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AN ACT making appropriations for the operations, maintenance, support, and 1
functioning of the Judicial Branch of the gov ernment of the Commonwealth of Kentucky 2
and its various officers, boards, commissions, subdivisions, and other state -supported 3
activities. 4
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 5
Section 1. The Judicial Branch Budget is as follows: 6
PART I 7
OPERATING BUDGET 8
(1) Funds Appropriations: There is appropriated out of the General Fund, 9
Restricted Funds accounts, or Federal Funds accounts for the fiscal year beginning July 1, 10
2025, and ending June 30, 2026, for the fiscal year beginning July 1, 2026, and ending 11
June 30, 2027, and for the fiscal year beginning July 1, 2027, and ending June 30, 2028, 12
the following sums to be used for the purposes of the Judicial Branch of the governme nt 13
of the Commonwealth of Kentucky, including the Supreme Court, Court of Appeals, 14
Circuit Court, Family Court, District Court, the Administrative Office of the Courts, 15
Judicial Retirement, Local Facilities Fund, Local Facilities Use Allowance Contingency 16
Fund, and for services performed by the Circuit Court Clerks' offices, including both 17
Circuit and District Court support. 18
A. JUDICIAL BRANCH 19
Budget Units 20
1. COURT OF JUSTICE 21
a. Court Operations and Administration 22
2025-26 2026-27 2027-28 23
General Fund -0- 344,440,300 348,471,700 24
Restricted Funds 13,629,600 57,506,000 57,853,700 25
Federal Funds -0- 1,546,600 1,391,000 26
TOTAL 13,629,600 403,492,900 407,716,400 27
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(1) Full Funding of Current Services: Included in the above General Fund 1
appropriation is $5,000,000 in each fiscal year to support additional judgeships 2
established in the 2022 Regular Session. 3
(2) Funds Required to Maintain Mandated Services: Included in the above 4
General Fund appropriation is $7,561,000 in fiscal year 2026 -2027 and $7,200,000 in 5
fiscal year 2027 -2028 to maintain mandated services including information technology 6
subscription fees, audio/visual system upgrades, and contractor rate increases. 7
(3) Civil Filing Fees: Pursuant to its authority, if the Supreme Cou rt increases 8
civil filing fees, the additional income resulting from the fee increases, not to exceed 9
$20,468,100 in each fiscal year, shall be deposited into a trust and agency account for 10
court operations and salaries for non -elected personnel. Any reven ue generated by the 11
increase in excess of the $20,468,100 in each fiscal year shall be deposited into the 12
General Fund. The Administrative Office of the Courts shall prepare a report with 13
recommendations for changes to civil filing fees, including but not limited to the amount 14
of revenue generated from any proposed changes, the use of any additional revenue 15
generated, the number of Circuit and District Court filings for the prior three years, and a 16
schedule for any future changes to fee structure. The repor t shall be submitted to the 17
Interim Joint Committee on Appropriations and Revenue by October 1, 2027. 18
(4) Utilization of Video Arraignment Technology: (a) Notwithstanding any 19
statute to the contrary, courts shall use the video arraignment system set forth in 2021 Ky. 20
Acts ch. 194, sec. 14(1)(a), when available. 21
(b) Notwithstanding any statute to the contrary, if a court does not use the video 22
arraignment system referenced in paragraph (a) of this subsection, when available, the 23
Administrative Office of the Courts shall be responsible for the costs associated with 24
transporting prisoners to and from arraignments. The Administrative Office of the Courts 25
shall prepare a report to be submitted to the Interim Joint Committee on Appropriations 26
and Revenue by Octo ber 1, 2027, detailing the utilization of the video arraignment 27
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system, including identifying any impediments that decrease utilization, by courtroom 1
and by judge. 2
(5) Operating Expense Reduction: The State Auditor has identified that in fiscal 3
year 2024-2025, the Judicial Branch spent $5,088,350 on the expense code Other (E399). 4
