UNOFFICIAL COPY 24 RS HB 264/GA
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AN ACT making appropriations for the operations, maintenance, support, and 1
functioning of the Judicial Branch of the government 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
2023, and ending June 30, 2024, for the fiscal year beginning July 1, 2024, and ending 11
June 30, 2025, and for the fiscal year beginning July 1, 2025, and ending June 30, 2026, 12
the following sums to be used for the purposes of the Judicial Branch of the government 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
2024-25 2025-26 23
General Fund 318,178,000 326,303,900 24
Restricted Funds 51,521,100 52,123,700 25
Federal Funds 3,499,100 1,818,300 26
TOTAL 373,198,200 380,245,900 27 UNOFFICIAL COPY 24 RS HB 264/GA
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(1) Civil Filing Fees: Pursuant to its authority, if the Supreme Court retains the 1
increases in civil filing fees that were effective in 2008 and 2018, the additional income 2
resulting from the fee increases, not to exceed $15,468,100 in each fiscal year, shall be 3
deposited into a trust and agency account for court operations and salaries for non-elected 4
personnel. Any revenue generated by these increases in excess of the $15,468,100 in each 5
fiscal year shall be deposited into the General Fund. 6
(2) Additional Positions: Included in the above General Fund appropriation is 7
$563,500 in fiscal year 2024-2025 and $528,500 in fiscal year 2025-2026 to support 8
additional positions. 9
b. Local Facilities Fund 10
2024-25 2025-26 11
General Fund 134,918,000 142,632,600 12
(1) Local Facility Projects: Included in the above General Fund appropriation is 13
$3,219,100 in fiscal year 2024-2025 and $8,207,200 in fiscal year 2025-2026 to support 14
the use allowance, operating, and non-recurring furniture and equipment costs for six 15
judicial centers authorized by the 2020 General Assembly and two judicial center projects 16
authorized by the 2022 General Assembly. 17
(2) Local Court Facility Compensation: Included in the above General Fund 18
appropriation are moneys to compensate local units of government for providing court 19
space and for costs incurred in the development of local court facilities as defined in KRS 20
Chapter 26A and provided for in Part II, Capital Projects Budget, of this Act, and to 21
perform all other acts required or authorized by KRS Chapter 26A. 22
(3) Use Allowance Payments to Counties: Pursuant to KRS 26A.090(2), 23
beginning with court facility construction or renovation projects authorized by the 2000 24
Regular Session of the General Assembly and all subsequent court facility projects, use 25
allowance payments are restricted to the court's proportional share of the annual principal 26
and interest costs in connection with the construction or renovation of the facility, not to 27 UNOFFICIAL COPY 24 RS HB 264/GA
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exceed the authorized annual use allowance. 1
(4) Court Facility Maintenance Fund: (a) Notwithstanding KRS 2
26A.090(2), when there is no debt on court facility construction or renovation projects 3
authorized prior to the 2000 Regular Session of the General Assembly, use allowance is 4
restricted to compensation equal to two percent annually of capital costs to be paid to the 5
county unit of government and two percent annually to be retained by the Administrative 6
Office of the Courts and directed to a separate fund specifically for maintenance of court 7
facilities. 8
(b) The fund created pursuant to paragraph (a) of this subsection shall be used for 9
routine, ongoing, planned, and unanticipated maintenance for court facilities. 10
(5) Maintenance Pool: Included in the above General Fund appropriation is 11
$3,000,000 in each fiscal year to create a maintenance pool for planned and unanticipated 12
non-capital projects for local courthouses and judicial centers. 13
(6) Debt Service: Included in the above General Fund appropriation is 14
$2,727,500 in fiscal year 2024-2025 and $5,454,000 in fiscal year 2025-2026 to support 15
debt service for new bonds as set forth in Part II, Capital Projects Budget, of this Act. 16
(7) Additional Use Allowance: Included in the above General Fund 17
appropriation is $1,462,200 in each fiscal year to support additional use allowance for 18
previously authorized courthouse projects in Butler, Clinton, and Crittenden counties. 19
(8) Asset Preservation Pool - HVAC, Roof, and Electrical Upgrades: The 20
Administrative Office of the Courts shall prepare a report on the Asset Preservation - 21
HVAC, Roof, