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AN ACT relating to appropriations providing financing and conditions for the 1
operations, maintenance, support, and funct ioning of the Transportation Cabinet of the 2
Commonwealth of Kentucky. 3
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 4
Section 1. The Transportation Cabinet Budget is as follows: 5
PART I 6
OPERATING BUDGET 7
(1) Funds Appropriations: There is appropriated out of the General Fund, Road 8
Fund, Restricted Funds accounts, Federal Funds accounts, or Bond Funds accounts for 9
the fiscal year b eginning July 1, 2026, and ending June 30, 2027, and for the fiscal year 10
beginning July 1, 2027, and ending June 30, 2028, the following discrete sums, or so 11
much thereof as may be necessary. Appropriated funds are included pursuant to KRS 12
48.700 and 48.71 0. Each appropriation is made by source of respective fund or funds 13
accounts. Appropriations for the budget units of the Transportation Cabinet are subject to 14
the provisions of Chapters 12, 42, 45, and 48 of the Kentucky Revised Statutes and 15
compliance with the conditions and procedures set forth in this Act. 16
A. TRANSPORTATION CABINET 17
Budget Units 18
1. GENERAL ADMINISTRATION AND SUPPORT 19
2026-27 2027-28 20
General Fund 500,000 500,000 21
Restricted Funds 2,754,800 2,660,800 22
Road Fund 76,462,000 74,717,900 23
TOTAL 79,716,800 77,878,700 24
(1) Biennial Highway Construction Plan: The Secretary of the Transportation 25
Cabinet shall produce a single document that shall detail the enacted fiscal biennium 26
2026-2028 Biennial Highway Construction P rogram, the 2028 -2032 Highway 27
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Preconstruction Program, and the Local Assistance Road Program. 1
(2) Adopt-A-Highway Litter Program: The Transportation Cabinet and the 2
Energy and Environment Cabinet may receive, accept, and solicit grants, contributions of 3
money, property, labor, or other things of value from any governmental agency, 4
individual, nonprofit organization, or private business to be used for the Adopt -a-5
Highway Litter Program or other statewide litter programs. Any contribution of this 6
nature shall be deemed to be a contribution to a state agency for a public purpose and 7
shall be treated as Restricted Funds under KRS Chapter 45, shall be reported according to 8
KRS Chapter 48, and shall not be subject to restrictions set forth under KRS Chapter 9
11A. 10
(3) Budget Implementation: The General Assembly directs the Transportation 11
Cabinet to carry out all appropriations and budgetary language provisions contained in 12
the Transportation Cabinet Budget. The Legislative Research Commission shall review 13
quarterly e xpenditure data to determine if an agency is out of compliance with this 14
directive. If the Legislative Research Commission suspects that any entity has acted in 15
non-conformity with this subsection, the Legislative Research Commission may order an 16
audit or review at the agency’s expense. Such audit findings, reviews, and reports shall be 17
subject to the Kentucky Open Records Law. The Secretary of the Transportation Cabinet 18
shall provide a comprehensive annual report to the Interim Joint Committee on 19
Appropriations and Revenue, as appropriate, detailing expenditures related to the 20
appropriations contained within the budgetary language provisions for each budget unit 21
within the Transportation Cabinet. If an agency does not expend the full General Fund or 22
Road Fu nd appropriations contained within a budgetary language provision, the 23
unexpended funds shall be transferred to the Budget Reserve Trust Fund Account (KRS 24
48.705) or the Road Fund Surplus Account (KRS 48.710), respectively. 25
(4) Riverport Improvements: Included in the above General Fund appropriation 26
is $500,000 in each fiscal year to the Riverport Financial Assistance Trust Fund (KRS 27
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174.210). 1
(5) AASHTOWare: Included in the above Road Fund appropriation is 2
$1,200,000 in each fiscal year to support the AASHTOWare system. 3
(6) On-Site Work: Notwithstanding any statute or administrative regulation to 4
the contrary, employees of the Transportation Cabinet shall not be permitted to 5
telecommute unless specifically exempted by the Secretary of the Transportation Cabinet. 6
All exemptions to allow employees to telecommute shall be reported to the Legislative 7
Research Commission on a quarterly basis beginning August 1, 2026. 8
(7) Employee Health Exam Reimbursement: Notwithstanding any statute to 9