The Chief Justice and the Director of the Administrative Office of the Courts shall 5
prepare a report detailing the expenditures on expense code Other (E399) including, but 6
not limi ted to drug testing, cloud services, and information technology services. The 7
Director of the Administrative Office of the Courts shall submit the report to the Interim 8
Joint Committee on Appropriations and Revenue by October 1, 2026. 9
(6) Support for Current Services: Pursuant to KRS 27A.055(4), included in the 10
above Restricted Funds appropriation is $13,629,600 in fiscal year 2025 -2026 to support 11
the Court Operations and Administration budget unit and replace, in part, reduced 12
revenues received by the Mas ter Commissioner’s Fund established in KRS 31A.010(4). 13
Notwithstanding KRS 45.229, any portion of these funds that have not been expended by 14
the end of fiscal year 2025 -2026 shall not lapse and shall carry forward into fiscal year 15
2026-2027, and any portio n of these funds that have not been expended by the end of 16
fiscal year 2026-2027 shall not lapse and shall carry forward into fiscal year 2027-2028. 17
b. Local Facilities Fund 18
2025-26 2026-27 2027-28 19
General Fund -0- 136,303,000 149,205,200 20
Restricted Funds 8,910,400 8,380,000 380,000 21
TOTAL 8,910,400 144,683,000 149,585,200 22
(1) Uninsured Costs Due to Flooding: Pursuant to KRS 27A.055(4), included in 23
the above Restricted Funds appropriation is $8,910,400 in fiscal year 2025 -2026 for file 24
restoration, remediation, and repairs due to flooding in Franklin and Hardin Counties. 25
Notwithstanding KRS 45.229, any unexpended funds shall not lapse and shall carry 26
forward. 27
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(2) Local Facility Projects: Included in the above General Fund appropriation is 1
$13,652,200 in fiscal year 2027 -2028 to support the use allowance costs for five judicial 2
centers authorized by the 2024 General Assembly. 3
(3) Funding of Current Services: Included in the above General Fund 4
appropriation is $1,000,000 in each fiscal year to fund current services. 5
(4) Boyle County Temporary Space and Fit -up: Pursuant to KRS 27A.055(4), 6
included in the above Restricted Funds appropriation is $5,260,000 in fiscal year 2026 -7
2027 and $260,000 in fiscal year 2027 -2028 for leased space and fit -up for all court and 8
clerk functions. 9
(5) Boyle County - Use Allowance: Included in the above General Fund 10
appropriation is $192,300 in each fiscal year to support use allowance for Boyle County. 11
(6) Bell County Temporary Space and Fit -up: Pursuant to KRS 27A.055( 4), 12
included in the above Restricted Funds appropriation is $3,120,000 in fiscal year 2026 -13
2027 and $120,000 in fiscal year 2027 -2028 for leased space and fit -up for all court and 14
clerk functions. 15
(7) Bell County Use Allowance and Equipment: Included in the above General 16
Fund appropriation is $2,806,100 in fiscal year 2026 -2027 to support use allowance and 17
equipment and $2,056,100 in fiscal year 2027 -2028 to support use allowance. The 18
Administrative Office of the Courts shall pursue any and all potential cl aims for liability 19
associated with damages stemming from subpar construction of the Bell County Judicial 20
Center. 21
(8) Local Court Facility Compensation: Included in the above General Fund 22
appropriation are moneys to compensate local units of government for providing court 23
space and for costs incurred in the development of local court facilities as defined in KRS 24
Chapter 26A and provided for in Part II, Capital Projects Budget, of this Act, and to 25
perform all other acts required or authorized by KRS Chapter 26A. 26
(9) Use Allowance Payments to Counties: Pursuant to KRS 26A.090(2), 27
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beginning with court facility construction or renovation projects authorized by the 2000 1
Regular Session of the General Assembly and all subsequent court facility projects, use 2
allowance payments are restricted to the court's pr oportional share of the annual principal 3
and interest costs in connection with the construction or renovation of the facility, not to 4
exceed the authorized annual use allowance. 5
(10) Court Facility Maintenance Fund: (a) Notwithstanding KRS 6
