Shown verbatim: the complete text as captured from the official PDF posted by the Kentucky General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the current version. The official bill page.
Large document: the complete text runs about 67,000 words on this one page, so it can take a moment to load and render.
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 AN ACT relating to appropriations measures providing funding and establishing
2 conditions for the operations, maintenance, support, and functioning of the government of
3 the Commonwealth of Kentucky and its various officers, cabinets, departments, boards,
4 commissions, institutions, subdivisions, agencies, and other state-supported activities.
5 Be it enacted by the General Assembly of the Commonwealth of Kentucky:
6 Section 1. The State/Executive Branch Budget is as follows:
7 PART I
8 OPERATING BUDGET
9 (1) Funds Appropriations: There is appropriated out of the General Fund, Road
10 Fund, Restricted Funds accounts, Federal Funds accounts, or Bond Funds accounts for
11 the fiscal year beginning July 1, 2025, and ending June 30, 2026, for the fiscal year
12 beginning July 1, 2026, and ending June 30, 2027, and for the fiscal year beginning July
13 1, 2027, and ending June 30, 2028, the following discrete sums, or so much thereof as
14 may be necessary. Appropriated funds are included pursuant to KRS 48.700 and 48.710.
15 Each appropriation is made by source of respective fund or funds accounts.
16 Appropriations for the following officers, cabinets, departments, boards, commissions,
17 institutions, subdivisions, agencies, and budget units of the state government, and any and
18 all other activities of the government of the Commonwealth, are subject to the provisions
19 of Chapters 12, 42, 45, and 48 of the Kentucky Revised Statutes and compliance with the
20 conditions and procedures set forth in this Act.
21 (2) Tobacco Settlement Funds: Appropriations identified as General Fund
22 (Tobacco) in Part I, Operating Budget, of this Act are representative of the amounts
23 provided in Part X, Phase I Tobacco Settlement, of this Act and are not to be appropriated
24 in duplication.
25 A. GENERAL GOVERNMENT
26 Budget Units
27 1. OFFICE OF THE GOVERNOR
Page 1 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 2026-27 2027-28
2 General Fund 6,688,100 6,607,200
3 Restricted Funds 287,900 287,800
4 TOTAL 6,976,000 6,895,000
5 (1) Salary Increment: Notwithstanding KRS 64.480(2), the increment provided
6 on the base salary of the Lieutenant Governor shall be the same as that provided for
7 eligible state employees in Part IV of this Act.
8 Notwithstanding KRS 64.480(4), the increment provided on the base salary of the
9 Governor shall be the same as that provided for eligible state employees in Part IV of this
10 Act.
11 2. OFFICE OF STATE BUDGET DIRECTOR
12 2026-27 2027-28
13 General Fund 3,782,900 3,749,000
14 Restricted Funds 384,000 384,000
15 Federal Funds 62,000 -0-
16 TOTAL 4,228,900 4,133,000
17 (1) Participation in Transparent Governing - Full Disclosure of Inmate
18 Population Forecasts and Related Materials: The Office of State Budget Director shall
19 provide the methodology, assumptions, data, and all other related materials used to
20 project biennial offender population forecasts conducted by the Office of State Budget
21 Director, the Kentucky Department of Corrections, and any consulting firms, to the
22 Interim Joint Committee on Appropriations and Revenue by October 1, 2027. This
23 submission shall include but not be limited to the projected state, county, and community
24 offender populations for the 2028-2030 fiscal biennium and must coincide with the
25 budgeted amount for these populations. This submission shall clearly divulge the
26 methodology and reasoning behind the budgeted and projected offender population in a
27 commitment to participate in transparent governing.
Page 2 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 3. HOMELAND SECURITY
2 2026-27 2027-28
3 General Fund 5,632,600 5,626,200
4 Restricted Funds 4,411,800 4,360,100
5 Federal Funds 9,955,400 9,983,700
6 TOTAL 19,999,800 19,970,000
7 (1) Next Generation 9-1-1 (NG9-1-1) Services: Included in the above General
8 Fund appropriation is a one-time allocation of $5,000,000 in each fiscal year to complete
9 the statewide deployment of NG9-1-1 services. The appropriation shall be used to
10 implement a NG9-1-1 system that is compliant with the National Emergency Number
11 Association’s i3 Standard.
12 (2) School Safety: Included in the above appropriations is sufficient funding to
13 implement and carry out the provisions of 2024 Ky. Acts ch. 165.
14 4. VETERANS' AFFAIRS
15 2026-27 2027-28
16 General Fund 37,487,300 38,976,800
17 Restricted Funds 107,228,800 108,377,900
18 Federal Funds 300,000 300,000
19 TOTAL 145,016,100 147,654,700
20 (1) Weekend and Holiday Premium Pay Incentive: The Kentucky Veterans
21 Centers are authorized to continue the weekend and holiday premium pay incentive for
22 the 2026-2028 fiscal biennium.
23 (2) Congressional Medal of Honor Recipients - Travel and Per Diem: The
24 Commissioner of the Department of Veterans' Affairs may approve travel and per diem
25 expenses incurred when Kentucky residents who have been awarded the Congressional
26 Medal of Honor attend veterans, military, or memorial events in the Commonwealth of
27 Kentucky.
Page 3 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (3) State Veterans Nursing Home: All state veterans' nursing homes must meet
2 a combined 80 percent bed occupancy rate before any future projects will be considered.
3 Once the 80 percent threshold has been met, it is the intent of the General Assembly that
4 any future beds allocated from the United States Department of Veterans Affairs or
5 reallocated from the Kentucky Department of Veterans' Affairs be dedicated to a state
6 veterans nursing home in Magoffin County to serve that area.
7 (4) Brain Injury Association of America, Kentucky Chapter and the
8 Epilepsy Foundation of Kentuckiana Funding: Included in the above General Fund
9 appropriation is $93,700 in each fiscal year for grants to the Brain Injury Association of
10 America, Kentucky Chapter and $93,700 in each fiscal year for grants to the Epilepsy
11 Foundation of Kentuckiana to be used solely for the purpose of working with veterans
12 who have experienced brain trauma and their families.
13 (5) Veterans' Service Organization Funding: Included in the above General
14 Fund appropriation is $187,500 in each fiscal year for grants to Veterans' Service
15 Organization programs.
16 (6) Kentucky Homeless Veterans Program: Included in the above General
17 Fund appropriation is $300,000 in each fiscal year to provide emergency financial
18 assistance to Kentucky's homeless veterans.
19 (7) Bowling Green Veterans Center: Included in the above appropriation is
20 $5,616,800 in General Fund and $10,000,000 in Restricted Funds in each fiscal year to
21 support the staffing and operations of the Bowling Green Veterans Center.
22 (8) Thomson-Hood Veterans Center Additional Positions: Included in the
23 above Restricted Funds appropriation is $5,110,800 in fiscal year 2026-2027 and
24 $5,488,400 in fiscal year 2027-2028 for additional positions at the Thomson-Hood
25 Veterans Center.
26 (9) Western Kentucky Veterans Center Additional Positions: Included in the
27 above Restricted Funds appropriation is $6,397,400 in fiscal year 2026-2027 and
Page 4 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 $6,778,600 in fiscal year 2027-2028 for additional positions at the Western Kentucky
2 Veterans Center.
3 (10) HBOT for Kentucky Vets: Notwithstanding KRS 45.229, any unexpended
4 funds authorized in 2024 Ky. Acts ch. 173, sec. 1, (3) to HBOT for Kentucky Vets shall
5 not lapse and shall carry forward.
6 5. KENTUCKY INFRASTRUCTURE AUTHORITY
7 2026-27 2027-28
8 General Fund 1,830,100 1,768,800
9 Restricted Funds 8,345,500 10,862,200
10 Federal Funds 440,051,600 288,578,900
11 TOTAL 450,227,200 301,209,900
12 (1) Debt Service: Included in the above Restricted Funds appropriation is
13 $2,486,000 in fiscal year 2026-2027 and $4,972,000 in fiscal year 2027-2028 for new
14 debt service to support new bonds as set forth in Part II, Capital Projects Budget, of this
15 Act.
16 (2) Rural Infrastructure Improvement Fund: Notwithstanding KRS Chapter
17 45A or any statute to the contrary, any contract executed by the Kentucky Infrastructure
18 Authority from the Rural Infrastructure Improvement Fund prior to June 30, 2026, shall
19 remain in effect for the purpose of paying claims; however, no additional contracts may
20 be entered into after this date. Notwithstanding 224A.1123(3)(c), unobligated funds as of
21 June 30, 2026, or any portion of General Fund not expended for this purpose shall lapse
22 to the Budget Reserve Trust Fund Account (KRS 48.705).
23 The Kentucky Infrastructure Authority shall provide a report detailing Rural
24 Infrastructure Improvement Fund reimbursements to the Interim Joint Committee on
25 Appropriations and Revenue by October 1, 2026. This report shall include but not be
26 limited to a list of grant recipients, the amount of each reimbursement, the status of
27 project completion, and an explanation of any delays or challenges experienced as part of
Page 5 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 the reimbursement process.
2 (3) Area Development District Reporting and Compensation: Each area
3 development district shall submit a comprehensive financial report to the Kentucky
4 Infrastructure Authority by September 1, 2026, detailing all expenditures made during the
5 preceding fiscal year to satisfy the requirements of any contract or agreement between the
6 district and the authority. This report shall include details concerning contracted water
7 management planning services and the maintenance of the Water Resource Information
8 System (WRIS) and other relevant contracted services.
9 The Kentucky Infrastructure Authority shall submit a report to the Interim Joint
10 Committee on Appropriations and Revenue by November 1, 2026. The report shall
11 include information received from the area development districts as well as financial
12 information detailing funding distributed to the area development districts for WRIS and
13 other relevant contracted services.
14 6. MILITARY AFFAIRS
15 2026-27 2027-28
16 General Fund 29,252,300 28,669,500
17 Restricted Funds 21,449,500 21,566,600
18 Federal Funds 88,307,100 88,593,500
19 TOTAL 139,008,900 138,829,600
20 (1) Kentucky National Guard: Included in the above General Fund
21 appropriation is $4,500,000 in each fiscal year to be expended, subject to the conditions
22 and procedures provided in this Act, which are required as a result of the Governor's
23 declaration of emergency pursuant to KRS Chapter 39A, and the Governor's call of the
24 Kentucky National Guard to active duty when an emergency or exigent situation has been
25 declared to exist by the Governor. Notwithstanding KRS 45.229, any portion of the
26 $4,500,000 not expended shall lapse to the Budget Reserve Trust Fund Account (KRS
27 48.705) at the end of each fiscal year. In the event that costs for Governor-declared
Page 6 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 emergencies or the Governor’s call of the Kentucky National Guard for emergencies or
2 exigent situations exceed $4,500,000 annually, up to $100,000,000 for the 2026-2028
3 fiscal biennium shall be deemed necessary government expenses and shall be paid from
4 the General Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund
5 Account (KRS 48.705).
6 (2) Disaster or Emergency Aid Funds: Subject to the conditions and procedures
7 in this Act, in the event of a presidentially declared disaster or emergency, the
8 Department of Military Affairs may request from the Finance and Administration
9 Cabinet, as a necessary government expense, up to $25,000,000 in each fiscal year from
10 the General Fund to be used as required to match federal aid for which the state would be
11 eligible. These necessary funds shall be made available from the General Fund Surplus
12 Account (KRS 48.700) or the Budget Reserve Trust Fund Account (KRS 48.705).
13 All moneys reimbursed to the state by the Federal Emergency Management Agency
14 (FEMA) for eligible disaster-related expenditures shall be deposited into the Budget
15 Reserve Trust Fund Account (KRS 48.705).
16 The Department of Military Affairs shall provide a comprehensive list of
17 anticipated FEMA reimbursements to counties eligible for disaster-related expenditures
18 to the Interim Joint Committee on Appropriations and Revenue by June 1, 2026.
19 7. COMMISSION ON HUMAN RIGHTS
20 2026-27 2027-28
21 General Fund 1,999,200 1,985,900
22 Restricted Funds 10,000 10,000
23 Federal Funds 445,000 445,000
24 TOTAL 2,454,200 2,440,900
25 8. COMMISSION ON WOMEN
26 (1) Redistribution of Resources: Notwithstanding KRS 12.020, 12.023, 14.260,
27 15A.190, 214.554, and 344.510 to 344.530, no General Fund appropriation is provided
Page 7 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 for the Commission on Women in order to provide additional funding for Domestic
2 Violence Shelters, Rape Crisis Centers, and Children's Advocacy Centers.
3 9. DEPARTMENT FOR LOCAL GOVERNMENT
4 2026-27 2027-28
5 General Fund 10,227,100 12,001,300
6 Restricted Funds 4,404,700 2,346,300
7 Federal Funds 242,402,800 242,437,200
8 TOTAL 257,034,600 256,784,800
9 (1) Appalachian Regional Commission Matching Funds: Included in the
10 above General Fund appropriation is $240,000 in fiscal year 2026-2027 and $232,500 in
11 fiscal year 2027-2028 for Area Development Districts to match increased Appalachian
12 Regional Commission grants.
13 (2) Kentucky Mountain Regional Recreation Authority: Included in the above
14 Restricted Funds appropriation is $1,500,000 in each fiscal year for the Kentucky
15 Mountain Regional Recreation Authority. Restricted Funds shall be transferred from the
16 Tourism, Arts and Heritage Cabinet from taxes collected pursuant to KRS 142.400(2).
17 (3) Area Development District Funding: Included in the above General Fund
18 appropriation is $3,824,700 in fiscal year 2026-2027 and $3,705,200 in fiscal year 2027-
19 2028 for the Joint Funding Administration Program in support of the area development
20 districts.
21 (4) Mary Kendall Homes and Gateway Juvenile Diversion: Included in the
22 above General Fund appropriation is $247,500 in fiscal year 2026-2027 and $239,800 in
23 fiscal year 2027-2028 for the support of the Mary Kendall Homes and $247,500 in fiscal
24 year 2026-2027 and $239,800 in fiscal year 2027-2028 for the support of Gateway
25 Juvenile Diversion.
26 (5) Local Government Operations: Notwithstanding KRS 65A.020(5)(a),
27 included in the above Restricted Funds appropriation is $2,000,000 in fiscal year 2026-
Page 8 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 2027 to support the operations of the Department for Local Government.
2 (6) Delta Regional Authority Matching Funds: Included in the above General
3 Fund appropriation is $240,000 in fiscal year 2026-2027 and $232,500 in fiscal year
4 2027-2028 for area development districts to match increased Delta Regional Authority
5 grants.
6 10. LOCAL GOVERNMENT ECONOMIC ASSISTANCE FUND
7 2026-27 2027-28
8 General Fund 27,926,700 25,211,600
9 (1) Allocation of the Local Government Economic Assistance Fund:
10 Notwithstanding KRS 42.470(1)(a), 70 percent of moneys in the Local Government
11 Economic Assistance Fund shall be distributed to each coal producing county on the
12 basis of the ratio of coal severed in each respective county to the coal severed statewide.
13 Notwithstanding KRS 42.470(1)(c), no allocation shall be distributed to non-coal
14 producing counties.
15 (2) Coal Haul Road System: Notwithstanding KRS 42.455(2), no funds
16 appropriated to the Local Government Economic Assistance Fund are required to be
17 spent on the coal haul road system.
18 (3) Jefferson County Mineral Severance: Notwithstanding KRS 42.450 to
19 42.495, all funds distributed to Jefferson County in accordance with KRS 42.470(2)(a)
20 shall be used by the Jefferson County Fiscal Court for Thrive By Five Louisville.
21 11. LOCAL GOVERNMENT ECONOMIC DEVELOPMENT FUND
22 2026-27 2027-28
23 General Fund 20,494,800 15,059,100
24 (1) Coal Severance Tax Transfers: Notwithstanding KRS 42.450 to 42.495, 70
25 percent of the severance and processing taxes on coal collected annually, except items
26 described in subsection (2) below, shall be transferred to the Local Government
27 Economic Development Fund. Notwithstanding KRS 42.450 to 42.495, 30 percent of the
Page 9 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 severance and processing taxes on coal collected annually, except items described in
2 subsection (2) below, shall be transferred to the Local Government Economic Assistance
3 Fund. Transfers to the Local Government Economic Development Fund and the Local
4 Government Economic Assistance Fund shall be made quarterly in July, October,
5 January, and April based upon actual revenues from the prior quarter.
6 (2) Coal Severance Tax Collections Calculations and Transfers: The above
7 appropriations from the General Fund are based on the official estimate presented by the
8 Office of State Budget Director. Notwithstanding KRS 42.450 to 42.495, coal severance
9 tax collections during the 2026-2028 fiscal biennium shall first be allocated to the
10 following programs or purposes on a quarterly basis:
11 (a) Department for Local Government: An annual appropriation of $669,700 in
12 each fiscal year is appropriated as General Fund moneys to the Department for Local
13 Government budget unit for Local Government Economic Development Fund and Local
14 Government Economic Assistance Fund project administration costs;
15 (b) Debt Service: An annual appropriation of 100 percent of the debt service
16 necessary to support bonds authorized in 2003 Ky. Acts ch. 156, 2005 Ky. Acts ch. 173,
17 2006 Ky. Acts ch. 252, 2008 Ky. Acts ch. 127, and 2010 (1st Extra. Sess.) Ky. Acts ch. 1,
18 in the amount of $17,747,700 in fiscal year 2026-2027 and $16,786,700 in fiscal year
19 2027-2028 is appropriated for that purpose;
20 (c) Osteopathic Medicine Scholarship Program: Notwithstanding KRS
21 164.7891(11)(b), no transfers shall be made to the Osteopathic Medicine Scholarship
22 Program within the Kentucky Higher Education Assistance Authority;
23 (d) Pharmacy Scholarships: Notwithstanding KRS 164.7890(11)(c), no transfers
24 shall be made to the Coal County Pharmacy Scholarship Program within the Kentucky
25 Higher Education Assistance Authority; and
26 (e) Kentucky Coal Fields Endowment Authority: Notwithstanding KRS
27 42.453(3), no transfers shall be made to the Kentucky Coal Field Endowment Authority.
Page 10 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (3) Allocation of the Local Government Economic Development Fund:
2 Notwithstanding KRS 42.4592(1), 50 percent of Local Government Economic
3 Development Fund moneys shall be allocated in accordance with KRS 42.4592(1)(a), and
4 50 percent shall be allocated in accordance with KRS 42.4592(1)(b).
5 (4) Use of the Local Government Economic Development Fund:
6 Notwithstanding KRS 42.450 to 42.495, all funds appropriated to Local Government
7 Economic Development Fund Single-County Accounts shall be allocated to projects with
8 the concurrence of the respective county judge/executive, state senator(s), and state
9 representative(s) of each county. If concurrence is not achieved, the fiscal court of each
10 county may apply for grants through the Department for Local Government pursuant to
11 KRS 42.4588.
12 12. AREA DEVELOPMENT FUND
13 (1) Area Development Fund: Notwithstanding KRS 42.345 to 42.370 and
14 48.185, or any statute to the contrary, no funding is provided for the Area Development
15 Fund.
16 (2) Area Development District Flexibility: Notwithstanding KRS 42.350(2) and
17 provided that sufficient funds are maintained in the Joint Funding Agreement program to
18 meet the match requirements for the Economic Development Administration grants,
19 Community Development Block Grants, Appalachian Regional Commission grants, or
20 any federal program where the Joint Funding Agreement funds are utilized to meet
21 nonfederal match requirements, an area development district with authorization from its
22 Board of Directors may request approval to transfer funding between the Area
23 Development Fund and the Joint Funding Agreement Program from the Commissioner of
24 the Department for Local Government.
25 13. REGIONAL DEVELOPMENT AGENCY ASSISTANCE FUND
26 2026-27 2027-28
27 Restricted Funds 6,000,000 6,000,000
Page 11 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 14. EXECUTIVE BRANCH ETHICS COMMISSION
2 2026-27 2027-28
3 General Fund 667,200 661,500
4 Restricted Funds 799,100 795,300
5 TOTAL 1,466,300 1,456,800
6 (1) Use of Restricted Funds: All penalties collected or received by the Executive
7 Branch Ethics Commission shall be deposited in the State Treasury and credited to a trust
8 and agency fund account to the credit of the Commission to be used by the Commission
9 for the cost of conducting administrative hearings pursuant to KRS Chapter 13B.
10 Notwithstanding KRS 45.229, these funds shall not lapse and shall carry forward.
11 15. SECRETARY OF STATE
12 2026-27 2027-28
13 Restricted Funds 6,669,600 6,758,200
14 (1) Use of Restricted Funds: Notwithstanding KRS 14.140(1) and (3), the above
15 Restricted Funds may be used for the continuation of current activities within the Office
16 of the Secretary of State.
17 (2) Salary Increment: Notwithstanding KRS 64.480(2), the increment provided
18 on the base salary of the Secretary of State shall be the same as that provided for eligible
19 state employees in Part IV of this Act.
20 16. BOARD OF ELECTIONS
21 2026-27 2027-28
22 General Fund 7,710,600 7,543,100
23 Restricted Funds 111,800 106,700
24 Federal Funds 1,829,800 1,829,800
25 TOTAL 9,652,200 9,479,600
26 (1) Cost of Elections: Up to $100,000 of costs associated with special elections,
27 KRS 117.345(2) costs associated with additional precincts with a voting machine, KRS
Page 12 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 117.343 costs for additional registered voters, and KRS 116.145 costs for additional new
2 registered voters shall be deemed a necessary government expense and shall be paid from
3 the General Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund
4 Account (KRS 48.705). Any reimbursements authorized as a necessary government
5 expense according to the above provisions shall be at the same rates as those established
6 by the State Board of Elections.
7 17. REGISTRY OF ELECTION FINANCE
8 2026-27 2027-28
9 General Fund 1,811,300 1,845,600
10 18. ATTORNEY GENERAL
11 2026-27 2027-28
12 General Fund (Tobacco) 150,000 150,000
13 General Fund 47,464,000 44,874,100
14 Restricted Funds 82,805,700 82,464,900
15 Federal Funds 66,540,000 63,655,400
16 TOTAL 196,959,700 191,144,400
17 (1) State Enforcement: Notwithstanding KRS 248.654 and 248.703(4), included
18 in the above General Fund (Tobacco) appropriation is $150,000 in each fiscal year for the
19 state’s diligent enforcement of noncompliant nonparticipating manufacturers.
20 (2) Expert Witnesses: In addition to such funds as may be appropriated, the
21 Office of the Attorney General and the Unified Prosecutorial System, on behalf of the
22 Commonwealth's Attorneys, may request from the Finance and Administration Cabinet,
23 as a necessary government expense, such funds as may be necessary for expert witnesses.
24 Upon justification of the request, the Finance and Administration Cabinet shall provide
25 up to $3,000,000 for the 2026-2028 fiscal biennium for this purpose to the Office of the
26 Attorney General and the Unified Prosecutorial System from the General Fund Surplus
27 Account (KRS 48.700) or the Budget Reserve Trust Fund Account (KRS 48.705).
Page 13 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Without charge, the Department of Insurance shall provide the Office of the Attorney
2 General any available information to assist in the preparation of a rate hearing pursuant to
3 KRS 304.17A-095. Expenditures under this subsection shall be reported to the Interim
4 Joint Committee on Appropriations and Revenue by August 1 of each year.
5 (3) Annual and Sick Leave Service Credit: Notwithstanding any statutory or
6 regulatory restrictions to the contrary, any former employee of the Unified Prosecutorial
7 System who has been appointed to a permanent full-time position under KRS Chapter
8 18A shall be credited annual and sick leave based on service credited under the Kentucky
9 Retirement Systems solely for the purpose of computation of sick and annual leave. This
10 provision shall only apply to any new appointment or current employee as of July 1,
11 1998.
12 (4) Operations of the Office of the Attorney General: Notwithstanding KRS
13 367.478(2), 367.805(3), and 367.905(5), funds may be expended in support of the
14 operations of the Office of the Attorney General.
15 (5) Legal Services Contracts: The Office of the Attorney General may present
16 proposals to state agencies specifying legal work that is presently accomplished through
17 personal service contracts that indicate the Office of the Attorney General's capacity to
18 perform the work at a lesser cost. State agencies may agree to make arrangements with
19 the Office of the Attorney General to perform the legal work and compensate the Office
20 of the Attorney General for the legal services.
21 (6) Civil Action Representation: To ensure adequate representation of the
22 interest of the Commonwealth and to protect the financial condition of the Kentucky
23 Retirement Systems, it has been determined that it is necessary to allow the Attorney
24 General appropriate authority to engage private lawyers as co-counsel in Franklin Circuit
25 Court Civil Action Nos. 17-CI-01348 and 20-CI-00590. Due to the highly complex and
26 specialized nature of that litigation, KRS Chapter 45A, et seq. would prevent the
27 Attorney General from engaging counsel of his choice. Accordingly, to protect the
Page 14 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 interest of the Commonwealth, and notwithstanding the requirements of KRS Chapter
2 45A, et seq., which are hereby waived in with respect to the Attorney General retaining
3 private lawyers to prosecute Civil Action Nos. 17-CI-01348 and 20-CI-00590, and any
4 other civil action regarding the same subject matter or seeking the same relief as Civil
5 Action Nos. 17-CI-0138 and 20-CI-00590, the Attorney General is vested with the
6 authority to hire and pay counsel of his choice on any contractual basis the Attorney
7 General deems advisable.
8 (7) Salary Increment: Notwithstanding KRS 64.480(2), the increment provided
9 on the base salary of the Attorney General shall be the same as that provided for eligible
10 state employees in Part IV of this Act.
11 (8) Office of Medicaid Fraud and Abuse Control: Included in the above
12 appropriations is $1,278,700 in General Fund and $801,000 in Federal Funds in fiscal
13 year 2026-2027 and $1,193,700 in General Fund and $546,000 in Federal Funds in fiscal
14 year 2027-2028 to support the Office of Medicaid Fraud and Abuse Control. The Office
15 of the Attorney General shall submit an annual report beginning December 1, 2026, to the
16 Interim Joint Committee on Appropriations and Revenue. The report shall include the
17 number of reported fraud incidents, the types of fraud reported, the number of reported
18 fraud incidents investigated by the office, the monetary amount involved in the fraudulent
19 activity, and the resolution of the reported fraud incidents.
20 (9) Administrative Hearings: Included in the above appropriations is
21 $3,241,200 in Restricted Funds and $1,939,700 in Federal Funds in each fiscal year to
22 support the cost of Administrative Hearings held by the Office of the Attorney General
23 for the Cabinet for Health and Family Services. The Attorney General shall bill the
24 Cabinet for Health and Family Services on a quarterly basis for the cost, not to exceed
25 $5,180,900 each fiscal year.
26 (10) Training Incentive Payments: Notwithstanding KRS 15.460(1), included in
27 the above Restricted Funds appropriation is $4,653 in fiscal year 2026-2027 and $4,746
Page 15 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 in fiscal year 2027-2028 for each participant for training incentive payments.
2 (11) Body Armor Grant Program: Included in the above Restricted Funds
3 appropriation is $10,000,000 in each fiscal year of the 2026-2028 biennium for grants to
4 law enforcement and first responders for the purchase of body armor, duty weapons,
5 ammunition, electronic-control devices, and body-worn cameras. Notwithstanding KRS
6 15.430 and 15.470, excess Restricted Funds from the Department of Criminal Justice
7 Training shall be transferred to the Attorney General for this purpose.
8 (12) Child Support Services: Included in the above appropriation is $5,380,000 in
9 General Fund and $10,443,500 in Federal Funds in fiscal year 2026-2027 and $3,880,000
10 in General Fund and $7,531,800 in Federal Funds in fiscal year 2027-2028 to support
11 child support services.
12 (13) Create Digital Forensics Lab: Included in the above General Fund
13 appropriation is $905,100 in fiscal year 2026-2027 and $587,100 in fiscal year 2027-2028
14 to create a new computer forensics laboratory in Western Kentucky.
15 (14) Upgrade Communications Equipment: Included in the above Restricted
16 Funds appropriation is $569,000 in fiscal year 2026-2027 to upgrade communications
17 equipment. Notwithstanding KRS 15.430 and 15.470, excess Restricted Funds from the
18 Department of Criminal Justice Training shall be transferred to the Attorney General for
19 this purpose.
20 (15) Data Privacy Protections: Included in the above appropriations is sufficient
21 funding to implement and carry out the provisions of 2024 Ky. Acts ch. 72.
22 (16) Opioid Abatement Trust Fund Report: The General Assembly recognizes
23 the need for clear and coordinated planning to deliver effective and outcome driven
24 substance use disorder (SUD) treatment and recovery services and the opportunities to
25 achieve that goal through a strategic leveraging of Kentucky’s opioid abatement
26 settlement funds. Beginning November 1, 2026, the Office of the Attorney General shall
27 provide a quarterly report to the Legislative Research Commission on the SUD activities
Page 16 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 undertaken with the opioid abatement settlement funds as authorized pursuant to KRS
2 15.291 to 15.295. The report shall include:
3 (a) Grants made by the Kentucky Opioid Abatement Advisory Commission
4 (commission) established in KRS 15.291 to subrecipients;
5 (b) Attestations made to the commission by any county, consolidated local
6 government, urban-county government, or city in receipt of opioid abatement settlement
7 funds as required under KRS 15.293(4)(c)2.a.; and
8 (c) Current and future anticipated settlements realized as a result of ongoing
9 opioid litigation.
10 19. UNIFIED PROSECUTORIAL SYSTEM
11 (1) Prosecutors Advisory Council Administrative Functions: The Prosecutors
12 Advisory Council shall approve compensation for employees of the Unified Prosecutorial
13 System subject to the appropriations in this Act.
14 a. Commonwealth's Attorneys
15 2026-27 2027-28
16 General Fund 83,479,100 84,313,500
17 Restricted Funds 6,488,000 6,124,900
18 Federal Funds 359,200 359,200
19 TOTAL 90,326,300 90,797,600
20 (1) Salary Increment: Notwithstanding KRS 15.755, no increment shall be
21 provided on the base salary of the Commonwealth's Attorneys and staff.
22 (2) Rocket Docket Program: Included in the above General Fund appropriation
23 is $1,416,700 in each fiscal year to support the Rocket Docket Program.
24 (3) Salary Compensation Standardization: Included in the above General Fund
25 appropriation is $1,758,300 in fiscal year 2026-2027 and $2,250,000 in fiscal year 2027-
26 2028 to support the Salary Compensation Standardization for Commonwealth’s
27 Attorneys.
Page 17 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (4) Cloud Storage Cost: Included in the above Restricted Funds appropriation is
2 $794,000 in fiscal year 2026-2027 and $409,000 in fiscal year 2027-2028 for additional
3 cloud storage costs for Commonwealth's Attorneys.
4 b. County Attorneys
5 2026-27 2027-28
6 General Fund 86,248,300 87,108,900
7 Restricted Funds 901,200 905,800
8 Federal Funds 115,100 115,100
9 TOTAL 87,264,600 88,129,800
10 (1) Salary Increment: Notwithstanding KRS 15.765, no increment shall be
11 provided on the base salary of the County Attorneys and staff.
12 (2) County Attorney Retirement Costs: Notwithstanding KRS 61.5991,
13 included in the above General Fund appropriation is $1,590,600 in each fiscal year to
14 support each County Attorney's Office's share of the anticipated increase over each
15 County Attorney’s Office’s fiscal year 2019-2020 baseline contribution as adjusted and
16 posted under the 2026 Budget Bills tile on the Legislative Research Commission's
17 website.
18 (3) Rocket Docket Program: Included in the above General Fund appropriation
19 is $549,800 in each fiscal year to support the Rocket Docket Program.
20 (4) Salary Compensation Standardization: Included in the above General Fund
21 appropriation is $2,455,500 in fiscal year 2026-2027 and $2,864,500 in fiscal year 2027-
22 2028 to support the Salary Compensation Standardization for County Attorneys.
23 TOTAL - UNIFIED PROSECUTORIAL SYSTEM
24 2026-27 2027-28
25 General Fund 169,727,400 171,422,400
26 Restricted Funds 7,389,200 7,030,700
27 Federal Funds 474,300 474,300
Page 18 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 TOTAL 177,590,900 178,927,400
2 20. TREASURY
3 2026-27 2027-28
4 General Fund 3,986,300 3,958,200
5 Restricted Funds 2,086,600 2,058,600
6 Federal Funds 1,206,700 1,206,700
7 TOTAL 7,279,600 7,223,500
8 (1) Unclaimed Property Fund: Included in the above Restricted Funds
9 appropriation is $2,086,600 in fiscal year 2026-2027 and $2,058,600 in fiscal year 2027-
10 2028 from the Unclaimed Property Fund to provide funding for services performed by
11 the Unclaimed Property Division of the Department of the Treasury.
12 (2) Salary Increment: Notwithstanding KRS 64.480(2), the increment provided
13 on the base salary of the State Treasurer shall be the same as that provided for eligible
14 state employees in Part IV of this Act.
15 (3) Operations of the Department of the Treasury: Included in the above
16 General Fund appropriation is $300,000 in each fiscal year to support operations.
17 21. AGRICULTURE
18 2026-27 2027-28
19 General Fund (Tobacco) 35,426,900 32,739,700
20 General Fund 20,949,800 22,945,700
21 Restricted Funds 14,505,100 12,323,200
22 Federal Funds 12,173,200 12,173,200
23 TOTAL 83,055,000 80,181,800
24 (1) Use of Restricted Funds: Notwithstanding KRS 217.570, 217B.580, and
25 438.335, included in the above Restricted Funds appropriation is $2,000,000 in fiscal
26 year 2026-2027 to support the operations of the Department of Agriculture.
27 (2) Farms to Food Banks: Included in the above General Fund (Tobacco)
Page 19 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 appropriation is $886,500 in fiscal year 2026-2027 and $819,300 in fiscal year 2027-2028
2 to support the Farms to Food Banks Program. The use of the moneys provided by this
3 appropriation shall be restricted to purchases of Kentucky-grown produce and protein
4 from Kentucky farmers who participate in the Farms to Food Banks Program.
5 (3) Kentucky Grape and Wine Council: Notwithstanding KRS 260.175(2), no
6 General Fund is provided for the Kentucky Small Farm Wineries Support Fund for use by
7 the Kentucky Grape and Wine Council.
8 (4) Counties Account: Notwithstanding KRS 248.703(1), included in the above
9 General Fund (Tobacco) appropriation is $11,777,900 in fiscal year 2026-2027 and
10 $10,884,600 in fiscal year 2027-2028 for the counties account as specified in KRS
11 248.703(1)(a).
12 (5) State Account: Notwithstanding KRS 248.703(1), included in the above
13 General Fund (Tobacco) appropriation is $21,876,000 in fiscal year 2026-2027 and
14 $20,216,500 in fiscal year 2027-2028 for the state account as specified in KRS
15 248.703(1)(b).
16 (6) Tobacco Settlement Funds - Allocations: Notwithstanding KRS 248.711(2),
17 and from the allocation provided therein, counties that are allocated in excess of $20,000
18 annually may provide up to four percent of the individual county allocation, not to exceed
19 $15,000 annually, to the county council in that county for administrative costs.
20 (7) Kentucky Rural Mental Health, Suicide Prevention, and Farm Safety
21 Program: Included in the above General Fund (Tobacco) appropriation is $886,500 in
22 fiscal year 2026-2027 and $819,300 in fiscal year 2027-2028 to support the Kentucky
23 Rural Mental Health, Suicide Prevention, and Farm Safety Program known as the Raising
24 Hope Initiative. The Department of Agriculture shall enhance awareness of the National
25 Suicide Prevention Lifeline (988) in rural communities in Kentucky, improve access to
26 information on rural mental health issues and available treatment services, provide
27 outreach, and provide other necessary services to improve the mental health outcomes of
Page 20 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 rural communities in Kentucky. The Farm Safety and Rural Health Division, at its
2 discretion, may receive, accept, and solicit grants, contributions of money, property,
3 labor, or other things of value from any governmental agency, individual, nonprofit
4 organization, or private business to be used for the Kentucky Rural Mental Health,
5 Suicide Prevention, and Farm Safety Program. The Department of Agriculture may
6 utilize up to $150,000 of the appropriation amount in each fiscal year for program
7 administration purposes. The Department of Agriculture shall coordinate with the Raising
8 Hope Initiative to take custody of and maintain any intellectual property assets that were
9 created or developed by any state agency in connection with the Raising Hope Initiative.
10 The Department of Agriculture’s Office of Agricultural Marketing shall submit a
11 comprehensive annual report to the Interim Joint Committee on Appropriations and
12 Revenue and the Tobacco Settlement Agreement Fund Oversight Committee no later
13 than November 1 of each fiscal year. At a minimum, the report shall include:
14 (a) An accounting of all expenditures by fund source;
15 (b) A detailed accounting of all administrative expenses;
16 (c) The total amount expended on grants, loans, and benefits;
17 (d) A detailed accounting of all expenses not otherwise classified;
18 (e) Identification of any unexpended funds and the reason why the funds were not
19 expended; and
20 (f) An explanation of how all expenditures align with program objectives.
21 The Division Director of the Farm Safety and Rural Health Division and the
22 Executive Director of the Kentucky Office of Agricultural Marketing shall provide a
23 program update to the Tobacco Settlement Agreement Fund Oversight Committee in
24 November of each fiscal year.
25 (8) Training Incentive Payments: Notwithstanding KRS 15.460(1), included in
26 the above Restricted Funds appropriation is $4,653 in fiscal year 2026-2027 and $4,746
27 in fiscal year 2027-2028 for each participant for training incentive payments.
Page 21 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (9) Salary Increment: Notwithstanding KRS 64.480(2), the increment provided
2 on the base salary of the Commissioner of Agriculture shall be the same as that provided
3 for eligible state employees in Part IV of this Act.
4 (10) Agricultural Economic Development: In accordance with KRS Chapter
5 154, the Secretary of the Cabinet for Economic Development shall coordinate with and
6 seek guidance from the Commissioner of the Department of Agriculture in considering
7 any projects for economic incentives related to agricultural economic development,
8 agribusiness, or production facilities of sustainable aviation fuel.
9 (11) County Fair Grants: Included in the above General Fund appropriation is
10 $720,000 in fiscal year 2026-2027 and $697,500 in fiscal year 2027-2028 to support
11 capital improvement grants to the Local Agricultural Fair Aid Program.
12 22. AUDITOR OF PUBLIC ACCOUNTS
13 2026-27 2027-28
14 General Fund 11,074,100 10,874,200
15 Restricted Funds 29,365,500 29,563,700
16 TOTAL 40,439,600 40,437,900
17 (1) Audit Services Contracts: Notwithstanding KRS 45.149, no state agency
18 shall enter into any contract with a nongovernmental entity for audit services unless the
19 Auditor of Public Accounts has declined in writing to perform the audit or has failed to
20 respond within 30 days of receipt of a written request for such services. The agency’s
21 request for audit services shall include a comprehensive statement of the scope and nature
22 of the proposed audit.
23 (2) Financial Audit Receipts: The Auditor of Public Accounts shall provide a
24 listing of fee receipts for all audits and special examinations, itemized by type, agency, or
25 unit of government, as well as billing methodology to the Interim Joint Committee on
26 Appropriations and Revenue by August 1 of each fiscal year.
27 (3) Salary Increment: Notwithstanding KRS 64.480(2), the increment provided
Page 22 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 on the base salary of the Auditor of Public Accounts shall be the same as that provided
2 for eligible state employees in Part IV of this Act.
3 (4) Ombudsman: Included in the above Restricted Funds appropriation is
4 $18,292,400 in each fiscal year to support the operation of the Commonwealth Office of
5 the Ombudsman within the Auditor of Public Accounts. The Auditor of Public Accounts
6 may bill the Cabinet for Health and Family Services for this amount on a prorated
7 monthly basis.
8 (5) Jefferson County Public Schools Audit: Notwithstanding KRS 45.229, any
9 portion of the General Fund appropriation balance from 2024 Ky. Acts ch. 175, Part I, A.,
10 22., (9) shall not lapse and shall carry forward.
11 (6) Kentucky Communications Network Authority and Kentucky Wired
12 Audit: Notwithstanding KRS 45.229, the General Fund appropriation balance from 2025
13 Ky. Acts ch. 117 sec. 41 shall not lapse and shall carry forward.
14 (7) Artificial Intelligence Initiative: Included in the above Restricted Funds
15 appropriation is $639,500 in fiscal year 2026-2027 and $439,500 in fiscal year 2027-2028
16 as a one-time allocation to support the purchase of new artificial intelligence auditing
17 software.
18 (8) Audit Billings: Within a reasonable time after the Auditor of Public Accounts
19 has completed and distributed a report of a state entity audit, examination, investigation,
20 or any other action resulting in a report relating to a state entity, the Auditor of Public
21 Accounts shall bill the audited, examined, investigated, or acted upon state entity for the
22 Auditor's expenses incurred related to that audit, examination, investigation, or other
23 action, and a copy of the bill shall be forwarded to the Secretary of the Finance and
24 Administration Cabinet. If the state entity, within 60 days following receipt of said bill,
25 determines the charge to be excessive or otherwise improper, it shall submit its objection
26 to the Secretary of the Finance and Administration Cabinet and to the State Treasurer for
27 resolution of the controversy in accordance with this subsection. If the amount billed has
Page 23 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 not been paid within 60 days from the date of billing, and no objection has been filed, the
2 Auditor shall notify the Secretary of the Finance and Administration Cabinet who shall
3 cause said amount to be paid. When an objection to the bill has been filed with the
4 Secretary of the Finance and Administration Cabinet and the State Treasurer, the amount
5 found to be equitable and just shall become payable immediately upon the entry of the
6 final decision. Any controversy over the amount of the bill for the actual expenses
7 incurred shall be submitted by the state entity to the Secretary of the Finance and
8 Administration Cabinet and the State Treasurer for a decision as to the proper amount. In
9 the event these two arbitrators fail to agree, then the controversy shall be submitted to the
10 Attorney General, whose decision shall be final.
11 (9) School Board Audits: The Auditor of Public Accounts shall perform both
12 random and targeted audits of school district finances to ensure compliance with
13 Department of Education established policies, procedures, and Kentucky Revised
14 Statutes. Notwithstanding KRS 156.265(4), the actual expense of any audit shall be borne
15 by the district board of education.
16 23. PERSONNEL BOARD
17 2025-26 2026-27 2027-28
18 General Fund -0- 11,400 10,200
19 Restricted Funds 25,000 1,394,700 1,149,400
20 TOTAL 25,000 1,406,100 1,159,600
21 (1) Hearing Officer Hourly Rate: Included in the above Restricted Funds
22 appropriation is $80,000 in fiscal year 2026-2027 and $50,000 in fiscal year 2027-2028
23 to increase the hearing officer hourly rate from $125 to $200 per hour.
24 (2) Equipment Upgrade: Included in the above Restricted Funds appropriation
25 is $60,000 in fiscal year 2026-2027 to upgrade the video and audio equipment in the
26 hearing rooms.
27 (3) Case Management Software: Included in the above Restricted Funds
Page 24 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 appropriation is $25,000 in fiscal year 2025-2026, $100,000 in fiscal year 2026-2027, and
2 $50,000 in fiscal year 2027-2028 to purchase a new case management system for the
3 Board’s operations.
4 (4) Soundproofing: Included in the above Restricted Funds appropriation is
5 $120,000 in fiscal year 2026-2027 to purchase soundproofing for the boardroom and two
6 hearing rooms.
7 24. KENTUCKY PUBLIC PENSIONS AUTHORITY
8 2026-27 2027-28
9 Restricted Funds 128,315,500 51,426,200
10 (1) Kentucky Employees Retirement System Nonhazardous Pension Fund:
11 Pursuant to KRS 42.205, included in the above Restricted Funds appropriation is
12 $78,504,500 in fiscal year 2026-2027, to be applied to the unfunded pension liability of
13 the Kentucky Employees Retirement System Nonhazardous pension fund.
14 (2) Pension Administration System Modernization: Included in the above
15 Restricted Funds appropriation is $750,000 in fiscal year 2026-2027 and $1,500,000 in
16 fiscal year 2027-2028 to support the modernization of the pension administration system.
17 25. OCCUPATIONAL AND PROFESSIONAL BOARDS AND COMMISSIONS
18 a. Accountancy
19 2026-27 2027-28
20 Restricted Funds 738,700 749,900
21 b. Certification of Alcohol and Drug Counselors
22 2026-27 2027-28
23 Restricted Funds 405,400 405,400
24 c. Applied Behavior Analysis Licensing
25 2026-27 2027-28
26 Restricted Funds 70,800 70,800
27 d. Architects
Page 25 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 2026-27 2027-28
2 Restricted Funds 485,500 493,200
3 e. Certification for Professional Art Therapists
4 2026-27 2027-28
5 Restricted Funds 11,200 11,200
6 f. Barbering
7 2026-27 2027-28
8 Restricted Funds 510,900 519,200
9 g. Chiropractic Examiners
10 2026-27 2027-28
11 Restricted Funds 301,900 301,900
12 h. Dentistry
13 2026-27 2027-28
14 Restricted Funds 1,000,000 1,012,900
15 i. Licensed Diabetes Educators
16 2026-27 2027-28
17 Restricted Funds 29,300 29,300
18 j. Licensure and Certification for Dietitians and Nutritionists
19 2026-27 2027-28
20 Restricted Funds 94,100 94,100
21 k. Embalmers and Funeral Directors
22 2026-27 2027-28
23 Restricted Funds 642,300 652,000
24 l. Licensure for Professional Engineers and Land Surveyors
25 2026-27 2027-28
26 Restricted Funds 2,239,500 2,270,500
27 m. Certification of Fee-Based Pastoral Counselors
Page 26 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 2026-27 2027-28
2 Restricted Funds 3,600 3,600
3 n. Registration for Professional Geologists
4 2026-27 2027-28
5 Restricted Funds 109,000 109,000
6 o. Hairdressers and Cosmetologists
7 2026-27 2027-28
8 Restricted Funds 3,605,900 2,657,900
9 p. Specialists in Hearing Instruments
10 2026-27 2027-28
11 Restricted Funds 77,900 77,900
12 q. Interpreters for the Deaf and Hard of Hearing
13 2026-27 2027-28
14 Restricted Funds 51,800 51,800
15 r. Examiners and Registration of Landscape Architects
16 2026-27 2027-28
17 Restricted Funds 92,800 95,300
18 s. Licensure of Marriage and Family Therapists
19 2026-27 2027-28
20 Restricted Funds 141,300 141,300
21 t. Licensure for Massage Therapy
22 2026-27 2027-28
23 Restricted Funds 150,700 150,700
24 u. Medical Imaging and Radiation Therapy
25 2026-27 2027-28
26 Restricted Funds 512,500 521,000
27 v. Medical Licensure
Page 27 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 2026-27 2027-28
2 Restricted Funds 4,697,000 4,751,300
3 w. Nursing
4 2026-27 2027-28
5 Restricted Funds 10,879,800 11,069,400
6 x. Licensure for Nursing Home Administrators
7 2026-27 2027-28
8 Restricted Funds 101,100 101,100
9 y. Licensure for Occupational Therapy
10 2026-27 2027-28
11 Restricted Funds 241,600 241,600
12 z. Ophthalmic Dispensers
13 2026-27 2027-28
14 Restricted Funds 71,200 71,200
15 aa. Optometric Examiners
16 2026-27 2027-28
17 Restricted Funds 312,700 316,500
18 ab. Pharmacy
19 2026-27 2027-28
20 Restricted Funds 3,255,300 3,308,600
21 ac. Physical Therapy
22 2026-27 2027-28
23 Restricted Funds 753,500 766,100
24 ad. Podiatry
25 2026-27 2027-28
26 Restricted Funds 58,100 58,100
27 ae. Private Investigators
Page 28 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 2026-27 2027-28
2 Restricted Funds 113,700 113,700
3 af. Licensed Professional Counselors
4 2026-27 2027-28
5 Restricted Funds 460,800 460,800
6 ag. Prosthetics, Orthotics, and Pedorthics
7 2026-27 2027-28
8 Restricted Funds 46,300 46,300
9 ah. Emergency Medical Services
10 2026-27 2027-28
11 General Fund 2,652,800 2,684,600
12 Restricted Funds 3,055,100 3,057,800
13 Federal Funds 345,200 348,500
14 TOTAL 6,053,100 6,090,900
15 ai. Examiners of Psychology
16 2026-27 2027-28
17 Restricted Funds 431,000 431,000
18 aj. Respiratory Care
19 2026-27 2027-28
20 Restricted Funds 345,400 350,800
21 ak. Social Work
22 2026-27 2027-28
23 Restricted Funds 653,500 663,700
24 al. Speech-Language Pathology and Audiology
25 2026-27 2027-28
26 Restricted Funds 225,500 225,500
27 am. Veterinary Examiners
Page 29 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 2025-26 2026-27 2027-28
2 Restricted Funds 62,000 816,900 813,600
3 TOTAL - OCCUPATIONAL AND PROFESSIONAL BOARDS AND
4 COMMISSIONS
5 2025-26 2026-27 2027-28
6 General Fund -0- 2,652,800 2,684,600
7 Restricted Funds 62,000 37,793,600 37,266,000
8 Federal Funds -0- 345,200 348,500
9 TOTAL 62,000 40,791,600 40,299,100
10 26. KENTUCKY RIVER AUTHORITY
11 2026-27 2027-28
12 General Fund 394,300 389,900
13 Restricted Funds 6,076,400 5,951,500
14 Federal Funds 4,300 -0-
15 TOTAL 6,475,000 6,341,400
16 27. SCHOOL FACILITIES CONSTRUCTION COMMISSION
17 2026-27 2027-28
18 General Fund 104,962,400 107,195,800
19 (1) Debt Service: Included in the above General Fund appropriation is $983,000
20 in fiscal year 2026-2027 and $1,966,000 in fiscal year 2027-2028 for new debt service to
21 support new bonds as set forth in Part II, Capital Projects Budget, of this Act.