the contrary, the contract ually agreed upon reimbursement for required Commercial 10
Driver’s License (CDL) physical examinations shall be authorized for employees whose 11
job duties necessitate maintenance of a valid CDL. Such examinations shall be obtained 12
through a medical provider o f the employee’s choosing. Employees seeking 13
reimbursement shall be responsible for submitting all required documentation, including 14
itemized receipts and applicable forms, in accordance with Cabinet -established 15
reimbursement policies and procedures. 16
2. AVIATION 17
2026-27 2027-28 18
General Fund 1,154,000 1,137,700 19
Restricted Funds 18,098,200 17,526,100 20
Federal Funds 500,700 500,700 21
Road Fund 835,900 833,700 22
TOTAL 20,588,800 19,998,200 23
(1) Operational Costs: Notwithstanding KRS 183.52 5(5), the above Restricted 24
Funds appropriation includes operational costs of the program in each fiscal year. 25
(2) Debt Service: Included in the above Road Fund appropriation is $835,900 in 26
fiscal year 2026 -2027 and $833,700 in fiscal year 2027 -2028 for deb t service on 27
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previously authorized bonds. Notwithstanding KRS 183.525, $835,900 in fiscal year 1
2026-2027 and $833,700 in fiscal year 2027 -2028 is transferred to the Road Fund from 2
the Kentucky Aviation Economic Development Fund to support debt service on t hose 3
bonds. 4
3. DEBT SERVICE 5
2026-27 2027-28 6
Road Fund 100,330,300 103,213,000 7
(1) Economic Development Road Lease -Rental Payments: Included in the 8
above Road Fund appropriation is $100,080,300 in fiscal year 2026 -2027 and 9
$102,963,000 in fiscal y ear 2027 -2028 for Economic Development Road lease -rental 10
payments relating to projects financed by Economic Development Road Revenue Bonds 11
previously authorized by the General Assembly and issued by the Kentucky Turnpike 12
Authority. 13
(2) Debt Payment Acceleration Fund Account: Notwithstanding KRS 175.505, 14
no portion of the revenues to the state Road Fund provided by the adjustments in KRS 15
138.220(2), excluding KRS 177.320 and 177.365, shall accrue to the Debt Payment 16
Acceleration Fund account during the 2026-2028 fiscal biennium. 17
4. HIGHWAYS 18
2026-27 2027-28 19
Restricted Funds 217,654,900 348,294,800 20
Federal Funds 1,281,508,100 1,290,714,500 21
Road Fund 1,183,384,900 1,236,364,500 22
TOTAL 2,682,547,900 2,875,373,800 23
(1) Debt Service: Included in the above Federal Funds appropriation is 24
$69,146,800 in fiscal year 2026 -2027 and $11,351,900 in fiscal year 2027 -2028 for debt 25
service on already issued Grant Anticipation Revenue Vehicle (GARVEE) Bonds 26
previously appropriated by the General Assembly. 27
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(2) State-Supported Construction Program: Included in the above Road Fund 1
appropriation is $648,691,500 in fiscal year 2026 -2027 and $685,178,900 in fiscal year 2
2027-2028 for the State-Supported Construction Program. 3
(3) Biennial Highway Construction Program: Included in the State -Supported 4
Construction Program is $416,612,100 in fiscal year 2026 -2027 and $503,288,900 in 5
fiscal year 2027 -2028 from the Road Fund for state construction projects and the state 6
match for federal projects in the 2026-2028 Biennial Highway Construction Program. 7
(4) Highway Construction Contingency Account: Included in the State -8
Supported Construction Program is $11,890,000 in each fiscal year for the Highway 9
Construction Contingency Account. Notwithstanding K RS 45.247(2), (4), (5), (6), (7), 10
and (8), the Secretary shall only expend Highway Construction Contingency moneys for 11
projects of an emergency nature or for projects that relieve a hazardous condition. 12
Notwithstanding KRS 224.43-505(2), included in the Highway Construction Contingency 13
Account is $5,000,000 in each fiscal year to support the Kentucky Pride Fund created in 14
KRS 224.43-505. Notwithstanding KRS 45.247 and 177.320(4), included in the Highway 15
Construction Contingency Account is $290,000 in each f iscal year for the Kentucky 16
Transportation Center. Also included in the Highway Construction Contingency Account 17
for Railroads is $1,600,000 in each fiscal year for public safety and service improvements 18
which shall not be expended unless matched with nons tate funds equaling at least 20 19
percent of the total amount for any individual project. Additionally, in each fiscal year, 20
up to $350,000 of the $1,600,000 appropriation may be used to establish and administer 21
the Kentucky Rail Office in the Kentucky Transportation Cabinet. 22