26A.090(2), when there is no debt on court facility construction or renovation projects 7
authorized prior to the 2000 Regular Session of the General Assembly, use allowance is 8
restricted to compensation equal to two percent annually of capital costs to be paid to the 9
county unit of government and two percent annually to be retained by the Administrative 10
Office of the Courts and directed to a separate fund specifically for maintenance of court 11
facilities. 12
(b) The fund created pursuant to paragraph (a) of this subsection shal l be used for 13
routine, ongoing, planned, and unanticipated maintenance for court facilities. 14
(c) Notwithstanding KRS 45.750, any maintenance project estimated to cost 15
$3,000,000 or less for a local court facility is not considered to be a capital project 16
requiring authorization of the General Assembly in the Judicial Branch Budget and may 17
be completed using funds appropriated to the Judicial Branch for maintenance of local 18
facilities or other agency funds of the Judicial Branch. The Administrative Office o f the 19
Courts shall report any maintenance project estimated to cost between $1,000,000 and 20
$3,000,000 to the Capital Projects and Bond Oversight Committee. 21
(11) Maintenance Pool: Included in the above General Fund appropriation is 22
$3,000,000 in each fiscal year to create a maintenance pool for planned and unanticipated 23
non-capital projects for local courthouses and judicial centers. 24
(12) Asset Preservation Pool - HVAC, Roof, and Electrical Upgrades: The 25
Administrative Office of the Courts shall prepare a re port on the Asset Preservation - 26
HVAC, Roof, Electrical project authorized in 2024 Ky. Acts ch. 148, Part II, A., 1., 007., 27
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including but not limited to the projects funded in the asset preservation pool, the current 1
status of each project and projected co mpletion date, and the amount expended on each 2
project and for the pool in total. The Administrative Office of the Courts shall submit this 3
report on a quarterly basis beginning November 1, 2026, to the Interim Joint Committee 4
on Appropriations and Revenue. 5
(13) Asset Preservation Pool - Renovations: The Administrative Office of the 6
Courts shall prepare a report on the Asset Preservation - Renovations project authorized 7
in 2024 Ky. Acts ch. 148, Part II, A., 1., 008., including but not limited to the projec ts 8
funded in the asset preservation pool, the current status of each project and projected 9
completion date, and the amount expended on each project and for the pool in total. The 10
Administrative Office of the Courts shall submit this report on a quarterly b asis 11
beginning November 1, 2026, to the Interim Joint Committee on Appropriations and 12
Revenue. 13
c. Local Facilities Use Allowance Contingency Fund 14
(1) Funds Carry Forward: Notwithstanding KRS 45.229, any unexpended 15
balance remaining at the close of fiscal year 2025-2026 shall not lapse and shall continue 16
into fiscal year 2026 -2027, and any unexpended balance remaining at the close of fiscal 17
year 2026-2027 shall not lapse and shall continue into fiscal year 2027 -2028 to provide 18
for cost overruns in authorized court facilities projects not to exceed 15 percent of the use 19
allowance in accordance with KRS Chapter 26A. 20
TOTAL – COURT OF JUSTICE 21
General Fund -0- 480,743,300 497,676,900 22
Restricted Funds 22,540,000 65,886,000 58,233,700 23
Federal Funds -0- 1,546,600 1,391,000 24
TOTAL 22,540,000 548,175,900 557,301,600 25
2. JUDICIAL FORM RETIREMENT SYSTEM 26
2026-27 2027-28 27
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Restricted Funds 645,500 652,300 1
(1) Administrative Expenses: Pursuant to KRS 21.540, administrative expenses 2
shall be paid out of a n administrative account which shall be funded by transfers of the 3
necessary moneys, in appropriate ratio, from the funds described in KRS 21.550 and 4
21.560. Notwithstanding Part III, 7. of this Act, Restricted Funds appropriations may be 5
increased to ensure sufficient funding to support the Judicial Form Retirement System. 6
(2) Pension Benefit Increase: Notwithstanding KRS 21.405(5), no pension 7