22 (2) Additional Offers of Assistance: Notwithstanding KRS 157.611 to 157.665,
23 the School Facilities Construction Commission is authorized to make an additional
24 $40,000,000 in offers of assistance during the 2026-2028 fiscal biennium in anticipation
25 of debt service availability during the 2028-2030 fiscal biennium. No bonded
26 indebtedness based on the above amount is to be incurred during the 2026-2028 fiscal
27 biennium.
Page 30 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (3) Use of Restricted Funds for Debt Service: Notwithstanding KRS 157.618,
2 Restricted Funds in the amount of $8,453,400 in fiscal year 2026-2027 are hereby
3 transferred to the Debt Service Fund to pay debt service on previously issued bonds.
4 (4) Offers of Assistance Eligibility Requirements: Notwithstanding KRS
5 157.611 to 157.635 and 750 KAR 1:010, the School Facilities Construction Commission
6 shall not make an offer of assistance to any local school district during the 2026-2028
7 fiscal biennium until the information required under Part I., C., 2., (9) of this Act has
8 been received. A local school district shall not be eligible for an offer of assistance during
9 the 2026-2028 fiscal biennium unless the district’s facilities have been evaluated in the
10 Kentucky Facilities Inventory and Classification System (KFICS).
11 28. TEACHERS' RETIREMENT SYSTEM
12 2026-27 2027-28
13 General Fund 1,225,339,000 1,277,624,600
14 Restricted Funds 21,915,700 23,008,100
15 TOTAL 1,247,254,700 1,300,632,700
16 (1) Dependent Subsidy for All Retirees under age 65: Pursuant to KRS
17 161.675(4), health insurance supplement payments made by the retirement system shall
18 not exceed the amount of the single coverage insurance premium.
19 (2) Retiree Health Insurance: Pursuant to KRS 161.550(2)(b) and
20 notwithstanding any statute to the contrary, included in the above General Fund
21 appropriation is $96,606,400 and excess state funding for retiree health insurance in the
22 amount of $3,993,600 from fiscal years 2022-2023, 2023-2024, and 2024-2025 totaling
23 $100,600,000 in fiscal year 2026-2027 and $112,400,000 in fiscal year 2027-2028 to
24 support the state's contribution for the cost of retiree health insurance for members not
25 eligible for Medicare who have retired on or after July 1, 2010. Notwithstanding KRS
26 161.675, the Teachers' Retirement System Board of Trustees shall provide health
27 insurance supplement payments towards the cost of the single coverage insurance
Page 31 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 premium based on age and years of service credit of eligible recipients of a retirement
2 allowance, the cost of which shall be paid from the Medical Insurance Fund.
3 Notwithstanding KRS 161.675, the Teachers' Retirement System Board of Trustees shall
4 authorize eligible recipients of a retirement allowance from the Teachers' Retirement
5 System who are less than age 65 to be included in the state-sponsored health insurance
6 plan that is provided to active teachers and state employees under KRS 18A.225.
7 Notwithstanding KRS 161.675(4)(a), the contribution paid by retirees who are less than
8 age 65 who qualify for the maximum health insurance supplement payment for single
9 coverage shall be no more than the sum of (a) the employee contribution paid by active
10 teachers and state employees for a similar plan, and (b) the standard Medicare Part B
11 premium as determined by the Centers for Medicare and Medicaid Services.
12 Notwithstanding KRS 161.675(4)(a), the contribution paid by retirees who are less than
13 age 65 who do not qualify for the maximum health insurance supplement payment for
14 single coverage shall be determined by the same graduated formula used by the Teachers'
15 Retirement System for Plan Year 2026.
16 (3) Medical Insurance Fund Employee Contributions: Notwithstanding KRS
17 161.540(1), the employee contribution to the Medical Insurance Fund shall not be
18 changed in each fiscal year.
19 (4) Sick Leave Liability Reporting: The Teachers' Retirement System shall
20 provide a report on the full actuarial cost of member sick leave, including the total
21 actuarial liabilities of the sick leave and the total actuarial costs to annually finance the
22 sick leave as a percentage of payroll and in total dollars by fund source, to the Public
23 Pension Oversight Board no later than December 1, 2027.
24 (5) Actuarially Determined Employer Contribution: Included in the above
25 General Fund appropriation is $1,076,889,000 in fiscal year 2026-2027 and
26 $1,160,459,000 in fiscal year 2027-2028 to provide the full actuarially determined
27 employer contribution. The Teachers' Retirement System shall provide a report on the
Page 32 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 actuarially determined employer contribution to the Public Pension Oversight Board no
2 later than December 1, 2027.
3 (6) Update and Maintain Pathway System: Included in the above Restricted
4 Funds appropriation is $900,000 in fiscal year 2026-2027 and $1,700,000 in fiscal year
5 2027-2028 to update and maintain the Pathway system.
6 (7) SEEK Employer Contribution Shortfall: Included in the above General
7 Fund appropriation is $47,220,600 in fiscal year 2026-2027 for the deficit between
8 estimated SEEK employer match and the actual SEEK employer match required during
9 the 2024-2026 fiscal biennium.
10 (8) Legacy Benefits Costs: Included in the above General Fund appropriation is
11 $191,800 in fiscal year 2026-2027 and $334,400 in fiscal year 2027-2028 to provide
12 funds for actuarially determined increases in legacy benefit enhancements.
13 29. APPROPRIATIONS NOT OTHERWISE CLASSIFIED
14 2026-27 2027-28
15 General Fund 16,750,300 16,750,300
16 (1) Repayment of Awards or Judgments: Included in the above General Fund
17 appropriation is $245,200 in each fiscal year for the repayment of awards or judgments
18 made by the Office of Claims and Appeals against departments, boards, commissions,
19 and other agencies funded with appropriations out of the General Fund. However, awards
20 under $5,000 shall be paid from funds available for the operations of the agency.
21 (2) Guardian Ad Litem Fees: Included in the above General Fund appropriation
22 is $12,348,300 in each fiscal year for fees to be paid to each guardian ad litem appointed
23 by the court pursuant to KRS 26A.140(1)(a), 199.502(3)(b), 202B.210, 311.732(3)(c),
24 403.100, 403.727(2), 456.035(2), 620.100, 625.0405, 625.041, and 625.080. The fee shall
25 be fixed by the court and shall not exceed $500.
26 (3) Reissuance of Uncashed Checks: Included in the above General Fund
27 appropriation is $2,461,800 in each fiscal year to reissue checks written by the State
Page 33 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Treasurer and not cashed within the statutory period pursuant to KRS 41.370.
2 (4) Police Officer, Firefighter, and Active Duty National Guard and Reserve
3 Survivor Benefits: Included in the above General Fund appropriation is $690,900 in
4 each fiscal year for payment of benefits for survivors of state and local police officers,
5 firefighters, and active duty National Guard and Reserve members pursuant to KRS
6 61.315 and for the cost of insurance premiums for firefighters pursuant to KRS 95A.070.
7 (5) Attorney General Expense: Included in the above General Fund
8 appropriation is $370,700 in each fiscal year for expenses associated with representation
9 of the Commonwealth and payments for expert witnesses pursuant to KRS 12.215.
10 (6) Prior Year Claims: Included in the above General Fund appropriation is
11 $253,000 in each fiscal year to allow the Finance and Administration Cabinet to pay any
12 valid expense incurred during the two preceding fiscal years pursuant to KRS 45.231.
13 (7) Involuntary Commitments: Included in the above General Fund
14 appropriation is $63,400 in each fiscal year to provide funding for legal representation for
15 persons requiring involuntary hospitalization pursuant to KRS 202B.210.
16 (8) Frankfort In Lieu of Taxes: Included in the above General Fund
17 appropriation is $200,000 in each fiscal year for payment to the City of Frankfort in lieu
18 of property taxes normally owed annually pursuant to KRS 45.021.
19 (9) Medical Malpractice Liability Insurance Reimbursement: Included in the
20 above General Fund appropriation is $77,900 in each fiscal year to reimburse clinics and
21 small, regional health care providers for medical malpractice insurance premiums
22 pursuant to KRS 304.40-075.
23 (10) Blanket Employee Bonds: Included in the above General Fund appropriation
24 is $39,100 in each fiscal year to cover damages the Commonwealth might incur as the
25 result of a criminal action by an employee when securing bonds.
26 (11) Funding Sources for Appropriations Not Otherwise Classified: Funds
27 required to pay the costs of items included within Appropriations Not Otherwise
Page 34 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Classified are appropriated. Any required expenditure over the above amounts up to
2 $8,249,700 in each fiscal year shall be paid first from the General Fund Surplus Account
3 (KRS 48.700), if available, or from any available balance in either the Judgments budget
4 unit or the Budget Reserve Trust Fund Account (KRS 48.705), subject to the conditions
5 and procedures provided in this Act.
6 The above appropriation is for the payment of Attorney General Expense, Office of
7 Claims and Appeals awards, Guardian Ad Litem, Prior Year Claims, Unredeemed
8 Checks Refunded, Involuntary Commitments - ICF/MR, Frankfort in Lieu of Taxes,
9 Frankfort Cemetery, Police Officer, Firefighter, and National Guard and Reserve
10 Survivor Benefits, Medical Malpractice Liability Insurance Reimbursement, and Blanket
11 Employee Bonds.
12 30. JUDGMENTS
13 (1) Payment of Judgments and Carry Forward of General Fund
14 Appropriation Balance: Notwithstanding KRS 45A.275, the payment of judgments that
15 exceed the above appropriation, as may be rendered against the Commonwealth by courts
16 and orders of the State Personnel Board, where applicable, shall be subject to KRS
17 Chapter 45 and shall not be deemed a necessary governmental expense. Notwithstanding
18 KRS 45A.270(1), funds required to pay any award or judgment against any department or
19 agency of the state in excess of the above appropriation, shall be paid out of the funds
20 created or collected for the maintenance and operation of such department or agency and
21 otherwise paid pursuant to KRS 45A.270(2). Notwithstanding KRS 45.229, the General
22 Fund appropriation in fiscal year 2025-2026 and fiscal year 2026-2027 shall not lapse
23 and shall carry forward.
24 31. KENTUCKY COMMUNICATIONS NETWORK AUTHORITY
25 2026-27 2027-28
26 General Fund 40,886,900 40,931,900
27 Restricted Funds 10,254,100 10,254,100
Page 35 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 TOTAL 51,141,000 51,186,000
2 (1) Availability Payments: Included in the above General Fund appropriation is
3 $39,200,000 in fiscal year 2026-2027 and $40,179,000 in fiscal year 2027-2028 for
4 availability payments.
5 (2) Capital Project Reporting: On a quarterly basis, the Kentucky
6 Communications Network Authority shall submit a report detailing the following for
7 each capital project authorized:
8 (a) Project scope, including a definition of what project components are critical;
9 costs related to each project component; information regarding which network location
10 node, core equipment site, or end-user location is impacted; project milestones; and any
11 changes or modifications from previous reports;
12 (b) Financial status, including how much has been spent of the authorization, cost
13 overruns and/or savings, and impact on the Authority’s operating budget;
14 (c) Project timeline detailing progress towards project milestones and project
15 completion status; and
16 (d) Procurement and contracts, including status of procurement activities
17 detailing contracts awarded and pending, and any changes to contract terms or conditions.
18 The Authority shall present this quarterly report to the Capital Projects and Bond
19 Oversight Committee.
20 TOTAL - GENERAL GOVERNMENT
21 2025-26 2026-27 2027-28
22 General Fund (Tobacco) -0- 35,576,900 32,889,700
23 General Fund -0- 1,799,708,900 1,849,367,500
24 Restricted Funds 87,000 502,004,800 424,351,500
25 Federal Funds -0- 864,097,400 710,026,200
26 TOTAL 87,000 3,201,388,000 3,016,634,900
27 B. ECONOMIC DEVELOPMENT CABINET
Page 36 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Budget Unit
2 1. ECONOMIC DEVELOPMENT
3 2026-27 2027-28
4 General Fund 26,731,900 27,490,900
5 Restricted Funds 5,637,200 4,286,300
6 Federal Funds 436,000 401,000
7 TOTAL 32,805,100 32,178,200
8 (1) Funding for Commercialization and Innovation: Notwithstanding KRS
9 154.12-278, interest income earned on the balances in the High-Tech
10 Construction/Investment Pool and loan repayments received by the High-Tech
11 Construction/Investment Pool shall be used to support the Office of Entrepreneurship and
12 are appropriated in addition to amounts appropriated above.
13 (2) Lapse and Carry Forward of General Fund Appropriation Balance for
14 Bluegrass State Skills Corporation: Notwithstanding KRS 45.229, the General Fund
15 appropriation balance for Bluegrass State Skills Corporation training grants for fiscal
16 year 2025-2026 and fiscal year 2026-2027 shall not lapse and shall carry forward. The
17 amount available to the Corporation for disbursement in each fiscal year shall be limited
18 to the unexpended training grant allotment balance at the end of each fiscal year
19 combined with the additional training grant allotment amounts in each fiscal year of the
20 2026-2028 fiscal biennium, less any disbursements. If the required disbursements exceed
21 the Bluegrass State Skills Corporation training grants allotment balance, notwithstanding
22 KRS 154.12-278, Restricted Funds may be expended for training grants.
23 (3) Science and Technology Program: Notwithstanding KRS 164.6011 to
24 164.6035 and any other statute to the contrary, the Cabinet for Economic Development
25 shall have the authority to carry out the provisions of KRS 164.6013 to 164.6035.
26 (4) Carry Forward of General Fund Appropriation Balance: Notwithstanding
27 KRS 45.229, the General Fund appropriation in fiscal year 2025-2026 and fiscal year
Page 37 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 2026-2027 to the Cabinet for Economic Development, Science and Technology Program,
2 shall not lapse and shall carry forward in the Cabinet for Economic Development.
3 (5) Executive Officers' Compensation: Notwithstanding KRS 154.10-050(2),
4 any additional executive officers as described in KRS 154.10-050(2) shall not be paid a
5 salary greater than the salary of the Governor of the Commonwealth.
6 (6) Training Grants: Included in the above General Fund appropriation is
7 $2,400,000 in fiscal year 2026-2027 and $2,325,000 in fiscal year 2027-2028 for the
8 Bluegrass State Skills Corporation to make training grants to support manufacturing-
9 related investments. The Corporation shall utilize these funds for a manufacturer
10 designated by the United States Department of Commerce, United States Census Bureau
11 North American Industry Classification System code of 336111, 336112, 336120, or
12 336211 that employs at least 10,000 full-time persons at the same facility or at multiple
13 facilities located within the same county to help offset associated costs of retraining its
14 workforce. Notwithstanding KRS 45.229, the General Fund appropriation balance for
15 Bluegrass State Skills Corporation training grants for fiscal year 2025-2026 and fiscal
16 year 2026-2027 shall not lapse and shall carry forward.
17 (7) Kentucky Product Development Initiative: Notwithstanding KRS 45.229,
18 the balance of the General Fund appropriation authorized in 2022 Ky. Acts ch. 199, Part
19 I, B., 1., (12) shall not lapse and shall carry forward.
20 (8) KEDFA Forgivable Loan-Carry Forward of Appropriation Balance:
21 Notwithstanding KRS 45.229, the balance of the General Fund appropriation authorized
22 in 2022 Ky. Acts ch. 199, Part I, B., 1., (11) shall not lapse and shall carry forward.
23 (9) Agricultural Economic Development: In accordance with KRS Chapter
24 154, the Secretary of the Cabinet for Economic Development shall coordinate with and
25 seek guidance from the Commissioner of the Department of Agriculture in considering
26 any projects for economic incentives related to agricultural economic development,
27 agribusiness, or production facilities of sustainable aviation fuel.
Page 38 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (10) State Trade and Export Promotion: Included in the above Federal Funds
2 appropriation is $135,000 in fiscal year 2026-2027 and $100,000 in fiscal year 2027-2028
3 to expand the federal State Trade and Export Promotion (STEP) program.
4 (11) Certified Child Care Community Designation Program: Included in the
5 above appropriations is sufficient funding to implement and carry out the provisions of
6 2024 Ky. Acts ch. 88.
7 (12) Financial Assistance Program for Nuclear Energy-Related Projects:
8 Included in the above appropriations is sufficient funding to implement and carry out the
9 provisions of 2024 Ky. Acts ch. 169.
10 (13) Pilot Tax Increment Financing Program: Included in the above
11 appropriations is sufficient funding to implement and carry out the provisions of 2025
12 Ky. Acts ch. 98.
13 (14) Kentucky Film Office: Included in the above Restricted Funds appropriation
14 is $500,000 in each fiscal year to support staff and operational costs for the Kentucky
15 Film Office. Notwithstanding KRS 142.406, for fiscal year 2027-2028, 2.5% of the
16 transient room tax collected pursuant to KRS 142.400 up to a maximum amount of
17 $500,000 shall be transferred to the Kentucky Film Office.
18 C. DEPARTMENT OF EDUCATION
19 Budget Units
20 1. SUPPORT EDUCATION EXCELLENCE IN KENTUCKY (SEEK)
21 PROGRAM
22 2026-27 2027-28
23 General Fund 3,533,921,800 3,565,170,200
24 (1) Common School Fund Earnings: Accumulated earnings for the Common
25 School Fund shall be transferred in each fiscal year to the SEEK Program.
26 (2) Allocation of SEEK Funds: Notwithstanding KRS 157.360(2)(c), the above
27 General Fund appropriation to the base SEEK Program is intended to provide a base
Page 39 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 guarantee of $4,626 per student in average daily attendance in fiscal year 2026-2027 and
2 $4,792 per student in average daily attendance in fiscal year 2027-2028, as well as to
3 meet the other requirements of KRS 157.360. Notwithstanding KRS 157.360(2), each
4 district’s base funding level shall be adjusted for the number of students demonstrating
5 limited proficiency in English language skills, multiplied by 0.096.
6 Funds appropriated to the SEEK Program shall be allotted to school districts in
7 accordance with KRS 157.310 to 157.440, except that the total of the funds allotted shall
8 not exceed the appropriation for this purpose, except as provided in this Act. The total
9 appropriation for the SEEK Program shall be measured by, or construed as, estimates of
10 the state expenditures required by KRS 157.310 to 157.440. If the required expenditures
11 exceed these estimates, the Secretary of the Finance and Administration Cabinet, upon
12 the written request of the Commissioner of Education and with the approval of the
13 Governor, may increase the appropriation by such amount as may be available and
14 necessary to meet, to the extent possible, the required expenditures under the cited
15 sections of the Kentucky Revised Statutes, but any increase of the total appropriation to
16 the SEEK Program is subject to Part III, General Provisions, of this Act and KRS Chapter
17 48. If funds appropriated to the SEEK Program are insufficient to provide the amount of
18 money required under KRS 157.310 to 157.440, allotments to local school districts may
19 be reduced in accordance with KRS 157.430.
20 (3) SEEK Lapse: Notwithstanding KRS 45.229, any General Fund amounts
21 appropriated to the SEEK Program that are not necessary to meet the requirements set
22 forth in KRS 157.310 to 157.440 in each fiscal year shall lapse to the Budget Reserve
23 Trust Fund Account (KRS 48.705).
24 (4) Base SEEK Allotments: Notwithstanding KRS 157.420(2), included in the
25 above General Fund appropriation is $2,043,023,100 in fiscal year 2026-2027 and
26 $2,098,833,800 in fiscal year 2027-2028 for the base SEEK Program as defined by KRS
27 157.360. Funds appropriated to the SEEK Program shall be allotted to school districts in
Page 40 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 accordance with KRS 157.310 to 157.440, except that the total of the funds allotted shall
2 not exceed the appropriation for this purpose, except as provided in this Act.
3 (5) Tier I Component: Included in the above General Fund appropriation is
4 $248,291,300 in fiscal year 2026-2027 and $237,494,100 in fiscal year 2027-2028 for the
5 Tier I component as established by KRS 157.440. Notwithstanding KRS 157.440(1)(a),
6 the board of education of each school district may levy an equivalent tax rate as defined
7 in KRS 160.470(9)(a) which will produce up to 17.5 percent of those revenues
8 guaranteed by the SEEK Program. The levy shall be made no later than October 1 of each
9 odd numbered year, and revenue generated by this levy shall be equalized at 150 percent
10 of the statewide average per pupil assessment.
11 (6) Vocational Transportation: Included in the above General Fund
12 appropriation is $7,833,100 in each fiscal year for vocational transportation.
13 (7) Teachers' Retirement System Employer Match: Included in the above
14 General Fund appropriation is $529,410,000 in fiscal year 2026-2027 and $541,260,000
15 in fiscal year 2027-2028 to enable local school districts to provide the employer match
16 for qualified employees.
17 (8) Salary Supplements for Nationally Certified Teachers: Notwithstanding
18 KRS 157.395, included in the above General Fund appropriation is $4,000,000 in each
19 fiscal year for the purpose of providing salary supplements for public school teachers
20 attaining certification by the National Board for Professional Teaching Standards.
21 Notwithstanding KRS 157.395, if the appropriation is insufficient to provide the
22 mandated salary supplement for teachers who have obtained this certification, the
23 Department of Education is authorized to pro rata reduce the supplement.
24 (9) SEEK Adjustment Factors: Funds allocated for the SEEK base and its
25 adjustment factors that are not needed for the base or a particular adjustment factor may
26 be allocated to other adjustment factors, if funds for that adjustment factor are not
27 sufficient.
Page 41 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (10) Facilities Support Program of Kentucky/Equalized Nickel Levies:
2 Included in the above General Fund appropriation is $137,176,700 in fiscal year 2026-
3 2027 and $126,577,500 in fiscal year 2027-2028 to provide facilities equalization funding
4 pursuant to KRS 157.440 and 157.620.
5 (11) Growth Levy Equalization Funding: Included in the above General Fund
6 appropriation is $54,370,400 in fiscal year 2026-2027 and $46,449,200 in fiscal year
7 2027-2028 to provide facilities equalization funding pursuant to KRS 157.440 and
8 157.620 for districts meeting the eligibility requirements of KRS 157.621(1) and (4).
9 Notwithstanding KRS 157.621(1)(b)2., a school district that imposes the levy authorized
10 by KRS 157.621(1)(b)1. shall be equalized for that levy, in addition to the equalization
11 funding appropriated in accordance with KRS 157.621(1)(b)2., and all funds for this
12 purpose shall be committed to debt service, new facilities, or major renovations in
13 accordance with KRS 157.440(1)(b). It is the intent of the 2026 General Assembly that
14 any local school district receiving equalization under this subsection shall receive full
15 calculated equalization until the earlier of 20 years of the effective date of this Act, or the
16 date the bonds for the local school district supported by this equalization are retired, in
17 accordance with KRS 157.621(2).
18 (12) Retroactive Equalized Facility Funding: Included in the above General
19 Fund appropriation is $75,574,900 in fiscal year 2026-2027 and $70,808,700 in fiscal
20 year 2027-2028 to provide equalized facility funding pursuant to KRS 157.440 and
21 157.620 to districts meeting the eligibility requirements of KRS 157.621(2) and (4). In
22 addition, a local board of education that levied a tax rate subject to recall by January 1,
23 2014, in addition to the five cents levied pursuant to KRS 157.440(1)(b) and that
24 committed the receipts to debt service, new facilities, or major renovations of existing
25 facilities shall be eligible for equalization funds from the state at 150 percent of the
26 statewide average per pupil assessment. Revenue to generate the five cent equivalent levy
27 may be obtained from levies on property, motor vehicles, or the taxes authorized by KRS
Page 42 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 160.593 to 160.597, 160.601 to 160.633, and 160.635 to 160.648 if the levy was
2 dedicated to facilities funding at the time of the levy. The equalization funds shall be used
3 as provided in KRS 157.440(1)(b). Notwithstanding KRS 157.621(2)(a) and (4), for the
4 2026-2028 fiscal biennium, school districts that levied the tax rate subject to recall prior
5 to January 15, 2024, shall be equalized at 100 percent of the calculated equalization
6 funding, school districts that levied the tax rate subject to recall after January 15, 2024,
7 and before January 1, 2026, shall be equalized at 25 percent of the calculated equalization
8 funding, and all funds for this purpose shall be committed to debt service, new facilities,
9 or major renovations in accordance with KRS 157.440(1)(b). It is the intent of the 2026
10 General Assembly that any local school district receiving equalization under this
11 subsection shall receive full calculated equalization until the earlier of 20 years from the
12 effective date of this Act or the date the bonds for the local school district supported by
13 this equalization funding are retired, in accordance with KRS 157.621(2). It is also the
14 intent of the 2026 General Assembly that any local school district that levies a tax rate
15 subject to recall after January 1, 2026, shall not receive equalization in the 2028-2030
16 fiscal biennium and thereafter.
17 (13) Equalized Facility Funding: Included in the above General Fund
18 appropriation is $18,746,800 in fiscal year 2026-2027 and $17,186,100 in fiscal year
19 2027-2028 to provide equalized facility funding pursuant to KRS 157.440 and 157.620 to
20 districts meeting the eligibility requirements of KRS 157.621(3) and (4). Notwithstanding
21 KRS 157.621(3)(c), a school district meeting the criteria of KRS 157.621(3)(a) and (b)
22 shall be equalized at 100 percent of the calculated equalization funding in each fiscal
23 year, and all funds for this purpose shall be committed to debt service, new facilities, or
24 major renovations in accordance with KRS 157.440(1)(b). In addition, notwithstanding
25 KRS 157.621(1) and (3), a school district that has levied a five-cent equivalent rate
26 authorized by KRS 157.621(1)(a) and is not receiving state equalization funding for that
27 levy under KRS 157.621(1)(b), 157.621(3), or any other provision of this Act, shall be
Page 43 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 equalized at 100 percent of the calculated equalization funding in each fiscal year, and all
2 funds for this purpose shall be committed to debt service, new facilities, or major
3 renovations in accordance with KRS 157.440(1)(b). It is the intent of the 2026 General
4 Assembly that any local school district receiving equalization under this subsection shall
5 receive full calculated equalization until the earlier of 20 years of the effective date of
6 this Act, or the date the bonds for the local school district supported by this equalization
7 are retired, in accordance with KRS 157.621(3).
8 (14) BRAC Equalized Facility Funding: Notwithstanding KRS 157.621(1)(c)2.,
9 included in the above General Fund appropriation is $3,162,200 in fiscal year 2026-2027
10 and $2,749,400 in fiscal year 2027-2028 to provide equalized facility funding to school
11 districts meeting the eligibility requirements of KRS 157.621(1)(c)1. pursuant to KRS
12 157.440 and 157.620. It is the intent of the 2026 General Assembly that the district
13 receiving equalization under this subsection shall not receive equalization after the 2028-
14 2030 fiscal biennium.
15 (15) Equalization Funding for Critical Construction Needs Schools: Included
16 in the above General Fund appropriation is $10,136,800 in fiscal year 2026-2027 and
17 $9,781,800 in fiscal year 2027-2028 to school districts in accordance with KRS
18 157.621(5).
19 (16) Hold-Harmless Guarantee: A hold-harmless guarantee is established in each
20 fiscal year which provides that every local school district shall receive at least the same
21 amount of SEEK state funding per pupil as was received in fiscal year 1991-1992. If
22 funds appropriated to the SEEK Program are insufficient to provide the amount of money
23 required under KRS 157.310 to 157.440, and allotments to local school districts are
24 reduced in accordance with KRS 157.430, allocations to school districts subject to this
25 provision shall not be reduced.
26 (17) Residential Youth-at-Risk Programs: In accordance with KRS 157.360, no
27 funds from the SEEK Program shall be distributed to the programs operated by the
Page 44 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Kentucky Guard Youth Challenge Division of the Department of Military Affairs.
2 Notwithstanding KRS 157.350, 157.360, 157.410, and any other statute to the contrary,
3 any school district providing educational services to students enrolled in programs
4 operated by the Kentucky Guard Youth Challenge Division of the Department of Military
5 Affairs shall be paid for those services solely from the General Fund appropriation in Part
6 I, A., 6. of this Act, and students enrolled in such programs shall not be included in the
7 average daily attendance for purposes of SEEK Program funding.
8 (18) Salary Supplements for Certified Audiologists and Speech Language
9 Pathologists: Included in the above General Fund appropriation is $2,312,000 in each
10 fiscal year for the purpose of providing a $2,000 salary supplement each year for full-
11 time public school Audiologists and Speech Language Pathologists that have active
12 Certificates of Clinical Competence, as offered by the American Speech-Language-
13 Hearing Association. Notwithstanding any statute to the contrary, if the appropriation is
14 insufficient to provide all full-time public school American Speech-Language-Hearing
15 Association certified Audiologists and Speech Language Pathologists with the $2,000
16 stipend, then the Department of Education is authorized to pro rata reduce the
17 supplement.
18 (19) Full-Day Kindergarten: Notwithstanding KRS 157.320 or any other statute
19 or regulation to the contrary, the Department of Education shall count each kindergarten
20 pupil in full for that respective school year, for the purpose of determining SEEK funds
21 and any other state funding based in whole or in part on average daily attendance for the
22 district, except that a district shall receive an amount equal to one-half of the state portion
23 of the average statewide per pupil guaranteed base funding level for each student who
24 graduated early under the provisions of KRS 158.142.
25 (20) SEEK Transportation: Notwithstanding KRS 157.370 and 157.360(2)(c),
26 included in the above General Fund appropriation is $398,884,500 in each fiscal year to
27 support pupil transportation.
Page 45 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (21) Legislative Policy Requirement: The 2026 General Assembly provides the
2 following requirement to local boards of education and the Kentucky Department of
3 Education:
4 (a) Local school districts that receive state funding from the Support Education
5 Excellence in Kentucky Program shall:
6 1. Prominently display, in not less than 16-point type, on the local board of
7 education’s internet landing page, the district’s percentage of students scoring Proficient
8 in Reading, the district’s percentage of students scoring Distinguished in Reading, the
9 district’s percentage of students scoring Proficient in Mathematics, and the district’s
10 percentage of students scoring Distinguished in Mathematics on the most recent
11 Kentucky Summative Assessment, as defined by KRS 158.6453;
12 2. Prominently display a web link to the detailed results of the district’s
13 performance on the most recent Kentucky Summative Assessment on the local board of
14 education’s internet landing page;
15 3. Display the same information specified in subparagraph 1. of this paragraph at
16 the top of each page of the board’s website in a banner format;
17 4. Prominently display, in not less than 16-point type, on each school’s internet
18 landing page, the school’s percentage of students scoring Proficient in Reading, the
19 school’s percentage of students scoring Distinguished in Reading, the percentage of
20 students scoring Proficient in Mathematics, and the percentage of students scoring
21 Distinguished in Mathematics on the school’s most recent Kentucky Summative
22 Assessment;
23 5. Prominently display on each school’s internet landing page, a link to the
24 detailed results of the school’s results on the most recent Kentucky Summative
25 Assessment; and
26 6. Display the same information specified in subparagraph 4. of this paragraph in
27 banner format on each page of the school’s website;
Page 46 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (b) The Kentucky Department of Education shall post a rank order by overall
2 academic performance of all schools on its website;
3 (c) The Kentucky Department of Education shall ensure compliance with this
4 subsection by every district, and offer assistance, as needed;
5 (d) The 2026 General Assembly is aware of the intention of surrounding states to
6 set increased minimum salaries for classroom teachers in those states by statute or
7 regulation. The General Assembly also recognizes the fact that the local economy heavily
8 affects the salary schedules of classified employees; and
9 (e) The 2026 General Assembly directs each local board of education to consider
10 the actions of other states and the local economy and the related effect on recruitment and
11 retention when establishing the salary schedules for classroom teachers and classified
12 employees. Additional funds have been made available to local school districts through
13 increases in SEEK resources. The 2026 General Assembly encourages local school
14 districts to provide certified and classified staff a salary or compensation increase.
15 (22) Star Charter Academy: Included in the above General Fund appropriation is
16 $1,000,000 in each fiscal year as a one-time allocation to support a pilot program of Star
17 Academy schools within existing public schools throughout the state.
18 (23) SEEK Per Pupil Reporting: Publicly available reports published or
19 distributed by the Kentucky Department of Education related to the SEEK Program
20 disbursements to districts shall include adjustments that capture the total state funding per
21 student by aggregating all state appropriations made on behalf of school districts,
22 including Teachers’ Retirement System payments and insurance payments, and express
23 the totals on a per pupil basis using the district’s prior year statewide average daily
24 attendance. These calculations shall be separate from and shall not be incorporated into
25 the SEEK formula or used to determine SEEK allotments.
26 (24) Academic Academies: Notwithstanding KRS 157.310 to 157.440 and
27 157.621, students enrolled in the Craft Academy for Excellence in Science and
Page 47 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Mathematics, the Gatton Academy for Excellence in Science and Mathematics in
2 Kentucky, and the Votruba Young Scholars Academy shall not be included in the average
3 daily attendance of the students’ districts of residence for the purpose of calculating
4 SEEK program funding in each fiscal year of the 2026-2028 fiscal biennium.
5 (25) Model Laboratory School SEEK Calculation Adjustment:
6 Notwithstanding KRS 164.380(5), adjustments to SEEK Program funding for students
7 attending the Eastern Kentucky University Model Laboratory School shall be reduced by
8 $900,000 in fiscal year 2026-2027 and $1,800,000 in fiscal year 2027-2028. It is the
9 intent of the 2026 General Assembly to eliminate the adjustment in subsequent fiscal
10 years.
11 (26) Transportation Calculation Flexibility: Notwithstanding KRS 157.370 and
12 702 KAR 5:020, a school district may request that the Commissioner of Education use
13 the second preceding year’s days transported in place of the prior year’s days transported
14 for purposes of the calculation under KRS 157.370 and 702 KAR 5:020 if the district
15 calendar was negatively impacted by new construction or major renovations. Nothing in
16 this provision shall require a school district to use a number of days transported that
17 would reduce the funding calculated under KRS 157.370.
18 2. OPERATIONS AND SUPPORT SERVICES
19 2026-27 2027-28
20 General Fund 62,072,200 60,564,500
21 Restricted Funds 4,751,300 5,612,800
22 Federal Funds 565,770,700 565,989,000
23 TOTAL 632,594,200 632,166,300
24 (1) Advanced Placement and International Baccalaureate Exams:
25 Notwithstanding KRS 160.348(3), included in the above General Fund appropriation is
26 $960,000 in fiscal year 2026-2027 and $930,000 in fiscal year 2027-2028 to pay the cost
27 of Advanced Placement and International Baccalaureate examinations for those students
Page 48 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 who meet the eligibility requirements for free or reduced-price meals.
2 (2) Employee Reporting: The Kentucky Department of Education shall provide
3 a report by August 1 of each year to the Interim Joint Committee on Appropriations and
4 Revenue. At a minimum, the report shall include:
5 (a) A count and list, by name, of all full-time, part-time, and interim employees
6 employed under KRS Chapter 18A;
7 (b) A count and list, by name, of all contract employees;
8 (c) The position title, Kentucky Department of Education office served, and
9 primary work location of every employee;
10 (d) The employees’ level of compensation, on an annualized basis, including the
11 percentage of all fund sources used to compensate the employee; and
12 (e) For contract employees, the start and end date of the relevant contract, as well
13 as the name of any entity involved in administering the contract.
14 (3) Certified and Classified Staff Compensation Increase Reporting: The
15 Kentucky Department of Education shall provide a report by September 1 of each year to
16 the Interim Joint Committee on Appropriations and Revenue detailing certified and
17 classified staff compensation increases for the current school year by each local school
18 district. At a minimum, the report shall include:
19 (a) A brief description of the type of staff compensation increases adopted, such
20 as percentage-based or flat rate, if applicable;
21 (b) The average percentage rate or dollar amount of the compensation increases,
22 by classification, if applicable;
23 (c) The effective date of the compensation increases, if applicable;
24 (d) The manner in which the compensation increases were delineated, such as
25 universally or by job classification, if applicable;
26 (e) Any monetary compensation in addition to that provided through the district’s
27 single salary schedule, such as one-time payments, if applicable;
Page 49 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (f) The date the local board of education adopted the compensation increases, if
2 applicable; and
3 (g) Any changes to the local school district’s certified and/or classified staff
4 single salary schedule(s), if applicable.
5 (4) Blind/Deaf Residential Travel Program: Included in the above General
6 Fund appropriation is $472,600 in fiscal year 2026-2027 and $457,800 in fiscal year
7 2027-2028 for the Blind/Deaf Residential Travel Program.
8 (5) Educators Employment Liability Insurance Program: Included in the
9 above General Fund appropriation is $4,800,000 in fiscal year 2026-2027 and $4,650,000
10 in fiscal year 2027-2028 to support the educators employment liability insurance program
11 pursuant to KRS 161.212.
12 (6) School and Community Nutrition Programs: Included in the above Federal
13 Funds appropriation is an additional $100,181,200 in each fiscal year to support increased
14 spending on school and community nutrition programs.
15 (7) Special Examination: Included in the above appropriations is sufficient
16 funding to implement and carry out the provisions of 2024 Ky. Acts ch. 118.
17 (8) Local School District Insurance Coverage Report: The Kentucky
18 Department of Education shall submit a report detailing each local school district’s
19 insurance coverage to the Department of Insurance no later than October 1, 2026. The
20 report shall at a minimum include, for each district, the insurer and level of insurance
21 coverage, as required under 702 KAR 3:030.
22 (9) School District Project and Indebtedness Report: The Kentucky
23 Department of Education, with assistance from the School Facilities Construction
24 Commission, shall compile and submit a report to the Interim Joint Committee on
25 Appropriations and Revenue by June 30, 2027. The report shall be submitted in a format
26 set forth by the Legislative Research Commission and shall include, at a minimum, a list
27 of every local school district’s existing bonded projects, the date and amount of any
Page 50 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 additional tax levy enacted by a school board for each project, any equalization
2 provisions provided for each project, the total amount of debt service payments made by
3 each district, and the amount of debt service remaining and anticipated retirement dates
4 of the debt service associated with each project.
5 3. LEARNING AND RESULTS SERVICES
6 2026-27 2027-28
7 General Fund 1,526,964,400 1,729,548,700
8 Restricted Funds 36,143,000 43,692,000
9 Federal Funds 621,154,200 619,729,900
10 TOTAL 2,184,261,600 2,392,970,600
11 (1) Kentucky Education Technology System: Notwithstanding KRS 157.650 to
12 157.665, the School for the Deaf and the School for the Blind shall be fully eligible,
13 along with local school districts, to participate in the Kentucky Education Technology
14 System in a manner that takes into account the special needs of the students of these two
15 schools.
16 (2) Family Resource and Youth Services Centers: Funds appropriated to
17 establish and support Family Resource and Youth Services Centers shall be transferred in
18 each fiscal year to the Cabinet for Health and Family Services consistent with KRS
19 156.496. The Cabinet for Health and Family Services is authorized to use, for
20 administrative purposes, no more than two percent of the total funds transferred from the
21 Department of Education for the Family Resource and Youth Services Centers. If a
22 certified person is employed as a director or coordinator of a Family Resource and Youth
23 Services Center, that person shall retain his or her status as a certified employee of the
24 school district.
25 (3) Health Insurance: Included in the above General Fund appropriation is
26 $1,076,821,500 in fiscal year 2026-2027 and $1,277,823,800 in fiscal year 2027-2028 for
27 employer contributions for health insurance and the contribution to the health
Page 51 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 reimbursement account for employees waiving coverage. Notwithstanding KRS 45.229,
2 General Fund in the amount of $98,310,700 in fiscal year 2025-2026 shall not lapse and
3 shall carry forward into fiscal year 2026-2027.
4 (4) Program Flexibility: Notwithstanding KRS 158.070(8) and 158.446, local
5 school districts shall be provided additional flexibility in the utilization of funds for
6 Extended School Services and Safe Schools. Local school districts shall continue to
7 address the governing statutes and serve the intended student population but may utilize
8 funds from these programs for general operating expenses in each year of the fiscal
9 biennium. Local school districts that utilize these funds for general operating expenses
10 shall report to the Kentucky Department of Education and the Interim Joint Committee
11 on Education the amount of funding from each program utilized for general operating
12 expenses.
13 (5) Center for School Safety: Included in the above General Fund appropriation
14 is $15,000,000 in each fiscal year for the Center for School Safety. Notwithstanding KRS
15 158.446, the Center for School Safety shall allot these moneys for the purposes described
16 in KRS 158.440, 158.441, 158.4415, 158.4416, 158.442, 158.445, and 158.446 at both
17 public and private school buildings, campuses, grounds, recreational areas, or athletic
18 fields, except that no more than $2,000,000 in each fiscal year may be retained for
19 operating and administrative purposes.
20 (6) Allocations to School-Based Decision Making Councils: Notwithstanding
21 KRS 160.345(8), for each fiscal year, a local board of education may reduce the
22 allocations to individual schools within the district as outlined in 702 KAR 3:246, secs. 6,
23 7, and 8. The allocation under 702 KAR 3:246, sec. 6 shall not be less than $100 per
24 pupil in average daily attendance.
25 (7) Kentucky School for the Blind and Kentucky School for the Deaf:
26 Included in the above General Fund appropriation is $8,289,100 in each fiscal year for
27 the Kentucky School for the Blind and $11,291,800 in each fiscal year for the Kentucky
Page 52 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 School for the Deaf.
2 (8) Career and Technical Education: Included in the above General Fund
3 appropriation is $127,115,900 in each fiscal year for career and technical education. Of
4 this amount, $70,063,400 in each fiscal year shall be distributed as supplemental funding
5 to support qualifying locally operated career and technical education centers, state-
6 operated area technology centers, and programs based on enrollment and incentive
7 criteria, pursuant to KRS 157.069.
8 The General Assembly recognizes that supplemental funding for locally operated
9 career and technical education centers and state-operated area technology centers is
10 recurring, and it is the intent of the 2026 General Assembly to evaluate those funding
11 needs before January 1, 2028.
12 (9) Redistribution of Resources: Notwithstanding KRS 156.095, 156.553,
13 156.555, 157.390, 158.070, 158.770, 158.775, 158.805, 161.027, 161.028, 161.030,
14 161.165, and 161.167, no General Fund is provided for the Professional Development
15 Program, the Commonwealth School Improvement Fund, the Leadership and Mentor
16 Fund, the Middle School Academic Center, the Teacher's Professional Growth Fund, the
17 Teacher Academies Program, the Writing Program, the Kentucky Principal Internship
18 Program, the Kentucky Teacher Internship Program, and the Kentucky Academy for
19 Equity in Teaching in order to increase funding for school-based mental health services
20 providers.
21 (10) Learning and Results Services Programs: Included in the above General
22 Fund appropriation are the following allocations for the 2026-2028 fiscal biennium, but
23 no portion of these funds shall be utilized for state-level administrative purposes:
24 (a) $1,900,000 in each fiscal year for AdvanceKentucky;
25 (b) $1,850,000 in each fiscal year for the Community Education Program;
26 (c) $3,000,000 in each fiscal year for Dataseam;
27 (d) $23,916,300 in each fiscal year for the Extended School Services Program;
Page 53 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (e) $48,889,000 in each fiscal year for the Family Resource and Youth Services
2 Centers Program;
3 (f) $10,000,000 in each fiscal year for the Gifted and Talented Program;
4 (g) $100,000 in each fiscal year for the Hearing and Speech Center;
5 (h) $100,000 in each fiscal year for the Heuser Hearing and Language Academy;
6 (i) Notwithstanding KRS 154A.130(4), $1,675,500 in each fiscal year for the
7 Jobs for America’s Graduates Program;
8 (j) $500,000 in each fiscal year for the Kentucky Alliance of Boys & Girls Clubs;
9 (k) $12,500,000 in each fiscal year for the Kentucky Educational Collaborative
10 for State Agency Children;
11 (l) $1,391,000 in each fiscal year for Local School District Life Insurance;
12 (m) $1,000,000 in each fiscal year for Math Nation;
13 (n) $5,019,000 in each fiscal year for the Mathematics Achievement Fund;
14 (o) $84,481,100 in each fiscal year for the Preschool Program;
15 (p) $12,261,100 in each fiscal year for the Read to Achieve Program.
16 Notwithstanding KRS 154A.130(3)(b), included in the above appropriation is $1,124,500
17 from lottery proceeds;
18 (q) $11,000,000 in each fiscal year for the Read to Succeed Program;
19 (r) $2,000,000 in each fiscal year for Save the Children;
20 (s) $1,200,000 in each fiscal year for the Statewide Reading Research Center;
21 (t) $700,000 in each fiscal year for Teach for America. Teach for America shall
22 submit a report on the outcomes of the program to the Interim Joint Committee on
23 Education by August 1, 2027;
24 (u) $500,000 in each fiscal year for the Visually Impaired Preschool Services
25 Program; and
26 (v) $1,500,000 in each fiscal year for We Lead CS.
27 It is the intent of the 2026 General Assembly to reevaluate each Learning and
Page 54 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Results Services Program, both individually and collectively, to optimize funding and
2 support for Kentucky students.
3 (11) School-Based Mental Health Services Providers: Included in the above
4 General Fund appropriation is $7,412,500 in each fiscal year to fund school-based mental
5 health services provider full-time equivalent positions on a reimbursement basis. The
6 Kentucky Center for School Safety, in consultation with the Office of the State School
7 Security Marshal, shall develop criteria to determine which districts shall receive funding
8 to meet the requirements of KRS 158.4416(3)(a). The criteria shall include:
9 (a) A local district’s use of Medicaid funding to supplement General Fund;
10 (b) An equitable and balanced statewide distribution; and
11 (c) Any other criteria to support a trauma-informed approach in schools.
12 (12) School Resource Officers: Included in the above appropriations is
13 $11,500,000 in General Fund and $11,500,000 in Restricted Funds in each fiscal year to
14 assist local school districts and nonpublic schools in funding salaries for school resource
15 officers. The Kentucky Department of Education shall reimburse local school districts
16 and nonpublic schools up to $20,000 for each full-time certified school resource officer.
17 Notwithstanding KRS 15.430 and 15.470, excess Restricted Funds from the Department
18 of Criminal Justice Training shall be transferred to the Kentucky Department of
19 Education for this purpose.
20 (13) Federal Remedial Education Grants: It is the intent of the 2026 General
21 Assembly that the Kentucky Department of Education shall apply for all federal grants
22 available for remedial education.
23 (14) Principal Leadership Development Practicum: Included in the above
24 General Fund appropriation is a one-time allocation of $1,000,000 in each fiscal year to
25 support a new program, overseen by the Kentucky Department of Education, to develop
26 and mentor new school principals.
27 TOTAL - DEPARTMENT OF EDUCATION
Page 55 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 2026-27 2027-28
2 General Fund 5,122,958,400 5,355,283,400
3 Restricted Funds 40,894,300 49,304,800
4 Federal Funds 1,186,924,900 1,185,718,900
5 TOTAL 6,350,777,600 6,590,307,100
6 D. EDUCATION AND LABOR CABINET
7 Budget Units
8 1. GENERAL ADMINISTRATION AND PROGRAM SUPPORT
9 2026-27 2027-28
10 General Fund (Tobacco) 1,063,800 983,200
11 General Fund 13,593,600 13,262,100
12 Restricted Funds 23,082,900 22,889,600
13 Federal Funds 5,641,200 5,675,400
14 TOTAL 43,381,500 42,810,300
15 (1) Early Childhood Development: Included in the above General Fund
16 (Tobacco) appropriation is $1,063,800 in fiscal year 2026-2027 and $983,200 in fiscal
17 year 2027-2028 for the Early Childhood Advisory Council.
