevant to Kentucky's, especially those with limited resources living in rural areas. ===== PAGE 324 ===== In addition to its teaching and agriculture departments, KSU offers traditional liberal arts courses, business, computer science, public administration, nursing and pre-professional education for medicine, dentistry, law, engineering and other fields. Kentucky State provides an opportunity for students, including non-traditional students, who otherwise would not have access to college education. ## Policy The budget includes General Fund in the amount of $10,381,000 in each fiscal year for Kentucky State University's land grant program. These General Fund dollars are used to match federal funds. This program, along with $473,600 General Fund in each fiscal year to support the Commonwealth's Property and Casualty Insurance Fund premium, make up Kentucky State University's Mandated Programs. In total, the university's Mandated Programs total $10,854,600 in each fiscal year. ===== PAGE 325 =====
Postsecondary Education
Morehead State University
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation49,762,40051,396,20046,830,90046,330,30046,330,300
Postsecondary Ed Performance Fund214,400
Total General Fund49,762,40051,610,60046,830,90046,330,30046,330,300
Restricted Funds
Current Receipts102,529,000102,962,800115,586,900115,133,700115,713,000
Total Restricted Funds102,529,000102,962,800115,586,900115,133,700115,713,000
Federal Fund
Current Receipts30,400,70032,963,40035,983,70047,176,40047,176,400
Total Federal Fund30,400,70032,963,40035,983,70047,176,40047,176,400
TOTAL SOURCE OF FUNDS182,692,100187,536,800198,401,500208,640,400209,219,700
EXPENDITURES BY CLASS
Personnel Costs75,408,10072,959,60081,729,50084,989,60085,217,900
Operating Expenses33,869,90038,300,00042,235,40041,480,50041,584,400
Grants Loans Benefits53,861,00058,727,10058,189,70064,935,90065,104,200
Debt Service12,600,80013,204,6009,379,4009,580,6009,580,600
Capital Outlay6,952,3004,345,5006,867,5007,653,8007,732,600
TOTAL EXPENDITURES182,692,100187,536,800198,401,500208,640,400209,219,700
EXPENDITURES BY FUND SOURCE
General Fund49,762,40051,610,60046,830,90046,330,30046,330,300
Restricted Funds102,529,000102,962,800115,586,900115,133,700115,713,000
Federal Fund30,400,70032,963,40035,983,70047,176,40047,176,400
TOTAL EXPENDITURES182,692,100187,536,800198,401,500208,640,400209,219,700
EXPENDITURES BY UNIT
Instruction50,225,50045,745,60054,419,30050,145,50049,188,900
Research2,222,7005,454,1005,614,2006,204,3006,097,500
Public Service7,757,9009,381,7009,724,2009,573,7009,395,600
Libraries2,143,4001,674,6001,441,6001,359,1001,332,600
Academic Support4,258,8003,929,5004,077,2003,874,4003,799,500
Student Services24,469,60025,580,10025,138,90024,196,90023,725,900
Institutional Support21,195,80017,479,20014,829,10013,963,50013,691,800
Operation and Maintenance of Plant11,045,30011,646,30011,569,60016,798,70020,962,600
Scholarships and Fellowships49,437,90052,798,10054,992,50056,973,90055,942,800
Mandatory Transfers2,070,1002,014,6002,933,9003,031,7002,978,900
Non-Mandatory Transfers(327,800)521,9001,081,30010,489,20010,297,100
Auxiliary Enterprises8,192,90011,311,10012,579,70012,029,50011,806,500
TOTAL EXPENDITURES182,692,100187,536,800198,401,500208,640,400209,219,700
Morehead State University has an enrollment of nearly 8,400 students, including its enrollment of high school juniors and seniors at the Craft Academy for Excellence in Science and Mathematics. Morehead's in-state undergraduate tuition is low compared to state peer institutions, and it enrolls the largest percentage of Pelleligible students. The University strives to provide high quality education while increasing efficiency and productivity. Morehead was the first Kentucky institution to offer a complete degree program online. ===== PAGE 326 ===== Morehead's program of distinction is space science. Morehead faculty and undergraduate students have collaborated with students and scientists from around the world to build and launch satellites to explore and carry on important investigations in space. A 21-meter tracking antenna is located on the campus. ## Policy Included in the base General Fund budget is $5,442,700 in each fiscal year for the Craft Academy of Excellence in Science and Mathematics; $2,947,800 in each fiscal year for the Fixed Allocation Pension Subsidy; and $1,274,400 in each fiscal year to support the Commonwealth's Property and Casualty Insurance Fund premium. Together, these make up Morehead State's Mandated Programs which total $9,664,900 in each fiscal year. ===== PAGE 327 =====
Postsecondary Education
Murray State University
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation51,707,10052,804,80050,332,30054,783,40054,783,400
Postsecondary Ed Performance Fund3,095,0004,759,8005,069,300
Total General Fund54,802,10057,564,60055,401,60054,783,40054,783,400
Restricted Funds
Current Receipts133,652,400130,798,300142,227,700159,450,500159,450,500
Total Restricted Funds133,652,400130,798,300142,227,700159,450,500159,450,500
Federal Fund
Current Receipts24,448,80025,612,10026,494,60026,494,60026,494,600
Total Federal Fund24,448,80025,612,10026,494,60026,494,60026,494,600
TOTAL SOURCE OF FUNDS212,903,300213,975,000224,123,900240,728,500240,728,500
EXPENDITURES BY CLASS
Personnel Costs111,404,400112,587,500114,322,800120,347,200120,347,200
Operating Expenses64,726,50066,732,70080,205,80088,743,60088,743,600
Grants Loans Benefits17,133,90015,113,20020,232,10020,944,50020,944,500
Debt Service15,963,80013,137,1008,384,5009,679,8009,679,800
Capital Outlay3,674,7006,404,500978,7001,013,4001,013,400
TOTAL EXPENDITURES212,903,300213,975,000224,123,900240,728,500240,728,500
EXPENDITURES BY FUND SOURCE
General Fund54,802,10057,564,60055,401,60054,783,40054,783,400
Restricted Funds133,652,400130,798,300142,227,700159,450,500159,450,500
Federal Fund24,448,80025,612,10026,494,60026,494,60026,494,600
TOTAL EXPENDITURES212,903,300213,975,000224,123,900240,728,500240,728,500
EXPENDITURES BY UNIT
Instruction64,481,88165,833,50067,473,50076,303,60076,303,600
Research2,794,9942,813,1002,865,7002,966,6002,966,600
Public Service7,595,94413,672,4577,436,3007,698,1007,698,100
Libraries3,222,0003,542,0003,350,3003,468,2003,468,200
Academic Support9,989,48712,076,8005,839,3006,164,7006,164,700
Student Services26,064,55423,942,00020,424,90021,143,90021,143,900
Institutional Support24,476,10023,241,50029,644,80032,182,70032,182,700
Operation and Maintenance of Plant37,137,90033,010,70022,627,20022,805,50022,805,500
Scholarships and Fellowships15,757,14014,838,90020,232,10020,944,30020,944,300
Mandatory Transfers(6,131,200)(6,725,400)
Non-Mandatory Transfers(3,338,700)(3,123,800)10,847,00011,228,80011,228,800
Auxiliary Enterprises30,853,20030,853,24333,382,80035,822,10035,822,100
TOTAL EXPENDITURES212,903,300213,975,000224,123,900240,728,500240,728,500
Murray State University's total enrollment is just over 10,000 students. In addition to the main campus in Calloway County, Murray operates regional campuses at Paducah, Madisonville, Hopkinsville, Henderson and Fort Campbell. Cooperation agreements with local community and technical colleges make it possible for students in those locations to earn a four-year degree in education, business, social work or nursing. MSU faculty also provide instructional support for the University of Kentucky's engineering program in Paducah. ===== PAGE 328 ===== In addition to teacher education programs, Murray State University also offers baccalaureate and masters degrees in business, health sciences, agriculture, liberal arts, sciences, engineering and technology. The program of distinction is telecommunications systems management (TSM) and is available at the main campus as well as online. MSU also has an acclaimed online MBA program. ## Policy The fiscal year 2026 Postsecondary Education Performance Fund distribution in the amount of $5,069,300 is added to Murray State University's base General Fund appropriation in fiscal years 2027 and 2028. Included in the base General Fund budget is $4,034,200 in each fiscal year for the Breathitt Veterinary Center; $1,800,000 in each fiscal year for the Fixed Allocation Pension Subsidy; and $1,451,400 in each fiscal year to support the Commonwealth's Property and Casualty Insurance Fund premium. Murray State's Mandated Programs total $7,285,600 in each fiscal year. ===== PAGE 329 =====
Postsecondary Education
Northern Kentucky University
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation57,655,00060,649,40056,239,40067,527,00067,527,000
Postsecondary Ed Performance12,683,90013,224,30011,811,700
Total General Fund70,338,90073,873,70068,051,10067,527,00067,527,000
Restricted Funds
Current Receipts191,658,941185,750,559209,548,400221,360,100221,360,100
Total Restricted Funds191,658,941185,750,559209,548,400221,360,100221,360,100
Federal Fund
Current Receipts18,646,00024,554,38214,029,50015,450,50015,450,500
Total Federal Fund18,646,00024,554,38214,029,50015,450,50015,450,500
TOTAL SOURCE OF FUNDS280,643,841284,178,641291,629,000304,337,600304,337,600
EXPENDITURES BY CLASS
Personnel Costs171,194,365178,249,913187,106,900188,012,200188,012,200
Operating Expenses36,344,68636,695,00542,718,80054,192,90054,192,900
Grants Loans Benefits41,765,12138,571,78435,399,30035,595,20035,595,200
Debt Service29,460,12428,058,37024,821,20024,941,40024,941,400
Capital Outlay1,879,5452,603,5691,582,8001,595,9001,595,900
TOTAL EXPENDITURES280,643,841284,178,641291,629,000304,337,600304,337,600
EXPENDITURES BY FUND SOURCE
General Fund70,338,90073,873,70068,051,10067,527,00067,527,000
Restricted Funds191,658,941185,750,559209,548,400221,360,100221,360,100
Federal Fund18,646,00024,554,38214,029,50015,450,50015,450,500
TOTAL EXPENDITURES280,643,841284,178,641291,629,000304,337,600304,337,600
EXPENDITURES BY UNIT
Instruction109,287,584115,415,629101,338,800113,795,400113,795,400
Research2,193,4141,947,469397,200408,100408,100
Public Service13,887,72814,882,35015,166,90015,250,40015,250,400
Libraries5,862,0824,900,4165,327,1005,354,6005,354,600
Academic Support20,669,61219,816,85228,353,80028,465,20028,465,200
Student Services26,838,17027,038,27125,216,90025,368,80025,368,800
Institutional Support42,510,44139,623,52129,410,40029,608,40029,608,400
Operation and Maintenance of Plant19,301,47618,884,58920,922,30020,503,80020,503,800
Scholarships and Fellowships29,745,31134,738,97332,954,70033,003,20033,003,200
Mandatory Transfers(7,186,197)(6,901,935)15,220,40015,181,60015,181,600
Non-Mandatory Transfers6,773,2917,149,1132,837,8002,877,9002,877,900
Auxiliary Enterprises10,760,9296,683,39314,482,70014,520,20014,520,200
TOTAL EXPENDITURES280,643,841284,178,641291,629,000304,337,600304,337,600
===== PAGE 330 ===== Northern Kentucky University is the only one of Kentucky's comprehensive universities that did not start as an institution for training teachers. NKU began as a community college under the University of Kentucky and became an autonomous institution by an act of the General Assembly in 1968. Upper division courses were offered beginning in 1971, the same year that Salmon P. Chase College of Law merged with what was then known as Northern Kentucky State College. Today there are over 15,000 students enrolled. Although about one-third are non-residents, the Kentucky's among them come from 106 of the state's 120 counties. Boone, Kenton and Campbell counties in northern Kentucky account for 6,708 students. Due to limited dormitory space, nearly 90% of undergraduates commute. A significant percentage of NKU's first time, full-time students are first generation college-goers. The university seeks to provide support services that make it possible for all members of its diverse student body to succeed. Academic advisors use a web-based system to proactively identify students who are “off path” for timely degree completion and suggest changes to guide students to a degree. Another particular focus is on transfer students, reflecting NKU's continuing connection with Gateway Community and Technical College. Gateway2NKU maintains program pathways for seamless transfer between the institutions. ## Policy The fiscal year 2026 Postsecondary Education Performance Fund distribution in the amount of $11,811,700 is added to NKU's base General Fund appropriation in fiscal years 2027 and 2028. Included in the base General Fund budget is $1,323,900 in each fiscal year for the Kentucky Center for Mathematics and $1,377,900 in each fiscal year to support the Commonwealth's Property and Casualty Insurance Fund premium. These programs make up NKU's Mandated Programs and total $2,701,800 in each fiscal year. ===== PAGE 331 =====
Postsecondary Education
University of Kentucky
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation303,669,300308,359,100297,828,600339,809,600339,809,600
Postsecondary Ed Performance33,338,50034,737,00041,174,700
Total General Fund337,007,800343,096,100339,003,300339,809,600339,809,600
Restricted Funds
Current Receipts6,053,299,9006,771,831,1007,983,878,5008,688,499,3009,509,319,400
Total Restricted Funds6,053,299,9006,771,831,1007,983,878,5008,688,499,3009,509,319,400
Federal Fund
Current Receipts347,488,600364,455,700298,948,500315,770,000333,769,000
CRF Receipts
Total Federal Fund347,488,600364,455,700298,948,500315,770,000333,769,000
TOTAL SOURCE OF FUNDS6,737,796,3007,479,382,9008,621,830,3009,344,078,90010,182,898,000
EXPENDITURES BY CLASS
Personnel Costs3,339,906,0003,791,565,5003,959,789,4004,298,968,1004,682,190,600
Operating Expenses2,359,254,0002,636,500,8003,798,976,4004,127,668,2004,530,701,800
Grants Loans Benefits59,461,10017,706,100347,896,500353,001,400357,203,400
Debt Service109,452,500115,004,000137,214,500139,816,400135,865,100
Capital Outlay304,067,300307,854,400377,953,500424,624,800476,937,100
TOTAL EXPENDITURES6,172,140,9006,868,630,8008,621,830,3009,344,078,90010,182,898,000
EXPENDITURES BY FUND SOURCE
General Fund337,007,800343,096,100339,003,300339,809,600339,809,600
Restricted Funds5,487,644,5006,161,079,0007,983,878,5008,688,499,3009,509,319,400
Federal Fund347,488,600364,455,700298,948,500315,770,000333,769,000
TOTAL EXPENDITURES6,172,140,9006,868,630,8008,621,830,3009,344,078,90010,182,898,000
EXPENDITURES BY UNIT
Instruction362,801,400391,944,400660,017,500694,828,500704,962,200
Research407,130,000419,202,300567,496,000556,024,800576,423,700
Public Service283,571,900295,812,800313,043,600321,397,300334,174,800
Libraries26,294,40027,519,50029,128,60029,841,20030,188,500
Academic Support137,642,600144,129,700185,388,300184,124,300186,929,100
Student Services58,199,40060,540,00066,023,70065,818,50067,201,300
Institutional Support99,093,10064,106,600272,716,000270,554,900274,233,300
Operation and Maintenance of Plant90,314,80087,783,600131,842,400134,230,400139,303,900
Scholarships and Fellowships59,461,10017,706,100347,896,500353,001,400357,203,400
Mandatory Transfers32,118,70040,761,20042,923,90045,525,80041,574,500
Non-Mandatory Transfers(256,839,800)(262,249,000)59,500,00059,500,00059,500,000
Auxiliary Enterprises309,003,300317,288,000317,021,900335,715,400364,274,500
Hospitals4,563,350,0005,264,085,6005,628,831,9006,293,516,4007,046,928,800
TOTAL EXPENDITURES6,172,140,9006,868,630,8008,621,830,3009,344,078,90010,182,898,000
===== PAGE 332 ===== With over 38,000 students, the University of Kentucky is Commonwealth's flagship institution of higher education. It is one of the nation's top research universities and also has an important land grant mission for a state where agriculture is a major economic sector. UK is one of only eight universities in the United States with schools of agriculture, engineering, law, medicine and pharmacy on a single campus. It also maintains professional programs in dentistry, architecture, business, economics, education and social professions. The University campus is undergoing dramatic physical change. Over the last decade, UK has completed, initiated, or approved more than $4 billion in capital investment focused on living, learning, health care, research, and dining spaces. In fiscal year 2024, UK invested $527.7 million in research and development, generating $937 million in economic activity across the state. Currently, the university has eight Research Priority Areas: Cancer, Cardiovascular Diseases, Diabetes and Obesity, Diversity and Inclusion, Energy, Materials Science, Neuroscience, and Substance Use Disorder. ## Policy The fiscal year 2026 Postsecondary Education Performance Fund distribution in the amount of $41,174,700 is added to UK's base General Fund appropriation in fiscal years 2027 and 2028. Included in the base General Fund budget is $102,919,700 in each fiscal year for UK's Mandated Programs, which include the following: $35,420,800 in each fiscal year for the College of Agriculture Cooperative Extension; $31,434,100 in each fiscal year for the Kentucky Agricultural Experiment Station; $10,750,900 in each fiscal year to support the Commonwealth's Property and Casualty Insurance Fund premium, which represents a $806,300 increase in each fiscal year; $10,176,200 in each fiscal year for the Center for Applied Energy Research; $4,076,300 in each fiscal year for the Kentucky Geological Survey; $4,034,200 in each fiscal year for the Veterinary Diagnostic Laboratory; $2,040,500 in each fiscal year for the Sanders-Brown Center on Aging; $1,800,000 in each fiscal year for the College of Agriculture Division of Regulatory Services; $600,000 in each fiscal year for the College of Agriculture Kentucky Small Business Development Center; $586,300 in each fiscal year for the University Press of Kentucky; $500,000 in each fiscal year from Lottery Funds for the Human Development Institute Supported Higher Education Project; $450,200 in each fiscal year for the Center for Excellence in Rural Health; $950,200 in each fiscal year for the Kentucky Cancer Registry; and $100,000 in each fiscal year for the Sports Medicine Research Institute. ===== PAGE 333 =====
Postsecondary Education
University of Louisville
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation134,223,800150,882,700137,231,700159,728,200159,728,200
Postsecondary Ed Performance17,594,60018,752,20021,522,000
Total General Fund151,818,400169,634,900158,753,700159,728,200159,728,200
Restricted Funds
Current Receipts1,301,641,7001,380,875,6001,449,621,6001,515,148,5001,547,903,100
Total Restricted Funds1,301,641,7001,380,875,6001,449,621,6001,515,148,5001,547,903,100
Federal Fund
Current Receipts200,816,100187,875,300187,875,300196,365,300200,610,300
Total Federal Fund200,816,100187,875,300187,875,300196,365,300200,610,300
TOTAL SOURCE OF FUNDS1,654,276,2001,738,385,8001,796,250,6001,871,242,0001,908,241,600
EXPENDITURES BY CLASS
Personnel Costs773,000,400812,494,700857,194,600895,070,600914,008,600
Operating Expenses619,566,500715,247,900615,054,300640,795,100653,169,400
Grants Loans Benefits163,349,900113,487,400248,323,200258,677,200263,854,100
Debt Service39,552,80050,118,50051,200,30051,200,30051,200,300
Capital Outlay58,806,60047,037,30024,478,20025,498,80026,009,200
TOTAL EXPENDITURES1,654,276,2001,738,385,8001,796,250,6001,871,242,0001,908,241,600
EXPENDITURES BY FUND SOURCE
General Fund151,818,400169,634,900158,753,700159,728,200159,728,200
Restricted Funds1,301,641,7001,380,875,6001,449,621,6001,515,148,5001,547,903,100
Federal Fund200,816,100187,875,300187,875,300196,365,300200,610,300
TOTAL EXPENDITURES1,654,276,2001,738,385,8001,796,250,6001,871,242,0001,908,241,600
EXPENDITURES BY UNIT
Instruction295,814,700318,963,000331,842,400367,035,100373,870,400
Research283,434,200229,130,600238,382,700248,203,300253,113,600
Public Service80,648,50093,997,20097,792,700101,821,400103,835,700
Libraries17,152,10020,226,40021,043,10021,910,00022,343,500
Academic Support331,598,400374,443,300389,562,900384,107,400392,131,700
Student Services40,224,40043,953,70045,728,50047,612,20048,554,200
Institutional Support158,754,300179,747,800174,676,300181,872,300185,470,300
Operation and Maintenance of Plant61,197,50070,687,10073,541,40077,545,50079,060,400
Scholarships and Fellowships168,227,400193,168,800200,968,800209,248,100213,387,600
Mandatory Transfers17,819,50016,676,60017,350,00018,064,80018,422,100
Auxiliary Enterprises199,405,200197,391,300205,361,800213,821,900218,052,100
TOTAL EXPENDITURES1,654,276,2001,738,385,8001,796,250,6001,871,242,0001,908,241,600
The University of Louisville is Kentucky's metropolitan research university, with missions of teaching, research and service. Located in the state's largest city, U of L operates on three campuses: the historic Belknap Campus, the Health Sciences Campus in downtown Louisville's medical complex, and the Shelby Campus in suburban Jefferson County. ===== PAGE 334 ===== The University of Louisville's researchers focus on translational research, new knowledge and discoveries that can improve people's lives now. The Nucleus facility downtown was developed with innovative tax-increment financing to incubate and accelerate business entities that provide the bridges from the academy into the larger world. The FirstBuild micro-factory on the Belknap campus designs and builds the next generation of home appliances in collaboration with GE Appliances and Local Motors. Medical research focuses on treatment of pediatric spinal cord injuries, biodefense and emerging infectious diseases, and cancer. The Shelby Campus houses the Delphi Center, home to the university's online and continuing education offices. ## Policy The fiscal year 2026 Postsecondary Education Performance Fund distribution in the amount of $21,522,000 is added to UofL's base General Fund appropriation in fiscal years 2027 and 2028. Included in the base General Fund budget is $6,896,300 in each fiscal year for UofL's Mandated Programs, which include the following: $5,801,100 in each fiscal year to support the Commonwealth's Property and Casualty Insurance Fund premium, which represents a $974,500 increase in each fiscal year; $695,200 in each fiscal year for the Rural Health Education Program; $150,000 in each fiscal year for the Autism Training Center; $150,000 in each fiscal year for the Mid-South Research Evaluation and Commercialization Hub (REACH) grant ; and $100,000 in each fiscal year for Drug Addiction Outreach by the Dental School. ===== PAGE 335 =====
Postsecondary Education
Western Kentucky University
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation83,951,30091,070,60083,789,60086,536,70086,536,700
Postsecondary Ed Performance5,858,4005,460,3005,261,000
Total General Fund89,809,70096,530,90089,050,60086,536,70086,536,700
Restricted Funds
Current Receipts271,695,500260,956,600270,882,600279,343,600280,343,600
Total Restricted Funds271,695,500260,956,600270,882,600279,343,600280,343,600
Federal Fund
Current Receipts42,895,20049,481,00044,143,30044,143,30044,143,300
Total Federal Fund42,895,20049,481,00044,143,30044,143,30044,143,300
TOTAL SOURCE OF FUNDS404,400,400406,968,500404,076,500410,023,600411,023,600
EXPENDITURES BY CLASS
Personnel Costs182,857,600181,597,700185,698,100185,698,100185,698,100
Operating Expenses116,944,600121,213,700117,410,600123,357,700124,357,700