(5) 2024-2026 Biennial Highway Construction Plan: Projects in the enacted 23
2024-2026 Biennial Highway Construction Plan are authorized to continue their current 24
authorization into the 2026 -2028 fiscal biennium. If projects in previously e nacted 25
highway construction plans conflict with the 2026 -2028 Biennial Highway Construction 26
Plan, the projects in the 2026 -2028 Biennial Highway Construction Plan shall control. 27
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The Secretary shall make every effort to maintain highway program delivery by adhering 1
to the timeframes included in the 2026 -2028 Biennial Highway Construction Plan for 2
those projects. It is the intent of the General Assembly that older projects will be removed 3
from the Biennial Highway Construction Plan in future budget bills. 4
(6) State Match Provisions: The Transportation Cabinet is authorized to utilize 5
Road Fund or General Fund state construction moneys or Toll Credits to match federal 6
highway moneys. 7
(7) Federal Aid Highway Funds: If additional federal highway moneys are 8
made a vailable to Kentucky by the United States Congress, the funds shall be used 9
according to the following priority: 10
(a) Any demonstration -specific or project -specific moneys shall be used on the 11
project identified; and 12
(b) All other funds shall be used to ens ure that projects in the fiscal biennium 13
2026-2028 Biennial Highway Construction Plan are funded. 14
If additional federal moneys remain after these priorities are met, the Transportation 15
Cabinet may select projects from the Highway Preconstruction Program. 16
(8) Road Fund Cash Management: The Secretary of the Transportation Cabinet 17
may continue the Cash Management Plan to address the policy of the General Assembly 18
to expeditiously initiate and complete projects in the fiscal biennium 2026 -2028 Biennial 19
Highway Construction Plan. Notwithstanding KRS Chapter 45, specifically including 20
KRS 45.242 and 45.244, the Secretary may concurrently advance projects in the Biennial 21
Highway Construction Plan by employing management techniques that maximize the 22
Cabinet's abilit y to contract for and effectively administer the project work. Under the 23
approved Cash Management Plan, the Secretary shall continuously ensure that the 24
unspent project and Road Fund balances available to the Transportation Cabinet are 25
sufficient to meet e xpenditures consistent with appropriations provided. The 26
Transportation Cabinet shall provide quarterly reports to the Interim Joint Committee on 27
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Appropriations and Revenue when the General Assembly is not in session and the 1
Standing Committees on Appropri ations and Revenue when the General Assembly is in 2
session beginning July 1, 2026. 3
(9) Carry Forward of Appropriation Balances: Notwithstanding KRS 45.229, 4
unexpended Road Fund and General Fund appropriations in the Highways budget unit for 5
the Construction program, the Maintenance program, and the Research program in fiscal 6
year 2025 -2026 and in fiscal year 2026 -2027 shall not lapse but shall carry forward. 7
Unexpended Federal Funds and Restricted Funds appropriations in the Highways budget 8
unit for the Con struction program, the Maintenance program, the Equipment Services 9
program, and the Research program in fiscal year 2025 -2026 and in fiscal year 2026 -10
2027, up to the amount of ending cash balances and unissued Highway and GARVEE 11
Bond Funds, to include any interest income earned on those bond funds, and grant 12
balances shall not lapse but shall carry forward. 13
(10) Federally Supported Construction Program: Included in the above Federal 14
Funds appropriation is $1,175,748,300 in fiscal year 2026 -2027 and $1,242,6 78,700 in 15
fiscal year 2027-2028 for federal construction projects. 16
(11) Highways Maintenance: Included in the above Road Fund appropriation is 17
$459,012,900 in fiscal year 2026 -2027 and $474,012,900 in fiscal year 2027 -2028 for 18
Highways Maintenance. Of this amount, $23,605,400 in fiscal year 2026 -2027 and 19
$38,605,400 in fiscal year 2027 -2028 is to support increased maintenance and snow and 20
ice removal. 21
(12) Delayed Projects Status Report: The Secretary of the Transportation 22
Cabinet shall report by September 30 of each fiscal year to the Interim Joint Committee 23
on Transportation any project included in the enacted Biennial Highway Construction 24
Plan which has been delayed beyond the fiscal year for which the project was authorized. 25
The report shall include: 26
(a) The county name; 27
