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.
UNOFFICIAL COPY 26 RS SB 197/EN
1 AN ACT providing funding and establishing conditions for state government
2 agencies and institutions, making an appropriation therefor, and declaring an emergency.
3 Be it enacted by the General Assembly of the Commonwealth of Kentucky:
4 Section 1. 2026 Regular Session HB 500/VO in Part, Part I, A., 6., (2) Disaster
5 or Emergency Aid Funds, at page 7, is amended to read as follows:
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 Notwithstanding any statute to the contrary, the Kentucky Division of Emergency
14 Management shall have the authority to condemn the current Estill County Middle
15 School and may request from the Finance and Administration Cabinet, as a necessary
16 government expense, up to $10,000,000 in fiscal year 2026-2027 from the General
17 Fund, to be expended, subject to the conditions and procedures provided in this Act, for
18 the relocation of affected students and the construction of temporary shelters to be
19 used for instructional purposes.
20 All moneys reimbursed to the state by the Federal Emergency Management
21 Agency (FEMA) for eligible disaster-related expenditures shall be deposited into the
22 Budget Reserve Trust Fund Account (KRS 48.705). The first $26,700,000 of any
23 reimbursements received shall be distributed to the School Facilities Construction
24 Commission to be distributed to the Perry County School Board to support replacement
25 of Robinson Elementary School, subject to verification of eligibility of Federal
26 Emergency Management Agency (FEMA) by the State Budget Director before the
27 disbursement of funds.
Page 1 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 The Commonwealth shall seek reimbursement from the Federal Emergency
2 Management Agency (FEMA) for all eligible costs to the maximum extent allowable
3 under federal disaster assistance guidelines, and the local district shall cooperate fully
4 in providing documentation necessary to support such reimbursement. Any
5 reimbursement received from FEMA moneys shall be remitted to and retained by the
6 Commonwealth of Kentucky.
7 [All moneys reimbursed to the state by the Federal Emergency Management
8 Agency (FEMA) for eligible disaster-related expenditures shall be deposited into the
9 Budget Reserve Trust Fund Account (KRS 48.705).]
10 The Department of Military Affairs shall provide a comprehensive list of
11 anticipated FEMA reimbursements to counties eligible for disaster-related expenditures
12 to the Interim Joint Committee on Appropriations and Revenue by June 1, 2026.
13 Section 2. 2026 Regular Session HB 500/VO in Part, Part I, B., 1. Economic
14 Development, at pages 37 to 39, is amended to read as follows;
15 (1) Funding for Commercialization and Innovation: Notwithstanding KRS
16 154.12-278, interest income earned on the balances in the High-Tech
17 Construction/Investment Pool and loan repayments received by the High-Tech
18 Construction/Investment Pool shall be used to support the Office of Entrepreneurship and
19 are appropriated in addition to amounts appropriated above.
20 (2) Lapse and Carry Forward of General Fund Appropriation Balance for
21 Bluegrass State Skills Corporation: Notwithstanding KRS 45.229, the General Fund
22 appropriation balance for Bluegrass State Skills Corporation training grants for fiscal
23 year 2025-2026 and fiscal year 2026-2027 shall not lapse and shall carry forward. The
24 amount available to the Corporation for disbursement in each fiscal year shall be limited
25 to the unexpended training grant allotment balance at the end of each fiscal year
26 combined with the additional training grant allotment amounts in each fiscal year of the
27 2026-2028 fiscal biennium, less any disbursements. If the required disbursements exceed
Page 2 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 the Bluegrass State Skills Corporation training grants allotment balance, notwithstanding
2 KRS 154.12-278, Restricted Funds may be expended for training grants.
3 (3) Science and Technology Program: Notwithstanding KRS 164.6011 to
4 164.6035 and any other statute to the contrary, the Cabinet for Economic Development
5 shall have the authority to carry out the provisions of KRS 164.6013 to 164.6035.
6 (4) Carry Forward of General Fund Appropriation Balance: Notwithstanding
7 KRS 45.229, the General Fund appropriation in fiscal year 2025-2026 and fiscal year
8 2026-2027 to the Cabinet for Economic Development, Science and Technology Program,
9 shall not lapse and shall carry forward in the Cabinet for Economic Development.
10 (5) Executive Officers' Compensation: Notwithstanding KRS 154.10-050(2),
11 any additional executive officers as described in KRS 154.10-050(2) shall not be paid a
12 salary greater than the salary of the Governor of the Commonwealth.
13 (6) Training Grants: Included in the above General Fund appropriation is
14 $2,400,000 in fiscal year 2026-2027 and $2,325,000 in fiscal year 2027-2028 for the
15 Bluegrass State Skills Corporation to make training grants to support manufacturing-
16 related investments. The Corporation shall utilize these funds for a manufacturer
17 designated by the United States Department of Commerce, United States Census Bureau
18 North American Industry Classification System code of 336111, 336112, 336120, or
19 336211 that employs at least 10,000 full-time persons at the same facility or at multiple
20 facilities located within the same county to help offset associated costs of retraining its
21 workforce. Notwithstanding KRS 45.229, the General Fund appropriation balance for
22 Bluegrass State Skills Corporation training grants for fiscal year 2025-2026 and fiscal
23 year 2026-2027 shall not lapse and shall carry forward.
24 (7) Kentucky Product Development Initiative: Notwithstanding KRS 45.229,
25 the balance of the General Fund appropriation authorized in 2022 Ky. Acts ch. 199, Part
26 I, B., 1., (12) shall not lapse and shall carry forward.
27 (8) KEDFA Forgivable Loan-Carry Forward of Appropriation Balance:
Page 3 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 Notwithstanding KRS 45.229, the balance of the General Fund appropriation authorized
2 in 2022 Ky. Acts ch. 199, Part I, B., 1., (11) shall not lapse and shall carry forward.
3 (9) Agricultural Economic Development: In accordance with KRS Chapter
4 154, the Secretary of the Cabinet for Economic Development shall coordinate with and
5 seek guidance from the Commissioner of the Department of Agriculture in considering
6 any projects for economic incentives related to agricultural economic development,
7 agribusiness, or production facilities of sustainable aviation fuel.
8 (10) State Trade and Export Promotion: Included in the above Federal Funds
9 appropriation is $135,000 in fiscal year 2026-2027 and $100,000 in fiscal year 2027-2028
10 to expand the federal State Trade and Export Promotion (STEP) program.
11 [(11) Certified Child Care Community Designation Program: Included in the
12 above appropriations is sufficient funding to implement and carry out the provisions of
13 2024 Ky. Acts ch. 88.]
14 (11)[(12)] Financial Assistance Program for Nuclear Energy-Related Projects:
15 Included in the above appropriations is sufficient funding to implement and carry out the
16 provisions of 2024 Ky. Acts ch. 169.
17 (12)[(13)] Pilot Tax Increment Financing Program: Included in the above
18 appropriations is sufficient funding to implement and carry out the provisions of 2025
19 Ky. Acts ch. 98.
20 (13)[(14)] Kentucky Film Office: Included in the above Restricted Funds
21 appropriation is $500,000 in each fiscal year to support staff and operational costs for the
22 Kentucky Film Office. Notwithstanding KRS 142.406, for fiscal year 2027-2028, 2.5% of
23 the transient room tax collected pursuant to KRS 142.400 up to a maximum amount of
24 $500,000 shall be transferred to the Kentucky Film Office.
25 Section 3. 2026 Regular Session HB 500/VO in Part, Part I, C., 2. Operations
26 and Support Services, at pages 48 to 51, is amended to read as follows:
27 (1) Advanced Placement and International Baccalaureate Exams:
Page 4 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 Notwithstanding KRS 160.348(3), included in the above General Fund appropriation is
2 $960,000 in fiscal year 2026-2027 and $930,000 in fiscal year 2027-2028 to pay the cost
3 of Advanced Placement and International Baccalaureate examinations for those students
4 who meet the eligibility requirements for free or reduced-price meals.
5 (2) Employee Reporting: The Kentucky Department of Education shall provide
6 a report by August 1 of each year to the Interim Joint Committee on Appropriations and
7 Revenue. At a minimum, the report shall include:
8 (a) A count and list, by name, of all full-time, part-time, and interim employees
9 employed under KRS Chapter 18A;
10 (b) A count and list, by name, of all contract employees;
11 (c) The position title, Kentucky Department of Education office served, and
12 primary work location of every employee;
13 (d) The employees’ level of compensation, on an annualized basis, including the
14 percentage of all fund sources used to compensate the employee; and
15 (e) For contract employees, the start and end date of the relevant contract, as well
16 as the name of any entity involved in administering the contract.
17 (3) Certified and Classified Staff Compensation Increase Reporting: The
18 Kentucky Department of Education shall provide a report by September 1 of each year to
19 the Interim Joint Committee on Appropriations and Revenue detailing certified and
20 classified staff compensation increases for the current school year by each local school
21 district. At a minimum, the report shall include:
22 (a) A brief description of the type of staff compensation increases adopted, such
23 as percentage-based or flat rate, if applicable;
24 (b) The average percentage rate or dollar amount of the compensation increases,
25 by classification, if applicable;
26 (c) The effective date of the compensation increases, if applicable;
27 (d) The manner in which the compensation increases were delineated, such as
Page 5 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 universally or by job classification, if applicable;
2 (e) Any monetary compensation in addition to that provided through the district’s
3 single salary schedule, such as one-time payments, if applicable;
4 (f) The date the local board of education adopted the compensation increases, if
5 applicable; and
6 (g) Any changes to the local school district’s certified and/or classified staff
7 single salary schedule(s), if applicable.
8 (4) Blind/Deaf Residential Travel Program: Included in the above General
9 Fund appropriation is $472,600 in fiscal year 2026-2027 and $457,800 in fiscal year
10 2027-2028 for the Blind/Deaf Residential Travel Program.
11 (5) Educators Employment Liability Insurance Program: Included in the
12 above General Fund appropriation is $4,800,000 in fiscal year 2026-2027 and $4,650,000
13 in fiscal year 2027-2028 to support the educators employment liability insurance program
14 pursuant to KRS 161.212.
15 (6) School and Community Nutrition Programs: Included in the above Federal
16 Funds appropriation is an additional $100,181,200 in each fiscal year to support increased
17 spending on school and community nutrition programs.
18 (7) Special Examination: Included in the above appropriations is sufficient
19 funding to implement and carry out the provisions of 2024 Ky. Acts ch. 118.
20 (8) Local School District Insurance Coverage Report: The Kentucky
21 Department of Education shall submit a report detailing each local school district’s
22 insurance coverage to the Department of Insurance no later than October 1, 2026. The
23 report shall at a minimum include, for each district, the insurer and level of insurance
24 coverage, as required under 702 KAR 3:030.
25 (9) School District Project and Indebtedness Report: The Kentucky
26 Department of Education, with assistance from the School Facilities Construction
27 Commission, shall compile and submit a report to the Interim Joint Committee on
Page 6 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 Appropriations and Revenue by June 30, 2027. The report shall be submitted in a format
2 set forth by the Legislative Research Commission and shall include, at a minimum, a list
3 of every local school district’s existing bonded projects, the date and amount of any
4 additional tax levy enacted by a school board for each project, any equalization
5 provisions provided for each project, the total amount of debt service payments made by
6 each district, and the amount of debt service remaining and anticipated retirement dates
7 of the debt service associated with each project.
8 (10) Employment of Leadership Personnel: Notwithstanding KRS 18A.005 to
9 18A.200, the Kentucky Board of Education shall continue to have sole authority to
10 determine the employees of the Department of Education who are exempt from the
11 classified service and to set those employees' compensation comparable to the
12 competitive market.
13 Section 4. 2026 Regular Session HB 500/VO in Part, Part I, C., 3. Learning and
14 Results Services, at pages 51 to 55, is amended to read as follows:
15 (1) Kentucky Education Technology System: Notwithstanding KRS 157.650 to
16 157.665, the School for the Deaf and the School for the Blind shall be fully eligible,
17 along with local school districts, to participate in the Kentucky Education Technology
18 System in a manner that takes into account the special needs of the students of these two
19 schools.
20 (2) Family Resource and Youth Services Centers: Funds appropriated to
21 establish and support Family Resource and Youth Services Centers shall be transferred in
22 each fiscal year to the Cabinet for Health and Family Services consistent with KRS
23 156.496. The Cabinet for Health and Family Services is authorized to use, for
24 administrative purposes, no more than two percent of the total funds transferred from the
25 Department of Education for the Family Resource and Youth Services Centers. If a
26 certified person is employed as a director or coordinator of a Family Resource and Youth
27 Services Center, that person shall retain his or her status as a certified employee of the
Page 7 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 school district.