Grants Loans Benefits98,238,20096,568,10098,000,00098,000,00098,000,000
Debt Service6,360,0007,589,000
Capital Outlay2,967,8002,967,8002,967,800
TOTAL EXPENDITURES404,400,400406,968,500404,076,500410,023,600411,023,600
EXPENDITURES BY FUND SOURCE
General Fund89,809,70096,530,90089,050,60086,536,70086,536,700
Restricted Funds271,695,500260,956,600270,882,600279,343,600280,343,600
Federal Fund42,895,20049,481,00044,143,30044,143,30044,143,300
TOTAL EXPENDITURES404,400,400406,968,500404,076,500410,023,600411,023,600
EXPENDITURES BY UNIT
Instruction101,517,200100,228,90097,694,400103,955,400104,955,400
Research8,372,8007,722,8007,066,2007,066,2007,066,200
Public Service20,775,30021,079,90023,773,10023,773,10023,773,100
Libraries6,622,0006,281,0006,250,0006,250,0006,250,000
Academic Support26,291,30026,745,30029,496,00029,496,00029,496,000
Student Services44,609,30040,201,90037,615,00037,615,00037,615,000
Institutional Support52,483,80060,459,30055,885,90055,885,90055,885,900
Operation and Maintenance of Plant30,770,60028,653,70031,423,80031,109,90031,109,900
Scholarships and Fellowships98,238,20095,927,80098,000,00098,000,00098,000,000
Auxiliary Enterprises14,719,90019,667,90016,872,10016,872,10016,872,100
TOTAL EXPENDITURES404,400,400406,968,500404,076,500410,023,600411,023,600
Founded in 1906, Western Kentucky University is the largest of Kentucky's six comprehensive postsecondary institutions with nearly 16,000 students on the main campus in Bowling Green and at regional campuses in Glasgow, Owensboro, Somerset, and Elizabethtown/Fort Knox. In addition to its traditional mission to train teachers and education leaders for the schools in its service area, WKU provides academic programs in liberal arts and sciences, business, engineering, health sciences and agriculture. WKU is the home of the Gatton Academy of Mathematics and Science for exceptional Kentucky high school juniors and seniors. The Academy was named the number one high school in the United States in 2012 and 2013 by Newsweek. ===== PAGE 336 ===== ## Policy The fiscal year 2026 Postsecondary Education Performance Fund distribution in the amount of $5,261,000 is added to WKU's base General Fund appropriation in fiscal years 2027 and 2028. Included in the base General Fund budget is $5,442,700 in each fiscal year for the Gatton Academy of Mathematics and Science; $1,522,200 in each fiscal year for the Fixed Allocation Pension Subsidy; $1,750,000 in each fiscal year for the Kentucky Mesonet; and $1,866,900 in each fiscal year to support the Commonwealth's Property and Casualty Insurance Fund premium. WKU's Mandated Programs total $10,581,800 in each fiscal year. ===== PAGE 337 =====
Postsecondary Education
Kentucky Community and Technical College System
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation187,833,700187,556,400185,353,900206,292,300206,292,300
Postsecondary Ed Performance21,513,80023,082,60025,281,000
Continuing Approp.-General Fund5,000,0003,895,7772,076,900
Reorganization Adjustment(1,799,700)
Total General Fund212,547,800214,534,777212,711,800206,292,300206,292,300
Restricted Funds
Current Receipts378,563,100428,958,500545,685,000556,562,200563,293,200
Total Restricted Funds378,563,100428,958,500545,685,000556,562,200563,293,200
Federal Fund
Current Receipts205,997,500243,611,700295,517,200295,517,000295,516,800
Total Federal Fund205,997,500243,611,700295,517,200295,517,000295,516,800
TOTAL SOURCE OF FUNDS797,108,400887,104,9771,053,914,0001,058,371,5001,065,102,300
EXPENDITURES BY CLASS
Personnel Costs338,227,700369,095,600415,726,400407,302,500411,036,900
Operating Expenses205,067,900214,443,700233,317,100250,864,000252,503,000
Grants Loans Benefits89,034,700113,246,900309,444,700306,641,800307,496,400
Debt Service23,467,10011,506,800
Capital Outlay141,311,000178,812,00095,425,80093,563,20094,066,000
TOTAL EXPENDITURES797,108,400887,105,0001,053,914,0001,058,371,5001,065,102,300
EXPENDITURES BY FUND SOURCE
General Fund212,547,800214,534,800212,711,800206,292,300206,292,300
Restricted Funds378,563,100428,958,500545,685,000556,562,200563,293,200
Federal Fund205,997,500243,611,700295,517,200295,517,000295,516,800
TOTAL EXPENDITURES797,108,400887,105,0001,053,914,0001,058,371,5001,065,102,300
EXPENDITURES BY UNIT
Instruction197,478,000205,977,200289,313,100306,917,100308,928,400
Public Service44,660,90045,123,20058,222,60059,277,70060,528,300
Libraries6,872,4007,024,8008,407,7008,150,1008,217,100
Academic Support27,718,00030,123,40038,119,00037,155,80037,409,200
Student Services63,882,80069,541,70090,882,00088,971,90089,483,500
Institutional Support91,885,30093,275,000124,928,600121,391,200122,313,000
Operation and Maintenance of Plant123,002,300135,468,100171,395,000165,198,700166,432,300
Scholarships and Fellowships89,318,100113,455,300272,646,000271,309,000271,790,500
Mandatory Transfers
Non-Mandatory Transfers152,290,600187,116,300
TOTAL EXPENDITURES797,108,400887,105,0001,053,914,0001,058,371,5001,065,102,300
The Kentucky Community and Technical College System (KCTCS) was created in 1997 by the merger of the technical college system in the Cabinet for Workforce Development and the community college system then under the direction of the University of Kentucky. There are 16 community and technical colleges operating at more than 70 locations across the state. ===== PAGE 338 ===== The mission of KCTCS is to be a gateway to affordable, high quality postsecondary education. The system maintains an open admissions policy and a robust menu of developmental courses. In addition to industry-specific training leading to portable credentials, the colleges offer a two year academic curriculum designed to transfer to all of Kentucky's four-year institutions. KCTCS provides education and training in 106 program areas, including offering over 12.280 online courses, leading to associate degrees and certificates. The system is Kentucky's largest provider of workforce training, developing and deploying training for 1,345 companies with 83,321 enrollments in fiscal year 2025. KCTCS administers the Kentucky Fire Commission. ## Policy The fiscal year 2026 Postsecondary Education Performance Fund distribution in the amount of $25,281,000 is added to KCTCS' base General Fund appropriation in fiscal years 2027 and 2028. Included in the base General Fund budget is $8,314,600 for KCTCS' Mandated Programs, which includes the following: $4,149,800 in each fiscal year for the KCTCS-TRAINS program; $1,000,000 in each fiscal year for the Adult Agriculture Education program; and $3,164,800 in each fiscal year to support the Commonwealth's Property and Casualty Insurance Fund premium. Included in KCTCS' Restricted Funds appropriation is $62,806,700 in fiscal year 2027 and $63,596,300 in fiscal year 2028 for the Firefighters Foundation Program Fund, which sustains the annual firefighter incentive payment level of $4,562 per year and the annual volunteer fire department aid payment level of $15,000 per year. Also included in the Firefighters Foundation Program Fund Restricted Fund appropriation is $1,869,900 in each fiscal year for State Fire Rescue Training. ===== PAGE 339 =====
Postsecondary Education
Postsecondary EducationFund
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation97,307,100105,000,000115,000,000
Postsecondary Ed Performance(97,307,100)(105,000,000)(115,000,000)
Total General Fund
TOTAL SOURCE OF FUNDS
EXPENDITURES BY CLASS
Operating Expenses
TOTAL EXPENDITURES
EXPENDITURES BY FUND SOURCE
General Fund
TOTAL EXPENDITURES
The 2017 General Assembly enacted Senate Bill 153, now codified in KRS 164.092, which established a comprehensive funding model for Kentucky's public postsecondary education system to distribute resources based on rational criteria, including student success, course completion, and operational support components. The first allocation from the Postsecondary Education Performance Fund was made in fiscal year 2018. ## Policy The Governor's budget recommends that the fiscal year 2026 distribution of the Postsecondary Education Performance Fund remain in each institution's base General Fund appropriation in fiscal years 2027 and 2028 to provide budget certainty for the institutions. ===== PAGE 340 ===== Public Protection ===== PAGE 341 =====
Public Protection
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation8,298,1008,967,6009,196,0002,093,8005,168,500
State Salary and Compensation Allocation292,700
Current Year Appropriation1,000,000
Budget Reduction-General Fund(275,800)
Total General Fund9,590,8008,967,6008,920,2002,093,8005,168,500
Restricted Funds
Balance Forward286,642,771371,776,456354,874,200368,918,40066,389,300
Current Receipts196,754,056223,680,100151,026,800162,533,600165,024,600
Non-Revenue Receipts63,099,782(40,684,266)(38,048,600)(364,880,000)(14,880,000)
Fund Transfers(548,434)
Total Restricted Funds546,496,610554,223,856467,852,400166,572,000216,533,900
Federal Fund
Balance Forward61,6236,757(9,400)
Current Receipts1,240,4491,144,8411,997,9001,991,3001,992,900
Total Federal Fund1,302,0721,151,5981,988,5001,991,3001,992,900
TOTAL SOURCE OF FUNDS557,389,481564,343,054478,761,100170,657,100223,695,300
EXPENDITURES BY CLASS
Personnel Costs85,364,33388,726,32988,295,40086,678,30088,423,300
Operating Expenses11,297,42911,795,33411,080,10011,970,00011,970,000
Grants Loans Benefits87,109,247107,526,04110,047,2005,119,5005,119,500
Capital Outlay1,417,2721,346,868420,000500,000
Construction60
TOTAL EXPENDITURES185,188,281209,394,632109,842,700104,267,800105,512,800
EXPENDITURES BY FUND SOURCE
General Fund9,172,8138,884,1428,920,2002,093,8005,168,500
Restricted Funds174,720,154199,349,53398,934,000100,182,70098,351,400
Federal Fund1,295,3141,160,9571,988,5001,991,3001,992,900
TOTAL EXPENDITURES185,188,281209,394,632109,842,700104,267,800105,512,800
EXPENDITURES BY UNIT
Secretary19,759,11817,338,27517,302,20011,951,00012,155,200
Professional Licensing4,294,8835,064,4835,766,6005,881,9005,975,600
Boxing and Wrestling Commission193,263239,251277,100330,600336,400
Alcoholic Beverage Control6,971,8327,449,0548,164,30010,402,10010,056,500
Charitable Gaming4,186,4953,821,983
Financial Institutions15,698,28816,102,63118,675,30018,394,80018,744,100
Horse Racing Commission87,704,510111,841,1563,658,100
Housing, Buildings and Construction27,955,73327,727,79729,123,00029,813,10030,431,200
Insurance15,422,99416,637,38122,610,30023,319,00023,597,600
Claims and Appeals3,001,1673,172,6204,265,8004,175,3004,216,200
TOTAL EXPENDITURES185,188,281209,394,632109,842,700104,267,800105,512,800
===== PAGE 342 ===== The mission of the Public Protection Cabinet is to provide for public safety, consumer protection and financial integrity through the enforcement and administration of laws and regulations throughout the Commonwealth. The Cabinet has six departments: Department of Alcoholic Beverage Control Department of Financial Institutions Department of Housing, Buildings and Construction Department of Insurance Department of Professional Licensing. Attached to the Cabinet for administrative purposes only: • Kentucky Boxing & Wrestling Commission Office of Claims and Appeals The Office of the Secretary also includes the Office of Administrative Services, the Office of Communications and Public Outreach, Office of Administrative Hearings, and the Office of Legal Services. The Kentucky Horse Racing and Gaming Corporation was established by 24 RS SB 299 and codified in KRS 230.225. This legislation moved the Horse Racing Commission to the new Corporation as of July 1, 2024 and moved Charitable Gaming to the new Corporation as of July 1, 2025. These two agencies are now no longer a part of the Commonwealth's budget. ===== PAGE 343 =====
Public Protection\nSecretary
Actual\nFY 2024Actual\nFY 2025Revised\nFY 2026Recommended\nFY 2027Recommended\nFY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward19,165,6519,646,8277,075,5002,233,3003,632,300
Current Receipts606,0942,856,947550,000350,000350,000
Non-Revenue Receipts9,634,20011,910,00011,910,00013,000,00013,000,000
Total Restricted Funds29,405,94524,413,77419,535,50015,583,30016,982,300
TOTAL SOURCE OF FUNDS29,405,94524,413,77419,535,50015,583,30016,982,300
EXPENDITURES BY CLASS
Personnel Costs9,700,42010,540,69611,527,20011,091,00011,295,200
Operating Expenses525,178608,611847,300860,000860,000
Grants Loans Benefits9,489,1186,188,9684,927,700
Capital Outlay44,402
TOTAL EXPENDITURES19,759,11817,338,27517,302,20011,951,00012,155,200
EXPENDITURES BY FUND SOURCE
General Fund
Restricted Funds19,759,11817,338,27517,302,20011,951,00012,155,200
TOTAL EXPENDITURES19,759,11817,338,27517,302,20011,951,00012,155,200
EXPENDITURES BY UNIT
Office of the Secretary - Comm - Legal10,267,90711,130,87912,344,70011,951,00012,155,200
Eastern KY Flood Relief Fund2,440,6542,627,5883,054,800
Team KY Storm Relief Fund538,0651,902,700
Western KY Tornado Relief Fund7,050,5573,041,742
TOTAL EXPENDITURES19,759,11817,338,27517,302,20011,951,00012,155,200
The Office of the Secretary (OOS) provides leadership, management, and direction to the Public Protection Cabinet's (PPC) agencies to ensure the delivery of services is conducted in a consistent, ethical, and coordinated manner. The Secretary, appointed by the Governor, is responsible for ensuring the enforcement of statutes and administrative regulations for programmatic areas within the cabinet, and establishes the focus for policy development as well as program priorities. The Secretary serves as the Chief Executive Officer of the cabinet and advises the Governor on policy matters relating to public protection issues. The Office coordinates activities among the agencies organized under the Cabinet to provide the most efficient delivery of services to the citizens of the Commonwealth. ## Policy The Governor's budget includes additional funding in the amount of $151,500 in fiscal year 2027 and $311,100 in fiscal year 2028 to fund a 2% salary increment in 2027 and an additional 2% in fiscal year 2028. ===== PAGE 344 =====
Public Protection Claims and Appeals
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,083,6002,215,7002,246,8002,093,8002,116,200
State Salary and Compensation Allocation29,300
Current Year Appropriation1,000,000
Budget Reduction-General Fund(67,400)
Total General Fund2,112,9002,215,7002,179,4002,093,8002,116,200
Restricted Funds
Balance Forward1,152,9561,427,2681,623,4001,191,1001,266,500
Current Receipts916,566941,490885,000885,000885,000
Non-Revenue Receipts500,000500,000
Total Restricted Funds2,069,5222,368,7582,508,4002,576,1002,651,500
Federal Fund
Balance Forward(12,800)
Current Receipts664,000282,203781,900771,900773,500
Total Federal Fund664,000282,203769,100771,900773,500
TOTAL SOURCE OF FUNDS4,846,4224,866,6615,456,9005,441,8005,541,200
EXPENDITURES BY CLASS
Personnel Costs1,430,9551,639,5082,008,6001,908,9001,949,800
Operating Expenses1,377,6401,290,1931,877,2001,886,4001,886,400
Grants Loans Benefits192,572242,920380,000380,000380,000
TOTAL EXPENDITURES3,001,1673,172,6204,265,8004,175,3004,216,200
EXPENDITURES BY FUND SOURCE
General Fund1,694,9132,132,2422,179,4002,093,8002,116,200
Restricted Funds642,254745,3741,317,3001,309,6001,326,500
Federal Fund664,000295,004769,100771,900773,500
TOTAL EXPENDITURES3,001,1673,172,6204,265,8004,175,3004,216,200
EXPENDITURES BY UNIT
Office of Claims and Appeals Administration1,555,1541,789,6312,136,0002,045,5002,086,400
Office of Claims and Appeals Reparations1,446,0131,382,9902,129,8002,129,8002,129,800
TOTAL EXPENDITURES3,001,1673,172,6204,265,8004,175,3004,216,200
The Office of Claims and Appeals was created in KRS 49.010. The Office consists of three separate and distinct administrative boards attached to the Office within the meaning of KRS 12:020: the Board of Tax Appeals, the Board of Claims and the Crime Victims Compensation Board. The Board of Tax Appeals has exclusive jurisdiction to hear and resolve appeals arising from final rulings, orders, and determinations of any agency of state or county government relating to revenue and taxation. The Board of Claims is the only forum through which a citizen may sue the state for alleged negligence. Payments to claimants of less than $5,000 are from funds of the state agency determined to be at fault, awards over $5,000 disbursed from appropriations from the General Fund (ANOC), and awards against the Transportation Cabinet distributed from the Road Fund. The maximum award on a single claim is $250,000 and there is a cap of $400,000 on multiple claims arising from the same incident. ===== PAGE 345 ===== The Crime Victims Compensation Board as a payer of last resort is able to reimburse innocent crime victims up to $30,000 for their medical expenses, lost wages that are not paid by any other source, and includes funeral expenses up to $7,500. Senate Bill 319 passed in the 2024 Regular Session, effective July 15, 2024, increases the total maximum award from $30,000 to $50,000, increases funeral expenses up to $10,000 and expands other types of costs that can be reimbursed. The Commission receives an allocation of 3.4 % of the state court cost fees and pursuant to KRS 186.574 receives 5.7% of the $30 fee from county attorney's traffic safety programs. Pursuant to KRS 216B.400 and KRS 49, the Crime Victims Compensation Board is responsible for paying health care providers and facilities for sexual assault examinations. The Commission receives federal funding from the Victims of Crime Act (VOCA) matching grant at 60% based on prior year claims from General and Restricted Funds. ## Policy The Governor's budget includes additional funding in the amount of $30,700 in fiscal year 2027 and $63,100 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 $16,900 and $34,700, respectively. ===== PAGE 346 =====
• Kentucky Board of Alcohol and Drug Counselors• Kentucky Board of Registration for Professional Geologists
• Kentucky Board of Licensure and Certification for Dietitians and Nutritionists• Kentucky Board of Interpreters for the Deaf and Hard of Hearing
• Kentucky Board of Licensure for Pastoral Counselors• Kentucky Board of Licensed Professional Counselors
• Kentucky Board of Ophthalmic Dispensers• Kentucky Board of Licensure of Marriage and Family Therapists
• Kentucky Board of Licensure for Long-term Care Administrators• Kentucky Licensing Board for Specialists in Hearing Instruments
• Kentucky Directory of Registered Athlete Agents• Kentucky Board of Speech-Language Pathology & Audiology
Public Protection Professional Licensing
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward12,690,74114,882,26414,311,80015,702,30014,970,300
Current Receipts6,685,2234,519,5897,052,4004,985,2007,521,200
Non-Revenue Receipts(200,000)(100,000)(100,000)(40,000)(40,000)
Total Restricted Funds19,175,96319,301,85321,264,20020,647,50022,451,500
Federal Fund
Balance Forward(12,200)
Current Receipts1,18362,328216,900204,700204,700
Total Federal Fund1,18362,328204,700204,700204,700
TOTAL SOURCE OF FUNDS19,177,14719,364,18121,468,90020,852,20022,656,200
EXPENDITURES BY CLASS
Personnel Costs3,581,1414,295,0504,732,9004,804,7004,898,400
Operating Expenses642,598668,216954,700998,200998,200
Grants Loans Benefits71,144101,21779,00079,00079,000
TOTAL EXPENDITURES4,294,8835,064,4835,766,6005,881,9005,975,600
EXPENDITURES BY FUND SOURCE
Restricted Funds4,293,6994,990,0055,561,9005,677,2005,770,900
Federal Fund1,18374,479204,700204,700204,700
TOTAL EXPENDITURES4,294,8835,064,4835,766,6005,881,9005,975,600
EXPENDITURES BY UNIT
Occupations, Professions, and Licensing2,234,3762,364,2542,627,1002,673,8002,724,800
Kentucky Real Estate Authority2,060,5072,700,2293,139,5003,208,1003,250,800
TOTAL EXPENDITURES4,294,8835,064,4835,766,6005,881,9005,975,600
KRS 224.10-052 initially established the Office of Occupations and Professions (O & P) with the responsibility of providing general administrative services to state regulatory boards/entities at the option of the board/commission. In April 2017, Executive Order 2017-325 was codified in KRS 324B.020 to restructure the Office, thus creating the Department of Professional Licensing (DPL). Through utilization of DPL services, these boards license and/or track licensure status for approximately 46,000 individuals/businesses throughout the Commonwealth each year. The boards/entities served by DPL include: ===== PAGE 347 ===== • Kentucky Board of Licensure for Massage Therapy • Kentucky Board of Podiatry - Kentucky Board of Licensure for Professional Art Therapists - Kentucky Board of Licensure for Private Investigators • Kentucky Board of Chiropractic Examiners • Kentucky Applied Behavior Analysis Licensing Board • Kentucky Board of Examiners of Psychology - Kentucky Board of Prosthetics, Orthotics, and Pedorthics - Kentucky Board of Licensure for Occupational Therapy - Kentucky Board of Licensed Diabetes Educators • Kentucky Registry of Secondary Metals Recyclers - Kentucky Board of Durable Medical Equipment Suppliers • Kentucky Board of Radon Safety Executive Order 2016-859 was codified in KRS 324B.050 to establish the Kentucky Real Estate Authority within the Department in order to provide oversight of the four professional licensing boards that serve functions in the real estate industry. The four boards were abolished and the Board of Real Estate Professionals, Kentucky Board of Real Estate Appraisers, Board of Home Inspectors and Kentucky Board of Auctioneers were recreated under the Authority. Each board under the Authority has five voting members and an Executive Director. The Real Estate Authority utilizes the administrative support services provided by the Department of Professional Licensing. ## Policy The Governor's budget includes additional funding in the amount of $67,600 in fiscal year 2027 and $138,800 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. The budget also includes $232,200 in fiscal year 2027 and $231,400 in fiscal year 2028 to fund two additional full-time positions to support increased licensee volume. ===== PAGE 348 =====
Public Protection Boxing and Wrestling Commission
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward121,378167,187356,000525,900642,300
Current Receipts239,072428,049447,000447,000447,000
Total Restricted Funds360,450595,235803,000972,9001,089,300
TOTAL SOURCE OF FUNDS360,450595,235803,000972,9001,089,300
EXPENDITURES BY CLASS
Personnel Costs179,889218,177239,900260,700266,500
Operating Expenses13,37421,07437,20069,90069,900
TOTAL EXPENDITURES193,263239,251277,100330,600336,400
EXPENDITURES BY FUND SOURCE
Restricted Funds193,263239,251277,100330,600336,400
TOTAL EXPENDITURES193,263239,251277,100330,600336,400
EXPENDITURES BY UNIT
Boxing and Wrestling Commission193,263239,251277,100330,600336,400
TOTAL EXPENDITURES193,263239,251277,100330,600336,400