18 (2) Heuser Hearing Institute: Included in the above General Fund appropriation
19 is $1,920,000 in fiscal year 2026-2027 and $1,860,000 in fiscal year 2027-2028 for the
20 Heuser Hearing Institute to support programs developed to close the education and
21 achievement gaps for deaf and hard-of-hearing adults.
22 (3) The Hope Center: Included in the above General Fund appropriation is
23 $96,000 in fiscal year 2026-2027 and $93,000 in fiscal year 2027-2028 for the Hope
24 Center.
25 (4) Lapse and Reallocation of Early Childhood Development Fund
26 Appropriations: Notwithstanding KRS 194A.055, 200.151, 248.654, and any statute to
27 the contrary, $6,500,000 in General Fund (Tobacco) settlement agreement funds
Page 56 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 previously appropriated from the Early Childhood Development Fund to the General
2 Administration and Program Support budget unit within the Education and Labor Cabinet
3 for the benefit of the Early Childhood Advisory Council shall lapse to the Tobacco
4 Settlement Agreement Fund established in KRS 248.654.
5 2. PROPRIETARY EDUCATION
6 2026-27 2027-28
7 Restricted Funds 542,300 547,300
8 3. DEAF AND HARD OF HEARING
9 2026-27 2027-28
10 General Fund 1,075,400 1,067,600
11 Restricted Funds 1,360,200 1,326,700
12 TOTAL 2,435,600 2,394,300
13 4. KENTUCKY EDUCATIONAL TELEVISION
14 2026-27 2027-28
15 General Fund 17,425,000 17,771,600
16 Restricted Funds 2,038,900 2,038,900
17 TOTAL 19,463,900 19,810,500
18 5. ENVIRONMENTAL EDUCATION COUNCIL
19 2026-27 2027-28
20 Restricted Funds 524,000 521,700
21 Federal Funds 429,800 429,800
22 TOTAL 953,800 951,500
23 (1) Environmental Education Council: Notwithstanding KRS 224.43-
24 505(2)(b), the Council may use interest received to support the operations of the Council.
25 6. LIBRARIES AND ARCHIVES
26 a. General Operations
27 2026-27 2027-28
Page 57 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 General Fund 5,959,200 6,389,100
2 Restricted Funds 2,922,300 2,358,800
3 Federal Funds 3,038,300 3,071,000
4 TOTAL 11,919,800 11,818,900
5 b. Direct Local Aid
6 2026-27 2027-28
7 General Fund 5,574,700 5,574,700
8 Restricted Funds 1,046,900 1,046,900
9 TOTAL 6,621,600 6,621,600
10 (1) Per Capita Grants: Notwithstanding KRS 171.201, no General Fund is
11 provided for nonconstruction state aid.
12 (2) Public Library Facilities Construction: Included in the above General Fund
13 appropriation is $3,074,700 in each fiscal year for the Public Library Facilities
14 Construction Fund. Notwithstanding KRS 45.229 and 171.027 to 171.223, any expired
15 debt service payments shall lapse to the Budget Reserve Trust Fund Account (KRS
16 48.705).
17 (3) Dolly Parton's Imagination Library: Included in the above General Fund
18 appropriation is $2,500,000 in each fiscal year for the Imagination Library of Kentucky
19 Program. The General Assembly hereby directs the Department for Libraries and
20 Archives and the Cabinet for Health and Family Services to collaborate on researching
21 ways to increase enrollment in Dolly Parton's Imagination Library Program for children
22 from low-income households and children living in foster care. The Department for
23 Libraries and Archives and the Cabinet for Health and Family Services shall submit a
24 joint report detailing their findings, identified strategies, and cost of implementation to
25 the Governor and the Legislative Research Commission by November 1, 2026.
26 TOTAL - LIBRARIES AND ARCHIVES
27 2026-27 2027-28
Page 58 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 General Fund 11,533,900 11,963,800
2 Restricted Funds 3,969,200 3,405,700
3 Federal Funds 3,038,300 3,071,000
4 TOTAL 18,541,400 18,440,500
5 7. WORKFORCE DEVELOPMENT
6 2026-27 2027-28
7 General Fund 40,226,200 39,771,200
8 Restricted Funds 12,965,600 12,911,900
9 Federal Funds 480,160,800 481,629,200
10 TOTAL 533,352,600 534,312,300
11 (1) Cafeteria Service Contracts: No state agency shall enter into any contract
12 with a nongovernmental entity for the operation of food services provided in the
13 cafeterias located in the Kentucky Transportation Cabinet office building and/or the
14 Cabinet for Human Resources office building in Frankfort unless the Office of
15 Vocational Rehabilitation has declined in writing to provide such services.
16 (2) Adult Education: Included in the above General Fund appropriation are
17 sufficient funds in each fiscal year to support the Office of Adult Education.
18 Notwithstanding KRS 45.229, the General Fund appropriation for the Office of Adult
19 Education in each fiscal year shall not lapse and shall carry forward.
20 (3) Unemployment Insurance System Replacement: Notwithstanding KRS
21 341.243(8), the Service Capacity Upgrade Fund may collect up to $68,000,000 for the
22 purpose of funding the Replace Unemployment Insurance System project authorized in
23 2024 Ky. Acts ch. 175, Part II, D., 4., 005. The Office of Unemployment Insurance shall
24 prepare a report detailing the replacement of the unemployment insurance system. The
25 report shall include a description of how the allocated Restricted Funds are being utilized
26 and a timeline of expected completion and implementation of a new system. This report
27 shall be submitted to the Interim Joint Committee on Appropriations and Revenue
Page 59 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 quarterly, beginning May 1, 2026.
2 (4) Vocational Rehabilitation: Included in the above General Fund
3 appropriation is $3,500,000 in fiscal year 2026-2027 and $3,600,000 in fiscal year 2027-
4 2028 for the Office of Vocational Rehabilitation to support an increase in the match and
5 maintenance of effort requirement for the Vocational Rehabilitation Grants to States
6 (Basic Support) federal award.
7 8. WORKPLACE STANDARDS
8 2026-27 2027-28
9 General Fund 1,694,800 1,676,000
10 Restricted Funds 8,448,300 8,357,600
11 Federal Funds 4,200,000 4,291,500
12 TOTAL 14,343,100 14,325,100
13 (1) Youth Employment Programs: Included in the above appropriations is
14 sufficient funding to implement and carry out the provisions of 2024 Ky. Acts ch. 119.
15 (2) Court-Awarded Expenses: Included in the above appropriations is sufficient
16 funding to implement and carry out the provisions of 2025 Ky. Acts ch. 105.
17 9. WORKERS' CLAIMS
18 2026-27 2027-28
19 Restricted Funds 60,812,900 59,744,500
20 10. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION
21 2026-27 2027-28
22 Restricted Funds 780,800 772,100
23 11. WORKERS' COMPENSATION FUNDING COMMISSION
24 2026-27 2027-28
25 Restricted Funds 88,165,200 86,108,500
26 12. WORKERS' COMPENSATION NOMINATING COMMITTEE
27 2026-27 2027-28
Page 60 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds 1,100 1,100
2 13. DISABILITY DETERMINATIONS 2027-28
814,300
3 2026-27 67,256,300
68,070,600
4 Restricted Funds 823,600
2027-28
5 Federal Funds 66,308,700 983,200
85,512,300
6 TOTAL 67,132,300 199,439,900
562,353,200
7 TOTAL - EDUCATION AND LABOR CABINET 848,288,600
8 2026-27 2027-28
4,149,400
9 General Fund (Tobacco) 1,063,800 4,821,900
1,361,100
10 General Fund 85,548,900 10,332,400
11 Restricted Funds 203,515,000 2027-28
6,112,100
12 Federal Funds 559,778,800 6,286,500
3,751,600
13 TOTAL 849,906,500 16,150,200
14 E. ENERGY AND ENVIRONMENT CABINET
15 Budget Units
16 1. SECRETARY
17 2026-27
18 General Fund 4,188,400
19 Restricted Funds 4,882,300
20 Federal Funds 1,330,900
21 TOTAL 10,401,600
22 2. ADMINISTRATIVE SERVICES
23 2026-27
24 General Fund 6,145,600
25 Restricted Funds 6,270,600
26 Federal Funds 3,695,000
27 TOTAL 16,111,200
Page 61 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 3. ENVIRONMENTAL PROTECTION
2 2026-27 2027-28
3 General Fund 28,315,000 28,464,200
4 Restricted Funds 84,816,000 82,962,100
5 Federal Funds 39,597,300 40,153,800
6 TOTAL 152,728,300 151,580,100
7 (1) Public and Private Dam Rehabilitation: The Department for Environmental
8 Protection shall submit a report to the Legislative Research Commission, Office of
9 Budget Review, by September 1, 2027, recommending the priority ranking and funding
10 mechanisms for rehabilitating public and private high hazard dams within the
11 Commonwealth. The Department may work collaboratively with the Soil and Water
12 Conservation Commission (KRS 146.110).
13 (2) Pollutants of Kentucky Waterways: Included in the above appropriations is
14 sufficient funding to implement and carry out the provisions of 2024 Ky. Acts ch. 105.
15 (3) Long-term Post-mining Water Treatment Permits: Included in the above
16 appropriations is sufficient funding to implement and carry out the provisions of 2025
17 Ky. Acts ch. 119.
18 4. NATURAL RESOURCES
19 2026-27 2027-28
20 General Fund (Tobacco) 2,659,600 2,457,900
21 General Fund 40,384,500 40,416,000
22 Restricted Funds 24,671,200 23,800,500
23 Federal Funds 176,361,500 176,912,900
24 TOTAL 244,076,800 243,587,300
25 (1) Emergency Forest Fire Suppression: Not less than $2,500,000 of the above
26 General Fund appropriation in each fiscal year shall be set aside for emergency forest fire
27 suppression. Notwithstanding KRS 45.229, any portion of the $2,500,000 not expended
Page 62 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 for emergency forest fire suppression shall lapse to the Budget Reserve Trust Fund
2 Account (KRS 48.705) at the end of each fiscal year. There is appropriated from the
3 General Fund the necessary funds, subject to the conditions and procedures provided in
4 this Act, which are required as a result of emergency fire suppression activities in excess
5 of $2,500,000 in each fiscal year. Fire suppression costs in excess of $2,500,000 annually
6 shall be deemed necessary government expenses and shall be paid, up to $4,000,000 in
7 each fiscal year, from the General Fund Surplus Account (KRS 48.700) or the Budget
8 Reserve Trust Fund Account (KRS 48.705).
9 (2) Environmental Stewardship Program: Included in the above General Fund
10 (Tobacco) appropriation is $1,773,100 in fiscal year 2026-2027 and $1,638,600 in fiscal
11 year 2027-2028 for the Environmental Stewardship Program.
12 (3) Conservation District Local Aid: Included in the above General Fund
13 (Tobacco) appropriation is $886,500 in fiscal year 2026-2027 and $819,300 in fiscal year
14 2027-2028 for the Division of Conservation to provide direct aid to local conservation
15 districts.
16 5. ENERGY POLICY
17 2026-27 2027-28
18 General Fund 1,617,400 1,572,700
19 Restricted Funds 613,100 607,100
20 Federal Funds 62,541,200 62,555,900
21 TOTAL 64,771,700 64,735,700
22 6. KENTUCKY NATURE PRESERVES
23 2026-27 2027-28
24 General Fund 1,650,800 1,633,900
25 Restricted Funds 2,640,900 2,622,900
26 Federal Funds 275,100 278,200
27 TOTAL 4,566,800 4,535,000
Page 63 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 7. PUBLIC SERVICE COMMISSION
2 2026-27 2027-28
3 General Fund 14,622,900 14,481,000
4 Restricted Funds 2,967,500 2,914,400
5 Federal Funds 1,108,300 1,119,900
6 TOTAL 18,698,700 18,515,300
7 (1) Siting and Construction of Nuclear Energy Facilities: Included in the
8 above appropriations is sufficient funding to implement and carry out the provisions of
9 2024 Ky. Acts ch. 29.
10 (2) Energy Planning and Inventory Commission: Included in the above
11 appropriations is sufficient funding to implement and carry out the provisions of 2024
12 Ky. Acts ch. 172.
13 (3) Additional Personnel: Included in the above General Fund appropriation is
14 $797,500 in fiscal year 2026-2027 and $822,200 in fiscal year 2027-2028 to support
15 additional personnel and operating expenses.
16 TOTAL - ENERGY AND ENVIRONMENT CABINET
17 2026-27 2027-28
18 General Fund (Tobacco) 2,659,600 2,457,900
19 General Fund 96,924,600 96,829,300
20 Restricted Funds 126,861,600 124,015,400
21 Federal Funds 284,909,300 286,133,400
22 TOTAL 511,355,100 509,436,000
23 F. FINANCE AND ADMINISTRATION CABINET
24 Budget Units
25 1. GENERAL ADMINISTRATION
26 2026-27 2027-28
27 General Fund 9,803,700 13,468,900
Page 64 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds 45,074,400 41,161,500
2 TOTAL 54,878,100 54,630,400
3 (1) Kentucky Affordable Prepaid Tuition Trust Fund: Included in the above
4 General Fund appropriation is $5,100,000 in fiscal year 2026-2027 and $5,600,000 in
5 fiscal year 2027-2028 to support projected tuition payments and refunds through fiscal
6 year 2025-2026.
7 2. CONTROLLER
8 2026-27 2027-28
9 General Fund 4,216,900 5,378,100
10 Restricted Funds 19,672,600 18,109,700
11 TOTAL 23,889,500 23,487,800
12 (1) Social Security Contingent Liability Fund: Any expenditures that may be
13 required by KRS 61.470 are hereby deemed necessary government expenses and shall be
14 paid first from the General Fund Surplus Account (KRS 48.700), if available, or from any
15 available balance in the Budget Reserve Trust Fund Account (KRS 48.705), subject to
16 the conditions and procedures provided in this Act.
17 (2) Controller Operations: Notwithstanding KRS 61.470, included in the above
18 Restricted Funds appropriations is $560,000 in fiscal year 2026-2027 and $140,000 in
19 fiscal year 2027-2028 to support the operations of the Office of the Controller.
20 3. DEBT SERVICE
21 2026-27 2027-28
22 General Fund (Tobacco) 14,100,200 13,880,800
23 General Fund 596,104,400 816,242,400
24 TOTAL 610,204,600 830,123,200
25 (1) Kentucky State Police Two-Way Radio Debt Service: Notwithstanding
26 KRS 150.021(2), the Department of Fish and Wildlife Resources shall transfer $599,200
27 in each fiscal year to the Finance and Administration Cabinet to partially support debt
Page 65 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 service on the Kentucky State Police Two-Way Radio System project.
2 (2) Debt Service: Included in the above General Fund appropriation is
3 $42,383,000 in fiscal year 2026-2027 and $103,824,000 in fiscal year 2027-2028 for new
4 debt service to support new bonds as set forth in Part II, Capital Projects Budget, of this
5 Act.
6 (3) Carry Forward of General Fund Appropriation Balance: Notwithstanding
7 KRS 45.229 and 48.720, General Fund in the amount of $18,500,000 in fiscal year 2025-
8 2026 shall not lapse and shall carry forward into fiscal year 2026-2027.
9 (4) Use of Restricted Funds for Debt Service: Notwithstanding KRS
10 218B.080(3), $12,000,000 in each fiscal year; notwithstanding KRS 286.1-485(3),
11 $9,000,000 in each fiscal year; notwithstanding KRS 42.4582, $6,500,000 in each fiscal
12 year; notwithstanding KRS 243.025(3), $6,000,000 in each fiscal year; and
13 notwithstanding KRS 14.140, $5,000,000 in each fiscal year, are hereby transferred to the
14 Debt Service Fund to be used to pay debt service on General Fund supported bonds
15 previously issued by the Commonwealth.
16 4. FACILITIES AND SUPPORT SERVICES
17 2026-27 2027-28
18 General Fund 9,100,200 9,000,500
19 Restricted Funds 57,654,700 57,117,600
20 TOTAL 66,754,900 66,118,100
21 (1) Capitol Annex Renovation: Notwithstanding KRS 42.425 and any statute to
22 the contrary, the administration and management of the Capitol Annex Renovation
23 project authorized in 2024 Ky. Acts ch. 175, Part II, F., 2., 009. shall be approved by the
24 Director of the Legislative Research Commission or his designee.
25 5. COUNTY COSTS
26 2026-27 2027-28
27 General Fund 29,243,500 29,243,500
Page 66 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds 1,702,500 1,702,500
2 TOTAL 30,946,000 30,946,000
3 (1) County Costs: Funds required to pay county costs are appropriated and
4 additional funds may be allotted from the General Fund Surplus Account (KRS 48.700)
5 or the Budget Reserve Trust Fund Account (KRS 48.705) by the Secretary of the Finance
6 and Administration Cabinet, subject to the conditions and procedures provided in this
7 Act.
8 (2) Reimbursement to Sheriffs’ Offices for Court Security Services:
9 Notwithstanding KRS 64.092(6), the sheriff or other law enforcement officer serving a
10 Circuit or District Court shall be compensated at the rate of $15 per hour of service. To
11 be eligible for this enhanced rate, deputies providing services must be paid at least $10
12 per hour.
13 6. COMMONWEALTH OFFICE OF TECHNOLOGY
14 2026-27 2027-28
15 Restricted Funds 136,597,800 134,398,500
16 Federal Funds 1,716,600 1,716,600
17 TOTAL 138,314,400 136,115,100
18 (1) Computer Services Fund Receipts: The Secretary of the Finance and
19 Administration Cabinet shall provide a listing of fee receipts from the Executive, Judicial,
20 and Legislative Branches of government itemized by appropriation units, cost allocation
21 methodology, and a report detailing the rebate of excess fee receipts to the agencies to the
22 Interim Joint Committee on Appropriations and Revenue by August 1 of each fiscal year.
23 (2) Legacy Modernization: The Commonwealth Office of Technology shall
24 prepare a report for the Legacy Modernization capital project authorized in 2024 Ky.
25 Acts ch. 175, Part II, F., 3., 001. The report shall include a list of legacy IT systems that
26 have been completed, the date in which they were completed, the state agency the IT
27 system was for, and a status report for the completion percentage of all other ongoing
Page 67 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 modernization projects. This report shall be submitted to the Interim Joint Committee on
2 Appropriations and Revenue by October 31 of each fiscal year.
3 (3) Security Enhancements: Included in the above Restricted Funds
4 appropriation is $625,800 in fiscal year 2026-2027 and $1,719,100 in fiscal year 2027-
5 2028 to support security enhancements in key areas such as email integrity, data
6 classification, directory resilience, and incident response and training.
7 (4) Centralized Registry of Artificial Intelligence Systems: Included in the
8 above appropriations is sufficient funding to implement and carry out the provisions of
9 2025 Ky. Acts ch. 66.
10 7. REVENUE
11 2026-27 2027-28
12 General Fund (Tobacco) 250,000 250,000
13 General Fund 123,420,800 125,474,400
14 Restricted Funds 12,448,900 12,448,900
15 Federal Funds 50,000 50,000
16 TOTAL 136,169,700 138,223,300
17 (1) Operations of Revenue: Notwithstanding KRS 132.672, 134.552(2),
18 136.652, and 365.390(2), funds may be expended in support of the operations of the
19 Department of Revenue.
20 (2) State Enforcement: Notwithstanding KRS 248.654 and 248.703(4), a total of
21 $250,000 of the Tobacco Settlement payments received in each fiscal year is appropriated
22 to the Finance and Administration Cabinet, Department of Revenue, for the state's
23 diligent enforcement of noncompliant nonparticipating manufacturers.
24 8. PROPERTY VALUATION ADMINISTRATORS
25 2026-27 2027-28
26 General Fund 64,978,600 64,663,500
27 Restricted Funds 4,786,400 4,786,000
Page 68 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 TOTAL 69,765,000 69,449,500
2 (1) Management of Expenditures: Notwithstanding KRS 132.590 and 132.597,
3 the property valuation administrators are authorized to take necessary actions to manage
4 expenditures within the appropriated amounts contained in this Act.
5 (2) Salary Increment: Notwithstanding KRS 132.590(3)(b), the increment
6 provided on the base salary or wages of each eligible property valuation administrator
7 shall be the same as that provided for eligible state employees in Part IV of this Act. The
8 placement and advancement on the proper step of the salary schedule for property
9 valuation administrators as set forth in 132.590(2) shall continue to apply. The increment
10 changes should be applied to the salary schedule for property valuation administrators for
11 the duration of this biennial budget.
12 **[(3) Use of Statewide Aerial Mapping System: Notwithstanding any statute
13 to the contrary, each Property Valuation Administrator shall utilize the Commonwealth’s
14 statewide aerial imagery and mapping program, KyFromAbove, as the source for aerial
15 mapping and imagery services used in the administration of property tax assessment
16 functions. All Property Valuation Administrators shall transition to use of the statewide
17 system on or before June 30, 2028. The Commonwealth Office of Technology shall
18 ensure coordination, technical assistance, and implementation support to facilitate
19 compliance with this requirement.]**
20 TOTAL - FINANCE AND ADMINISTRATION CABINET
21 2026-27 2027-28
22 General Fund (Tobacco) 14,350,200 14,130,800
23 General Fund 836,868,100 1,063,471,300
24 Restricted Funds 277,937,300 269,724,700
25 Federal Funds 1,766,600 1,766,600
26 TOTAL 1,130,922,200 1,349,093,400
27 G. HEALTH AND FAMILY SERVICES CABINET
Page 69 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Budget Units
2 1. GENERAL ADMINISTRATION AND PROGRAM SUPPORT
3 2026-27 2027-28
4 General Fund 8,116,000 7,857,600
5 Restricted Funds 80,657,000 79,204,200
6 Federal Funds 68,600,000 69,010,700
7 TOTAL 157,373,000 156,072,500
8 (1) Human Service Transportation Delivery: Notwithstanding KRS
9 281.010(28), the Kentucky Works Program shall not participate in the Human Service
10 Transportation Delivery Program or the Coordinated Transportation Advisory
11 Committee.
12 (2) Federally Funded Positions: Notwithstanding KRS 18A.010(2) and any
13 provisions of this Act to the contrary, direct service units of the Office of Inspector
14 General, Department for Income Support, Office for Children with Special Health Care
15 Needs, Department for Community Based Services, Department for Behavioral Health,
16 Developmental and Intellectual Disabilities, Department for Family Resource Centers
17 and Volunteer Services, Department for Aging and Independent Living, and the
18 Department for Public Health shall be authorized to establish and fill such positions that
19 are 100 percent federally funded for salary and fringe benefits.
20 (3) Special Olympics: Included in the above General Fund appropriation is
21 $144,000 in fiscal year 2026-2027 and $139,500 in fiscal year 2027-2028 to support the
22 operations of Special Olympics.
23 (4) Office of Medical Cannabis: Included in the above Restricted Funds
24 appropriation is $7,140,800 in each fiscal year to support the operations of the Office of
25 Medical Cannabis. The Office may increase fees as necessary to ensure continued
26 operation and functions.
27 (5) Parkinson’s Disease Registry: Included in the above appropriations is
Page 70 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 sufficient funding to implement and carry out the provisions of 2025 Ky. Acts ch. 85.
2 2. MEDICAID SERVICES
3 a. Medicaid Administration
4 2026-27 2027-28
5 General Fund 82,619,300 74,094,600
6 Restricted Funds 34,129,700 32,706,900
7 Federal Funds 241,290,600 224,326,100
8 TOTAL 358,039,600 331,127,600
9 (1) Transfer of Excess Administrative Funds for Medicaid Benefits: If any
10 portion of the above General Fund appropriation in either fiscal year is deemed to be in
11 excess of the necessary expenses for administration of the Department for Medicaid
12 Services, the amount may be used for Medicaid Benefits in accordance with statutes
13 governing the functions and activities of the Department for Medicaid Services. In no
14 instance shall these excess funds be used without prior written approval of the State
15 Budget Director to:
16 (a) Establish a new program;
17 (b) Expand the services of an existing program; or
18 (c) Increase rates or payment levels in an existing program.
19 Any transfer authorized under this subsection shall be approved by the Secretary of
20 the Finance and Administration Cabinet upon recommendation of the State Budget
21 Director.
22 (2) H.R. 1 - Community Engagement Program Implementation: Included in
23 the above appropriations is $8,137,900 in General Fund, $700,000 in Restricted Funds,
24 and $26,663,700 in Federal Funds in fiscal year 2026-2027 and $1,532,900 in General
25 Fund and $9,498,700 in Federal Funds in fiscal year 2027-2028 to support
26 implementation of a community engagement program and other needs as required by
27 House Resolution 1, Pub. L. No. 119-21. The Cabinet for Health and Family Services
Page 71 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 shall expend any federal grant funding received to assist with implementation activities
2 prior to expending the funds appropriated above.
3 b. Medicaid Benefits
4 2025-26 2026-27 2027-28
5 General Fund -0- 3,009,535,200 3,014,808,900
6 Restricted Funds 167,183,800 2,322,812,600 2,251,485,200
7 Federal Funds 405,900,000 18,277,466,700 18,253,375,400
8 TOTAL 573,083,800 23,609,814,500 23,519,669,500
9 (1) Intergovernmental Transfers (IGTs): Any funds received through an
10 Intergovernmental Transfer (IGT) agreement between the Department for Medicaid
11 Services and other governmental entities, in accordance with a federally approved State
12 Plan amendment, shall be used to provide for the health and welfare of the citizens of the
13 Commonwealth through the provision of Medicaid Benefits. Revenues from IGTs are
14 contingent upon agreement by the parties, including but not limited to the Cabinet for
15 Health and Family Services, Department for Medicaid Services, and the appropriate
16 government entity. The Secretary of the Cabinet for Health and Family Services shall
17 make the appropriate interim appropriations increase requests pursuant to KRS 48.630.
18 (2) Medicaid Benefits Budget Deficit: If Medicaid Benefits expenditures are
19 projected to exceed available funds, the Secretary of the Cabinet for Health and Family
20 Services may recommend and implement that reimbursement rates, optional services,
21 eligibles, or programs be reduced or maintained at levels existing at the time of the
22 projected deficit in order to avoid a budget deficit. The projected deficit shall be
23 confirmed and approved by the Office of State Budget Director. No rate, service, eligible,
24 or program reductions shall be implemented by the Cabinet for Health and Family
25 Services without prior written notice of such action to the Interim Joint Committee on
26 Appropriations and Revenue and the State Budget Director. Such actions taken by the
27 Cabinet for Health and Family Services shall be reported, upon request, at the next
Page 72 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 meeting of the Interim Joint Committee on Appropriations and Revenue.
2 (3) Disproportionate Share Hospital (DSH) Program: Hospitals shall report
3 the uncompensated care for which, under federal law, the hospital is eligible to receive
4 disproportionate share payments. Disproportionate share payments shall equal the
5 maximum amounts established under federal law. The Department for Medicaid Services
6 shall compile for each fiscal year a report on the total amount of disproportionate share
7 payments made to hospitals. The report shall identify the hospital receiving the DSH
8 payment, the amount of the payment, and the fund source of the payment. The report
9 shall be submitted to the Interim Joint Committee on Appropriations and Revenue and
10 the Medicaid Oversight and Advisory Board by November 15 of each fiscal year.
11 (4) Hospital Indigent Patient Billing: Hospitals shall not bill patients for
12 services if the services have been reported to the Cabinet and the hospital has received
13 disproportionate share payments for the specific services.
14 (5) Provider Tax Information: Any provider who posts a sign or includes
15 information on customer receipts or any material distributed for public consumption
16 indicating that it has paid provider tax shall also post, in the same size typeset as the
17 provider tax information, the amount of payment received from the Department for
18 Medicaid Services during the same period the provider tax was paid. Providers who fail
19 to meet this requirement shall be excluded from the Disproportionate Share Hospital and
20 Medicaid Programs. The Cabinet for Health and Family Services shall include this
21 provision in facilities' annual licensure inspections.
22 (6) Critical Access Hospitals: Beginning on the effective date of this Act
23 through June 30, 2028, no acute care hospital shall convert to a critical access hospital
24 unless the hospital has either received funding for a feasibility study from the Kentucky
25 Office of Rural Health or filed a written request by January 1, 2026, with the Kentucky
26 Office of Rural Health requesting funding for conducting a feasibility study.
27 (7) Appeals: An appeal from denial of a service or services provided by a
Page 73 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Medicaid managed care organization for medical necessity, or denial, limitation, or
2 termination of a health care service in a case involving a medical or surgical specialty or
3 subspecialty, shall, upon request of the recipient, authorized person, or provider, include
4 a review by a board-eligible or board-certified physician in the appropriate specialty or
5 subspecialty area; except in the case of a health care service rendered by a chiropractor or
6 optometrist, for which the denial shall be made respectively by a chiropractor or
7 optometrist duly licensed in Kentucky as specified in KRS 304.17A-607(1)(b). The
8 physician reviewer shall not have participated in the initial review and denial of service
9 and shall not be the provider of the service or services under consideration in the appeal.
10 (8) Medicaid Prescription Benefits Reporting: Notwithstanding KRS 205.647,
11 the Department for Medicaid Services shall submit a report to the Interim Joint
12 Committee on Appropriations and Revenue and the Medicaid Oversight and Advisory
13 Board by October 31 of each fiscal year on the dispensing of prescription medications to
14 persons eligible under KRS 205.560. The report shall include:
15 (a) The total Medicaid dollars paid to the state pharmacy benefit manager by a
16 managed care organization;
17 (b) The total amount of Medicaid dollars paid to the state pharmacy benefit
18 manager by a managed care organization which were not subsequently paid to a
19 pharmacy licensed in Kentucky;
20 (c) The average reimbursement by drug ingredient cost, dispensing fee, and any
21 other fee paid by the state pharmacy benefit manager to licensed pharmacies with which
22 the state pharmacy benefit manager shares common ownership, management, or control;
23 or which are owned, managed, or controlled by any of the state pharmacy benefit
24 manager's management companies, parent companies, subsidiary companies, jointly held
25 companies, or companies otherwise affiliated by a common owner, manager, or holding
26 company; or which share any common members on the board of directors; or which share
27 managers in common;
Page 74 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (d) The average reimbursement by drug ingredient cost, dispensing fee, or any
2 other fee paid by the state pharmacy benefit manager to pharmacies licensed in Kentucky
3 which operate 10 locations, 10 or fewer locations, or 10 or more locations; and
4 (e) All common ownership, management, common members of a board of
5 directors, shared managers, or control of the state pharmacy benefit manager, or any of
6 the state pharmacy benefit manager's management companies, parent companies,
7 subsidiary companies, jointly held companies, or companies otherwise affiliated by a
8 common owner, manager, or holding company with any managed care organization
9 contracted to administer Kentucky Medicaid benefits, any entity which contracts on
10 behalf of a pharmacy, or any pharmacy services administration organization, or any
11 common ownership management, common members of a board of directors, shared
12 managers, or control of a pharmacy services administration organization that is
13 contracted with the state pharmacy benefit manager, with any drug wholesaler or
14 distributor or any of the pharmacy services administration organizations, management
15 companies, parent companies, subsidiary companies, jointly held companies, or
16 companies otherwise affiliated by a common owner, common members of a board of
17 directors, manager, or holding company.
18 (9) Kentucky Access Fund: Notwithstanding KRS 304.17B-021, funds are
19 transferred from this source to Medicaid Benefits in each fiscal year.
20 (10) Michelle P. Waiver Slots: Included in the above appropriations is $1,064,700
21 in General Fund and $2,484,300 in Federal Funds in fiscal year 2026-2027 to support 65
22 additional slots and $1,801,800 in General Fund and $4,204,200 in Federal Funds in
23 fiscal year 2027-2028 to support 45 additional slots for a total of 110 slots over the 2026-
24 2028 fiscal biennium.
25 (11) Supports for Community Living Waiver Slots: Included in the above
26 appropriations is $3,091,500 in General Fund and $7,213,500 in Federal Funds in fiscal
27 year 2026-2027 to support 90 additional slots and $4,637,300 in General Fund and
Page 75 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 $10,820,300 in Federal Funds in fiscal year 2027-2028 to support 45 additional slots for a
2 total of 135 slots over the 2026-2028 fiscal biennium.
3 (12) Home and Community Based Waiver Slots: Included in the above
4 appropriations is $1,404,200 in General Fund and $3,276,400 in Federal Funds in fiscal
5 year 2026-2027 to support 115 additional slots and $1,953,600 in General Fund and
6 $4,558,400 in Federal Funds in fiscal year 2027-2028 to support 45 additional slots for a
7 total of 160 slots over the 2026-2028 fiscal biennium.
8 (13) Medicaid Benefits Program Support: Included in the above appropriation is
9 $55,983,800 in Restricted Funds in fiscal year 2025-2026 to support program needs.
10 (14) Certified Community Behavioral Health Clinics (CCBHC): Included in
11 the above General Fund appropriation is $2,441,400 in fiscal year 2027-2028 to maintain
12 services at the existing clinics participating in the CCBHC demonstration program, of
13 this amount $1,000,000 is a one-time allocation.
14 (15) Pharmacist Payment Parity: Included in the above General Fund
15 appropriation is $128,100 in fiscal year 2026-2027 to support the costs of administrative
16 activities, including creation of a new pharmacist provider type for implementation of
17 pharmacist payment parity in the Kentucky Medicaid and the Kentucky Children’s
18 Health Insurance Programs. Reimbursement for clinical services performed by
19 pharmacists within their scope of practice shall be paid at a rate no less than the rate paid
20 to other nonphysician practitioners for the delivery of similar services. The Department
21 for Medicaid Services shall submit a report on the implementation of pharmacist payment
22 parity within the Medicaid Program including a timeline of activities, expenditures
23 related to any required system updates and other administrative activities undertaken, and
24 expenditures associated with coverage of pharmacists’ services by fund source by
25 November 1 of each fiscal year to the Interim Joint Committee on Appropriations and
26 Revenue.
27 (16) MCO Payments: The Department for Medicaid Services or the Finance and
Page 76 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Administration Cabinet shall make 12 monthly payments in each fiscal year to Medicaid
2 managed care vendors contracted to provide services for the Medicaid program. All
3 payments due during a fiscal year shall be issued within that same fiscal year and shall
4 not be deferred, delayed, or transferred to a subsequent fiscal year.
5 (17) Medicaid Service Reductions: If it is deemed necessary to make reductions
6 in Medicaid services, a priority shall be made to reduce services not expressly authorized
7 by the General Assembly.
8 (18) Substance Use Disorder Programs: Included in the above appropriations is
9 sufficient funding to implement and carry out the provisions of 2024 Ky. Acts ch. 68.
10 (19) Behavioral and Mental Health Services: Included in the above
11 appropriations is sufficient funding to implement and carry out the provisions of 2025
12 Ky. Acts ch. 107.
13 (20) Medicaid Managed Care Organization Contracts: Included in the above
14 appropriations is sufficient funding to implement and carry out the provisions of 2025
15 Ky. Acts ch. 110.
16 (21) MCO Payments Reduction: Notwithstanding any statute to the contrary, the
17 Department for Medicaid Services or the Finance and Administration Cabinet shall
18 effectuate a 2.50 percent reduction in payments in Plan Year 2028 to Medicaid managed
19 care vendors contracted to provide services for the Medicaid Program. No reduction shall
20 be made in provider reimbursement rates. Any savings realized from the reduction in
21 MCO payments shall be used to increase reimbursement rates for services provided to
22 Medicaid fee-for-service (FFS) beneficiaries. All state directed payment programs
23 approved by the Centers for Medicare and Medicaid Services (CMS) pursuant to 42
24 C.F.R. sec. 438.6 shall be excluded from the above payment reduction.
25 (22) Community Intervener Services: The Department for Medicaid Services
26 shall promulgate any necessary administrative regulations or amend existing waiver
27 service definitions or policy to facilitate access to intervener services for deaf-blind
Page 77 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 participants within the Michelle P. waiver program. These services shall be designed to
2 support the independence and community integration of eligible participants.
3 (23) Appalachian Regional Hospital: Included in the above appropriations is
4 $14,600,000 in General Fund, $6,800,000 in Restricted Funds, and $85,000,000 in
5 Federal Funds in each fiscal year to support contracted psychiatric services provided
6 within Hospital District IV under KRS 210.300 and the Kentucky Community Access
7 and Rural Engagement (KCARE) managed care incentive program operated by the
8 Appalachian Regional Hospital as authorized under 42 C.F.R. sec. 438.6(b)(2). The
9 Department for Medicaid Services shall seek federal approval of the KCARE program by
10 the earlier of its next managed care contract submission to the Centers for Medicare and
11 Medicaid Services (CMS) or within 90 days upon enactment of this legislation. The
12 Department shall specify a contract effective date of July 1, 2026, when submitting the
13 application for federal approval of the KCARE Program. The General Assembly
14 encourages the Appalachian Regional Hospital KCARE Program to collaborate to the
15 fullest extent possible with other mental health providers in the region as it endeavors to
16 expand and improve access to the behavioral health system of eastern Kentucky.
17 (24) Medicaid State Directed Payments Program: Included in the above
18 appropriations is an additional $76,500,000 in Restricted Funds and $305,900,000 in
19 Federal Funds in fiscal year 2025-2026, $153,000,000 in Restricted Funds and
20 $611,700,000 in Federal Funds in fiscal year 2026-2027 and $145,300,000 in Restricted
21 Funds and $581,000,000 in Federal Funds in fiscal year 2027-2028 to support Medicaid
22 state directed payments.
23 (25) Dental Services Reimbursement Rebasing Efforts: The General Assembly
24 recognizes the importance of oral health in ensuring an individual’s overall wellbeing and
25 the need to address current reimbursement rates for dental services in the Kentucky
26 Medicaid Program. Notwithstanding KRS 304.2-400(2), included in the above Restricted
27 Funds appropriation is $8,000,000 in each fiscal year and included in the above Federal
Page 78 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Funds appropriation is $31,600,000 in each fiscal year to support an increase in
2 reimbursement rates for dental services provided to Medicaid eligible individuals. The
3 Technical Advisory Committee on Dental Care, authorized pursuant to KRS
4 205.590(1)(c), shall provide recommendations to the Cabinet for Health and Family
5 Services regarding the dental procedures to be given priority for increased Medicaid
6 reimbursement rates.
7 (26) Hospital-Based Ventilator Dependent Facilities: Included in the above
8 appropriations is an additional $2,700,000 in General Fund and $6,300,000 in Federal
9 Funds in each fiscal year to support an increase in the all-inclusive daily payment rate for
10 hospital-based ventilator dependent facilities that operate a distinct part ventilator unit
11 with more than 100 beds and a dedicated pediatric unit with 12 or more beds. It is the
12 intent of the 2026 General Assembly that these funds be used to increase the all-inclusive
13 daily payment rate from $982 to $1,220, effective January 1, 2026. Reimbursement for
14 drugs shall be established pursuant to 907 KAR Chapter 23 and shall not be included in
15 calculation of the all-inclusive daily payment rate. The Department for Medicaid Services
16 shall amend 907 KAR 1:025(6) and seek any necessary federal approval to implement
17 this rate increase.
18 (27) Medicaid Cost Settlements: Included in the above appropriations is an
19 additional $28,700,000 in Restricted Funds and $86,000,000 in Federal Funds in fiscal
20 year 2025-2026 to support Medicaid cost settlements related to the Department for
21 Community Based Services and the Department for Behavioral Health, Developmental
22 and Intellectual Disabilities within the Cabinet for Health and Family Services.
23 (28) Medicaid DSH Payments: Included in the above appropriations is an
24 additional $6,000,000 in Restricted Funds and $14,000,000 in Federal Funds in fiscal
25 year 2025-2026, $3,000,000 in Restricted Funds and $4,000,000 in Federal Funds in
26 fiscal year 2026-2027, and $3,000,000 in Restricted Funds and $4,000,000 in Federal
27 Funds in fiscal year 2027-2028 to support Medicaid DSH payments related to the
Page 79 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Department for Behavioral Health, Developmental and Intellectual Disabilities within the
2 Cabinet for Health and Family Services.
3 TOTAL - MEDICAID SERVICES
4 2025-26 2026-27 2027-28
5 General Fund -0- 3,092,154,500 3,088,903,500
6 Restricted Funds 167,183,800 2,356,942,300 2,284,192,100
7 Federal Funds 405,900,000 18,518,757,300 18,477,701,500
8 TOTAL 573,083,800 23,967,854,100 23,850,797,100
9 3. BEHAVIORAL HEALTH, DEVELOPMENTAL AND INTELLECTUAL
10 DISABILITIES
11 2026-27 2027-28
12 General Fund (Tobacco) 1,152,500 1,065,100
13 General Fund 191,048,300 189,372,200
14 Restricted Funds 268,266,000 269,350,900
15 Federal Funds 98,751,200 98,921,400
16 TOTAL 559,218,000 558,709,600
17 (1) Disproportionate Share Hospital Funds: Pursuant to KRS 205.640(3)(a)2.,
18 mental health disproportionate share funds are budgeted at the maximum amounts
19 permitted by Section 1923(h) of the Social Security Act. Upon publication in the Federal
20 Register of the Annual Institutions for Mental Disease (IMD) Disproportionate Share
21 Hospital (DSH) limit, 92.3 percent of the federal IMD DSH limit goes to the state-
22 operated mental hospitals. If there are remaining funds within the psychiatric pool after
23 all private psychiatric hospitals reach their hospital-specific DSH limit, state mental
24 hospitals may exceed the 92.3 percent limit but may not exceed their hospital-specific
25 DSH limit.
26 (2) Lease Payments for Eastern State Hospital: Included in the above General
27 Fund appropriation is $9,807,300 in fiscal year 2026-2027 and $9,808,000 in fiscal year
Page 80 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 2027-2028 to make lease payments to the Lexington-Fayette Urban County Government
2 to retire its debt for the construction of the new facility.
3 (3) Tobacco Settlement Funds: Included in the above General Fund (Tobacco)
4 appropriation is $1,152,500 in fiscal year 2026-2027 and $1,065,100 in fiscal year 2027-
5 2028 for substance abuse prevention and treatment for pregnant women with a history of
6 substance abuse problems.
7 (4) Substance Abuse Funding Report: The Department for Behavioral Health,
8 Developmental and Intellectual Disabilities shall compile for each fiscal year a report on
9 the funding received by the Cabinet for Health and Family Services to provide substance
10 abuse prevention, treatment, and recovery services in the Commonwealth. The report
11 shall include the amount, source, and duration of the funding, the purpose of the funding,
12 the number of individuals served, and any available information on outcomes
13 demonstrated as a result of the funding provided for substance abuse prevention,
14 treatment, and recovery services. The report shall be submitted to the Legislative
15 Research Commission, Office of Budget Review, by September 1 of each fiscal year.
16 (5) The Healing Place: Included in the above General Fund appropriation is
17 $1,440,000 in fiscal year 2026-2027 and $1,395,000 in fiscal year 2027-2028 to support
18 direct services to clients provided by The Healing Place.
19 (6) Residential Facilities Services: Included in the above General Fund
20 appropriation is $20,000,000 in each fiscal year to support increased costs related to
21 staffing and an increased patient census in state run psychiatric and ICF/ID facilities.
22 (7) Lee Specialty Clinic: Included in the above General Fund appropriation is
23 $720,000 in fiscal year 2026-2027 and $697,500 in fiscal year 2027-2028 to support
24 specialty medical services for individuals with moderate developmental and intellectual
25 disabilities living in residential and community settings.
26 (8) Barren River Area Development District: Notwithstanding KRS 45.229,
27 any unexpended funds authorized in 2024 Ky. Acts ch. 173, sec. 1, (187) to establish a
Page 81 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 regional substance use disorder services pilot program shall not lapse and shall carry
2 forward.
3 4. PUBLIC HEALTH
4 2026-27 2027-28
5 General Fund (Tobacco) 9,379,700 8,668,100
6 General Fund 84,190,200 83,154,700
7 Restricted Funds 148,707,500 152,411,600
8 Federal Funds 510,150,900 499,317,300
9 TOTAL 752,428,300 743,551,700
10 (1) Tobacco Settlement Funds: Included in the above General Fund (Tobacco)
11 appropriation is $5,301,500 in fiscal year 2026-2027 and $4,899,400 in fiscal year 2027-
12 2028 for the Health Access Nurturing Development Services (HANDS) Program,
13 $620,600 in fiscal year 2026-2027 and $573,500 in fiscal year 2027-2028 for the Healthy
14 Start Initiatives, $620,600 in fiscal year 2026-2027 and $573,500 in fiscal year 2027-
15 2028 for Early Childhood Mental Health, $620,600 in fiscal year 2026-2027 for Early
16 Childhood Oral Health, $443,300 in fiscal year 2026-2027 and $983,100 in fiscal year
17 2027-2028 for the Lung Cancer Screening Program, and $1,773,100 in fiscal year 2026-
18 2027 and $1,638,600 in fiscal year 2027-2028 for Smoking Cessation. Included in the
19 above Restricted Funds appropriation is $573,500 in fiscal year 2027-2028 from interest
20 income from the Kentucky Healthcare Improvement Fund for Early Childhood Oral
21 Health.
22 (2) Local and District Health Department Fees: Notwithstanding KRS 211.170
23 and 211.186, local and district health departments shall retain 90 percent of the fees
24 collected for delivering foundational public health program services to fund the costs of
25 operations, services, and the employer contributions for the Kentucky Employees
26 Retirement System.
27 (3) Kentucky Pediatric Cancer Research Trust Fund: Included in the above
Page 82 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 General Fund appropriation is $5,000,000 in each fiscal year to the Kentucky Pediatric
2 Cancer Research Trust Fund for general pediatric cancer research and support of
3 expansion of clinical trials at the University of Kentucky and the University of Louisville.
4 (4) Lung Cancer Screening MCO: Each Medicaid Managed Care Organization
5 that has a participating contract with the Commonwealth for the next contract renewal
6 cycle shall provide services for lung cancer screenings, which may include genetic
7 prescreen testing.
8 (5) Area Health Education Centers: Included in the above General Fund
9 appropriation is $2,400,000 in fiscal year 2026-2027 and $2,325,000 in fiscal year 2027-
10 2028 to support the operations of the Commonwealth’s eight regional Area Health
11 Education Centers.
12 (6) Rural Health Transformation Fund: Included in the above Federal Funds
13 appropriation is $212,905,600 in each fiscal year from the Rural Health Transformation
14 Fund. The Cabinet for Health and Family Services shall prepare a report, including but
15 not limited to expenditures from the Rural Health Transformation Fund, a description of
16 the activities and methods being implemented within each identified area of focus, a list
17 delineating subrecipients of grant funds, and any entities being contracted to perform
18 services. The Cabinet shall submit this report on a quarterly basis to the Medicaid
19 Oversight and Advisory Board beginning November 1, 2026.
20 (7) Kentucky Poison Control Center: Included in the above General Fund
21 appropriation is $1,000,000 in each fiscal year to support the Kentucky Poison Control
22 Center.
23 (8) Kentucky Colon Cancer Screening Program: Included in the above
24 General Fund appropriation is $480,000 in fiscal year 2026-2027 and $465,000 in fiscal
25 year 2027-2028 to support the Kentucky Colon Cancer Screening Program.
26 (9) Vital Statistics: Included in the above Restricted Funds appropriation is
27 $1,640,800 in each fiscal year to support increased operating costs within the Office of
Page 83 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Vital Statistics.
2 (10) Drug and Supplement Testing: Included in the above Restricted Funds
3 appropriation is $2,000,000 in fiscal year 2026-2027 and $2,750,000 in fiscal year 2027-
4 2028 to support mandated medical marijuana and edible analysis and testing.
5 (11) Ryan White Program: Included in the above Restricted Funds appropriation
6 is $4,000,000 in fiscal year 2026-2027 and $6,000,000 in fiscal year 2027-2028 to
7 support participation growth in the Ryan White Program and to address increased
8 medication costs.
9 5. FAMILY RESOURCE CENTERS AND VOLUNTEER SERVICES
10 2026-27 2027-28
11 General Fund 26,617,200 26,660,700
12 Federal Funds 12,568,000 12,577,800
13 TOTAL 39,185,200 39,238,500
14 (1) Family Resource and Youth Services Centers Funds: No more than two
15 percent of the total funds transferred from the Department of Education to the Family
16 Resource and Youth Services Centers, as consistent with KRS 156.496, shall be used for
17 administrative purposes in each fiscal year.