2 (3) Health Insurance: Included in the above General Fund appropriation is
3 $1,076,821,500 in fiscal year 2026-2027 and $1,277,823,800 in fiscal year 2027-2028 for
4 employer contributions for health insurance and the contribution to the health
5 reimbursement account for employees waiving coverage. Notwithstanding KRS 45.229,
6 General Fund in the amount of $98,310,700 in fiscal year 2025-2026 shall not lapse and
7 shall carry forward into fiscal year 2026-2027.
8 (4) Program Flexibility: Notwithstanding KRS 158.070(8) and 158.446, local
9 school districts shall be provided additional flexibility in the utilization of funds for
10 Extended School Services and Safe Schools. Local school districts shall continue to
11 address the governing statutes and serve the intended student population but may utilize
12 funds from these programs for general operating expenses in each year of the fiscal
13 biennium. Local school districts that utilize these funds for general operating expenses
14 shall report to the Kentucky Department of Education and the Interim Joint Committee
15 on Education the amount of funding from each program utilized for general operating
16 expenses.
17 (5) Center for School Safety: Included in the above General Fund appropriation
18 is $15,000,000 in each fiscal year for the Center for School Safety. Notwithstanding KRS
19 158.446, the Center for School Safety shall allot these moneys for the purposes described
20 in KRS 158.440, 158.441, 158.4415, 158.4416, 158.442, 158.445, and 158.446 at both
21 public and private school buildings, campuses, grounds, recreational areas, or athletic
22 fields, except that no more than $2,000,000 in each fiscal year may be retained for
23 operating and administrative purposes.
24 (6) Allocations to School-Based Decision Making Councils: Notwithstanding
25 KRS 160.345(8), for each fiscal year, a local board of education may reduce the
26 allocations to individual schools within the district as outlined in 702 KAR 3:246, secs. 6,
27 7, and 8. The allocation under 702 KAR 3:246, sec. 6 shall not be less than $100 per
Page 8 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 pupil in average daily attendance.
2 (7) Kentucky School for the Blind and Kentucky School for the Deaf:
3 Included in the above General Fund appropriation is $8,289,100 in each fiscal year for
4 the Kentucky School for the Blind and $11,291,800 in each fiscal year for the Kentucky
5 School for the Deaf.
6 (8) Career and Technical Education: Included in the above General Fund
7 appropriation is $127,115,900 in each fiscal year for career and technical education. Of
8 this amount, $70,063,400 in each fiscal year shall be distributed as supplemental funding
9 to support qualifying locally operated career and technical education centers, state-
10 operated area technology centers, and programs based on enrollment and incentive
11 criteria, pursuant to KRS 157.069.
12 The General Assembly recognizes that supplemental funding for locally operated
13 career and technical education centers and state-operated area technology centers is
14 recurring, and it is the intent of the 2026 General Assembly to evaluate those funding
15 needs before January 1, 2028.
16 (9) Redistribution of Resources: Notwithstanding KRS 156.095, 156.553,
17 156.555, 157.390, 158.070, 158.770, 158.775, 158.805, 161.027, 161.028, 161.030,
18 161.165, and 161.167, no General Fund is provided for the Professional Development
19 Program, the Commonwealth School Improvement Fund, the Leadership and Mentor
20 Fund, the Middle School Academic Center, the Teacher's Professional Growth Fund, the
21 Teacher Academies Program, the Writing Program, the Kentucky Principal Internship
22 Program, the Kentucky Teacher Internship Program, and the Kentucky Academy for
23 Equity in Teaching in order to increase funding for school-based mental health services
24 providers.
25 (10) Learning and Results Services Programs: Included in the above General
26 Fund appropriation are the following allocations for the 2026-2028 fiscal biennium, but
27 no portion of these funds shall be utilized for state-level administrative purposes:
Page 9 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 (a) $1,900,000 in each fiscal year for AdvanceKentucky;
2 (b) $1,850,000 in each fiscal year for the Community Education Program;
3 (c) $3,000,000 in each fiscal year for Dataseam;
4 (d) $23,916,300 in each fiscal year for the Extended School Services Program;
5 (e) $48,889,000 in each fiscal year for the Family Resource and Youth Services
6 Centers Program;
7 (f) $10,000,000 in each fiscal year for the Gifted and Talented Program;
8 (g) $100,000 in each fiscal year for the Hearing and Speech Center;
9 (h) $100,000 in each fiscal year for the Heuser Hearing and Language Academy;
10 (i) Notwithstanding KRS 154A.130(4), $1,675,500 in each fiscal year for the
11 Jobs for America’s Graduates Program;
12 (j) $500,000 in each fiscal year for the Kentucky Alliance of Boys & Girls Clubs;
13 (k) $12,500,000 in each fiscal year for the Kentucky Educational Collaborative
14 for State Agency Children;
15 (l) $1,391,000 in each fiscal year for Local School District Life Insurance;
16 (m) $1,000,000 in each fiscal year for Math Nation;
17 (n) $5,019,000 in each fiscal year for the Mathematics Achievement Fund;
18 (o) $84,481,100 in each fiscal year for the Preschool Program;
19 (p) $12,261,100 in each fiscal year for the Read to Achieve Program.
20 Notwithstanding KRS 154A.130(3)(b), included in the above appropriation is $1,124,500
21 from lottery proceeds;
22 (q) $11,000,000 in each fiscal year for the Read to Succeed Program;
23 (r) $2,000,000 in each fiscal year for Save the Children;
24 (s) $1,200,000 in each fiscal year for the Statewide Reading Research Center;
25 (t) $700,000 in each fiscal year for Teach for America. Teach for America shall
26 submit a report on the outcomes of the program to the Interim Joint Committee on
27 Education by August 1, 2027;
Page 10 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 (u) $500,000 in each fiscal year for the Visually Impaired Preschool Services
2 Program; and
3 (v) $1,500,000 in each fiscal year for We Lead CS.
4 It is the intent of the 2026 General Assembly to reevaluate each Learning and
5 Results Services Program, both individually and collectively, to optimize funding and
6 support for Kentucky students.
7 (11) School-Based Mental Health Services Providers: Included in the above
8 General Fund appropriation is $7,412,500 in each fiscal year to fund school-based mental
9 health services provider full-time equivalent positions on a reimbursement basis. The
10 Kentucky Center for School Safety, in consultation with the Office of the State School
11 Security Marshal, shall develop criteria to determine which districts shall receive funding
12 to meet the requirements of KRS 158.4416(3)(a). The criteria shall include:
13 (a) A local district’s use of Medicaid funding to supplement General Fund;
14 (b) An equitable and balanced statewide distribution; and
15 (c) Any other criteria to support a trauma-informed approach in schools.
16 (12) School Resource Officers: Included in the above appropriations is
17 $11,500,000 in General Fund and $11,500,000 in Restricted Funds in each fiscal year to
18 assist local school districts and nonpublic schools in funding salaries for school resource
19 officers. The Kentucky Department of Education shall reimburse local school districts
20 and nonpublic schools up to $20,000 for each full-time certified school resource officer.
21 Notwithstanding KRS 15.430 and 15.470, excess Restricted Funds from the Department
22 of Criminal Justice Training shall be transferred to the Kentucky Department of
23 Education for this purpose.
24 (13) Federal Remedial Education Grants: It is the intent of the 2026 General
25 Assembly that the Kentucky Department of Education shall apply for all federal grants
26 available for remedial education.
27 (14) Principal Leadership Development Practicum: Included in the above
Page 11 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 General Fund appropriation is a one-time allocation of $1,000,000 in each fiscal year to
2 support a new program, overseen by the Kentucky Department of Education, to develop
3 and mentor new school principals.
4 (15) College Entrance Exam: No General Funds provided to the Kentucky
5 Department of Education shall be used for any contract that does not meet Kentucky
6 Academic Standards and the Accountability and Assessment provisions outlined in
7 KRS 158.645, 158.6451, 158.6453, 158.6455, 158.649, and 160.346 and applicable
8 federal statutes. The Kentucky Department of Education shall initiate a new
9 competitive procurement process and shall award a contract only to a vendor or
10 vendors whose assessment product satisfies all applicable state and federal statutory
11 requirements for accountability and assessment purposes to be in place for the 2026-
12 2027 school year.
13 Section 5. 2026 Regular Session HB 500/VO in Part, Part I, D., 1. General
14 Administration and Program Support, at pages 56 to 57, is amended to read as follows:
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 12 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
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 (5) Governor's School for Entrepreneurs: Included in the above General Fund
6 appropriation is $960,000 in fiscal year 2026-2027 and $930,000 in fiscal year 2027-
7 2028 for the Governor’s School for Entrepreneurs.
8 Section 6. 2026 Regular Session HB 500/VO in Part, Part I, E., 4., (1)
9 Emergency Forest Fire Suppression, at pages 62 to 63, is amended to read as follows:
10 (1) Emergency Forest Fire Suppression: Not less than $2,500,000 of the above
11 General Fund appropriation in each fiscal year shall be set aside for emergency forest fire
12 suppression. Notwithstanding KRS 45.229, any portion of the $2,500,000 not expended
13 for emergency forest fire suppression shall lapse to the Budget Reserve Trust Fund
14 Account (KRS 48.705) at the end of each fiscal year. There is appropriated from the
15 General Fund the necessary funds, subject to the conditions and procedures provided in
16 this Act, which are required as a result of emergency fire suppression activities in excess
17 of $2,500,000 in each fiscal year. Fire suppression costs in excess of $2,500,000 annually
18 shall be deemed necessary government expenses and shall be paid, up to $4,838,300 in
19 fiscal year 2025-2026 and $4,000,000 in each fiscal year of the 2026-2028 fiscal
20 biennium, from the General Fund Surplus Account (KRS 48.700) or the Budget Reserve
21 Trust Fund Account (KRS 48.705).
22 Section 7. 2026 Regular Session HB 500/VO in Part, Part I, F. Finance and
23 Administration Cabinet, at pages 64 to 69, is amended to read as follows:
24 F. FINANCE AND ADMINISTRATION CABINET
25 Budget Units
26 1. GENERAL ADMINISTRATION
27 2026-27 2027-28
Page 13 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 General Fund 9,803,700 13,468,900
2 Restricted Funds 45,074,400 41,161,500
3 TOTAL 54,878,100 54,630,400
4 (1) Kentucky Affordable Prepaid Tuition Trust Fund: Included in the above
5 General Fund appropriation is $5,100,000 in fiscal year 2026-2027 and $5,600,000 in
6 fiscal year 2027-2028 to support projected tuition payments and refunds through fiscal
7 year 2025-2026.
8 2. CONTROLLER
9 2026-27 2027-28
10 General Fund 4,216,900 5,378,100
11 Restricted Funds 19,672,600 18,109,700
12 TOTAL 23,889,500 23,487,800
13 (1) Social Security Contingent Liability Fund: Any expenditures that may be
14 required by KRS 61.470 are hereby deemed necessary government expenses and shall be
15 paid first from the General Fund Surplus Account (KRS 48.700), if available, or from any
16 available balance in the Budget Reserve Trust Fund Account (KRS 48.705), subject to
17 the conditions and procedures provided in this Act.
18 (2) Controller Operations: Notwithstanding KRS 61.470, included in the above
19 Restricted Funds appropriations is $560,000 in fiscal year 2026-2027 and $140,000 in
20 fiscal year 2027-2028 to support the operations of the Office of the Controller.
21 3. DEBT SERVICE
22 2026-27 2027-28
23 General Fund (Tobacco) 14,100,200 13,880,800
24 General Fund 579,907,900 781,499,900
25 [596,104,400] [816,242,400]
26 TOTAL 594,008,100 795,380,700
27 [610,204,600] [830,123,200]
Page 14 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 (1) Kentucky State Police Two-Way Radio Debt Service: Notwithstanding
2 KRS 150.021(2), the Department of Fish and Wildlife Resources shall transfer $599,200
3 in each fiscal year to the Finance and Administration Cabinet to partially support debt
4 service on the Kentucky State Police Two-Way Radio System project.
5 (2) Debt Service: Included in the above General Fund appropriation is
6 $26,186,500[$42,383,000] in fiscal year 2026-2027 and $69,081,500[$103,824,000] in
7 fiscal year 2027-2028 for new debt service to support new bonds as set forth in Part II,
8 Capital Projects Budget, of this Act.
9 (3) Carry Forward of General Fund Appropriation Balance: Notwithstanding
10 KRS 45.229 and 48.720, General Fund in the amount of $18,500,000 in fiscal year 2025-
11 2026 shall not lapse and shall carry forward into fiscal year 2026-2027.