The Boxing and Wrestling Commission, pursuant to KRS Chapter 229, is the sole authority over professional boxing, wrestling, and amateur and professional mixed martial arts (MMA) shows or exhibitions in Kentucky. The five Commission members are appointed by the Governor and recommend statutory and regulatory changes, review applications for licensure and review recommendations from the Kentucky Boxing and Wrestling Commission Medical Advisory Panel. The Commission is responsible for enforcement of KRS Chapter 229 and 201 KAR Chapter 27 including investigation of complaints and issuance of violations, processing licenses for all parties involved including: professional and amateur MMA contestants, professional boxers, professional wrestlers, managers, trainers, referees, judges, timekeepers, physicians, promoters, and event staff. Requested show dates and participants are subject to the Commission review and approval. All wrestling events undergo inspection on a random basis and a Commission Inspector supervises all boxing and MMA events. ## Policy The Governor's budget includes additional funding in the amount of $4,100 in fiscal year 2027 and $8,500 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. The Governor's budget includes $70,000 in each fiscal year to fund an additional part-time position. This position is necessary to properly monitor the increased number of events. ===== PAGE 349 =====
Public Protection Alcoholic Beverage Control
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward8,114,16810,898,76813,255,60014,156,00010,408,600
Current Receipts10,562,13211,550,74810,945,00014,530,00014,285,000
Non-Revenue Receipts(1,435,832)(1,987,906)(2,895,000)(8,890,000)(8,890,000)
Fund Transfers(548,434)
Total Restricted Funds17,240,46819,913,17621,305,60019,796,00015,803,600
Federal Fund
Balance Forward61,6236,75715,600
Current Receipts575,266800,310999,1001,014,7001,014,700
Total Federal Fund636,888807,0671,014,7001,014,7001,014,700
TOTAL SOURCE OF FUNDS17,877,35720,720,24322,320,30020,810,70016,818,300
EXPENDITURES BY CLASS
Personnel Costs5,887,8686,223,5966,667,9008,054,6008,209,000
Operating Expenses883,997930,5581,371,4001,722,5001,722,500
Grants Loans Benefits205,750125,000125,000125,000
Capital Outlay199,96689,150500,000
TOTAL EXPENDITURES6,971,8327,449,0548,164,30010,402,10010,056,500
EXPENDITURES BY FUND SOURCE
Restricted Funds6,341,7006,657,5797,149,6009,387,4009,041,800
Federal Fund630,131791,4751,014,7001,014,7001,014,700
TOTAL EXPENDITURES6,971,8327,449,0548,164,30010,402,10010,056,500
EXPENDITURES BY UNIT
Administration, Enforcement and License6,327,6986,591,3036,995,8006,492,1006,646,600
Tobacco Enforcement644,134857,7511,168,5001,160,0001,159,900
Tobacco, Nicotine, and Vapor Product Licensing2,750,0002,250,000
TOTAL EXPENDITURES6,971,8327,449,0548,164,30010,402,10010,056,500
The Department of Alcoholic Beverage Control (ABC) administers and enforces the laws and regulations relating to the manufacturing, sales, transportation, storage, advertising and trafficking of alcoholic beverages, except for the collection of taxes, as set out in the Kentucky Revised Statutes (KRS) Chapters 241 to 244 and Title 804 of the Kentucky Administrative Regulations. The Commissioner is the Department's chief executive officer and serves as chairman of the separate three-member, quasi-judicial administrative body--Alcoholic Beverage Control Board (Board). The distilled spirits and the malt beverage administrators review applications, sign licenses for issuance, and serve as two members of the Board. The Department's primary responsibility is to regulate the alcoholic beverage industry by licensing the production and sale of alcoholic beverages in the state of Kentucky, while enforcing the alcoholic beverage control laws. The Department also implements laws, pursuant to KRS 438.300 – 438.350, relating to the use, display, sell or distribution of tobacco products with an emphasis on persons under the age of eighteen. Senate Bill 100, passed in the 2025 Regular Session of the Kentucky General Assembly, amended KRS 241.020 to establish the Division of Tobacco, Nicotine and Vapor Product Licensing within the Department of Alcoholic Beverage Control. This new division will license and regulate the sale of tobacco, nicotine, or vapor products, effective January 1, 2026. ===== PAGE 350 ===== ## Policy The budget includes additional Restricted Funds of $2,750,000 in fiscal year 2027 and $2,250,000 in fiscal year 2028 to fund the new Division of Tobacco, Nicotine and Vapor Product Licensing. The Governor's budget includes additional funding in the amount of $99,700 in fiscal year 2027 and $205,400 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. The budget includes Restricted Funds of $13,200 in each fiscal year for the training incentive stipend for alcohol beverage control investigators. The stipend payments are provided from the Kentucky Law Enforcement Foundation Program Fund. The stipend payment is $4,562 in each fiscal year. ===== PAGE 351 =====
Public ProtectionCharitable Gaming
ActualFY 2024ActualFY 2025RevisedFY 2026RecommendedFY 2027RecommendedFY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward6,010,8077,280,6153,757,500
Current Receipts6,020,7558,964,550
Non-Revenue Receipts(564,451)(8,665,635)(3,757,500)
Total Restricted Funds11,467,1107,579,530
TOTAL SOURCE OF FUNDS11,467,1107,579,530
EXPENDITURES BY CLASS
Personnel Costs3,780,6643,290,021
Operating Expenses372,047337,738
Grants Loans Benefits2,5002,500
Capital Outlay31,284191,724
TOTAL EXPENDITURES4,186,4953,821,983
EXPENDITURES BY FUND SOURCE
Restricted Funds4,186,4953,821,983
TOTAL EXPENDITURES4,186,4953,821,983
EXPENDITURES BY UNIT
Charitable Gaming4,186,4953,821,983
TOTAL EXPENDITURES4,186,4953,821,983
===== PAGE 352 =====
Public Protection Financial Institutions
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward12,053,45414,991,95818,941,70020,536,40013,413,600
Current Receipts21,036,79322,802,37623,020,00023,022,00023,022,000
Non-Revenue Receipts(2,400,000)(2,750,000)(2,750,000)(11,750,000)(11,750,000)
Total Restricted Funds30,690,24635,044,33539,211,70031,808,40024,685,600
TOTAL SOURCE OF FUNDS30,690,24635,044,33539,211,70031,808,40024,685,600
EXPENDITURES BY CLASS
Personnel Costs14,118,51114,544,42517,203,60016,765,50017,114,800
Operating Expenses1,577,7231,556,4831,467,2001,624,8001,624,800
Grants Loans Benefits2,0531,7244,5004,5004,500
TOTAL EXPENDITURES15,698,28816,102,63118,675,30018,394,80018,744,100
EXPENDITURES BY FUND SOURCE
Restricted Funds15,698,28816,102,63118,675,30018,394,80018,744,100
TOTAL EXPENDITURES15,698,28816,102,63118,675,30018,394,80018,744,100
EXPENDITURES BY UNIT
Administrative Services1,733,2461,142,4491,663,1001,644,6001,670,500
Securities3,043,2792,994,4063,555,3003,500,0003,569,900
Depository Institutions6,816,7867,070,1308,072,5007,954,9008,102,900
Non-Depository Institutions4,104,9784,895,6475,384,4005,295,3005,400,800
TOTAL EXPENDITURES15,698,28816,102,63118,675,30018,394,80018,744,100
The Department of Financial Institutions, pursuant to KRS Chapters 286 and 292, licenses and regulates banks, bank holding companies, trust companies, credit unions, savings and loan associations, consumer loan companies, industrial loan companies, mortgage loan companies, mortgage loan brokers, check cashing licensees, sale of check licensees, securities issuers, broker-dealers, agents, and investment advisors. A Commissioner appointed by the Governor heads the Department. The Commissioner's Office is responsible for the overall management of the agency. The Public Information Officer is part of the Commissioner's Office and is responsible for all communications with the media and handling the department's public relations efforts through coordination of educational seminars, brochures, and newsletters. The Division of Securities carries out the registration of securities issuances in the state. The Division registers broker-dealers, their agents, investment advisers, and investment adviser representatives, and conducts on-site examinations of these regulated entities. The Division investigates allegations of securities fraud or other illegal conduct entities involved in the securities industry that is operating within Kentucky. The Division of Depository Institutions licenses/charters, examines and regulates depository financial institutions within the Bank Branch and Credit Union Branch. The Bank Branch is responsible for the examination and supervision of commercial banks, bank holding companies, and independent trust companies. The Credit Union Branch is responsible for examination and supervision of all state chartered credit unions. The Division of Non-Depository Institutions includes both the Compliance Branch and Consumer Protection Branch. The Compliance Branch is responsible for the examination and supervision of consumer loan companies, industrial loan companies, mortgage loan companies, mortgage loan brokers, check cashing licensees, and money transmitters. The Consumer Protection Branch is responsible for the investigation of complaints and provides outreach and education to protect consumers from financial frauds. ===== PAGE 353 ===== ## Policy The Governor's budget includes additional funding in the amount of $277,300 in fiscal year 2027 and $569,700 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 354 =====
Public Protection
Housing, Buildings and Construction
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation3,419,9003,085,4003,178,0003,052,300
State Salary and Compensation Allocation83,800
Budget Reduction-General Fund(95,300)
Total General Fund3,503,7003,085,4003,082,7003,052,300
Restricted Funds
Balance Forward16,809,60519,660,35220,871,10021,511,70018,504,500
Current Receipts27,402,77928,147,07227,030,90027,155,90027,255,900
Non-Revenue Receipts(100,000)(2,293,919)(350,000)(350,000)(350,000)
Total Restricted Funds44,112,38445,513,50547,552,00048,317,60045,410,400
TOTAL SOURCE OF FUNDS47,616,08448,598,90550,634,70048,317,60048,462,700
EXPENDITURES BY CLASS
Personnel Costs24,203,96823,768,73825,825,10026,578,10027,196,200
Operating Expenses2,837,2902,946,9322,876,9003,234,0003,234,000
Grants Loans Benefits204511,0001,0001,000
Capital Outlay914,2711,012,077420,000
TOTAL EXPENDITURES27,955,73327,727,79729,123,00029,813,10030,431,200
EXPENDITURES BY FUND SOURCE
General Fund3,503,7003,085,4003,082,7003,052,300
Restricted Funds24,452,03324,642,39726,040,30029,813,10027,378,900
TOTAL EXPENDITURES27,955,73327,727,79729,123,00029,813,10030,431,200
EXPENDITURES BY UNIT
General Administration and Management3,266,4403,153,9972,959,8002,904,2002,934,000
Fire Prevention250,100254,000351,000337,400344,700
Boiler Inspections1,262,639944,1431,032,1001,181,6001,203,300
Hazardous Materials Inspections1,129,8641,100,0721,098,4001,238,3001,262,100
Manufactured Housing Inspections1,248,8301,209,0291,264,0001,222,2001,252,700
General Inspections2,067,7001,953,6001,804,5001,751,3001,798,100
Sprinkler/Alarm Inspections23,00066,796105,000107,600107,600
Elevator Inspections2,002,9051,883,9381,963,4001,919,6001,971,300
Plumbing7,952,5727,853,7688,016,2007,947,8008,127,200
Safe Cigarette Program6,00022,50725,00025,90025,900
HVAC3,097,9043,246,1523,757,1003,834,5003,920,300
Building Codes Enforcement4,255,1294,448,8604,844,2004,965,0005,068,400
Electrical1,392,6491,590,9371,902,3002,377,7002,415,600
TOTAL EXPENDITURES27,955,73327,727,79729,123,00029,813,10030,431,200
===== PAGE 355 ===== The mission of the Department of Housing, Buildings and Construction is to protect the life and property of the citizens of the Commonwealth through educational, licensing, plan review, permitting, inspection, and compliance programs in the administration of codes and standards relating to the construction and maintenance of buildings and structures consistent with KRS 198B, 318, 227A, and KAR Title 815. The Department accomplishes this by providing oversight of building construction through enforcement of building and fire codes to include: Plumbing, Boiler, HVAC, Electrical, Elevator, Manufactured Housing, and Hazardous Materials installations. The Department also ensures fire and life safety in existing buildings; licenses/certifies plumbers, boiler contractors, HVAC installers, electricians, elevator mechanics and contractors, manufactured housing installers, underground storage tank installers, sprinkler/fire alarm inspectors, and building inspectors; and serves as headquarters for the State Fire Marshal. The Division of Fire Prevention enforces the Kentucky Standards of Safety (815 KAR 10:060) in addition to state and federal laws and regulations by performing property inspections, reviewing plans and issuing permits for the underground storage tanks, and educating the public about fire safety. The Division of Plumbing, a fee-supported program, enforces the Kentucky State Plumbing code (KRS 318.130; 815 KAR Chapter 20). Duties of the Division include: installation inspections of all plumbing systems throughout the state; approval of plumbing plans for all public buildings; testing of applicants for licensure; issuing renewal licenses to master and journeyman plumbers, and assisting the State Plumbing Code Committee in its review of plumbing code administrative regulations. The Division of Heating, Ventilation, and Air Conditioning (HVAC) is responsible for annual licensing and oversight of the heating, ventilation, and air conditioning contractors, journeymen, and apprentices. The Division of Building Codes Enforcement (BCE) provides overall coordination and enforcement of the Kentucky Building Code (815 KAR 7:120) and the Kentucky Residential Code (815 KAR 7:125). Among the duties of this division are inspection, plan review, licensing, investigation, and technical consulting services to the construction industry supported primarily from plan review fees. The Division of Electrical Licensing and Electrical Inspection Sections. The Electrical Division enforces the mandates contained within KRS Chapter 227A and 815 KAR 35:020 to protect the public through regulation, licensure and inspection of the electrical industry. ## Policy The budget includes the following additional Restricted Funds to Housing, Buildings, and Construction: • $182,600 in fiscal year 2027 and $182,000 in fiscal year 2028, for additional positions and operating expenditures for the Division of Hazardous Materials Inspections • $182,600 in fiscal year 2027 and $182,000 in fiscal year 2028, for additional positions and operating expenditures for the Division of Boiler Inspections $206,900 in fiscal year 2027 and $206,200 in fiscal year 2028, for additional positions and operating expenditures for the Division of Plumbing $198,800 in fiscal year 2027 and $198,100 in fiscal year 2028 for additional positions, and operating expenses for the Division of Heating, Ventilation and Air Conditioning $299,700 in fiscal year 2027 and $298,700 in 2028 for additional positions and operating expenditures for the Division of Building Codes Enforcement $531,900 in fiscal year 2027 and $530,000 in fiscal year 2028, for additional positions and operating expenditures for the Division of Plumbing The Governor's budget includes additional funding in the amount of $422,200 in fiscal year 2027 and $867,000 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 356 =====
Public Protection Insurance
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward120,412,908170,818,225235,375,500293,061,7003,551,200
Current Receipts71,449,36886,676,77981,096,50091,158,50091,258,500
Non-Revenue Receipts(5,621,057)(5,482,053)(800,000)(357,350,000)(7,350,000)
Total Restricted Funds186,241,219252,012,951315,672,00026,870,20087,459,700
TOTAL SOURCE OF FUNDS186,241,219252,012,951315,672,00026,870,20087,459,700
EXPENDITURES BY CLASS
Personnel Costs13,786,28915,104,81516,432,10017,214,80017,493,400
Operating Expenses1,636,7041,532,5661,648,2001,574,2001,574,200
Grants Loans Benefits4,530,0004,530,0004,530,000
TOTAL EXPENDITURES15,422,99416,637,38122,610,30023,319,00023,597,600
EXPENDITURES BY FUND SOURCE
Restricted Funds15,422,99416,637,38122,610,30023,319,00023,597,600
TOTAL EXPENDITURES15,422,99416,637,38122,610,30023,319,00023,597,600
EXPENDITURES BY UNIT
Executive Director and Administration2,143,7932,309,7792,298,0002,280,2002,318,600
Financial Standards and Examination2,337,5122,545,7382,757,6003,487,3003,506,800
Agent Licensing1,688,1031,662,7621,694,4001,676,4001,709,800
Consumer Protection2,849,3703,083,8193,247,8003,194,8003,246,900
Insurance Fraud Investigation1,862,5791,889,3452,152,5002,060,2002,112,400
Mine Subsidence Program74,78387,83098,00098,00098,000
Health and Life Insurance and Managed Care2,779,1863,117,2503,173,3003,134,5003,178,600
Strengthen Kentucky Homes Program5,000,0005,000,0005,000,000
Property and Casualty1,687,6681,940,8592,188,7002,387,6002,426,500
TOTAL EXPENDITURES15,422,99416,637,38122,610,30023,319,00023,597,600
The Department of Insurance, pursuant to KRS Chapter 304, has the authority to license, supervise, and regulate entities and individuals doing insurance business in Kentucky. The Commissioner is responsible for the overall policy, planning, direction, and management of all divisions within the Department. It is the responsibility of the Commissioner to oversee the manner in which the business of insurance is conducted in Kentucky. The Commissioner is charged with protecting the public interest, promoting viable markets, and assuring fair treatment of insurance consumers. An ombudsman provides additional assistance to consumers. The Health and Life Insurance and Managed Care Division regulates insurance companies and health maintenance organizations offering various types of health and life insurance products. This division approves policies, certificates, provider networks, quality improvement programs, rate filings and other forms necessary to ensure that the health and life products meet statutory and regulatory standards. The Financial Standards and Examination Division protects consumers by ensuring the financial solvency of insurers authorized to do business in Kentucky. The Division is responsible for conducting financial examinations, financial analyses, and providing administrative oversight of the insurance industry. The Insurance Fraud Investigation Division is the Department's law enforcement unit empowered to conduct criminal investigations of suspected fraudulent insurance acts. ===== PAGE 357 ===== The Agent Licensing Division makes certain that only knowledgeable and qualified insurance representatives sell insurance products to Kentucky consumers. The Division administers examinations, monitors continuing education courses, and licenses agents, administrators, adjusters, and consultants. I ne Consumer Protection Division is the main link between the Department and the citizens of the Commonwealth. The Division also administers the emergency response program, which provides on-site assistance to citizens or communities affected by insured disasters within the Commonwealth. The Market Conduct Unit of Consumer Protection analyzes and examines the business practices of insurers. The Mine Subsidence program is responsible for management of premiums collected for insurance coverage against losses arising out of or due to collapsed underground coal mines within Kentucky covered by the program. The Property and Casualty Division regulates admitted property and casualty insurers and self-insured groups. ## Policy The budget includes additional Restricted Funds of $975,000 in each fiscal year for additional actuary hours in the Property and Casualty Division and the Financial Standards and Examination Division. The Governor's budget includes additional funding in the amount of $191,000 in fiscal year 2027 and $392,600 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 358 ===== Tourism, Arts and Heritage ===== PAGE 359 =====
Tourism, Arts and Heritage Tourism, Arts and Heritage
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation99,620,500101,095,700100,935,50095,618,70093,516,800
State Salary and Compensation Allocation3,229,300
Continuing Approp.-General Fund6,251,000
Reorganization Adjustment(230,000)
Budget Reduction-General Fund(1,073,600)
Total General Fund108,870,800101,095,70099,861,90095,618,70093,516,800
Restricted Funds
Balance Forward158,013,843163,677,358151,444,300131,388,600123,945,900
Current Receipts199,463,962197,593,871191,682,600197,226,500208,311,900
Non-Revenue Receipts(4,191,522)(193,696)(6,918,900)(6,098,500)(6,168,900)
Total Restricted Funds353,286,283361,077,533336,208,000322,516,600326,088,900
Federal Fund
Balance Forward3,227,0777,995,886790,8741,415,1002,742,900
Current Receipts50,988,65735,657,62532,763,22632,903,00032,785,000
Non-Revenue Receipts(2,359,447)(13,205,879)(2,359,500)(2,359,500)(2,359,500)
Total Federal Fund51,856,28630,447,63231,194,60031,958,60033,168,400
TOTAL SOURCE OF FUNDS514,013,370492,620,865467,264,500450,093,900452,774,100
EXPENDITURES BY CLASS
Personnel Costs187,079,823183,565,535190,547,200192,438,700191,795,900
Operating Expenses106,106,613126,336,258108,711,800102,446,400104,961,800
Grants Loans Benefits23,166,5659,812,93215,815,50010,331,00010,344,900
Debt Service16,432,0078,475,7922,945,3002,945,3002,945,300
Capital Outlay9,383,22110,945,95916,441,00015,243,70015,191,900
Construction73,29899,219
TOTAL EXPENDITURES342,241,527339,235,695334,460,800323,405,100325,239,800
EXPENDITURES BY FUND SOURCE
General Fund108,772,20199,945,57799,861,90095,618,70093,516,800
Restricted Funds189,608,925209,633,240204,819,400198,570,700202,141,900
Federal Fund43,860,40129,656,87729,779,50029,215,70029,581,100
TOTAL EXPENDITURES342,241,527339,235,695334,460,800323,405,100325,239,800
EXPENDITURES BY UNIT
Secretary34,698,98935,164,11027,540,80023,723,20023,983,500
Artisans Center2,724,9362,444,4052,725,7002,516,7002,562,500
Kentucky Department of Tourism3,151,2613,519,9234,198,1003,440,4003,515,800
Parks120,098,429124,153,996110,915,900116,332,300115,613,000
Horse Park Commission14,537,69317,336,58715,218,80014,432,30014,629,200
State Fair Board69,620,39168,947,13965,475,40062,079,60062,627,600
Fish and Wildlife Resources80,798,52670,510,20687,699,80086,372,70087,521,500
Historical Society7,477,7439,271,00310,870,1007,646,0007,835,300
Arts Council2,838,1003,077,1922,923,0002,703,7002,732,900
===== PAGE 360 =====
Heritage Council5,737,1594,188,6356,289,4003,554,4003,614,700
Kentucky Center for the Arts558,300622,500603,800603,800603,800
TOTAL EXPENDITURES342,241,527339,235,695334,460,800323,405,100325,239,800
The Tourism, Arts and Heritage Cabinet's mission is to capitalize on the natural assets of the Commonwealth and draw from resources in business development, tourism, outdoor attractions, arts, and cultural heritage. Through unified efforts of its agencies, the Cabinet will continually strive to improve the quality of life of the people of Kentucky by creating new wealth and generating jobs. The Tourism, Arts and Heritage Cabinet is comprised of the following agencies: • Kentucky State Fair Board • Kentucky Heritage Council • Kentucky Arts Council • Kentucky Historical Society • Kentucky Center for the Arts • Governor's School for the Arts Department of Fish and Wildlife Resources • Kentucky Horse Park • Kentucky Department of Parks • Kentucky Artisan Center at Berea Department of Tourism Office of the Secretary • The Kentucky Humanities Council ===== PAGE 361 =====
Tourism, Arts and Heritage Secretary
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation3,583,1003,830,5003,908,0003,297,1003,632,500