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(b) The Transportation Cabinet project identification number; 1
(c) The route where the project is located; 2
(d) The length of the project; 3
(e) A description of the project and the scope of improvement; 4
(f) The type of local, state, or federal funds to be used on the project; 5
(g) The stage of development for the design, right -of-way, utility, and 6
construction phases; 7
(h) The fiscal year in which each phase of the project was scheduled to 8
commence; 9
(i) The estimated cost for each phase of the project; 10
(j) A detailed description of the circumstances leading to the delay; and 11
(k) The same information required in paragraphs (a ) to (i) of this subsection for 12
the project or projects advanced with funds initially scheduled for the delayed project. 13
(13) Maintenance Reentry Employment Program: Included in the above Road 14
Fund appropriation is $1,000,000 in each fiscal year to support contracting with a 15
501(c)(3) nonprofit organization or other entity that employs individuals on probation or 16
parole supervision to perform crew -based maintenance services. These individuals shall 17
be selected with input from the Department of Corrections a nd shall provide assistance 18
with litter abatement, graffiti removal, and vegetation control. 19
(14) Federal Highways Match: Notwithstanding KRS 45.229, the General Fund 20
appropriation balance for Federal Highways Match for fiscal years 2025 -2026 and 2026-21
2027 shall not lapse and shall carry forward. 22
(15) Local Assistance Road Program: Included in the State -Supported 23
Construction Program is $70,189,400 in fiscal year 2026 -2027 and $20,000,000 in fiscal 24
year 2027-2028 from the Road Fund to fund the Local Assista nce Road Program to assist 25
with county and city roads. 26
(16) County and City Bridge Improvement Program: Included in the State -27
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Supported Construction Program is $25,000,000 in each fiscal year from the Road Fund 1
to support the County and City Bridge Improvement Program. 2
(17) Grant Anticipation Revenue Vehicle (GARVEE) Bonds Reauthorization: 3
The $150,000,000 GARVEE Bond Funds to be issued for the I -69 Ohio River Crossing 4
pursuant to 2024 Ky. Acts ch. 180, Part I, A., 4., (15) are reauthorized. 5
(18) Grant Anti cipation Revenue Vehicle (GARVEE) Debt Service: Included 6
in the above Federal Funds appropriation is $7,713,200 in fiscal year 2026 -2027 and 7
$15,426,400 in fiscal year 2027 -2028 for debt service payments related to the I -69 Ohio 8
River crossing. Included in the above Road Fund appropriation is $1,928,300 in fiscal 9
year 2026 -2027 and $3,856,600 in fiscal year 2027 -2028 for debt service payments 10
related to the I-69 Ohio River crossing. 11
(19) Grant Anticipation Revenue Vehicle (GARVEE) Bonds Reauthorization: 12
The $150,000,000 GARVEE Bond Funds to be issued for the Brent Spence Bridge 13
Project pursuant to 2022 Ky. Acts ch. 214, Part I, A., 4., (15) are reauthorized. 14
(20) Reauthorized Grant Anticipation Revenue Vehicle (GARVEE) Bonds 15
Debt Service: Included in the above Federal Funds appropriation is $15,426,400 in each 16
fiscal year for debt service payments related to the Brent Spence Bridge Project. Included 17
in the above Road Fund appropriation is $3,856,000 in each fiscal year for debt service 18
payments related to the Brent Spence Bridge Project. 19
(21) Strategic Highway Investment Formula for Tomorrow Scores and 20
Reporting: The Transportation Cabinet shall provide Strategic Highway Investment 21
Formula for Tomorrow (SHIFT) scores for each district and statewide project to the 22
Interim Joint Committee on Appropriations and Revenue by October 1, 2027. 23
(22) Recycled Asphalt Products: The Transportation Cabinet shall not restrict the 24
use of recycled asphalt products for any asphalt mixture used on a project, provided that 25
the asphalt mixture meets the established performance criteria. The Transportation 26
Cabinet shall report on the percentage of recycled asphalt products used in state projects 27
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to the Interim Joint Committee on Appropriations and Revenue on or before November 1, 1
2027. It is the intent of the General Assembly that by 2030, the Transportation Cabinet 2
shall use an asphalt mixture that utilizes 30 percent or greater recycled asphalt products. 3
(23) I-69 Ohio River Crossing - Contingent Funds: Notwithstanding 2024 Ky 4
Acts ch. 223, sec. 55, the General Fund appropriation for the 2024 -2026 Biennial 5
Highway Construction Plan project number 2 -1088.52 shall not be contingent upon 6