12 (4) Use of Restricted Funds for Debt Service: Notwithstanding KRS
13 218B.080(3), $12,000,000 in each fiscal year; notwithstanding KRS 286.1-485(3),
14 $9,000,000 in each fiscal year; notwithstanding KRS 42.4582, $6,500,000 in each fiscal
15 year; notwithstanding KRS 243.025(3), $6,000,000 in each fiscal year; and
16 notwithstanding KRS 14.140, $5,000,000 in each fiscal year, are hereby transferred to the
17 Debt Service Fund to be used to pay debt service on General Fund supported bonds
18 previously issued by the Commonwealth.
19 4. FACILITIES AND SUPPORT SERVICES
20 2026-27 2027-28
21 General Fund 9,100,200 9,000,500
22 Restricted Funds 57,654,700 57,117,600
23 TOTAL 66,754,900 66,118,100
24 (1) Capitol Annex Renovation: Notwithstanding KRS 42.425 and any statute to
25 the contrary, the administration and management of the Capitol Annex Renovation
26 project authorized in 2024 Ky. Acts ch. 175, Part II, F., 2., 009. shall be approved by the
27 Director of the Legislative Research Commission or his designee.
Page 15 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 5. COUNTY COSTS
2 2026-27 2027-28
3 General Fund 29,243,500 29,243,500
4 Restricted Funds 1,702,500 1,702,500
5 TOTAL 30,946,000 30,946,000
6 (1) County Costs: Funds required to pay county costs are appropriated and
7 additional funds may be allotted from the General Fund Surplus Account (KRS 48.700)
8 or the Budget Reserve Trust Fund Account (KRS 48.705) by the Secretary of the Finance
9 and Administration Cabinet, subject to the conditions and procedures provided in this
10 Act.
11 (2) Reimbursement to Sheriffs’ Offices for Court Security Services:
12 Notwithstanding KRS 64.092(6), the sheriff or other law enforcement officer serving a
13 Circuit or District Court shall be compensated at the rate of $15 per hour of service. To
14 be eligible for this enhanced rate, deputies providing services must be paid at least $10
15 per hour.
16 6. COMMONWEALTH OFFICE OF TECHNOLOGY
17 2026-27 2027-28
18 Restricted Funds 136,597,800 134,398,500
19 Federal Funds 1,716,600 1,716,600
20 TOTAL 138,314,400 136,115,100
21 (1) Computer Services Fund Receipts: The Secretary of the Finance and
22 Administration Cabinet shall provide a listing of fee receipts from the Executive, Judicial,
23 and Legislative Branches of government itemized by appropriation units, cost allocation
24 methodology, and a report detailing the rebate of excess fee receipts to the agencies to the
25 Interim Joint Committee on Appropriations and Revenue by August 1 of each fiscal year.
26 (2) Legacy Modernization: The Commonwealth Office of Technology shall
27 prepare a report for the Legacy Modernization capital project authorized in 2024 Ky.
Page 16 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 Acts ch. 175, Part II, F., 3., 001. The report shall include a list of legacy IT systems that
2 have been completed, the date in which they were completed, the state agency the IT
3 system was for, and a status report for the completion percentage of all other ongoing
4 modernization projects. This report shall be submitted to the Interim Joint Committee on
5 Appropriations and Revenue by October 31 of each fiscal year.
6 (3) Security Enhancements: Included in the above Restricted Funds
7 appropriation is $625,800 in fiscal year 2026-2027 and $1,719,100 in fiscal year 2027-
8 2028 to support security enhancements in key areas such as email integrity, data
9 classification, directory resilience, and incident response and training.
10 (4) Centralized Registry of Artificial Intelligence Systems: Included in the
11 above appropriations is sufficient funding to implement and carry out the provisions of
12 2025 Ky. Acts ch. 66.
13 7. REVENUE
14 2026-27 2027-28
15 General Fund (Tobacco) 250,000 250,000
16 General Fund 123,420,800 125,474,400
17 Restricted Funds 12,448,900 12,448,900
18 Federal Funds 50,000 50,000
19 TOTAL 136,169,700 138,223,300
20 (1) Operations of Revenue: Notwithstanding KRS 132.672, 134.552(2),
21 136.652, and 365.390(2), funds may be expended in support of the operations of the
22 Department of Revenue.
23 (2) State Enforcement: Notwithstanding KRS 248.654 and 248.703(4), a total of
24 $250,000 of the Tobacco Settlement payments received in each fiscal year is appropriated
25 to the Finance and Administration Cabinet, Department of Revenue, for the state's
26 diligent enforcement of noncompliant nonparticipating manufacturers.
27 8. PROPERTY VALUATION ADMINISTRATORS
Page 17 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 2026-27 2027-28
2 General Fund 64,978,600 64,663,500
3 Restricted Funds 4,786,400 4,786,000
4 TOTAL 69,765,000 69,449,500
5 (1) Management of Expenditures: Notwithstanding KRS 132.590 and 132.597,
6 the property valuation administrators are authorized to take necessary actions to manage
7 expenditures within the appropriated amounts contained in this Act.
8 (2) Salary Increment: Notwithstanding KRS 132.590(3)(b), the increment
9 provided on the base salary or wages of each eligible property valuation administrator
10 shall be the same as that provided for eligible state employees in Part IV of this Act. The
11 placement and advancement on the proper step of the salary schedule for property
12 valuation administrators as set forth in 132.590(2) shall continue to apply. The increment
13 changes should be applied to the salary schedule for property valuation administrators for
14 the duration of this biennial budget.
15 TOTAL - FINANCE AND ADMINISTRATION CABINET
16 2026-27 2027-28
17 General Fund (Tobacco) 14,350,200 14,130,800
18 General Fund 820,671,600 1,028,728,800
19 [836,868,100] [1,063,471,300]
20 Restricted Funds 277,937,300 269,724,700
21 Federal Funds 1,766,600 1,766,600
22 TOTAL 1,114,725,700 1,314,350,900
23 [1,130,922,200] [1,349,093,400]
24 Section 8. 2026 Regular Session HB 500/VO in Part, Part I, G., 6. Community
25 Based Services, at pages 84 to 90, is amended to read as follows:
26 (1) Tobacco Settlement Funds: Included in the above General Fund (Tobacco)
27 appropriation is $8,422,100 in fiscal year 2026-2027 and $7,783,300 in fiscal year 2027-
Page 18 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 2028 for the Early Childhood Development Program and $1,773,100 in fiscal year 2026-
2 2027 and $1,638,600 in fiscal year 2027-2028 for the Early Childhood Adoption and
3 Foster Care Supports Program.
4 (2) Fostering Success: Included in the above General Fund appropriation is
5 $480,000 in fiscal year 2026-2027 and $465,000 in fiscal year 2027-2028 to support the
6 Fostering Success Program.
7 (3) Dually Licensed Pediatric Facilities: Included in the above General Fund
8 appropriation is $528,000 in fiscal year 2026-2027 and $511,500 in fiscal year 2027-2028
9 to provide supplemental payments to dually licensed pediatric facilities for emergency
10 shelter services for children.
11 (4) Child Care Assistance Program: Included in the above General Fund
12 appropriation is $10,176,000 in fiscal year 2026-2027 and $9,858,000 in fiscal year 2027-
13 2028 to provide services to families at or below 160 percent of the federal poverty level
14 as determined annually by the U.S. Department of Health and Human Services. The
15 Cabinet for Health and Family Services shall submit a report to the Interim Joint
16 Committee on Appropriations and Revenue no later than November 1, 2026, detailing
17 payment timelines to child care providers participating in the Child Care Assistance
18 Program. The report shall include, but not be limited to the average number of calendar
19 days between the receipt of a completed claim and the issuance of payment to the
20 provider; the total number of claims where payment was beyond 30 days from the date of
21 submission; and a detailed justification for any claims exceeding the 30-day threshold,
22 categorized by administrative, technical, or investigative delays.
23 (5) Personal Care Homes: Included in the above General Fund appropriation is
24 $12,000,000 in each fiscal year to support reimbursements provided to personal care
25 homes.
26 (6) Children's Services Contractors: Notwithstanding KRS Chapter 45A, no
27 contracts awarded for the use and benefit of the Department for Community Based
Page 19 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 Services shall interfere with the contractor’s freedom of religion as set forth in KRS
2 446.350. Any such contracts shall contain a provision allowing a contractor to allow a
3 substitute contractor who is also licensed or approved by the Cabinet to deliver the
4 contracted services if the contractor cannot perform a contracted service because of
5 sincerely held religious beliefs as outlined in KRS 446.350.
6 (7) Victims Advocacy Programs: Included in the above General Fund
7 appropriation is $10,557,700 in each fiscal year for the Children's Advocacy Centers,
8 $13,912,700 in each fiscal year for the Domestic Violence Shelters, and $7,776,100 in
9 each fiscal year for the Rape Crisis Centers to support operational costs.
10 (8) Employee Child Care Assistance Partnership: Included in the above
11 General Fund appropriation is $1,000,000 in each fiscal year to support the Employee
12 Child Care Assistance Partnership for matching contributions. There shall be a two
13 percent cap on administrative costs for the oversight of this program. Notwithstanding
14 KRS 45.229, any General Fund amounts appropriated for matching contributions in fiscal
15 year 2025-2026 and fiscal year 2026-2027 shall not lapse and shall carry forward.
16 (9) Volunteers of America - Family Recovery Court: Included in the above
17 General Fund appropriation is $480,000 in fiscal year 2026-2027 and $465,000 in fiscal
18 year 2027-2028 to support the operations of the Volunteers of America - Family
19 Recovery Court.
20 (10) Family Scholar House: Included in the above General Fund appropriation is
21 $960,000 in fiscal year 2026-2027 and $930,000 in fiscal year 2027-2028 to support the
22 operations of the Family Scholar House.
23 (11) Maryhurst: Included in the above General Fund appropriation is $1,350,000
24 in each fiscal year to provide a reimbursement rate increase for children in the 5
25 Specialized Programs.
26 (12) Foster Care Independent Living: Included in the above General Fund
27 appropriation is $1,920,000 in fiscal year 2026-2027 and $1,860,000 in fiscal year 2027-
Page 20 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 2028 for independent living supports to children aging out of the foster care system.
2 (13) Child Care Assistance Program (CCAP) Initiatives: Included in the above
3 General Fund appropriation is $18,680,000 in fiscal year 2026-2027 and $18,065,000 in
4 fiscal year 2027-2028 to support the CCAP initiative.
5 The appropriations shall be allocated to the individual programs as follows:
6 (a) $17,240,000 in fiscal year 2026-2027 and $16,670,000 in fiscal year 2027-
7 2028 to support an income exclusion from eligibility determinations for child care
8 providers; and
9 (b) $1,440,000 in General Fund in fiscal year 2026-2027 and $1,395,000 in fiscal
10 year 2027-2028 to support a six-month transition for families no longer eligible for
11 CCAP benefits.
12 (14) Early Childhood Development Scholarship Program: Included in the
13 above General Fund appropriation is $2,400,000 in fiscal year 2026-2027 and $2,325,000
14 in fiscal year 2027-2028 to support the Early Childhood Development Scholarship
15 Program.
16 (15) Supplemental Nutrition Assistance Program (SNAP) Administration:
17 Included in the above General Fund appropriation is $43,500,000 in fiscal year 2026-
18 2027 and $58,000,000 in fiscal year 2027-2028 to support the increased state share of
19 SNAP administrative cost responsibility from 50 percent to 75 percent, as required by
20 H.R. 1 of the 119th Congress.
21 (16) Adoption Records: Included in the above appropriations is sufficient funding
22 to implement and carry out the provisions of 2024 Ky. Acts ch. 43.
23 (17) Child Care Benefits: Included in the above appropriations is sufficient
24 funding to implement and carry out the provisions of 2024 Ky. Acts ch. 84.
25 (18) Relative and Fictive Kin Caregivers: Included in the above General Fund
26 appropriation is $6,000,000 in each fiscal year. Federal funds shall include but are not
27 limited to funds available through foster care maintenance payments in Title IV-E of the
Page 21 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 Social Security Act and the Temporary Assistance for Needy Families block grant under
2 Title IV-A of the Social Security Act.
3 Pursuant to KRS 620.142(4), the custodial, permanency, and service options
4 provided to relative and fictive caregivers shall reflect nationally recognized best
5 practices. The Cabinet for Health and Family Services shall include Title IV-E compliant
6 provisional licensing for relatives and fictive kin through revised administrative
7 regulation (922 KAR) in order to maximize federal funding available for relative or
8 fictive kin foster parent payments. Such provisional licensing shall include provisional
9 approval within five days of placement, immediate satisfaction of all federal safety
10 requirements, a 120-day window to complete non-safety requirements (training, home
11 study), and a provisional approval process to qualify these homes for Title IV-E foster
12 care maintenance payment purposes.