18 6. COMMUNITY BASED SERVICES
19 2026-27 2027-28
20 General Fund (Tobacco) 10,195,200 9,421,900
21 General Fund 746,196,400 751,284,800
22 Restricted Funds 187,229,700 182,967,400
23 Federal Funds 935,267,400 922,672,800
24 TOTAL 1,878,888,700 1,866,346,900
25 (1) Tobacco Settlement Funds: Included in the above General Fund (Tobacco)
26 appropriation is $8,422,100 in fiscal year 2026-2027 and $7,783,300 in fiscal year 2027-
27 2028 for the Early Childhood Development Program and $1,773,100 in fiscal year 2026-
Page 84 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 2027 and $1,638,600 in fiscal year 2027-2028 for the Early Childhood Adoption and
2 Foster Care Supports Program.
3 (2) Fostering Success: Included in the above General Fund appropriation is
4 $480,000 in fiscal year 2026-2027 and $465,000 in fiscal year 2027-2028 to support the
5 Fostering Success Program.
6 (3) Dually Licensed Pediatric Facilities: Included in the above General Fund
7 appropriation is $528,000 in fiscal year 2026-2027 and $511,500 in fiscal year 2027-2028
8 to provide supplemental payments to dually licensed pediatric facilities for emergency
9 shelter services for children.
10 (4) Child Care Assistance Program: Included in the above General Fund
11 appropriation is $10,176,000 in fiscal year 2026-2027 and $9,858,000 in fiscal year 2027-
12 2028 to provide services to families at or below 160 percent of the federal poverty level
13 as determined annually by the U.S. Department of Health and Human Services. The
14 Cabinet for Health and Family Services shall submit a report to the Interim Joint
15 Committee on Appropriations and Revenue no later than November 1, 2026, detailing
16 payment timelines to child care providers participating in the Child Care Assistance
17 Program. The report shall include, but not be limited to the average number of calendar
18 days between the receipt of a completed claim and the issuance of payment to the
19 provider; the total number of claims where payment was beyond 30 days from the date of
20 submission; and a detailed justification for any claims exceeding the 30-day threshold,
21 categorized by administrative, technical, or investigative delays.
22 (5) Personal Care Homes: Included in the above General Fund appropriation is
23 $12,000,000 in each fiscal year to support reimbursements provided to personal care
24 homes.
25 (6) Children's Services Contractors: Notwithstanding KRS Chapter 45A, no
26 contracts awarded for the use and benefit of the Department for Community Based
27 Services shall interfere with the contractor’s freedom of religion as set forth in KRS
Page 85 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 446.350. Any such contracts shall contain a provision allowing a contractor to allow a
2 substitute contractor who is also licensed or approved by the Cabinet to deliver the
3 contracted services if the contractor cannot perform a contracted service because of
4 sincerely held religious beliefs as outlined in KRS 446.350.
5 (7) Victims Advocacy Programs: Included in the above General Fund
6 appropriation is $10,557,700 in each fiscal year for the Children's Advocacy Centers,
7 $13,912,700 in each fiscal year for the Domestic Violence Shelters, and $7,776,100 in
8 each fiscal year for the Rape Crisis Centers to support operational costs.
9 (8) Employee Child Care Assistance Partnership: Included in the above
10 General Fund appropriation is $1,000,000 in each fiscal year to support the Employee
11 Child Care Assistance Partnership for matching contributions. There shall be a two
12 percent cap on administrative costs for the oversight of this program. Notwithstanding
13 KRS 45.229, any General Fund amounts appropriated for matching contributions in fiscal
14 year 2025-2026 and fiscal year 2026-2027 shall not lapse and shall carry forward.
15 (9) Volunteers of America - Family Recovery Court: Included in the above
16 General Fund appropriation is $480,000 in fiscal year 2026-2027 and $465,000 in fiscal
17 year 2027-2028 to support the operations of the Volunteers of America - Family
18 Recovery Court.
19 (10) Family Scholar House: Included in the above General Fund appropriation is
20 $960,000 in fiscal year 2026-2027 and $930,000 in fiscal year 2027-2028 to support the
21 operations of the Family Scholar House.
22 (11) Maryhurst: Included in the above General Fund appropriation is $1,350,000
23 in each fiscal year to provide a reimbursement rate increase for children in the 5
24 Specialized Programs.
25 (12) Foster Care Independent Living: Included in the above General Fund
26 appropriation is $1,920,000 in fiscal year 2026-2027 and $1,860,000 in fiscal year 2027-
27 2028 for independent living supports to children aging out of the foster care system.
Page 86 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (13) Child Care Assistance Program (CCAP) Initiatives: Included in the above
2 General Fund appropriation is $18,680,000 in fiscal year 2026-2027 and $18,065,000 in
3 fiscal year 2027-2028 to support the CCAP initiative.
4 The appropriations shall be allocated to the individual programs as follows:
5 (a) $17,240,000 in fiscal year 2026-2027 and $16,670,000 in fiscal year 2027-
6 2028 to support an income exclusion from eligibility determinations for child care
7 providers; and
8 (b) $1,440,000 in General Fund in fiscal year 2026-2027 and $1,395,000 in fiscal
9 year 2027-2028 to support a six-month transition for families no longer eligible for
10 CCAP benefits.
11 (14) Early Childhood Development Scholarship Program: Included in the
12 above General Fund appropriation is $2,400,000 in fiscal year 2026-2027 and $2,325,000
13 in fiscal year 2027-2028 to support the Early Childhood Development Scholarship
14 Program.
15 (15) Supplemental Nutrition Assistance Program (SNAP) Administration:
16 Included in the above General Fund appropriation is $43,500,000 in fiscal year 2026-
17 2027 and $58,000,000 in fiscal year 2027-2028 to support the increased state share of
18 SNAP administrative cost responsibility from 50 percent to 75 percent, as required by
19 H.R. 1 of the 119th Congress.
20 (16) Adoption Records: Included in the above appropriations is sufficient funding
21 to implement and carry out the provisions of 2024 Ky. Acts ch. 43.
22 (17) Child Care Benefits: Included in the above appropriations is sufficient
23 funding to implement and carry out the provisions of 2024 Ky. Acts ch. 84.
24 (18) Relative and Fictive Kin Caregivers: Included in the above General Fund
25 appropriation is $6,000,000 in each fiscal year**[ to provide sufficient funding for the
26 maintenance of effort necessary to maximize available federal funds to implement the
27 provisions of 2024 Ky. Acts ch. 85]**. Federal funds shall include but are not limited to
Page 87 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 funds available through foster care maintenance payments in Title IV-E of the Social
2 Security Act and the Temporary Assistance for Needy Families block grant under Title
3 IV-A of the Social Security Act.
4 Pursuant to KRS 620.142(4), the custodial, permanency, and service options
5 provided to relative and fictive caregivers shall reflect nationally recognized best
6 practices. The Cabinet for Health and Family Services shall include Title IV-E compliant
7 provisional licensing for relatives and fictive kin through revised administrative
8 regulation (922 KAR) in order to maximize federal funding available for relative or
9 fictive kin foster parent payments. Such provisional licensing shall include provisional
10 approval within five days of placement, immediate satisfaction of all federal safety
11 requirements, a 120-day window to complete non-safety requirements (training, home
12 study), and a provisional approval process to qualify these homes for Title IV-E foster
13 care maintenance payment purposes.
14 Pursuant to KRS 620.142(3), within 120 days of receiving temporary custody of a
15 child or upon the occurrence of a verifiable qualifying event, a relative or fictive kin
16 caregiver may submit a request to the Cabinet for Health and Family Services for the
17 purpose of pursuing a change in custody of the child in his or her care. Upon preliminary
18 approval of the request, the Cabinet for Health and Family Services may request that the
19 court place the child in the custody of the Cabinet for the purpose of allowing the relative
20 or fictive kin caregiver to pursue approval as a relative or fictive kin foster parent. Upon
21 placement of the child in the custody of the Cabinet, the relative or fictive kin caregiver
22 shall pursue foster parent approval.
23 For purposes of KRS 620.142(3), a "qualifying event" shall include the death or
24 incapacitation of a caregiver; loss of income due to disability; early or unplanned
25 retirement due to a documented hardship, including medical necessity or employer-
26 mandated separation, resulting in a substantial loss of income; loss of a home or
27 employment due to a natural disaster or fire; a change in household structure due to
Page 88 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 divorce or legal separation; or a significant change in the child's medical or behavioral
2 health needs requiring substantial caregiver involvement.
3 Nothing in this subsection shall be construed to relieve a child’s biological or legal
4 parents of their continuing statutory and legal duty to support and provide for the child.
5 For any child involved in a juvenile court proceeding who is in state custody or placed by
6 the Cabinet in an out-of-home setting, including but not limited to placement with fictive
7 kin or relatives, the Cabinet shall immediately initiate proceedings to establish a child
8 support order in favor of the Commonwealth and shall take all necessary steps to enforce
9 such order for the duration of the child’s placement or state custody.
10 The Cabinet shall coordinate, as appropriate, with the state agency responsible for
11 child support enforcement to ensure timely establishment, modification, and enforcement
12 of support obligations. Any support collected by the state shall be applied in accordance
13 with state law for the benefit of the child.
14 Efforts to establish or enforce child support shall not delay permanency planning or
15 placement decisions made in the best interests of the child.
16 (19) Dependency, Neglect, or Abuse of a Child: Included in the above
17 appropriations is sufficient funding to implement and carry out the provisions of 2024
18 Ky. Acts ch. 133 and 144.
19 (20) Truancy: Included in the above appropriations is sufficient funding to
20 implement and carry out the provisions of 2024 Ky. Acts ch. 163.
21 (21) Out of Home Care: Included in the above Restricted Funds appropriation is
22 $22,000,000 in each fiscal year from the Out of Home Care Replacement Fund to
23 maintain existing support for foster care and kinship care programs to enhance
24 specialized services for children with exceptional needs to assist in identifying and
25 securing supportive placements. The Department of Community Based Services shall
26 utilize federal funds from the Temporary Assistance for Needy Families block grant**[ to
27 the fullest extent possible]** and shall expend any additional available reserves before
Page 89 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 expending the Restricted Funds from the Out of Home Care Replacement Fund. The
2 Department shall submit a quarterly report detailing the expenditures and fund sources
3 for all out of home care services beginning November 1, 2026, to the Interim Joint
4 Committee on Appropriations and Revenue.
5 (22) Kentucky United Methodist Children’s Homes: Included in the above
6 General Fund appropriation is $102,100 in fiscal year 2026-2027 to reimburse the
7 Kentucky United Methodist Children’s Homes Independent Living Program for
8 providing therapeutic services to youth in state custody.
9 (23) Sunrise Children’s Services: Included in the above General Fund
10 appropriation is $2,200 in fiscal year 2026-2027 to reimburse the Sunrise Children’s
11 Services Independent Living Program for providing therapeutic services to youth in state
12 custody.
13 (24) Youth Villages Intercept Program: Included in the above appropriations is
14 $6,378,600 in General Fund and $6,396,400 in Federal Funds in fiscal year 2026-2027
15 and $7,792,300 in General Fund and $8,997,700 in Federal Funds in fiscal year 2027-
16 2028 for the Youth Villages Intercept Program.
17 7. AGING AND INDEPENDENT LIVING
18 2026-27 2027-28
19 General Fund 49,046,900 47,865,500
20 Restricted Funds 4,069,800 4,030,300
21 Federal Funds 38,575,700 38,625,600
22 TOTAL 91,692,400 90,521,400
23 (1) Local Match Requirements: Notwithstanding KRS 205.460, entities
24 contracting with the Cabinet for Health and Family Services to provide essential services
25 under KRS 205.455 and 205.460 shall provide local match equal to or greater than the
26 amount in effect during fiscal year 2025-2026. Local match may include any combination
27 of materials, commodities, transportation, office space, personal services, or other types
Page 90 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 of facility services or funds. The Secretary of the Cabinet for Health and Family Services
2 shall prescribe the procedures to certify the local match compliance.
3 (2) Hart-Supported Living Program: Included in the above General Fund
4 appropriation is $6,288,100 in each fiscal year to support the Hart-Supported Living
5 Program.
6 TOTAL - HEALTH AND FAMILY SERVICES CABINET
7 2025-26 2026-27 2027-28
8 General Fund (Tobacco) -0- 20,727,400 19,155,100
9 General Fund -0- 4,197,369,500 4,195,099,000
10 Restricted Funds 167,183,800 3,045,872,300 2,972,156,500
11 Federal Funds 405,900,000 20,182,670,500 20,118,827,100
12 TOTAL 573,083,800 27,446,639,700 27,305,237,700
13 H. JUSTICE AND PUBLIC SAFETY CABINET
14 Budget Units
15 1. JUSTICE ADMINISTRATION
16 2026-27 2027-28
17 General Fund (Tobacco) 2,881,200 2,662,700
18 General Fund 44,784,200 45,448,000
19 Restricted Funds 3,241,300 2,998,900
20 Federal Funds 34,895,200 34,883,700
21 TOTAL 85,801,900 85,993,300
22 (1) Operation UNITE: (a) Included in the above General Fund appropriation
23 is $1,440,000 in fiscal year 2026-2027 and $1,395,000 in fiscal year 2027-2028 for the
24 Operation UNITE Program.
25 (b) For the periods ending June 30, 2026, and June 30, 2027, the Secretary of the
26 Justice and Public Safety Cabinet, in coordination with the Chief Executive Officer of
27 Operation UNITE, shall prepare reports detailing for what purpose and function the funds
Page 91 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 were utilized. The reports shall be submitted to the Interim Joint Committee on
2 Appropriations and Revenue by September 1 of each fiscal year.
3 (2) Office of Drug Control Policy: Included in the above General Fund
4 (Tobacco) appropriation is $2,659,600 in fiscal year 2026-2027 and $2,457,900 in fiscal
5 year 2027-2028 for the Office of Drug Control Policy.
6 (3) Court-Appointed Special Advocate Funding: Included in the above General
7 Fund appropriation is $3,000,000 in each fiscal year for grants to support Court-
8 Appointed Special Advocate (CASA) funding programs. No administrative costs shall be
9 paid from this appropriation.
10 (4) Restorative Justice: Included in the above General Fund (Tobacco)
11 appropriation is $221,600 in fiscal year 2026-2027 and $204,800 in fiscal year 2027-2028
12 to support the Restorative Justice Program administered by the Volunteers of America.
13 (5) Northern Kentucky Regional Medical Examiner's Office: Notwithstanding
14 KRS 45.229, any unexpended funds from the $1,800,000 authorized in 2022 Ky. Acts ch.
15 199, Part I, H., 1., (11) to reestablish the Northern Kentucky Regional Medical
16 Examiners Office shall not lapse and shall carry forward.
17 (6) Substance Abuse Treatment Programs: The Secretary of the Justice and
18 Public Safety Cabinet shall compile for each fiscal year a report on funding received by
19 the Cabinet to provide substance abuse treatment, prevention, and recovery programs in
20 the Commonwealth. The report shall include the amount, source, and duration of the
21 funding, the purpose of the funding, the number of individuals served, and any available
22 information on program outcomes. The Secretary shall submit the report to the Interim
23 Joint Committee on Appropriations and Revenue by September 1 of each year.
24 (7) Rocket Docket Program: Notwithstanding KRS 196.288(5)(b)8., included in
25 the above General Fund appropriation is $1,940,000 in fiscal year 2026-2027 and
26 $1,860,000 in fiscal year 2027-2028, which shall be allocated annually in quarterly
27 payments, to support the Rocket Docket Program at the Prosecutors Advisory Council.
Page 92 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (8) Northern Kentucky Medical Examiner's Office: Included in the above
2 General Fund appropriation is $1,618,700 in fiscal year 2027-2028 to support the staffing
3 of the Northern Kentucky Medical Examiner's Office.
4 2. CRIMINAL JUSTICE TRAINING
5 2026-27 2027-28
6 Restricted Funds 140,458,200 129,117,900
7 (1) Kentucky Law Enforcement Foundation Program Fund: Included in the
8 above Restricted Funds appropriation is $136,842,500 in fiscal year 2026-2027 and
9 $141,362,800 in fiscal year 2027-2028 for the Kentucky Law Enforcement Foundation
10 Program Fund.
11 (2) Training Incentive Payments: Notwithstanding KRS 15.460(1) and
12 15.420(2)(a)1.a., included in the above Restricted Funds appropriation is $4,653 in fiscal
13 year 2026-2027 and $4,746 in fiscal year 2027-2028 for each full-time participant for
14 training incentive payments, and $2,327 in fiscal year 2026-2027 and $2,373 in fiscal
15 year 2027-2028 for each part-time participant for training incentive payments. KRS
16 15.460(1)(b) to (f) shall remain applicable, except that the administrative expense
17 reimbursement cap under KRS 15.460(1)(c)3. shall not exceed $1,000,000.
18 (3) Administrative Reimbursement: Notwithstanding KRS 15.450(3), the
19 Department of Criminal Justice Training shall not receive reimbursement for the salaries
20 and other costs of administering the fund, to include the Kentucky Law Enforcement
21 Council operations and expenses, Peace Officers Professional Standards Office, attorney
22 positions in Justice Administration, the Professional Development and Wellness Branch,
23 Office of the State School Security Marshal, Office of Kentucky Law Enforcement
24 Council Support, debt service, capital outlay, and Department personnel costs and
25 expenses in excess of $42,551,900 in fiscal year 2026-2027 and $43,000,700 in fiscal
26 year 2027-2028. The Department shall submit a report detailing reimbursed expenditures
27 for the prior fiscal year to the Interim Joint Committee on Appropriations and Revenue
Page 93 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 by August 1 of each fiscal year.
2 (4) Criminal Justice Council: Pursuant to KRS 15.410 to 15.518, the
3 Department of Criminal Justice Training shall not transfer funds from the Kentucky Law
4 Enforcement Foundation Program Fund to support the Criminal Justice Council.
5 (5) Kentucky Law Enforcement Council Funding: Notwithstanding KRS
6 15.450 and any other statute to the contrary, funding to support the operations of the
7 Kentucky Law Enforcement Council shall not exceed $622,900 in fiscal year 2026-2027
8 and $603,500 in fiscal year 2027-2028.
9 (6) Operating Cost Increases: Included in the above Restricted Funds
10 appropriation is $864,100 in fiscal year 2026-2027 and $764,100 in fiscal year 2027-2028
11 to support various operating cost increases.
12 (7) Additional Staff: Included in the above Restricted Funds appropriation is
13 $106,100 in fiscal year 2026-2027 and $110,900 in fiscal year 2027-2028 for additional
14 staff.
15 (8) Middletown Firing Range: Included in the above Restricted Funds
16 appropriation is $15,000,000 in fiscal year 2026-2027 and $10,000,000 in fiscal year
17 2027-2028 to be paid to the city of Middletown to construct a firing range for statewide
18 law enforcement training use.
19 (9) Louisville Driving Track: Included in the above Restricted Funds
20 appropriation is $5,000,000 in fiscal year 2026-2027 to be paid to the city of Louisville to
21 construct a driving track for statewide law enforcement training use.
22 3. JUVENILE JUSTICE
23 2026-27 2027-28
24 General Fund 173,572,500 182,026,800
25 Restricted Funds 13,731,900 13,892,100
26 Federal Funds 10,951,700 10,951,700
27 TOTAL 198,256,100 206,870,600
Page 94 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (1) Evidence-Based Programming: The Department of Juvenile Justice shall
2 prepare a report detailing expenditures for evidence-based programming provided by the
3 Department, as well as the number of youth served by each program, the number of filled
4 positions providing services and the number of program vacancies, the number of youth
5 on waitlists for services, and any other key performance indicators deemed appropriate
6 by the Department. The Department of Juvenile Justice shall submit this report on a
7 quarterly basis to the Interim Joint Committee on Appropriations and Revenue and the
8 Juvenile Justice Oversight Council beginning November 1, 2026.
9 (2) Louisville Detention Center Renovation: The Department of Juvenile
10 Justice shall submit a report to the Interim Joint Committee on Appropriations and
11 Revenue by September 1, 2026, detailing the status, progress, and current expenditures of
12 the Renovate Louisville Detention Center project authorized in 2024 Ky. Acts ch. 175,
13 Part II, H., 3., 002.
14 (3) Juvenile High-Acuity Mental Health Treatment Services: (a)
15 Notwithstanding any statute to the contrary, The Justice and Public Safety Cabinet,
16 in coordination with the Department of Juvenile Justice, shall, no later than July 1, 2026,
17 issue a Request for Information to solicit input and assess feasibility regarding the
18 planning, development, and delivery of high-acuity mental health treatment services for
19 juveniles, including the potential construction of a treatment facility. In reviewing
20 responses, the Cabinet shall consider only healthcare providers that qualify for enhanced
21 Medicaid reimbursement, including those eligible for a prospective payment system rate,
22 an all-inclusive rate, or an equivalent reimbursement methodology.
23 (b) The Request for Information shall require submissions to address, at a
24 minimum, the following: evidence-based practices for high acuity behavioral health
25 services; demonstrated expertise and operational capacity; cost-effectiveness and long-
26 term sustainability; the proposed service delivery model; partnership structure and
27 accountability measures; and plans for data collection, performance metrics, and outcome
Page 95 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 evaluation.
2 (c) The Cabinet shall submit a report by November 1, 2026, to the Interim Joint
3 Committee on Appropriations and Revenue, including a summary of all responses to the
4 Request for Information, an overview of the evaluation process, and any resulting
5 findings or recommendations. It is the intent of the General Assembly to authorize the
6 use of funds from the Budget Reserve Trust Fund if the Request for Information results in
7 a viable project, including a defined cost estimate and a feasible timeline for the
8 implementation of the project for the delivery of services.
9 (4) Jefferson Detention Facilities' Personnel and Operating: Included in the
10 above General Fund appropriation is $6,515,300 in fiscal year 2026-2027 and
11 $12,019,800 in fiscal year 2027-2028 to support the Jefferson Regional Detention Center
12 in Lyndon and the Jefferson County Youth Detention Center in downtown Louisville.
13 (5) Design-Build Project Delivery Method: Notwithstanding any statute to the
14 contrary, the design-build project delivery method, as defined in KRS 45A.030(13), may
15 be used to maximize cost savings for projects authorized in Part II, H., 3., 001. of this
16 Act.
17 4. STATE POLICE
18 2026-27 2027-28
19 General Fund 244,138,500 250,930,200
20 Restricted Funds 35,475,300 34,828,700
21 Federal Funds 23,274,500 23,216,300
22 Road Fund 55,582,600 57,940,100
23 TOTAL 358,470,900 366,915,300
24 (1) Call to Extraordinary Duty: There is appropriated from the General Fund to
25 the Department of Kentucky State Police, subject to the conditions and procedures
26 provided in this Act, funds which are required as a result of the Governor's call of the
27 Kentucky State Police to extraordinary duty when an emergency situation has been
Page 96 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 declared to exist by the Governor. Funding is authorized to be provided from the General
2 Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund Account (KRS
3 48.705).
4 (2) Restricted Funds Uses: Notwithstanding KRS 24A.179, 42.320(2)(h),
5 65.7631, 189A.050(3)(a), 237.110(18), and 281A.160(2)(b), funds are included in the
6 above Restricted Funds appropriation to maintain the operations and administration of the
7 Department of Kentucky State Police.
8 (3) Training Incentive Payments: Notwithstanding KRS 15.460(1), included in
9 the above Restricted Funds appropriation is $4,653 in fiscal year 2026-2027 and $4,746
10 in fiscal year 2027-2028 for each participant for training incentive payments.
11 (4) Support for Statewide Law Enforcement Purposes: Included in the above
12 Restricted Funds appropriation is $1,036,000 in fiscal year 2026-2027 for the acquisition
13 of mobile data terminals and docking stations. Notwithstanding 2017 Ky. Acts ch. 130,
14 excess proceeds from the sale of state-owned real property and improvements in
15 Owensboro, Kentucky operated by the Department of Juvenile Justice shall be transferred
16 to the Department of Kentucky State Police for this purpose. Notwithstanding KRS
17 45.229, any portion of these funds that have not been expended by the end of fiscal year
18 2026-2027 shall not lapse and shall carry forward into fiscal year 2027-2028.
19 (5) Capitol Campus Security Personnel: Included in the above General Fund
20 appropriation is $125,600 in each fiscal year to support two Trooper R contracts
21 designated specifically for the Capitol campus.
22 (6) Background Check Fees: Pursuant to KRS 7.111, 7.112, and 11.160(1)(e),
23 the Department of Kentucky State Police shall not charge a fee for the cost of background
24 checks requested by the Legislative Research Commission during investigation processes
25 related to confirmations of appointments or reappointments to boards and commissions
26 and administrative law judges.
27 (7) Statutory Salary Schedule Adjustments: Included in the above General
Page 97 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Fund appropriation is $3,802,000 in General Fund and $1,817,900 in Road Fund in fiscal
2 year 2026-2027 and $7,430,500 in General Fund and $3,728,400 in Road Fund in fiscal
3 year 2027-2028 to support the statutory adjustment to the salary schedule based on the
4 consumer price index for troopers and commercial vehicle enforcement officers.
5 (8) Kentucky Emergency Warning System Leases: The Department of
6 Kentucky State Police shall prepare a report detailing by county, including but not limited
7 to the number of leases contracted, the cost of each lease, and the number of leases yet to
8 be contracted. The Department of Kentucky State Police shall submit this report to the
9 Interim Joint Committee on Appropriations and Revenue on a quarterly basis beginning
10 November 1, 2026.
11 (9) Fleet Vehicles: The Department of Kentucky State Police shall prepare a
12 report detailing fleet vehicle purchases, including but not limited to total expenditures,
13 price per vehicle, the timing of purchases, the distribution of new vehicles purchased, as
14 well as the assigned use for each vehicle purchased. The Department of Kentucky State
15 Police shall submit this report on a quarterly basis to the Interim Joint Committee on
16 Appropriations and Revenue beginning November 1, 2026.
17 (10) Recruitment and Retention Reporting: The Department of Kentucky State
18 Police shall prepare a report detailing recruitment, retention, and demographic statistics,
19 including but not limited to age, gender, race, education-level, and geography, for trooper
20 cadet classes occurring in fiscal years 2025-2026, 2026-2027, and 2027-2028. The
21 Department of Kentucky State Police shall submit this report on a quarterly basis to the
22 Interim Joint Committee on Appropriations and Revenue beginning November 1, 2026.
23 (11) Sworn Trooper Detail: Notwithstanding any statute to the contrary,
24 beginning with fiscal year 2025-2026, no more than 25 percent of sworn troopers and
25 officers, excluding those positions established in KRS 16.187 and 16.196, shall be
26 assigned to detail other than a post.
27 (12) Land Acquisition Authorization: Notwithstanding KRS 56.040, the
Page 98 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Department of Kentucky State Police may directly acquire, on behalf of the
2 Commonwealth, any land required for tower sites related to the Kentucky Emergency
3 Warning System or the Emergency Radio System Replacement project authorized in
4 2024 Ky. Acts ch. 175, Part II, H., 4., 007.
5 (13) Northern and Central Kentucky Crime Labs: Included in the above
6 General Fund appropriation is $609,700 in fiscal year 2026-2027 and $770,500 in fiscal
7 year 2027-2028 to support the relocation of the Northern Kentucky Crime Lab, as well as
8 four forensic biologist positions at the Central Kentucky Crime Lab in fiscal year 2026-
9 2027 and two forensic biologist positions at the Northern Kentucky Crime Lab in fiscal
10 year 2027-2028. Notwithstanding any statute to the contrary, qualified retirees may be
11 recruited and given due consideration in filling these positions.
12 (14) Compensatory Time and Overtime: Included in the above General Fund
13 appropriation is $5,500,000 in each fiscal year to support the conversion of compensatory
14 time to paid overtime for nonexempt sworn personnel. Notwithstanding any statute to the
15 contrary, all overtime work must be authorized by a supervisor in advance, not to exceed
16 100 hours annually, and any nonexempt employee who works overtime without prior
17 authorization will be paid for all hours worked in accordance with federal and state law
18 but may be subject to disciplinary action.
19 (15) Driver Testing Offices: Included in the above General Fund appropriation is
20 $1,302,900 in fiscal year 2026-2027 and $1,570,000 in fiscal year 2027-2028 to support
21 staffing and operations for driver testing at three existing regional driver's licensing
22 offices.
23 5. CORRECTIONS
24 a. Corrections Management
25 2026-27 2027-28
26 General Fund 19,043,300 19,130,000
27 Restricted Funds 399,400 149,000
Page 99 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Federal Funds 100,000 304,300
2 TOTAL 19,542,700 19,583,300
3 (1) Local Correctional Facilities: Notwithstanding KRS 441.420, no funds are
4 provided for reimbursement to counties for design fees for architectural and engineering
5 services associated with any new local correctional facility approved by the Kentucky
6 Local Correctional Facilities Construction Authority.
7 (2) Facility Reporting: (a) The Department of Corrections shall
8 continuously monitor its bed utilization of county jails, halfway houses, Recovery
9 Kentucky drug treatment centers, and all other community correctional residential
10 facilities that are under contract with the Department. This monitoring shall include
11 periodic review of its classification system to ensure that all offenders are placed in the
12 least restrictive housing that provides appropriate security to protect public safety and
13 provide ample opportunity for treatment and successful reentry.
14 (b) On a monthly basis, the Department shall submit a report detailing the
15 average occupancy rate for each of these facility types outlined in paragraph (a) of this
16 subsection, as well as a projection of bed utilization one year from the reported period, to
17 the Interim Joint Committee on Appropriations and Revenue.
18 (3) Operational Costs for Inmate Population and Excess Local Jail Per Diem
19 Costs: In the event that actual operational costs and/or actual local jail per diem
20 payments exceed the amounts appropriated to support the budgeted average daily
21 population of state felons for each fiscal year, the additional payments, up to $10,000,000
22 in each fiscal year, shall be deemed necessary government expenses and shall be paid
23 from the General Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund
24 Account (KRS 48.705), subject to notification as to necessity and amount by the State
25 Budget Director who shall report any certified expenditure to the Interim Joint
26 Committee on Appropriations and Revenue.
27 b. Adult Correctional Institutions
Page 100 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 2026-27 2027-28
2 General Fund 482,932,900 494,692,100
3 Restricted Funds 22,069,100 21,373,800
4 Federal Funds 30,000 95,600
5 TOTAL 505,032,000 516,161,500
6 (1) Transfer to State Institutions: Notwithstanding KRS 532.100(8), state
7 prisoners, excluding the Class C and Class D felons qualifying to serve time in county
8 jails, may be transferred to a state institution within 90 days of final sentencing, if the
9 county jail does not object to the additional 45 days.
10 (2) Little Sandy Correctional Complex: The Department of Corrections shall
11 prepare a report, including but not limited to the expenditures related to the expansion,
12 the number of full-time positions filled and vacant, the number of offenders housed, and
13 the number of offenders transferred from other facilities by facility. The Department of
14 Corrections shall submit this report on a quarterly basis to the Interim Joint Committee on
15 Appropriations and Revenue beginning November 1, 2026.
16 (3) Institutional Support: Included in the above General Fund appropriation is
17 $4,000,000 in fiscal year 2026-2027 and $9,000,000 in fiscal year 2027-2028 to support
18 increased medical costs.
19 c. Community Services and Local Facilities
20 2026-27 2027-28
21 General Fund 250,628,300 254,327,800
22 Restricted Funds 16,173,000 15,094,000
23 Federal Funds 874,200 874,200
24 TOTAL 267,675,500 270,296,000
25 (1) Local Jails Funding: Notwithstanding KRS 441.605 to 441.695, funds in the
26 amount of $8,847,300 in fiscal year 2026-2027 and $7,742,200 in fiscal year 2027-2028
27 shall be expended from the Kentucky Local Correctional Facilities Construction
Page 101 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Authority for local correctional facility and operational support.
2 (2) Participation in Transparent Governing - Full Disclosure of Inmate
3 Population Forecasts and Related Materials: The Office of State Budget Director shall
4 provide the methodology, assumptions, data, and all other related materials used to
5 project biennial offender population forecasts conducted by the Office of State Budget
6 Director, the Kentucky Department of Corrections, and any consulting firms, to the
7 Interim Joint Committee on Appropriations and Revenue by October 1, 2027. This
8 submission shall include but not be limited to the projected state, county, and community
9 offender populations for the 2028-2030 fiscal biennium and must coincide with the
10 budgeted amount for these populations. This submission shall clearly divulge the
11 methodology and reasoning behind the budgeted and projected offender population in a
12 commitment to participate in transparent governing.
13 (3) Program Completion and Sentence Credit Payments: Notwithstanding
14 KRS 197.045(6), payments for program completions resulting in sentencing credit shall
15 not expire and shall continue through the 2026-2028 fiscal biennium. Included in the
16 above General Fund appropriation is $13,500,000 in each fiscal year to support payments
17 for program completions resulting in sentencing credit as prescribed in KRS
18 197.045(6)(a), (b), and (c). The Department of Corrections shall prepare a report
19 annually, including but not limited to the number of program completions, the cost of
20 payments for each category of sentencing credit, and the programmatic impact on
21 recidivism. The Department of Corrections shall submit this report to the Interim Joint
22 Committee on Appropriations and Revenue by October 1 of each year.
23 (4) Substance Abuse, Mental Health, and Reentry Service Centers: (a)
24 Notwithstanding any statute to the contrary, for each fiscal year, the Department of
25 Corrections shall pay each contracted provider of substance abuse, mental health, and
26 reentry centers a minimum of 65 percent of the contracted beds monthly. Any contracted
27 but unfilled beds as of the effective date of this Act may, at the discretion of the provider,
Page 102 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 be terminated.
2 (b) Each contracted provider, as provided for in paragraph (a) of this subsection,
3 shall report 100 percent of their occupancy to the Department of Corrections. The report
4 shall detail the total number of beds, the number of beds available, and the type of
5 individual occupying bed space, and shall be submitted in a method and at a frequency
6 established by the Department's discretion.
7 d. Local Jail Support
8 2026-27 2027-28
9 General Fund 16,788,600 16,788,600
10 (1) Local Corrections Assistance Fund Allocation: Included in the above
11 General Fund appropriation is $4,630,200 in each fiscal year to be distributed to counties
12 pursuant to the provisions of House Bill 757 of the 2026 Regular Session.
13 (2) Life Safety or Closed Jails: Included in the above General Fund
14 appropriation is $860,000 in each fiscal year to provide a monthly payment of an annual
15 amount of $20,000 to each county with a life safety jail or closed jail. The payment shall
16 be in addition to the payment required by KRS 441.206(2).
17 (3) Inmate Medical Care Expenses: Included in the above General Fund
18 appropriation is $792,800 in each fiscal year for medical care contracts to be distributed,
19 upon approval of the Department of Corrections, to counties by the formula codified in
20 KRS 441.206, and $851,800 in each fiscal year, on a partial reimbursement basis, for
21 medical claims in excess of the statutory threshold pursuant to KRS 441.045. The
22 funding support for medical contracts and catastrophic medical expenses for indigents
23 shall be maintained in discrete accounts. Any medical claim that exceeds the statutory
24 threshold may be reimbursed for that amount in excess of the statutory threshold.
25 TOTAL - CORRECTIONS
26 2026-27 2027-28
27 General Fund 769,393,100 784,938,500
Page 103 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds 38,641,500 36,616,800
2 Federal Funds 1,004,200 1,274,100
3 TOTAL 809,038,800 822,829,400
4 6. PUBLIC ADVOCACY
5 2026-27 2027-28
6 General Fund 96,695,100 96,571,700
7 Restricted Funds 4,368,100 4,282,800
8 Federal Funds 2,312,300 2,350,700
9 TOTAL 103,375,500 103,205,200
10 (1) Attorney Compensation: Included in the above General Fund appropriation
11 is $3,610,600 in fiscal year 2026-2027 and $5,404,300 in fiscal year 2027-2028 to
12 support an annual salary increase for attorneys with a caseload in the Department of
13 Public Advocacy who are reclassified pursuant to the provisions of House Bill 762 of the
14 2026 Regular Session.
15 (2) Technology Needs: Included in the above General Fund appropriation is
16 $800,000 in each fiscal year to support service fees and contracts for various software
17 and technology supports.
18 TOTAL - JUSTICE AND PUBLIC SAFETY CABINET
19 2026-27 2027-28
20 General Fund (Tobacco) 2,881,200 2,662,700
21 General Fund 1,328,583,400 1,359,915,200
22 Restricted Funds 235,916,300 221,737,200
23 Federal Funds 72,437,900 72,676,500
24 Road Fund 55,582,600 57,940,100
25 TOTAL 1,695,401,400 1,714,931,700
26 J. PERSONNEL CABINET
27 Budget Units
Page 104 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 1. GENERAL OPERATIONS
2 2026-27 2027-28
3 Restricted Funds 32,390,400 31,962,300
4 (1) Public Employee Health Insurance Trust Fund Actuarial Projections:
5 The Department of Employee Insurance shall prepare a report that includes actuarial
6 projections of the operating net gain or loss, recommended reserves, and remaining
7 balance after reserves, by plan year, for all active plan years and a minimum of two
8 upcoming plan years for the Public Employee Health Insurance Trust Fund, as of
9 September 30 of each fiscal year. This report shall be submitted to the Interim Joint
10 Committee on Appropriations and Revenue by December 1 of each year.
11 (2) Monthly Reporting Requirement: Notwithstanding any statute to the
12 contrary, the Personnel Cabinet shall, on a monthly basis, and no later than 45 days after
13 the last working day of each month, submit to the Legislative Research Commission and
14 the Interim Joint Committee on Appropriations and Revenue data and reports related to
15 the operation and performance of the Kentucky Employees' Health Plan. The monthly
16 submission shall include, at a minimum:
17 (a) Claims and Enrollment Report, including:
18 1. A breakdown of all plan enrollments;
19 2. Medical claims lag;
20 3. Prescription claims lag;
21 4. Medical claims on a paid basis; and
22 5. Prescription claims on a paid basis;
23 (b) A trust fund cash transactions listing;
24 (c) A trust fund summary report; and
25 (d) Any other data or reports necessary to monitor the operation and performance
26 of the Kentucky Employees' Health Plan.
27 (3) State Health Plan Actuarial Reporting: The Personnel Cabinet shall, on or
Page 105 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 before May 1, 2026, provide to the General Assembly actuarial reports, studies, and
2 recommendations related to the development and implementation of benefits, enrollment
3 rules, and premium rates for Plan Years 2023, 2024, 2025, 2026, 2027, and 2028.
4 The cabinet shall also provide documentation of changes in expected claim costs
5 resulting from benefit changes implemented or projected for Plan Years 2026, 2027, and
6 2028, including the actuarial basis and methodology used for such projections.
7 In addition, the cabinet shall provide documentation of actuarially projected income
8 and expenses for Plan Years 2026, 2027, and 2028, including the actuarial basis and
9 methodology used for such projections. Such documentation shall include, at a minimum,
10 prior plan experience and the source of that experience, adjustments attributable to plan
11 or rate changes, claim reserve details, the inflationary trend utilized, and the rationale
12 supporting the selected inflationary trend.
13 All reports and documentation required by this subsection shall also be posted on
14 the Personnel Cabinet’s website in a publicly accessible location.
15 2. PUBLIC EMPLOYEES DEFERRED COMPENSATION AUTHORITY
16 2026-27 2027-28
17 Restricted Funds 8,112,800 7,928,800
18 3. WORKERS' COMPENSATION BENEFITS AND RESERVE
19 2026-27 2027-28
20 Restricted Funds 23,618,700 23,061,000
21 4. FIXED ALLOCATION NON-HAZARDOUS PENSION FUND
22 2026-27 2027-28
23 General Fund 63,858,000 63,858,000
24 (1) Quasi-State Agency Subsidy Distributions: (a) Included in the above
25 General Fund appropriation is $332,100 in each fiscal year to maintain each Non-P1 state
26 agency's fiscal year 2019-2020 baseline subsidy.
27 (b) Included in the above General Fund appropriation is $18,882,100 in each
Page 106 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 fiscal year to maintain each Regional Mental Health Unit's fiscal year 2019-2020 baseline
2 subsidy.
3 (c) Included in the above General Fund appropriation is $25,151,300 in each
4 fiscal year to maintain each health department's fiscal year 2019-2020 baseline subsidy.
5 (d) The distribution of the baseline subsidy to each employer classification
6 identified in paragraphs (a), (b), and (c) of this subsection shall be distributed in the
7 following manner: In July and January of each year, the Office of State Budget Director
8 shall obtain the total creditable compensation reported by each employer to the Kentucky
9 Public Pensions Authority and utilize that number to determine how much of each total
10 appropriation shall be distributed to each employer within its own unique employer
11 classification. Payments to each employer shall be made on September 1 and April 1 of
12 each fiscal year. The Office of State Budget Director shall provide a report to the Interim
13 Joint Committee on Appropriations and Revenue by May 1 of each fiscal year. The report
14 shall detail the disbursement of funds in this subsection and include the creditable
15 compensation, by employer, for which disbursements are made.
16 (e) Notwithstanding KRS 61.5991(6)(b), included in the above General Fund
17 appropriation is $19,492,500 in each fiscal year to support each employer's share of the
18 anticipated retirement costs over each employer's fiscal year 2019-2020 baseline
19 contribution as adjusted and posted under the 2026 Budget Bills tile on the Legislative
20 Research Commission's website.
21 TOTAL - PERSONNEL CABINET
22 2026-27 2027-28
23 General Fund 63,858,000 63,858,000
24 Restricted Funds 64,121,900 62,952,100
25 TOTAL 127,979,900 126,810,100
26 K. POSTSECONDARY EDUCATION
27 Budget Units
Page 107 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 1. COUNCIL ON POSTSECONDARY EDUCATION
2 2026-27 2027-28
3 General Fund (Tobacco) 6,165,900 5,745,500
4 General Fund 14,217,900 17,696,700
5 Restricted Funds 11,709,700 9,025,900
6 Federal Funds 6,128,800 6,190,100
7 TOTAL 38,222,300 38,658,200
8 (1) Interest Earnings Transfer from the Strategic Investment and Incentive
9 Trust Fund Accounts: Notwithstanding KRS 164.7911 to 164.7927, included in the
10 above Restricted Funds appropriation is $3,077,300 in fiscal year 2026-2027 from the
11 interest earnings on the Research Challenge and Comprehensive University Excellence
12 trust funds to support the operations of the Council on Postsecondary Education.
13 (2) Cancer Research and Screening: Included in the above General Fund
14 (Tobacco) appropriation is $6,165,900 in fiscal year 2026-2027 and $5,745,500 in fiscal
15 year 2027-2028 for cancer research and screening to be shared equally between the
16 University of Kentucky and the University of Louisville. Of these amounts, $625,000 in
17 each fiscal year is from the lapse and reallocation of Early Childhood Development Fund
18 appropriations set forth in Part X of this Act.
19 (3) Redistribution of Resources: Notwithstanding KRS 164.028 to 164.0282, no
20 General Fund is provided for Professional Education Preparation.
21 (4) Postsecondary Education Debt: Notwithstanding KRS 45.750 to 45.810, in
22 order to lower the cost of borrowing, any university that has issued or caused to be issued
23 debt obligations through a not-for-profit corporation or a municipality or county
24 government for which the rental or use payments of the university substantially meet the
25 debt service requirements of those debt obligations is authorized to refinance those debt
26 obligations if the principal amount of the debt obligations is not increased and the rental
27 payments of the university are not increased. Any funds used by a university to meet debt
Page 108 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 obligations issued by a university pursuant to this subsection shall be subject to
2 interception of state-appropriated funds pursuant to KRS 164A.608.
3 (5) Disposition of Postsecondary Institution Property: Notwithstanding KRS
4 45.777, a postsecondary institution’s governing board may elect to sell or dispose of real
5 property or major items of equipment and proceeds from the sale shall be designated to
6 the funding sources, on a proportionate basis, used for acquisition of the equipment or
7 property to be sold.
8 (6) Spinal Cord and Head Injury Research: Included in the above General
9 Fund appropriation is $1,920,000 in fiscal year 2026-2027 and $1,860,000 in fiscal year
10 2027-2028 for spinal cord and head injury research. In accordance with KRS 211.500 to
11 211.504, the appropriation in each fiscal year shall be shared between the University of
12 Kentucky and the University of Louisville.
13 (7) Immunity for Postsecondary Institutions: Notwithstanding any statute to
14 the contrary, a public postsecondary institution, including any affiliated corporation, its
15 officers, employees, and agents, shall be immune from all claims, including class action
16 claims for damages, a declaratory judgment, and equitable relief based on an act or
17 omission if:
18 (a) The claim arises out of or in connection with tuition paid to the public
19 postsecondary institution for an academic term that included the months of March, April,
20 and May 2020;
21 (b) The claim alleges losses or damages arising from an act or omission by the
22 public postsecondary institution during or in response to the COVID-19 emergency; and
23 (c) The alleged act or omission of the public postsecondary institution was related
24 to protecting public health and safety interests in response to the COVID-19 emergency
25 in compliance with federal, state, or local guidance, including but not limited to:
26 1. Transition to online or otherwise remote instruction;
27 2. Pause or modification to instruction available through the institution of higher
Page 109 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 education;
2 3. Closure of, or modification to, operation of on-campus facilities of the public
3 postsecondary institution; or
4 4. The public postsecondary institution offered online and otherwise remote
5 learning options that allowed students to complete the coursework in the academic term
6 that included the months of March, April, and May 2020 and receive academic credit.
7 (8) Ovarian Cancer Screening: Included in the above General Fund
8 appropriation is $960,000 in fiscal year 2026-2027 and $930,000 in fiscal year 2027-2028
9 for the Ovarian Cancer Screening Outreach Program at the University of Kentucky.
10 (9) Southern Regional Education Board Dues: Included in the above General
11 Fund appropriation is $224,800 in each fiscal year for Southern Regional Education
12 Board dues.
13 2. KENTUCKY HIGHER EDUCATION ASSISTANCE AUTHORITY
14 2026-27 2027-28
15 General Fund 384,709,400 384,529,400
16 Restricted Funds 62,270,900 62,292,900
17 Federal Funds 86,000 86,000
18 TOTAL 447,066,300 446,908,300
19 (1) College Access Program: The following is appropriated for the College
20 Access Program in each fiscal year:
21 (a) Notwithstanding KRS 154A.130(4), $179,344,800 in General Fund;
22 (b) Notwithstanding KRS 164.7891, $1,100,000 in Restricted Funds; and
23 (c) $450,000 in Restricted Funds from the collection of loans related to the
24 Minority Educator Recruitment and Retention Scholarship.
25 (2) Kentucky Tuition Grant Program: Notwithstanding KRS 154A.130(4),
26 included in the above General Fund appropriation is $45,975,000 in each fiscal year for
27 the Kentucky Tuition Grant Program.
Page 110 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (3) Kentucky National Guard Tuition Award Program: Notwithstanding KRS
2 154A.130(4), included in the above General Fund appropriation is $7,398,100 in each
3 fiscal year for the National Guard Tuition Award Program.
4 (4) Kentucky Educational Excellence Scholarships (KEES): The following is
5 appropriated for KEES in each fiscal year:
6 (a) Notwithstanding KRS 154A.130(4), $93,656,600 in General Fund;
7 (b) $12,269,100 in Restricted Funds from previous fiscal years' excess Lottery
8 funds; and
9 (c) $12,300,000 in Restricted Funds from Unclaimed Lottery Prize revenue.
10 Notwithstanding KRS 164.7874(7)(c) and 164.7879(2)(a), for the 2026-2028 fiscal
11 biennium, an eligible high school student shall only be eligible for a Kentucky
12 Educational Excellence Scholarship base award for an academic year in which the
13 student has attained at least a 2.75 grade point average.
14 (5) Work Ready Kentucky Scholarship Program: Notwithstanding KRS
15 154A.130(4), included in the above General Fund appropriation is $12,000,500 in each
16 fiscal year for the Work Ready Kentucky Scholarship Program. It is the intent of the
17 General Assembly for Work Ready Kentucky Scholarships to only be awarded to
18 recipients that complete eligible courses.
19 (6) Dual Credit Scholarship Program: (a) Notwithstanding KRS
20 154A.130(4), included in the above General Fund appropriation is $21,149,500 in each
21 fiscal year for the Dual Credit Scholarship Program. Included in the above Restricted
22 Funds appropriation is $6,290,100 in each fiscal year from previous years’ excess Lottery
23 funds held in trust and agency account for the Dual Credit Scholarship Program.
24 (b) Notwithstanding KRS 164.786(1)(f) and 164.787(2)(d), the dual credit tuition
25 rate ceiling shall be one-half of the per credit hour tuition amount charged by the
26 Kentucky Community and Technical College System for in-state students.
27 Notwithstanding KRS 164.786(4)(c), eligible high school students may receive a dual
Page 111 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 credit scholarship for two career and technical education dual credit courses per academic
2 year and four general education dual credit courses over the junior and senior years, up to
3 a maximum of 12 approved dual credit courses.