receipt of a federal Multimodal Project Discretionary Grant. This appropriation shall 7
instead be contingent upon the project's selection for funding through any Federal 8
Transportation Grant Program or a Federal Transportation Loan Program. 9
(24) I-69 Ohio River Crossing - Design/Build: Notwithstanding KRS 10
176.431(1)(a), the 2024 -2026 Biennial Highway Construction Plan project number 2 -11
1088.52 may utilize design-build procurement methods. 12
(25) I-69 Ohio River Crossing - Financial Plan Ratification: Pursuant to KRS 13
175B.020(10)(a)5., the General Assembly hereby authorizes the Kentucky Public 14
Transportation Infrastructure Authority (KPTIA) to act as the developing and issuing 15
authority as described in KRS 175B.025, as necessary to facilitate the completion, 16
operating, and maintenance of the I -69 Ohio River Crossing Project and hereby ratifies 17
the financial plan for the project adopted by KPTIA Resolution 2025 -1 and the bi -state 18
development agreement for the project approved by KPTIA Resolution 2025-2. 19
(26) I-69 Ohio River Crossing - Reimbursement: Included in the above 20
Restricted Funds appropriation is $20,000,000 in fiscal year 2026-2027 and $150,000,000 21
in fiscal year 2027 -2028 to support reimbursement payments from Indiana for 22
construction expenses on the I-69 Ohio River Crossing. 23
(27) Contractual Increases: Included in the above Restricted Funds appropriation 24
is $3,100,000 in each fiscal year for increased contract costs for contract services with 25
Trimarc and the Cumberland Gap Tunnel. 26
(28) Highway District Lettings: It is the intent of the 2026 General Assembly that 27
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the Transportation Cabinet shall ensur e an equitable distribution of small -scale 1
construction lettings among highway districts. For purposes of this subsection, "small -2
scale construction lettings" means individual construction contracts with an estimated 3
value of less than $20,000,000. This is intended to promote geographic balance in the 4
delivery of smaller construction projects, maintain workforce and contractor participation 5
across all highway districts, and support consistent infrastructure investment statewide. 6
On May 1 and November 1 of e ach fiscal year, the total dollar amount of small -scale 7
construction lettings within each highway district for the previous six months shall be 8
reported to the Interim Joint Committee on Appropriations and Revenue and the Interim 9
Joint Committee on Transpo rtation. Any project that is let in an area that has an 10
emergency declared by the President of the United States shall not count towards this 11
total. 12
(29) Excess and Surplus Property Inventory: The Transportation Cabinet shall, 13
by December 1 of each fiscal year, submit a written report to the Interim Joint Committee 14
on Transportation regarding property acquired for highway construction projects that has 15
been deemed excess or surplus. This report shall include, at a minimum: 16
(a) An identification of all inventory currently classified as excess or surplus; 17
(b) The total number of lots currently held in said inventory; 18
(c) The estimated fair market value of the excess and surplus property; and 19
(d) The total volume and value of excess and surplus property sold du ring the 20
preceding calendar year. 21
(30) Design/Build Procurement: Notwithstanding KRS 176.431, the 22
Transportation Cabinet is authorized to utilize design/build procurement methods for any 23
project in the Biennial Highway Construction Plan. The Transportation Cabinet shall 24
report to the Interim Joint Committee on Transportation by November 1 of each fiscal 25
year. This report shall include but not be limited to identification of all projects utilizing 26
design/build procurement, the current status of each project, and a detailed accounting of 27
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costs incurred and projected for each project. 1
(31) Highway Planning: Included in the above appropriations is $835,500 in 2
Road Fund and $6,219,500 in Federal Funds in each fiscal year to support increased 3
federal funding for the Planning Work Program. 4
5. JUDGMENTS 5
(1) Payment of Judgments: Road Fund resources requi red to pay judgments 6
shall be transferred from the State Construction Account at the time when actual 7
payments must be disbursed from the State Treasury. 8
6. PUBLIC TRANSPORTATION 9
2026-27 2027-28 10
General Fund 14,952,800 14,485,500 11
Restricted Funds 647,200 595,700 12
Federal Funds 41,838,100 41,873,800 13