State Salary and Compensation Allocation135,900 (230,000)
Reorganization Adjustment(117,200)
Budget Reduction-General Fund
Other(380,000)(250,000)
Total General Fund3,109,0003,580,5003,790,8003,297,1003,632,500
Restricted Funds
Balance Forward8,754,66912,182,2537,582,0002,332,0001,226,300
Current Receipts584,549748,955
Non-Revenue Receipts20,342,03520,031,67418,500,00019,320,40019,250,000
Total Restricted Funds29,681,25332,962,88226,082,00021,652,40020,476,300
Federal Fund
Balance Forward(581,654)
Current Receipts14,692,4326,206,177
Total Federal Fund14,110,7776,206,177
TOTAL SOURCE OF FUNDS46,901,03042,749,55929,872,80024,949,50024,108,800
EXPENDITURES BY CLASS
Personnel Costs2,738,5092,623,8573,046,0002,825,3002,884,300
Operating Expenses22,972,36130,721,00922,744,80019,647,90019,849,200
Grants Loans Benefits8,988,1191,819,2441,750,0001,250,0001,250,000
TOTAL EXPENDITURES34,698,98935,164,11027,540,80023,723,20023,983,500
EXPENDITURES BY FUND SOURCE
General Fund3,089,2123,577,0403,790,8003,297,1003,632,500
Restricted Funds17,499,00025,380,89223,750,00020,426,10020,351,000
Federal Fund14,110,7776,206,177
TOTAL EXPENDITURES34,698,98935,164,11027,540,80023,723,20023,983,500
EXPENDITURES BY UNIT
Executive Policy and Management17,199,9909,783,2173,790,8003,473,2003,733,500
Tourism Meeting & Convention Marketing17,499,00025,380,89223,750,00020,250,00020,250,000
TOTAL EXPENDITURES34,698,98935,164,11027,540,80023,723,20023,983,500
The Office of the Secretary's appropriation unit comprises: Executive Policy and Management - The Executive Policy and Management unit directs planning and management of the agencies within the Cabinet. This program develops plans to assure orderly growth and improved management, recommends executive actions and legislative measures, and evaluates agency budget requests. Tourism, Meeting, and Convention Marketing Fund – This fund is established by KRS 142.406 with revenues from a one percent transient room tax dedicated for the sole purpose of marketing and promoting tourism in the Commonwealth, including expenditures to market and promote events and venues related to meetings, conventions, trade shows, cultural activities, historical sites, recreation, entertainment, natural phenomena, areas of scenic beauty, craft marketing, and any other economic activity that brings tourists and visitors to the Commonwealth. ===== PAGE 362 ===== ## Policy The Governor's budget includes additional General Fund in the amount of $50,500 in fiscal year 2027 and $103,700 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. The base budget includes General Fund in the amount of $500,000 in each fiscal year for the Kentucky Center for African American Heritage. ===== PAGE 363 =====
Tourism, Arts and Heritage\nArtisans Center
Actual\nFY 2024Actual\nFY 2025Revised\nFY 2026Recommended\nFY 2027Recommended\nFY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,163,0001,239,2001,286,1001,238,0001,281,500
State Salary and Compensation45,200
Allocation(38,600)
Budget Reduction-General Fund
Other290,000
Total General Fund1,208,2001,529,2001,247,5001,238,0001,281,500
Restricted Funds
Balance Forward181,588178,20021,300
Current Receipts1,315,0281,113,5461,300,0001,300,0001,300,000
Non-Revenue Receipts20,120(20,120)
Total Restricted Funds1,516,7361,093,4261,478,2001,300,0001,321,300
TOTAL SOURCE OF FUNDS2,724,9362,622,6262,725,7002,538,0002,602,800
EXPENDITURES BY CLASS
Personnel Costs1,659,7211,665,4471,754,0001,682,3001,728,100
Operating Expenses1,064,925778,957971,700834,400834,400
Construction290
TOTAL EXPENDITURES2,724,9362,444,4052,725,7002,516,7002,562,500
EXPENDITURES BY FUND SOURCE
General Fund1,208,2001,529,1151,247,5001,238,0001,281,500
Restricted Funds1,516,736915,2901,478,2001,278,7001,281,000
TOTAL EXPENDITURES2,724,9362,444,4052,725,7002,516,7002,562,500
EXPENDITURES BY UNIT
Berea Artisans Center2,724,9362,444,4052,725,7002,516,7002,562,500
TOTAL EXPENDITURES2,724,9362,444,4052,725,7002,516,7002,562,500
The Kentucky Artisan Center at Berea is established to promote Kentucky arts and craft products and serve as a unique gateway for travelers, offering quality Kentucky arts, crafts, music, and other artisan products, along with authentic heritage experiences. The Artisan Center purchases for resale over 4,000 different artisan products from over 900 vendors in 100 counties statewide. Hospitality, café food service, KY travel information assistance, and rest stop services are also provided by the Center for over 165,000 visitors annually. The Appalachian/Kentucky Artisans Gateway Center Authority (KRS 148.560-569) has an appointed, thirteen member board to direct operations of the Center and is attached to the Tourism Arts and Heritage Cabinet for administrative purposes. ## Policy The Governor's budget includes additional funding in the amount of $25,300 in fiscal year 2027 and $51,900 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 $24,000 and $49,300, respectively. ===== PAGE 364 =====
Tourism, Arts and Heritage Tourism
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation3,458,2003,624,9003,709,4003,367,7003,443,100
State Salary and Compensation Allocation115,000
Budget Reduction-General Fund(111,300)
Other(350,000)(40,000)
Total General Fund3,223,2003,584,9003,598,1003,367,7003,443,100
Restricted Funds
Balance Forward91,805111,557433,700138,70071,000
Current Receipts20,038322,646305,0005,0005,000
Total Restricted Funds111,843434,203738,700143,70076,000
TOTAL SOURCE OF FUNDS3,335,0434,019,1034,336,8003,511,4003,519,100
EXPENDITURES BY CLASS
Personnel Costs2,641,1992,958,8193,097,9002,909,6002,985,200
Operating Expenses510,062561,1041,100,200530,800530,600
TOTAL EXPENDITURES3,151,2613,519,9234,198,1003,440,4003,515,800
EXPENDITURES BY FUND SOURCE
General Fund3,150,9753,519,4123,598,1003,367,7003,443,100
Restricted Funds286511600,00072,70072,700
TOTAL EXPENDITURES3,151,2613,519,9234,198,1003,440,4003,515,800
EXPENDITURES BY UNIT
Executive Policy and Management1,692,6361,846,7731,758,3001,716,1001,751,600
Division of Marketing334,005341,786353,600342,500350,000
Division of Tourism Services833,9611,034,8871,788,7001,095,6001,121,200
Division of Communications and Public Relations290,659296,478297,500286,200293,000
TOTAL EXPENDITURES3,151,2613,519,9234,198,1003,440,4003,515,800
The Kentucky Department of Tourism (KDT) is primarily responsible for promoting the Commonwealth of Kentucky as a destination for travelers of all kinds, both domestically and internationally, through sales, marketing and advertising to create additional revenues and generate economic impact throughout the state. KDT administers the following programs: Executive Policy and Management establishes policies and goals for the department; coordinates the overall planning, management, and direction for the agency; and provides for the most economical and efficient administration of the Department and its programs. This piece of the agency also does all budgeting, purchasing and invoice payment, and oversees the Cultural Heritage Tourism, and International and Domestic Group Sales programs. The Cultural Heritage program builds links between tourism, historic preservation, arts, humanities and natural resources to promote Kentucky's culture, history and natural wonders. The International and Domestic Group Sales promote these assets through trade show participation, familiarization trips for media and group tour operators, group travel website information, and general outreach and responses to inquiries. The Division of Marketing & Advertising is responsible for encouraging travel to and within Kentucky. They maintain a database of all the tourism-related attractions, destinations and events throughout the state. This division is responsible for the production and oversight of Kentucky's Official Visitors Guide and the implementation and oversight of spring and fall comprehensive multimedia advertising plans. Advertising is targeted and based on a variety of research that is purchased and/or commissioned by KDT. All advertising directs the audience to the KDT website, kentuckytourism.com. ===== PAGE 365 ===== Tourism Services is comprised of the Tourism Marketing Incentive Program (TMIP) and Co-Op Advertising Program and the staffing of Kentucky's Welcome Centers. TMIP provides tourism marketing matching funds to local and regional destination marketing and other non-profit organizations. There are seven Welcome Centers in Kentucky. These facilities were designed and constructed by the Federal Highway Administration, KDT, and the Kentucky Transportation Cabinet. The Transportation Cabinet operates the facilities, and the Welcome Center personnel and services are managed by KDT. Each is staffed by a Travel Host Supervisor with one or two Travel Hosts. Welcome Centers are located in the following Counties: Bullitt, Carter, Christian, McCracken, Shelby, Simpson, and Whitley. Communication and Public Relations is responsible for providing comprehensive support for projects and promotions developed through the Department on behalf of the tourism industry in Kentucky. These efforts primarily focus on generating earned broadcast and print media, serving as the liaison with media sources, and maintaining constant contact through newsletters and a web-based media resource site. Assistance is provided to individual media representatives and travel writers in a variety of ways including, but not limited to, creating story Ideas, making travel arrangements, and providing photographs, video and fact verification. Regular press releases are prepared for the (KDT) to keep the public informed of attractions and events in Kentucky. Tourism Development is responsible for managing the incentive program created by the Kentucky Tourism Development Act. The incentive was designed to encourage the development, expansion or rehabilitation of tourism projects through the Commonwealth. ## Policy The Governor's budget includes additional General Fund in the amount of $51,200 in fiscal year 2027 and $105,100 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. The base budget includes General Fund of $130,000 in each fiscal year to support the Whitehaven Welcome Center. ===== PAGE 366 =====
Tourism, Arts and Heritage Parks
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation64,232,50065,406,60065,149,80068,180,90064,936,700
State Salary and Compensation Allocation1,762,500
Budget Reduction-General Fund
Other1,530,000
Total General Fund67,525,00065,406,60065,149,80068,180,90064,936,700
Restricted Funds
Balance Forward10,285,73613,915,3045,243,0001,724,2001,592,500
Current Receipts56,693,57247,973,20342,247,30048,019,70056,586,500
Non-Revenue Receipts(490,575)2,101,923
Total Restricted Funds66,488,73363,990,43047,490,30049,743,90058,179,000
TOTAL SOURCE OF FUNDS134,013,733129,397,030112,640,100117,924,800123,115,700
EXPENDITURES BY CLASS
Personnel Costs72,267,13573,129,58273,326,60077,407,30074,399,500
Operating Expenses37,751,21943,248,46334,885,90036,221,60038,510,100
Grants Loans Benefits
Debt Service7,753,3824,534,0922,346,3002,346,3002,346,300
Capital Outlay2,326,5223,241,485357,100357,100357,100
Construction171375
TOTAL EXPENDITURES120,098,429124,153,996110,915,900116,332,300115,613,000
EXPENDITURES BY FUND SOURCE
General Fund67,525,00065,406,60065,149,80068,180,90064,936,700
Restricted Funds52,573,42958,747,39645,766,10048,151,40050,676,300
Federal Fund
TOTAL EXPENDITURES120,098,429124,153,996110,915,900116,332,300115,613,000
EXPENDITURES BY UNIT
General Administration and Support25,317,02925,702,77621,990,70022,207,70021,666,000
Resort Parks71,316,20071,730,86565,421,00070,153,70070,158,400
Recreation Parks and Historic Sites22,657,00025,874,85522,671,30023,121,40022,960,700
Cafeterias808,200845,500832,900849,500827,900
TOTAL EXPENDITURES120,098,429124,153,996110,915,900116,332,300115,613,000
The Department of Parks operates the Kentucky State Park System under the authority of KRS Chapter 148. The Department strives to provide quality recreational facilities and to preserve and protect historically significant sites and natural phenomena in the Commonwealth of Kentucky. The Vision for Kentucky State Parks is to provide quality recreation and hospitality experiences for people of all ages that enhance their appreciation for adventure, fun, education, and beauty through responsible stewardship of our Commonwealth's natural, historic and cultural resources, and with a professional staff committed to excellent service for our guests. The Mission of Kentucky State Parks is to provide a sustainable system of parks that delivers quality programs, amenities, and services, which create memorable experiences, and a sense of place, contributes to the economic growth of the Commonwealth, and preserves the historic and natural integrity and traditions of our parks for existing and future generations. ===== PAGE 367 ===== The activities of the Department include the operation and maintenance of 17 resort parks, 22 recreational parks, 8 historic sites, 1 linear park (Dawkins Line Rail Park), 1 interstate park (operated by VA, funded by both KY and VA) and 1 cafeteria in Frankfort. The Park System provides overnight lodging to 425,000 guests, food service for 1,150,000 meals for dining patrons, camping for 560,000 guests, golf for 115,700 players, and other park amenities and activities. ## Resort Parks The Resort Parks program encourages tourism and economic development in Kentucky by providing excellent overnight accommodations, quality food service, and recreational activities for visitors at the 17 resort parks. The resort parks and their locations are: Barren River Resort Park - Barren County Blue Licks Battlefield Resort Park - Robertson County Buckhorn Lake Resort Park - Perry County Carter Caves Resort Park - Carter County Cumberland Falls Resort Park - Whitley County Dale Hollow Resort Park - Cumberland and Clinton Counties General Butler Resort Park - Carroll County Kenlake Resort Park - Marshall County Greenbo Lake Resort Park - Greenup County KY Dam Village Resort Park - Marshall County Lake Barkley Resort Park - Trigg County Lake Cumberland Resort Park - Russell County Natural Bridge Resort Park - Powell County Pennyrile Forest Resort Park - Christian County Pine Mountain Resort Park - Bell County Rough River Resort Park - Grayson County Jenny Wiley Resort Park - Floyd County The Recreation Parks and Historic Sites program encourages tourism and economic development in Kentucky by providing modern recreational and camping facilities and preserving significant scenic and historic landmarks, as well as operating museums and shrines. ## Recreation Park Facilities Big Bone Lick State Park - Boone County Carr Creek State Park - Knott County Columbus-Belmont Battlefield State Park - Hickman County E. P. "Tom" Sawyer State Park - Jefferson County Fort Boonesborough State Park - Madison County General Burnside State Park - Pulaski County Grayson Lake State Park - Elliott and Carter Counties Green River Lake State Park - Taylor County John James Audubon State Park - Henderson County Kincaid Lake State Park - Pendleton County Kingdom Come State Park - Harlan County Dawkins Line Rail Trail Park – Johnson/Magoffin Counties Lake Malone State Park - Muhlenberg County Lincoln Homestead State Park - Washington County Mineral Mound State Park - Lyon County My Old Kentucky Home State Park - Nelson County Nolin Lake State Park - Edmonson County Old Fort Harrod State Park - Mercer County Paintsville Lake State Park - Johnson County Pine Mnt Trail State Park - Harlan & Bell Counties Taylorsville Lake State Park - Spencer County Yatesville Lake State Park - Lawrence County ## Historic Sites Perryville Battlefield State Shrine - Boyle County Dr. Thomas Walker State Shrine - Knox County Isaac Shelby State Shrine - Lincoln County Wickliffe Mounds State Historic Site - Ballard County Old Mulkey Meeting House State Shrine - Monroe County Jefferson Davis Monument St Shrine - Todd County Waveland State Shrine - Fayette County Boone Station – Fayette County ## Cafeterias I he Cafeteria program provides food service in the Capitol Annex Building for members of the General Assembly, state employees, and visitors. The cafeteria also provides catering service for special local events. ## General Administration and Support The General Administration and Support program provides an organizational and administrative system to maintain and operate the park system entities. Central administrative functions, such as accounting, purchasing, budgeting, and personnel, along with program operations support and central maintenance and minor construction support, are included in this program. ===== PAGE 368 ===== ## Policy The Governor’s budget includes additional funding in the amount of $878,900 in fiscal year 2027 and $1,805,600 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 $738,300 and $1,516,700, respectively. ===== PAGE 369 =====
Tourism, Arts and Heritage Horse Park Commission
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation2,411,2002,389,1002,383,7001,631,8001,667,200
State Salary and Compensation Allocation70,700
Budget Reduction-General Fund(71,500)
Total General Fund2,481,9002,389,1002,312,2001,631,8001,667,200
Restricted Funds
Balance Forward4,133,4955,518,4874,290,0005,083,4007,049,400
Current Receipts13,205,94313,651,81813,650,80014,717,30014,920,700
Non-Revenue Receipts49,01149,14549,20049,20049,200
Total Restricted Funds17,388,44919,219,45117,990,00019,849,90022,019,300
Federal Fund
Balance Forward(2,509)(32,050)(1,626)
Current Receipts156,29048,4111,626
Total Federal Fund153,78116,360
TOTAL SOURCE OF FUNDS20,024,13021,624,91120,302,20021,481,70023,686,500
EXPENDITURES BY CLASS
Personnel Costs9,136,1859,737,0179,596,8009,311,5009,508,400
Operating Expenses5,087,4607,394,5235,622,0005,120,8005,120,800
Grants Loans Benefits64,803(17,625)
Debt Service252,42563,000
Capital Outlay(3,179)159,672
TOTAL EXPENDITURES14,537,69317,336,58715,218,80014,432,30014,629,200
EXPENDITURES BY FUND SOURCE
General Fund2,481,9002,389,1002,312,2001,631,8001,667,200
Restricted Funds11,869,96214,929,50012,906,60012,800,50012,962,000
Federal Fund185,83117,987
TOTAL EXPENDITURES14,537,69317,336,58715,218,80014,432,30014,629,200
EXPENDITURES BY UNIT
Kentucky Horse Park14,537,69317,336,58715,218,80014,432,30014,629,200
TOTAL EXPENDITURES14,537,69317,336,58715,218,80014,432,30014,629,200
The Kentucky Horse Park (KRS 148.260) is comprised of 1,224 acres on which are situated over 111 structures, 40 miles of fencing and 260 campsites. Horse Park programs consist primarily of four main functions: Equine Theme Park - The central area of the park contains tourist activities that include the Visitor Information Center, International Museum of the Horse, gift shop, restaurant, Parade of Breeds and Hall of Champions shows, Kids Barn, Mounted Police Barn, horseback riding, horse drawn tours, and other activities. Equine Theme Park activities generate $3.5 million in annual revenue. ===== PAGE 370 ===== Events - The Horse Park is the host venue for both equine and non-equine special events. Horse shows are central to the mission of the park and comprise most special event activities. More than 100 annual equine events utilize 24 barns (nearly 1,400 permanent stalls), the climate-controlled 5,500 seat Alltech Arena, the 1,100 seat Covered Arena, show offices, five hunter-jumper rings, five dressage rings, a 205-acre cross country course, and other ancillary structures. The park also hosts over 100 non-equine events that include dog shows, evening programs, "Southern Lights" holiday lights show, and many other events. These equine and non-equine events generate almost $7.2 million in revenue annually. Campground - The popular campground consists of 260 campsites with water/electric hookups, grocery store, two bathhouses, pool, tennis courts, two basketball courts, playground, primitive camping, and covered pavilion. Each year more than 102,000 people camp at the Horse Park, generating more than $2.4 million in direct annual income. National Horse Center - The National Horse Center is a collection of the nations and the state's leading equestrian organizations. The National Horse Center now includes over 30 distinct organizations contained in 15 office buildings on the property. The National Horse Center has solidified the Park's role in establishing Kentucky as truly the "Horse Capital of the World". ## Policy The Governor's budget includes additional funding in the amount of $135,400 in fiscal year 2027 and $278,200 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 $24,400 and $50,100, respectively. ===== PAGE 371 =====
Tourism, Arts and Heritage State Fair Board
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation12,884,40010,055,5009,465,7006,700,7007,000,600
State Salary and Compensation Allocation816,900
Budget Reduction-General Fund(284,000)
Total General Fund13,701,30010,055,5009,181,7006,700,7007,000,600
Restricted Funds
Balance Forward2,627,0597972,0002,571,9005,791,800
Current Receipts53,234,54958,828,85358,863,60058,598,80060,914,000
Non-Revenue Receipts58,28164,000
Total Restricted Funds55,919,88858,893,65058,865,60061,170,70066,705,800
TOTAL SOURCE OF FUNDS69,621,18868,949,15068,047,30067,871,40073,706,400
EXPENDITURES BY CLASS
Personnel Costs37,846,88737,836,29138,249,40037,585,70038,185,500
Operating Expenses18,920,94823,567,80321,177,90019,127,90019,127,900
Grants Loans Benefits1,407,8491,982,2341,648,4001,648,4001,648,400
Debt Service7,926,5003,228,500
Capital Outlay3,452,8552,235,9184,399,7003,717,6003,665,800
Construction65,35296,394
TOTAL EXPENDITURES69,620,39168,947,13965,475,40062,079,60062,627,600
EXPENDITURES BY FUND SOURCE
General Fund13,701,30010,055,5009,181,7006,700,7007,000,600
Restricted Funds55,919,09158,891,63956,293,70055,378,90055,627,000
TOTAL EXPENDITURES69,620,39168,947,13965,475,40062,079,60062,627,600
EXPENDITURES BY UNIT
Kentucky Fair and Exposition Center50,578,29953,971,53254,696,00051,593,60052,033,200
Kentucky International Convention Center11,115,59211,747,10710,779,40010,486,00010,594,400
Debt Service7,926,5003,228,500
TOTAL EXPENDITURES69,620,39168,947,13965,475,40062,079,60062,627,600