4 (7) Veterinary Medicine Contract Spaces: Included in the above General Fund
5 appropriation is $5,800,400 in each fiscal year for the Veterinary Medicine Contract
6 Spaces Program. For students receiving an initial award in fiscal year 2027-2028 or
7 thereafter, as a condition of the contract space support each recipient shall enter into a
8 written agreement with the Kentucky Higher Education Assistance Authority to practice
9 veterinary medicine in the Commonwealth of Kentucky for at least one year for each year
10 the contract space is received. If a recipient fails to complete the required service within
11 the timeframe established by the Authority, the total amount of the contract space support
12 received shall convert to a loan and shall be repaid to the Commonwealth. For any
13 support converted to a loan, interest shall be assessed and shall accrue on the principal
14 balance beginning on the date of the first disbursement. The rate of interest shall be
15 determined by the Authority through the promulgation of administrative regulations. All
16 repayments, including principal and interest, shall be deposited into a trust and agency
17 account to be used for future awards. The Authority shall be entitled to recover
18 reasonable costs of collection and attorney fees in the event of default. Students receiving
19 contract space support prior to fiscal year 2027-2028 shall not be subject to this service
20 requirement.
21 (8) Optometry Scholarship Program: Included in the above General Fund
22 appropriation is $814,500 in fiscal year 2026-2027 and $789,000 in fiscal year 2027-2028
23 for the Optometry Scholarship Program. For students receiving an initial award in fiscal
24 year 2027-2028 or thereafter, as a condition of the scholarship each recipient shall enter
25 into a written agreement with the Kentucky Higher Education Assistance Authority to
26 practice optometry in the Commonwealth of Kentucky for at least one year for each year
27 the scholarship is received. If a recipient fails to complete the required service
Page 112 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 requirement within the timeframe established by the Authority, the scholarship shall be
2 converted to a loan and be shall repaid to the Commonwealth. For any scholarship
3 converted to a loan, interest shall be assessed and shall accrue on the principal balance
4 beginning on the date of the first disbursement. The rate of interest shall be determined
5 by the Authority through the promulgation of administrative regulations. All repayments,
6 including principal and interest, shall be deposited into a trust and agency account to be
7 used for future awards. The Authority shall be entitled to recover reasonable costs of
8 collection and attorney fees in the event of default. Students receiving the scholarship
9 prior to fiscal year 2027-2028 shall not be subject to this service requirement.
10 (9) Use of Lottery Revenues: Notwithstanding KRS 154A.130(3) and (4),
11 lottery revenues in the amount of $362,200,000 in each fiscal year are appropriated to the
12 Kentucky Higher Education Assistance Authority. Notwithstanding KRS 154A.130(4)
13 and any provisions of this Act to the contrary, if lottery receipts received by the
14 Commonwealth, excluding any unclaimed prize money received under Part III, 20. of this
15 Act, exceed $370,000,000 in fiscal year 2025-2026 or $365,000,000 in each fiscal year of
16 the 2026-2028 fiscal biennium, the additional excess shall be transferred to a trust and
17 agency account and shall not be expended or appropriated without the express authority
18 of the General Assembly.
19 (10) Redistribution of Resources: Notwithstanding KRS 164.740 to 164.764,
20 164.7890(11)(c), 164.7891(11)(b), and 164.7894, no General Fund is provided for Work
21 Study, Coal County Pharmacy Scholarships, Osteopathic Medicine Scholarships, and
22 Coal County College Completion Scholarships in order to provide additional funding to
23 the College Access Program and Kentucky Tuition Grant Program.
24 (11) Teacher Scholarship Program: Included in the above appropriation is
25 $1,015,000 in Restricted Funds in each fiscal year for the Teacher Scholarship Program.
26 The Kentucky Higher Education Assistance Authority, in coordination with the Council
27 on Postsecondary Education, shall submit a report on the number of teacher scholarships
Page 113 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 provided in each fiscal year, the program of study in which recipients are enrolled,
2 recipient retention rates, total number of applications, and the impact of the scholarships
3 on recruitment. This report shall be submitted to the Interim Joint Committee on
4 Education by September 1 of each fiscal year.
5 (12) General Administration and Support: Included in the above General Fund
6 appropriation is $6,000,000 in each fiscal year to support general administration and
7 support services.
8 (13) Teacher Recruitment Student Loan Forgiveness Pilot Program: Included
9 in the above General Fund appropriation is $4,800,000 in each fiscal year for the Teacher
10 Recruitment Student Loan Forgiveness Pilot Program. Notwithstanding KRS
11 154A.130(4), of this amount $2,000,000 shall be allocated from lottery revenues.
12 (14) Innovative Scholarship Pilot Project: Notwithstanding KRS 154A.130(4),
13 included in the above General Fund appropriation is $675,500 in each fiscal year for the
14 Innovative Scholarship Pilot Project. The Kentucky Higher Education Assistance
15 Authority shall work in coordination with the Council on Postsecondary Education to
16 develop and implement the Innovative Scholarship pilot project.
17 3. EASTERN KENTUCKY UNIVERSITY
18 2026-27 2027-28
19 General Fund 80,209,800 73,838,900
20 Restricted Funds 218,354,400 218,016,300
21 Federal Funds 135,500,000 135,500,000
22 TOTAL 434,064,200 427,355,200
23 (1) Mandated Programs: Included in the above General Fund appropriation are
24 the following:
25 (a) $4,571,900 in each fiscal year for the Model Laboratory School;
26 (b) Notwithstanding KRS 61.5991, $4,454,900 in each fiscal year to support the
27 university's share of the anticipated retirement costs over the university's fiscal year
Page 114 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 2019-2020 baseline contribution as adjusted and posted under the 2026 Budget Bills tile
2 on the Legislative Research Commission's website; and
3 (c) $2,423,200 in each fiscal year to support the Commonwealth’s Property and
4 Casualty Insurance Fund premium.
5 (2) Air Traffic Control Training Program: Included in the above General Fund
6 appropriation is $6,500,000 in fiscal year 2026-2027 and $1,500,000 in fiscal year 2027-
7 2028 to support the establishment and operations of an air traffic control training
8 program.
9 4. KENTUCKY STATE UNIVERSITY
10 2026-27 2027-28
11 General Fund 32,198,500 30,198,500
12 Restricted Funds 68,862,300 77,848,400
13 Federal Funds 40,680,600 44,031,000
14 TOTAL 141,741,400 152,077,900
15 (1) Mandated Programs: Included in the above General Fund appropriation are
16 the following:
17 (a) $10,381,000 in each fiscal year to fund the state match payments required of
18 land-grant universities under federal law;
19 (b) $473,600 in each fiscal year to support the Commonwealth’s Property and
20 Casualty Insurance Fund premium; and
21 (c) $2,000,000 in fiscal year 2026-2027 for expansion of online offerings.
22 5. MOREHEAD STATE UNIVERSITY
23 2026-27 2027-28
24 General Fund 46,356,100 46,873,100
25 Restricted Funds 113,586,900 113,586,900
26 Federal Funds 47,176,400 47,176,400
27 TOTAL 207,119,400 207,636,400
Page 115 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (1) Mandated Programs: Included in the above General Fund appropriation are
2 the following:
3 (a) $5,959,800 in fiscal year 2026-2027 and $6,476,800 in fiscal year 2027-2028
4 for the Craft Academy for Excellence in Science and Mathematics;
5 (b) Notwithstanding KRS 61.5991, $2,456,500 in each fiscal year to support the
6 university's share of the anticipated retirement costs over the university's fiscal year
7 2019-2020 baseline contribution as adjusted and posted under the 2026 Budget Bills tile
8 on the Legislative Research Commission's website; and
9 (c) $1,274,400 in each fiscal year to support the Commonwealth’s Property and
10 Casualty Insurance Fund premium.
11 6. MURRAY STATE UNIVERSITY
12 2026-27 2027-28
13 General Fund 49,549,600 49,549,600
14 Restricted Funds 159,450,500 159,450,500
15 Federal Funds 26,494,600 26,494,600
16 TOTAL 235,494,700 235,494,700
17 (1) Mandated Programs: Included in the above General Fund appropriation are
18 the following:
19 (a) $4,034,200 in each fiscal year for the Breathitt Veterinary Center;
20 (b) Notwithstanding KRS 61.5991, $1,635,500 in each fiscal year to support the
21 university's share of the anticipated retirement costs over the university's fiscal year
22 2019-2020 baseline contribution as adjusted and posted under the 2026 Budget Bills tile
23 on the Legislative Research Commission's website; and
24 (c) $1,451,400 in each fiscal year to support the Commonwealth’s Property and
25 Casualty Insurance Fund premium.
26 7. NORTHERN KENTUCKY UNIVERSITY
27 2026-27 2027-28
Page 116 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 General Fund 56,453,800 57,249,300
2 Restricted Funds 221,360,100 221,360,100
3 Federal Funds 15,450,500 15,450,500
4 TOTAL 293,264,400 294,059,900
5 (1) Mandated Programs: Included in the above General Fund appropriation are
6 the following:
7 (a) $1,323,900 in each fiscal year for the Kentucky Center for Mathematics;
8 (b) $1,377,900 in each fiscal year to support the Commonwealth’s Property and
9 Casualty Insurance Fund premium; and
10 (c) $1,800,000 in fiscal year 2026-2027 and $3,600,000 in fiscal year 2027-2028
11 for the Votruba Young Scholars Academy.
12 8. UNIVERSITY OF KENTUCKY
13 2026-27 2027-28
14 General Fund (Tobacco) 500,000 1,500,000
15 General Fund 292,513,300 287,193,700
16 Restricted Funds 8,688,499,300 9,509,319,400
17 Federal Funds 315,770,000 333,769,000
18 TOTAL 9,297,282,600 10,131,782,100
19 (1) Mandated Programs: Included in the above General Fund appropriation are
20 the following:
21 (a) $35,420,800 in each fiscal year for the College of Agriculture, Food and
22 Environment’s Cooperative Extension Service. Of this amount, $4,145,500 in each fiscal
23 year is provided to support extension agent compensation;
24 (b) $31,434,100 in each fiscal year for the Kentucky Agricultural Experiment
25 Station;
26 (c) $10,176,200 in each fiscal year for the Center for Applied Energy Research;
27 (d) $4,076,300 in each fiscal year for the Kentucky Geological Survey;
Page 117 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (e) $4,034,200 in each fiscal year for the Veterinary Diagnostic Laboratory;
2 (f) $2,040,500 in each fiscal year for the Sanders-Brown Center on Aging;
3 (g) $1,800,000 in each fiscal year for the College of Agriculture, Food and
4 Environment’s Division of Regulatory Services;
5 (h) $600,000 in each fiscal year for the College of Agriculture, Food and
6 Environment’s Kentucky Small Business Development Center;
7 (i) $586,300 in each fiscal year for the University Press of Kentucky;
8 (j) $500,000 in each fiscal year for the Human Development Institute for the
9 Supported Higher Education Project;
10 (k) $450,200 in each fiscal year for the Center of Excellence in Rural Health;
11 (l) $950,200 in each fiscal year for the Kentucky Cancer Registry;
12 (m) $100,000 in each fiscal year for the Sports Medicine Research Institute; and
13 (n) $10,750,900 in each fiscal year to support the Commonwealth's Property and
14 Casualty Insurance Fund Premium.
15 (2) Nuclear Reactor Site Readiness Pilot Program: Costs associated with the
16 procurement of an Early Site Permit (10 C.F.R. secs. 52.12 et seq.), a Construction
17 Permit (10 C.F.R. pt. 50), or a Combined Operating License (10 C.F.R. secs. 52.71 et
18 seq.) from the United States Nuclear Regulatory Commission for up to three projects
19 under the Nuclear Reactor Site Readiness Pilot Program shall be deemed a necessary
20 government expense and shall be paid from the General Fund Surplus Account (KRS
21 48.700) or the Budget Reserve Trust Fund Account (KRS 48.705) in an amount not to
22 exceed $75,000,000 for the 2026-2028 fiscal biennium. Any such expenditure shall be
23 subject to the prior written approval of the State Budget Director and shall be limited to
24 one-third of the actual costs incurred per project, not to exceed $25,000,000 per project.
25 (3) Kindergarten Readiness Program: Included in the above General Fund
26 (Tobacco) appropriation is $500,000 in fiscal year 2026-2027 and $1,500,000 in fiscal
27 year 2027-2028 to establish the Kindergarten Readiness Performance-Based Child-Care
Page 118 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Incentive Pilot Program. This appropriation is from the lapse and reallocation of Early
2 Childhood Development Fund appropriations set forth in Part X of this Act.
3 (4) Energy Planning and Inventory Commission: In fiscal year 2026-2027,
4 $15,000,000 of the funds authorized in 2024 Ky. Acts ch. 173, sec. 1, (207) shall be
5 allocated to the Energy Planning and Inventory Commission.
6 9. UNIVERSITY OF LOUISVILLE
7 2026-27 2027-28
8 General Fund (Tobacco) 2,750,000 -0-
9 General Fund 135,615,900 133,164,800
10 Restricted Funds 1,515,148,500 1,547,903,100
11 Federal Funds 196,365,300 200,610,300
12 TOTAL 1,849,879,700 1,881,678,200
13 (1) Mandated Programs: Included in the above General Fund appropriation are
14 the following:
15 (a) $695,200 in each fiscal year for the Rural Health Education Program;
16 (b) $150,000 in each fiscal year for the Kentucky Autism Training Center;
17 (c) $100,000 in each fiscal year for the School of Dentistry to provide dental care
18 to patients with dental issues related to drug use;
19 (d) $150,000 in each fiscal year for the Mid-South REACH Grant; and
20 (e) $5,801,100 in each fiscal year to support the Commonwealth’s Property and
21 Casualty Insurance Fund premium.
22 (2) Cancer Research: Included in the above General Fund (Tobacco)
23 appropriation is $2,750,000 in fiscal year 2026-2027 to fund cancer research at the
24 Brown Cancer Center. This appropriation is from the lapse and reallocation of Early
25 Childhood Development Fund appropriations set forth in Part X of this Act.
26 10. WESTERN KENTUCKY UNIVERSITY
27 2026-27 2027-28
Page 119 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 General Fund 80,142,600 79,202,300
2 Restricted Funds 279,343,600 280,343,600
3 Federal Funds 44,143,300 44,143,300
4 TOTAL 403,629,500 403,689,200
5 (1) Mandated Programs: Included in the above General Fund appropriation are
6 the following:
7 (a) $5,959,800 in fiscal year 2026-2027 and $6,476,800 in fiscal year 2027-2028
8 for the Gatton Academy of Mathematics and Science in Kentucky;
9 (b) $1,750,000 in each fiscal year for the Kentucky Mesonet;
10 (c) Notwithstanding KRS 61.5991, $1,412,000 in each fiscal year to support the
11 university's share of the anticipated retirement costs over the university's fiscal year
12 2019-2020 baseline contribution as adjusted and posted under the 2026 Budget Bills tile
13 on the Legislative Research Commission's website; and
14 (d) $1,866,900 in each fiscal year to support the Commonwealth’s Property and
15 Casualty Insurance Fund premium.
16 11. KENTUCKY COMMUNITY AND TECHNICAL COLLEGE SYSTEM
17 2026-27 2027-28
18 General Fund 179,381,700 176,089,000
19 Restricted Funds 556,045,700 561,002,400
20 Federal Funds 295,517,000 295,516,800
21 TOTAL 1,030,944,400 1,032,608,200
22 (1) Mandated Programs: Included in the above General Fund appropriation are
23 the following:
24 (a) $6,000,000 in each fiscal year for KCTCS-TRAINS;
25 (b) $1,000,000 in each fiscal year for Adult Agriculture Education; and
26 (c) $3,164,800 in each fiscal year to support the Commonwealth’s Property and
27 Casualty Insurance Fund premium.
Page 120 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (2) Firefighters Foundation Program Fund: (a) Included in the above
2 Restricted Funds appropriation is $64,160,100 in fiscal year 2026-2027 and $63,175,400
3 in fiscal year 2027-2028 for the Firefighters Foundation Program Fund.
4 (b) Notwithstanding KRS 95A.250(1)(a), included in the above Restricted Funds
5 appropriation are sufficient funds for an incentive payment of $4,653 in fiscal year 2026-
6 2027 and $4,746 in fiscal year 2027-2028, plus an amount equal to the required
7 employer’s contribution on the supplement in each fiscal year for each qualified
8 professional firefighter under the Firefighters Foundation Program Fund. KRS
9 95A.250(1)(b) to (e) shall remain applicable, except that the administrative expense
10 reimbursement cap under KRS 95A.250(1)(e)(3) shall not exceed $500,000.
11 (c) Notwithstanding KRS 95A.262(2), included in the above Restricted Funds
12 appropriation is $15,300 in each fiscal year for aid payments for each qualified volunteer
13 fire department.
14 (d) Notwithstanding KRS 95A.200 to 95A.300, $18,800,000 in fiscal year 2026-
15 2027 shall be transferred to support projects as set forth in Part II, Capital Projects
16 Budget, of this Act.
17 (e) Notwithstanding KRS 95A.200 to 95A.300, included in the above Restricted
18 Funds appropriation is $1,869,900 in each fiscal year for the State Fire Rescue Training
19 mandated program.
20 (f) Notwithstanding KRS 95A.200 to 95A.300, included in the above Restricted
21 Funds appropriation is $1,556,000 in fiscal year 2026-2027 to be transferred to the
22 Replace Unsafe Fire Equipment capital project for the Energy and Environment Cabinet
23 as set forth in Part II, Capital Projects Budget, of this Act.
24 (3) Firefighters Training Center Fund: Notwithstanding KRS 95A.262(3),
25 $1,000,000 in Restricted Funds is provided in each fiscal year for the Firefighters
26 Training Center Fund.
27 (4) Guaranteed Energy Savings Performance Contracts: Notwithstanding
Page 121 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 KRS 56.770 and 56.774, guaranteed energy savings performance contracts may be
2 executed for buildings operated by the Kentucky Community and Technical College
3 System under agreements governed by KRS 164.593.
4 (5) Disposition of KCTCS Property: Notwithstanding KRS 45.777, the KCTCS
5 governing board may elect to sell or dispose of real property or major equipment and
6 proceeds that are surplus to its needs and retain the proceeds of any sale.
7 (6) Other Postemployment Benefits Trust Fund: By October 1, 2026, the
8 President of the Kentucky Community and Technical College System (KCTCS) is
9 directed to have determined the actuarial liabilities of the KCTCS Other Postemployment
10 Trust Fund effective December 31, 2026, and provide a report to the Interim Joint
11 Committee on Appropriations and Revenue. By January 1, 2027, with the assistance of
12 the State Budget Director and the Secretary of the Finance and Administration Cabinet,
13 the President of KCTCS shall submit a plan to the Legislative Research Commission to
14 have the difference between the balance of the KCTCS Other Postemployment Benefits
15 Trust Fund and the actuarial liabilities of the fund transferred to the Budget Reserve Trust
16 Fund Account (KRS 48.705). It is the intent of the 2026 General Assembly to take action
17 on the plan submitted to the Legislative Research Commission in the 2027 Regular
18 Session.
19 (7) Commonwealth West Healthcare Workforce Innovation Center - Carry
20 Forward of Appropriation Balance: Notwithstanding KRS 45.229, the Federal Fund
21 appropriation balance from 2022 Ky. Acts ch. 199, Part I, J., 11., (6) shall not lapse and
22 shall carry forward.
23 12. POSTSECONDARY EDUCATION PERFORMANCE FUND
24 2026-27 2027-28
25 General Fund 115,000,000 115,000,000
26 TOTAL - POSTSECONDARY EDUCATION
27 2026-27 2027-28
Page 122 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 General Fund (Tobacco) 9,415,900 7,245,500
2 General Fund 1,466,348,600 1,450,585,300
3 Restricted Funds 11,894,631,900 12,760,149,500
4 Federal Funds 1,123,312,500 1,148,968,000
5 TOTAL 14,493,708,900 15,366,948,300
6 L. PUBLIC PROTECTION CABINET
7 Budget Units
8 1. SECRETARY
9 2026-27 2027-28
10 Restricted Funds 11,485,300 11,172,000
11 2. PROFESSIONAL LICENSING
12 2026-27 2027-28
13 Restricted Funds 5,377,800 5,321,900
14 Federal Funds 204,700 204,700
15 TOTAL 5,582,500 5,526,600
16 (1) Additional Personnel: Included in the above Restricted Funds appropriation
17 is $100,900 in fiscal year 2026-2027 and $100,600 in fiscal year 2027-2028 to support
18 additional personnel.
19 (2) Real Property Boards: Included in the above appropriations is sufficient
20 funding to implement and carry out the provisions of 2024 Ky. Acts ch. 182.
21 3. BOXING AND WRESTLING AUTHORITY
22 2026-27 2027-28
23 Restricted Funds 326,400 325,000
24 (1) Additional Personnel: Included in the above Restricted Funds appropriation
25 is $70,000 in each fiscal year to support additional personnel.
26 4. ALCOHOLIC BEVERAGE CONTROL
27 2026-27 2027-28
Page 123 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds 9,177,600 8,636,500
2 Federal Funds 1,014,700 1,014,700
3 TOTAL 10,192,300 9,651,200
4 (1) Training Incentive Payments: Notwithstanding KRS 15.460(1), included in
5 the above Restricted Funds appropriation is $4,653 in fiscal year 2026-2027 and $4,746
6 in fiscal year 2027-2028 for each participant for training incentive payments.
7 (2) Special Temporary Nonprofit License: (a) Notwithstanding any provisions
8 of KRS Chapters 241 to 244 or administrative regulations promulgated thereunder to the
9 contrary, a special temporary nonprofit license shall be issued to a nonprofit organization
10 or the organizer or sponsor of a state, regional, or national conference for its use at state,
11 regional, or national conferences, which shall not include a political campaign fundraiser.
12 (b) A special temporary nonprofit license shall authorize the holder and its
13 employees or agents to purchase, transport, receive, possess, store, sell, donate, deliver,
14 and serve alcoholic beverages, including wine, malt beverages, and distilled spirits, to be
15 sold by the package or the drink, or to be served free of charge by the drink, in person to
16 attendees of state, regional, or national conferences, by auction, or by raffle, or sold or
17 served free of charge by the drink to attendees of state, regional, or national conferences,
18 and to receive alcoholic beverages from distillers, rectifiers, wineries, small farm
19 wineries, brewers, microbreweries, wholesalers, distributors, retailers, or any other
20 person, by gift, donation, or delivery for its use at a state, regional, or national
21 conference.
22 (c) The location at which the alcoholic beverages are auctioned, sold, raffled,
23 served, or consumed under the provisions of this subsection shall not constitute a public
24 place for the purposes of KRS Chapter 222. Nonprofit events, including state, regional, or
25 national conferences, may be conducted on licensed or unlicensed premises.
26 (d) A special temporary nonprofit license shall not be issued for any period longer
27 than 30 days.
Page 124 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (e) Notwithstanding any other provision of KRS Chapters 241 to 244, a distiller,
2 rectifier, winery, small farm winery, brewer, microbrewery, wholesaler, distributor, or
3 retailer may donate, give away, or deliver any of its products to a nonprofit organization
4 or the organizer or sponsor of a state, regional, or national conference possessing a
5 special temporary nonprofit license.
6 (f) Nothing herein shall prohibit the employees of an entity that holds a special
7 temporary nonprofit license from serving or selling wine, malt beverages, and distilled
8 spirits by the drink to attendees of state, regional, or national conference.
9 (g) Nothing in this section shall prohibit the employees of retail drink licensees,
10 including but not limited to NQ1, NQ2, NQ3, and licensed caterers from serving or
11 selling wine, malt beverages, and distilled spirits by the drink at a state, regional, or
12 national conference on the account of or on behalf of a nonprofit organization or the
13 organizer or sponsor of a state, regional, or national conference that holds a special
14 temporary nonprofit license.
15 (3) Additional Tobacco, Nicotine, and Vapor Personnel: Included in the above
16 Restricted Funds appropriation is $2,750,000 in fiscal year 2026-2027 and $2,250,000 in
17 fiscal year 2027-2028 to support additional personnel and vehicles.
18 5. FINANCIAL INSTITUTIONS
19 2026-27 2027-28
20 Restricted Funds 17,785,200 17,651,100
21 6. HOUSING, BUILDINGS AND CONSTRUCTION
22 2026-27 2027-28
23 General Fund 251,100 3,282,000
24 Restricted Funds 28,935,700 25,761,600
25 TOTAL 29,186,800 29,043,600
26 (1) Industrial or Business Project Plan Reviews and Inspections:
27 Notwithstanding KRS 198B.060, permit applicants may request local or state
Page 125 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 governments to perform plan review, inspection, and enforcement responsibilities related
2 to industrial or business projects.
3 (2) Inspectors and Reviewers Reporting Requirement: The Department of
4 Housing, Buildings and Construction shall submit a report to the Legislative Research
5 Commission, Office of Budget Review, by December 1 of each fiscal year detailing the
6 number of full-time inspectors and reviewers, in addition to the number of completed
7 inspections and plan reviews.
8 (3) Operations of the Department: Notwithstanding KRS 227A.050, included
9 in the above Restricted Funds appropriation is $2,977,600 in fiscal year 2026-2027 to
10 support of the operations of the Department of Housing, Buildings and Construction,
11 Division of General Inspections.
12 (4) School Building Plan Reviews and Inspections: Notwithstanding KRS
13 198B.060, local governments may have jurisdiction for plan review, inspection, and
14 enforcement responsibilities over buildings intended for educational purposes, other than
15 licensed day-care centers, at the discretion of the local school districts.
16 (5) Additional Plumbing Personnel: Included in the above Restricted Funds
17 appropriation is $206,900 in fiscal year 2026-2027 and $206,200 in fiscal year 2027-2028
18 to support additional personnel.
19 (6) Additional HVAC Personnel: Included in the above Restricted Funds
20 appropriation is $198,800 in fiscal year 2026-2027 and $198,100 in fiscal year 2027-2028
21 to support additional personnel.
22 (7) Additional Hazardous Material Personnel: Included in the above Restricted
23 Funds appropriation is $182,600 in fiscal year 2026-2027 and $182,000 in fiscal year
24 2027-2028 to support additional personnel.
25 (8) Additional Electrical Personnel: Included in the above Restricted Funds
26 appropriation is $531,900 in fiscal year 2026-2027 and $530,000 in fiscal year 2027-2028
27 to support additional personnel.
Page 126 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (9) Additional Boiler Personnel: Included in the above Restricted Funds
2 appropriation is $182,600 in fiscal year 2026-2027 and $182,000 in fiscal year 2027-2028
3 to support additional personnel.
4 (10) Additional Building Code Enforcement Personnel: Included in the above
5 Restricted Funds appropriation is $299,700 in fiscal year 2026-2027 and $298,700 in
6 fiscal year 2027-2028 to support additional personnel.
7 7. INSURANCE
8 2026-27 2027-28
9 Restricted Funds 22,745,400 22,525,500
10 (1) Training Incentive Payments: Notwithstanding KRS 15.460(1), included in
11 the above Restricted Funds appropriation is $4,653 in fiscal year 2026-2027 and $4,746
12 in fiscal year 2027-2028 for each participant for training incentive payments.
13 (2) Property and Casualty Actuarial Contract Increase: Included in the above
14 Restricted Funds appropriation is $225,000 in each fiscal year to support an increase in
15 actuarial contracts.
16 (3) Financial Standards Actuarial Contract Increase: Included in the above
17 Restricted Funds appropriation is $750,000 in each fiscal year to support an increase in
18 actuarial contracts.
19 (4) Restricted Funds Transfer for Medicaid Benefits: Notwithstanding KRS
20 304.2-400(2), there is hereby transferred $290,000,000 in fiscal year 2026-2027 from the
21 Insurance Regulatory Trust Fund in the Department of Insurance to the Budget Reserve
22 Trust Fund Account (KRS 48.705). It is the intent of the 2026 General Assembly to
23 reserve $290,000,000 for potential appropriation for Medicaid Benefits in the 2027
24 Regular Session if deemed necessary for claims and payments in fiscal year 2026-2027 or
25 fiscal year 2027-2028.
26 (5) Local School District Insurance Coverage Evaluation: The Department of
27 Insurance shall submit a report using information reported by the Kentucky Department
Page 127 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 of Education pursuant to Part I., C., 2., (8) of this Act to the Interim Joint Committee on
2 Appropriations and Revenue no later than November 1, 2026. The report shall evaluate
3 and determine the adequacy of insurance coverage for each local school district, as
4 required under 702 KAR 3:030.
5 (6) Restricted Funds Transfer - Out of Home Care: Notwithstanding KRS
6 304.2-400(2), there is hereby transferred $22,000,000 in each fiscal year from the
7 Insurance Regulatory Trust Fund in the Department of Insurance to the Out of Home
8 Care Replacement Fund.
9 (7) Restricted Funds Transfer - Dental Services: Notwithstanding KRS 304.2-
10 400(2), there is hereby transferred $8,000,000 in each fiscal year from the Insurance
11 Regulatory Trust Fund in the Department of Insurance to Medicaid Benefits.
12 8. CLAIMS AND APPEALS
13 2026-27 2027-28
14 General Fund 2,124,900 2,083,300
15 Restricted Funds 1,279,800 1,274,400
16 Federal Funds 771,900 773,500
17 TOTAL 4,176,600 4,131,200
18 (1) Administrative Expenses and Claims: Notwithstanding KRS 304.2-400(2),
19 excess Restricted Funds from the Department of Insurance shall be transferred to the
20 Crime Victims' Compensation Fund and made available to support administrative
21 expenses and claims.
22 (2) Victims of Crime: Included in the above appropriations is sufficient funding
23 to implement and carry out the provisions of 2024 Ky. Acts ch. 67.
24 TOTAL - PUBLIC PROTECTION CABINET
25 2026-27 2027-28
26 General Fund 2,376,000 5,365,300
27 Restricted Funds 97,113,200 92,668,000
Page 128 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Federal Funds 1,991,300 1,992,900
2 TOTAL 101,480,500 100,026,200
3 M. TOURISM, ARTS AND HERITAGE CABINET
4 Budget Units
5 1. SECRETARY
6 2026-27 2027-28
7 General Fund 3,427,400 3,655,500
8 Restricted Funds 20,616,900 19,574,400
9 TOTAL 24,044,300 23,229,900
10 (1) Kentucky Mountain Regional Recreation Authority: Restricted Funds in
11 the amount of $1,500,000 in each fiscal year shall be transferred to the Department for
12 Local Government from taxes collected pursuant to KRS 142.400(2) to support the
13 Kentucky Mountain Regional Recreation Authority.
14 2. ARTISANS CENTER
15 2026-27 2027-28
16 General Fund 1,227,100 1,233,400
17 Restricted Funds 1,242,100 1,217,000
18 TOTAL 2,469,200 2,450,400
19 (1) Feasibility Study: The cabinet shall coordinate with the Transportation
20 Cabinet to conduct a feasibility study on the Kentucky Artisan Center’s sustainability and
21 its potential acquisition by Berea College and the City of Berea and provide a report
22 regarding its findings to the Interim Joint Committee on Appropriations and Revenue by
23 July 1, 2027.
24 3. TOURISM
25 2026-27 2027-28
26 General Fund 3,461,300 3,431,100
27 Restricted Funds 72,700 72,700
Page 129 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 TOTAL 3,534,000 3,503,800
2 4. PARKS
3 2026-27 2027-28
4 General Fund 64,177,700 61,215,200
5 Restricted Funds 48,157,300 50,688,200
6 TOTAL 112,335,000 111,903,400
7 (1) Park Capital Maintenance and Renovation Fund: Notwithstanding KRS
8 148.810, no transfer to the Park Capital Maintenance and Renovation Fund shall be
9 made.
10 (2) Training Incentive Payments: Notwithstanding KRS 15.460(1), included in
11 the above Restricted Funds appropriation is $4,653 in fiscal year 2026-2027 and $4,746
12 in fiscal year 2027-2028 for each participant for training incentive payments.
13 (3) Parks Capital Project Tracking Plan and Report: The Department of Parks
14 shall establish a project tracking plan and prepare a report on capital projects authorized
15 in 2024 Ky. Acts ch. 175, Part II, K., 2., including but not limited to the projects funded,
16 the current status of each project and projected completion date, the amount expended on
17 each project, and filled positions associated with the projects. The Department of Parks
18 shall submit this report on a quarterly basis beginning August 1, 2024, to the Interim
19 Joint Budget Review Subcommittee on Economic Development, Tourism, and
20 Environmental Protection.
21 5. HORSE PARK COMMISSION
22 2026-27 2027-28
23 General Fund 1,701,300 1,666,900
24 Restricted Funds 12,801,700 12,964,300
25 TOTAL 14,503,000 14,631,200
26 (1) Training Incentive Payments: Notwithstanding KRS 15.460(1), included in
27 the above Restricted Funds appropriation is $4,653 in fiscal year 2026-2027 and $4,746
Page 130 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 in fiscal year 2027-2028 for each participant for training incentive payments.
2 6. STATE FAIR BOARD
3 2026-27 2027-28
4 General Fund 6,761,700 6,856,800
5 Restricted Funds 58,050,000 60,317,600
6 TOTAL 64,811,700 67,174,400
7 (1) State Fair Board Property Improvements: Notwithstanding any statute to
8 the contrary, the State Fair Board shall give preference to Kentucky businesses to make
9 improvements to State Fair Board properties for hotel development. The Board shall
10 recommend the participation of Kentucky-based businesses and shall also recommend the
11 participation of other Kentucky-based businesses offering solutions to accomplish the
12 goal of improving hotel development. For the purposes of this subsection, "Kentucky-
13 based business" means a business that has employees working in Kentucky and that
14 operates a principal executive office in Kentucky from which those employees, other
15 offices, and affiliated entities are directed and controlled.
16 (2) Public-Private Partnerships: Notwithstanding KRS 45A.077(8) and Part II,
17 (8) of this Act, the utilization of the public-private partnership delivery method for State
18 Fair Board projects of at least $25,000,000 does not need to be explicitly authorized by
19 the General Assembly.
20 (3) Kentucky Exposition Center Facility Expansion & Staffing: Included in
21 the above Restricted Funds appropriations is $1,720,600 in fiscal year 2026-2027 and
22 $3,740,100 in 2027-2028 to support the Kentucky Exposition Center facility expansion
23 and staffing.
24 (4) Rental Services and Increased Contract Costs: Included in the above
25 Restricted Funds appropriations is $950,500 in each fiscal year to support rental services
26 and increased contract costs.
27 7. FISH AND WILDLIFE RESOURCES
Page 131 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 2026-27 2027-28
2 Restricted Funds 57,212,300 56,566,200
3 Federal Funds 27,415,400 27,769,800
4 TOTAL 84,627,700 84,336,000
5 (1) Fish and Wildlife Resources Peace Officers' Stipend: Notwithstanding
6 KRS 15.460(1), included in the above Restricted Funds appropriation is $4,653 in fiscal
7 year 2026-2027 and $4,746 in fiscal year 2027-2028 for each participant for training
8 incentive payments.
9 (2) Fees-in-Lieu-of Stream Mitigation Reporting: The Department of Fish and
10 Wildlife Resources shall develop a report of all projects managed by the Fees-in-Lieu-of
11 Stream Mitigation Program. The Department shall present this report to the Interim Joint
12 Committee on Tourism, Small Business, and Information Technology by August 1 of
13 each fiscal year.
14 8. HISTORICAL SOCIETY
15 2026-27 2027-28
16 General Fund 7,752,700 7,826,500
17 Restricted Funds 464,600 363,400
18 Federal Funds 122,000 122,000
19 TOTAL 8,339,300 8,311,900
20 9. ARTS COUNCIL
21 2026-27 2027-28
22 General Fund 1,776,000 1,747,000
23 Restricted Funds 76,400 68,200
24 Federal Funds 827,800 834,800
25 TOTAL 2,680,200 2,650,000
26 10. HERITAGE COUNCIL
27 2026-27 2027-28
Page 132 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 General Fund 1,747,500 1,737,000
2 Restricted Funds 697,200 660,200
3 Federal Funds 1,054,700 1,070,400
4 TOTAL 3,499,400 3,467,600
5 (1) American Battlefield Trust: Notwithstanding KRS 45.229, any unexpended
6 balance from the appropriation set forth in 2022 Ky. Acts ch. 199, Part I, L., 10., (2) shall
7 not lapse and shall carry forward.
8 11. KENTUCKY CENTER FOR THE ARTS
9 2026-27 2027-28
10 General Fund 597,600 579,000
11 TOTAL - TOURISM, ARTS AND HERITAGE CABINET
12 2026-27 2027-28
13 General Fund 92,630,300 89,948,400
14 Restricted Funds 199,391,200 202,492,200
15 Federal Funds 29,419,900 29,797,000
16 TOTAL 321,441,400 322,237,600
17 N. BUDGET RESERVE TRUST FUND
18 Budget Unit
19 1. BUDGET RESERVE TRUST FUND
20 2026-27 2027-28
21 General Fund 296,581,400 50,413,900
22 PART II
23 CAPITAL PROJECTS BUDGET
24 (1) Capital Construction Fund Appropriations and Reauthorizations:
25 Moneys in the Capital Construction Fund are appropriated for the following capital
26 projects subject to the conditions and procedures in this Act. Items listed without
27 appropriated amounts are previously authorized for which no additional amount is
Page 133 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 required. These items are listed in order to continue their current authorization into the
2 2026-2028 fiscal biennium. Unless otherwise specified, reauthorized projects shall
3 conform to the original authorization enacted by the General Assembly.
4 (2) Expiration of Existing Line-Item Capital Construction Projects: All
5 appropriations to existing line-item capital construction and information technology
6 projects expire on June 30, 2026, unless specifically reauthorized in this Act with the
7 following exceptions:
8 (a) A construction or purchase contract for the project shall have been awarded
9 by June 30, 2026;
10 (b) Permanent financing or a short-term line of credit sufficient to cover the total
11 authorized project scope shall have been obtained in the case of projects authorized for
12 bonds, if the authorized project completes an initial draw on the line of credit within the
13 fiscal biennium immediately subsequent to the original authorization; and
14 (c) Grant or loan agreements, if applicable, shall have been finalized and properly
15 signed by all necessary parties by June 30, 2026.
16 Notwithstanding the criteria set forth in this subsection and KRS 45.229 and
17 45.770(5)(d), funds appropriated to 2022-2024 and 2024-2026 fiscal biennia maintenance
18 pools shall not lapse and shall carry forward.
19 (3) Bond Proceeds Investment Income: Investment income earned from bond
20 proceeds beyond that which is required to satisfy Internal Revenue Service arbitrage
21 rebates and penalties and excess bond proceeds upon the completion of a bond-financed
22 capital project shall be used to pay debt service according to the Internal Revenue Service
23 Code and accompanying regulations.
24 (4) Appropriations for Projects Not Line-Itemized: Inasmuch as the
25 identification of specific projects in a variety of areas of the state government cannot be
26 ascertained with absolute certainty at this time, amounts are appropriated for specific
27 purposes to projects which are not individually identified in this Act in the following
Page 134 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 areas: Kentucky Infrastructure Authority Water and Sewer projects; Flood Control
2 projects; Repair of State-Owned Dams; Guaranteed Energy Savings Performance
3 Contract projects; Wetland and Stream Mitigation projects; maintenance pools;
4 Economic Development projects, which shall include authorization for the High-Tech
5 Construction Pool and the High-Tech Investment Pool; Postsecondary Education pools;
6 Legacy System Modernization Pool; State Schools HVAC Pool; State Schools Safety and
7 Security Pool; State Parks Improvement; Fish and Wildlife Land Acquisition Pool;
8 Kentucky Exposition Center Paving Pool; Wastewater Treatment Upgrades Pool; State
9 Parks Utility Infrastructure Replacement Pool; and State Fair Board Property
10 Improvements. Notwithstanding any statute to the contrary, projects estimated to cost
11 $1,000,000 and over and equipment estimated to cost $200,000 and over shall be reported
12 to the Capital Projects and Bond Oversight Committee.
13 (5) Capital Construction and Equipment Purchase Contingency Account: If
14 funds in the Capital Construction and Equipment Purchase Contingency Account are not
15 sufficient, then expenditures of the fund are to be paid first from the General Fund
16 Surplus Account (KRS 48.700), if available, or from the Budget Reserve Trust Fund
17 Account (KRS 48.705), subject to the conditions and procedures provided in this Act.
18 (6) Emergency Repair, Maintenance, and Replacement Account: If funds in
19 the Emergency Repair, Maintenance, and Replacement Account are not sufficient, then
20 up to $2,500,000 of expenditures of the fund are to be paid first from the General Fund
21 Surplus Account (KRS 48.700), if available, or from the Budget Reserve Trust Fund
22 Account (KRS 48.705), subject to the conditions and procedures provided in this Act.
23 (7) Appropriation-Supported Debt: To lower the cost of borrowing, the
24 agencies identified in KRS 45A.850(1)(a) and (2)(a) are authorized to refinance
25 appropriation-supported debt obligations that have previously been issued and for which
26 the Commonwealth is currently making lease-rental payments to meet the current debt
27 service requirements. Such action is authorized provided that the principal amount of any
Page 135 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 such debt obligation is not increased and the term of the debt obligation is not extended.
2 Any such refinancing shall still be subject to the requirements of KRS 45.750 to 45.810
3 for reporting to the Capital Projects and Bond Oversight Committee.
4 (8) Public-Private Partnerships: Notwithstanding KRS 45.763(3) and
5 45A.077(8), the utilization of the public-private partnership delivery method for projects
6 of at least $1,000,000 shall be authorized by the General Assembly.
7 A. GENERAL GOVERNMENT
8 Budget Units 2026-27 2027-28
9 1. VETERANS' AFFAIRS
10 001. Radcliff Veterans Center HVAC System Replacement Additional
11 Bond Funds 16,000,000 -0-
12 002. Maintenance Pool - 2026-2028
13 Investment Income 1,000,000 1,000,000
14 003. Expand Columbarium Wall - Kentucky Veterans Cemetery Northeast
15 Federal Funds -0- 2,000,000
16 2. KENTUCKY INFRASTRUCTURE AUTHORITY
17 001. KIA Fund A - Federally Assisted Wastewater Program
18 Federal Funds 75,502,000 20,223,000
19 Bond Funds 14,560,000 4,045,000
20 Agency Bonds 30,000,000 -0-
21 TOTAL 120,062,000 24,268,000
22 002. KIA Fund F - Drinking Water Revolving Loan Program
23 Federal Funds 109,906,000 18,294,000
24 Bond Funds 13,124,000 3,659,000
25 Agency Bonds 30,000,000 -0-
26 TOTAL 153,030,000 21,953,000
27 3. MILITARY AFFAIRS
Page 136 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 001. Armory Installation Facility Maintenance Pool - 2026-2028
2 Investment Income 4,000,000 4,000,000
3 002. Kentucky Youth Challenge Academies Maintenance Pool - 2026-2028
4 Investment Income 1,000,000 1,000,000
5 003. Bluegrass Station Facility Maintenance Pool - 2026-2028
6 Restricted Funds 1,000,000 1,000,000
7 004. Construct Wendell H. Ford Regional Training Center Unaccompanied
8 Housing Advanced Skills Training
9 Federal Funds 21,000,000 -0-
10 005. Construct Multi-Purpose Building Bluegrass Station
11 Other Funds 15,000,000 -0-
12 006. Construct Civil Support Team Facility Additional Reauthorization
13 ($13,200,000 Federal Funds)
14 Federal Funds 11,400,000 -0-
15 007. Construct New Barracks at Wendell H. Ford Regional Training Center
16 Federal Funds 8,000,000 -0-
17 008. Construct Readiness Center Somerset Additional Reauthorization
18 ($24,750,000 Federal Funds, $8,259,000 Bond Funds)
19 Federal Funds -0- 4,898,000
20 Investment Income -0- 1,633,000
21 TOTAL -0- 6,531,000
22 009. Construct Jackson Field Maintenance Shop Additional Reauthorization
23 ($15,000,000 Federal Funds)
24 Federal Funds 5,000,000 -0-
25 010. Ashland Armory Restoration Phase 1
26 Federal Funds 2,000,000 -0-
27 Investment Income 2,000,000 -0-
Page 137 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 TOTAL 4,000,000 -0-
2 011. Construct Armory 4 Frankfort Additional Reauthorization ($3,000,000
3 Federal Funds, $1,000,000 Bond Funds)
4 Federal Funds 2,000,000 -0-
5 Investment Income 2,000,000 -0-
6 TOTAL 4,000,000 -0-
7 012. Demolish Bluegrass Station Boiler Plant
8 Restricted Funds 4,000,000 -0-
9 013. Construct and Extend Electric Bluegrass Station
10 Restricted Funds 3,500,000 -0-
11 014. Construct Fitness Center Facility Wendell H. Ford Regional Training Center
12 Additional Reauthorization ($5,000,000 Federal Funds)
13 Federal Funds 3,000,000 -0-
14 015. Kentucky Army National Guard Training Site Master Plan
15 Federal Funds 2,000,000 -0-
16 016. Construct Road Improvements Bluegrass Station
17 Restricted Funds 1,500,000 -0-
18 017. Construct New Barracks at Harold L. Disney Training Site Additional
19 Reauthorization ($3,000,000 Federal Funds)
20 Federal Funds 1,000,000 -0-
21 018. Construct Harold L. Disney Training Site Drainage Improvements
22 Reauthorization ($2,000,000 Federal Funds)
23 019. Construct Improve Sewer System Bluegrass Station Reauthorization
24 ($5,000,000 Restricted Funds)
25 020. Extension of Utilities Wendell H. Ford Regional Training Center
26 Reauthorization ($2,000,000 Federal Funds)
27 021. Construct Support Building Wendell H. Ford Regional Training Center
Page 138 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Reauthorization ($3,000,000 Federal Funds)
2 4. DEPARTMENT FOR LOCAL GOVERNMENT
3 001. Flood Control Local Match
4 Investment Income 6,000,000 6,000,000
5 5. ATTORNEY GENERAL
6 001. Franklin County - Lease
7 002. Upgrade Technology Additional Reauthorization ($2,000,000 Bond Funds)
8 Investment Income 600,000 -0-
9 6. COMMONWEALTH'S ATTORNEYS
10 001. Jefferson County - Lease
11 7. TREASURY
12 001. Replace HVAC Leibert Units
13 Investment Income 354,000 -0-
14 002. Xerox Check Printer - Secondary
15 Investment Income 66,000 -0-
16 8. AGRICULTURE
17 001. Large Capacity Scale Trucks
18 Restricted Funds 800,000 -0-
19 002. Franklin County - Lease
20 9. KENTUCKY PUBLIC PENSIONS AUTHORITY
21 001. Pension Administration System Technology Modernization - Planning - Phase
22 I
23 Restricted Funds -0- 15,000,000
24 10. OCCUPATIONAL AND PROFESSIONAL BOARDS AND COMMISSIONS
25 a. Nursing
26 001. Jefferson County - Lease
27 11. KENTUCKY RIVER AUTHORITY
Page 139 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 001. Renovate Lock 5
2 Restricted Funds -0- 4,200,000
3 002. Maintenance Pool - 2026-2028
4 Restricted Funds 2,000,000 2,000,000
5 003. Locks 2 and 3 Upper Guide Wall Repair Reauthorization ($4,131,000
6 Restricted Funds)
7 004. Design and Repair Dam 7 Reauthorization ($6,400,000 Restricted Funds)
8 12. SCHOOL FACILITIES CONSTRUCTION COMMISSION
9 001. Offers of Assistance - 2024-2026 Reauthorization and Reallocation
10 ($16,309,000 Bond Funds)
11 Bond Funds 23,691,000 -0-
12 (1) Reauthorization and Reallocation: The above project is authorized from a
13 reallocation of the projects set forth in 2024 Ky. Acts ch. 175, Part II, A., 10., 005.
14 002. School Facilities Construction Commission Reauthorization ($89,710,000
15 Bond Funds)
16 B. ECONOMIC DEVELOPMENT CABINET
17 Budget Unit 2026-27 2027-28
18 1. ECONOMIC DEVELOPMENT
19 (1) Economic Development Bond Issues: Before any economic development
20 bonds are issued, the proposed bond issue shall be approved by the Secretary of the
21 Finance and Administration Cabinet and the State Property and Buildings Commission
22 under KRS 56.440 to 56.590. In addition to the terms and conditions of KRS 154.12-100,
23 administration of the Economic Development Bond Program by the Secretary of the
24 Cabinet for Economic Development is subject to the following guideline: project
25 selection shall be documented when presented to the Secretary of the Finance and
26 Administration Cabinet. Included in the documentation shall be the rationale for selection
27 and expected economic development impact.