13 Pursuant to KRS 620.142(3), within 120 days of receiving temporary custody of a
14 child or upon the occurrence of a verifiable qualifying event, a relative or fictive kin
15 caregiver may submit a request to the Cabinet for Health and Family Services for the
16 purpose of pursuing a change in custody of the child in his or her care. Upon preliminary
17 approval of the request, the Cabinet for Health and Family Services may request that the
18 court place the child in the custody of the Cabinet for the purpose of allowing the relative
19 or fictive kin caregiver to pursue approval as a relative or fictive kin foster parent. Upon
20 placement of the child in the custody of the Cabinet, the relative or fictive kin caregiver
21 shall pursue foster parent approval.
22 For purposes of KRS 620.142(3), a "qualifying event" shall include the death or
23 incapacitation of a caregiver; loss of income due to disability; early or unplanned
24 retirement due to a documented hardship, including medical necessity or employer-
25 mandated separation, resulting in a substantial loss of income; loss of a home or
26 employment due to a natural disaster or fire; a change in household structure due to
27 divorce or legal separation; or a significant change in the child's medical or behavioral
Page 22 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 health needs requiring substantial caregiver involvement.
2 Nothing in this subsection shall be construed to relieve a child’s biological or legal
3 parents of their continuing statutory and legal duty to support and provide for the child.
4 For any child involved in a juvenile court proceeding who is in state custody or placed by
5 the Cabinet in an out-of-home setting, including but not limited to placement with fictive
6 kin or relatives, the Cabinet shall immediately initiate proceedings to establish a child
7 support order in favor of the Commonwealth and shall take all necessary steps to enforce
8 such order for the duration of the child’s placement or state custody.
9 The Cabinet shall coordinate, as appropriate, with the state agency responsible for
10 child support enforcement to ensure timely establishment, modification, and enforcement
11 of support obligations. Any support collected by the state shall be applied in accordance
12 with state law for the benefit of the child.
13 Efforts to establish or enforce child support shall not delay permanency planning or
14 placement decisions made in the best interests of the child.
15 (19) Dependency, Neglect, or Abuse of a Child: Included in the above
16 appropriations is sufficient funding to implement and carry out the provisions of 2024
17 Ky. Acts ch. 133 and 144.
18 (20) Truancy: Included in the above appropriations is sufficient funding to
19 implement and carry out the provisions of 2024 Ky. Acts ch. 163.
20 (21) Out of Home Care: Included in the above Restricted Funds appropriation is
21 $22,000,000 in each fiscal year from the Out of Home Care Replacement Fund to
22 maintain existing support for foster care and kinship care programs to enhance
23 specialized services for children with exceptional needs to assist in identifying and
24 securing supportive placements. The Department of Community Based Services shall
25 utilize federal funds from the Temporary Assistance for Needy Families block grant and
26 shall expend any additional available reserves before expending the Restricted Funds
27 from the Out of Home Care Replacement Fund. The Department shall submit a quarterly
Page 23 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 report detailing the expenditures and fund sources for all out of home care services
2 beginning November 1, 2026, to the Interim Joint Committee on Appropriations and
3 Revenue.
4 (22) Kentucky United Methodist Children’s Homes: Included in the above
5 General Fund appropriation is $102,100 in fiscal year 2026-2027 to reimburse the
6 Kentucky United Methodist Children’s Homes Independent Living Program for
7 providing therapeutic services to youth in state custody.
8 (23) Sunrise Children’s Services: Included in the above General Fund
9 appropriation is $2,200 in fiscal year 2026-2027 to reimburse the Sunrise Children’s
10 Services Independent Living Program for providing therapeutic services to youth in state
11 custody.
12 (24) Youth Villages Intercept Program: Included in the above appropriations is
13 $6,378,600 in General Fund and $6,396,400 in Federal Funds in fiscal year 2026-2027
14 and $7,792,300 in General Fund and $8,997,700 in Federal Funds in fiscal year 2027-
15 2028 for the Youth Villages Intercept Program.
16 (25) Child Care Provider Reimbursement Rate Increase: Included in the above
17 General Fund appropriation is $26,880,000 in fiscal year 2026-2027 and $26,040,000
18 in fiscal year 2027-2028 to provide reimbursements to child care providers for CCAP
19 families at the 80th percentile of the Market Rate Survey.
20 (26) Certified Child Care Community Designation Program: Included in the
21 above appropriations is sufficient funding to implement and carry out the provisions of
22 2024 Ky. Acts ch. 88.
23 Section 9. 2026 Regular Session HB 500/VO in Part, Part I, K. Postsecondary
24 Education, at pages 107 to 123, is amended to read as follows:
25 K. POSTSECONDARY EDUCATION
26 Budget Units
27 1. COUNCIL ON POSTSECONDARY EDUCATION
Page 24 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 2026-27 2027-28
2 General Fund (Tobacco) 6,165,900 5,745,500
3 General Fund 14,217,900 17,696,700
4 Restricted Funds 11,709,700 9,025,900
5 Federal Funds 6,128,800 6,190,100
6 TOTAL 38,222,300 38,658,200
7 (1) Interest Earnings Transfer from the Strategic Investment and Incentive
8 Trust Fund Accounts: Notwithstanding KRS 164.7911 to 164.7927, included in the
9 above Restricted Funds appropriation is $3,077,300 in fiscal year 2026-2027 from the
10 interest earnings on the Research Challenge and Comprehensive University Excellence
11 trust funds to support the operations of the Council on Postsecondary Education.
12 (2) Cancer Research and Screening: Included in the above General Fund
13 (Tobacco) appropriation is $6,165,900 in fiscal year 2026-2027 and $5,745,500 in fiscal
14 year 2027-2028 for cancer research and screening to be shared equally between the
15 University of Kentucky and the University of Louisville. Of these amounts, $625,000 in
16 each fiscal year is from the lapse and reallocation of Early Childhood Development Fund
17 appropriations set forth in Part X of this Act.
18 (3) Redistribution of Resources: Notwithstanding KRS 164.028 to 164.0282, no
19 General Fund is provided for Professional Education Preparation.
20 (4) Postsecondary Education Debt: Notwithstanding KRS 45.750 to 45.810, in
21 order to lower the cost of borrowing, any university that has issued or caused to be issued
22 debt obligations through a not-for-profit corporation or a municipality or county
23 government for which the rental or use payments of the university substantially meet the
24 debt service requirements of those debt obligations is authorized to refinance those debt
25 obligations if the principal amount of the debt obligations is not increased and the rental
26 payments of the university are not increased. Any funds used by a university to meet debt
27 obligations issued by a university pursuant to this subsection shall be subject to
Page 25 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 interception of state-appropriated funds pursuant to KRS 164A.608.
2 (5) Disposition of Postsecondary Institution Property: Notwithstanding KRS
3 45.777, a postsecondary institution’s governing board may elect to sell or dispose of real
4 property or major items of equipment and proceeds from the sale shall be designated to
5 the funding sources, on a proportionate basis, used for acquisition of the equipment or
6 property to be sold.
7 (6) Spinal Cord and Head Injury Research: Included in the above General
8 Fund appropriation is $1,920,000 in fiscal year 2026-2027 and $1,860,000 in fiscal year
9 2027-2028 for spinal cord and head injury research. In accordance with KRS 211.500 to
10 211.504, the appropriation in each fiscal year shall be shared between the University of
11 Kentucky and the University of Louisville.
12 (7) Immunity for Postsecondary Institutions: Notwithstanding any statute to
13 the contrary, a public postsecondary institution, including any affiliated corporation, its
14 officers, employees, and agents, shall be immune from all claims, including class action
15 claims for damages, a declaratory judgment, and equitable relief based on an act or
16 omission if:
17 (a) The claim arises out of or in connection with tuition paid to the public
18 postsecondary institution for an academic term that included the months of March, April,
19 and May 2020;
20 (b) The claim alleges losses or damages arising from an act or omission by the
21 public postsecondary institution during or in response to the COVID-19 emergency; and
22 (c) The alleged act or omission of the public postsecondary institution was related
23 to protecting public health and safety interests in response to the COVID-19 emergency
24 in compliance with federal, state, or local guidance, including but not limited to:
25 1. Transition to online or otherwise remote instruction;
26 2. Pause or modification to instruction available through the institution of higher
27 education;
Page 26 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 3. Closure of, or modification to, operation of on-campus facilities of the public
2 postsecondary institution; or
3 4. The public postsecondary institution offered online and otherwise remote
4 learning options that allowed students to complete the coursework in the academic term
5 that included the months of March, April, and May 2020 and receive academic credit.
6 (8) Ovarian Cancer Screening: Included in the above General Fund
7 appropriation is $960,000 in fiscal year 2026-2027 and $930,000 in fiscal year 2027-2028
8 for the Ovarian Cancer Screening Outreach Program at the University of Kentucky.
9 (9) Southern Regional Education Board Dues: Included in the above General
10 Fund appropriation is $224,800 in each fiscal year for Southern Regional Education
11 Board dues.
12 2. KENTUCKY HIGHER EDUCATION ASSISTANCE AUTHORITY
13 2026-27 2027-28
14 General Fund 384,709,400 384,529,400
15 Restricted Funds 62,270,900 62,292,900
16 Federal Funds 86,000 86,000
17 TOTAL 447,066,300 446,908,300
18 (1) College Access Program: The following is appropriated for the College
19 Access Program in each fiscal year:
20 (a) Notwithstanding KRS 154A.130(4), $179,344,800 in General Fund;
21 (b) Notwithstanding KRS 164.7891, $1,100,000 in Restricted Funds; and
22 (c) $450,000 in Restricted Funds from the collection of loans related to the
23 Minority Educator Recruitment and Retention Scholarship.
24 (2) Kentucky Tuition Grant Program: Notwithstanding KRS 154A.130(4),
25 included in the above General Fund appropriation is $45,975,000 in each fiscal year for
26 the Kentucky Tuition Grant Program.
27 (3) Kentucky National Guard Tuition Award Program: Notwithstanding KRS
Page 27 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 154A.130(4), included in the above General Fund appropriation is $7,398,100 in each
2 fiscal year for the National Guard Tuition Award Program.
3 (4) Kentucky Educational Excellence Scholarships (KEES): The following is
4 appropriated for KEES in each fiscal year:
5 (a) Notwithstanding KRS 154A.130(4), $93,656,600 in General Fund;
6 (b) $12,269,100 in Restricted Funds from previous fiscal years' excess Lottery
7 funds; and
8 (c) $12,300,000 in Restricted Funds from Unclaimed Lottery Prize revenue.
9 Notwithstanding KRS 164.7874(7)(c) and 164.7879(2)(a), for the 2026-2028 fiscal
10 biennium, an eligible high school student shall only be eligible for a Kentucky
11 Educational Excellence Scholarship base award for an academic year in which the
12 student has attained at least a 2.75 grade point average.
13 (5) Work Ready Kentucky Scholarship Program: Notwithstanding KRS
14 154A.130(4), included in the above General Fund appropriation is $12,000,500 in each
15 fiscal year for the Work Ready Kentucky Scholarship Program. It is the intent of the
16 General Assembly for Work Ready Kentucky Scholarships to only be awarded to
17 recipients that complete eligible courses.
18 (6) Dual Credit Scholarship Program: (a) Notwithstanding KRS
19 154A.130(4), included in the above General Fund appropriation is $21,149,500 in each
20 fiscal year for the Dual Credit Scholarship Program. Included in the above Restricted
21 Funds appropriation is $6,290,100 in each fiscal year from previous years’ excess Lottery
22 funds held in trust and agency account for the Dual Credit Scholarship Program.
23 (b) Notwithstanding KRS 164.786(1)(f)[ and 164.787(2)(d)], the dual credit
24 tuition rate ceiling shall be one-half of the per credit hour tuition amount charged by the
25 Kentucky Community and Technical College System for in-state students.
26 Notwithstanding KRS 164.786(4)(c), eligible high school students may receive a dual
27 credit scholarship for two career and technical education dual credit courses per academic
Page 28 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 year and four general education dual credit courses over the junior and senior years, up to
2 a maximum of 12 approved dual credit courses.
3 (7) Veterinary Medicine Contract Spaces: Included in the above General Fund
4 appropriation is $5,800,400 in each fiscal year for the Veterinary Medicine Contract
5 Spaces Program. For students receiving an initial award in fiscal year 2027-2028 or
6 thereafter, as a condition of the contract space support each recipient shall enter into a
7 written agreement with the Kentucky Higher Education Assistance Authority to practice
8 veterinary medicine in the Commonwealth of Kentucky for at least one year for each year
9 the contract space is received. If a recipient fails to complete the required service within
10 the timeframe established by the Authority, the total amount of the contract space support
11 received shall convert to a loan and shall be repaid to the Commonwealth. For any
12 support converted to a loan, interest shall be assessed and shall accrue on the principal
13 balance beginning on the date of the first disbursement. The rate of interest shall be
14 determined by the Authority through the promulgation of administrative regulations. All
15 repayments, including principal and interest, shall be deposited into a trust and agency
16 account to be used for future awards. The Authority shall be entitled to recover
17 reasonable costs of collection and attorney fees in the event of default. Students receiving
18 contract space support prior to fiscal year 2027-2028 shall not be subject to this service
19 requirement.