benefit increase shall be granted to recipients of a retirement allowance under KRS 8
21.345 to 21.580 on July 1, 2026, or July 1, 2027. 9
TOTAL - JUDICIAL BRANCH 10
2025-26 2026-27 2027-28 11
General Fund -0- 480,743,300 497,676,900 12
Restricted Funds 22,540,000 66,531,500 58,886,000 13
Federal Funds -0- 1,546,600 1,391,000 14
TOTAL 22,540,000 548,821,400 557,953,900 15
PART II 16
CAPITAL PROJECTS BUDGET 17
(1) Authorization of Capital Projects: It is the intent of the General Assembly 18
that any capital project proposed by any state government entity, including the agencies 19
and subdivisions of the Court of Justice, shall be authorized by the General Assembly 20
prior to the project’s financing and con struction, in accordance with KRS 7A.010, 21
7A.120, 45.750, 45.760, 45.763, 45.765, and 48.110. Pursuant to KRS 45.760(1), the 22
amount allotted, from all sources, for expenditure on any capital project, including leases 23
as defined by KRS 45.750, shall not exceed the estimated cost as shown in this Act. 24
(2) Capital Projects and Bond Oversight Committee: Capital construction 25
projects and major items of equipment that are not specifically listed in this Act may be 26
authorized only after submission of the project t o the Capital Projects and Bond 27
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Oversight Committee and in accordance with the other requirements of KRS 45.760(7). 1
Moneys may be transferred to the allotment account of any capital project only after 2
submission of the project to the Capital Projects and B ond Oversight Committee and in 3
accordance with the other requirements of KRS 45.760(6). As required by KRS 45.760, 4
all capital construction items authorized in this Act shall be constructed in accordance 5
with this Act, supporting documentation considered b y the General Assembly, and 6
Judicial Branch budget records. Any modifications to the scope of a capital construction 7
project or to a lease shall be reported to the Capital Projects and Bond Oversight 8
Committee before execution. 9
(3) Deferred Funding: General Fund support to provide operating costs of 10
$1,911,000 and $3,000,000 for nonrecurring equipment and furniture for five projects 11
authorized by the 2024 General Assembly is deferred to the 2028-2030 fiscal biennium. 12
(4) Court Facility Planning Process: A f easibility study completed by a 13
certified architect not otherwise involved with the project shall be provided to the Project 14
Development Board to assist in making a determination whether the needs of the 15
community and the Court of Justice can best be met t hrough the construction of a 16
freestanding building, or through an addition and/or renovation of the existing court 17
facility. 18
(5) Local Facilities Use Allowance Contingency Fund: For any court facility 19
project which is occupied and use allowance funding is insufficient, the use allowance 20
payments shall be approved from the Local Facilities Use Allowance Contingency Fund. 21
If funds are not available in the Local Facilities Use Allowa nce Contingency Fund, the 22
Chief Justice may transfer funds from other Judicial Branch accounts to make the 23
necessary payments. 24
(6) Facility Title: Pursuant to KRS Chapter 26A, Hardin County shall accept title 25
to the facility as set out in 2022 Ky. Acts ch. 162, Part II, A., 2., 004., Hardin County - 26
HVAC Project, within six months of notification by the Administrative Office of the 27
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Courts of the completion of the project. Notwithstanding KRS Chapter 26A.090(2), no 1
use allowance shall be provided for this f acility if Hardin County does not accept title as 2
provided in this subsection. 3
A. JUDICIAL BRANCH 4
Budget Unit 2026-27 2027-28 5
1. LOCAL FACILITIES FUND 6
Project Project Scope 7
001. Boyle County - Roof Replacement 2,000,000 8
002. Bell County - Renovation 20,910,000 9
2. LEASE AUTHORIZATIONS 10
001. Franklin County - Lease - Court of Appeals 11
002. Jefferson County - Lease - Parking 12
003. Madison County - Lease - Family Court 13
PART III 14
GENERAL PROVISIONS 15
1. Expenditure Authority: The Director of the Administr ative Office of the 16
Courts, with the approval of the Chief Justice, may expend any of the funds appropriated 17