During the 2021 Regular Session, The Kentucky General Assembly passed House Bill 518, amending KRS Chapter 247 to allow the Commissioner of Agriculture the authority to appoint a majority of members of the Kentucky State Fair Board. The Kentucky State Fair Board is now composed of 16 voting members and 5 ex officio, non-voting members: the Governor, the Commissioner of Agriculture, The President of the Senate or his or her designee, who shall serve as an ex officio, nonvoting member, The Speaker of the House of Representatives or his or her designee, who shall serve as an ex officio, nonvoting member, the Secretary of the Finance and Administration Cabinet who shall serve as an ex officio, nonvoting member, the Dean of the College of Agriculture at the University of Kentucky, the State president of the Kentucky FFA, who shall serve as an ex officio, nonvoting member, the State President of the Kentucky 4-H Organization who shall serve as an ex officio, nonvoting member, 5 members appointed by the Governor, and 8 members appointed by the Commissioner of Agriculture. The Board manages and administers the funds, buildings, grounds, and equipment of both the Kentucky Exposition Center and the Kentucky International Convention Center in Louisville. A president is appointed by the Board to manage these centers and Fair Board properties. ===== PAGE 372 ===== The Kentucky Exposition Center provides facilities and services for conventions, trade shows, agricultural activities, athletic events, concerts, and cultural and commercial productions year-round. At this site, the State Fair Board produces its three major expositions during the year: the Kentucky State Fair, the National Farm Machinery Show, and the North American International Livestock Exposition. The Kentucky Exposition Center is a completely air conditioned complex that includes 1.2 million square feet of exhibit and meeting space at ground level. It includes the 18,255-seat Freedom Hall Coliseum, identical East and West Exhibit Halls, East and West Exposition Wings, the South and North Wing Exposition facilities and Conference Centers, a smaller exposition pavilion, a 600-seat auditorium, a 6,580 seat Livestock and Horse Show Arena, and a 37,000-seat stadium. Also serving the Kentucky Exposition Center are the adjacent Crowne Plaza, Hilton Gardens Inn, Cracker Barrel restaurant, Thorton's gas station and Executive Bowl, all of which are long term lessees of the State Fair Board. The Kentucky International Convention Center provides facilities and services for intermediate-sized conventions, trade shows, association events, concerts, and cultural and commercial productions year-round. This facility is an integral and interdependent part of the overall redevelopment of downtown Louisville by both government and private enterprises. Major renovations to the center were completed in August 2018. The Hyatt and Cowger Parking Garages, which provide 1,300 enclosed parking spaces, serve the Center. The Cowger Garage also includes commercial space, which is leased on a long term basis. ## Policy The Governor's budget includes additional funding in the amount of $413,400 in fiscal year 2027 and $848,000 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 $206,700 and $424,000, respectively. ===== PAGE 373 =====
Tourism, Arts and Heritage Fish and Wildlife Resources
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Continuing Approp.-General Fund3,862,000
Total General Funds3,862,000
Restricted Funds
Balance Forward130,597,564127,457,330129,040,300116,845,900105,503,100
Current Receipts72,807,09272,623,83373,273,70073,273,70073,273,700
Non-Revenue Receipts(26,561,893)(22,312,256)(25,468,100)(25,468,100)(25,468,100)
Total Restricted Funds176,842,763177,768,907176,845,900164,651,500153,308,700
Federal Fund
Balance Forward4,659,9157,944,541621,8001,332,1002,651,600
Current Receipts33,195,16627,664,75630,769,60030,903,30030,769,600
Non-Revenue Receipts(2,359,447)(13,205,879)(2,359,500)(2,359,500)(2,359,500)
Total Federal Fund35,495,63422,403,41829,031,90029,875,90031,061,700
TOTAL SOURCE OF FUNDS216,200,397200,172,325205,877,800194,527,400184,370,400
EXPENDITURES BY CLASS
Personnel Costs52,391,05846,581,00751,326,00051,107,70052,256,500
Operating Expenses16,635,91617,279,36218,579,70018,024,50018,024,500
Grants Loans Benefits7,962,342781,2945,510,9005,472,5005,472,500
Debt Service499,700599,200599,000599,000599,000
Capital Outlay3,302,0245,266,89311,684,20011,169,00011,169,000
Construction7,4852,450
TOTAL EXPENDITURES80,798,52670,510,20687,699,80086,372,70087,521,500
EXPENDITURES BY FUND SOURCE
General Fund3,862,000
Restricted Funds49,385,43348,728,54960,000,00059,148,40059,950,700
Federal Fund27,551,09321,781,65727,699,80027,224,30027,570,800
TOTAL EXPENDITURES80,798,52670,510,20687,699,80086,372,70087,521,500
EXPENDITURES BY UNIT
Administration and Support9,806,1296,415,0387,355,7007,333,0007,406,600
Wildlife Management25,930,76218,928,36624,087,70023,951,50024,271,300
Fisheries Management15,710,75915,842,78323,632,00023,145,90023,420,000
Information and Education8,791,2558,637,7438,704,5008,598,4008,759,000
Law Enforcement16,575,03216,874,67319,082,00018,909,20019,163,300
Marketing1,331,0841,339,5421,377,0001,369,0001,388,400
Engineering, Infrastructure & Technology2,653,5042,472,0613,460,9003,065,7003,112,900
TOTAL EXPENDITURES80,798,52670,510,20687,699,80086,372,70087,521,500
The Department of Fish and Wildlife Resources, established by KRS Chapter 150, is responsible for the conservation and management of fish and wildlife resources in Kentucky. A Departmental Commissioner is appointed by the Fish and Wildlife Commission. The Commission, which is responsible for Department policy, is a nine-member bipartisan body appointed by the Governor from a list of candidates provided by sportsmen and women in each of nine districts. ===== PAGE 374 ===== Financial support of the Department is derived from the sale of hunting and fishing licenses, federal grants, interest income, fines and penalties assessed by the courts for violation of game and fish laws, and numerous other miscellaneous receipts. The Department owns approximately 170,868 acres of land in Kentucky, which are used to further its program activities. The acreage includes the State Game Farm, approximately 80 major wildlife management areas, two warm water hatcheries, and three summer camps. An additional 450,501 plus acres of land and water is under lease or license by the Department for wildlife management activities. The Daniel Boone National Forest provides an additional 600,000 acres of land for public use. The Department consists of seven program areas: Administration and Support, Wildlife Management, Fisheries Management, Information and Education, Law Enforcement, Marketing, and Engineering, Infrastructure and Technology. The Wildlife Management program manages, develops, and maintains statewide game and non-game populations consistent with habitat availability on state owned lands, licensed wildlife management areas, and privately owned lands. Additionally, Wildlife Management conducts statewide surveys to determine the relative abundance of game and non-game wildlife, formulates hunting regulations based upon biological data and recreational demands, restores viable native wildlife species by restocking in suitable habitat, and evaluates the impact of land, water resource, and other construction projects on wildlife resources. Technical guidance is provided to private landowners for improvement of wildlife habitat. A fish and wildlife electronic information system is being maintained for use by state agencies that includes geographic information such as land types, vegetation conditions, and wildlife populations. The Fisheries Management program manages Kentucky fishery resources to provide optimum fishing opportunities for anglers through research, surveys, fish stocking, regulation, and technical biological guidance. Fishery biologists manage and develop fish populations and their associated habitats in major impoundments, streams, rivers, and 100,000 acres of small lakes and ponds. In addition, technical guidance is provided to private pond owners. Research biologists provide support to management through evaluation of stocking and regulatory practices. The Environmental Section of the Fisheries Division manages the Kentucky Wetland Stream Mitigation Fund (referred to as the fees in-lieu of program) authorized by KRS 150.255 and by agreement with the U.S. Army Corps of Engineers. Corps 404 permits require mitigation when projects fill stream or wetland habitat. Funds are derived when 404 permit applicants can elect to pay a fee to satisfy mitigation requirements. These fees are used for identifying and restoring degraded streams with eroding banks and impacted habitat to stable conditions or restoring wetlands that have been drained. The Information and Education program is responsible for educating and informing the public about our wildlife resources and the importance of conservation, and the recreational opportunities the fish and wildlife resources provide. The information and education program is essential to provide the general and sporting public timely and accurate information directly and through the media. Additionally, the dissemination of regulatory information is necessary for the sporting public to comply with applicable laws and regulations. The program also provides classroom instruction on wildlife conservation, hunter education, aquatic education; operates the Salato Wildlife Education Center; and, administers three summer camps for children. The Law Enforcement program enforces fish, wildlife, and boating laws. Officers assist other federal, state, and local agencies in enforcement of all criminal laws in the Commonwealth. Officers also assist the public during times of natural disasters such as floods, forest fires, and severe winter weather. The Administration and Support program area manages the day-to-day operations of the Department including maintaining accounting records, ensuring proper purchasing and inventory procedures, and administering hunting and fishing license sales and revenue collections. The Public Affairs Division facilitates public involvement in departmental policy and regulations. The Marketing program is responsible for marketing, public involvement, social survey research, trend analysis, economic analysis of the benefits of wildlife-associated recreations and boating. The Engineering program provides the labor and technical engineering services required for small construction projects, such as building small bridges, buildings, boat ramps, and roads. In addition, Engineering is responsible for surveying all property owned or being purchased by the Department. ## Policy The Governor's budget includes additional funding in the amount of $693,900 in fiscal year 2027 and $1,426,600 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 375 =====
Tourism, Arts and Heritage Historical Society
Historical Society
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation7,887,70010,310,10010,705,1007,071,6007,355,300
Budget Reduction-General Fund(800,000)(321,200)
Other
Total General Fund7,248,60010,310,10010,383,9007,071,6007,355,300
Restricted Funds
Balance Forward685,216875,5331,135,1001,008,900738,200
Current Receipts419,460409,655190,000190,000190,000
Non-Revenue Receipts(108,063)
Total Restricted Funds1,104,6761,177,1261,325,1001,198,900928,200
Federal Fund
Balance Forward77,08777,08777,10077,10077,100
Current Receipts170,000113,700113,700
Total Federal Fund77,08777,087247,100190,800190,800
TOTAL SOURCE OF FUNDS8,430,36311,564,31311,956,1008,461,3008,474,300
EXPENDITURES BY CLASS
Personnel Costs4,461,4685,131,5695,699,8005,227,5005,361,300
Operating Expenses2,612,6532,171,5502,990,3002,317,5002,343,000
Grants Loans Benefits98,6211,874,8912,180,000101,000131,000
Debt Service51,000
Capital Outlay305,00041,992
TOTAL EXPENDITURES7,477,7439,271,00310,870,1007,646,0007,835,300
EXPENDITURES BY FUND SOURCE
General Fund7,248,6009,229,01110,383,9007,071,6007,355,300
Restricted Funds229,14341,992316,200460,700366,300
Federal Fund170,000113,700113,700
TOTAL EXPENDITURES7,477,7439,271,00310,870,1007,646,0007,835,300
EXPENDITURES BY UNIT
Oral History and Educational Outreach890,1091,072,9001,224,6001,069,3001,092,100
Research and Publications127,5711,094,5691,255,6001,224,8001,256,700
Museums1,834,2041,168,7831,674,0001,452,3001,481,000
Administration4,625,8595,934,7506,715,9003,899,6004,005,500
TOTAL EXPENDITURES7,477,7439,271,00310,870,1007,646,0007,835,300
The Kentucky Historical Society (KHS) engages people in the exploration of the Commonwealth's diverse heritage. Through comprehensive and innovative services, interpretive programs, and stewardship, it provides connections to the past, perspective on the present, and inspiration for the future. The Kentucky Historical Society's statutory mandate, pursuant to KRS 171.311, is to collect and preserve for future generations materials and information regarding Kentucky's past; to disseminate knowledge and understanding of the state's history; and to produce for people of all backgrounds an increased awareness of, and appreciation for, the Commonwealth and its heritage. The agency operates four divisions: Administration, Research and Publications, Museums, and Oral History and Educational Outreach. ===== PAGE 376 ===== The Administration Division provides overall agency direction, planning, and management. It is comprised of the following functional teams: development, director's office, finance and human resources, and communications (which includes visitor services.) The Research and Publications Division includes the following functional teams: research and interpretation, museum collections and exhibitions, and the design studio. The research and interpretation team publishes the Society's two journals—The Register of the Kentucky Historical Society and Kentucky Ancestors—and assists with the publication of the quarterly newsletter, The Chronicle. The team also administers the historical marker program and the research fellows program. The museum collections and exhibitions team is responsible for the operation of the Historical Society's three museum facilities—the galleries located in the Thomas D. Clark Center for Kentucky History, the Kentucky Military History Museum, and the Old State Capitol. Since 1999, these facilities have hosted more than 1,000,000 visitors. The team is also responsible for the 150,000+ artifact collection. The design studio is responsible for museum exhibition design and production, along with the design and production of other KHS interpretive and promotional tools. The Museum Division is responsible for special collections and reference services. The Museum division operates the Martin F. Schmidt Research Library housed in the History Center, which effectively serves genealogists and other researchers. It also cares for an array of manuscripts, maps, over 500,000 photographs and documents, 8,000 oral history recordings, and rare books. The Oral History and Educational Outreach Division includes the following units: interpretive education, teacher/student outreach, and community services. Community Services consists of the local history program and the Cemetery Preservation program. Interpretive Education includes school tours, museum theatre, and other educational activities for adults and children. Since 1999, the KHS “history campus” has hosted more than 1,000,000 visitors. The primary outreach programs for students include the Kentucky Junior Historical Society and National History Day. Much of the KHS professional development for teachers is presented through Teaching American History grants awarded by the U.S. Department of Education. ## Policy The Governor's budget includes additional General Fund in the amount of $79,200 in fiscal year 2027 and $162,600 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% increment in fiscal year 2028. ===== PAGE 377 =====
Tourism, Arts and Heritage Arts Council
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,810,0001,833,5001,860,3001,793,5001,819,500
State Salary and Compensation Allocation29,700
Total General Fund1,839,7001,833,5001,804,5001,793,5001,819,500
Restricted Funds
Balance Forward196,497268,720263,000263,000263,000
Current Receipts69,723269,166287,20087,20087,200
Non-Revenue Receipts2,500
Total Restricted Funds268,720537,885550,200350,200350,200
Federal Fund
Balance Forward(926,107)5,9635,9005,90014,200
Current Receipts1,930,470968,725831,300831,300831,300
Total Federal Fund1,004,363974,688837,200837,200845,500
TOTAL SOURCE OF FUNDS3,112,7833,346,0733,191,9002,980,9003,015,200
EXPENDITURES BY CLASS
Personnel Costs1,034,2001,179,6761,347,4001,340,8001,370,800
Operating Expenses207,631202,770242,900242,600242,900
Grants Loans Benefits1,596,2691,694,7461,332,7001,120,3001,119,200
TOTAL EXPENDITURES2,838,1003,077,1922,923,0002,703,7002,732,900
EXPENDITURES BY FUND SOURCE
General Fund1,839,7001,833,5001,804,5001,793,5001,819,500
Restricted Funds274,892287,20087,20087,200
Federal Fund998,400968,800831,300823,000826,200
TOTAL EXPENDITURES2,838,1003,077,1922,923,0002,703,7002,732,900
EXPENDITURES BY UNIT
Arts Council1,082,500864,8001,486,2001,455,2001,481,200
Support Grants1,755,6002,137,5001,351,6001,161,3001,164,500
Arts Marketing74,89285,20087,20087,200
TOTAL EXPENDITURES2,838,1003,077,1922,923,0002,703,7002,732,900
The Kentucky Arts Council's legislated purpose is to develop and promote a broadly conceived state policy of support for the arts in Kentucky, pursuant to KRS 153.210 to 153.235. As the official state arts agency, the Kentucky Arts Council (KAC) is the sole Kentucky state agency designated to receive partnership funding from the National Endowment for the Arts for any programs related to the arts. All of the KAC's programs, services, initiatives, events and activities support its mission to "create opportunities for the people of Kentucky to value, participate in, and benefit from the arts". The Kentucky Arts Council manages a multitude of programs, activities and services for the Commonwealth by working in partnership with arts organizations, educational facilities, communities, local government, and individual artists. The work of the KAC encourages the growth and stability of the arts across the state, the promotion of cultural tourism and economic development, the enhancement of quality of life in Kentucky, and the provision of strong arts education programs. ===== PAGE 378 ===== Major program areas include community arts development, arts infrastructure capacity building, individual artists, folk arts, arts education, and arts marketing. The KAC offers an extensive array of technical assistance and training programs, public events, information services and resources, business development services, sales and performance venues, and grant programs to help ensure that the arts community in Kentucky is strong and viable. The grant funds invested by the KAC across the Commonwealth serve as an important catalyst in community building, and leverage significant funding from other sources. ## Policy The Governor's budget includes additional funding in the amount of $19,500 in fiscal year 2027 and $40,000 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 $15,400 and $31,600, respectively. ===== PAGE 379 =====
Tourism, Arts and Heritage Heritage Council
Heritage Council
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation1,632,1001,783,8001,844,9001,733,6001,776,600
State Salary and Compensation Allocation92,500
Continuing Approp.-General Fund2,389,000
Budget Reduction-General Fund(55,300)
Total General Fund4,113,6001,783,8001,789,6001,733,6001,776,600
Restricted Funds
Balance Forward460,2123,347,3773,277,0001,420,6001,689,300
Current Receipts1,114,0101,652,1961,565,0001,034,8001,034,800
Non-Revenue Receipts2,389,000
Total Restricted Funds3,963,2234,999,5734,842,0002,455,4002,724,100
Federal Fund
Balance Forward34534587,700
Current Receipts1,014,300769,557990,7001,054,7001,070,400
Total Federal Fund1,014,645769,9021,078,4001,054,7001,070,400
TOTAL SOURCE OF FUNDS9,091,4677,553,2747,710,0005,243,7005,571,100
EXPENDITURES BY CLASS
Personnel Costs2,903,4612,722,2693,103,3003,041,0003,116,300
Operating Expenses343,436410,718396,400378,400378,400
Grants Loans Benefits2,490,2621,055,6472,789,700135,000120,000
TOTAL EXPENDITURES5,737,1594,188,6356,289,4003,554,4003,614,700
EXPENDITURES BY FUND SOURCE
General Fund4,107,0131,783,8001,789,6001,733,6001,776,600
Restricted Funds615,8461,722,5793,421,400766,100767,700
Federal Fund1,014,300682,2561,078,4001,054,7001,070,400
TOTAL EXPENDITURES5,737,1594,188,6356,289,4003,554,4003,614,700
EXPENDITURES BY UNIT
Kentucky Heritage Council5,737,1594,188,6356,289,4003,554,4003,614,700
TOTAL EXPENDITURES5,737,1594,188,6356,289,4003,554,4003,614,700
The Kentucky Heritage Council (the State Historic Preservation Office) administers a comprehensive state historic preservation program with structure in three areas: the Site Protection Program, the Site Identification and Evaluation Program and the Site Development Program. The Council administers national historic preservation activities in Kentucky, monitors projects and distributes grants involving federal funds, offers programs and services involving all aspects of historic preservation, and provides technical assistance to local governments, the public, and other agencies. Major program activities include surveying historic sites, nominating sites to the National Register of Historic Places, administering the Kentucky Main Street program in partnership with Renaissance on Main, overseeing federal and state historic preservation tax credit programs and restoration grants programs, conducting archaeological investigations, and reviewing all federally funded, licensed, and permitted projects. ===== PAGE 380 ===== Attached to the Heritage Council for administration and programmatic services are the African American Heritage Commission, Native American Heritage Commission, Military Heritage Commission, and the Kentucky Historic Preservation Review Board. The Kentucky Heritage Council is administered in accordance with KRS 171.3801. ## Policy The Governor's budget includes additional funding in the amount of $52,300 in fiscal year 2027 and $107,600 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 $29,800 and $61,300, respectively. The base budget includes General Fund in the amount of $50,000 in each fiscal year to support the Kentucky African American Heritage Commission. ===== PAGE 381 =====
Tourism, Arts and Heritage Kentucky Center for the Arts
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation558,300622,500622,500603,800603,800
Budget Reduction-General Fund(18,700)
Total General Fund558,300622,500603,800603,800603,800
TOTAL SOURCE OF FUNDS558,300622,500603,800603,800603,800
EXPENDITURES BY CLASS
Grants Loans Benefits558,300622,500603,800603,800603,800
TOTAL EXPENDITURES558,300622,500603,800603,800603,800
EXPENDITURES BY FUND SOURCE
General Fund558,300622,500603,800603,800603,800
TOTAL EXPENDITURES558,300622,500603,800603,800603,800
EXPENDITURES BY UNIT
Governor's School for the Arts558,300622,500603,800603,800603,800
TOTAL EXPENDITURES558,300622,500603,800603,800603,800