20 (8) Optometry Scholarship Program: Included in the above General Fund
21 appropriation is $814,500 in fiscal year 2026-2027 and $789,000 in fiscal year 2027-2028
22 for the Optometry Scholarship Program. For students receiving an initial award in fiscal
23 year 2027-2028 or thereafter, as a condition of the scholarship each recipient shall enter
24 into a written agreement with the Kentucky Higher Education Assistance Authority to
25 practice optometry in the Commonwealth of Kentucky for at least one year for each year
26 the scholarship is received. If a recipient fails to complete the required service
27 requirement within the timeframe established by the Authority, the scholarship shall be
Page 29 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 converted to a loan and be shall repaid to the Commonwealth. For any scholarship
2 converted to a loan, interest shall be assessed and shall accrue on the principal balance
3 beginning on the date of the first disbursement. The rate of interest shall be determined
4 by the Authority through the promulgation of administrative regulations. All repayments,
5 including principal and interest, shall be deposited into a trust and agency account to be
6 used for future awards. The Authority shall be entitled to recover reasonable costs of
7 collection and attorney fees in the event of default. Students receiving the scholarship
8 prior to fiscal year 2027-2028 shall not be subject to this service requirement.
9 (9) Use of Lottery Revenues: Notwithstanding KRS 154A.130(3) and (4),
10 lottery revenues in the amount of $362,200,000 in each fiscal year are appropriated to the
11 Kentucky Higher Education Assistance Authority. Notwithstanding KRS 154A.130(4)
12 and any provisions of this Act to the contrary, if lottery receipts received by the
13 Commonwealth, excluding any unclaimed prize money received under Part III, 20. of this
14 Act, exceed $370,000,000 in fiscal year 2025-2026 or $365,000,000 in each fiscal year of
15 the 2026-2028 fiscal biennium, the additional excess shall be transferred to a trust and
16 agency account and shall not be expended or appropriated without the express authority
17 of the General Assembly.
18 (10) Redistribution of Resources: Notwithstanding KRS 164.740 to 164.764,
19 164.7890(11)(c), 164.7891(11)(b), and 164.7894, no General Fund is provided for Work
20 Study, Coal County Pharmacy Scholarships, Osteopathic Medicine Scholarships, and
21 Coal County College Completion Scholarships in order to provide additional funding to
22 the College Access Program and Kentucky Tuition Grant Program.
23 (11) Teacher Scholarship Program: Included in the above appropriation is
24 $1,015,000 in Restricted Funds in each fiscal year for the Teacher Scholarship Program.
25 The Kentucky Higher Education Assistance Authority, in coordination with the Council
26 on Postsecondary Education, shall submit a report on the number of teacher scholarships
27 provided in each fiscal year, the program of study in which recipients are enrolled,
Page 30 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 recipient retention rates, total number of applications, and the impact of the scholarships
2 on recruitment. This report shall be submitted to the Interim Joint Committee on
3 Education by September 1 of each fiscal year.
4 (12) General Administration and Support: Included in the above General Fund
5 appropriation is $6,000,000 in each fiscal year to support general administration and
6 support services.
7 (13) Teacher Recruitment Student Loan Forgiveness Pilot Program: Included
8 in the above General Fund appropriation is $4,800,000 in each fiscal year for the Teacher
9 Recruitment Student Loan Forgiveness Pilot Program. Notwithstanding KRS
10 154A.130(4), of this amount $2,000,000 shall be allocated from lottery revenues.
11 (14) Innovative Scholarship Pilot Project: Notwithstanding KRS 154A.130(4),
12 included in the above General Fund appropriation is $675,500 in each fiscal year for the
13 Innovative Scholarship Pilot Project. The Kentucky Higher Education Assistance
14 Authority shall work in coordination with the Council on Postsecondary Education to
15 develop and implement the Innovative Scholarship pilot project.
16 3. EASTERN KENTUCKY UNIVERSITY
17 2026-27 2027-28
18 General Fund 81,658,500 76,658,500
19 [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 435,512,900 430,174,800
23 [434,064,200] [427,355,200]
24 (1) Mandated Programs: Included in the above General Fund appropriation are
25 the following:
26 (a) $4,571,900 in each fiscal year for the Model Laboratory School;
27 (b) Notwithstanding KRS 61.5991, $4,454,900 in each fiscal year to support the
Page 31 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 university's share of the anticipated retirement costs over the university's fiscal year
2 2019-2020 baseline contribution as adjusted and posted under the 2026 Budget Bills tile
3 on the Legislative Research Commission's website;[ and]
4 (c) $2,423,200 in each fiscal year to support the Commonwealth’s Property and
5 Casualty Insurance Fund premium; and
6 (d) $6,500,000 in fiscal year 2026-2027 and $1,500,000 in fiscal year 2027-2028
7 to support the establishment and operations of an air traffic control training program.
8 [(2) Air Traffic Control Training Program: Included in the above General Fund
9 appropriation is $6,500,000 in fiscal year 2026-2027 and $1,500,000 in fiscal year 2027-
10 2028 to support the establishment and operations of an air traffic control training
11 program.]
12 4. KENTUCKY STATE UNIVERSITY
13 2026-27 2027-28
14 General Fund 32,198,500 30,198,500
15 Restricted Funds 68,862,300 77,848,400
16 Federal Funds 40,680,600 44,031,000
17 TOTAL 141,741,400 152,077,900
18 (1) Mandated Programs: Included in the above General Fund appropriation are
19 the following:
20 (a) $10,381,000 in each fiscal year to fund the state match payments required of
21 land-grant universities under federal law;
22 (b) $473,600 in each fiscal year to support the Commonwealth’s Property and
23 Casualty Insurance Fund premium; and
24 (c) $2,000,000 in fiscal year 2026-2027 for expansion of online offerings.
25 5. MOREHEAD STATE UNIVERSITY
26 2026-27 2027-28
27 General Fund 46,356,100 46,873,100
Page 32 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 Restricted Funds 113,586,900 113,586,900
2 Federal Funds 47,176,400 47,176,400
3 TOTAL 207,119,400 207,636,400
4 (1) Mandated Programs: Included in the above General Fund appropriation are
5 the following:
6 (a) $5,959,800 in fiscal year 2026-2027 and $6,476,800 in fiscal year 2027-2028
7 for the Craft Academy for Excellence in Science and Mathematics;
8 (b) Notwithstanding KRS 61.5991, $2,456,500 in each fiscal year to support the
9 university's share of the anticipated retirement costs over the university's fiscal year
10 2019-2020 baseline contribution as adjusted and posted under the 2026 Budget Bills tile
11 on the Legislative Research Commission's website; and
12 (c) $1,274,400 in each fiscal year to support the Commonwealth’s Property and
13 Casualty Insurance Fund premium.
14 6. MURRAY STATE UNIVERSITY
15 2026-27 2027-28
16 General Fund 49,549,600 49,549,600
17 Restricted Funds 159,450,500 159,450,500
18 Federal Funds 26,494,600 26,494,600
19 TOTAL 235,494,700 235,494,700
20 (1) Mandated Programs: Included in the above General Fund appropriation are
21 the following:
22 (a) $4,034,200 in each fiscal year for the Breathitt Veterinary Center;
23 (b) Notwithstanding KRS 61.5991, $1,635,500 in each fiscal year to support the
24 university's share of the anticipated retirement costs over the university's fiscal year
25 2019-2020 baseline contribution as adjusted and posted under the 2026 Budget Bills tile
26 on the Legislative Research Commission's website; and
27 (c) $1,451,400 in each fiscal year to support the Commonwealth’s Property and
Page 33 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 Casualty Insurance Fund premium.
2 7. NORTHERN KENTUCKY UNIVERSITY
3 2026-27 2027-28
4 General Fund 57,515,300 59,315,300
5 [56,453,800] [57,249,300]
6 Restricted Funds 221,360,100 221,360,100
7 Federal Funds 15,450,500 15,450,500
8 TOTAL 294,325,900 296,125,900
9 [293,264,400] [294,059,900]
10 (1) Mandated Programs: Included in the above General Fund appropriation are
11 the following:
12 (a) $1,323,900 in each fiscal year for the Kentucky Center for Mathematics;
13 (b) $1,377,900 in each fiscal year to support the Commonwealth’s Property and
14 Casualty Insurance Fund premium; and
15 (c) $1,800,000 in fiscal year 2026-2027 and $3,600,000 in fiscal year 2027-2028
16 for the Votruba Young Scholars Academy.
17 8. UNIVERSITY OF KENTUCKY
18 2026-27 2027-28
19 General Fund (Tobacco) 500,000 1,500,000
20 General Fund 298,134,900 298,134,900
21 [292,513,300] [287,193,700]
22 Restricted Funds 8,688,499,300 9,509,319,400
23 Federal Funds 315,770,000 333,769,000
24 TOTAL 9,302,904,200 10,142,723,300
25 [9,297,282,600] [10,131,782,100]
26 (1) Mandated Programs: Included in the above General Fund appropriation are
27 the following:
Page 34 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 (a) $35,420,800 in each fiscal year for the College of Agriculture, Food and
2 Environment’s Cooperative Extension Service. Of this amount, $4,145,500 in each fiscal
3 year is provided to support extension agent compensation;
4 (b) $31,434,100 in each fiscal year for the Kentucky Agricultural Experiment
5 Station;
6 (c) $10,176,200 in each fiscal year for the Center for Applied Energy Research;
7 (d) $4,076,300 in each fiscal year for the Kentucky Geological Survey;
8 (e) $4,034,200 in each fiscal year for the Veterinary Diagnostic Laboratory;
9 (f) $2,040,500 in each fiscal year for the Sanders-Brown Center on Aging;
10 (g) $1,800,000 in each fiscal year for the College of Agriculture, Food and
11 Environment’s Division of Regulatory Services;
12 (h) $600,000 in each fiscal year for the College of Agriculture, Food and
13 Environment’s Kentucky Small Business Development Center;
14 (i) $586,300 in each fiscal year for the University Press of Kentucky;
15 (j) $500,000 in each fiscal year for the Human Development Institute for the
16 Supported Higher Education Project;
17 (k) $450,200 in each fiscal year for the Center of Excellence in Rural Health;
18 (l) $950,200 in each fiscal year for the Kentucky Cancer Registry;
19 (m) $100,000 in each fiscal year for the Sports Medicine Research Institute; and
20 (n) $10,750,900 in each fiscal year to support the Commonwealth's Property and
21 Casualty Insurance Fund Premium.
22 (2) Nuclear Reactor Site Readiness Pilot Program: Costs associated with the
23 procurement of an Early Site Permit (10 C.F.R. secs. 52.12 et seq.), a Construction
24 Permit (10 C.F.R. pt. 50), or a Combined Operating License (10 C.F.R. secs. 52.71 et
25 seq.) from the United States Nuclear Regulatory Commission for up to three projects
26 under the Nuclear Reactor Site Readiness Pilot Program shall be deemed a necessary
27 government expense and shall be paid from the General Fund Surplus Account (KRS
Page 35 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 48.700) or the Budget Reserve Trust Fund Account (KRS 48.705) in an amount not to
2 exceed $75,000,000 for the 2026-2028 fiscal biennium. Any such expenditure shall be
3 subject to the prior written approval of the State Budget Director and shall be limited to
4 one-third of the actual costs incurred per project, not to exceed $25,000,000 per project.
5 (3) 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 set forth in Part X of this Act.
10 (4) Energy Planning and Inventory Commission: In fiscal year 2026-2027,
11 $15,000,000 of the funds authorized in 2024 Ky. Acts ch. 173, sec. 1, (207) shall be
12 allocated to the Energy Planning and Inventory Commission.