Page 140 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (2) Use of New Economy Funds: Notwithstanding KRS 154.12-100, 154.12-
2 278(4) and (5), and 154.20-035, the Secretary of the Cabinet for Economic Development
3 may use funds appropriated in the Economic Development Fund Program, High-Tech
4 Construction/Investment Pool, and the Kentucky Economic Development Finance
5 Authority Loan Pool interchangeably for economic development projects.
6 001. Economic Development Bond Programs - 2026-2028
7 Bond Funds 5,000,000 5,000,000
8 002. High-Tech Construction/Investment Pool - 2026-2028
9 Bond Funds 5,000,000 5,000,000
10 003. Kentucky Economic Development Finance Authority Loan Pool - 2026-2028
11 Bond Funds 5,000,000 5,000,000
12 C. DEPARTMENT OF EDUCATION
13 Budget Units 2026-27 2027-28
14 1. OPERATIONS AND SUPPORT SERVICES
15 001. Maintenance Pool - 2026-2028
16 Investment Income 2,000,000 1,100,000
17 2. LEARNING AND RESULTS SERVICES
18 001. State Schools Electrical Upgrades
19 Bond Funds 5,150,000 -0-
20 002. State Schools Lighting Upgrades
21 Bond Funds 2,066,000 -0-
22 D. EDUCATION AND LABOR CABINET
23 Budget Units 2026-27 2027-28
24 1. GENERAL ADMINISTRATION AND PROGRAM SUPPORT
25 001. Maintenance Pool - 2026-2028
26 Investment Income 2,000,000 2,000,000
27 2. KENTUCKY EDUCATIONAL TELEVISION
Page 141 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 001. Maintenance Pool - 2026-2028
2 Investment Income 750,000 750,000
500,000
3 002. KET Capitol Production Center Maintenance Pool - 2026-2028
700,000
4 Investment Income 500,000
2027-28
5 3. LIBRARIES AND ARCHIVES 500,000
6 a. General Operations -0-
1,000,000
7 001. Franklin County - Lease
-0-
8 4. WORKFORCE DEVELOPMENT
9 001. Maintenance Pool - 2026-2028
10 Investment Income 700,000
11 002. Hardin County - Lease
12 003. Kenton County - Lease
13 5. DISABILITY DETERMINATIONS
14 001. Franklin County - Lease
15 E. ENERGY AND ENVIRONMENT CABINET
16 Budget Units 2026-27
17 1. SECRETARY
18 001. Maintenance Pool - 2026-2028
19 Investment Income 500,000
20 2. ENVIRONMENTAL PROTECTION
21 001. State-Owned Dam Repair - 2026-2028
22 Bond Funds 21,060,000
23 002. State Superfund Sites - 2026-2028
24 Investment Income 1,000,000
25 3. NATURAL RESOURCES
26 001. Replace Unsafe Fire Equipment
27 Restricted Funds 1,556,000
Page 142 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 F. FINANCE AND ADMINISTRATION CABINET
2 Budget Units 2026-27 2027-28
3 1. CONTROLLER
4 001. Upgrade & Enhancement eMARS Systems Additional
5 Bond Funds 3,765,000 -0-
6 2. FACILITIES AND SUPPORT SERVICES
7 001. Maintenance Pool - 2026-2028
8 Investment Income 7,500,000 7,500,000
9 002. Renovate Cabinet for Human Resources Phase 2
10 Investment Income 8,000,000 -0-
11 003. Guaranteed Energy Savings Performance Contracts
12 004. Restore Old State Capitol Annex
13 Bond Funds 37,100,000 -0-
14 005. Deferred Maintenance Historic Properties
15 Investment Income 3,000,000 -0-
16 006. Asphalt Pool
17 Investment Income 1,500,000 -0-
18 007. Roof Pool
19 Investment Income 2,000,000 -0-
20 008. Replace Capitol Parking Structure
21 Bond Funds 126,000,000 -0-
22 009. Replace Capitol Terraces
23 Bond Funds 42,000,000 -0-
24 010. Capitol Annex Renovation Additional Reauthorization ($168,000,000 Bond
25 Funds)
26 Bond Funds 175,000,000 -0-
27 3. COMMONWEALTH OFFICE OF TECHNOLOGY
Page 143 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 001. Kentucky from Above
2 Investment Income 6,000,000 6,000,000
3 002. Enterprise Application and AI Inventory System
4 Investment Income 4,000,000 2,000,000
5 003. Alternate Data Center - Lease
6 G. HEALTH AND FAMILY SERVICES CABINET
7 Budget Units 2026-27 2027-28
8 1. GENERAL ADMINISTRATION AND PROGRAM SUPPORT
9 001. Maintenance Pool - 2026-2028
10 Investment Income 10,700,000 10,700,000
11 2. BEHAVIORAL HEALTH, DEVELOPMENTAL AND INTELLECTUAL
12 DISABILITIES
13 001. Oakwood Renovate/Replace Cottages Phase IV
14 Investment Income 12,616,000 -0-
15 002. Western State Nursing Facility Renovations II
16 Investment Income 6,621,000 -0-
17 003. Hazelwood Upgrade Elevators
18 Investment Income 2,880,000 -0-
19 004. Western State Hospital Repair/Replace Cooling Towers
20 Investment Income 1,920,000 -0-
21 3. PUBLIC HEALTH
22 001. Jefferson County - Lease
23 4. COMMUNITY BASED SERVICES
24 001. Kenton County - Lease
25 002. Fayette County - Lease
26 003. Warren County - Lease
27 004. Daviess County - Lease
Page 144 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 005. Perry County - Lease
2 006. Boone County - Lease
3 007. Hardin County - Lease
4 008. Boyd County - Lease
5 009. Campbell County - Lease
6 010. Johnson County - Lease
7 011. Floyd County - Lease
8 012. Shelby County - Lease
9 013. Greenup County - Lease
10 014. Muhlenberg County - Lease
11 015. Madison County - Lease
12 016. Marshall County - Lease
13 017. Harlan County - Lease
14 018. Pulaski County - Lease
15 019. Jefferson County - Lease
16 H. JUSTICE AND PUBLIC SAFETY CABINET
17 Budget Units 2026-27 2027-28
18 1. JUSTICE ADMINISTRATION 13,101,000
4,500,000
19 001. Northern Kentucky Medical Examiners Office - Lease 4,500,000
20 2. CRIMINAL JUSTICE TRAINING
21 001. Construct New Flat Track - Madisonville
22 Restricted Funds -0-
23 002. Maintenance Pool - 2026-2028
24 Restricted Funds 4,500,000
25 3. JUVENILE JUSTICE
26 001. Design Female Detention Facility - Central Kentucky
27 Bond Funds -0-
Page 145 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 002. Maintenance Pool - 2026-2028
2 Investment Income 7,200,000 7,200,000
3 003. Franklin County - Lease
4 4. STATE POLICE
5 001. Maintenance Pool - 2026-2028
6 Investment Income 6,500,000 6,500,000
7 002. Posts 7 (Richmond) and 10 (Harlan) Construction Additional
8 Investment Income 8,586,000 -0-
9 003. Northern Kentucky Crime Lab - Lease
10 5. CORRECTIONS
11 a. Adult Correctional Institutions
12 001. Maintenance Pool - 2026-2028
13 Investment Income 20,000,000 20,000,000
14 002. Mechanical, Electrical, Plumbing Upgrades and Replacement Pool
15 Investment Income 10,000,000 10,000,000
16 003. Demolition Kentucky State Reformatory Additional Reauthorization and
17 Reallocation ($9,776,000 Bond Funds)
18 Bond Funds 17,010,000 -0-
19 (1) Reauthorization and Reallocation: The above project is authorized from a
20 reallocation of the project set forth in 2018 Ky. Acts ch. 169, Part II, H., 4., a., 003.
21 004. Replace Kentucky State Penitentiary - Utilities Infrastructure Additional
22 Investment Income 15,758,000 -0-
23 005. Repair Northpoint Training Center - Exterior Dorms Masonry Tuckpoint
24 Additional
25 Bond Funds 11,787,000 -0-
26 006. Renovate Northpoint Training Center - Restricted Housing Unit Additional
27 Investment Income 3,500,000 -0-
Page 146 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 007. Southeast State Correctional Complex - Lease
2 b. Community Services and Local Facilities
3 001. Campbell County - Lease
4 002. Fayette County - Lease
5 6. PUBLIC ADVOCACY
6 001. Franklin County - Lease
7 002. Fayette County - Lease
8 003. Jefferson County - Lease
9 I. PERSONNEL CABINET
10 Budget Unit 2026-27 2027-28
11 1. GENERAL OPERATIONS
12 001. Enterprise Human Resources Information System Reauthorization and
13 Reallocation ($10,351,800 Bond Funds)
14 Bond Funds 9,848,000 130,869,000
15 (1) Reauthorization and Reallocation: The above project is authorized from a
16 reallocation of the projects set forth in 2016 Ky. Acts ch. 149, Part II, F., 1., 001 and
17 2024 Ky. Acts ch. 175, Part II, A., 11., 002.
18 J. POSTSECONDARY EDUCATION
19 (1) Postsecondary Education Asset Preservation Pool: The Postsecondary
20 Education Asset Preservation Pool provides funding for individual asset preservation,
21 renovation, and maintenance projects at Kentucky’s public postsecondary institutions in
22 Education, General, and state-owned and operated residential housing facilities for fixed
23 asset pedestrian and student parking areas, and for the razing of university-owned
24 buildings. Capital projects as defined in KRS 45.750(1)(f) are hereby authorized from
25 these funds or combination of funds thereof and shall be reported to the Capital Projects
26 and Bond Oversight Committee.
27 Budget Units 2025-26 2026-27 2027-28
Page 147 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 1. KENTUCKY HIGHER EDUCATION STUDENT LOAN CORPORATION
2 001. Jefferson County - Lease
3 2. EASTERN KENTUCKY UNIVERSITY
4 001. Asset Preservation Pool - 2026-2028
5 Bond Funds -0- 10,000,000 8,189,000
6 002. Construct Health Innovations Center
7 Agency Bonds -0- 330,000,000 -0-
8 003. Construct University Hotel and Conference Center
9 Other Funds -0- 130,000,000 -0-
10 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
11 004. IT Hardware Software Networking Systems Pool
12 Restricted Funds -0- 24,000,000 -0-
13 005. Maintenance Pool - 2026-2028
14 Restricted Funds -0- 20,000,000 -0-
15 006. Aviation Acquisition Pool - 2026-2028
16 Restricted Funds -0- 5,000,000 -0-
17 Bond Funds -0- 10,000,000 -0-
18 TOTAL -0- 15,000,000 -0-
19 007. Property Acquisitions Pool
20 Restricted Funds -0- 5,000,000 -0-
21 Other Funds -0- 5,000,000 -0-
22 TOTAL -0- 10,000,000 -0-
23 008. Upgrade and Improve Residence Halls Pool
24 Restricted Funds -0- 10,000,000 -0-
25 009. Scientific and Research Equipment Pool
26 Restricted Funds -0- 4,000,000 -0-
27 Federal Funds -0- 2,200,000 -0-
Page 148 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Other Funds -0- 2,200,000 -0-
2 TOTAL -0- 8,400,000 -0-
3 010. Repurpose and Renovate Commonwealth Hall
4 Restricted Funds -0- 6,000,000 -0-
5 011. Natural Area Improvement Pool
6 Restricted Funds -0- 1,000,000 -0-
7 012. Improve Campus Pedestrian, Parking and Transportation Pool
8 Reauthorization ($8,000,000 Agency Bonds, $3,000,000 Restricted Funds, $3,000,000
9 Other Funds)
10 013. Athletics Capital Improvements Pool Reauthorization ($25,000,000 Agency
11 Bonds, $25,000,000 Restricted Funds, $25,000,000 Other Funds)
12 014. Maintain/Expand Begley Building Reauthorization ($40,000,000 Agency
13 Bonds)
14 015. Asset Preservation Pool - 2022-2024 Reauthorization ($8,222,000 Restricted
15 Funds)
16 016. Lease - Madison County - Student Housing
17 017. Lease - Madison County - Land
18 018. Lease - Multi-Property-Multi-Use 1
19 019. Lease - Multi-Property-Multi-Use 2
20 020. Lease - New Housing Space
21 021. Lease - Aviation
22 022. Guaranteed Energy Savings Performance Contracts
23 3. KENTUCKY STATE UNIVERSITY
24 001. Asset Preservation Pool - 2026-2028
25 Bond Funds -0- 10,000,000 2,360,000
26 002. Construct Health Sciences Center
27 Federal Funds -0- -0- 4,000,000
Page 149 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Bond Funds -0- -0- 50,000,000
2 TOTAL -0- -0- 54,000,000
3 003. Acquire Land
4 Restricted Funds -0- 1,500,000 -0-
5 Federal Funds -0- 3,500,000 -0-
6 TOTAL -0- 5,000,000 -0-
7 004. Asset Preservation Pool - 2022-2024 Reauthorization ($2,412,000 Restricted
8 Funds)
9 4. MOREHEAD STATE UNIVERSITY
10 001. Asset Preservation Pool - 2026-2028
11 Bond Funds -0- 10,000,000 5,065,000
12 002. Construct New Applied Science Building
13 Bond Funds -0- -0- 79,400,000
14 003. Construct New Residence Hall #3
15 Bond Funds -0- 10,000,000 -0-
16 Agency Bonds -0- 10,000,000 -0-
17 TOTAL -0- 20,000,000 -0-
18 004. Construct New Residence Hall #2 Reauthorization ($40,350,000 Agency
19 Bonds)
20 005. Guaranteed Energy Savings Performance Contracts
21 5. MURRAY STATE UNIVERSITY
22 001. Asset Preservation Pool - 2026-2028
23 Bond Funds -0- 10,000,000 7,073,000
24 002. Construct Emergency Veterinary and Teaching Clinic
25 Agency Bonds -0- 48,500,000 -0-
26 003. Construct/Renovate Dining Facility Additional Reauthorization ($30,000,000
27 Restricted Funds)
Page 150 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds -0- 5,000,000 -0-
2 004. Construct Emergency Generator Docking Station(s) for Residence Halls
3 Restricted Funds -0- 2,000,000 -0-
4 005. Replace Wilson Hall Roof
5 Restricted Funds -0- 1,100,000 -0-
6 006. Replace Alexander Hall Addition Roof
7 Restricted Funds -0- 1,100,000 -0-
8 007. Replace Racer Arena Roof
9 Restricted Funds -0- 1,100,000 -0-
10 008. Replace College Courts Apartments Reauthorization ($15,000,000 Agency
11 Bonds)
12 009. Athletic Facilities Improvements Pool Reauthorization ($20,000,000
13 Restricted Funds, $20,000,000 Agency Bonds)
14 010. Asset Preservation Pool - Residence Halls Reauthorization ($6,000,000
15 Agency Bonds)
16 011. Acquire Agriculture Research Farm Land Reauthorization ($1,254,000
17 Restricted Funds)
18 012. Renovate Residence Hall Interior Reauthorization ($1,674,000 Agency
19 Bonds)
20 013. Renovate Residence Hall Electrical System Reauthorization ($4,369,000
21 Agency Bonds)
22 014. Acquire Property Reauthorization ($4,180,000 Restricted Funds)
23 015. Replace Residence Hall Domestic Water Piping Reauthorization ($1,195,000
24 Agency Bonds)
25 016. Renovate Residence Hall HVAC System Reauthorization ($1,661,000
26 Agency Bonds)
27 017. Guaranteed Energy Savings Performance Contracts
Page 151 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 6. NORTHERN KENTUCKY UNIVERSITY
2 001. Asset Preservation Pool - 2026-2028
3 Bond Funds -0- 10,000,000 6,951,000
4 002. US 27 Mixed Use Development
5 Other Funds -0- 200,000,000 -0-
6 (1) Authorization: The above authorization is approved pursuant to KRS
7 45A.077.
8 003. Renovate Business Academic Center
9 Agency Bonds -0- 150,000,000 -0-
10 Other Funds -0- 5,000,000 -0-
11 TOTAL -0- 155,000,000 -0-
12 004. Construct Sports Complex
13 Other Funds -0- 98,500,000 -0-
14 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
15 005. Expand Multi-Purpose Events Center
16 Other Funds -0- 32,000,000 -0-
17 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
18 006. Enhance Online Programs Additional
19 Restricted Funds -0- 9,500,000 -0-
20 007. Upgrade IT Infrastructure Pool - 2026-2028
21 Restricted Funds -0- 2,950,000 -0-
22 008. Replace Recreation Field Turf
23 Restricted Funds -0- 2,000,000 -0-
24 009. Acquire Land/Master Plan 2010-2012 Reauthorization ($17,500,000 Agency
25 Bonds, $4,000,000 Restricted Funds, $4,000,000 Other Funds)
26 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
27 010. Expand/Renovate Soccer Complex Reauthorization ($16,000,000 Agency
Page 152 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Bonds, $36,000,000 Other Funds)
2 011. Renovate Residence Halls Reauthorization ($15,000,000 Agency Bonds)
3 012. Renew/Renovate Landrum Academic Center Reauthorization ($49,000,000
4 Bond Funds, $3,000,000 Other Funds)
5 013. Renew/Repair Parking Garage Pool Reauthorization ($3,000,000 Agency
6 Bonds)
7 014. Replace Event Center Technology Reauthorization ($4,500,000 Other Funds)
8 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
9 015. Asset Preservation Pool - 2022-2024 Reauthorization ($1,170,300 Restricted
10 Funds)
11 016. Guaranteed Energy Savings Performance Contracts
12 7. UNIVERSITY OF KENTUCKY
13 (1) University of Kentucky Acquisitions: Notwithstanding any statute to the
14 contrary, the University of Kentucky or one of its affiliated corporations, for the benefit
15 of the University’s multifaceted education, healthcare, research, and service mission shall
16 be permitted to assume any and all leases, debt instruments, and liabilities associated with
17 any mergers, acquisitions, or partnerships that are hereby authorized in the 2026-2028
18 Budget of the Commonwealth. Assumption of leases and debt instruments shall be
19 reported to the Capital Projects and Bond Oversight Committee.
20 (2) Public-Private Partnerships: Notwithstanding Part II, (8) of this Act, and
21 KRS 45A.077(8), the utilization of the public-private partnership delivery method for
22 projects of at least $25,000,000 does not need to be explicitly authorized by the General
23 Assembly. Pursuant to KRS 45.763(3), all capital projects utilizing the public-private
24 partnership delivery method must be reviewed and approved by the Capital Projects and
25 Bond Oversight Committee after negotiations are complete but prior to beginning work
26 on the project.
27 001. Asset Preservation Pool - 2026-2028
Page 153 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Bond Funds -0- 10,000,000 24,330,000
2 002. Construct/Improve Medical/Administrative Facility 3 Phase 2
3 Restricted Funds -0- 2,000,000,000 -0-
4 003. Construct/Improve Hamburg Medical Park
5 Restricted Funds -0- 300,000,000 -0-
6 Other Funds -0- 500,000,000 -0-
7 TOTAL -0- 800,000,000 -0-
8 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
9 004. Acquire/Improve Medical/Administrative Facility 2
10 Restricted Funds -0- 400,000,000 -0-
11 Other Funds -0- 400,000,000 -0-
12 TOTAL -0- 800,000,000 -0-
13 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
14 005. Construct/Improve Arts and Innovation Complex
15 Restricted Funds -0- 200,000,000 -0-
16 Agency Bonds -0- 175,000,000 -0-
17 Other Funds -0- 400,000,000 -0-
18 TOTAL -0- 775,000,000 -0-
19 (1) Authorization: The above authorization is approved pursuant to KRS 45.763
20 and 45A.077.
21 006. Construct Fan Experience Districts
22 Restricted Funds -0- 75,000,000 -0-
23 Other Funds -0- 625,000,000 -0-
24 TOTAL -0- 700,000,000 -0-
25 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
26 007. Construct/Improve Medical/Administrative Facility 8
27 Restricted Funds -0- 200,000,000 -0-
Page 154 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Other Funds -0- 400,000,000 -0-
2 TOTAL -0- 600,000,000 -0-
3 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
4 008. Construct/Improve Medical/Administrative Facility 7
5 Restricted Funds -0- 300,000,000 -0-
6 Other Funds -0- 300,000,000 -0-
7 TOTAL -0- 600,000,000 -0-
8 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
9 009. Construct Multi-Use Complex 1
10 Restricted Funds -0- 50,000,000 -0-
11 Agency Bonds -0- 50,000,000 -0-
12 Other Funds -0- 500,000,000 -0-
13 TOTAL -0- 600,000,000 -0-
14 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
15 010. Construct/Improve Medical/Administrative Facility 6
16 Other Funds -0- 500,000,000 -0-
17 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
18 011. Construct/Improve Medical/Administrative Facility 5
19 Restricted Funds -0- 500,000,000 -0-
20 012. Construct/Improve Medical/Administrative Facility 4
21 Restricted Funds -0- 500,000,000 -0-
22 013. Acquire/Partnership Medical System 2
23 Restricted Funds -0- 500,000,000 -0-
24 014. Acquire/Improve Medical/Administrative Facility 4
25 Restricted Funds -0- 500,000,000 -0-
26 015. Improve Central Plants/Utilities Infrastructure - Phase 2
27 Restricted Funds -0- 100,000,000 -0-
Page 155 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Other Funds -0- 400,000,000 -0-
2 TOTAL -0- 500,000,000 -0-
3 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
4 016. Construct/Improve Student Housing
5 Restricted Funds -0- 75,000,000 -0-
6 Other Funds -0- 400,000,000 -0-
7 TOTAL -0- 475,000,000 -0-
8 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
9 017. Construct/Improve Utilities Infrastructure Hamburg
10 Restricted Funds -0- 200,000,000 -0-
11 Other Funds -0- 200,000,000 -0-
12 TOTAL -0- 400,000,000 -0-
13 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
14 018. Construct/Improve Utilities Infrastructure UK HealthCare
15 Restricted Funds -0- 200,000,000 -0-
16 Other Funds -0- 200,000,000 -0-
17 TOTAL -0- 400,000,000 -0-
18 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
19 019. Construct/Improve Medical/Administrative Facility 2
20 Restricted Funds -0- 200,000,000 -0-
21 Other Funds -0- 200,000,000 -0-
22 TOTAL -0- 400,000,000 -0-
23 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
24 020. Improve UK HealthCare IT Systems II
25 Restricted Funds -0- 400,000,000 -0-
26 021. Construct Research Facility
27 Restricted Funds -0- 50,000,000 -0-
Page 156 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Federal Funds -0- 65,000,000 -0-
2 Bond Funds -0- 200,000,000 -0-
3 Agency Bonds -0- 50,000,000 -0-
4 TOTAL -0- 365,000,000 -0-
5 022. Acquire/Partnership Medical System 1
6 Restricted Funds -0- 350,000,000 -0-
7 023. Construct/Improve Medical/Administrative Facility 10
8 Restricted Funds -0- 150,000,000 -0-
9 Other Funds -0- 150,000,000 -0-
10 TOTAL -0- 300,000,000 -0-
11 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
12 024. Acquire/Improve Medical/Administrative Facility 1
13 Restricted Funds -0- 300,000,000 -0-
14 025. Improve Campus Parking and Transportation System
15 Restricted Funds -0- 50,000,000 -0-
16 Other Funds -0- 250,000,000 -0-
17 TOTAL -0- 300,000,000 -0-
18 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
19 026. Construct/Improve Dining Facilities
20 Restricted Funds -0- 150,000,000 -0-
21 Other Funds -0- 150,000,000 -0-
22 TOTAL -0- 300,000,000 -0-
23 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
24 027. Improve UK HealthCare Facilities - UK Chandler Hospital
25 Restricted Funds -0- 250,000,000 -0-
26 028. Construct/Improve Parking Facility 1
27 Restricted Funds -0- 125,000,000 -0-
Page 157 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Other Funds -0- 125,000,000 -0-
2 TOTAL -0- 250,000,000 -0-
3 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
4 029. Construct/Improve Academic/Research Facility 2
5 Restricted Funds -0- 250,000,000 -0-
6 030. Construct/Improve Academic/Research Facility 1
7 Restricted Funds -0- 250,000,000 -0-
8 031. Construct/Improve Research/Data Center
9 Other Funds -0- 200,000,000 -0-
10 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
11 032. Expand UK HealthCare IT Systems
12 Restricted Funds -0- 200,000,000 -0-
13 033. Improve Utilities Infrastructure UK St. Claire
14 Restricted Funds -0- 100,000,000 -0-
15 Other Funds -0- 100,000,000 -0-
16 TOTAL -0- 200,000,000 -0-
17 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
18 034. Improve Parking/Transportation Systems UK St. Claire
19 Restricted Funds -0- 100,000,000 -0-
20 Other Funds -0- 100,000,000 -0-
21 TOTAL -0- 200,000,000 -0-
22 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
23 035. Construct/Improve Medical/Administrative Facility 9
24 Restricted Funds -0- 100,000,000 -0-
25 Other Funds -0- 100,000,000 -0-
26 TOTAL -0- 200,000,000 -0-
27 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
Page 158 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 036. Construct/Improve Parking/Transportation System Hamburg
2 Other Funds -0- 200,000,000 -0-
3 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
4 037. Improve Utilities Infrastructure UK King's Daughters
5 Restricted Funds -0- 100,000,000 -0-
6 Other Funds -0- 100,000,000 -0-
7 TOTAL -0- 200,000,000 -0-
8 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
9 038. Improve UK King's Daughters Medical Campus
10 Restricted Funds -0- 200,000,000 -0-
11 039. Improve Parking/Transportation Systems UK HealthCare
12 Other Funds -0- 200,000,000 -0-
13 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
14 040. Implement Land Use Plan 1
15 Restricted Funds -0- 200,000,000 -0-
16 041. Construct Recreation/Wellness Center
17 Restricted Funds -0- 100,000,000 -0-
18 Other Funds -0- 100,000,000 -0-
19 TOTAL -0- 200,000,000 -0-
20 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
21 042. Construct/Improve Club Area - Kroger Field
22 Restricted Funds -0- 100,000,000 -0-
23 Other Funds -0- 100,000,000 -0-
24 TOTAL -0- 200,000,000 -0-
25 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
26 043. Construct Digital Village Building 3
27 Restricted Funds -0- 95,000,000 -0-
Page 159 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Other Funds -0- 95,000,000 -0-
2 TOTAL -0- 190,000,000 -0-
3 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
4 044. Construct/Improve Academic/Administrative Facility 1
5 Restricted Funds -0- 150,000,000 -0-
6 Agency Bonds -0- 35,000,000 -0-
7 TOTAL -0- 185,000,000 -0-
8 045. Facilities Renewal and Modernization
9 Restricted Funds -0- 125,000,000 -0-
10 Agency Bonds -0- 40,000,000 -0-
11 TOTAL -0- 165,000,000 -0-
12 046. Construct/Improve UK St. Claire Main Campus
13 Restricted Funds -0- 150,000,000 -0-
14 047. Acquire/Improve Medical/Administrative Facility 5
15 Restricted Funds -0- 150,000,000 -0-
16 048. Construct Cancer/Ambulatory Facility Phase 3
17 Restricted Funds -0- 150,000,000 -0-
18 049. Implement Land Use Plan 2
19 Restricted Funds -0- 150,000,000 -0-
20 050. Acquire E&G Enterprise 2
21 Restricted Funds -0- 150,000,000 -0-
22 051. Acquire E&G Enterprise 1
23 Restricted Funds -0- 150,000,000 -0-
24 052. Construct Hotel/Conference Center
25 Other Funds -0- 150,000,000 -0-
26 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
27 053. Construct/Improve Wildcat Coal Lodge
Page 160 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds -0- 75,000,000 -0-
2 Other Funds -0- 75,000,000 -0-
3 TOTAL -0- 150,000,000 -0-
4 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
5 054. Construct/Improve Academic/Administrative Facility 2
6 Restricted Funds -0- 150,000,000 -0-
7 055. Construct West End Zone Club Space Additional Reauthorization
8 ($50,000,000 Other Funds)
9 Restricted Funds -0- 100,000,000 -0-
10 Other Funds -0- 50,000,000 -0-
11 TOTAL -0- 150,000,000 -0-
12 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
13 056. Improve Advanced Science and Technology Commercialization Center
14 Restricted Funds -0- 130,000,000 -0-
15 057. Construct/Improve Academic/Research Facility 4
16 Restricted Funds -0- 130,000,000 -0-
17 058. Improve Singletary Center
18 Restricted Funds -0- 130,000,000 -0-
19 059. Construct/Improve Dental Sciences Building
20 Restricted Funds -0- 130,000,000 -0-
21 060. Construct/Improve Academic/Research Facility 3
22 Restricted Funds -0- 125,000,000 -0-
23 061. Construct/Improve Parking Facility 2
24 Other Funds -0- 125,000,000 -0-
25 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
26 062. Improve Coldstream Research Campus
27 Restricted Funds -0- 60,000,000 -0-
Page 161 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Other Funds -0- 60,000,000 -0-
2 TOTAL -0- 120,000,000 -0-
3 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
4 063. Construct Agriculture Federal Research Facility I
5 Federal Funds -0- 108,000,000 -0-
6 064. Improve State Street Medical Facilities
7 Restricted Funds -0- 100,000,000 -0-
8 065. Improve Site/Civil Infrastructure UK King's Daughters
9 Restricted Funds -0- 100,000,000 -0-
10 066. Improve Building Systems UK King's Daughters
11 Restricted Funds -0- 100,000,000 -0-
12 067. Construct/Improve Building Systems Hamburg
13 Restricted Funds -0- 100,000,000 -0-
14 068. Acquire/Improve Service Core Systems UK King's Daughters
15 Restricted Funds -0- 100,000,000 -0-
16 069. Improve Parking/Transportation Systems UK King's Daughters
17 Restricted Funds -0- 100,000,000 -0-
18 070. Improve Clinical/Ambulatory Services Facilities
19 Restricted Funds -0- 100,000,000 -0-
20 071. Construct/Improve Recreation Services Space 1
21 Restricted Funds -0- 50,000,000 -0-
22 Other Funds -0- 50,000,000 -0-
23 TOTAL -0- 100,000,000 -0-
24 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
25 072. Construct/Improve Research Space
26 Restricted Funds -0- 100,000,000 -0-
27 073. Construct/Improve Athletics Facility 1
Page 162 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds -0- 50,000,000 -0-
2 Other Funds -0- 50,000,000 -0-
3 TOTAL -0- 100,000,000 -0-
4 074. Improve Student Center Space 2
5 Restricted Funds -0- 50,000,000 -0-
6 Other Funds -0- 50,000,000 -0-
7 TOTAL -0- 100,000,000 -0-
8 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
9 075. Construct/Improve Academic/Administrative Facility 3
10 Restricted Funds -0- 100,000,000 -0-
11 076. Construct Equine/Horticulture Campus
12 Restricted Funds -0- 90,000,000 -0-
13 077. Improve Gatton Business and Economics Building
14 Restricted Funds -0- 45,000,000 -0-
15 Agency Bonds -0- 45,000,000 -0-
16 TOTAL -0- 90,000,000 -0-
17 078. Improve Oswald Building
18 Restricted Funds -0- 88,500,000 -0-
19 079. Improve Chemistry/Physics Building
20 Restricted Funds -0- 88,000,000 -0-
21 080. Improve 4-H Camps
22 Restricted Funds -0- 80,000,000 -0-
23 081. Improve Fine Arts Building
24 Restricted Funds -0- 80,000,000 -0-
25 082. Improve King Library
26 Restricted Funds -0- 80,000,000 -0-
27 083. Improve Patterson Hall
Page 163 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds -0- 80,000,000 -0-
2 084. Improve Kastle Hall
3 Restricted Funds -0- 80,000,000 -0-
4 085. Improve Taylor Education Building
5 Restricted Funds -0- 80,000,000 -0-
6 086. Acquire Furnishings/Equipment UK HealthCare
7 Restricted Funds -0- 75,000,000 -0-
8 087. Construct/Improve Site/Civil Infrastructure Hamburg
9 Restricted Funds -0- 75,000,000 -0-
10 088. Construct/Improve Service Core Systems Hamburg
11 Restricted Funds -0- 75,000,000 -0-
12 089. Acquire/Improve Service Core Systems UK HealthCare
13 Restricted Funds -0- 75,000,000 -0-
14 090. Improve Markey Cancer Center Facilities
15 Restricted Funds -0- 75,000,000 -0-
16 091. Improve Building Systems UK HealthCare
17 Restricted Funds -0- 75,000,000 -0-
18 092. Construct Agriculture Research Facility 2
19 Restricted Funds -0- 75,000,000 -0-
20 093. Acquire Equipment/Furnishings Pool - Campus
21 Restricted Funds -0- 75,000,000 -0-
22 094. Construct Agriculture Research Facility 3
23 Restricted Funds -0- 75,000,000 -0-
24 095. Improve Center for Applied Energy Research Facilities
25 Restricted Funds -0- 75,000,000 -0-
26 096. Construct/Improve Academic/Administrative Facility 4
27 Restricted Funds -0- 75,000,000 -0-
Page 164 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 097. Upgrade/Renovate/Expand Research Labs
2 Restricted Funds -0- 75,000,000 -0-
3 098. Improve Funkhouser Building
4 Restricted Funds -0- 75,000,000 -0-
5 099. Construct/Improve Alumni Center
6 Restricted Funds -0- 75,000,000 -0-
7 100. Construct/Improve Greek Housing
8 Restricted Funds -0- 36,000,000 -0-
9 Other Funds -0- 36,000,000 -0-
10 TOTAL -0- 72,000,000 -0-
11 101. Improve Willard Medical Education/Science Building
12 Restricted Funds -0- 70,000,000 -0-
13 102. Improve Lexington Theological Seminary Facilities
14 Restricted Funds -0- 70,000,000 -0-
15 103. Construct/Improve CAFE Farm 2
16 Restricted Funds -0- 60,000,000 -0-
17 104. Construct/Improve Childcare Development Facility
18 Restricted Funds -0- 55,000,000 -0-
19 105. Construct/Improve Administrative/Support Building
20 Restricted Funds -0- 55,000,000 -0-
21 106. Construct Tennis Facility
22 Restricted Funds -0- 27,000,000 -0-
23 Other Funds -0- 27,000,000 -0-
24 TOTAL -0- 54,000,000 -0-
25 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
26 107. Improve Campus Core Quadrangle Facilities
27 Restricted Funds -0- 54,000,000 -0-
Page 165 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 108. Acquire Land
2 Restricted Funds -0- 50,000,000 -0-
3 109. Acquire/Improve Clinical Facility/Practice 6
4 Restricted Funds -0- 50,000,000 -0-
5 110. Acquire/Improve Medical/Administrative Facility 7
6 Restricted Funds -0- 50,000,000 -0-
7 111. Acquire/Improve Medical/Administrative Facility 6
8 Restricted Funds -0- 50,000,000 -0-
9 112. Improve Medical Pavilion UK St. Claire
10 Restricted Funds -0- 50,000,000 -0-
11 113. Improve IT/Enterprise Systems 1
12 Restricted Funds -0- 50,000,000 -0-
13 114. Improve Business Services Center UK St. Claire
14 Restricted Funds -0- 50,000,000 -0-
15 115. Acquire/Improve Service Core Systems UK St. Claire
16 Restricted Funds -0- 50,000,000 -0-
17 116. Improve Building Systems UK St. Claire
18 Restricted Funds -0- 50,000,000 -0-
19 117. Improve Site/Civil Infrastructure UK HealthCare
20 Restricted Funds -0- 50,000,000 -0-
21 118. Improve UK Good Samaritan Hospital Facilities
22 Restricted Funds -0- 50,000,000 -0-
23 119. Construct/Improve Ambulatory Care
24 Restricted Funds -0- 50,000,000 -0-
25 120. Construct/Improve Patient Support Facility
26 Restricted Funds -0- 50,000,000 -0-
27 121. Construct Agriculture Research Facility - Phase 2
Page 166 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds -0- 50,000,000 -0-
2 122. Improve Research Data Infrastructure
3 Restricted Funds -0- 50,000,000 -0-
4 123. Construct/Improve Academic/Administrative Facility 5
5 Restricted Funds -0- 50,000,000 -0-
6 124. Improve Student Services Space
7 Restricted Funds -0- 50,000,000 -0-
8 125. Improve Health Sciences Research Building
9 Restricted Funds -0- 50,000,000 -0-
10 126. Improve Angliana Facilities
11 Restricted Funds -0- 50,000,000 -0-
12 127. Improve Kroger Field 4
13 Restricted Funds -0- 25,000,000 -0-
14 Other Funds -0- 25,000,000 -0-
15 TOTAL -0- 50,000,000 -0-
16 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
17 128. Purchase/Construct CO2 Capture Process Plant
18 Restricted Funds -0- 1,500,000 -0-
19 Federal Funds -0- 40,000,000 -0-
20 Other Funds -0- 8,500,000 -0-
21 TOTAL -0- 50,000,000 -0-
22 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
23 129. Improve Seaton Center
24 Restricted Funds -0- 50,000,000 -0-
25 130. Decommission Facilities
26 Restricted Funds -0- 50,000,000 -0-
27 131. Improve Kroger Field 3
Page 167 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds -0- 25,000,000 -0-
2 Other Funds -0- 25,000,000 -0-
3 TOTAL -0- 50,000,000 -0-
4 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
5 132. Improve Site/Civil Infrastructure
6 Restricted Funds -0- 50,000,000 -0-
7 133. Improve Arboretum Complex
8 Restricted Funds -0- 50,000,000 -0-
9 134. Construct/Relocate/Replace Greenhouses
10 Restricted Funds -0- 50,000,000 -0-
11 135. Improve Jacobs Science Building
12 Restricted Funds -0- 48,000,000 -0-
13 136. Improve McVey Hall
14 Restricted Funds -0- 48,000,000 -0-
15 137. Improve Gray Design Building
16 Restricted Funds -0- 45,000,000 -0-
17 138. Improve Memorial Hall
18 Restricted Funds -0- 45,000,000 -0-
19 139. Research Equipment Pool
20 Restricted Funds -0- 30,000,000 -0-
21 Federal Funds -0- 15,000,000 -0-
22 TOTAL -0- 45,000,000 -0-
23 140. Construct/Improve Library Depository Facility
24 Restricted Funds -0- 45,000,000 -0-
25 141. Lease/Purchase Enterprise Resource Planning System
26 Restricted Funds -0- 40,000,000 -0-
27 142. Construct/Improve Recreation Services Space 2
Page 168 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds -0- 20,000,000 -0-
2 Other Funds -0- 20,000,000 -0-
3 TOTAL -0- 40,000,000 -0-
4 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
5 143. Construct/Improve Student Success/Academic Facility 1
6 Restricted Funds -0- 40,000,000 -0-
7 144. Improve Building Shell Systems
8 Restricted Funds -0- 40,000,000 -0-
9 145. Construct Teaching Pavilion
10 Restricted Funds -0- 38,000,000 -0-
11 146. Improve Academic Technical Building
12 Restricted Funds -0- 35,000,000 -0-
13 147. Improve Whalen Building and Bay Facility (Kentucky Advanced
14 Manufacturing)
15 Restricted Funds -0- 35,000,000 -0-
16 148. Construct/Improve Recreation Quad
17 Restricted Funds -0- 35,000,000 -0-
18 149. Construct Support Services Building
19 Restricted Funds -0- 35,000,000 -0-
20 150. Improve Moloney Building
21 Restricted Funds -0- 35,000,000 -0-
22 151. Improve Building Mechanical Systems
23 Restricted Funds -0- 35,000,000 -0-
24 152. Expand Kentucky Geological Survey Well Sample and Core Repository
25 Restricted Funds -0- 35,000,000 -0-
26 153. Lease/Purchase Medical Facility/Practice 6
27 Restricted Funds -0- 30,000,000 -0-
Page 169 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 154. Lease/Purchase Medical Facility/Practice 5
2 Restricted Funds -0- 30,000,000 -0-
3 155. Lease/Purchase Medical Facility/Practice 4
4 Restricted Funds -0- 30,000,000 -0-
5 156. Lease/Purchase Medical Facility/Practice 3
6 Restricted Funds -0- 30,000,000 -0-
7 157. Lease/Purchase Medical Facility/Practice 2
8 Restricted Funds -0- 30,000,000 -0-
9 158. Lease/Purchase Medical Facility/Practice 1
10 Restricted Funds -0- 30,000,000 -0-
11 159. Improve Medical Facility 9
12 Restricted Funds -0- 30,000,000 -0-
13 160. Improve Medical Facility 6
14 Restricted Funds -0- 30,000,000 -0-
15 161. Improve Medical Facility 5
16 Restricted Funds -0- 30,000,000 -0-
17 162. Improve Medical Facility 4
18 Restricted Funds -0- 30,000,000 -0-
19 163. Improve Medical Facility 8
20 Restricted Funds -0- 30,000,000 -0-
21 164. Improve Medical Facility 18
22 Restricted Funds -0- 30,000,000 -0-
23 165. Improve Medical Facility 17
24 Restricted Funds -0- 30,000,000 -0-
25 166. Improve Medical Facility 16
26 Restricted Funds -0- 30,000,000 -0-
27 167. Improve Medical Facility 15
Page 170 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds -0- 30,000,000 -0-
2 168. Improve Medical Facility 14
3 Restricted Funds -0- 30,000,000 -0-
4 169. Improve Medical Facility 13
5 Restricted Funds -0- 30,000,000 -0-
6 170. Improve Medical Facility 12
7 Restricted Funds -0- 30,000,000 -0-
8 171. Improve Medical Facility 11
9 Restricted Funds -0- 30,000,000 -0-
10 172. Improve Medical Facility 10
11 Restricted Funds -0- 30,000,000 -0-
12 173. Improve Medical Facility 7
13 Restricted Funds -0- 30,000,000 -0-
14 174. Improve Stuckert Career Center
15 Restricted Funds -0- 30,000,000 -0-
16 175. Construct/Improve CAFE Farm 1
17 Restricted Funds -0- 30,000,000 -0-
18 176. Improve Enterprise Networking 1
19 Restricted Funds -0- 30,000,000 -0-
20 177. Improve Electrical Infrastructure
21 Restricted Funds -0- 28,000,000 -0-
22 178. Improve Library Facility
23 Restricted Funds -0- 27,000,000 -0-
24 179. Improve Mechanical Infrastructure
25 Restricted Funds -0- 26,000,000 -0-
26 180. Improve IT/Enterprise Systems 3
27 Restricted Funds -0- 25,000,000 -0-
Page 171 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 181. Improve IT/Enterprise Systems 2
2 Restricted Funds -0- 25,000,000 -0-
3 182. Acquire/Improve Clinical Facility/Practice 5
4 Restricted Funds -0- 25,000,000 -0-
5 183. Acquire/Improve Clinical Facility/Practice 4
6 Restricted Funds -0- 25,000,000 -0-
7 184. Acquire/Improve Clinical Facility/Practice 3
8 Restricted Funds -0- 25,000,000 -0-
9 185. Acquire/Improve Clinical Facility/Practice 2
10 Restricted Funds -0- 25,000,000 -0-
11 186. Acquire/Improve Clinical Facility/Practice 1
12 Restricted Funds -0- 25,000,000 -0-
13 187. Implement Patient Communication System
14 Restricted Funds -0- 25,000,000 -0-
15 188. Construct/Improve Wellness Trial
16 Restricted Funds -0- 25,000,000 -0-
17 189. Construct Meats/Food Development Center Phase 2
18 Restricted Funds -0- 25,000,000 -0-
19 190. Construct/Improve Transformative Learning Center
20 Restricted Funds -0- 25,000,000 -0-
21 191. Improve Peterson Service Building
22 Restricted Funds -0- 25,000,000 -0-
23 192. Improve Barnhart Building
24 Restricted Funds -0- 25,000,000 -0-
25 193. Improve Enterprise Networking 2
26 Restricted Funds -0- 25,000,000 -0-
27 194. Lease/Purchase Enterprise IT Systems
Page 172 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds -0- 25,000,000 -0-
2 195. Improve Student Center Space 3
3 Restricted Funds -0- 25,000,000 -0-
4 196. Improve W.T. Young Facility
5 Restricted Funds -0- 25,000,000 -0-
6 197. Improve Critical Infrastructure Building Systems
7 Restricted Funds -0- 25,000,000 -0-
8 198. Improve Life Safety
9 Restricted Funds -0- 25,000,000 -0-
10 199. Improve Campus Security and Safety Systems
11 Restricted Funds -0- 20,000,000 -0-
12 200. Improve Health Park UK King's Daughters
13 Restricted Funds -0- 20,000,000 -0-
14 201. Improve Site/Civil Infrastructure UK St. Claire
15 Restricted Funds -0- 20,000,000 -0-
16 202. Improve Medical Pavilion UK King's Daughters
17 Restricted Funds -0- 20,000,000 -0-
18 203. Construct UK HealthCare Medical Transport Facility
19 Restricted Funds -0- 20,000,000 -0-
20 204. Improve Campus Security and Safety
21 Restricted Funds -0- 20,000,000 -0-
22 205. Acquire/Improve Data/Infrastructure Systems
23 Restricted Funds -0- 20,000,000 -0-
24 206. Construct/Improve Recreation/Services Space 3
25 Restricted Funds -0- 10,000,000 -0-
26 Other Funds -0- 10,000,000 -0-
27 TOTAL -0- 20,000,000 -0-
Page 173 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
2 207. Construct/Improve Academic/Administrative Facility 2 Design
3 Restricted Funds -0- 20,000,000 -0-
4 208. Construct/Improve Academic/Administrative Facility 1 Design
5 Restricted Funds -0- 20,000,000 -0-
6 209. Lease/Purchase Campus IT System
7 Restricted Funds -0- 20,000,000 -0-
8 210. Construct/Improve Machine Lab
9 Restricted Funds -0- 20,000,000 -0-
10 211. Improve White Hall Classroom Building
11 Restricted Funds -0- 20,000,000 -0-
12 212. Improve Athletics Facility 2
13 Restricted Funds -0- 20,000,000 -0-
14 213. Acquire/Improve IT Systems/Infrastructure
15 Restricted Funds -0- 20,000,000 -0-
16 214. Improve Academic Facility
17 Restricted Funds -0- 20,000,000 -0-
18 215. Lease/Purchase Enterprise Network Security
19 Restricted Funds -0- 20,000,000 -0-
20 216. Construct Police Facilities
21 Restricted Funds -0- 20,000,000 -0-
22 217. Acquire/Improve Service Core Systems
23 Restricted Funds -0- 20,000,000 -0-
24 218. Improve Hilary J. Boone Center
25 Restricted Funds -0- 18,000,000 -0-
26 219. Improve Lancaster Aquatic Center 1
27 Restricted Funds -0- 17,000,000 -0-
Page 174 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 220. Improve Medical Center Library
2 Restricted Funds -0- 17,000,000 -0-
3 221. Construct/Improve Student Success/Academic Facility 2
4 Restricted Funds -0- 15,000,000 -0-
5 222. Construct/Improve UK HealthCare Hamburg Facilities
6 Restricted Funds -0- 15,000,000 -0-
7 223. Acquire Data Center and Networking Hardware UK HealthCare
8 Restricted Funds -0- 15,000,000 -0-
9 224. Construct/Improve Academic/Administrative Facility 3 Design
10 Restricted Funds -0- 15,000,000 -0-
11 225. Improve Boone Tennis Center
12 Restricted Funds -0- 15,000,000 -0-
13 226. Construct/Improve Athletics Facility 2
14 Restricted Funds -0- 15,000,000 -0-
15 227. Acquire Equipment/Furnishings Pool
16 Restricted Funds -0- 15,000,000 -0-
17 228. Improve Spindletop Hall Facilities
18 Restricted Funds -0- 15,000,000 -0-
19 229. Construct/Fit-up Retail Space
20 Restricted Funds -0- 10,000,000 -0-
21 Other Funds -0- 5,000,000 -0-
22 TOTAL -0- 15,000,000 -0-
23 230. Improve Athletics Facility 3
24 Restricted Funds -0- 15,000,000 -0-
25 231. Improve Multi-Disciplinary Science Building
26 Restricted Funds -0- 15,000,000 -0-
27 232. Lease/Purchase High Performance Computer
Page 175 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds -0- 15,000,000 -0-
2 233. Improve CAFE Motor Pool Building
3 Restricted Funds -0- 14,000,000 -0-
4 234. Construct Agriculture Federal Research Facility II
5 Federal Funds -0- 14,000,000 -0-
6 235. Construct Metal Arts/Digital Media Building
7 Restricted Funds -0- 14,000,000 -0-
8 236. Improve Baseball Facility Phase II
9 Restricted Funds -0- 14,000,000 -0-
10 237. Improve Patterson Office Tower
11 Restricted Funds -0- 12,000,000 -0-
12 238. Improve University Storage Facility 1
13 Restricted Funds -0- 12,000,000 -0-
14 239. Acquire/Improve Clinical/Research Facility
15 Restricted Funds -0- 11,000,000 -0-
16 240. Acquire Telemedicine/Virtual Intensive Care Unit
17 Restricted Funds -0- 10,000,000 -0-
18 241. Renovate/Improve Nursing Units UK HealthCare
19 Restricted Funds -0- 10,000,000 -0-
20 242. Construct/Improve Academic/Administrative Facility 4 Design
21 Restricted Funds -0- 10,000,000 -0-
22 243. Improve Parking Structure 2 Enterprise Data Center
23 Restricted Funds -0- 10,000,000 -0-
24 244. Improve University Storage Facility 2
25 Restricted Funds -0- 10,000,000 -0-
26 245. Improve Soccer/Softball Facility
27 Restricted Funds -0- 10,000,000 -0-
Page 176 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 246. Improve Campus Infrastructure
2 Restricted Funds -0- 10,000,000 -0-
3 247. Improve Fume Hood Systems
4 Restricted Funds -0- 10,000,000 -0-
5 248. Improve Scovell Hall
6 Restricted Funds -0- 10,000,000 -0-
7 249. Improve Lancaster Aquatic Center 2
8 Restricted Funds -0- 10,000,000 -0-
9 250. Lease/Purchase Enterprise Infrastructure
10 Restricted Funds -0- 10,000,000 -0-
11 251. Improve Enterprise Cable Infrastructure
12 Restricted Funds -0- 10,000,000 -0-
13 252. Improve Senior Center
14 Restricted Funds -0- 10,000,000 -0-
15 253. Construct/Improve Gymnastics Practice Facility
16 Restricted Funds -0- 10,000,000 -0-
17 254. Improve Memorial Coliseum
18 Restricted Funds -0- 10,000,000 -0-
19 255. Improve Athletics Facility 4
20 Restricted Funds -0- 10,000,000 -0-
21 256. Improve Pence Hall
22 Restricted Funds -0- 10,000,000 -0-
23 257. Improve Division of Laboratory Animal Resources Facilities
24 Restricted Funds -0- 10,000,000 -0-
25 258. Improve Building Electrical Systems
26 Restricted Funds -0- 10,000,000 -0-
27 259. ADA Compliance Pool
Page 177 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds -0- 10,000,000 -0-
2 260. Improve Kroger Field 1 Additional Reauthorization ($15,000,000 Other
3 Funds)
4 Restricted Funds -0- 10,000,000 -0-
5 261. Improve Anderson Tower
6 Restricted Funds -0- 9,000,000 -0-
7 262. Improve Mineral Industries Building
8 Restricted Funds -0- 9,000,000 -0-
9 263. Improve Carnahan House
10 Restricted Funds -0- 8,000,000 -0-
11 264. Acquire/Improve Golf Facility
12 Restricted Funds -0- 8,000,000 -0-
13 265. Construct/Improve Academic/Administrative Facility 5 Design
14 Restricted Funds -0- 7,500,000 -0-
15 266. Improve Medical Plaza
16 Restricted Funds -0- 7,000,000 -0-
17 267. Improve Nutter Training Facility
18 Restricted Funds -0- 7,000,000 -0-
19 268. Lease/Purchase Enterprise Voice Infrastructure
20 Restricted Funds -0- 7,000,000 -0-
21 269. Renovate Space for a Testing Center
22 Restricted Funds -0- 7,000,000 -0-
23 270. Improve Nursing Building
24 Restricted Funds -0- 7,000,000 -0-
25 271. Lease/Purchase Enterprise Call Center System
26 Restricted Funds -0- 7,000,000 -0-
27 272. Improve Medical Behavioral Science Building
Page 178 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds -0- 6,000,000 -0-
2 273. Improve Athletics Facility 6
3 Restricted Funds -0- 6,000,000 -0-
4 274. Improve Athletics Facility 5
5 Restricted Funds -0- 6,000,000 -0-
6 275. Improve Joe Craft Center
7 Restricted Funds -0- 6,000,000 -0-
8 276. Improve Joe Craft Football Practice Facility
9 Restricted Funds -0- 3,000,000 -0-
10 Other Funds -0- 3,000,000 -0-
11 TOTAL -0- 6,000,000 -0-
12 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
13 277. Improve Cooper House
14 Restricted Funds -0- 6,000,000 -0-
15 278. Acquire Data Center and Networking Hardware UK St. Claire
16 Restricted Funds -0- 5,000,000 -0-
17 279. Acquire Data Center and Networking Hardware UK King’s Daughters
18 Restricted Funds -0- 5,000,000 -0-
19 280. Construct/Improve Recreational Playing Surfaces
20 Restricted Funds -0- 5,000,000 -0-
21 281. Construct Athletics Hall of Fame
22 Restricted Funds -0- 5,000,000 -0-
23 282. Improve Sturgill Development Building
24 Restricted Funds -0- 4,000,000 -0-
25 283. Replace Basketball Playing Floors
26 Restricted Funds -0- 3,000,000 -0-
27 284. Improve Athletics Facility 7
Page 179 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds -0- 3,000,000 -0-
2 285. Acquire Transportation Buses
3 Restricted Funds -0- 3,000,000 -0-
4 286. Improve Indoor/Outdoor Track
5 Restricted Funds -0- 3,000,000 -0-
6 287. Construct Cross Country Trail
7 Restricted Funds -0- 3,000,000 -0-
8 288. Construct/Improve Athletics Surfaces 2
9 Restricted Funds -0- 3,000,000 -0-
10 289. Construct/Improve Athletics Surfaces 1
11 Restricted Funds -0- 3,000,000 -0-
12 290. Construct/Improve Medical/Administrative Facility 3 Reauthorization
13 ($800,000,000 Agency Bonds)
14 291. Asset Preservation Pool - 2024-2026 Reauthorization ($30,862,000 Agency
15 Bonds)
16 292. Construct Academic Building Reauthorization ($149,000,000 Restricted
17 Funds)
18 293. Construct/Improve Medical/Administrative Facility 1 Reauthorization
19 ($300,000,000 Restricted Funds, $500,000,000 Other Funds)
20 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
21 294. Construct Health Education Building Reauthorization ($50,000,000 Agency
22 Bonds)
23 295. Lease - Off Campus 1
24 296. Lease - Off Campus 3
25 297. Lease - Off Campus 4
26 298. Lease - Off Campus 5
27 299. Lease - Off Campus 6
Page 180 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 300. Lease - Off Campus 7 Vetoed in Part and Overridden in Part
2 301. Lease - Off Campus 11
3 302. Lease - Off Campus 12
4 303. Lease - Off Campus 13
5 304. Lease - Off Campus 14
6 305. Lease - Off Campus 15
7 306. Lease - Off Campus 16
8 307. Lease - Off Campus 17
9 308. Lease - Off Campus 18
10 309. Lease - Off Campus 19
11 310. Lease - Off Campus 20
12 311. Lease - Off Campus 21
13 312. Lease - Off Campus 22
14 313. Lease - Off Campus 23
15 314. Lease - Off Campus 24
16 315. Lease - Off Campus 25
17 316. Lease - Off Campus 26
18 317. Lease - Off Campus Housing 1
19 318. Lease - Off Campus Housing 2
20 319. Lease - Health Science Colleges 1
21 320. Lease - Health Science Colleges 2
22 321. Lease - Health Science Colleges 3
23 322. Lease - Off Campus Athletics 1
24 323. Lease - Off Campus Athletics 2
25 324. Lease - Health Affairs Office 3
26 325. Lease - Health Affairs Office 4
27 326. Lease - Health Affairs Office 10
Page 181 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 327. Lease - Health Affairs Office 12 Vetoed in Part and Overridden in Part
2 328. Lease - Health Affairs Office 14
3 329. Lease - Health Affairs Office 15
4 330. Lease - Health Affairs Office 18
5 331. Lease - Health Affairs Office 19
6 332. Lease - Health Affairs Office 20
7 333. Lease - Health Affairs Office 21
8 334. Lease - Health Affairs Office 22
9 335. Lease - Health Affairs Office 24
10 336. Lease - UK HealthCare Off Campus Facility 2
11 337. Lease - UK HealthCare Off Campus Facility 3
12 338. Lease - UK HealthCare Off Campus Facility 5
13 339. Lease - UK HealthCare Off Campus Facility 12
14 340. Lease - UK HealthCare Off Campus Facility 13
15 341. Lease - UK HealthCare Off Campus Facility 14
16 342. Lease - UK HealthCare Off Campus Facility 15
17 343. Lease - UK HealthCare Off Campus Facility 16
18 344. Lease - UK HealthCare Off Campus Facility 17
19 345. Lease - UK HealthCare Off Campus Facility 18
20 346. Lease - UK HealthCare Off Campus Facility 19
21 347. Lease - UK HealthCare Off Campus Facility 20
22 348. Lease - UK HealthCare Off Campus Facility 21
23 349. Lease - UK HealthCare Off Campus Facility 22
24 350. Lease - UK HealthCare Off Campus Facility 23
25 351. Lease - UK HealthCare Off Campus Facility 24
26 352. Lease - UK HealthCare Off Campus Facility 25
27 353. Lease - UK HealthCare Off Campus Facility 26
Page 182 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 354. Lease - UK HealthCare Off Campus Facility 27 Vetoed in Part and Overridden in Part
2 355. Lease - UK HealthCare Off Campus Facility 28
3 356. Lease - UK HealthCare Off Campus Facility 29
4 357. Lease - UK HealthCare Off Campus Facility 30
5 358. Lease - UK HealthCare Off Campus Facility 31
6 359. Lease - UK HealthCare Off Campus Facility 32
7 360. Lease - UK HealthCare Off Campus Facility 33
8 361. Lease - Off Campus 2
9 362. Lease - College of Medicine 1
10 363. Lease - College of Medicine 2
11 364. Lease - Health Affairs Office 1
12 365. Lease - Health Affairs Office 2
13 366. Lease - Health Affairs Office 5
14 367. Lease - Health Affairs Office 6
15 368. Lease - Health Affairs Office 7
16 369. Lease - Health Affairs Office 8
17 370. Lease - Health Affairs Office 9
18 371. Lease - Health Affairs Office 11
19 372. Lease - Health Affairs Office 13
20 373. Lease - Health Affairs Office 16
21 374. Lease - Health Affairs Office 17
22 375. Lease - Health Affairs Office 23
23 376. Lease - UK HealthCare Off Campus Facility 1
24 377. Lease - UK HealthCare Off Campus Facility 4
25 378. Lease - UK HealthCare Off Campus Facility 6
26 379. Lease - UK HealthCare Off Campus Facility 7
27 380. Lease - UK HealthCare Off Campus Facility 8
Page 183 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 381. Lease - UK HealthCare Off Campus Facility 9
2 382. Lease - UK HealthCare Off Campus Facility 10
3 383. Lease - UK HealthCare Off Campus Facility 11
4 384. Lease - Off Campus 8
5 385. Lease - Off Campus 9
6 386. Lease - Off Campus 10
7 387. Lease - UK HealthCare Royal Blue Health 1
8 388. Lease - UK HealthCare Royal Blue Health 2
9 389. Lease - UK HealthCare Royal Blue Health 3
10 390. Lease - UK HealthCare Royal Blue Health 4
11 391. Lease - UK HealthCare Royal Blue Health 6
12 392. Lease - UK HealthCare Royal Blue Health 7
13 393. Lease - UK HealthCare Royal Blue Health 8
14 394. Guaranteed Energy Savings Performance Contracts - UK HealthCare
15 395. Guaranteed Energy Savings Performance Contracts
16 8. UNIVERSITY OF LOUISVILLE
17 001. Asset Preservation Pool - 2026-2028
18 Bond Funds -0- 10,000,000 12,077,000
19 002. Construct Resident Hall Public-Private Partnership
20 Other Funds -0- 250,000,000 -0-
21 (1) Authorization: The above authorization is approved pursuant to KRS 45.763
22 and 45A.077.