Kentucky Center for the Arts ("The Kentucky Center") is the Commonwealth's premier performing arts center. The Kentucky Center serves over 400,000 people each year. It is the performance home of the state's largest orchestra, opera, ballet, Broadway and children's theatre productions. In addition, The Kentucky Center presents a variety of national and international artists. The Kentucky Center houses three theaters: the 2,448-seat Robert S. Whitney Hall, the 619-seat Moritz von Bomhard Theater, and the 139-seat Boyd Martin Experimental Theater. The facility features a multi-tiered lobby, rehearsal halls, and spaces for social and business events. The Kentucky Center provides a wide range of nationally recognized educational programs, including professional development for teachers, partnerships with schools and community centers, and opportunities for artists to work in classrooms. The Center is also a leader in providing award-winning access services that make the theater experience possible for patrons with disabilities. The Kentucky Center, in partnership with the Kentucky Arts Council, provides access and technical consulting services for arts and cultural organizations across Kentucky. The Kentucky Center's management also provides theatrical consulting services throughout the state. The Governor's School for the Arts (GSA) is a model program, recognized nationally by the President's Committee on the Arts and Humanities and the National Endowment of the Arts. GSA was established in 1987 to address the needs of an underserved Kentucky population: Kentucky's artistically gifted and talented young people. Whereas opportunities for advanced academic work has been widely available to Kentucky's academically gifted students, opportunities to pursue advanced work in the arts have been considerably more limited, particularly for geographically and/or economically marginalized students. GSA not only plays a vital role in preparing students for their pursuit of careers in the arts, but also prepares them for all facets of professional life requiring leadership, critical thinking, exceptional communication skills and understanding of the multi-cultural world. The school currently serves 512 students. ===== PAGE 382 ===== Transportation ===== PAGE 383 =====
Transportation Transportation
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation16,832,80017,225,80017,225,80016,759,00016,777,200
Budget Reserve300,000,000260,600,000200,000,000
Continuing Approp-General Fund267,302,731567,077,413779,070,800
Budget Reduction-General Fund(516,800)
Total General Fund584,135,531844,903,213995,779,80016,759,00016,777,200
Restricted Funds
Balance Forward167,103,344212,763,372158,961,10020,589,00017,341,000
Current Receipts152,153,795164,397,609210,641,200212,400,900212,649,900
Non-Revenue Receipts70,354,311(2,709,125)326,342,40030,487,70030,489,900
Fund Transfers(1,210,000)(2,025,000)(2,010,900)(2,040,400)(1,596,600)
Total Restricted Funds388,401,450372,426,855693,933,800261,437,200258,884,200
Federal Fund
Balance Forward(155,472,076)(119,433,813)(113,750,500)
Current Receipts1,169,379,7971,007,983,5422,759,538,9001,322,254,6001,331,496,700
Total Federal Fund1,013,907,722888,549,7302,645,788,4001,322,254,6001,331,496,700
Road Fund
Regular Appropriation1,623,025,8001,929,404,9001,826,389,2001,782,514,3001,852,318,900
State Salary and Compensation Allocation12,397,500
Surplus Expenditure Plan55,504,57261,645,600
Current Year Appropriation2,500,0005,035,600
Continuing Approp-Road Fund531,452,211422,266,201348,283,600
Budget Reduction-Road Fund
Other41,562,845(2,991,839)(56,584,300)
Total Road Fund2,266,442,9282,348,679,2622,184,769,7001,782,514,3001,852,318,900
TOTAL SOURCE OF FUNDS4,252,887,6314,454,559,0606,520,271,7003,382,965,1003,459,477,000
EXPENDITURES BY CLASS
Personnel Costs726,076,871762,289,1931,069,590,200779,493,300791,534,100
Operating Expenses393,789,895395,891,131447,661,200441,548,300475,922,500
Grants Loans Benefits280,189,433331,593,929593,345,100288,534,600298,908,600
Debt Service205,072,188204,386,936218,896,700200,600,500155,327,600
Capital Outlay21,304,99825,963,77776,826,60012,295,00012,685,000
Construction1,525,238,3811,385,742,4314,093,362,9001,643,152,4001,709,774,700
TOTAL EXPENDITURES3,151,671,7673,105,867,3976,499,682,7003,365,624,1003,444,152,500
===== PAGE 384 =====
EXPENDITURES BY FUND SOURCE
Total Expenditure by Company Funding Source20072006200520042003
General Fund17,058,11665,750,997995,779,80016,759,00016,777,200
Restricted Funds175,638,078213,465,785673,344,800244,096,200243,559,700
Federal Fund1,133,341,5341,002,300,1742,645,788,4001,322,254,6001,331,496,700
Road Fund1,825,634,0381,824,350,4412,184,769,7001,782,514,3001,852,318,900
TOTAL EXPENDITURES3,151,671,7673,105,867,3976,499,682,7003,365,624,1003,444,152,500
EXPENDITURES BY UNIT
General Administration and Support79,726,89684,510,758157,142,60085,990,20086,632,400
Aviation23,763,15134,535,00461,285,80021,423,50021,465,600
Debt Service133,854,976134,173,692118,683,100100,330,300103,213,000
Highways2,429,325,8782,315,866,2145,438,393,0002,640,039,9002,698,558,800
Public Transportation41,791,09259,911,311275,677,00057,666,70057,716,900
Revenue Sharing362,750,492383,634,441360,187,400341,452,400360,734,600
Vehicle Regulation61,909,28273,835,97788,313,800108,821,100105,381,200
Transfer to Capital Projects18,550,00019,400,0009,900,00010,450,000
TOTAL EXPENDITURES3,151,671,7673,105,867,3976,499,682,7003,365,624,1003,444,152,500
The Transportation Cabinet is responsible for maintaining and improving transportation services in the Commonwealth. All modes of transportation are addressed by the Cabinet, including air transportation, railroads, waterways, public transit, and highways. The Secretary of Transportation, who is appointed by the Governor, heads the organization. The duties and responsibilities of the Cabinet are found in Titles XV and XVI of the Kentucky Revised Statutes. The Cabinet receives funding from the state Road Fund, proceeds from highway bonds issued by the Kentucky Turnpike Authority, and federal aid apportionments for highways. Other revenue sources include agency receipts, non highway federal aid, the state General Fund, and a federal fund leveraging mechanism titled Grant Anticipation Revenue Vehicle (GARVEE) bonds. The revenue components of the Road Fund are the motor fuels tax, motor vehicle usage tax, license and privilege taxes, interest income, and miscellaneous departmental fees, permits, and sales. Seven major budget units comprise the Transportation Cabinet: General Administration and Support, Aviation, Public Transportation, Revenue Sharing, Highways, Vehicle Regulation, and Debt Service. Organizationally, the agency is divided into four departments: Aviation, Vehicle Regulation, Rural and Municipal Aid, and Highways. Each department is headed by a commissioner directly responsible to the Secretary. Other organizational units include the Office of Support Services, the Office of Transportation Delivery, the Office of Audits, the Office of Human Resource Management, the Office of Information Technology, the Office of Legal Services, the Office of Public Affairs, the Office of Budget and Fiscal Management, the Office for Civil Rights and Small Business Development, and the Office of Inspector General. These units report to the Office of the Secretary. The following offices report to the State Highway Engineer in the Department of Highways: the Office of Project Development, the Office of Project Delivery and Preservation, the Office of Highway Safety, and Highway District Offices One through Twelve. The Office of Local Programs and the Office of Rural and Secondary Roads report to the Commissioner of Rural and Municipal Aid. The Transportation Cabinet has its origin as an agency of the Commonwealth of Kentucky in 1912 when the General Assembly established the Department of Highways. Legislation in 1974 created the Department of Transportation by consolidating the Departments of Highways, Motor Transportation, and Aeronautics, plus certain transportation-related functions of the Department of Public Safety and the Department of Revenue. The 1982 General Assembly established the Transportation Cabinet as the successor to the Department of Transportation, and it assumed all of the duties formerly associated with the Department. ===== PAGE 385 =====
General Administration and Support
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation500,000500,000500,000500,000500,000
Total General Fund500,000500,000500,000500,000500,000
Restricted Funds
Balance Forward230,316210,149150,70073,400
Current Receipts1,437,4351,412,5952,701,9002,727,6002,741,700
Non-Revenue Receipts(468,481)(316,058)
Total Restricted Funds1,199,2701,306,6862,852,6002,801,0002,741,700
Federal Fund
Current Receipts990,70769,456,000
Total Federal Fund990,70769,456,000
Road Fund
Regular Appropriation81,626,40083,526,10084,407,40082,689,20083,390,700
State Salary and Compensation Allocation1,016,000
Budget Reduction-Road Fund
Total Road Fund82,642,40083,526,10084,407,40082,689,20083,390,700
TOTAL SOURCE OF FUNDS84,341,67086,323,493157,216,00085,990,20086,632,400
EXPENDITURES BY CLASS
Personnel Costs43,549,26842,706,87744,418,00045,487,00046,202,600
Operating Expenses35,310,30540,868,63340,848,10038,527,70038,454,300
Grants Loans Benefits503,111502,831502,500502,500502,500
Debt Service344,988340,888345,000
Capital Outlay48,34470,938,8001,382,8001,382,800
Construction19,22443,18590,20090,20090,200
TOTAL EXPENDITURES79,726,89684,510,758157,142,60085,990,20086,632,400
EXPENDITURES BY FUND SOURCE
General Fund500,000500,000500,000500,000500,000
Restricted Funds989,1211,156,0082,779,2002,801,0002,741,700
Federal Fund990,70769,456,000
Road Fund78,237,77581,864,04384,407,40082,689,20083,390,700
TOTAL EXPENDITURES79,726,89684,510,758157,142,60085,990,20086,632,400
EXPENDITURES BY UNIT
Office of the Secretary9,173,2599,797,10180,019,30010,628,30010,823,900
Legal Services5,216,8694,634,5055,579,6005,788,8005,859,300
Office of Human Resource Management4,321,1514,310,4274,335,5004,497,5004,589,300
Office of Support Services16,456,23519,652,32921,151,40017,707,50017,816,800
Technology39,238,38241,091,88241,005,30042,136,00042,213,700
Office of Audits5,321,0015,024,5135,051,5005,232,1005,329,400
TOTAL EXPENDITURES79,726,89684,510,758157,142,60085,990,20086,632,400
===== PAGE 386 ===== The General Administration and Support appropriation unit provides management and administrative services and ensures efficient day to day operations. This unit includes the Office of Secretary and nine other offices. The Office of Budget and Fiscal Management, the Office for Civil Rights and Small Business Development, the Office of Legal Services, the Office of Public Affairs, the Office of Inspector General, the Office of Human Resource Management, the Office of Support Services, the Office of Audits, and the Office of Information Technology provide leadership, management, and staff support to the Transportation Cabinet and provide the Secretary with the managerial tools necessary to operate the Cabinet. The Office of the Secretary is the central point of contact with the general public and external organizations and serves as the main policymaking arm of the Cabinet. The Office of Budget and Fiscal Management and the Office of Audits manage the planning and use of the Cabinet's financial resources. The Office for Civil Rights and Small Business Development conducts programs to provide women and minorities an equal opportunity for employment and to compete for highway construction contracts. The Office of Legal Services provides the agency with the required legal representation before administrative boards and all levels of the court system. The Office of Public Affairs is responsible for the Cabinet's communications with employees, the news media, and the general public. The Office of Inspector General exists to provide the Cabinet a mechanism for both employees and Kentuckyians to report incidences of wrongdoing regarding the Cabinet's service. The Office of Human Resource Management is responsible for the Cabinet's human resources policies and personnel utilization and development programs. The Office of Support Services provides oversight and management of the Cabinet's statewide facilities, including all ongoing capital projects not associated with highway construction. Beginning in April 2013, the Office of Support Services began providing production print services for the Executive Branch through its Division of Graphic Design and Printing, a function previously performed by the Commonwealth Office of Technology. The Office of Information Technology is responsible for the technological application development and system support functions for the Cabinet. ## Policy The Governor's budget includes additional funding in the amount of $509,400 in fiscal year 2027 and $1,046,100 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. Road Fund in the amount of $1,200,000 each year is included to support the ongoing costs of the AASHTOWare software. ===== PAGE 387 =====
Transportation Aviation
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation757,0001,150,0001,150,0001,165,5001,183,700
Budget Reserve10,600,000
Continuing Approp-General Fund200,000
Budget Reduction-General Fund(34,500)
Total General Fund757,00011,750,0001,315,5001,165,5001,183,700
Restricted Funds
Balance Forward35,652,52640,566,63439,176,4003,714,4006,132,500
Current Receipts25,236,95822,265,64524,350,70024,215,70024,190,100
Non-Revenue Receipts(835,300)(836,935)(837,500)(835,900)(833,700)
Fund Transfers(1,210,000)(2,025,000)(2,010,900)(2,040,400)(1,596,600)
Total Restricted Funds58,844,18459,970,34460,678,70025,053,80027,892,300
Federal Fund
Balance Forward(1,267,716)(3,066,984)(314,200)
Current Receipts1,057,1084,186,9082,482,700500,800500,800
Total Federal Fund(210,608)1,119,9232,168,500500,800500,800
Road Fund
Regular Appropriation1,875,700838,500837,500835,900833,700
State Salary and Compensation Allocation25,900
Total Road Fund1,901,600838,500837,500835,900833,700
TOTAL SOURCE OF FUNDS61,292,17773,678,76765,000,20027,556,00030,410,500
EXPENDITURES BY CLASS
Personnel Costs3,929,6193,826,4784,194,7003,945,0003,989,300
Operating Expenses1,150,4851,121,8781,325,3001,368,7001,368,700
Grants Loans Benefits13,565,58522,879,04553,163,90015,023,90015,023,900
Debt Service1,592,256838,456837,500835,900833,700
Capital Outlay158,2493,635,375
Construction3,366,9562,233,7711,764,400250,000250,000
TOTAL EXPENDITURES23,763,15134,535,00461,285,80021,423,50021,465,600
EXPENDITURES BY FUND SOURCE
General Fund757,00011,468,5311,315,5001,165,5001,183,700
Restricted Funds18,277,55120,793,91856,964,30018,921,30018,947,400
Federal Fund2,856,3771,434,0982,168,500500,800500,800
Road Fund1,872,223838,456837,500835,900833,700
TOTAL EXPENDITURES23,763,15134,535,00461,285,80021,423,50021,465,600
EXPENDITURES BY UNIT
Commonwealth Aviation20,092,17631,164,75357,660,30017,732,60017,755,900
Capital City Airport2,835,7182,531,7942,788,0002,855,0002,876,000
Aviation Administration835,256838,456837,500835,900833,700
TOTAL EXPENDITURES23,763,15134,535,00461,285,80021,423,50021,465,600
===== PAGE 388 ===== In accordance with KRS Chapter 183, the Transportation Cabinet supports the Commonwealth's Aviation program. There are two divisions within the Department of Aviation: Commonwealth Aviation and Capital City Airport. The Commonwealth Aviation division is charged with the Air Regulatory program and the Airport Development program. The Air Regulatory program is responsible for inspecting and determining the safety and efficiency of all of the Commonwealth's public use airport and heliport facilities. Pursuant to KRS 183.861, the Kentucky Airport Zoning Commission protects the navigable airspace within the state by evaluating applications for construction, issuing permits, and maintaining updated airport zoning maps. The Commission is attached to the Air Regulatory program for administrative purposes. The Airport Development program provides for administration, planning and management of airport construction, and maintenance of local airports. Airport Development also provides technical and financial assistance to the state's 59 public use airports, including updating and distributing the state aeronautical charts and airport directories. The Capital City Airport is a public use airport located in Frankfort, Kentucky. Capital City Airport is home to 78 aircraft, including the fleet of owned and operated by state government and the National Guard located in Frankfort. ## Policy The Governor's budget includes additional funding in the amount of $56,100 in fiscal year 2027 and $115,300 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 $14,600 and $30,000, respectively. ===== PAGE 389 =====
Transportation Debt Service
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Road Fund
Regular Appropriation136,855,100137,206,400118,683,100100,330,300103,213,000
Total Road Fund136,855,100137,206,400118,683,100100,330,300103,213,000
TOTAL SOURCE OF FUNDS136,855,100137,206,400118,683,100100,330,300103,213,000
EXPENDITURES BY CLASS
Personnel Costs110,000130,000250,000250,000
Debt Service133,744,976134,043,692118,683,100100,080,300102,963,000
TOTAL EXPENDITURES133,854,976134,173,692118,683,100100,330,300103,213,000
EXPENDITURES BY FUND SOURCE
Road Fund133,854,976134,173,692118,683,100100,330,300103,213,000
TOTAL EXPENDITURES133,854,976134,173,692118,683,100100,330,300103,213,000
EXPENDITURES BY UNIT
Economic Development Lease Rental133,854,976134,173,692118,683,100100,330,300103,213,000
TOTAL EXPENDITURES133,854,976134,173,692118,683,100100,330,300103,213,000
The Debt Service program is the budget entity through which lease rental payments are made on the revenue bonds the Commonwealth has issued to finance major highway construction projects. KRS Chapter 175 authorizes the Turnpike Authority of Kentucky to issue revenue bonds to construct, maintain, repair, and operate designated roads of the Toll Road System, the Resource Recovery Road System, and the Economic Development Road System. The first of these systems, the Toll Road System, was constructed during the mid-1960s and early 1970s. All of the Toll Road bonds that were issued to construct the state's parkways are now retired. The Resource Recovery Road System began in the late 1970s, and most of the system's roads were built during the 1980s. The most significant project was KY 80. The final lease rental payment for the Resource Recovery Road bonds was made in fiscal year 2008-2009. The Economic Development Road System was established and funded through a series of bond issues. The first was a $300 million issue sold in 1984. The second was a relatively small sale of $36.6 million in 1987. The third and largest was a $600 million program which was implemented in bond sales during 1990, 1993, and 1995. The projects constructed with the $600 million series were designated as "Revitalization Projects" and are now complete. The fourth issue was authorized by the 1998 General Assembly in the amount of $200 million. The bonds were sold in 1999 and projects funded with those proceeds are now complete. The 2005 General Assembly authorized the fifth series of Economic Development Road bonds in the amount of $450 million. The bond projects associated with the 2005 series were split to support three initiatives: $300 million for projects in the adopted Six-Year Highway Plan; $100 million to fund County Road Aid projects; and $50 million to support Municipal Road Aid projects. The 2006 General Assembly authorized an additional $350 million in Economic Development Road Bonds. The entire 2006 series was authorized to support projects in the adopted Six-Year Highway Plan. The seventh issue was authorized by the 2008 General Assembly in the amount of $50 million for projects associated with Base Re-alignment and Closure (BRAC) activities in and around Fort Knox. The 2009 General Assembly authorized bonds in the amount of $400 million to support projects in the adopted Six-Year Highway Plan. The 2010 Special Session of the General Assembly authorized $112 million in BRAC bonds to complete the projects in Fort Knox and $400 million in bonds for projects included in the Biennial Highway Construction Plan. All but $50 million of the $400 million in bonds authorized by the 2010 Special Session of the General Assembly have been issued. Through lease agreements with the Turnpike Authority of Kentucky and the Asset and Liability Commission, the Transportation Cabinet provides funds to pay the Toll Road, Resource Recovery Road, and the Economic Development Road revenue bonds. In the Debt Service program, funds are reserved exclusively for semi-annual lease rental payments to meet the principal and interest requirements of these outstanding bonds, along with any administrative costs of the Turnpike Authority. ===== PAGE 390 =====
Transportation Highways
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Budget Reserve300,000,000250,000,000200,000,000
Continuing Approp-General Fund250,000,000541,797,180754,956,000
Total General Fund550,000,000791,797,180954,956,000
Restricted Funds
Balance Forward112,324,202147,392,085100,030,3002,440,5002,440,500
Current Receipts103,614,229116,924,021160,837,500166,331,300166,971,200
Non-Revenue Receipts71,691,1937,207,246331,323,60031,323,60031,323,600
Total Restricted Funds287,629,623271,523,352592,191,400200,095,400200,735,300
Federal Fund
Balance Forward(153,532,337)(115,383,825)(112,117,600)
Current Receipts1,131,642,115959,036,1552,445,707,1001,275,288,6001,284,495,000
Total Federal Fund978,109,777843,652,3292,333,589,5001,275,288,6001,284,495,000
Road Fund
Regular Appropriation974,783,4001,244,441,9001,150,167,4001,167,096,4001,215,769,000
State Salary and Compensation Allocation10,743,400
Surplus Expenditure Plan55,504,57261,645,600
Continuing Approp-Road Fund400,923,122248,824,470348,283,600
Other9,795,482
Total Road Fund1,441,954,4941,503,061,8521,560,096,6001,167,096,4001,215,769,000
TOTAL SOURCE OF FUNDS3,257,693,8943,410,034,7135,440,833,5002,642,480,4002,700,999,300
EXPENDITURES BY CLASS
Personnel Costs633,171,449663,321,009963,881,000655,652,600666,318,100
Operating Expenses318,643,429311,887,443369,921,600359,128,600397,278,700
Grants Loans Benefits21,483,33525,157,17369,451,10030,684,00030,684,000
Debt Service69,389,96969,163,90097,524,10098,071,30049,917,900
Capital Outlay2,596,7492,121,658252,200252,200252,200
Construction1,384,040,9471,244,215,0313,937,363,0001,496,251,2001,554,107,900
TOTAL EXPENDITURES2,429,325,8782,315,866,2145,438,393,0002,640,039,9002,698,558,800
EXPENDITURES BY FUND SOURCE ===== PAGE 391 =====
General Fund8,202,81936,841,221954,956,000
Restricted Funds140,237,538171,493,123589,750,900197,654,900198,294,800
Federal Fund1,093,493,603955,769,9312,333,589,5001,275,288,6001,284,495,000
Road Fund1,187,391,9181,151,761,9401,560,096,6001,167,096,4001,215,769,000
TOTAL EXPENDITURES2,429,325,8782,315,866,2145,438,393,0002,640,039,9002,698,558,800
EXPENDITURES BY UNIT
Research2,914,8971,504,68614,488,1004,818,6004,818,600
Construction1,756,350,4211,575,802,4444,663,171,3001,891,317,7001,926,716,900
Maintenance492,504,128516,478,383488,665,100500,671,500521,581,600
Engineering Administration19,580,81522,173,47120,677,90019,595,90020,016,200
Planning19,435,12620,418,97221,164,10021,226,90021,464,700
Highway Operations52,057,36065,373,53689,372,50087,140,10088,003,700
Equipment Services66,025,27990,827,948104,343,70094,603,10095,173,300
Highway Safety17,246,59819,662,43520,874,70020,666,10020,783,800
EKY SAFE Fund3,211,2553,624,34015,635,600
TOTAL EXPENDITURES2,429,325,8782,315,866,2145,438,393,0002,640,039,9002,698,558,800