13 9. UNIVERSITY OF LOUISVILLE
14 2026-27 2027-28
15 General Fund (Tobacco) 2,750,000 -0-
16 General Fund 138,206,200 138,206,200
17 [135,615,900] [133,164,800]
18 Restricted Funds 1,515,148,500 1,547,903,100
19 Federal Funds 196,365,300 200,610,300
20 TOTAL 1,852,470,000 1,886,719,600
21 [1,849,879,700] [1,881,678,200]
22 (1) Mandated Programs: Included in the above General Fund appropriation are
23 the following:
24 (a) $695,200 in each fiscal year for the Rural Health Education Program;
25 (b) $150,000 in each fiscal year for the Kentucky Autism Training Center;
26 (c) $100,000 in each fiscal year for the School of Dentistry to provide dental care
27 to patients with dental issues related to drug use;
Page 36 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 (d) $150,000 in each fiscal year for the Mid-South REACH Grant; and
2 (e) $5,801,100 in each fiscal year to support the Commonwealth’s Property and
3 Casualty Insurance Fund premium.
4 (2) Cancer Research: Included in the above General Fund (Tobacco)
5 appropriation is $2,750,000 in fiscal year 2026-2027 to fund cancer research at the
6 Brown Cancer Center. This appropriation is from the lapse and reallocation of Early
7 Childhood Development Fund appropriations set forth in Part X of this Act.
8 10. WESTERN KENTUCKY UNIVERSITY
9 2026-27 2027-28
10 General Fund 81,682,600 82,199,600
11 [80,142,600] [79,202,300]
12 Restricted Funds 279,343,600 280,343,600
13 Federal Funds 44,143,300 44,143,300
14 TOTAL 405,169,500 406,686,500
15 [403,629,500] [403,689,200]
16 (1) Mandated Programs: Included in the above General Fund appropriation are
17 the following:
18 (a) $5,959,800 in fiscal year 2026-2027 and $6,476,800 in fiscal year 2027-2028
19 for the Gatton Academy of Mathematics and Science in Kentucky;
20 (b) $1,750,000 in each fiscal year for the Kentucky Mesonet;
21 (c) Notwithstanding KRS 61.5991, $1,412,000 in each fiscal year to support the
22 university's share of the anticipated retirement costs over the university's fiscal year
23 2019-2020 baseline contribution as adjusted and posted under the 2026 Budget Bills tile
24 on the Legislative Research Commission's website; and
25 (d) $1,866,900 in each fiscal year to support the Commonwealth’s Property and
26 Casualty Insurance Fund premium.
27 11. KENTUCKY COMMUNITY AND TECHNICAL COLLEGE SYSTEM
Page 37 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 2026-27 2027-28
2 General Fund 182,861,500 182,861,500
3 [179,381,700] [176,089,000]
4 Restricted Funds 556,045,700 561,002,400
5 Federal Funds 295,517,000 295,516,800
6 TOTAL 1,034,424,200 1,039,380,700
7 [1,030,944,400] [1,032,608,200]
8 (1) Mandated Programs: Included in the above General Fund appropriation are
9 the following:
10 (a) $6,000,000 in each fiscal year for KCTCS-TRAINS;
11 (b) $1,000,000 in each fiscal year for Adult Agriculture Education; and
12 (c) $3,164,800 in each fiscal year to support the Commonwealth’s Property and
13 Casualty Insurance Fund premium.
14 (2) Firefighters Foundation Program Fund: (a) Included in the above
15 Restricted Funds appropriation is $64,160,100 in fiscal year 2026-2027 and $63,175,400
16 in fiscal year 2027-2028 for the Firefighters Foundation Program Fund.
17 (b) Notwithstanding KRS 95A.250(1)(a), included in the above Restricted Funds
18 appropriation are sufficient funds for an incentive payment of $4,653 in fiscal year 2026-
19 2027 and $4,746 in fiscal year 2027-2028, plus an amount equal to the required
20 employer’s contribution on the supplement in each fiscal year for each qualified
21 professional firefighter under the Firefighters Foundation Program Fund. KRS
22 95A.250(1)(b) to (e) shall remain applicable, except that the administrative expense
23 reimbursement cap under KRS 95A.250(1)(e)(3) shall not exceed $500,000.
24 (c) Notwithstanding KRS 95A.262(2), included in the above Restricted Funds
25 appropriation is $15,300 in each fiscal year for aid payments for each qualified volunteer
26 fire department.
27 (d) Notwithstanding KRS 95A.200 to 95A.300, $18,800,000 in fiscal year 2026-
Page 38 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 2027 shall be transferred to support projects as set forth in Part II, Capital Projects
2 Budget, of this Act.
3 (e) Notwithstanding KRS 95A.200 to 95A.300, included in the above Restricted
4 Funds appropriation is $1,869,900 in each fiscal year for the State Fire Rescue Training
5 mandated program.
6 (f) Notwithstanding KRS 95A.200 to 95A.300, included in the above Restricted
7 Funds appropriation is $1,556,000 in fiscal year 2026-2027 to be transferred to the
8 Replace Unsafe Fire Equipment capital project for the Energy and Environment Cabinet
9 as set forth in Part II, Capital Projects Budget, of this Act.
10 (3) Firefighters Training Center Fund: Notwithstanding KRS 95A.262(3),
11 $1,000,000 in Restricted Funds is provided in each fiscal year for the Firefighters
12 Training Center Fund.
13 (4) Guaranteed Energy Savings Performance Contracts: Notwithstanding
14 KRS 56.770 and 56.774, guaranteed energy savings performance contracts may be
15 executed for buildings operated by the Kentucky Community and Technical College
16 System under agreements governed by KRS 164.593.
17 (5) Disposition of KCTCS Property: Notwithstanding KRS 45.777, the KCTCS
18 governing board may elect to sell or dispose of real property or major equipment and
19 proceeds that are surplus to its needs and retain the proceeds of any sale.
20 (6) Other Postemployment Benefits Trust Fund: By October 1, 2026, the
21 President of the Kentucky Community and Technical College System (KCTCS) is
22 directed to have determined the actuarial liabilities of the KCTCS Other Postemployment
23 Trust Fund effective December 31, 2026, and provide a report to the Interim Joint
24 Committee on Appropriations and Revenue. By January 1, 2027, with the assistance of
25 the State Budget Director and the Secretary of the Finance and Administration Cabinet,
26 the President of KCTCS shall submit a plan to the Legislative Research Commission to
27 have the difference between the balance of the KCTCS Other Postemployment Benefits
Page 39 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 Trust Fund and the actuarial liabilities of the fund transferred to the Budget Reserve Trust
2 Fund Account (KRS 48.705). It is the intent of the 2026 General Assembly to take action
3 on the plan submitted to the Legislative Research Commission in the 2027 Regular
4 Session.
5 (7) Commonwealth West Healthcare Workforce Innovation Center - Carry
6 Forward of Appropriation Balance: Notwithstanding KRS 45.229, the Federal Fund
7 appropriation balance from 2022 Ky. Acts ch. 199, Part I, J., 11., (6) shall not lapse and
8 shall carry forward.
9 12. POSTSECONDARY EDUCATION PERFORMANCE FUND
10 2026-27 2027-28
11 General Fund 115,000,000 115,000,000
12 TOTAL - POSTSECONDARY EDUCATION
13 2026-27 2027-28
14 General Fund (Tobacco) 9,415,900 7,245,500
15 General Fund 1,482,090,500 1,481,223,300
16 [1,466,348,600] [1,450,585,300]
17 Restricted Funds 11,894,631,900 12,760,149,500
18 Federal Funds 1,123,312,500 1,148,968,000
19 TOTAL 14,509,450,800 15,397,586,300
20 [14,493,708,900] [15,366,948,300]
21 Section 10. 2026 Regular Session HB 500/VO in Part, Part II, J., 2., 006.
22 Aviation Acquisition Pool – 2026-2028, at page 148, is amended to read as follows:
23 001. Aviation Acquisition Pool - 2026-2028
24 Restricted Funds -0- 5,000,000 -0-
25 Agency Bonds[Bond Funds] -0- 10,000,000 -0-
26 TOTAL -0- 15,000,000 -0-
27 Section 11. 2026 Regular Session HB 500/VO in Part, Part II, J., 3., 001. Asset
Page 40 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 Preservation Pool – 2026-2028, at page 149, is amended to read as follows:
2 001. Asset Preservation Pool - 2026-2028
3 Bond Funds -0-25,000,000[10,000,000]25,000,000[2,360,000]
4 Section 12. 2026 Regular Session HB 500/VO in Part, Part II, J., 4., 002.
5 Construct New Applied Science Building, at page 150, is amended to read as follows:
6 002. Construct New Applied Science Building
7 Agency Bonds[Bond Funds] -0- -0- 79,400,000
8 Section 13. 2026 Regular Session HB 500/VO in Part, Part II, J., 7., 021.
9 Construct Research Facility, at pages 156 to 157, is amended to read as follows:
10 003. Construct Research Facility
11 Restricted Funds -0- 50,000,000 -0-
12 Federal Funds -0- 65,000,000 -0-
13 [Bond Funds -0- 200,000,000 -0-]
14 Agency Bonds -0-250,000,000[50,000,000] -0-
15 TOTAL -0- 365,000,000 -0-
16 Section 14. 2026 Regular Session HB 500/VO in Part, Part II, J., 8., 004.
17 Construct STEM Building, at pages 184 to 185, is amended to read as follows:
18 004. Construct STEM Building
19 Agency Bonds[Bond Funds] -0- 142,000,000 -0-
20 Section 15. 2026 Regular Session HB 500/VO in Part, Part II, J., 10., 003.
21 Construct Prison Education Program – Bluegrass CTC, at page 196, is amended to read
22 as follows:
23 003. Construct Prison Education Program - Bluegrass CTC
24 Agency Bonds[Bond Funds] -0- 42,000,000 -0-
25 Section 16. 2026 Regular Session HB 500/VO in Part, Part II, J., 10., 004.
26 Procure Aviation Equipment – Madisonville CC, at page 196, is amended to read as
27 follows:
Page 41 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 004. Procure Aviation Equipment - Madisonville CC
2 Agency Bonds[Bond Funds] -0- 6,000,000 -0-
3 Section 17. 2026 Regular Session HB 500/VO in Part, Part XI State/Executive
4 Branch Budget Summary, at pages 233 to 234, is amended to read as follows:
5 PART XI
6 STATE/EXECUTIVE BRANCH BUDGET SUMMARY
7 OPERATING BUDGET
8 2025-26 2026-27 2027-28
9 General Fund (Tobacco) -0- 86,675,000 79,524,900
10 General Fund -0- 15,416,033,400 15,689,035,300
11 [15,416,488,000] [15,693,139,800]
12 Restricted Funds 167,270,800 16,693,897,000 17,383,278,100
13 Federal Funds 405,900,000 24,307,745,100 24,118,660,800
14 Road Fund -0- 55,582,600 57,940,100
15 SUBTOTAL 573,170,800 56,559,933,100 57,328,439,200
16 [56,560,387,700] [57,332,543,700]
17 CAPITAL PROJECTS BUDGET
18 2025-26 2026-27 2027-28
19 Restricted Funds -0- 20,064,946,000 89,901,000
20 Federal Funds -0- 770,334,000 50,915,000
21 Bond Funds -0- 648,161,000 330,714,000
22 [1,033,161,000] [387,474,000]
23 Agency Bonds -0- 1,650,800,000 79,400,000
24 [1,250,800,000] [-0-]
25 Investment Income -0- 183,324,000 105,633,000
26 Other Funds 350,000,000 9,427,800,000 200,000,000
27 SUBTOTAL
Page 42 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 TOTAL - STATE/EXECUTIVE BUDGET
2 2025-26 2026-27 2027-28
3 General Fund (Tobacco) -0- 86,675,000 79,524,900
4 General Fund -0- 15,416,033,400 15,689,035,300
5 [15,416,488,000] [15,693,139,800]
6 Restricted Funds 167,270,800 36,758,843,000 17,473,179,100
7 Federal Funds 405,900,000 25,078,079,100 24,169,575,800
8 Road Fund -0- 55,582,600 57,940,100
9 Bond Funds -0- 648,161,000 330,714,000
10 [1,033,161,000] [387,474,000]
11 Agency Bonds -0- 1,650,800,000 79,400,000
12 [1,250,800,000] [-0-]
13 Investment Income -0- 183,324,000 105,633,000
14 Other Funds 350,000,000 9,427,800,000 200,000,000
15 TOTAL FUNDS 923,170,800 89,305,298,100 58,185,002,200
16 [89,290,752,700] [58,166,466,700]
17 Section 18. 2026 Regular Session HB 501/VO, Part I, A., 1., (6) On-Site Work,
18 at page 3, is amended to read as follows:
19 (6) On-Site Work: Notwithstanding any statute or administrative regulation to
20 the contrary, beginning July 1, 2027, employees of the Transportation Cabinet shall not
21 be permitted to telecommute unless specifically exempted by the Secretary of the
22 Transportation Cabinet. All exemptions to allow employees to telecommute shall be
23 reported to the Legislative Research Commission on a quarterly basis beginning August
24 1, 2026.