23 003. Construct Athletics Village
24 Other Funds -0- 150,000,000 -0-
25 004. Construct STEM Building
26 Bond Funds -0- 142,000,000 -0-
27 005. Construct Medical Sciences Research Building
Page 184 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Other Funds -0- 70,000,000 -0-
2 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
3 006. Construct Center for Bioscience
4 Federal Funds -0- 70,000,000 -0-
5 007. Construct Center for Military Health/Biology
6 Federal Funds -0- 70,000,000 -0-
7 008. Construct Natatorium
8 Other Funds -0- 60,000,000 -0-
9 009. Renovate New Vision of Health Building
10 Federal Funds -0- 60,000,000 -0-
11 010. Construct Cybersecurity Center with Enhanced Internet Capabilities
12 Federal Funds -0- 10,000,000 -0-
13 Other Funds -0- 50,000,000 -0-
14 TOTAL -0- 60,000,000 -0-
15 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
16 011. Replace Building Mechanical, Electrical and Plumbing
17 Other Funds -0- 50,000,000 -0-
18 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
19 012. Structural Improvement Pool - 2026-2028
20 Other Funds -0- 40,000,000 -0-
21 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
22 013. Construct Center for AI Excellence
23 Other Funds -0- 29,000,000 -0-
24 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
25 014. Expand Basketball/Lacrosse Practice Facility
26 Other Funds -0- 25,000,000 -0-
27 015. Renovate Cardinal Football Stadium
Page 185 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Other Funds -0- 25,000,000 -0-
2 016. Construct Indoor Facility
3 Other Funds -0- 20,000,000 -0-
4 017. Expand Patterson Stadium/Construct Indoor Facility
5 Other Funds -0- 20,000,000 -0-
6 018. Construct Resident Hall and Visitor Development
7 Agency Bonds -0- 160,000,000 -0-
8 019. Purchase Land Additional Reauthorization ($10,000,000 Agency Bonds)
9 Other Funds -0- 15,000,000 -0-
10 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
11 020. Expand Ulmer Stadium/Construct Indoor Facility
12 Other Funds -0- 15,000,000 -0-
13 021. Construct Kentucky Center for Precision Medicine
14 Federal Funds -0- 12,500,000 -0-
15 022. Enhance Workday Financial Management Software
16 Other Funds -0- 10,000,000 -0-
17 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
18 023. Enhance Research Computing Infrastructure
19 Other Funds -0- 10,000,000 -0-
20 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
21 024. Enhance Content Management System
22 Other Funds -0- 10,000,000 -0-
23 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
24 025. Renovate L&N Arena
25 Other Funds -0- 10,000,000 -0-
26 026. Update, Replace Technology in Athletic Venues
27 Other Funds -0- 10,000,000 -0-
Page 186 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 027. Update Green Health Sciences Center Courtyard
2 Other Funds -0- 10,000,000 -0-
3 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
4 028. Campus Code Improvement Pool - 2026-2028
5 Other Funds -0- 10,000,000 -0-
6 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
7 029. Replace Cardinal Stadium Seats
8 Other Funds -0- 10,000,000 -0-
9 030. Renovate Cardinal Park
10 Other Funds -0- 10,000,000 -0-
11 031. Expand and Renovate Wright Natatorium
12 Other Funds -0- 10,000,000 -0-
13 032. Athletic Venue Capital Renewal Pool - 2026-2028
14 Other Funds -0- 10,000,000 -0-
15 033. Expand and Renovate Marshall Center Complex
16 Other Funds -0- 10,000,000 -0-
17 034. Replace Electronic Video Boards
18 Other Funds -0- 10,000,000 -0-
19 035. Construct Defense Supply Chain Security System
20 Federal Funds -0- 10,000,000 -0-
21 036. Construct/Renovate Kentucky Center for Precision Medicine Data and
22 Analytical Systems
23 Federal Funds -0- 9,326,000 -0-
24 037. Construct/Renovate Kentucky Center for Precision Medicine Equipment
25 Federal Funds -0- 8,000,000 -0-
26 038. Renovate Cardinal Stadium Club
27 Other Funds -0- 7,500,000 -0-
Page 187 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 039. Construct Athletics Office Building
2 Other Funds -0- 7,500,000 -0-
3 040. Replace Seats in Athletic Venues
4 Other Funds -0- 7,000,000 -0-
5 041. Purchase Network System Enhancements
6 Other Funds -0- 6,000,000 -0-
7 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
8 042. Renovate and Update Student/Athlete Dormitory
9 Other Funds -0- 6,000,000 -0-
10 043. Enhance Security and Firewall System
11 Other Funds -0- 5,000,000 -0-
12 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
13 044. Enhance Computer Processing and Storage
14 Other Funds -0- 5,000,000 -0-
15 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
16 045. Expand and Renovate Tailgate Space
17 Other Funds -0- 5,000,000 -0-
18 046. Expand and Renovate Athletic Parking Lots
19 Other Funds -0- 5,000,000 -0-
20 047. Renovate Gross Anatomy Lab
21 Other Funds -0- 5,000,000 -0-
22 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
23 048. Demolish and Construct Golf Maintenance/Chemical Building
24 Other Funds -0- 5,000,000 -0-
25 049. Renovate Bass Rudd Tennis Center
26 Other Funds -0- 5,000,000 -0-
27 050. Construct Practice Bubble
Page 188 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Other Funds -0- 5,000,000 -0-
2 051. Renovate Lynn Soccer Stadium
3 Other Funds -0- 5,000,000 -0-
4 052. Renovate Trager Football Practice Facility
5 Other Funds -0- 5,000,000 -0-
6 053. Renovate Patterson Baseball Stadium
7 Other Funds -0- 5,000,000 -0-
8 054. Renovate Thornton's Academic Center
9 Other Funds -0- 5,000,000 -0-
10 055. Construct Athletic Grounds Building
11 Other Funds -0- 5,000,000 -0-
12 056. Construct Football Practice Field Lighting
13 Other Funds -0- 5,000,000 -0-
14 057. Upgrade Regional Biocontainment Laboratories
15 Federal Funds -0- 5,000,000 -0-
16 058. Construct Building for Self-Contained Internet Access Point
17 Federal Funds -0- 5,000,000 -0-
18 059. Construct Exit Ramp at Chestnut Street Garage
19 Other Funds -0- 4,000,000 -0-
20 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
21 060. Enhance Workday Human Resources Software
22 Other Funds -0- 4,000,000 -0-
23 061. Update and Replace Equipment in ACCN Studio
24 Other Funds -0- 4,000,000 -0-
25 062. Renovate and Expand ACCN Studio
26 Other Funds -0- 4,000,000 -0-
27 063. Renovate Garvin Brown Boathouse
Page 189 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Other Funds -0- 4,000,000 -0-
2 064. Renovate Parking Structures
3 Other Funds -0- 3,600,000 -0-
4 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
5 065. Purchase Fiber Infrastructure
6 Other Funds -0- 3,500,000 -0-
7 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
8 066. Install Signage, Wayfinding, and Landscaping
9 Other Funds -0- 3,000,000 -0-
10 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
11 067. Expand, Replace and Maintain Grass Practice Fields
12 Other Funds -0- 3,000,000 -0-
13 068. Replace Fiber Pathway from ACCN Studio to Venues
14 Other Funds -0- 3,000,000 -0-
15 069. Renovate and Expand Lee Street Facility
16 Other Funds -0- 3,000,000 -0-
17 070. College of Education Academic Renovation Pool - 2026-2028
18 Other Funds -0- 3,000,000 -0-
19 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
20 071. Renovate Golf Clubhouse - Shelby County
21 Other Funds -0- 3,000,000 -0-
22 072. Upgrade Plumbing and Sanitary Lines - Dental School
23 Other Funds -0- 2,500,000 -0-
24 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
25 073. Resurface and Repair Parking Lot
26 Other Funds -0- 2,500,000 -0-
27 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
Page 190 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 074. Construct Belknap Stormwater Mitigation Improvements
2 Other Funds -0- 2,500,000 -0-
3 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
4 075. ADA Building Upgrade Pool - 2026-2028
5 Other Funds -0- 2,000,000 -0-
6 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
7 076. Build Out Space for UofL Departments
8 Other Funds -0- 2,000,000 -0-
9 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
10 077. Replace Artificial Turf Field V
11 Other Funds -0- 2,000,000 -0-
12 078. Replace Artificial Turf Field IV
13 Other Funds -0- 2,000,000 -0-
14 079. Renovate Interfaith Center
15 Other Funds -0- 1,500,000 -0-
16 (1) Authorization: The above authorization is approved pursuant to KRS 45.763.
17 080. Construct Belknap 3rd St & Brandeis Corridor Improvements
18 Restricted Funds -0- 1,112,000 -0-
19 081. Renovate Exterior Envelope Replacement - 55A Reauthorization
20 ($20,000,000 Agency Bonds)
21 082. Construct Connector Speed School to Research Park Reauthorization
22 ($10,000,000 Agency Bonds)
23 083. Renovate College of Business Academic Space Reauthorization ($15,000,000
24 Agency Bonds)
25 084. Asset Preservation - 2024-2026 Reauthorization ($8,638,000 Agency Bonds)
26 085. Construct Resident Hall Reauthorization ($80,000,000 Agency Bonds)
27 086. Construct Health Sciences Simulation Center and Collaboration Hub
Page 191 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Reauthorization ($20,000,000 Agency Bonds)
2 087. Construct Student Commons and Recreational Fields Reauthorization
3 ($12,000,000 Agency Bonds)
4 088. Modernize Steam and Chill Water Plant Reauthorization ($40,000,000
5 Agency Bonds)
6 089. Lease - Medical Center One
7 090. Lease - Nucleus 1 Building
8 091. Lease - University Point
9 092. Lease - Cardinal Towne
10 093. Lease - The Nine at Louisville
11 094. Lease - Province Apartments
12 095. Lease - Trager Institute
13 096. Lease - 1212 S 4th Street, Louisville, KY
14 097. Lease - Liberty Green Community Center
15 098. Lease - West Kentucky Community and Technical College
16 099. Lease - Denny Crum Hall
17 100. Lease - Soccer Stadium
18 101. Lease - Founders Square
19 102. Lease - Rowan Building - A&S Fine Arts
20 103. Lease - Academic Space 1
21 104. Lease - Academic Space 2
22 105. Lease - Arthur Street - Tafel Building
23 106. Lease - Athletic/Student Dormitory
24 107. Lease - Housing Facilities
25 108. Lease - Housing 1
26 109. Lease - Housing 2
27 110. Lease - Housing 3
Page 192 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 111. Lease - Housing 4
2 112. Lease - Jefferson County Clinic Space - State of Kentucky
3 113. Lease - Jefferson County - Clinic Space 1
4 114. Lease - Jefferson County - Clinic Space 2
5 115. Lease - Jefferson County - Clinic Space 3
6 116. Lease - Jefferson County - Office Space 1
7 117. Lease - Jefferson County - Office Space 2
8 118. Lease - Jefferson County - Office Space 3
9 119. Lease - Jefferson County - Office Space 4
10 120. Lease - Medical Center One 2
11 121. Lease - Nucleus 1 Building 2
12 122. Lease - Support Space 1
13 123. Guaranteed Energy Savings Performance Contracts
14 9. WESTERN KENTUCKY UNIVERSITY
15 001. Asset Preservation Pool - 2026-2028
16 Bond Funds -0- 10,000,000 9,158,000
17 002. Residential Halls Public-Private Partnership
18 Other Funds 350,000,000 -0- 200,000,000
19 (1) Authorization: The above authorization is approved pursuant to KRS 45.763
20 and 45A.077.
21 003. Acquire Furniture, Fixtures, and Equipment - Media
22 Restricted Funds -0- 20,000,000 -0-
23 004. Renovate Center for Research and Development Phase I
24 Restricted Funds -0- 6,000,000 -0-
25 Other Funds -0- 6,000,000 -0-
26 TOTAL -0- 12,000,000 -0-
27 005. Renovate Space for Exercise Science Program
Page 193 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds -0- 10,000,000 -0-
2 006. Renovate and Expand Clinical Education Complex
3 Other Funds -0- 10,000,000 -0-
4 007. Remove and Replace Student Housing at Farm
5 Other Funds -0- 10,000,000 -0-
6 008. Install Additional Club Seating at Diddle Arena
7 Other Funds -0- 10,000,000 -0-
8 009. Capital Renewal Pool - 2026-2028
9 Restricted Funds -0- 10,000,000 -0-
10 010. Construct Permanent Seating at Houchens Industries – L.T. Smith Stadium
11 Agency Bonds -0- 10,000,000 -0-
12 011. Acquire Fixtures, Furniture, and Equipment - College of Health and Human
13 Services
14 Restricted Funds -0- 8,000,000 -0-
15 012. Expand Track and Field Facilities
16 Other Funds -0- 6,500,000 -0-
17 013. Renovate South Campus
18 Restricted Funds -0- 6,000,000 -0-
19 014. Construct Baseball Grandstand
20 Other Funds -0- 6,000,000 -0-
21 015. Construct State Street Plaza
22 Restricted Funds -0- 6,000,000 -0-
23 016. Acquire Furniture, Fixtures, and Equipment Diddle Arena
24 Other Funds -0- 5,000,000 -0-
25 017. Construct South Plaza
26 Other Funds -0- 5,000,000 -0-
27 018. Acquire Furniture, Fixtures, and Equipment Pool - 2026-2028
Page 194 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Restricted Funds -0- 5,000,000 -0-
2 019. Upgrade Softball/Soccer Facilities and Field
3 Restricted Funds -0- 2,000,000 -0-
4 Other Funds -0- 2,000,000 -0-
5 TOTAL -0- 4,000,000 -0-
6 020. Renovate Owensboro Campus for the Certified Registered Nurse Anesthetist
7 (CRNA) Program
8 Restricted Funds -0- 3,000,000 -0-
9 021. Renovate Medical Center Health Complex for the Certified Registered Nurse
10 Anesthetist (CRNA) Program
11 Restricted Funds -0- 3,000,000 -0-
12 022. Purchase Property/Parking and Street Improvements
13 Restricted Funds -0- 3,000,000 -0-
14 023. Purchase Property for Campus Expansion
15 Restricted Funds -0- 3,000,000 -0-
16 024. Renovate State/Normal Street Properties
17 Restricted Funds -0- 2,000,000 -0-
18 025. Replace Retractable Seating at Diddle Arena
19 Restricted Funds -0- 1,000,000 -0-
20 026. Replace Field Lighting at Nick Denes Field
21 Restricted Funds -0- 1,000,000 -0-
22 027. Construct Parking Structure IV Reauthorization ($35,000,000 Agency Bonds)
23 028. Lease - Alumni Center
24 029. Lease - Parking Garage
25 030. Lease - Nursing/Physical Therapy
26 031. Lease - Campus Flats
27 032. Guaranteed Energy Savings Performance Contracts
Page 195 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 10. KENTUCKY COMMUNITY AND TECHNICAL COLLEGE SYSTEM
2 001. Asset Preservation Pool - 2026-2028
3 Bond Funds -0- 10,000,000 24,798,000
4 002. Construct Student Services Building Downtown Phase I - Jefferson CTC
5 Agency Bonds -0- 47,300,000 -0-
6 003. Construct Prison Education Program - Bluegrass CTC
7 Bond Funds -0- 42,000,000 -0-
8 004. Procure Aviation Equipment - Madisonville CC
9 Bond Funds -0- 6,000,000 -0-
10 005. Property Acquisition Pool - Fire Commission
11 Restricted Funds -0- 5,000,000 -0-
12 006. KCTCS Property Acquisition Pool - 2026-2028
13 Restricted Funds -0- 5,000,000 -0-
14 007. KCTCS Equipment Pool - 2026-2028
15 Restricted Funds -0- 2,500,000 -0-
16 Federal Funds -0- 2,500,000 -0-
17 TOTAL -0- 5,000,000 -0-
18 008. Construct District 4 Training Space - Fire Commission
19 Restricted Funds -0- 4,200,000 -0-
20 009. Construct District 5 Training Space - Fire Commission
21 Restricted Funds -0- 4,200,000 -0-
22 010. Acquire Harrison County ATC - Maysville CTC
23 Restricted Funds -0- 4,000,000 -0-
24 011. Construct District 14 Storage Space - Fire Commission
25 Restricted Funds -0- 3,400,000 -0-
26 012. Improve Exterior Southwest Phase I - Jefferson CTC
27 Restricted Funds -0- 2,000,000 -0-
Page 196 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 013. Procure Training Equipment - Fire Commission
2 Restricted Funds -0- 2,000,000 -0-
3 014. Install Exterior Signage - West Kentucky CTC
4 Restricted Funds -0- 1,200,000 -0-
5 015. Renovate Broadway Building Facade - Jefferson CTC
6 Restricted Funds -0- 1,200,000 -0-
7 016. Construct Multicultural Center Atrium Enclosure - Jefferson CTC
8 Reauthorization ($3,000,000 Restricted Funds)
9 017. Asset Preservation Pool - 2022-2024 Reauthorization ($26,890,000 Restricted
10 Funds)
11 018. Lease - Jefferson CTC - Bullitt County Campus
12 019. Lease - Jefferson CTC - Jefferson Education Center
13 K. PUBLIC PROTECTION CABINET
14 Budget Unit 2026-27 2027-28
15 1. HOUSING, BUILDINGS AND CONSTRUCTION
16 001. Modernize Application System Reauthorization ($3,588,000 Restricted
17 Funds)
18 L. TOURISM, ARTS AND HERITAGE CABINET
19 Budget Units 2026-27 2027-28
20 1. SECRETARY
21 001. Northern Kentucky Convention Center Renovation and Expansion
22 Restricted Funds 18,000,000 -0-
23 Agency Bonds 40,000,000 -0-
24 TOTAL 58,000,000 -0-
25 (1) Procurement Authority: Notwithstanding any statute or administrative
26 regulation to the contrary, the Northern Kentucky Convention Center Corporation,
27 created under KRS 154.90-010, is authorized to act on behalf of the Commonwealth in
Page 197 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 lieu of the Finance and Administration Cabinet for all planning, design, procurement,
2 construction execution and administration, and completion activities for the renovation
3 and modernization for the Northern Kentucky Convention Center. The Secretary of the
4 Finance and Administration Cabinet shall maintain authority to determine any protests or
5 controversies under KRS 45A.285 with respect to the project.
6 2. ARTISANS CENTER
7 001. Maintenance Pool - 2026-2028
8 Investment Income 500,000 500,000
9 3. PARKS
10 001. Maintenance Pool - 2026-2028
11 Investment Income 10,000,000 10,000,000
12 002. JJ Audubon New Conference Center Reauthorization ($7,500,000 Bond
13 Funds) and Reauthorization and Reallocation ($2,800,000 Bond Funds)
14 (1) Reauthorization and Reallocation: The above Bond Funds in the amount of
15 $2,800,000 are authorized from a reauthorization and reallocation of the project set forth
16 in 2022 Ky. Acts ch. 199, Part II, J., 2., 002.
17 4. HORSE PARK COMMISSION
18 001. Maintenance Pool - 2026-2028
19 Investment Income 1,500,000 1,500,000
20 5. STATE FAIR BOARD
21 001. Maintenance Pool - 2026-2028
22 Investment Income 3,000,000 3,000,000
23 6. FISH AND WILDLIFE RESOURCES
24 001. Fees-in-Lieu-of Stream Mitigation Projects Pool - 2026-2028
25 Restricted Funds 64,500,000 48,600,000
26 002. Maintenance Pool - 2026-2028
27 Restricted Funds 1,500,000 1,500,000
Page 198 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Federal Funds 1,500,000 1,500,000
2 TOTAL 3,000,000 3,000,000
3 003. Construct Western Kentucky Fish Hatchery
4 Restricted Funds 33,528,000 -0-
5 004. Construct Indoor Gun Range and Law Enforcement Training Facility
6 Restricted Funds 2,000,000 -0-
7 Federal Funds 18,000,000 -0-
8 TOTAL 20,000,000 -0-
9 (1) Project Use: The facility shall be multi-use for all law enforcement agencies
10 to the extent allowable by federal law.
11 7. HISTORICAL SOCIETY
12 001. Kentucky Old State Capitol Preservation Additional Reauthorization
13 ($2,185,000 Bond Funds, $169,000 Other Funds)
14 Investment Income 5,023,000 -0-
15 8. KENTUCKY CENTER FOR THE ARTS
16 001. Maintenance Pool - 2026-2028
17 Investment Income 550,000 550,000
18 PART III
19 GENERAL PROVISIONS
20 1. Funds Designations: Restricted Funds designated in the biennial budget bills
21 are classified in the state financial records and reports as the Agency Revenue Fund, State
22 Enterprise Funds (State Parks, State Fair Board, Insurance Administration, and Kentucky
23 Horse Park), Internal Services Funds (Fleet Management, Computer Services,
24 Correctional Industries, Central Printing, Risk Management, and Property Management),
25 and selected Fiduciary Funds (Other Expendable Trust Funds). Separate fund records and
26 reports shall be maintained in a manner consistent with the branch budget bills.
27 The sources of Restricted Funds appropriations in this Act shall include all fees
Page 199 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (which includes fees for room and board, athletics, and student activities) and rentals,
2 admittances, sales, bond proceeds, licenses collected by law, gifts, subventions,
3 contributions, income from investments, and other miscellaneous receipts produced or
4 received by a budget unit, except as otherwise specifically provided, for the purposes,
5 use, and benefit of the budget unit as authorized by law. Restricted Funds receipts shall
6 be credited and allotted to the respective fund or account out of which a specified
7 appropriation is made in this Act. All receipts of Restricted Funds shall be deposited in
8 the State Treasury and credited to the proper account as provided in KRS Chapters 12,
9 42, 45, and 48.
10 The sources of Federal Funds appropriations in this Act shall include federal
11 subventions, grants, contracts, or other Federal Funds received, income from investments,
12 other miscellaneous federal receipts received by a budget unit, and the Unemployment
13 Compensation Fund, except as otherwise provided, for the purposes, use, and benefit of
14 the budget unit as authorized by law. Federal Funds receipts shall be credited and allotted
15 to the respective fund account out of which a specified appropriation is made in this Act.
16 All Federal Funds receipts shall be deposited in the State Treasury and credited to the
17 proper account as provided in KRS Chapters 12, 42, 45, and 48.
18 2. Expenditure of Excess Restricted Funds or Federal Funds Receipts: If
19 receipts received or credited to the Restricted Funds accounts or Federal Funds accounts
20 of a budget unit during fiscal year 2026-2027 or fiscal year 2027-2028, and any balance
21 forwarded to the credit of these same accounts from the previous fiscal year, exceed the
22 appropriation made by a specific sum for these accounts of the budget unit as provided in
23 Part I, Operating Budget, of this Act, for the fiscal year in which the excess occurs, the
24 excess funds in the accounts of the budget unit shall become available for expenditure for
25 the purpose of the account during the fiscal year only upon compliance with the
26 conditions and procedures specified in KRS 48.400, 48.500, 48.600, 48.605, 48.610,
27 48.620, 48.630, 48.730, and 48.800, and with the authorization of the State Budget
Page 200 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Director and approval of the Secretary of the Finance and Administration Cabinet.
2 Prior to authorizing the appropriation of any excess, unbudgeted Restricted Funds
3 pursuant to this section, the State Budget Director and the Secretary of the Finance and
4 Administration Cabinet shall review the adequacy of the General Fund Surplus Account
5 with respect to its availability to support authorized expenditures from the General Fund
6 Surplus Account, known as Necessary Government Expenses. If General Fund Surplus
7 Account moneys are determined by this review to be adequate to meet known or
8 anticipated Necessary Government Expenses during fiscal year 2026-2027 or fiscal year
9 2027-2028, respectively, then the appropriation increase may be approved. If the review
10 indicates that there are insufficient funds available or reasonably estimated to become
11 available to the General Fund Surplus Account to meet known or projected Necessary
12 Government Expenses for the fiscal years enumerated above, the State Budget Director
13 and the Secretary of the Finance and Administration Cabinet may disapprove the request
14 for additional Restricted Funds expenditure authority and may direct the excess
15 Restricted Funds identified to the General Fund Surplus Account in order to meet
16 Necessary Government Expense obligations. The results of any review shall be reported
17 to the Interim Joint Committee on Appropriations and Revenue in accordance with KRS
18 48.400, 48.500, 48.600, 48.605, 48.610, 48.620, 48.630, 48.730, and 48.800.
19 Any request made by a budget unit pursuant to KRS 48.630 that relates to
20 Restricted Funds or Federal Funds shall include documentation showing a comparative
21 statement of revised estimated receipts by fund source and the proposed expenditures by
22 proposed use, with the appropriated sums specified in the Budget of the Commonwealth,
23 and statements which explain the cause, source, and use for any variances which may
24 exist.
25 Notwithstanding KRS 48.630(2), any request for allotment of unbudgeted
26 appropriations from any fund source shall be made in writing 30 days in advance of any
27 allotment revision by the head of the budget unit and transmitted simultaneously to the
Page 201 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 State Budget Director and the Interim Joint Committee on Appropriations and Revenue.
2 The State Budget Director shall report all approved revisions of unbudgeted
3 appropriations to the Interim Joint Committee on Appropriations and Revenue within 14
4 days of the revision. This report shall include analysis, including but not limited to the
5 amount, necessity, remaining unbudgeted funds, and anticipated future needs for
6 unbudgeted funds.
7 Each budget unit shall submit its reports in print and electronic format consistent
8 with the Restricted Funds and Federal Funds records contained in the fiscal biennium
9 2026-2028 Branch Budget Request Manual and according to the following schedule in
10 each fiscal year: (a) on or before the beginning of each fiscal year; (b) on or before
11 October 1; (c) on or before January 1; and (d) on or before April 1.
12 3. Interim Appropriation Increases: No appropriation from any fund source
13 shall exceed the sum specified in this Act until the agency has documented the necessity,
14 purpose, use, and source, and the documentation has been submitted to the Interim Joint
15 Committee on Appropriations and Revenue at least 30 days in advance for its review and
16 action in accordance with KRS 48.630 and Section 2. of this Part. Proposed revisions to
17 an appropriation contained in the enacted State/Executive Branch Budget or allotment of
18 an unbudgeted appropriation shall conform to the conditions and procedures of KRS
19 48.630 and this Act.
20 4. Revision of Appropriation Allotments: Allotments within appropriated
21 sums for the activities and purposes contained in the enacted State/Executive Branch
22 Budget shall conform to KRS 48.610 and may be revised pursuant to KRS 48.605 and
23 this Act.
24 5. Permitted Appropriation Obligations: No state agency, cabinet,
25 department, office, or program shall incur any obligation against the General Fund or
26 Road Fund appropriations contained in this Act unless the obligation may be reasonably
27 determined to have been contemplated in the enacted State/Executive Branch Budget and
Page 202 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 is based upon supporting documentation considered by the General Assembly and
2 legislative and executive records.
3 6. Lapse of General Fund or Road Fund Appropriations Supplanted by
4 Federal Funds: Notwithstanding KRS 45.229, any General Fund appropriation made in
5 anticipation of a lack, loss, or reduction of Federal Funds shall lapse to the Budget
6 Reserve Trust Fund Account (KRS 48.705) to the extent the Federal Funds otherwise
7 become available. Any Road Fund appropriation made in anticipation of a lack, loss, or
8 reduction of Federal Funds shall lapse to the Road Fund Surplus Account to the extent
9 the Federal Funds otherwise become available.
10 7. Federally Funded Agencies: A state agency entitled to Federal Funds, which
11 would represent 100 percent of the cost of a program, shall conform to KRS 48.730.
12 8. Lapse of General Fund or Road Fund Excess Debt Service
13 Appropriations: Notwithstanding KRS 48.720, any excess General Fund debt service
14 shall lapse to the Budget Reserve Trust Fund Account (KRS 48.705) unless otherwise
15 directed in this Act. Pursuant to KRS 48.720, any excess Road Fund debt service shall
16 lapse to the Road Fund Surplus Account unless otherwise directed in this Act.
17 9. Statutes in Conflict: All statutes and portions of statutes in conflict with any
18 of the provisions of this Act, to the extent of the conflict, are suspended unless otherwise
19 provided by this Act, and any question arising shall be decided by the Attorney General.
20 10. Interpretation of Appropriations: Notwithstanding KRS 48.500, all
21 questions that arise in interpreting this Act and the Transportation Cabinet Budget shall
22 be decided by the Attorney General, and the decision of the Attorney General shall be
23 final and conclusive.
24 11. Publication of the Budget of the Commonwealth: The State Budget
25 Director shall cause the Governor's Office for Policy and Management, within 60 days of
26 adjournment of the 2026 Regular Session of the General Assembly, to publish a final
27 enacted budget document, styled the Budget of the Commonwealth, based upon the
Page 203 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Legislative Branch Budget, State/Executive Branch Budget, Transportation Cabinet
2 Budget, and Judicial Branch Budget as enacted by the 2026 Regular Session, as well as
3 other Acts which contain appropriation provisions for the 2026-2028 fiscal biennium, and
4 based upon supporting documentation and legislative records as considered by the 2026
5 Regular Session. This document shall include, for each agency and budget unit, a
6 consolidated budget summary statement of available regular and continuing appropriated
7 revenue by fund source, corresponding appropriation allocations by program or
8 subprogram as appropriate, budget expenditures by principal budget class, and any other
9 fiscal data and commentary considered necessary for budget execution by the Governor's
10 Office for Policy and Management and oversight by the Interim Joint Committee on
11 Appropriations and Revenue. The enacted State/Executive Branch Budget and
12 Transportation Cabinet Budget shall be revised or adjusted only upon approval by the
13 Governor's Office for Policy and Management as provided in each Part of this Act and by
14 KRS 48.400 to 48.810, and upon review and approval by the Interim Joint Committee on
15 Appropriations and Revenue.
16 12. State Financial Condition: Pursuant to KRS 48.400, the State Budget
17 Director shall monitor and report on the financial condition of the Commonwealth.
18 13. Prorating Administrative Costs: The Secretary of the Finance and
19 Administration Cabinet is authorized to establish a system or formula or a combination of
20 both for prorating the administrative costs of the Finance and Administration Cabinet, the
21 Department of the Treasury, and the Office of the Attorney General relative to the
22 administration of programs in which there is joint participation by the state and federal
23 governments for the purpose of receiving the maximum amount of participation
24 permitted under the appropriate federal laws and regulations governing the programs. The
25 receipts and allotments under this section shall be reported to the Interim Joint
26 Committee on Appropriations and Revenue prior to any transfer of funds.
27 14. Construction of Budget Provisions Regarding Executive Reorganization
Page 204 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Orders: Nothing in this Act shall be construed to confirm or ratify, under KRS 12.028,
2 any executive reorganization order unless the executive order was confirmed or ratified
3 by appropriate amendment to the Kentucky Revised Statutes in another Act of the 2026
4 Regular Session of the General Assembly.
5 15. Executive Orders: (1) For the purpose of ensuring transparent
6 government, the Governor shall provide a comprehensive report to the Legislative
7 Research Commission simultaneously with each and every executive order issued
8 pertaining to:
9 (a) Authorizing the expenditure of state funds over $10,000;
10 (b) Establishing or altering the organization of state agencies;
11 (c) Establishing or altering the services provided by state government; or
12 (d) Establishing a new program or altering an existing program administered by
13 state government.
14 (2) The comprehensive report shall contain the following items:
15 (a) A complete statement of each essential fact upon which the order is based;
16 (b) A complete statement of each goal sought through issuance of the order;
17 (c) A comprehensive analysis explaining how the executive order achieves each
18 stated goal with the least burden placed upon the constitutional rights of the citizens of
19 the Commonwealth of Kentucky and how each stated goal is accomplished with the most
20 efficient use of taxpayer money;
21 (d) A detailed estimate of the anticipated expenditures of all state funds and all
22 state employee time required for implementation or enforcement itemized in the smallest
23 categories reasonably identifiable and stated in weekly increments; and
24 (e) A detailed statement of all state funds and all state employee time actually
25 expended for implementation or enforcement of each and every prior executive order
26 upon the same issue or event or substantially similar issue or event itemized in the
27 smallest categories reasonably identifiable and stated in weekly increments.
Page 205 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Each comprehensive report shall be updated every 30 days subsequent to issuance
2 of an executive order and shall be provided to the Legislative Research Commission.
3 (3) Notwithstanding any statute to the contrary, except as provided in this Act, no
4 state funds or state employee time shall be expended by any person or agency to
5 implement or enforce any executive order issued other than as authorized by KRS
6 Chapters 39A to 39F, as amended by 2021 Regular Session SB 1 and further amended by
7 subsequent acts of the 2021 General Assembly, or other than as may be implemented or
8 enforced for a total sum not exceeding $100,000, inclusive of all state employee time and
9 costs, or other than as may relate to an emergency order issued relative to a natural
10 disaster, or other than as may be approved by the General Assembly.
11 16. Tax Expenditure Revenue Loss Estimates: By September 1 of each fiscal
12 year, the Office of State Budget Director shall provide to each branch of government
13 detailed estimates for the General Fund and Road Fund for the current and next two fiscal
14 years of the revenue loss resulting from tax expenditures. The Department of Revenue
15 shall provide assistance and furnish data, which is not restricted by KRS 131.190. "Tax
16 expenditure" as used in this section means an exemption, exclusion, or deduction from
17 the base of a tax, a credit against the tax, a deferral of a tax, or a preferential tax rate. The
18 estimates shall include for each tax expenditure the amount of revenue loss, a citation of
19 the legal authority for the tax expenditure, the year in which it was enacted, and the tax
20 year in which it became effective.
21 17. Duplicate Appropriations: Any appropriation item and sum in Parts I to X
22 of this Act and in an appropriation provision in any Act of the 2026 Regular Session
23 which constitutes a duplicate appropriation shall be governed by KRS 48.312.
24 18. Priority of Individual Appropriations: KRS 48.313 shall control when a
25 total or subtotal figure in this Act conflicts with the sum of the appropriations of which it
26 consists.
27 19. Severability of Budget Provisions: Appropriation items and sums in Parts I
Page 206 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 to X of this Act shall conform to KRS 48.311. If any section, any subsection, or any
2 provision is found by a court of competent jurisdiction in a final, unappealable order to be
3 invalid or unconstitutional, the decision of the courts shall not affect or impair any of the
4 remaining sections, subsections, or provisions.
5 20. Unclaimed Lottery Prize Money: For fiscal year 2026-2027 and fiscal year
6 2027-2028, all unclaimed lottery prize money under KRS 154A.110(3) shall be credited
7 to the Kentucky Educational Excellence Scholarship Reserve Account to be held as a
8 subsidiary account within the Finance and Administration Cabinet for the purpose of
9 funding the KEES Program as appropriated in this Act. If the Kentucky Higher Education
10 Assistance Authority certifies to the State Budget Director that the appropriations in this
11 Act for the KEES Program under the existing award schedule are insufficient to meet
12 funds required for eligible applicants, then the State Budget Director shall provide the
13 necessary allotment of funds in the balance of the KEES Reserve Account to fund the
14 KEES Program. Actions taken under this section shall be reported to the Interim Joint
15 Committee on Appropriations and Revenue on a timely basis.
16 21. Workers' Compensation: Notwithstanding KRS 342.340(1) and 803 KAR
17 25:021, Section 4, the Personnel Cabinet shall be exempt from procuring excess risk
18 insurance in fiscal year 2026-2027 and fiscal year 2027-2028 for the Workers'
19 Compensation Benefits and Reserve Program administered by the Cabinet.
20 22. Carry Forward and Undesignated General Fund and Road Fund Carry
21 Forward: Notwithstanding KRS 48.700 and 48.705, and other Parts of this Act, the
22 Secretary of the Finance and Administration Cabinet shall determine and certify, within
23 30 days of the close of fiscal year 2025-2026 and fiscal year 2026-2027, the actual
24 amount of undesignated balance of the General Fund and the Road Fund for the year just
25 ended. The amounts from the undesignated fiscal year 2025-2026 and fiscal year 2026-
26 2027 General Fund and Road Fund balances that are designated and carried forward for
27 budgeted purposes in the 2026-2028 fiscal biennium shall be determined by the State
Page 207 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Budget Director during the close of the respective fiscal year and shall be reported to the
2 Interim Joint Committee on Appropriations and Revenue within 30 days of the close of
3 the fiscal year. Any General Fund undesignated balance in excess of the amount
4 designated for budgeted purposes under this section shall be made available for the
5 General Fund Surplus Expenditure Plan contained in Part VII of this Act unless otherwise
6 provided in this Act. The Road Fund undesignated balance in excess of the amount
7 designated for budgeted purposes under this section shall be made available for the Road
8 Fund Surplus Expenditure Plan contained in Part IX of this Act unless otherwise
9 provided in this Act.