TOTAL 57,438,100 56,955,000 14
(1) Nonpublic School Transportation: Included in the above General Fund 15
appropriation is $4,800,000 in fiscal year 2026 -2027 and $4,650,000 in fiscal year 2027 -16
2028 for nonpublic school transportation. 17
7. REVENUE SHARING 18
2026-27 2027-28 19
General Fund 24,000,000 26,000,000 20
Road Fund 341,452,400 360,734,600 21
TOTAL 365,452,400 386,734,600 22
(1) County Road Aid Program: Included in the above appropriation s is 23
$129,001,300 in Road Fund in fiscal year 2026 -2027 and $136,303,000 in Road Fund 24
and $13,000,000 in General Fund in fiscal year 2027 -2028 for the County Road Aid 25
Program to be distributed in accordance with KRS 177.320, 179.410, 179.415, and 26
179.440. 27
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(2) Rural Secondary Program: Included in the above Road Fund appropriation 1
is $156,493,400 in fiscal year 2026 -2027 and $165,351,200 in fiscal year 2027 -2028 for 2
the Rural Secondary Program in accordance with KRS 177.320, 177.330, 177.340, 3
177.350, and 177.360. 4
(3) Municipal Road Aid Program: Included in the above appropriations is 5
$54,279,200 in Road Fund in fiscal year 2026 -2027 and $57,351,500 in Road Fund and 6
$13,000,000 in General Fund in fiscal year 2027 -2028 for the Municipal Road Aid 7
Program to be distributed in accordance with KRS 177.365, 177.366, and 177.369. 8
(4) Energy Recovery Road Fund: Included in the above Road Fund 9
appropriation is $181,000 in each fiscal year for the Energy Recovery Road Fund in 10
accordance with KRS 177.977, 177.9771, 177.978, 177.979, and 177.981. 11
(5) Continuation of the Flex Funds and 80/20 Bridge Replacement 12
Programs: The Transportation Cabinet shall continue the Flex Funds and the 80/20 13
Bridge Replacement Programs within the Rural Secondary Program. 14
(6) County Judge/Execu tive Expense Allowance: Notwithstanding KRS 15
67.722, County Judges/Executive not serving in a consolidated local government that 16
served as a County Judge/Executive prior to November 2022 shall receive an annual 17
expense allowance of $3,000. County Judges/Executive newly elected in November 2022 18
or thereafter and those serving in counties with a consolidated local government shall not 19
receive an annual expense allowance. 20
(7) Grant Pool: Included in the above General Fund appropriation is 21
$24,000,000 in fiscal year 2026 -2027 for a grant pool for cities and counties. The 22
administration of these funds shall be subject to the following conditions: 23
(a) Each county shall be eligible to receive up to $100,000 in each fiscal year; 24
however, any county containing a conso lidated local government, an urban -county 25
government, or a county government whose county seat is not a unified city shall be 26
eligible to receive up to $200,000 in each fiscal year; 27
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(b) Each city that serves as a county seat, excluding Lexington and Louisv ille, 1
shall be eligible to receive up to $100,000 in each fiscal year. In the event a county seat 2
does not apply for or exhaust its full allocation within the fiscal year, any remaining 3
funds specifically allocated to that county seat may be made available to other 4
incorporated cities within the same county; 5
(c) Cities and counties shall apply for a grant only for projects located on a city or 6
county road. All grant applications shall include the project and the estimated project 7
cost. Authorized projects s hall include but are not limited to city and county road 8
improvements, construction of new routes, sidewalk construction and repair, multimodal 9
transportation projects, and pavement resurfacing; 10
(d) No grant shall be awarded without a dollar -for-dollar loc al match. Local 11
matching funds shall be derived from sources other than the county or municipal aid 12
funds distributed pursuant to KRS 177.320, 177.366, 177.369, 179.410 and 179.415; and 13
(e) The Department of Rural and Municipal Aid shall administer the gra nt pool. 14
The Department shall submit a report to the Interim Joint Committee on Transportation 15
by December 1 of fiscal year 2027 -2028 detailing the funding amounts authorized, the 16
status of projects, and a summary of completed works. 17
8. VEHICLE REGULATION 18
2025-26 2026-27 2027-28 19
Restricted Funds -0- 23,102,700 21,410,300 20
Federal Funds -0- 4,627,100 4,627,100 21
Road Fund 5,035,600 74,555,500 70,979,900 22
TOTAL 5,035,600 102,285,300 97,017,300 23
(1) Regional Driver Licensing Offices Level of Service Report: The 24
Department of Vehicle Regulation shall develop a level of service report that will provide 25