25 Section 19. Notwithstanding KRS 45.229, the balance of the General Fund
26 appropriation authorized in 2022 Ky. Acts ch. 199, Part I, B., 1., (12) shall not lapse and
27 shall carry forward. Projects considered for KPDI funding shall meet the requirements
Page 43 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 under KRS 154.21-017.
2 Section 20. The unexpended balance of $67,724,700 from the fiscal year 2023-
3 2024 General Fund appropriation set out in 2022 Ky. Acts ch. 199, Part I, N., 1. to
4 implement pay raises for state employees shall remain unexpended, and notwithstanding
5 KRS 42.205, 45.229, 48.700, and 48.705, the balance shall be a part of the designated
6 fund balance and be carried forward for budgeted purposes into fiscal year 2026-2027.
7 Section 21. There is hereby appropriated General Fund moneys in the amount
8 of $2,570,000 in fiscal year 2026-2027 from the Budget Reserve Trust Fund Account
9 established in KRS 48.705 to the Learning and Results Services budget unit to support
10 additional costs to local school districts associated with the implementation of the new
11 education assessment and accountability system.
12 Section 22. There is hereby appropriated General Fund moneys from the
13 Budget Reserve Trust Fund Account (KRS 48.705) in the amount of $3,960,000 in each
14 fiscal year of the 2026-2028 fiscal biennium to the Public Health budget unit to support
15 the costs of workforce and operations for the local health departments.
16 Section 23. There is hereby appropriated General Fund moneys from the
17 Budget Reserve Trust Fund Account (KRS 48.705) in the amount of $3,000,000 in fiscal
18 year 2026-2027 to the Kentucky State University budget unit to support the transition to a
19 residential polytechnic institution.
20 Section 24. The Kentucky Exposition Center Redevelopment Plan Phase II
21 project authorized in 2024 Ky. Acts ch. 175, Part II, K., 4., 008. is hereby reauthorized
22 and there is hereby appropriated additional General Fund moneys from the Budget
23 Reserve Trust Fund Account (KRS 48.705) in the amount of $27,000,000 in fiscal year
24 2026-2027 to the Kentucky State Fair Board budget unit for the project.
25 Section 25. There is hereby appropriated General Fund moneys from the
26 Budget Reserve Trust Fund Account (KRS 48.705) in the amount of $5,000,000 in fiscal
27 year 2026-2027 to the Kentucky State Fair Board budget unit for the Louisville
Page 44 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 Transportation Tunnel feasibility study.
2 Section 26. There is hereby appropriated General Fund moneys from the
3 Budget Reserve Trust Fund Account (KRS 48.705) in the amount of $1,250,000 in fiscal
4 year 2026-2027 to the Vehicle Regulation budget unit to be distributed to the Motor
5 Vehicle Commission for the licensing, oversight, management, and enforcement of all
6 penalties and violations of the secondary metal recyclers.
7 Section 27. 2026 Regular Session HB 900/EN, Section 10, at pages 2 to 3, is
8 amended to read as follows:
9 There is hereby appropriated General Fund moneys from the Budget Reserve Trust
10 Fund Account (KRS 48.705) in the amount of $5,000,000 in each fiscal year of the 2026-
11 2028 fiscal biennium to the Residential Housing Infrastructure Fund[Residential
12 Infrastructure Revolving Loan Fund].
13 Section 28. 2026 Regular Session HB 900/EN, Section 13, at page 3, is
14 amended to read as follows:
15 There is hereby appropriated General Fund moneys from the Budget Reserve Trust
16 Fund Account (KRS 48.705) in the amount of $50,000,000 in each fiscal year of the
17 2026-2028 fiscal biennium to the Economic Development budget unit to support the
18 Government Resources Accelerating Needed Transformation (GRANT) Program.
19 Notwithstanding KRS 45.229, $1,100,000 of the funds appropriated for administrative
20 expenses in 2024 Ky. Acts ch. 173, sec. 1 (13) shall not lapse and shall carry forward.
21 Section 29. 2026 Regular Session HB 900/EN, Section 218, at page 42, is
22 amended to read as follows:
23 [There is hereby appropriated General Fund moneys in the amount of $75,000 in
24 fiscal year 2027-2028 from the Budget Reserve Trust Fund Account established in KRS
25 48.705 to the Department for Local Government budget unit to be distributed to the City
26 of Madisonville to support roof construction for a community center.]
27 Section 30. There is hereby appropriated General Fund moneys in the amount
Page 45 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 of $1,500,000 in fiscal year 2027-2028 from the Budget Reserve Trust Fund Account
2 established in KRS 48.705 to the Parks budget unit under the Tourism, Arts and Heritage
3 Cabinet to be distributed to Leeco Park.
4 Section 31. 2026 Regular Session HB 900/EN, Section 80, at page 16, is
5 amended to read as follows:
6 There is hereby appropriated General Fund moneys in the amount of
7 $1,500,000[$3,000,000] in fiscal year 2027-2028 from the Budget Reserve Trust Fund
8 Account established in KRS 48.705 to the Parks budget unit under the Tourism, Arts and
9 Heritage Cabinet to be distributed to Natural Bridge State Park for dredging of Hoedown
10 Island Lake.
11 Section 32. 2026 Regular Session HB 900/EN, Section 86, at page 18, is
12 amended to read as follows:
13 There is hereby appropriated General Fund moneys in the amount of $3,000,000 in
14 fiscal year 2026-2027[2027-2028] from the Budget Reserve Trust Fund Account
15 established in KRS 48.705 to the Department for Local Government budget unit to be
16 distributed to the Louisville Ballet to support touring infrastructure, facility
17 improvements, and restoring live music at performances.
18 Section 33. 2026 Regular Session HB 900/EN, Section 111, at page 22, is
19 amended to read as follows:
20 [There is hereby appropriated General Fund moneys in the amount of $9,200,000 in
21 fiscal year 2027-2028 from the Budget Reserve Trust Fund Account established in KRS
22 48.705 to the Operations and Support Services budget unit under the Kentucky
23 Department of Education to be distributed to the Christian County Chamber of
24 Commerce to support the expansion of critical water infrastructure in the City of Oak
25 Grove.]
26 Section 34. 2026 Regular Session HB 900/EN, Section 112, at pages 22 to 23,
27 is amended to read as follows:
Page 46 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 There is hereby appropriated General Fund moneys in the amount of $504,000 in
2 fiscal year 2026-2027 from the Budget Reserve Trust Fund Account established in KRS
3 48.705 to the Learning and Results Services[Department for Local Government] budget
4 unit to be distributed to the Christian County Board of Education to purchase vehicles
5 and provide equipment for the Christian County Public Schools school-based law
6 enforcement agency.
7 Section 35. 2026 Regular Session HB 900/EN, Section 114, at page 23, is
8 amended to read as follows:
9 There is hereby appropriated General Fund moneys in the amount of $2,500,000 in
10 each fiscal year of the 2026-2028 fiscal biennium[$5,000,000 in fiscal year 2027-2028]
11 from the Budget Reserve Trust Fund Account established in KRS 48.705 to the
12 Department for Aviation budget unit to be distributed to the Perry County Fiscal Court to
13 support the Wendell H. Ford Airport runway expansion project.
14 Section 36. 2026 Regular Session HB 900/EN, Section 119, at page 24, is
15 amended to read as follows:
16 There is hereby appropriated General Fund moneys in the amount of
17 $6,400,000[$7,000,000] in fiscal year 2027-2028 from the Budget Reserve Trust Fund
18 Account established in KRS 48.705 to the Department of Aviation budget unit to be
19 distributed to the Williamsburg-Whitley County Airport to support the runway addition
20 project.
21 Section 37. There is hereby appropriated General Fund moneys in the amount
22 of $600,000 in fiscal year 2027-2028 from the Budget Reserve Trust Fund Account
23 established in KRS 48.705 to the Department for Local Government budget unit to be
24 distributed to the Trigg County Fiscal Court to construct an ambulance service building.
25 Section 38. 2026 Regular Session HB 900/EN, Section 214, at page 41, is
26 amended to read as follows:
27 [There is hereby appropriated General Fund moneys in the amount of $1,000,000 in
Page 47 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 each fiscal year of the 2026-2028 fiscal biennium from the Budget Reserve Trust Fund
2 Account established in KRS 48.705 to the Department for Local Government budget unit
3 to be distributed to the Jackson County Fiscal Court to support improvements and
4 upgrades to the Jackson County Fairgrounds.]
5 Section 39. There is hereby appropriated General Fund moneys in the amount
6 of $500,000 in each fiscal year of the 2026-2028 fiscal biennium from the Budget
7 Reserve Trust Fund Account established in KRS 48.705 to the Department for Local
8 Government budget unit to be distributed to the Harlan County Fiscal Court for
9 Backroads of Appalachia.
10 Section 40. 2026 Regular Session HB 900/EN, Section 145, at page 28, is
11 amended to read as follows:
12 There is hereby appropriated General Fund moneys in the amount of
13 $3,000,000[$4,000,000] in fiscal year 2027-2028 from the Budget Reserve Trust Fund
14 Account established in KRS 48.705 to the Department for Local Government budget unit
15 to be distributed to the City of Ashland for repairs and renovations at the Paramount
16 Theater.
17 Section 41. There is hereby appropriated General Fund moneys in the amount
18 of $400,000 in fiscal year 2027-2028 from the Budget Reserve Trust Fund Account
19 established in KRS 48.705 to the Department for Local Government budget unit to be
20 distributed to the Adair County Fiscal Court for various projects.
21 Section 42. There is hereby appropriated General Fund moneys in the amount
22 of $400,000 in fiscal year 2027-2028 from the Budget Reserve Trust Fund Account
23 established in KRS 48.705 to the Department for Local Government budget unit to be
24 distributed to the City of Grayson to purchase a fire truck.
25 Section 43. There is hereby appropriated General Fund moneys in the amount
26 of $200,000 in fiscal year 2027-2028 from the Budget Reserve Trust Fund Account
27 established in KRS 48.705 to the Department for Local Government budget unit to be
Page 48 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 distributed to Greenbo Lake State Resort Park to support expansion and land acquisition.
2 Section 44. 2026 Regular Session HB 900/EN, Section 210, at page 40, is
3 amended to read as follows:
4 There is hereby appropriated General Fund moneys in the amount of $500,000 in
5 fiscal year 2026-2027 and $3,500,000 in fiscal year 2027-2028 from the Budget Reserve
6 Trust Fund Account established in KRS 48.705 to the Economic Development budget
7 unit, to work in collaboration with the Boyd County Fiscal Court, to support upgrades
8 and improvements of the Camp Landing Entertainment District. Of the amount
9 appropriated in fiscal year 2027-2028, $300,000 shall be distributed to the Archery
10 Program.
11 Section 45. 2026 Regular Session HB 900/EN, Section 115, at page 23, is
12 amended to read as follows:
13 [There is hereby appropriated General Fund moneys in the amount of $320,000 in
14 fiscal year 2026-2027 from the Budget Reserve Trust Fund Account established in KRS
15 48.705 to the Department for Local Government budget unit to be distributed to the Knox
16 County Industrial Development Authority for Knox County land acquisition.]
17 Section 46. 2026 Regular Session HB 900/EN, Section 124, at page 25, is
18 amended to read as follows:
19 [There is hereby appropriated General Fund moneys in the amount of $1,250,000 in
20 fiscal year 2026-2027 from the Budget Reserve Trust Fund Account established in KRS
21 48.705 to the Kentucky Infrastructure Authority budget unit to be distributed to the Knox
22 County Utility Commission to replace a 200,000 gallon water tank.]
23 Section 47. 2026 Regular Session HB 900/EN, Section 212, at page 40, is
24 amended to read as follows:
25 There is hereby appropriated General Fund moneys in the amount of $325,000 in
26 each fiscal year of the 2026-2028 fiscal biennium from the Budget Reserve Trust Fund
27 Account established in KRS 48.705 to the Department for Local Government budget unit
Page 49 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 to be distributed to the City of Barbourville[Barbourville Utility Commission] for
2 necessary infrastructure upgrades and associated equipment needs at the park[to
3 support utilities improvements].
4 Section 48. 2026 Regular Session HB 900/EN, Section 123, at pages 24 to 25,
5 is amended to read as follows:
6 There is hereby appropriated General Fund moneys in the amount of
7 $750,000[$500,000] in fiscal year 2026-2027 from the Budget Reserve Trust Fund
8 Account established in KRS 48.705 to the Department for Local Government budget unit
9 to be distributed to the City of Barbourville to purchase a county-wide emergency
10 warning system.
11 Section 49. 2026 Regular Session HB 900/EN, Section 55, at page 12, is
12 amended to read as follows:
13 There is hereby appropriated General Fund moneys in the amount of $4,000,000 in
14 fiscal year 2026-2027[2027-2028] from the Budget Reserve Trust Fund Account
15 established in KRS 48.705 to the Department for Local Government budget unit to be
16 distributed to the Pikeville Medical Center to construct a Childcare Academy.