for court operations and administration in any lawful manner and for any legal purpose 18
that the Chief Justice shall authorize or direct. No executi ve agency of state government 19
shall have the power to restrict or limit the expenditure of funds appropriated to the 20
Judicial Branch of government, except that funds appropriated in this Act shall not be 21
expended for any purpose not specifically authorized by the General Assembly in this 22
Act. The Court of Justice shall prepare a report of actual expenditures citing specific 23
statutory or budgetary authorization for the reported expenditures and detailing 24
expenditures for the Supreme Court, Court of Appeals, Circuit Court, Family Court, 25
District Court, Administrative Office of the Courts, Judicial Retirement, Local Facilities 26
Fund, Local Facilities Use Allowance Contingency Fund, and for services performed by 27
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the Circuit Court Clerks' offices. The Court of Ju stice shall provide this report on a 1
quarterly basis to the Interim Joint Committee on Appropriations and Revenue. 2
2. Severability of Budget Provisions: Appropriation items and sums in this Act 3
conform to KRS 48.311. If any section, any subsection, or any provision thereof shall be 4
invalid or unconstitutional, the decision of the courts shall not affect or impair any of the 5
remaining sections, subsections, or provisions. 6
3. Duplicate Appropriations: Any appropriation item and sum in this Act and 7
in an appropriation provision in another Act of the 2026 Regular Session of the General 8
Assembly which constitutes a duplicate appropriation shall be governed by KRS 48.312. 9
4. Priority of Individual Appropriations: KRS 48.313 shall control when a 10
total or subtotal figure in this Act conflicts with the sum of the appropriations of which it 11
consists. 12
5. Carry Forward of Funds: Notwithstanding KRS 45.229, any unexpended 13
balance remaining at the close of the fiscal years ending June 30, 2026, June 30, 2027, 14
and June 30, 2028, shall not lapse and shall continue into the next fiscal year. 15
6. Final Budget Document: The Director of the Administrative Office of the 16
Courts shall prepare a final budget document reflecting the 2026 -2028 biennial budget of 17
the Court of Justice. A copy shall be provided to the Legislative Research Commission, 18
and an informational copy shall be furnished to the Finance and Administration Cabinet, 19
within 60 days of the adjournment of the 2026 Regular Session of the General Assembly. 20
7. Appropriations Revisions: Notwithstanding KRS 48.630(10), no 21
appropriation from any fund source shall exceed the sum specified in this Act until the 22
Judicial Branch has documented the necessity, purpose, use, and source, and the 23
documentation has been submitted to the I nterim Joint Committee on Appropriations and 24
Revenue at least 30 days in advance for its review and action. The Director of the 25
Administrative Office of the Courts shall notify, on a timely basis, the Legislative 26
Research Commission of the most current est imates of anticipated receipts for the 27
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affected fiscal year and an accompanying statement which explains variations from the 1
anticipated amount. 2
8. Maximum Salary of Trial Commissioners: Notwithstanding KRS 3
24A.100(3), no trial commissioner shall be compen sated at a rate greater than $2,000 per 4
year. No funding is provided for trial commissioners commissioned in counties with a 5
residing District Judge. 6
9. Authorized Personnel Complement: On July 1, 2026, the Administrative 7
Office of the Courts shall establish a record for each budget unit of authorized permanent 8
full-time and all other positions based upon the enacted Judicial Budget of the 9
Commonwealth and any adjustments authorized by provisions in this Act. The total 10
number of filled permanent full -time a nd all other positions shall not exceed the 11
authorized complements pursuant to this section. The Director of the Administrative 12
Office of the Courts may request an increase in the number of authorized positions to the 13
Chief Justice. Upon approval, the Admi nistrative Office of the Courts may authorize the 14