data regarding the wait times at each regional driver licensing office and an overall 26
statewide summary. This report shall include data of actual wait times from customers’ 27
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arrivals to the time they reach the transaction window, broken down by customers with 1
appointments and walk-ins by each regional driver licensing office. This report shall also 2
include the total number of customer transactions by type of service provided for each 3
regional driver licensing office and recommendations to improve business processes to 4
reduce customer wait times. This report shall be submitted to the Interim Joint Committee 5
on Transportation by September 1, 2027. 6
(2) KINDL Debt Service Increase: Included in the above Road Fund 7
appropriation is $106,000 in each fiscal year to support an increase in debt service for the 8
Kentucky Information Network for Driver Licensing System (KINDL). 9
(3) KINDL Maintenance and Support: Included in the above Road Fund 10
appropriation is $5,000,000 in fiscal year 2026 -2027 and $2,500,000 in fiscal year 2027 -11
2028 to support and maintain the Kentucky Information Network for Driver Licensing 12
System (KINDL). 13
(4) KAVIS Upgrades: Included in the above Restricted Funds appropriation is 14
$3,600,000 in each fiscal year to support further enhancements and connectivity for the 15
Kentucky Automated Vehicle Information System (KAVIS). 16
(5) Designated Motor Vehicle Own er: Included in the above appropriations is 17
sufficient funding to implement and carry out the provisions of 2024 Ky. Acts ch. 45. 18
(6) KAVIS Programming: Included in the above appropriations is sufficient 19
funding to implement and carry out the provisions of 2024 Ky. Acts ch. 123. 20
(7) Online Insurance Verification System: Included in the above appropriations 21
is sufficient funding to implement and carry out the provisions of 2025 Ky. Acts ch. 39. 22
(8) Medical Review Board Compensation: Included in the above appropriations 23
is sufficient funding to implement and carry out the provisions of 2025 Ky. Acts ch. 72. 24
(9) Street-Legal Special Purpose Vehicles: Included in the above appropriations 25
is sufficient funding to implement and carry out the provisions of 2025 Ky. Acts ch. 89. 26
(10) Additional Regional Offices: Included in the above Road Fund appropriation 27
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is $5,035,600 in fiscal year 2025 -2026, $16,079,700 in fiscal year 2026 -2027, and 1
$15,663,900 in fiscal year 2027 -2028 to support three additional regional office s located 2
in Barren County, Bullitt County, and Oldham County. 3
(11) Motor Vehicle Commissioner Investigators: Included in the above 4
Restricted Funds appropriation is $325,900 in each fiscal year to support three new 5
Program Investigator II positions. 6
(12) Vision Testing: Included in the above Road Fund appropriation is $125,000 7
in fiscal year 2027 -2028 to allow a vision testing program for driver's licensing renewal 8
to be completed at public libraries. Each public library may participate in the program to 9
provide vision testing at no cost to the public provided the library has entered into a 10
Memorandum of Agreement with the Transportation Cabinet. The Transportation Cabinet 11
shall be responsible for all associated costs of implementing and operating the progr am, 12
which shall include but not be limited to providing the appropriate training and 13
equipment. 14
TOTAL - TRANSPORTATION CABINET 15
2025-26 2026-27 2027-28 16
General Fund -0- 40,606,800 42,123,200 17
Restricted Funds -0- 262,257,800 390,487,700 18
Federal Funds -0- 1,328,474,000 1,337,716,100 19
Road Fund 5,035,600 1,777,021,000 1,846,843,600 20
TOTAL 5,035,600 3,408,359,600 3,617,170,600 21
PART II 22
CAPITAL PROJECTS BUDGET 23
(1) Capital Construction Fund Appropriations and Reauthorizations: 24
Moneys in the Capi tal Construction Fund are appropriated for the following capital 25
projects subject to the conditions and procedures in this Act. Items listed without 26
appropriated amounts are previously authorized for which no additional amount is 27
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required. These items are listed in order to continue their current authorization into the 1
2026-2028 fiscal biennium. Unless otherwise specified, reauthorized projects shall 2
conform to the original authorization enacted by the General Assembly. 3
(2) Expiration of Existing Line -Item Capital Construction Projects: All 4
appropriations to existing line -item capital construction and information technology 5