17 Section 50. 2026 Regular Session HB 900/EN, Section 215, at page 41, is
18 amended to read as follows:
19 There is hereby appropriated General Fund moneys in the amount of
20 $17,000,000[$10,000,000] in fiscal year 2026-2027 from the Budget Reserve Trust Fund
21 Account established in KRS 48.705 to the Economic Development budget unit to be
22 distributed to the Christian County Fiscal Court for the purchase of debt held by Planters
23 Bank against real estate owned by Hopkinsville Industrial Foundation in or around
24 Commerce Park II. The Cabinet for Economic Development shall arrange normal and
25 ordinary terms for repayment to the Commonwealth of Kentucky for a term of ten years.
26 No interest shall accrue at any time during the term of the loan.
27 Section 51. 2026 Regular Session HB 900/EN, Section 245, at pages 46 to 47,
Page 50 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 is amended to read as follows:
2 There is hereby appropriated General Fund moneys in the amount of
3 $200,000[$100,000] in fiscal year 2026-2027 from the Budget Reserve Trust Fund
4 Account established in KRS 48.705 to the Department for Local Government budget unit
5 to be distributed to the Lincoln County Fiscal Court to support historical property
6 renovations[ support the construction and improvement of the entrance to the Isaac
7 Shelby Cemetery].
8 Section 52. 2026 Regular Session HB 900/EN, Section 269, at page 51, is
9 amended to read as follows:
10 There is hereby appropriated General Fund moneys in the amount of $200,000 in
11 fiscal year 2026-2027 from the Budget Reserve Trust Fund Account established in KRS
12 48.705 to the Department for Local Government budget unit to be distributed to the
13 Lincoln County Fiscal Court to support the Logan's Fort Master Plan[Fort Logan master
14 and construction plan].
15 Section 53. 2026 Regular Session HB 900/EN, Section 92, at page 19, is
16 amended to read as follows:
17 There is hereby appropriated General Fund moneys in the amount of $4,000,000 in
18 fiscal year 2026-2027 from the Budget Reserve Trust Fund Account established in KRS
19 48.705 to the Kentucky Infrastructure Authority budget unit to be distributed to the
20 Lincoln[Boyle] County Fiscal Court to support the US 150 Corridor project to expand
21 water capacity, improve system resiliency, and support long-term economic growth in
22 Lincoln, Rockcastle and Garrard Counties.
23 Section 54. 2026 Regular Session HB 900/EN, Section 24, at page 6, is
24 amended to read as follows:
25 There is hereby appropriated General Fund moneys from the Budget Reserve Trust
26 Fund Account (KRS 48.705) in the amount of $15,100,000 in fiscal year 2026-2027 and
27 $14,500,000 in fiscal year 2027-2028 to the General Administration and Support budget
Page 51 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 unit in the Kentucky Transportation Cabinet to improve public riverports within
2 Kentucky as authorized by KRS 65.520 and for eligible use as described in KRS
3 174.210(3). No local match shall be required.
4 Section 55. 2026 Regular Session HB 900/EN, Section 9, at page 2, is amended
5 to read as follows:
6 There is hereby appropriated General Fund moneys from the Budget Reserve Trust
7 Fund Account (KRS 48.705) in the amount of $25,000,000 in each fiscal year of the
8 2026-2028 fiscal biennium to the Economic Development budget unit to support the
9 Kentucky Product Development Initiative. The Cabinet for Economic Development may
10 retain up to $180,000 in each fiscal year of the 2026-2028 fiscal biennium to reimburse
11 the Kentucky Association for Economic Development for technical support and
12 evaluation services.
13 Section 56. 2026 Regular Session HB 900/EN, Section 251, at page 48, is
14 amended to read as follows:
15 There is hereby appropriated General Fund moneys in the amount of $100,000 in
16 fiscal year 2026-2027 and $200,000[$300,000] in fiscal year 2027-2028 from the Budget
17 Reserve Trust Fund Account established in KRS 48.705 to the Department for Local
18 Government budget unit to be distributed to the Spencer County Fiscal Court to support
19 renovations to a historical site in collaboration with the Felix Grundy Stidger Historic
20 Preservation Foundation.
21 Section 57. 2026 Regular Session HB 900/EN, Section 278, at page 53, is
22 amended to read as follows:
23 There is hereby appropriated General Fund moneys in the amount of
24 $2,256,000[$1,750,000] in fiscal year 2026-2027[each fiscal year of the 2026-2028 fiscal
25 biennium] from the Budget Reserve Trust Fund Account established in KRS 48.705 to
26 the Economic Development budget unit to be distributed to the Greater Owensboro
27 Economic Development Authority to support the Landing Entrepreneurship Center.
Page 52 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 Section 58. 2026 Regular Session HB 900/EN, Section 209, at page 40, is
2 amended to read as follows:
3 There is hereby appropriated General Fund moneys in the amount of
4 $4,621,900[$4,000,000] in fiscal year 2026-2027 and $5,178,000[$4,556,000] in fiscal
5 year 2027-2028 from the Budget Reserve Trust Fund Account established in KRS 48.705
6 to the Department for Local Government budget unit to be distributed to the Daviess
7 County Fiscal Court to construct an emergency operations facility.
8 Section 59. There is hereby appropriated General Fund moneys in the amount
9 of $400,000 in fiscal year 2026-2027 from the Budget Reserve Trust Fund Account
10 established in KRS 48.705 to the Department for Local Government budget unit to be
11 distributed to the Knox County Fiscal Court for the purchase of sensory playground
12 equipment.
13 Section 60. There is hereby appropriated General Fund moneys in the amount
14 of $200,000 in fiscal year 2026-2027 from the Budget Reserve Trust Fund Account
15 established in KRS 48.705 to the Department for Local Government budget unit to be
16 distributed to the Knox County Fiscal Court for necessary infrastructure upgrades and
17 associated equipment needs at the park.
18 Section 61. There is hereby appropriated General Fund moneys in the amount
19 of $510,000 in fiscal year 2026-2027 from the Budget Reserve Trust Fund Account
20 established in KRS 48.705 to the Department for Local Government budget unit to be
21 distributed to the East Knox County Fire Department for the purchase of a substation and
22 other necessary improvements.
23 Section 62. There is hereby appropriated General Fund moneys in the amount
24 of $38,000 in fiscal year 2026-2027 from the Budget Reserve Trust Fund Account
25 established in KRS 48.705 to the Department for Local Government budget unit to be
26 distributed to the Artemus Volunteer Fire Department for the purchase of equipment and
27 infrastructure upgrades.
Page 53 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 Section 63. There is hereby appropriated General Fund moneys in the amount
2 of $72,000 in fiscal year 2026-2027 from the Budget Reserve Trust Fund Account
3 established in KRS 48.705 to the Department for Local Government budget unit to be
4 distributed to the Bailey Switch Volunteer Fire Department for the purchase of equipment
5 and infrastructure upgrades.
6 Section 64. There is hereby appropriated General Fund moneys in the amount
7 of $100,000 in fiscal year 2026-2027 from the Budget Reserve Trust Fund Account
8 established in KRS 48.705 to the Department for Local Government budget unit to be
9 distributed to the Richland Fire Department for the purchase of equipment and
10 infrastructure upgrades.
11 Section 65. 2026 Regular Session HB 900/EN, Section 262, at page 50, is
12 amended to read as follows:
13 There is hereby appropriated General Fund moneys in the amount of[ $2,000,000 in
14 fiscal year 2026-2027 and] $5,500,000 in fiscal year 2027-2028 from the Budget Reserve
15 Trust Fund Account established in KRS 48.705 to the Department for Local Government
16 budget unit to be distributed to the Shelby County Fiscal Court to support public health
17 initiatives, including but not limited to improving emergency medical services,
18 healthcare access, and public health infrastructure in Shelby County[a healthcare
19 facility].
20 Section 66. There is hereby appropriated General Fund moneys in the amount
21 of $2,000,000 in fiscal year 2026-2027 from the Budget Reserve Trust Fund Account
22 established in KRS 48.705 to the Learning and Results Services budget unit to be
23 distributed to the Shelby County Board of Education to support the middle school career
24 center program.
25 Section 67. There is hereby appropriated General Fund moneys in the amount
26 of $2,200,000 in fiscal year 2027-2028 from the Budget Reserve Trust Fund Account
27 established in KRS 48.705 to the School Facilities Construction Commission budget unit
Page 54 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 to be distributed to the Christian County Board of Education to construct a new bus
2 garage.
3 Section 68. There is hereby appropriated General Fund moneys in the amount
4 of $300,000 in fiscal year 2026-2027 from the Budget Reserve Trust Fund Account
5 established in KRS 48.705 to the Legislative Research Commission budget unit for
6 security during the 2026 Southern Legislative Conference.
7 Section 69. There is hereby appropriated General Fund moneys in the amount
8 of $400,000 in fiscal year 2026-2027 from the Budget Reserve Trust Fund Account
9 established in KRS 48.705 to the Department for Local Government budget unit to be
10 distributed to the Lee County Fiscal Court to support park improvements.
11 Section 70. There is hereby appropriated General Fund moneys in the amount
12 of $200,000 in fiscal year 2026-2027 from the Budget Reserve Trust Fund Account
13 established in KRS 48.705 to the Department for Local Government budget unit to be
14 distributed to the City of Beattyville to support sewer equipment.
15 Section 71. There is hereby appropriated General Fund moneys in the amount
16 of $300,000 in fiscal year 2026-2027 from the Budget Reserve Trust Fund Account
17 established in KRS 48.705 to the Department for Local Government budget unit to be
18 distributed to the Wolfe County Fiscal Court to support road department equipment.
19 Section 72. There is hereby appropriated General Fund moneys in the amount
20 of $100,000 in fiscal year 2026-2027 from the Budget Reserve Trust Fund Account
21 established in KRS 48.705 to the Department for Local Government budget unit to be
22 distributed to the Jackson County Fiscal Court to support park upgrades.
23 Section 73. 2026 Regular Session HB 900/EN, Section 261, at pages 49 to 50,
24 is amended to read as follows:
25 There is hereby appropriated General Fund moneys in the amount of $1,500,000 in
26 fiscal year 2026-2027 from the Budget Reserve Trust Fund Account established in KRS
27 48.705 to the Department for Local Government budget unit to be distributed to the
Page 55 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 Garrard County Fiscal Court to support water,[ economic development as it relates to
2 water and] sewer, or infrastructure.[ Funds appropriated in this section shall not be
3 expended on roads.]
4 Section 74. 2026 Regular Session HB 900/EN, Section 43, at page 10, is
5 amended to read as follows:
6 There is hereby appropriated General Fund moneys in the amount of $750,000 in
7 fiscal year 2026-2027 from the Budget Reserve Trust Fund Account established in KRS
8 48.705 to the Department for Local Government budget unit to be distributed to the Bell
9 County Fiscal Court for the purchase of firefighting vehicles and the construction of a
10 building[two new pumper fire trucks].
11 Section 75. 2026 Regular Session HB 900/EN, Section 75, at pages 15 to 16, is
12 amended to read as follows:
13 There is hereby appropriated General Fund moneys in the amount of $3,000,000 in
14 fiscal year 2026-2027[2027-2028] from the Budget Reserve Trust Fund Account
15 established in KRS 48.705 to the Kentucky Infrastructure Authority budget unit to be
16 distributed to the Wolfe County Sanitation District for Phase I and Phase II of the Hazel
17 Green wastewater treatment project.
18 Section 76. 2026 Regular Session HB 900/EN, Section 283, at pages 53 to 54,
19 is amended to read as follows:
20 There is hereby appropriated General Fund moneys in the amount of
21 $900,000[$1,000,000] in fiscal year 2026-2027 and $3,500,000 in fiscal year 2027-2028
22 from the Budget Reserve Trust Fund Account established in KRS 48.705 to the
23 Department for Local Government budget unit to be distributed to the Lincoln County
24 Fiscal Court to support economic development as it relates to water, sewer, or[and]
25 infrastructure.[ Funds shall not be expended on roads.]
26 Section 77. Whereas the provisions of this Act provide ongoing support for
27 state government agencies and their functions, an emergency is declared to exist, and this
Page 56 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM Engrossed
UNOFFICIAL COPY 26 RS SB 197/EN
1 Act takes effect upon its passage and approval by the Governor or upon its otherwise
2 becoming a law.
Page 57 of 57
SB019720.100 - 1782 - XXXX 4/15/2026 8:26 PM EngrossedEvery fact on this page links to its source, starting with the official bill record.