employment of individuals in addition to the authorized complement. A report of the 15
actions authorized in this section shall be provided to the Interim Joint Committee on 16
Appropriations and Revenue on a monthly basis. 17
10. Debt Restructuring: Notwithstanding any other provision of the Kentucky 18
Revised Statutes, use allowance payments shall not be amended to reflect debt 19
restructuring transactions undertaken by a county during the 2026-2028 fiscal biennium. 20
11. Court Facility Maintenance Fund Report: For each of the periods ending 21
June 30, 2026, June 30, 2027, and June 30, 2028, the Director of the Administrative 22
Office of the Courts shall prepare a court facility maintenance report. This report shall 23
detail all court facility maintenance undertaken by the Court of Justice, to include any 24
cost-sharing with counties, as well as detail regarding future maintenance needs. This 25
report shall include a statewide expenditure summary followed by individual county 26
expenditures detailing the state's and county's respective share of expenditures. The 27
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Administrative Office of the Courts shall provide this report to the Interim Joint 1
Committee on Appropriations and Revenue by September 15 of each fiscal year. 2
12. Biennial A udits: The Auditor of Public Accounts shall have the right to 3
review, upon request, the accountant’s work papers. 4
13. Budgetary Restructuring: The Court of Justice shall prepare a report to be 5
submitted to the Interim Joint Committee on Appropriations and Revenue by September 6
1 of each fiscal year detailing the existing budget processes of the Court of Justice and 7
the actual expenditure of funds from the prior fiscal year and budgeted expenditures for 8
the current fiscal year by fund source and individual lo cation or office, for the Supreme 9
Court, Court of Appeals, Circuit Court, Family Court, District Court, Administrative 10
Office of the Courts, Judicial Retirement, Local Facilities Fund, Local Facilities Use 11
Allowance Contingency Fund, and for services perfo rmed by the Circuit Court Clerks' 12
offices. 13
14. Unexpended Use Allowance: Notwithstanding any provision of the 14
Kentucky Revised Statutes, any General Fund moneys appropriated for project -related 15
expenses or use allowance payments in fiscal years 2026 -2027 a nd 2027 -2028 that are 16
not expended specifically for project -related expenses or use allowance payments in the 17
fiscal year in which appropriated shall be transferred to the Budget Reserve Trust Fund 18
Account (KRS 48.705). 19
15. Salary Increase for Personnel: Notwithstanding KRS 64.480(2), included in 20
the General Fund, Restricted Funds, and Federal Funds appropriations in Part I of this 21
Act are sufficient funds to support a two percent salary increase on the base salary and 22
wages of each eligible employee effective July 1, 2026, and a two percent increase on the 23
base salary or wages of each eligible employee effective July 1, 2027. 24
16. Application for Federal Funds: Notwithstanding any statute to the contrary, 25
the Court of Justice shall report to the Interim Join t Committee on Appropriations and 26
Revenue, within 30 days, any new federally funded programs for which funding had not 27
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previously been awarded without authorization by the General Assembly. 1
17. Operational Expenditures Data: The Director of the Administrat ive Office 2
of the Courts shall, by October 1, 2026, submit a report to the Legislative Oversight and 3
Investigations Committee and the Interim Joint Committee on Appropriations and 4
Revenue with the following information and data pertaining to the historical and 5
projected operational expenditures for each budget unit: 6
(1) Identifying information of the budget unit; and 7
(2) A description of each program, function, service, or benefit provided by the 8
budget unit, including but not limited to the following: 9
(a) Measurable outcome data for the program, function, service, or benefit 10
provided in fiscal year 2025 -2026 and projected for fiscal years 2026 –2027 and 2027 –11
2028 for programs, functions, services, or benefits that are statutorily mandated; 12