projects expire on June 30, 2026, unless reauthorized in this Act with the following 6
exceptions: 7
(a) A construction contract for the pro ject shall have been awarded by June 30, 8
2026; 9
(b) Permanent financing or a short -term line of credit sufficient to cover the total 10
authorized project scope shall have been obtained in the case of projects authorized for 11
bonds, if the authorized project co mpletes an initial draw on the line of credit within the 12
biennium immediately subsequent to the original authorization; and 13
(c) Grant or loan agreements, if applicable, shall have been finalized and properly 14
signed by all necessary parties. 15
Notwithstanding the criteria set forth in this subsection and KRS 45.229 and 16
45.770(5)(d), funds appropriated to the 2022 -2024 and 2024 -2026 fi scal biennia 17
maintenance pools shall not lapse and shall carry forward. 18
(3) Bond Proceeds Investment Income: Investment income earned from bond 19
proceeds beyond that which is required to satisfy Internal Revenue Service arbitrage 20
rebates and penalties and e xcess bond proceeds upon the completion of a bond -financed 21
capital project shall be used to pay debt service according to the Internal Revenue Service 22
Code and accompanying regulations. 23
(4) Appropriations for Projects Not Line -Itemized: Inasmuch as the 24
identification of specific projects cannot be ascertained with absolute certainty at this 25
time, amounts are appropriated for specific purposes to projects which are not 26
individually identified in this Act in the following area: maintenance pools. 27
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Notwithstanding any statute to the contrary, projects estimated to cost $1,000,000 and 1
over and equipment estimated to cost $200,000 and over shall be reported to the Capital 2
Projects and Bond Oversight Committee. 3
A. TRANSPORTATION CABINET 4
Budget Units 2026-27 2027-28 5
1. GENERAL ADMINISTRATION AND SUPPORT 6
001. Maintenance Pool - 2026-2028 7
Road Fund 4,000,000 4,000,000 8
002. Construct Ballard County Maintenance Facility and Salt Storage 9
Reauthorization ($3,513,000 Road Fund) 10
003. Construct Hopkins County Maintenance and Salt Storage Facility 11
Reauthorization ($2,770,000 Road Fund) 12
004. Construct Whitley County Maintenance and Salt Storage Facility 13
Reauthorization ($4,500,000 Road Fund) 14
005. Construct District 2 Office and Materials Lab Reauthorization ($2,000,000 15
Road Fund) 16
006. Construct Regional Salt Structures Reauthorization ($2,000,000 Road Fund) 17
007. Construct Hart County Maintenance and Salt Facility Reauthorization 18
($3,000,000 Road Fund) 19
008. Construct Union County Maintenance and Salt Facility Reauthorization 20
($3,500,000 Road Fund) 21
2. AVIATION 22
001. Aircraft Major Maintenance Pool - 2026-2028 23
Investment Income 1,200,000 1,200,000 24
3. HIGHWAYS 25
001. Road Maintenance Parks - 2026-2028 26
Road Fund 1,500,000 1,500,000 27
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002. Increase Truck Parking Capacity 1
Federal Funds 5,000,000 -0- 2
003. Jefferson County - Lease 3
004. Knott County - Lease 4
PART III 5
FUNDS TRANSFER 6
The General Assembly finds that the financial condition of state government 7
requires the following action. 8
Notwithstanding the statutes or requirements of the Restricted Funds enumerated 9
below, there is transferred to the General Fund the following amounts in fiscal year 2026-10
2027 and fiscal year 2027-2028: 11
2026-27 2027-28 12
A. TRANSPORTATION CABINET 13
1. Aviation 14
Agency Revenue Fund 2,040,400 1,596,600 15
(KRS 183.525(4) and (5)) 16
TOTAL - FUNDS TRANSFER 2,040,400 1,596,600 17
PART IV 18
TRANSPORTATION CABINET BUDGET SUMMARY 19
OPERATING BUDGET 20
2025-26 2026-27 2027-28 21
General Fund -0- 40,606,800 42,123,200 22
Restricted Funds -0- 262,257,800 390,487,700 23
Federal Funds -0- 1,328,474,000 1,337,716,100 24
Road Fund 5,035,600 1,777,021,000 1,846,843,600 25
SUBTOTAL 5,035,600 3,408,359,600 3,617,170,600 26
CAPITAL PROJECTS BUDGET 27
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2025-26 2026-27 2027-28 1
Federal Funds -0- 5,000,000 -0- 2
Road Fund -0- 5,500,000 5,500,000 3
Investment Income -0- 1,200,000 1,200,000 4
SUBTOTAL -0- 11,700,000 6,700,000 5
TOTAL - TRANSPORTATION CABINET BUDGET 6
2025-26 2026-27 2027-28 7
General Fund -0- 40,606,800 42,123,200 8
Restricted Funds -0- 262,257,800 390,487,700 9
Federal Funds -0- 1,333,474,000 1,337,716,100 10
Road Fund 5,035,600 1,782,521,000 1,852,343,600 11
Investment Income -0- 1,200,000 1,200,000 12
TOTAL FUNDS 5,035,600 3,420,059,600 3,623,870,600 13