The Highways appropriation unit is the largest program in the Transportation Cabinet. There are eight programs in the Department of Highways: Research, Construction, Maintenance, Engineering Administration, Highway Planning, Highway Operations, Highway Safety and Equipment Services. The Construction program is divided into five subprograms: Bond Funded Construction, State Funded Construction, Federal Funded Construction, Toll Bond Funded Construction, and the TIFIA Loan program. The Department of Highways is responsible for the construction, reconstruction, and maintenance of the State Primary Road System through authority granted by KRS 177.020. The Department is headed by a commissioner who is appointed by the Governor on recommendation of the Secretary of Transportation. This agency administers all of the programs within the Highways appropriation unit. Combined travel by all motor vehicles over Kentucky's 80,000 miles of roads and streets equals over 48.1 billion vehicle-miles. The State Primary Road System carries about 85 percent of all traffic. This network consists of approximately 27,600 miles of interstate highways, resource recovery roads, parkways, economic development roads, primary, secondary, rural, unclassified roads, and approximately 9,100 state maintained bridges. Kentucky's interstate system, consisting of approximately 940 miles, carries 32 percent of all travel. ## Policy The Governor's budget includes additional funding in the amount of $7,142,600 in fiscal year 2027 and $14,669,000 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 392 =====
Transportation Highways Research
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Federal Fund
Balance Forward335,662335,662262,000
Current Receipts1,503,302(28,922)12,557,9003,383,4003,383,400
Total Federal Fund1,838,964306,74012,819,9003,383,4003,383,400
Road Fund
Regular Appropriation1,145,6001,146,4001,435,6001,435,2001,435,200
Continuing Approp-Road Fund812,094546,099232,600
Total Road Fund1,957,6941,692,4991,668,2001,435,2001,435,200
TOTAL SOURCE OF FUNDS3,796,6581,999,23914,488,1004,818,6004,818,600
EXPENDITURES BY CLASS
Personnel Costs2,899,1211,308,36714,198,1004,529,0004,529,000
Operating Expenses15,776172,162290,000289,600289,600
Construction24,156
TOTAL EXPENDITURES2,914,8971,504,68614,488,1004,818,6004,818,600
EXPENDITURES BY FUND SOURCE
Federal Fund1,503,30244,74812,819,9003,383,4003,383,400
Road Fund1,411,5951,459,9371,668,2001,435,2001,435,200
TOTAL EXPENDITURES2,914,8971,504,68614,488,1004,818,6004,818,600
The Research program is primarily a problem-solving service available to the Department of Highways. The program provides studies of traffic safety and operations, pavement mechanics and performance, materials characteristics and behavior, and transportation policies. The Research function is mandated by the Commonwealth's use of federal highway funds in accordance with Title 23 of the Federal Code, which requires the use of 25 percent of funds for highway research and development. The Transportation Cabinet partners with the University of Kentucky Transportation Center to carry out research functions. The partnership conducts workshops on highway maintenance and management; traffic engineering, computerized signalization, signal technician certification, incident management/traffic mitigation, and provides on-demand technical assistance. The program maintains a lending library, including both written and audio-visual materials. The program also publishes a quarterly newsletter. ===== PAGE 393 =====
Transportation Highways Construction
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Budget Reserve300,000,000250,000,000200,000,000
Continuing Approp.-General Fund250,000,000541,797,180754,956,000
Total General Fund550,000,000791,797,180954,956,000
Restricted Funds
Balance Forward49,982,78277,914,28869,907,700
Current Receipts10,392,5087,807,82816,422,00016,535,00016,600,100
Non-Revenue Receipts70,343,17328,784,226331,323,60031,323,60031,323,600
Total Restricted Funds130,718,463114,506,342417,653,30047,858,60047,923,700
Federal Fund
Balance Forward(153,327,928)(113,566,081)(110,097,700)
Current Receipts1,109,463,980934,310,8102,404,217,0001,244,953,2001,253,986,000
Total Federal Fund956,136,053820,744,7292,294,119,3001,244,953,2001,253,986,000
Road Fund
Regular Appropriation475,689,500717,555,100586,859,700598,505,900624,807,200
State Salary and Compensation Allocation878,800
Surplus Expenditure Plan55,504,57261,645,600
Continuing Approp-Road Fund372,375,273238,806,852347,937,400
Other(40,000,000)(44,904,518)
Total Road Fund864,448,145911,457,434996,442,700598,505,900624,807,200
TOTAL SOURCE OF FUNDS2,501,302,6612,638,505,6854,663,171,3001,891,317,7001,926,716,900
EXPENDITURES BY CLASS
Personnel Costs266,799,468272,662,712540,773,800257,275,900259,821,600
Operating Expenses56,245,14239,634,51998,510,80062,635,50085,847,600
Grants Loans Benefits16,445,79618,483,86363,422,40024,100,00024,100,000
Debt Service69,389,96969,163,90097,524,10098,071,30049,917,900
Capital Outlay71,600895,937
Construction1,347,398,4471,174,961,5133,862,940,2001,449,235,0001,507,029,800
TOTAL EXPENDITURES1,756,350,4211,575,802,4444,663,171,3001,891,317,7001,926,716,900
EXPENDITURES BY FUND SOURCE
General Fund8,202,81936,841,221954,956,000
Restricted Funds52,804,17544,598,742417,653,30047,858,60047,923,700
Federal Fund1,069,702,134930,842,4502,294,119,3001,244,953,2001,253,986,000
Road Fund625,641,293563,520,032996,442,700598,505,900624,807,200
TOTAL EXPENDITURES1,756,350,4211,575,802,4444,663,171,3001,891,317,7001,926,716,900
===== PAGE 394 ===== ## EXPENDITURES BY UNIT
Bond Funded Construction8,148,4283,161,809335,717,400
State Funded Construction433,193,364413,087,1741,237,140,900436,889,100460,667,900
Federal Funded Construction1,315,008,6291,159,553,4613,090,313,0001,454,428,6001,466,049,000
TOTAL EXPENDITURES1,756,350,4211,575,802,4444,663,171,3001,891,317,7001,926,716,900
In the Construction program is the largest single funding component within the Highways appropriation unit. It encompasses all construction and major reconstruction of roadways in the State Primary Road System. The Construction Program is divided into five sub-programs: Bond Funded Construction, State Funded Construction, Federal Funded Construction, Toll Bond Funded Construction, and the TIFIA Loan program. KRS 45.750(3) exempts road projects, including associated equipment and land acquisition purchases, from the capital construction statutes outlined in KRS Chapter 45.760 - 45.810. Several different road systems constructed in the Commonwealth over the last 40 years have used Bond Funded Construction. General obligation bonds were sold to finance the original construction of the Interstate System. The Turnpike Authority of Kentucky sold revenue bonds to fund construction of the toll road system that crisscrosses the state. Tolls on these parkways were removed once the bonds were paid. Resource recovery bonds were sold in the late 1970s for construction of the Resource Recovery Road System, a network of highways over which coal resources could be efficiently hauled. The Turnpike Authority received authorization to sell bonds in 1984, 1987, 1990, 1993, 1995, 1999, 2005, 2006, 2008, 2009, and 2010 for projects identified as part of the Economic Development Road System. The Authority received authorization in 2008 and 2010 to issue bonds to support road projects specifically related to the Base Re-alignment and Closure (BRAC) activities in and around Fort Knox. All of the roads constructed using proceeds from Turnpike Authority bonds are built by the Cabinet on behalf of the Authority, and then are leased to the Cabinet until the bonds are retired. At that time they are transferred to the Cabinet and become a part of the state highway system. The State Funded Construction program provides for many highway improvement needs, emergency needs, industrial access roads, parkway and primary road pavement rehabilitation, and other projects for which federal funding is not available. The state resurfacing program is a part of this sub-program area and provides for resurfacing of roads in the state maintained highway system. The Highway Construction Contingency account, authorized in KRS 45.247, is also included in the State-Funded Construction program. The Federal Construction program addresses the major construction, reconstruction, and rehabilitation needs for nearly 12,000 miles of interstate, primary, secondary, urban systems, and Appalachian routes across the state. This funding is provided under Titles 23 and 40 of the US Code. From fiscal year 2005 to fiscal year 2008, $440 million in Grant Anticipation Revenue Vehicle (GARVEE) bonds were appropriated to support interstate projects along I-64, I-75, and I-65. In addition, GARVEE bonds totaling $336 million were authorized in 2008 and 2010 for the Louisville Bridges project. The 2010 Special Session of the General Assembly authorized $330 million in GARVEE bonds for the US-68/KY-80 Lake Barkley and Kentucky Lake Bridges Project. For display purposes, the GARVEE bonds are located in the Bond Funded Construction program. However, the debt service to support the GARVEE bonds is located in the Federal Fund Construction program. House Bill 4 from the 2009 Special Session of the General Assembly created the Kentucky Public Transportation Infrastructure Authority (KPTIA) to facilitate the construction, financing, operation, and oversight of mega-projects. According to the Federal Highway Administration, mega-projects are projects that have a total cost of $500 million or more. The Authority has the power to finance mega-projects through the use of tolls, funds from any GARVEE, funds appropriated by the state or federal government, and any other funds pledged for their purpose. House Bill 241 from the 2022 Regular Session of the General Assembly approved $150 million in GARVEE Bond Funds to be issued for the Brent Spence Bridge Project. House Bill 265 from the 2024 Regular Session of the General Assembly approved $150 million in GARVEE Bond funds to be issued for the I-69 Ohio River Crossing Project. ## Policy The budget authorizes the Secretary of Transportation to continue the Cash Management program, formerly known as the Pre-financing Road Projects program, authorized by the Appropriations Act since the 2000-2002 biennium. The Cash Management program allows the Cabinet to expedite projects in the Biennial Highway Construction Plan by managing Road Fund cash, while ensuring that expenditures remain within enacted appropriations. Included in the State Supported Construction Program is $20,000,000 in each fiscal year from the Road Fund for the County Priority Projects Program and $25,000,000 in each fiscal year from the Road Fund for the County Bridge Improvement program. Both of these programs were new in the 2024-26 biennial budget. ===== PAGE 395 =====
Transportation Highways Maintenance
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward123,1191,499,03433,200
Current Receipts5,505,0303,361,1563,857,0006,957,0006,957,000
Non-Revenue Receipts224,076164,144
Total Restricted Funds5,852,2265,024,3343,890,2006,957,0006,957,000
Road Fund
Regular Appropriation423,427,500445,929,400484,661,300493,714,500514,624,600
State Salary and Compensation Allocation6,459,200
Continuing Approp-Road Fund27,735,7559,471,519113,600
Other40,000,00056,200,000
Total Road Fund497,622,455511,600,919484,774,900493,714,500514,624,600
TOTAL SOURCE OF FUNDS503,474,681516,625,253488,665,100500,671,500521,581,600
EXPENDITURES BY CLASS
Personnel Costs252,375,685265,730,668263,952,400251,794,800257,704,900
Operating Expenses225,010,218231,337,795218,567,300242,490,000257,490,000
Grants Loans Benefits15,57650,112
Capital Outlay1,346,850788,681
Construction13,755,79818,571,1266,145,4006,386,7006,386,700
TOTAL EXPENDITURES492,504,128516,478,383488,665,100500,671,500521,581,600
EXPENDITURES BY FUND SOURCE
Restricted Funds4,353,1924,991,0973,890,2006,957,0006,957,000
Road Fund488,150,936511,487,285484,774,900493,714,500514,624,600
TOTAL EXPENDITURES492,504,128516,478,383488,665,100500,671,500521,581,600
Kentucky has invested approximately $19 billion in its highway infrastructure which is comprised of right-of-way, roadways, and bridges. KRS 176.050 assigns the responsibility for operating and maintaining this highway infrastructure to the Department of Highways. The Maintenance program's role is to operate and maintain the roadways, bridges, rest areas, and traffic control devices on all state-maintained highways. Two organizational units under the Office of Project Delivery and Preservation administer the Maintenance program: the Division of Maintenance and the Division of Traffic Operations. The duties of this unit are explained in Kentucky Revised Statutes 175.580, 175.610, 176.050, 176.051, 177.020, 177.410, 177.530, 177.550, 177.830-890, 177.905-990, and 180.290. The Division of Maintenance responsibilities are broken down into two areas. The Roadway Preservation program maintains approximately 15,000 miles of state primary highways and 13,000 miles of rural secondary highways. The Pavement and Operations Management personnel inspect and evaluate pavement conditions on over 27,000 miles of state-maintained roads, determine strategies for improvement, estimate funding needs, and recommend annual priorities. The Bridge Preservation program is responsible for all state-maintained bridges, except those on the Rural Secondary system. Revolving Maintenance serves as a materials revolving mechanism for refurbishing damaged guardrail. Damaged guardrail is shipped to Frankfort, straightened and re-galvanized, and is placed back into service as needs arise. Capital Improvements is a subset of the Division of Maintenance for coordinating with the Kentucky State Police vehicle accident data in order to establish priorities for installing new guardrail in locations it does not currently exist. The Rest Area Operations/Maintenance program provides sanitary and accessible restroom facilities and other convenient services for motorists traveling through the state. There are 26 rest area and welcome center locations and two truck rest haven locations. ===== PAGE 396 ===== The Division of Traffic Operations is responsible for the installation and maintenance of traffic control devices on over 27,000 miles of highways. This division uses a multitude of Intelligent Transportation Systems to communicate, control, detect and process data to effectively move traffic through the state in the safest manner possible. ## Policy Included in the above restricted fund appropriation is an additional $3.1 million in each year to support increased contract services with Trimark and Cumberland Gap. The budget includes additional Road Fund in the amount of $23,605,400 in fiscal year 2027 and $38,605,400 in fiscal year 2028 to support the Maintenance Program. These funds will be used for the increased costs of the upkeep of roads, winter operations, including snow and ice removal, resurfacing, guardrails, drainage, emergency response, pavement needs, management of roadside vegetation, and bridge repair. ===== PAGE 397 =====
Transportation Highways Engineering Administration
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Road Fund
Regular Appropriation19,886,70023,362,60020,677,90019,595,90020,016,200
State Salary and Compensation Allocation1,017,400
Total Road Fund20,904,10023,362,60020,677,90019,595,90020,016,200
TOTAL SOURCE OF FUNDS20,904,10023,362,60020,677,90019,595,90020,016,200
EXPENDITURES BY CLASS
Personnel Costs16,960,44416,926,45517,884,80016,776,30017,196,600
Operating Expenses2,021,4474,718,2042,364,3002,385,1002,385,100
Grants Loans Benefits1662,776
Capital Outlay590,127409,665252,200252,200252,200
Construction8,632116,372176,600182,300182,300
TOTAL EXPENDITURES19,580,81522,173,47120,677,90019,595,90020,016,200
EXPENDITURES BY FUND SOURCE
Road Fund19,580,81522,173,47120,677,90019,595,90020,016,200
TOTAL EXPENDITURES19,580,81522,173,47120,677,90019,595,90020,016,200
There are nine divisions organized under the State Highway Engineer's Office. The Division of Construction supervises highway construction projects, providing administrative support for central office and district construction projects. It also assists the Division of Materials staff in sampling and testing materials used in construction projects. Ine Division of Materials establishes standards and controls relating to the quality of materials for the construction, maintenance, and operation of highways and bridges. The Division also develops, coordinates, and controls testing procedures that are conducted in the field. The Division of Structural Design develops and prepares contract plans for all highway structures, as well as any special structures that the Transportation Cabinet builds as part of Kentucky's system of roads. The Division also designs and prepares plans for structural repair and rehabilitation of existing bridges, as well as the design of all overhead sign structures. The Division of Highway Design, in conjunction with the district design offices, is responsible for the required design activities of the Cabinet's Six-Year Road Plan projects, including the preparation, assembly, and reproduction of construction plans for a project's award. The Division of Environmental Analysis provides all environmental studies and documents required by federal agencies for federal-aid transportation projects and for state funded projects that require federal permits. The division ensures compliance with all federal laws and regulations. The Division of Right-of-Way and Utilities acquires property required for the construction and reconstruction of highways. This function involves obtaining title reports, performing appraisals and appraisal reviews, conducting negotiations, providing relocation assistance, facilitating property management, and initiating condemnation procedures on properties affected by proposed projects. The Division of Program Management is responsible for developing Kentucky's Biennial Six-Year Road Plan. The Division of Planning provides the day-to-day administration and support for personnel involved in the Highway Planning program activities, including management, clerical support, training, and other overhead expenditures. The Division of Professional Services is responsible for procuring the Cabinet's professional services relating to road contracts. This division advertises for engineering services, administers the pre-qualification process for consulting services, provides assistance to selection committees for contract awards, negotiates fees for consulting work sought by the Cabinet, and routinely confers with the Finance and Administration Cabinet and the Legislative Research Commission with respect to contract awards. ===== PAGE 398 =====
Transportation Highways Planning
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Federal Fund
Balance Forward333,981(139,655)189,900
Current Receipts13,503,40615,077,12615,363,40015,820,40015,974,100
Total Federal Fund13,837,38714,937,47115,553,30015,820,40015,974,100
Road Fund
Regular Appropriation4,889,3005,335,8005,610,8005,406,5005,490,600
State Salary and Compensation Allocation502,600
Other350,000850,000
Total Road Fund5,741,9006,185,8005,610,8005,406,5005,490,600
TOTAL SOURCE OF FUNDS19,579,28721,123,27121,164,10021,226,90021,464,700
EXPENDITURES BY CLASS
Personnel Costs18,290,81119,366,87618,884,20018,956,70019,194,500
Operating Expenses940,4551,044,3882,279,9002,270,2002,270,200
Construction203,8607,707
TOTAL EXPENDITURES19,435,12620,418,97221,164,10021,226,90021,464,700
EXPENDITURES BY FUND SOURCE
Federal Fund13,977,04214,747,58515,553,30015,820,40015,974,100
Road Fund5,458,0845,671,3865,610,8005,406,5005,490,600
TOTAL EXPENDITURES19,435,12620,418,97221,164,10021,226,90021,464,700
The Planning program is responsible for administrative and technical support and implements transportation planning activities statewide. The program is charged with a variety of statewide planning initiatives including: rail planning, carpooling, alternative fuel, bikeway, pedway, and ferry operations. In addition, it coordinates the Kentucky Scenic Highway and Byway System, manages the traffic data collection and processing equipment, maintains the Highway Information System, and coordinates air quality conformity with several state and federal agencies. Highway Planning evaluates state-maintained streets and highways to ensure that available federal and state funds are utilized to maximum efficiency. The Planning unit maintains an inventory of all roadway classifications and prepares city, county, and state road maps for sale and distribution. The program also furnishes statistics required by the Federal Highway Administration and state and local government decision-makers. Metropolitan Planning maintains and distributes federal funding to nine metropolitan planning organizations (MPOs) to implement the continuing, comprehensive, and cooperative planning process, which is mandated by federal law. The MPOs study the impact of transportation operations in urbanized areas concerning congestion management, air quality, environmental issues, public involvement, land use and development, and public transportation. Area Development Districts (ADDs) Assistance administers a regional planning and public participation process in the state's 15 ADDs as part of the Cabinet's overall statewide transportation planning process, as required by 23 USC and 23 CFR 450. The Cabinet contracts with each ADD for activities in support of the regional and statewide planning process, including public involvement, data collection, analysis, identification of needs, project recommendations, regional prioritization of projects, and technical assistance and review. ===== PAGE 399 =====
Transportation Highways Highway Operations
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Current Receipts11,966,92826,156,59047,078,10047,086,20047,090,800
Non-Revenue Receipts1,114,592258,876
Total Restricted Funds13,081,52126,415,46647,078,10047,086,20047,090,800
Road Fund
Regular Appropriation40,991,20042,214,80042,294,40040,053,90040,912,900
State Salary and Compensation Allocation1,879,200
Other(350,000)(2,350,000)
Total Road Fund42,520,40039,864,80042,294,40040,053,90040,912,900
TOTAL SOURCE OF FUNDS55,601,92166,280,26689,372,50087,140,10088,003,700
EXPENDITURES BY CLASS
Personnel Costs45,804,89255,845,51372,906,70070,631,50071,495,200
Operating Expenses3,202,2833,508,98113,850,90014,111,60014,049,600
Grants Loans Benefits6679,737
Capital Outlay20,858
Construction3,028,6616,009,3042,614,9002,397,0002,458,900
TOTAL EXPENDITURES52,057,36065,373,53689,372,50087,140,10088,003,700
EXPENDITURES BY FUND SOURCE
Restricted Funds13,081,52126,415,46647,078,10047,086,20047,090,800
Road Fund38,975,84038,958,07142,294,40040,053,90040,912,900
TOTAL EXPENDITURES52,057,36065,373,53689,372,50087,140,10088,003,700