(b) Measurable out come data for the program, function, service, or benefit 13
provided in fiscal year 2025 -2026 and projected for fiscal years 2026 –2027 and 2027 –14
2028 for programs, functions, services, or benefits that are not statutorily mandated; 15
(c) Identification of any co ntracts or grants with other state budget units or 16
external providers engaged to provide or assist in providing the program, function, 17
service, or benefit in fiscal years 2025-2026, 2026-2027, or 2027-2028; 18
(d) The number of full -time, part-time, and other filled positions assigned to the 19
program, function, service, or benefit on July 1 of each fiscal year; 20
(e) The number and projected cost of all temporary manpower service personnel 21
assigned to the program, function, service, or benefit as of July 1 each fiscal year; 22
(f) The actual expenditures, by fund source, for each program, function, service, 23
or benefit for fiscal year 2025-2026; 24
(g) The projected expenditures, by fund source, by fiscal year, for each program, 25
function, service, or benefit for fiscal years 2026-2027 and 2027-2028; and 26
(h) The actual balance of any Restricted Funds or Agency Trust Funds assigned 27
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to the program, function, service, or benefit as of July 1, 2026, and projected to be on 1
July 1, 2027, and July 1, 2028. 2
The information shall b e submitted only in a format prescribed by the Legislative 3
Oversight and Investigations Committee. 4
The Director of the Administrative Office of the Courts shall, within 30 days, 5
provide any follow -up or additional information on the programs, functions, s ervices, or 6
benefits requested by the Legislative Research Commission or a subcommittee thereof. 7
18. Budget Implementation: The General Assembly directs the Judicial Branch 8
to carry out all appropriations and budgetary language provisions as contained in t he 9
Judicial Branch Budget. The Legislative Research Commission shall review quarterly 10
expenditure data to determine if the Judicial Branch is out of compliance with this 11
directive. If the Legislative Research Commission suspects that the Judicial Branch ha s 12
acted in nonconformity with this section, the Legislative Research Commission may 13
order an audit or review at the Judicial Branch's expense. Such audit findings, reviews, 14
and reports shall be subject to the Kentucky Open Records Act. The Chief Justice sh all 15
provide, in the form and manner prescribed by the Legislative Research Commission, a 16
comprehensive annual report, beginning September 1, 2026, to the Interim Joint 17
Committee on Appropriations and Revenue detailing expenditures related to the 18
appropriations contained within the budgetary language provisions for each budget unit 19
within the Judicial Branch. If a budget unit does not expend the full General Fund 20
appropriation contained within a budgetary language provision, the unexpended funds 21
shall be transferred to the Budget Reserve Trust Fund Account (KRS 48.705). 22
19. Budgetary Priorities: Funds appropriated in this Act are deemed sufficient to 23
maintain the mandatory functions of the Court of Justice. The Chief Justice shall 24
prioritize the expenditure o f funds to maintain current service levels of the constitutional 25
functions of the Court of Justice and shall have the discretion to fund any additional 26
functions to the extent funds are available. If, in the 2026-2028 fiscal biennium, the Chief 27
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Justice ide ntifies a budget shortfall, reductions shall be made to those functions not 1
explicitly authorized by statute or the Constitution of Kentucky. 2
PART IV 3
BUDGET REDUCTION OR SURPLUS EXPENDITURE PLAN 4
The Judicial Branch shall participate in any Budget Reduction Plan or Surplus 5
Expenditure Plan in accordance with KRS Chapter 48, except that obligations essential to 6
the constitutional duties and use allowance of the Judicial Branch shall be exempt from 7
any Budget Reduction Plan. The level of participation in a Bud get Reduction Plan shall 8
be at the discretion of the Chief Justice and shall not exceed the actual percentage of 9
revenue shortfall. 10