10 23. Budget Implementation: The General Assembly directs the Executive
11 Branch to carry out all appropriations and budgetary language provisions as contained in
12 the State/Executive Branch Budget. The Legislative Research Commission shall review
13 quarterly expenditure data to determine if an agency is out of compliance with this
14 directive. If the Legislative Research Commission suspects that any entity has acted in
15 non-conformity with this section, the Legislative Research Commission may order an
16 audit or review at the agency's expense. Such audit findings, reviews, and reports shall be
17 subject to the Kentucky Open Records Act. The Secretary of each Cabinet, the
18 Commissioner of Education, or agency head shall provide, in the form and manner
19 prescribed by the Legislative Research Commission, a comprehensive annual report,
20 beginning September 1, 2026, to the Interim Joint Committee on Appropriations and
21 Revenue detailing expenditures related to the appropriations contained within the
22 budgetary language provisions for each budget unit within their cabinet. If an agency
23 does not expend the full General Fund or Road Fund appropriations contained within a
24 budgetary language provision, the unexpended funds shall be transferred to the Budget
25 Reserve Trust Fund Account (KRS 48.705) or the Road Fund Surplus Account (KRS
26 48.710), respectively.
27 24. Appropriations Expenditure Purpose and Transfer Restrictions: Funds
Page 208 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 appropriated in this Act shall be expended only for the purposes specified and authorized
2 by the General Assembly in this Act. No funds appropriated in this Act shall be
3 transferred to or between any cabinet, department, board, commission, institution,
4 agency, or budget unit of state government unless specifically authorized by the General
5 Assembly in this Act and KRS 48.400 to 48.810. Semiannually, beginning February 1,
6 2027, the State Budget Director shall submit a letter to the Legislative Research
7 Commission certifying any known violations of any provision of this section for that six-
8 month period or any prior six-month period. Compliance with the provisions of this
9 section shall be reviewed and determined by the Interim Joint Committee on
10 Appropriations and Revenue.
11 25. Information Technology: All authorized computer information technology
12 projects shall submit a semiannual progress report to the Capital Projects and Bond
13 Oversight Committee and the Information Technology Oversight Committee. The
14 reporting process shall begin six months after the project is authorized and shall continue
15 through completion of the project. The initial report shall establish a timeline for
16 completion and cash disbursement schedule. Each subsequent report shall update the
17 timeline and budgetary status of the project and explain in detail any issues with
18 completion date and funding.
19 26. Equipment Service Contracts and Energy Efficiency Measures: The
20 General Assembly mandates that the Finance and Administration Cabinet review all
21 equipment service contracts to maximize savings to the Commonwealth to strictly adhere
22 to the provisions of KRS 56.772, 56.782, and 56.784 in maximizing the use of energy
23 efficiency measures.
24 27. Debt Restructuring: Notwithstanding any other provision of the Kentucky
25 Revised Statutes, no General Fund or Road Fund debt restructuring transactions shall be
26 undertaken during the 2026-2028 fiscal biennium.
27 28. Effects of Subsequent Legislation: If any measure enacted during the 2026
Page 209 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Regular Session of the General Assembly subsequent to this Act contains an
2 appropriation or is projected to increase or decrease General Fund revenues, the amount
3 in the Budget Reserve Trust Fund shall be revised to accommodate the appropriation or
4 the reduction or increase in projected revenues. Notwithstanding any provision of KRS
5 48.120(3) and (4) to the contrary, the official enacted revenue estimates of the
6 Commonwealth described in KRS 48.120(4) shall be adjusted at the conclusion of the
7 2026 Regular Session of the General Assembly, respectively, to incorporate any
8 projected revenue increases or decreases that will occur as a result of actions taken by the
9 General Assembly subsequent to the passage of this Act by both chambers.
10 29. Permitted Use of Water and Sewer Bond Funds: Notwithstanding Part II,
11 (3) of this Act and any statute to the contrary, any balances remaining for either closed or
12 open project grant agreements authorized pursuant to bond pools set forth in 2003 Ky.
13 Acts ch. 156, Part II, A., 3., d. Water and Sewer Resources Development Fund for
14 Tobacco Counties and e. Water and Sewer Resources Development Fund For Coal
15 Producing Counties; 2005 Ky. Acts ch. 173, Part II, A., 3., 003. Infrastructure for
16 Economic Development Fund for Coal-Producing Counties and 004. Infrastructure for
17 Economic Development Fund for Tobacco Counties; 2006 Ky. Acts ch. 252, Part II, A.,
18 2., 003. Infrastructure for Economic Development Fund for Non-Coal Producing
19 Counties and 004. Infrastructure for Economic Development Fund for Coal-Producing
20 Counties; 2008 Ky. Acts ch. 123, Section 3., 004. Infrastructure for Economic
21 Development Fund for Coal-Producing Counties and 005. Infrastructure for Economic
22 Development Fund for Non-Coal Producing Counties; 2008 Ky. Acts ch. 174, Section 2.;
23 and 2009 Ky. Acts ch. 87, Section 2. shall not lapse and shall remain to the credit of
24 projects previously authorized by the General Assembly unless expressly reauthorized
25 and reallocated by action of the General Assembly.
26 30. Approval of State Aircraft Travel: Notwithstanding KRS 45.101, 174.508,
27 and any other statute or administrative regulation to the contrary, the use of state aircraft
Page 210 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 by any secretary or other state official of any Executive Branch cabinet for out-of-state
2 travel shall be approved by the State Treasurer. The State Treasurer shall only approve
3 requests which document that the use of state aircraft is the lowest cost option as
4 measured by both travel costs and travel time. The State Treasurer shall not designate
5 approval authority for out-of-state travel on state aircraft by Executive Branch cabinet
6 secretaries or other state officials to any other person. Any requests and documentation
7 regarding the use of state aircraft collected by the State Treasurer shall be subject to the
8 Kentucky Open Records Act, KRS 61.870 to 61.884.
9 31. Electronic Access to Budget Information: In accordance with KRS 48.950,
10 the State Budget Director shall continue to work cooperatively with the Legislative
11 Research Commission to provide relevant budgetary information in a timely manner. To
12 ensure that this information is transmitted in its most useful format, the State Budget
13 Director shall provide electronic versions of all documents requested by the Legislative
14 Research Commission in an editable format in order for documents to be manipulated
15 without the use of specialized software. Electronic access shall also include the ability to
16 access and view, but not edit, documents contained in KBUD and all related or successor
17 budgetary systems of record.
18 32. Motor Vehicles: Notwithstanding any statute to the contrary, no agency,
19 department, air pollution control district, or political subdivision of the Commonwealth,
20 including the Transportation Cabinet, shall mandate the purchase of electric vehicles, and
21 no Request for Proposal shall limit purchasing of vehicles to solely electric vehicles.
22 33. Fiscal Year 2027-2028 Funds Expenditure Restriction: Except in the case
23 of a declared emergency, the Governor, all agency heads, and all other constitutional
24 officers shall not expend or encumber in the aggregate more than 50 percent of the funds
25 appropriated by this Act during the first half of fiscal year 2027-2028.
26 34. Operating Expense Reduction: (1) The State Auditor has identified that
27 in fiscal year 2024-2025 the Executive Branch spent $365,118,727 on the following
Page 211 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 expense codes:
2 (a) Employee Training - State Employee Only (E133) $6,718,307;
3 (b) Advertising Services (E147) $9,362,940;
4 (c) Temporary Manpower Services (E191) $69,770,650;
5 (d) Advertising (E255) $29,692,913;
6 (e) Services Not Otherwise Classified (E257) $51,802,056;
7 (f) Expenses Related to Trade Shows (E259) $4,605,317;
8 (g) Food Products (E341) $5,369,478;
9 (h) Subscriptions (E353) $3,273,091;
10 (i) In-State Travel (E361) $23,278,869;
11 (j) Out of State Travel (E362) $7,438,490;
12 (k) Travel for Non-State Employees (E363) $3,983,338;
13 (l) Dues (E381) $10,336,469; and
14 (m) Other (E399) $118,383.22.
15 (2) The State Budget Director, the Secretary of the Executive Cabinet, and the
16 Secretary of the Finance and Administration Cabinet shall take the necessary steps to
17 reduce the expenses for the Executive Branch, in codes E361 and E362, in the fourth
18 fiscal quarter of fiscal year 2025-2026. The State Budget Director shall also submit a
19 written report to the Interim Joint Committee on Appropriations and Revenue by August
20 1, 2026, concerning the Executive Branch expenditures assigned to these codes for fiscal
21 year 2025-2026.
22 (3) In order to implement the 2026 General Assembly's policy and fiscal
23 directives of the contained in Part I, Operating Budget, of this Act, it will be necessary
24 for the Executive Branch to reduce the operating cost of each agency. To accomplish this
25 policy directive, unless otherwise directed by State or Federal Law or required by Court
26 Order, the State Budget Director, the Secretary of the Finance and Administration
27 Cabinet, and the Secretary of the Personnel Cabinet shall take the necessary steps to
Page 212 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 reduce, modify, or eliminate the expenditures of state agencies in the following priority
2 order:
3 (a) Temporary Manpower Services personnel and contracts;
4 (b) Advertising Services and other advertising costs, by requiring that the prior
5 written approval of the Secretary of the Finance and Administration Cabinet be secured
6 before any expense is incurred in these code areas;
7 (c) Out-of-state travel should require and receive prior written approval of the
8 Secretary of the Finance and Administration Cabinet;
9 (d) Practice of providing food and meals that cost more than is set out in the in-
10 state travel guideline allowance for employees attending meetings, unless the prior
11 written approval of the State Budget Director has been secured;
12 (e) Prior written approval of the agency head for any conference, meeting, or
13 event that will require in-state travel of 20 employees or more;
14 (f) Prior written approval of the agency head for any expense that will be charged
15 to the eMARS code E257 (Services Not Otherwise Classified), code E399 (Other), or
16 code E259 (Expenses Related to Trade Shows);
17 (g) Abolishment of positions that have remained vacant for six months;
18 (h) Moratorium on all discretionary salary increases; and
19 (i) Reduction, modification, or elimination of programs or services not required
20 by state or federal law or regulation.
21 (4) Quarterly, beginning June 15, 2026, the Secretary of the Finance and
22 Administration Cabinet and the State Budget Director shall provide a written report to the
23 Interim Joint Committee on Appropriations and Revenue on the actions taken to
24 implement the policy and fiscal directives provided in this Part. That report shall contain
25 at least the following:
26 (a) A listing of all prior approvals granted that are required by subsection (3)(b),
27 (c), (d), (e), and (f) of this section;
Page 213 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (b) A comparison of the charges processed to the codes listed in subsection (1) of
2 this section between the past month of the current fiscal year and the same month of the
3 previous fiscal year; and
4 (c) The identification of any other policy decisions, directives, or actions taken by
5 the Executive Branch in the past month to reduce the operating cost of programs,
6 services, or activities of the Executive Branch.
7 35. Operational Expenditures Data: The head of each budget unit shall, by
8 October 1, 2026, submit a report to the Legislative Oversight and Investigations
9 Committee and the Interim Joint Committee on Appropriations and Revenue with the
10 following information and data pertaining to the historical and projected operational
11 expenditures for each budget unit:
12 (1) Identifying information of the budget unit; and
13 (2) A description of each program, function, service, or benefit provided by the
14 budget unit, including but not limited to the following:
15 (a) Measurable outcome data for the program, function, service, or benefit
16 provided in fiscal year 2025-2026 and projected for fiscal years 2026–2027 and 2027–
17 2028 for programs, functions, services, or benefits that are statutorily mandated;
18 (b) Measurable outcome data for the program, function, service, or benefit
19 provided in fiscal year 2025-2026 and projected for fiscal years 2026–2027 and 2027–
20 2028 for programs, functions, services, or benefits that are not statutorily mandated;
21 (c) Identification of any contracts or grants with other state budget units or
22 external providers engaged to provide or assist in providing the program, function,
23 service, or benefit in fiscal years 2025-2026, 2026-2027, or 2027-2028;
24 (d) The number of full-time, part-time, and other filled positions assigned to the
25 program, function, service, or benefit on July 1 of each fiscal year;
26 (e) The number and projected cost of all temporary manpower service personnel
27 assigned to the program, function, service, or benefit as of July 1 each fiscal year;
Page 214 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (f) The actual expenditures, by fund source, for each program, function, service,
2 or benefit for fiscal year 2025-2026;
3 (g) The projected expenditures, by fund source, by fiscal year, for each program,
4 function, service, or benefit for fiscal years 2026-2027 and 2027-2028; and
5 (h) The actual balance of any Restricted Funds or Agency Trust Funds assigned
6 to the program, function, service, or benefit as of July 1, 2026, and projected to be on
7 July 1, 2027, and July 1, 2028.
8 The information shall be submitted only in a format prescribed by the Legislative
9 Oversight and Investigations Committee.
10 The head of each budget unit shall, within 30 days, provide any follow-up or
11 additional information on the programs, functions, services, or benefits provided by the
12 budget unit requested by the Legislative Research Commission or a subcommittee
13 thereof.
14 36. Control of Deadly Weapons: Notwithstanding KRS 237.115, during the
15 period of the 2026-2028 fiscal biennium and the ongoing renovation of the State Capitol
16 and associated facilities in Frankfort, the General Assembly shall have the authority to
17 regulate, restrict, or prohibit the carrying of deadly weapons, whether concealed or
18 unconcealed, within the buildings or portions of buildings controlled, occupied, or
19 inhabited by the Legislative Branch.
20 37. Quarter Horse Racing Acquisition and Infrastructure: The Kentucky
21 Horse Racing and Gaming Corporation, with the approval of the Kentucky Quarter Horse
22 Racing Association, may utilize funds as established by KRS 230.405 and regulated by
23 810 KAR 7:080 to purchase the rights to a Grade I Quarter Horse race. Any race acquired
24 under this section shall be conducted at a licensed track or association within the
25 Commonwealth of Kentucky, and all rights shall vest in the Kentucky Quarter Horse
26 Racing Association.
27 A track or association located within the Commonwealth of Kentucky that offers a
Page 215 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Grade I Quarter Horse race shall be authorized, upon approval by the Kentucky Quarter
2 Horse Racing Association, to seek and receive funds from the Kentucky Horse Racing
3 and Gaming Corporation. These funds shall be utilized for infrastructure reasonably
4 necessary to ensure the safety and integrity of the race meets.
5 Total expenditures authorized under this section shall not exceed 20 percent of the
6 total current receipts of the fund established by KRS 230.405. All such funds shall be
7 appropriated by the Corporation no later than March 1, 2027.
8 PART IV
9 STATE SALARY/COMPENSATION, BENEFIT, AND EMPLOYMENT POLICY
10 1. Authorized Personnel Complement: On July 1, 2026, and July 1, 2027, the
11 Personnel Cabinet and the Office of State Budget Director shall establish a record for
12 each budget unit of authorized permanent full-time and other positions based upon the
13 enacted State/Executive Branch Budget of the Commonwealth and any adjustments
14 authorized by provisions in this Act. The total number of filled permanent full-time and
15 all other positions shall not exceed the authorized complements pursuant to this section.
16 An agency head may request an increase in the number of authorized positions to the
17 State Budget Director. Upon approval of the State Budget Director, the Secretary of the
18 Personnel Cabinet may authorize the employment of individuals in addition to the
19 authorized complement. A report of the actions authorized in this section shall be
20 provided to the Legislative Research Commission on a monthly basis.
21 2. Salary Increment: Notwithstanding KRS 18A.355, relating to anniversary
22 date, and notwithstanding KRS 156.808(6)(e) and 163.032(1), a two percent salary
23 increase is provided, effective July 1, 2026, and a two percent salary increase is provided,
24 effective July 1, 2027, on the base salary or wages of each eligible state employee.
25 3. Employee Cross-Reference: The Personnel Cabinet may permit married
26 couples who are both eligible to participate in the state health insurance plan to be
27 covered under one family health benefit plan.
Page 216 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 4. Full-Time Positions: Notwithstanding KRS 18A.005(18)(a), full-time
2 positions in the state parks, where the work assigned is dependent upon fluctuations in
3 tourism, may be assigned work hours from 25 hours per week and remain in full-time
4 positions.
5 5. Employer Retirement Contribution Rates: Notwithstanding KRS 61.565
6 and 61.702, the employer contribution rates for Kentucky Employees Retirement System
7 from July 1, 2026, through June 30, 2028, and except as otherwise provided in this Act,
8 shall be 18.83 percent, consisting of 18.83 percent for pension for hazardous duty
9 employees; for the same period, the employer contribution for employees of the State
10 Police Retirement System shall be 54.33 percent, consisting of 51.84 percent for pension
11 and 2.49 percent for health insurance. Notwithstanding any other provision of this Act or
12 KRS 61.565 or 61.702 to the contrary, the initial actuarially accrued liability employer
13 contribution rate for fiscal year 2026-2027 and for fiscal year 2027-2028, for
14 nonhazardous employees in the Executive Branch departments shall be determined by the
15 State Budget Director by May 1 prior to the beginning of each fiscal year. The employer
16 contribution rate shall include the normal cost contribution of 7.76 percent and be
17 sufficient to adhere to the prorated amount of the actuarially accrued liability to each
18 individual nonhazardous employer as determined by the Kentucky Employees Retirement
19 System. The rates in this section apply to wages and salaries earned for work performed
20 during the described period regardless of when the employee is paid for the time worked.
21 6. Health Care Spending Account: Notwithstanding KRS 18A.2254(2)(a) and
22 (b), if a public employee waives coverage provided by his or her employer under the
23 Public Employee Health Insurance Program, the employer shall forward a monthly
24 amount to be determined by the Secretary of the Personnel Cabinet for that employee as
25 an employer contribution to a health reimbursement account or a health flexible spending
26 account, but not less than $175 per month, subject to any conditions or limitations
27 imposed by the Secretary of the Personnel Cabinet to comply with applicable federal law.
Page 217 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 The administrative fees associated with a health reimbursement account or health flexible
2 spending account shall be an authorized expense to be charged to the Public Employee
3 Health Insurance Trust Fund.
4 7. State Group Health Insurance Plan - Transfer Between Plan Years:
5 Notwithstanding KRS 18A.2254, the Secretary of the Finance and Administration
6 Cabinet and the Secretary of the Personnel Cabinet are authorized to use the excess funds
7 from any prior plan year to satisfy claims or expenses in Plan Year 2022, Plan Year 2023,
8 Plan Year 2024, and Plan Year 2025.
9 8. State Group Health Insurance Plan - Plan Year Closure: Notwithstanding
10 KRS 18A.2254, Plan Year 2021 shall be considered closed as of June 30, 2026, and the
11 balance from that Plan Year shall be transferred to Plan Year 2022. All other income and
12 expenses attributable to the closed Plan Year shall be deposited in or charged to the Plan
13 Year 2022 account after that date.
14 9. Mandated Health Coverage: Employer and employee contributions made to
15 the Kentucky Employees Health Plan Trust Fund for Plan Years 2027 and 2028 are
16 sufficient to implement and carry out the provisions of 2024 Ky. Acts ch. 75 and 97.
17 PART V
18 FUNDS TRANSFER
19 The General Assembly finds that the financial condition of state government
20 requires the following action.
21 Notwithstanding the statutes or requirements of the Restricted Funds enumerated
22 below, there is transferred to the General Fund the following amounts in fiscal year 2026-
23 2027 and fiscal year 2027-2028:
24 2026-27 2027-28
25 A. ENERGY AND ENVIRONMENT CABINET
26 1. Environmental Protection
27 Insurance Administration Fund 24,000,000 26,000,000
Page 218 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (KRS 224.60-130, 224.60-140, 224.60-145, and 224.60-150)
2 B. HEALTH AND FAMILY SERVICES CABINET
3 1. General Administration and Program Support
4 Medical Cannabis Agency Fund -0- 10,400,000
5 C. JUSTICE AND PUBLIC SAFETY CABINET
6 1. Criminal Justice Training
7 Criminal Justice Training 2,368,000 2,368,000
8 (KRS 15.430 and 136.392(2))
9 Notwithstanding KRS 15.430 and 136.392(2), these funds transfers to the General
10 Fund support the General Fund debt service for the capital project in 2022 Ky. Acts ch.
11 199, Part II, H., 2., 002.
12 TOTAL - FUNDS TRANSFER 26,368,000 38,768,000
13 PART VI
14 GENERAL FUND BUDGET REDUCTION PLAN
15 Pursuant to KRS 48.130 and 48.600, a General Fund Budget Reduction Plan is
16 enacted for state government in the event of an actual or projected revenue shortfall in
17 General Fund revenue receipts, excluding Tobacco Settlement – Phase I receipts, of
18 $15,498,900,000 in fiscal year 2025-2026, $15,882,000,000 in fiscal year 2026-2027, and
19 $16,232,200,000 in fiscal year 2027-2028, as modified pursuant to Part III, 28. of this Act
20 and by related Acts and actions of the General Assembly in any subsequent extraordinary
21 or regular session. Notwithstanding KRS 48.130, direct services, obligations essential to
22 the minimum level of constitutional functions, and other items that may be specified in
23 this Act, are exempt from the requirements of this Plan. Each branch head shall prepare a
24 specific plan to address the proportionate share of the General Fund revenue shortfall
25 applicable to the respective branch. No budget revision action shall be taken by a branch
26 head in excess of the actual or projected revenue shortfall.
27 The Governor, the Secretary of State, the Attorney General, the Treasurer, the
Page 219 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Commissioner of Agriculture, the Auditor of Public Accounts, the Chief Justice, and the
2 Legislative Research Commission shall direct and implement reductions in allotments
3 and appropriations only for their respective branch budget units as may be necessary, as
4 well as take other measures which shall be consistent with the provisions of this Part and
5 biennial branch budget bills.
6 Pursuant to KRS 48.130(4), in the event of a revenue shortfall of five percent or
7 less, the following General Fund budget reduction actions shall be implemented:
8 (1) The Local Government Economic Assistance Fund and the Local Government
9 Economic Development Fund shall be adjusted by the Secretary of the Finance and
10 Administration Cabinet to equal revised estimates of receipts pursuant to KRS 42.4582 as
11 modified by the provisions of this Act;
12 (2) Transfers of excess unappropriated Restricted Funds, notwithstanding any
13 statutes to the contrary, other than fiduciary funds, to the General Fund shall be applied
14 as determined by the head of each branch for its respective budget units. No transfers to
15 the General Fund shall be made from the following:
16 (a) Local Government Economic Assistance Fund and Local Government
17 Economic Development Fund;
18 (b) Unexpended debt service from the Tobacco-Settlement Phase I Funds,
19 including but not limited to unexpended debt service and the Tobacco Unbudgeted
20 Interest Income-Rural Development Trust Fund, in either fiscal year; and
21 (c) The Kentucky Permanent Pension Fund;
22 (3) Lapse unexpended debt service;
23 (4) Any unanticipated Phase I Master Settlement Agreement revenues in both
24 fiscal years shall be appropriated according to Part X of this Act and shall not be
25 transferred to the General Fund;
26 (5) Use of the unappropriated balance of the General Fund surplus shall be
27 applied;
Page 220 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (6) Any language provision that expresses legislative intent regarding a specific
2 appropriation shall not be reduced by a greater percentage than the reduction to the
3 General Fund appropriation for that budget unit;
4 (7) Lapse contributions appropriated to pensions in excess of statutory
5 requirements;
6 (8) Lapse contributions appropriated to pension insurance in excess of actuarially
7 required contributions;
8 (9) Reduce General Fund appropriations in Executive Branch agencies' operating
9 budget units by a sufficient amount to balance either fiscal year. No reductions of
10 General Fund appropriations shall be made from the Local Government Economic
11 Assistance Fund or the Local Government Economic Development Fund;
12 (10) Notwithstanding subsection (9) of this Part, no reductions shall be made to the
13 Secretary of State, the Attorney General, the Treasurer, the Commissioner of Agriculture,
14 or the Auditor of Public Accounts, or their offices, Commonwealth's Attorneys or their
15 offices, or County Attorneys or their offices. The Governor may request their
16 participation in a budget reduction; however, the level of participation shall be at the
17 discretion of the Constitutional Officer or the Prosecutors Advisory Council, and shall
18 not exceed the actual percentage of revenue shortfall;
19 (11) Excess General Fund appropriations which accrue as a result of personnel
20 vacancies and turnover, and reduced requirements for operating expenses, grants, and
21 capital outlay shall be determined and applied by the heads of the executive, judicial, and
22 legislative departments of state government for their respective branches. The branch
23 heads shall certify the available amounts which shall be applied to budget units within the
24 respective branches and shall promptly transmit the certification to the Secretary of the
25 Finance and Administration Cabinet and the Legislative Research Commission. The
26 Secretary of the Finance and Administration Cabinet shall execute the certified actions as
27 transmitted by the branch heads.
Page 221 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Branch heads shall take care, by their respective actions, to protect, preserve, and
2 advance the fundamental health, safety, legal and social welfare, and educational well-
3 being of the citizens of the Commonwealth;
4 (12) Pursuant to KRS 48.130 and 48.600, if the actions contained in subsections
5 (1) to (11) of this Part are insufficient to eliminate an actual or projected General Fund
6 revenue shortfall, then the Governor is empowered and directed to take necessary actions
7 with respect to the Executive Branch budget units to balance the budget by such actions
8 conforming with the criteria expressed in this Part; and
9 (13) Within 15 days of the enactment of a General Fund Budget Reduction Plan,
10 the Secretary of each cabinet, the Commissioner of Education, or the head of each
11 agency, shall submit a report to the Interim Joint Committee on Appropriations and
12 Revenue detailing the plan for implementation of the reduction, including any personnel
13 actions, programmatic changes, or other measures necessary to achieve the required
14 reduction.
15 PART VII
16 GENERAL FUND SURPLUS EXPENDITURE PLAN
17 (1) Notwithstanding KRS 48.130(7), 48.140(3), 48.700, and 48.705, there is
18 established a plan for the expenditure of General Fund surplus moneys pursuant to a
19 General Fund Surplus Expenditure Plan contained in this Part for fiscal years 2025-2026,
20 2026-2027, and 2027-2028. Pursuant to the enactment of the Surplus Expenditure Plan,
21 General Fund moneys made available for the General Fund Surplus Expenditure Plan
22 pursuant to Part III, General Provisions, Section 22. of this Act are appropriated to the
23 following:
24 (a) Expenditures without a sum-specific appropriation amount, known as
25 Necessary Government Expenses, as authorized in Part I of this Act;
26 (b) The entire remaining amount to the Budget Reserve Trust Fund; and
27 (c) No surplus moneys in any fiscal year shall be reserved for Necessary
Page 222 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Government Expenses in a subsequent fiscal year.
2 (2) The Secretary of the Finance and Administration Cabinet shall determine,
3 within 30 days after the close of each fiscal year, based on the official financial records of
4 the Commonwealth, the amount of actual General Fund undesignated fund balance for
5 the General Fund Surplus Account that may be available for expenditure pursuant to the
6 Plan in fiscal year 2026-2027 and fiscal year 2027-2028. The Secretary of the Finance
7 and Administration Cabinet shall certify the amount of actual General Fund undesignated
8 fund balance available for expenditure to the Legislative Research Commission.
9 PART VIII
10 ROAD FUND BUDGET REDUCTION PLAN
11 There is established a Road Fund Budget Reduction Plan for fiscal years 2025-
12 2026, 2026-2027, and 2027-2028. Notwithstanding KRS 48.130(1) and (3) relating to
13 statutory appropriation adjustments related to the revenue sharing of motor fuels taxes, in
14 the event of an actual or projected revenue shortfall in Road Fund revenue receipts of
15 $1,844,000,000 in fiscal year 2025-2026, $1,836,000,000 in fiscal year 2026-2027, and
16 $1,909,400,000 in fiscal year 2027-2028, as modified by related Acts and actions of the
17 General Assembly in an extraordinary or regular session, the Governor shall implement
18 sufficient reductions as may be required to protect the highest possible level of service.
19 Within 15 days of the enactment of a Road Fund Budget Reduction Plan, the
20 Secretary of each cabinet or the head of each agency shall submit a report to the Interim
21 Joint Committee on Appropriations and Revenue detailing the plan for implementation of
22 the reduction, including any personnel actions, programmatic changes, or other measures
23 necessary to achieve the required reduction.
24 PART IX
25 ROAD FUND SURPLUS EXPENDITURE PLAN
26 Notwithstanding KRS 48.110, 48.140, and 48.710, there is established a plan for the
27 expenditure of the Road Fund Surplus Account. All moneys in the Road Fund Surplus
Page 223 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Account shall be appropriated to the State Construction Account within the Highways
2 budget unit and utilized to support projects in the 2026-2028 Biennial Highway
3 Construction Program.
4 PART X
5 PHASE I TOBACCO SETTLEMENT
6 (1) General Purpose: This Part prescribes the policy implementing aspects of the
7 national settlement agreement between the tobacco industry and the collective states as
8 described in KRS 248.701 to 248.727. In furtherance of that agreement, the General
9 Assembly recognizes that the Commonwealth of Kentucky is a party to the Phase I
10 Master Settlement Agreement (MSA) between the Participating Tobacco Manufacturers
11 and 46 Settling States which provides reimbursement to states for smoking-related
12 expenditures made over time.
13 (2) State's MSA Share: The Commonwealth’s share of the MSA is equal to
14 1.7611586 percent of the total settlement amount. Payments under the MSA are made to
15 the states annually in April of each year.
16 (3) MSA Payment Amount Variables: The total settlement amount to be
17 distributed on each payment date is subject to change pursuant to several variables
18 provided in the MSA, including inflation adjustments, volume adjustments, previously
19 settled states adjustments, and the nonparticipating manufacturers adjustment.
20 (4) Distinct Identity of MSA Payment Deposits: The General Assembly has
21 determined that it shall be the policy of the Commonwealth that all Phase I Tobacco
22 Settlement payments shall be deposited to the credit of the General Fund and shall
23 maintain a distinct identity as Phase I Tobacco Settlement payments that shall not lapse to
24 the credit of the General Fund surplus but shall continue forward from each fiscal year to
25 the next fiscal year to the extent that any balance is unexpended.
26 (5) MSA Payment Estimates and Adjustments: Based on the official estimates
27 of the Consensus Forecasting Group, the amount of MSA payments expected to be
Page 224 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 received in fiscal year 2026-2027 is $82,800,000 and in fiscal year 2027-2028 is
2 $77,400,000. It is recognized that payments to be received by the Commonwealth are
3 estimated and are subject to change. If MSA payments received are less than the official
4 estimates, appropriation reductions shall be applied as follows: after exempting
5 appropriations for debt service, the Attorney General, and the Department of Revenue, 50
6 percent to the Agricultural Development Fund, 30 percent to the Early Childhood
7 Development Fund, and 20 percent to the Health Care Improvement Fund. If MSA
8 payments received exceed the official estimates, appropriation increases shall be applied
9 as follows: after exempting appropriations for debt service, the Attorney General, and the
10 Department of Revenue, 50 percent to the Agricultural Development Fund, 30 percent to
11 the Early Childhood Development Fund, and 20 percent to the Health Care Improvement
12 Fund.
13 a. Lapse and Reallocation of Early Childhood Development Fund
14 Appropriations: Notwithstanding KRS 194A.055, 200.151, 248.654, and any statute to
15 the contrary, $6,500,000 in General Fund (Tobacco) settlement agreement funds
16 previously appropriated from the Early Childhood Development Fund to the General
17 Administration and Program Support budget unit within the Education and Labor Cabinet
18 for the benefit of the Early Childhood Advisory Council shall lapse to the Tobacco
19 Settlement Agreement Fund established in KRS 248.654.
20 b. State Enforcement: Notwithstanding KRS 248.654 and 248.703(4), a total of
21 $150,000 of the MSA payments in each fiscal year is appropriated to the Attorney
22 General for the state’s diligent enforcement of noncompliant nonparticipating
23 manufacturers.
24 c. State Enforcement: Notwithstanding KRS 248.654 and 248.703(4), a total of
25 $250,000 of the MSA payments in each fiscal year is appropriated to the Finance and
26 Administration Cabinet, Department of Revenue for the state's diligent enforcement of
27 noncompliant nonparticipating manufacturers.
Page 225 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 d. Debt Service: Notwithstanding KRS 248.654 and 248.703(4), $14,100,200 in
2 MSA payments in fiscal year 2026-2027 and $13,880,900 in MSA payments in fiscal
3 year 2027-2028 are appropriated to the Finance and Administration Cabinet, Debt
4 Service budget unit.
5 e. Agricultural Development Initiatives: Notwithstanding KRS 248.654 and
6 248.703(4), $38,086,500 in MSA payments in fiscal year 2026-2027 and $35,197,600 in
7 MSA payments in fiscal year 2027-2028 are appropriated to the Kentucky Agricultural
8 Development Fund to be used for agricultural development initiatives as specified in this
9 Part.
10 f. Early Childhood Development Initiatives: Notwithstanding KRS 248.654,
11 $21,018,100 in MSA payments and lapsed funds from previously appropriated MSA
12 payments in fiscal year 2026-2027 and $19,999,700 in MSA payments and lapsed funds
13 from previously appropriated MSA payments in fiscal year 2027-2028 are appropriated
14 to the Early Childhood Development Initiatives as specified in this Part.
15 g. Health Care Initiatives: Notwithstanding KRS 164.476, 248.654, and
16 304.17B-003(5), $13,570,200 in MSA payments and lapsed funds from previously
17 appropriated MSA payments in fiscal year 2026-2027 and $10,046,800 in MSA
18 payments and lapsed funds from previously appropriated MSA payments in fiscal year
19 2027-2028 are appropriated to the Health Care Improvement Fund for health care
20 initiatives as specified in this Part.
21 A. STATE ENFORCEMENT
22 GENERAL FUND - PHASE I TOBACCO SETTLEMENT FUNDS
23 Notwithstanding KRS 248.654 and 248.703(4), appropriations for state enforcement
24 shall be as follows:
25 1. GENERAL GOVERNMENT
26 Budget Unit 2026-27 2027-28
27 a. Attorney General 150,000 150,000
Page 226 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 2. FINANCE AND ADMINISTRATION CABINET
2 Budget Unit 2026-27 2027-28
3 a. Revenue 250,000 250,000
4 B. DEBT SERVICE
5 GENERAL FUND - PHASE I TOBACCO SETTLEMENT FUNDS
6 Notwithstanding KRS 248.654 and 248.703(4), appropriations for debt service shall
7 be as follows:
8 1. FINANCE AND ADMINISTRATION CABINET
9 Budget Unit 2026-27 2027-28
10 a. Debt Service 14,100,200 13,880,900
11 (1) Debt Service: To the extent that revenues sufficient to support the required
12 debt service appropriations are received from the Tobacco Settlement Program, those
13 revenues shall be made available from those accounts to the appropriate account of the
14 General Fund. All necessary debt service amounts shall be appropriated from the General
15 Fund and shall be fully paid regardless of whether there is a sufficient amount available
16 to be transferred from tobacco-supported funding program accounts to other accounts of
17 the General Fund.
18 (2) Appropriation of Unexpended Tobacco Debt Service: Any unexpended
19 balance from the fiscal year 2026-2027 or fiscal year 2027-2028 General Fund (Tobacco)
20 debt service appropriation in the Finance and Administration Cabinet, Debt Service
21 budget unit, shall continue and be appropriated to the Department of Agriculture,
22 Kentucky Office of Agricultural Policy.
23 C. AGRICULTURAL DEVELOPMENT APPROPRIATIONS
24 GENERAL FUND - PHASE I TOBACCO SETTLEMENT FUNDS
25 Notwithstanding KRS 248.654 and 248.703(4), appropriations for Agricultural
26 Development shall be as follows:
27 1. DEPARTMENT OF AGRICULTURE
Page 227 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Budget Unit 2026-27 2027-28
2 a. Agriculture 35,426,900 32,739,700
3 (1) Tobacco Settlement Funds - Allocations: Notwithstanding KRS 248.711(2),
4 and from the allocation provided therein, counties that are allocated in excess of $20,000
5 annually may provide up to four percent of the individual county allocation, not to exceed
6 $15,000 annually, to the county council in that county for administrative costs.
7 (2) Counties Account: Notwithstanding KRS 248.703(1), included in the above
8 General Fund (Tobacco) appropriation is $11,777,900 in fiscal year 2026-2027 and
9 $10,884,600 in fiscal year 2027-2028 for the counties account as specified in KRS
10 248.703(1)(a).
11 (3) State Account: Notwithstanding KRS 248.703(1), included in the above
12 General Fund (Tobacco) appropriation is $21,876,000 in fiscal year 2026-2027 and
13 $20,216,500 in fiscal year 2027-2028 for the state account as specified in KRS
14 248.703(1)(b).
15 (4) Farms to Food Banks Program: Included in the above General Fund
16 (Tobacco) appropriation is $886,500 in fiscal year 2026-2027 and $819,300 in fiscal year
17 2027-2028 to support the Farms to Food Banks Program. The use of the moneys provided
18 by this appropriation shall be restricted to purchases of Kentucky-grown produce and
19 protein from Kentucky farmers who participate in the Farms to Food Banks Program.
20 (5) Kentucky Rural Mental Health, Suicide Prevention, and Farm Safety
21 Program: Included in the above General Fund (Tobacco) appropriation is $886,500 in
22 fiscal year 2026-2027 and $819,300 in fiscal year 2027-2028 to support the Kentucky
23 Rural Mental Health, Suicide Prevention, and Farm Safety Program known as the Raising
24 Hope Initiative. The Department of Agriculture shall enhance awareness of the National
25 Suicide Prevention Lifeline (988) in rural communities in Kentucky, improve access to
26 information on rural mental health issues and available treatment services, provide
27 outreach, and provide other necessary services to improve the mental health outcomes of
Page 228 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 rural communities in Kentucky. The Farm Safety and Rural Health Division, at its
2 discretion, may receive, accept, and solicit grants, contributions of money, property,
3 labor, or other things of value from any governmental agency, individual, nonprofit
4 organization, or private business to be used for the Kentucky Rural Mental Health,
5 Suicide Prevention, and Farm Safety Program. The Department of Agriculture may
6 utilize up to $150,000 of the appropriation amount in each fiscal year for program
7 administration purposes. The Department of Agriculture shall coordinate with the Raising
8 Hope Initiative to take custody of and maintain any intellectual property assets that were
9 created or developed by any state agency in connection with the Raising Hope Initiative.
10 The Department of Agriculture’s Office of Agricultural Marketing shall submit a
11 comprehensive annual report to the Interim Joint Committee on Appropriations and
12 Revenue and the Tobacco Settlement Agreement Fund Oversight Committee no later
13 than November 1 of each fiscal year. At a minimum, the report shall include:
14 (a) An accounting of all expenditures by fund source;
15 (b) A detailed accounting of all administrative expenses;
16 (c) The total amount expended on grants, loans, and benefits;
17 (d) A detailed accounting of all expenses not otherwise classified;
18 (e) Identification of any unexpended funds and the reason why the funds were not
19 expended; and
20 (f) An explanation of how all expenditures align with program objectives.
21 The Division Director of the Farm Safety and Rural Health Division and the
22 Executive Director of the Kentucky Office of Agricultural Marketing shall provide a
23 program update to the Tobacco Settlement Agreement Fund Oversight Committee in
24 November of each fiscal year.
25 2. ENERGY AND ENVIRONMENT CABINET
26 Budget Unit 2026-27 2027-28
27 a. Natural Resources 2,659,600 2,457,900
Page 229 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (1) Environmental Stewardship Program: Included in the above General Fund
2 (Tobacco) appropriation is $1,773,100 in fiscal year 2026-2027 and $1,638,600 in fiscal
3 year 2027-2028 for the Environmental Stewardship Program.
4 (2) Conservation District Local Aid: Included in the above General Fund
5 (Tobacco) appropriation is $886,500 in fiscal year 2026-2027 and $819,300 in fiscal year
6 2027-2028 for the Division of Conservation to provide direct aid to local conservation
7 districts.
8 TOTAL - AGRICULTURAL 38,086,500 35,197,600
9 APPROPRIATIONS
10 D. EARLY CHILDHOOD DEVELOPMENT
11 GENERAL FUND - PHASE I TOBACCO SETTLEMENT FUNDS
12 Notwithstanding KRS 248.654, appropriations for Early Childhood Development
13 shall be as follows:
14 1. GENERAL GOVERNMENT
15 Budget Unit 2026-27 2027-28
16 a. Auditor of Public Accounts 500,000 -0-
17 (1) Certified Child Care Services Report: Included in the above General Fund
18 (Tobacco) appropriation is $500,000 in fiscal year 2026-2027 to study the applicable
19 statutes, administrative regulations, and agency policies and processes that directly
20 impact the opening and operation of licensed and certified child care services in the
21 Commonwealth. This appropriation is from the lapse and reallocation of Early Childhood
22 Development Fund appropriations.
23 2. EDUCATION AND LABOR CABINET
24 Budget Unit 2026-27 2027-28
25 a. General Administration and Program Support 1,063,800 983,200
26 (1) Early Childhood Development: Included in the above General Fund
27 (Tobacco) appropriation is $1,063,800 in fiscal year 2026-2027 and $983,200 in fiscal
Page 230 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 year 2027-2028 for the Early Childhood Advisory Council.
2 3. CABINET FOR HEALTH AND FAMILY SERVICES
3 Budget Units 2026-27 2027-28
4 a. Community Based Services 10,195,200 9,421,900
5 (1) Early Childhood Development Program: Included in the above General
6 Fund (Tobacco) appropriation is $8,422,100 in fiscal year 2026-2027 and $7,783,300 in
7 fiscal year 2027-2028 for the Early Childhood Development Program.
8 (2) Early Childhood Adoption and Foster Care Supports: Included in the
9 above General Fund (Tobacco) appropriation is $1,773,100 in fiscal year 2026-2027 and
10 $1,638,600 in fiscal year 2027-2028 for the Early Childhood Adoption and Foster Care
11 Supports Program.
12 2026-27 2027-28
13 b. Public Health 7,606,600 7,029,500
14 (1) HANDS Program, Healthy Start, Early Childhood Mental Health, and
15 Early Childhood Oral Health: Included in the above General Fund (Tobacco)
16 appropriation is $5,301,500 in fiscal year 2026-2027 and $4,899,400 in fiscal year 2027-
17 2028 for the Health Access Nurturing Development Services (HANDS) Program,
18 $620,600 in fiscal year 2026-2027 and $573,500 in fiscal year 2027-2028 for Healthy
19 Start initiatives, $620,600 in fiscal year 2026-2027 and $573,500 in fiscal year 2027-
20 2028 for Early Childhood Mental Health, $620,600 in fiscal year 2026-2027 for Early
21 Childhood Oral Health, and $443,300 in fiscal year 2026-2027 and $983,100 in fiscal
22 year 2027-2028 for Lung Cancer Screening.
23 c. Behavioral Health, Developmental and 2026-27 2027-28
24 Intellectual Disabilities Services 1,152,500 1,065,100
25 (1) Substance Abuse Prevention and Treatment: Included in the above
26 General Fund (Tobacco) appropriation is $1,152,500 in fiscal year 2026-2027 and
27 $1,065,100 in fiscal year 2027-2028 for substance abuse prevention and treatment for
Page 231 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 pregnant women with a history of substance abuse problems.
2 4. POSTSECONDARY EDUCATION
3 Budget Unit 2026-27 2027-28
4 a. University of Kentucky 500,000 1,500,000
5 (1) Kindergarten Readiness Program: Included in the above General Fund
6 (Tobacco) appropriation is $500,000 in fiscal year 2026-2027 and $1,500,000 in fiscal
7 year 2027-2028 to establish the Kindergarten Readiness Performance-Based Child-Care
8 Incentive Pilot Program. This appropriation is from the lapse and reallocation of Early
9 Childhood Development Fund appropriations.
10 TOTAL - EARLY CHILDHOOD 21,018,100 19,999,700
11 APPROPRIATIONS
12 E. HEALTH CARE IMPROVEMENT APPROPRIATIONS
13 GENERAL FUND - PHASE I TOBACCO SETTLEMENT FUNDS
14 Notwithstanding KRS 164.476, 248.654 and 304.17B-003(5), appropriations for
15 health care improvement shall be as follows:
16 1. CABINET FOR HEALTH AND FAMILY SERVICES
17 Budget Unit 2026-27 2027-28
18 a. Public Health 1,773,100 1,638,600
19 (1) Smoking Cessation Program: Included in the above General Fund
20 (Tobacco) appropriation is $1,773,100 in fiscal year 2026-2027 and $1,638,600 in fiscal
21 year 2027-2028 for Smoking Cessation.
22 2. JUSTICE AND PUBLIC SAFETY CABINET
23 Budget Unit 2026-27 2027-28
24 a. Justice Administration 2,881,200 2,662,700
25 (1) Office of Drug Control Policy: Included in the above General Fund
26 (Tobacco) appropriation is $2,659,600 in fiscal year 2026-2027 and $2,457,900 in fiscal
27 year 2027-2028 for the Office of Drug Control Policy.
Page 232 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 (2) Restorative Justice: Included in the above General Fund (Tobacco)
2 appropriation is $221,600 in fiscal year 2026-2027 and $204,800 in fiscal year 2027-2028
3 to support the Restorative Justice Program administered by the Volunteers of America.
4 3. POSTSECONDARY EDUCATION
5 Budget Units 2026-27 2027-28
6 a. Council on Postsecondary Education 6,165,900 5,745,500
7 (1) Cancer Research and Screening: Included in the above General Fund
8 (Tobacco) appropriation is $6,165,900 in fiscal year 2026-2027 and $5,745,500 in fiscal
9 year 2027-2028 for cancer research and screening to be shared equally between the
10 University of Kentucky and the University of Louisville. Of these amounts, $625,000 in
11 each fiscal year is from the lapse and reallocation of Early Childhood Development Fund
12 appropriations.
13 b. University of Louisville 2,750,000 -0-
14 (1) Cancer Research: Included in the above General Fund (Tobacco)
15 appropriation is $2,750,000 in fiscal year 2026-2027 to fund cancer research at the
16 Brown Cancer Center. This appropriation is from the lapse and reallocation of Early
17 Childhood Development Fund appropriations.
18 TOTAL - HEALTH CARE 13,570,200 10,046,800
19 TOTAL - PHASE I TOBACCO SETTLEMENT
20 FUNDING PROGRAM 87,175,000 79,525,000
21 PART XI
22 STATE/EXECUTIVE BRANCH BUDGET SUMMARY
23 OPERATING BUDGET
24 2025-26 2026-27 2027-28
25 General Fund (Tobacco) -0- 86,675,000 79,524,900
26 General Fund -0- 15,416,488,000 15,693,139,800
27 Restricted Funds 167,270,800 16,693,897,000 17,383,278,100
Page 233 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in Part
UNOFFICIAL COPY 26 RS HB 500/VO in Part
1 Federal Funds 405,900,000 24,307,745,100 24,118,660,800
2 Road Fund -0- 55,582,600 57,940,100
3 SUBTOTAL 573,170,800 56,560,387,700 57,332,543,700
4 CAPITAL PROJECTS BUDGET
5 2025-26 2026-27 2027-28
6 Restricted Funds -0- 20,064,946,000 89,901,000
7 Federal Funds -0- 770,334,000 50,915,000
8 Bond Funds -0- 1,033,161,000 387,474,000
9 Agency Bonds -0- 1,250,800,000 -0-
10 Investment Income -0- 183,324,000 105,633,000
11 Other Funds 350,000,000 9,427,800,000 200,000,000
12 SUBTOTAL 350,000,000 32,730,365,000 833,923,000
13 TOTAL - STATE/EXECUTIVE BUDGET
14 2025-26 2026-27 2027-28
15 General Fund (Tobacco) -0- 86,675,000 79,524,900
16 General Fund -0- 15,416,488,000 15,693,139,800
17 Restricted Funds 167,270,800 36,758,843,000 17,473,179,100
18 Federal Funds 405,900,000 25,078,079,100 24,169,575,800
19 Road Fund -0- 55,582,600 57,940,100
20 Bond Funds -0- 1,033,161,000 387,474,000
21 Agency Bonds -0- 1,250,800,000 -0-
22 Investment Income -0- 183,324,000 105,633,000
23 Other Funds 350,000,000 9,427,800,000 200,000,000
24 TOTAL FUNDS 923,170,800 89,290,752,700 58,166,466,700
Page 234 of 234
HB050090.100 - 1374 - XXXX 4/14/2026 4:17 PM Vetoed in Part and Overridden in PartEvery fact on this page links to its source, starting with the official bill record.