In accordance with KRS Chapter 176, the Highway Operations program provides leadership, management, and central administrative support and funding for central office and district operations for the Transportation Cabinet's Department of Highways. The Commissioner of Highways oversees the Department, which includes the State Highway Engineer's Office, three offices which include 14 divisions, and 12 district offices across the state. In the 12 district offices, the Chief District Engineer manages the road project functions and reports to the State Highway Engineer. The State Highway Engineer's Office manages and coordinates the engineering functions of the Cabinet, reviews management, engineering, and personnel reports and recommendations from the engineering and professional divisions, staff and Deputy State Highway Engineers. In addition, the Office administers the Cabinet's Engineering Scholarship program and the Engineering Graduate Training program, coordinates the Research program, and manages special projects, such as the Louisville Bridges project. Contract procurement activities are also a part of the Highway Operations program and include prequalifying road contractors, advertising bids for road construction projects, awarding contracts, and issuing work orders and monitoring required contract provisions. In fiscal year 2016-2017, the Transportation Cabinet began collecting a portion of the toll revenue from the Louisville-Southern Indiana Ohio River Bridges project to fund toll system operations and maintenance and administrative costs of the Kentucky Public Transportation Infrastructure Authority (KPTIA). The toll revenue is collected in an enterprise fund within the Transportation Cabinet, and the costs that it supports are included in the above restricted funds. ===== PAGE 400 =====
Transportation Highways Equipment Services
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward16,804,97324,203,04312,005,700
Current Receipts73,423,34978,630,64092,338,00094,603,10095,173,300
Non-Revenue Receipts
Total Restricted Funds90,228,322102,833,683104,343,70094,603,10095,173,300
TOTAL SOURCE OF FUNDS90,228,322102,833,683104,343,70094,603,10095,173,300
EXPENDITURES BY CLASS
Personnel Costs20,571,59820,605,87022,216,70023,262,00023,832,200
Operating Expenses26,398,43326,884,97033,221,60034,154,60034,154,600
Grants Loans Benefits10,674
Capital Outlay50,00014,191
Construction19,005,24843,312,24348,905,40037,186,50037,186,500
TOTAL EXPENDITURES66,025,27990,827,948104,343,70094,603,10095,173,300
EXPENDITURES BY FUND SOURCE
Restricted Funds66,025,27990,827,948104,343,70094,603,10095,173,300
TOTAL EXPENDITURES66,025,27990,827,948104,343,70094,603,10095,173,300
The mission of the Equipment Services program is to provide highway construction and maintenance equipment for use by the Department of Highways. The unit purchases and maintains all the Cabinet's trucks, heavy equipment, and various pieces of support machinery. This program provides its services through the central office garage in Frankfort and a network of 12 repair garages located throughout the state. ===== PAGE 401 =====
Transportation Highways Highway Safety
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward2,279,4202,516,0812,448,1002,440,5002,440,500
Current Receipts989,427967,4571,142,4001,150,0001,150,000
Non-Revenue Receipts9,352
Total Restricted Funds3,278,1993,483,5393,590,5003,590,5003,590,500
Federal Fund
Balance Forward(874,053)(2,013,751)(2,471,800)
Current Receipts7,171,4279,677,14113,568,80011,131,60011,151,500
Total Federal Fund6,297,3747,663,39011,097,00011,131,60011,151,500
Road Fund
Regular Appropriation8,753,6008,897,8008,627,7008,384,5008,482,300
State Salary and Compensation Allocation6,200
Total Road Fund8,759,8008,897,8008,627,7008,384,5008,482,300
TOTAL SOURCE OF FUNDS18,335,37220,044,72823,315,20023,106,60023,224,300
EXPENDITURES BY CLASS
Personnel Costs9,429,55110,799,91613,064,30012,426,40012,544,100
Operating Expenses1,806,3222,086,411795,100792,000792,000
Grants Loans Benefits5,021,1306,600,0116,028,7006,584,0006,584,000
Capital Outlay517,31513,184
Construction472,279162,913986,600863,700863,700
TOTAL EXPENDITURES17,246,59819,662,43520,874,70020,666,10020,783,800
EXPENDITURES BY FUND SOURCE
Restricted Funds762,1171,035,5301,150,0001,150,0001,150,000
Federal Fund8,311,12510,135,14711,097,00011,131,60011,151,500
Road Fund8,173,3568,491,7588,627,7008,384,5008,482,300
TOTAL EXPENDITURES17,246,59819,662,43520,874,70020,666,10020,783,800
The Office of Transportation Safety is headed by an Executive Director who reports directly to the State Highway Engineer. The Office includes the Division of Incident Management and the Division of Highway Safety Programs. The Motorcycle Advisory Commission for Highway Safety is attached for administrative purposes. The Division of Incident Management manages the Transportation Operations Center and coordinates highway incident management including providing information to travelers and providing assistance to stranded motorists and law enforcement agencies at the scene of highway incidents. The Division of Highway Safety Programs is charged with coordinating efforts to reduce fatalities, injuries, and crashes on Kentucky's highway systems. ===== PAGE 402 =====
Transportation Highways East Kentucky SAFE Fund
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward43,133,90741,259,63815,635,600
Current Receipts1,336,986351
Non-Revenue Receipts(22,000,000)
Total Restricted Funds44,470,89319,259,98915,635,600
TOTAL SOURCE OF FUNDS44,470,89319,259,98915,635,600
EXPENDITURES BY CLASS
Personnel Costs39,88074,631
Operating Expenses3,003,3542,500,01241,700
Construction168,0211,049,69615,593,900
TOTAL EXPENDITURES3,211,2553,624,34015,635,600
EXPENDITURES BY FUND SOURCE
Restricted Funds3,211,2553,624,34015,635,600
TOTAL EXPENDITURES3,211,2553,624,34015,635,600
The EKY SAFE Fund was established to provide financial assistance for those located in the areas named in the Presidential Declaration of a Major Disaster, designated FEMA 4663-DR-KY, and impacted by the July 2022 storms and flooding that occurred in the eastern Kentucky region. House Bill 1 of the 2022 Special Session of the General Assembly appropriated $45 million for the non-federal share of state road and bridge repair projects that are eligible for reimbursement from federal emergency disaster assistance for areas named in the Declaration. House Bill 244 of the 2025 Regular Session of the General Assembly authorized the transfer of remaining appropriations from the EKY Safe fund to the SAFE 4860 fund. In fiscal year 2025, $22,000,000 was transferred to the SAFE 4860 fund. ===== PAGE 403 =====
Transportation
Public Transportation
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation15,575,80015,575,80015,575,80015,093,50015,093,500
Continuing Approp-General Fund17,302,73125,280,23323,914,800 (482,300)
Budget Reduction-General Fund
Total General Fund32,878,53140,856,03339,008,30015,093,50015,093,500
Restricted Funds
Balance Forward12,601
Current Receipts681,0532,042,425865,100735,100749,600
Non-Revenue Receipts(33,100)143,654(143,700)
Total Restricted Funds647,9532,198,680721,400735,100749,600
Federal Fund
Balance Forward220,037140,077(128,900)
Current Receipts33,477,48240,502,356236,076,20041,838,10041,873,800
Total Federal Fund33,697,51940,642,433235,947,30041,838,10041,873,800
TOTAL SOURCE OF FUNDS67,224,00483,697,146275,677,00057,666,70057,716,900
EXPENDITURES BY CLASS
Personnel Costs2,431,0182,280,1123,043,1003,132,0003,182,200
Operating Expenses92,15190,673109,200109,400109,400
Grants Loans Benefits39,267,92357,540,526272,524,70054,425,30054,425,300
TOTAL EXPENDITURES41,791,09259,911,311275,677,00057,666,70057,716,900
EXPENDITURES BY FUND SOURCE
General Fund7,598,29716,941,24539,008,30015,093,50015,093,500
Restricted Funds635,3522,198,680721,400735,100749,600
Federal Fund33,557,44340,771,386235,947,30041,838,10041,873,800
TOTAL EXPENDITURES41,791,09259,911,311275,677,00057,666,70057,716,900
EXPENDITURES BY UNIT
Public Transportation40,674,94158,719,975274,470,60056,446,60056,482,300
Multi-Modal Transportation480,799485,000485,000485,000485,000
Human Services Delivery635,352706,336721,400735,100749,600
TOTAL EXPENDITURES41,791,09259,911,311275,677,00057,666,70057,716,900
The Public Transportation appropriation unit is comprised of three programs: Public Transportation, Multi-Modal, and Human Services Transportation Delivery. The Public Transportation program offers technical and financial assistance to public transportation providers and the metropolitan planning organizations throughout the state through the following federal programs: Sections 5303, 5307, 5309, 5310, 5311, 5316, and 5317. Federal Funds, combined with General Fund and local matching funds, allow public transit authorities to acquire buses and vans. Also included in the Public Transportation program is funding for Non-public School Transportation, a program that provides grants to non-public schools so that they may offer bus service to their students. The Multi-Modal program partners with the 15 area development districts with respect to regional and statewide transportation planning processes. This partnership generates public involvement with respect to identifying and prioritizing needs and assists in the project recommendation process, including the coordination of the Statewide Transportation Plan, the State Transportation Improvement program, and the Six-Year Highway Plan. ===== PAGE 404 ===== The Human Service Transportation Delivery program is a partnership between the Transportation Cabinet, the Medicaid program, the Office for Vocational Rehabilitation, and the Office for the Blind. This partnership provides non-emergency medical transportation, jobs access transportation, and transportation to day care facilities. The program also partners with the Veterans' Program Trust Fund to provide transportation services for veterans. ## Policy The base budget includes General Fund in the amount of $5,000,000 in both fiscal years for nonpublic school transportation. The Governor's budget includes additional funding in the amount of $38,100 in fiscal year 2027 and $78,300 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. ===== PAGE 405 =====
Transportation Revenue Sharing
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Road Fund
Regular Appropriation364,783,000389,335,000416,771,700341,452,400360,734,600
State Salary and Compensation Allocation77,800
Continuing Approp-Road Fund130,529,089173,441,731
Other41,562,845(12,787,321)(56,584,300)
Total Road Fund536,952,734549,989,410360,187,400341,452,400360,734,600
TOTAL SOURCE OF FUNDS536,952,734549,989,410360,187,400341,452,400360,734,600
EXPENDITURES BY CLASS
Personnel Costs4,163,5653,753,9282,518,6002,358,6002,408,900
Operating Expenses20,176,45120,053,30410,720,60010,033,90010,126,200
Grants Loans Benefits200,893,459220,913,787193,102,900183,298,900193,672,900
Construction137,517,016138,913,423153,845,300145,761,000154,526,600
TOTAL EXPENDITURES362,750,492383,634,441360,187,400341,452,400360,734,600
EXPENDITURES BY FUND SOURCE
Road Fund362,750,492383,634,441360,187,400341,452,400360,734,600
TOTAL EXPENDITURES362,750,492383,634,441360,187,400341,452,400360,734,600
EXPENDITURES BY UNIT
County Road Aid138,568,056161,208,135135,863,800128,963,300136,265,000
Rural Secondary160,972,743161,353,886164,818,400156,447,400165,305,200
Municipal Aid62,230,94659,625,62457,166,70054,263,20057,335,500
Energy Recovery96,458539,299181,000181,000181,000
Rural and Municipal Aid882,289907,4972,157,5001,597,5001,647,900
TOTAL EXPENDITURES362,750,492383,634,441360,187,400341,452,400360,734,600
There are five components of the Revenue Sharing program: the County Road Aid program, authorized by KRS 179.410 - 179.440; the Rural Secondary Aid program, authorized by KRS 177.320; the Municipal Road Aid program, authorized by KRS 177.365 - 177.366; the Energy Recovery Road program, authorized by KRS 177.977-177.978; and other Special Programs. The County Road Aid, Rural Secondary Aid, and Municipal Aid programs receive a portion of the state's motor fuels tax collections. The County Road Aid program receives 18.3 percent of motor fuels tax collections which is distributed to counties for the construction, reconstruction and maintenance of county roads and bridges. The Rural Secondary Aid program receives 22.2 percent of motor fuels tax collections, and funds are used to repair and maintain rural and secondary roads. Funds for both programs are allocated through a formula known as the "formula of fifths," as stated in KRS 177.360. Each county receives a portion of the statewide total as follows: one fifth is divided evenly among all counties, one fifth is divided proportionately based on the amount of rural population in each county, one fifth is distributed on the basis of rural road mileage in each county, and two fifths is apportioned according to each county's share of the total land area in the state. The Municipal Road Aid program is funded by 7.7 percent of motor fuels tax collections. Distribution is made through a formula based upon the population contained in each city or unincorporated urban area. Pursuant to KRS 183.220(3), two and one-tenth cents ($0.021) of the tax collected under the motor fuel tax are excluded from the calculations of revenue sharing distributions as prescribed in KRS 177.320(1) (the Rural Secondary program), KRS 177.320(2) (the County Road Aid program), and KRS 177.365 (the Municipal Road Aid program). R-forty percent of the revenues collected from extended vehicle weight fees support the Energy Recovery Road System. Funds are distributed to the counties for the county-maintained portion of that system. The fund distribution is based on (1) the ratio of miles of roads in each county within this system to the total system miles, and (2) the ratio of the total tons of coal transported over the roads in each county to the total tons reported for the entire state. The Transportation Cabinet has the authority to expend the remaining 60 percent on the roads in the system. ===== PAGE 406 ===== The Special Programs budget unit includes the Commissioner's Office, the Office of Local Programs, the Kentucky Bicycle and Bikeway Commission, and the Bicycle and Pedestrian Program. ## Policy The original fiscal year 2026 Motor Fuels revenue estimate was $922.6 million, the updated estimate is $805.4 million. This decreased the revenue sharing appropriation by $56.5 million in fiscal year 2026. The Motor Fuels revenue estimate upon which the Road Fund appropriations in the Revenue Sharing program are based, is $767,925,000 in fiscal year 2027 and $807,825,000 in fiscal year 2028, increasing the amount for cities and counties allocated through the Revenue Sharing formula. ===== PAGE 407 =====
Transportation
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
Restricted Funds
Balance Forward18,896,29924,581,90419,603,70014,360,7008,768,000
Current Receipts21,184,12121,752,92221,886,00018,391,20017,997,300
Non-Revenue Receipts(8,907,032)(4,000,000)
Total Restricted Funds40,080,42037,427,79437,489,70032,751,90026,765,300
Federal Fund
Balance Forward(892,060)(1,123,079)(1,189,800)
Current Receipts3,203,0933,267,4175,816,9004,627,1004,627,100
Total Federal Fund2,311,0332,144,3374,627,1004,627,1004,627,100
Road Fund
Regular Appropriation47,052,20054,657,00055,522,10080,210,10077,927,900
State Salary and Compensation Allocation534,400
Current Year Appropriation5,035,600
Total Road Fund47,586,60054,657,00060,557,70080,210,10077,927,900
TOTAL SOURCE OF FUNDS89,978,05294,229,131102,674,500117,589,100109,320,300
EXPENDITURES BY CLASS
Personnel Costs38,721,95246,270,79051,534,80068,668,10069,183,000
Operating Expenses18,417,07421,869,20024,736,40032,380,00028,585,200
Grants Loans Benefits4,476,0194,600,5674,600,0004,600,0004,600,000
Debt Service1,507,0001,613,0001,613,000
Capital Outlay758,4005,635,600760,000600,000
Construction294,238337,021300,000800,000800,000
TOTAL EXPENDITURES61,909,28273,835,97788,313,800108,821,100105,381,200
EXPENDITURES BY FUND SOURCE
Restricted Funds15,498,51617,824,05723,129,00023,983,90022,826,200
Federal Fund3,434,1123,334,0514,627,1004,627,1004,627,100
Road Fund42,976,65452,677,86960,557,70080,210,10077,927,900
TOTAL EXPENDITURES61,909,28273,835,97788,313,800108,821,100105,381,200
EXPENDITURES BY UNIT
Commissioner1,002,2751,141,5471,341,8001,806,5001,836,100
Drivers Licensing30,432,37339,904,29250,647,80067,884,20065,400,200
Motor Carriers7,500,5617,571,4639,100,6008,978,0009,080,600
Motor Vehicle Licensing19,402,15221,889,49922,845,20025,819,60024,672,600
Customer Service2,068,4351,709,1721,733,4001,706,8001,729,100
Motor Vehicle Commission1,503,4871,620,0052,645,0002,626,0002,662,600
TOTAL EXPENDITURES61,909,28273,835,97788,313,800108,821,100105,381,200
The Department of Vehicle Regulation includes the Commissioner's Office and the following divisions: Driver Licensing, Motor Carriers, Motor Vehicle Licensing, and Customer Service. The Motor Vehicle Commission is also attached to the Department for administrative purposes. ===== PAGE 408 ===== Under KRS Chapters 186, 187, 189A, 218A, 281A, and KRS 159.051, the Division of Driver Licensing maintains driver history records for approximately three million drivers. The Division issues licenses to commercial drivers who meet statutory requirements. The Division also enforces driver's license suspensions, revocations, and driver limitation programs. It operates State Traffic School programs, including the Graduated Licensing program. The Division of Motor Carriers is responsible for the regulation of the trucking and lease/rental industries. The division also collects various taxes from the motor carrier industry, including the weight-distance tax. The Division of Motor Vehicle Licensing provides for the titling and registration of motor vehicles and boats in accordance with KRS Chapters 186, 186A, 235, and 376. It maintains the Automated Vehicle Information System (AVIS) and controls title distribution functions. Registration and title applications are initiated through local county clerks' offices. Newly created in 2012, the Division of Customer Service provides a single point of contact for all telephone calls to the Department of Vehicle Regulation in support of over 3 million public customers, Circuit Clerks, County Clerks, and commercial businesses. Pursuant to KRS Chapter 190, the Kentucky Motor Vehicle Commission licenses and regulates motor vehicle manufacturers, dealers, and salespersons. It is funded through license fees that are deposited into a Restricted Fund account. ## Policy Additional Road Fund of $5,035,600 in fiscal year 2026, $20,380,600 in fiscal year 2027, and $19,848,100 in fiscal year 2028 has been included to support the opening of six new driver licensing offices, making the total number of regional driver license offices 40, and to increase staffing at existing offices. This will address the wait times experienced by residents renewing driver licenses and Real ID's or obtaining credentials for the first time. The Governor's budget includes additional funding in the amount of $542,800 in fiscal year 2027 and $1,114,600 in fiscal year 2028 to fund a 2% salary increment in fiscal year 2027 and an additional 2% in fiscal year 2028. An additional $3,600,000 restricted funds each year has been added to support the ongoing operations of the KAVIS system. Additional Road Fund of $5,000,000 in fiscal year 2027 and $2,500,000 in fiscal year 2028 has been added to support maintenance of the new drivers licensing system, known as KINDLE. ===== PAGE 409 ===== Statewide ===== PAGE 410 =====
Statewide
Budget Reserve Trust Fund
Actual FY 2024Actual FY 2025Revised FY 2026Recommended FY 2027Recommended FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation873,650,500
Surplus Expenditure Plan1,452,921,41015,044,859251,340,200
Current Year Appropriation2,017,591,200
Continuing Approp-General Fund2,260,597,1565,226,409,7664,560,189,4003,764,123,1002,968,473,100
Other(504,700,000)(1,554,915,746)(1,047,406,500)(795,650,000)(166,500,000)
Total General Fund5,226,409,7664,560,189,3793,764,123,1002,968,473,1002,801,973,100
TOTAL SOURCE OF FUNDS5,226,409,7664,560,189,3793,764,123,1002,968,473,1002,801,973,100
EXPENDITURES BY CLASS
## TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE ___ ___ ___ ___ ___ ___TOTAL EXPENDITURES The Budget Reserve Trust Fund is the Commonwealth's "Rainy Day Fund." The statutory method of contributions within KRS 48.705 provide for deposits to the Budget Reserve Trust Fund from half of each fiscal year's General Fund surplus until the balance reaches five percent of the prior year's General Fund revenue receipts. That statute has been suspended in the many consecutive budget bills so that all of the General Fund surplus at year's end is deposited into the Budget Reserve Trust Fund, except for the amounts used to finance Necessary Government expenses. Past budget bills have also appropriated amounts directly to the Budget Reserve Trust Fund. The fund may be used when there is a revenue shortfall, for appropriations, and for necessary government expenses. ## Policy The current unobligated balance of the Budget Reserve Trust Fund is $3,764,123,047. The 2024-26 budget appropriated the use of $3.1 billion through House Bill 1 and Senate Bill 91 from the 2024 session, and there were deposits of $873.7 million from the budget bill and $251.3 million from the fiscal year 2024-25 surplus. ===== PAGE 411 =====
Statewide
KentuckyPermanentPensionFund
ActualActualRevisedRecommendedRecommended
FY 2024FY 2025FY 2026FY 2027FY 2028
SOURCE OF FUNDS
General Fund
Regular Appropriation200,000,000
Special Appropriation(127,320,800)
Budget Reduction-General Fund(1,954,500)
Other(3,000,000)(67,724,700)
Continuing Approp-General Fund69,679,20069,679,200
Total General Fund69,679,20069,679,200
Restricted Funds
Balance Forward35,371,19175,518,600118,518,600108,018,600
Current Receipts528,0472,270,9103,300,0002,300,000800,000
Non-Revenue Receipts34,843,14437,786,53439,700,00039,700,00039,700,000
Total Restricted Funds35,371,19175,428,635118,518,600160,518,600148,518,600
TOTAL SOURCE OF FUNDS105,050,391145,107,835118,518,600160,518,600148,518,600
EXPENDITURES BY CLASS
Grants Loans Benefits52,500,00072,771,000
TOTAL EXPENDITURES52,500,00072,771,000
EXPENDITURES BY FUND SOURCE
General Fund
Restricted Funds52,500,00072,771,000
TOTAL EXPENDITURES52,500,00072,771,000
The Kentucky Permanent Pension Fund appropriation unit was used to contain $200 million to provide financing in fiscal year 2023-24 to state agencies for salary improvement efforts. Most of the revenues from the new sports wagering law, 87.5 percent of the excise taxes and application and license fees, are transferred to the Fund. Of the remaining amount, 10% is for the Kentucky Horse Racing and Gaming Commission and 2.5% for the Kentucky problem gambling assistance account. ## Policy The $67.7 million unexpended General Fund amount is directed in the Governor's 2026-28 budget to the beginning General Fund balance for fiscal year 2027. The Governor's budget provides $40.5 million from sports wagering revenues to the Pre-K for All initiative in fiscal year 2028 to be administered by the Department of Education. The expected balance at the end of fiscal year 2026 is estimated to be over $115 million. Of that amount, $52.5 million in fiscal year 2027 and $32,271,000 in fiscal year 2028 is transferred to support the health insurance costs of Kentucky's local school districts.