Kentucky Statutes 48.130 – Budget reduction plan for revenue shortfall of five percent or less to be included in each enacted branch budget bill — Shortfalls over five percent require legislative action
Current as of: 2024 | Check for updates
|
Other versions
(1) The General Assembly shall include in each enacted branch budget bill a budget reduction plan for a revenue shortfall in the general fund or road fund of five percent (5%) or less. The budget reduction plan shall direct how budget reductions shall be implemented if there is a revenue shortfall of five percent (5%) or less.
(2) A layoff of state employees in the executive branch under the budget reduction plan enacted by the General Assembly shall comply with the provisions of KRS
18A.113.
(3) Any revenue shortfall in the general fund or road fund of greater than five percent
(5%) shall require action by the General Assembly.
(4) Upon the issuance of an official revenue estimate by the consensus forecasting group reflecting a revenue shortfall in the general fund or road fund, or upon the existence of an actual revenue shortfall in the general fund or road fund at the close of a fiscal year as determined by the Office of State Budget Director, the Office of State Budget Director shall notify all branches of government. If the revenue shortfall is five percent (5%) or less, the following actions shall be taken:
(a) The unappropriated balance of funds in the surplus accounts of the general fund or road fund shall first be used to meet the shortfalls in those respective funds; and
(b) If the amounts described in paragraph (a) of this subsection are insufficient to address the revenue shortfall, the enacted budget reduction plan included in each branch budget bill shall be implemented.
(5) The budget reduction plan for each branch of government may provide that the annual increment granted state employees under KRS § 18A.355 shall be reduced as provided by KRS § 18A.355. Any reduction of the annual increment shall be uniform for all employees.
(6) No budget reduction action shall be taken by any branch head in excess of the actual or projected deficit.
(7) If general fund or road fund tax receipts increase over the revenues estimated in the official revenue estimate that resulted in reductions, then services may be restored in the reverse order of the reduced services.
Effective: June 29, 2023
History: Amended 2023 Ky. Acts ch. 35, sec. 8, effective June 29, 2023. — Amended
2009 Ky. Acts ch. 78, sec. 6, effective June 25, 2009. — Amended 2000 Ky. Acts ch.
46, sec. 17, effective July 14, 2000. — Amended 1994 Ky. Acts ch. 387, sec. 2, effective July 15, 1994. — Amended 1990 Ky. Acts ch. 507, sec. 9, effective July 13,
1990. — Amended 1988 Ky. Acts ch. 273, sec. 5, effective July 15, 1988. — Amended 1986 Ky. Acts ch. 494, sec. 23, effective July 15, 1986. — Created 1982
Ky. Acts ch. 450, sec. 13, effective July 1, 1983.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. VI at 1757.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. VII at 1758.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. VIII at 1758.
(2) A layoff of state employees in the executive branch under the budget reduction plan enacted by the General Assembly shall comply with the provisions of KRS
Terms Used In Kentucky Statutes 48.130
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- branch budget: means an enactment by the General Assembly which provides appropriations and establishes fiscal policies and conditions for the biennial financial plan for the judicial branch, the legislative branch, and the executive branch, which shall include a separate budget bill for the Transportation Cabinet. See Kentucky Statutes 446.010
- Budget: means the complete financial plan for each fiscal year contained in a branch budget bill provided for by this chapter. See Kentucky Statutes 48.010
- Consensus forecasting group: means the group established by KRS §. See Kentucky Statutes 48.010
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Fund: means an independent fiscal and accounting entity with a self-balancing set of accounts recording cash or other resources or both together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities in accordance with legal restrictions or other limitations, to include:
(a) "General Fund. See Kentucky Statutes 48.010 - Receipts: includes the following:
(a) "Nonrevenue receipts" means values accruing that either decrease an asset or create a liability. See Kentucky Statutes 48.010 - Revenue shortfall: means either:
(a) An official revenue estimate for either the general fund or road fund that is less than the enacted estimates. See Kentucky Statutes 48.010 - State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Surplus: means the undesignated fiscal year ending fund balance for the general fund or road fund, reduced by amounts designated to carry forward for appropriation in a subsequent fiscal year. See Kentucky Statutes 48.010
18A.113.
(3) Any revenue shortfall in the general fund or road fund of greater than five percent
(5%) shall require action by the General Assembly.
(4) Upon the issuance of an official revenue estimate by the consensus forecasting group reflecting a revenue shortfall in the general fund or road fund, or upon the existence of an actual revenue shortfall in the general fund or road fund at the close of a fiscal year as determined by the Office of State Budget Director, the Office of State Budget Director shall notify all branches of government. If the revenue shortfall is five percent (5%) or less, the following actions shall be taken:
(a) The unappropriated balance of funds in the surplus accounts of the general fund or road fund shall first be used to meet the shortfalls in those respective funds; and
(b) If the amounts described in paragraph (a) of this subsection are insufficient to address the revenue shortfall, the enacted budget reduction plan included in each branch budget bill shall be implemented.
(5) The budget reduction plan for each branch of government may provide that the annual increment granted state employees under KRS § 18A.355 shall be reduced as provided by KRS § 18A.355. Any reduction of the annual increment shall be uniform for all employees.
(6) No budget reduction action shall be taken by any branch head in excess of the actual or projected deficit.
(7) If general fund or road fund tax receipts increase over the revenues estimated in the official revenue estimate that resulted in reductions, then services may be restored in the reverse order of the reduced services.
Effective: June 29, 2023
History: Amended 2023 Ky. Acts ch. 35, sec. 8, effective June 29, 2023. — Amended
2009 Ky. Acts ch. 78, sec. 6, effective June 25, 2009. — Amended 2000 Ky. Acts ch.
46, sec. 17, effective July 14, 2000. — Amended 1994 Ky. Acts ch. 387, sec. 2, effective July 15, 1994. — Amended 1990 Ky. Acts ch. 507, sec. 9, effective July 13,
1990. — Amended 1988 Ky. Acts ch. 273, sec. 5, effective July 15, 1988. — Amended 1986 Ky. Acts ch. 494, sec. 23, effective July 15, 1986. — Created 1982
Ky. Acts ch. 450, sec. 13, effective July 1, 1983.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. VI at 1757.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. VII at 1758.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. VIII at 1758.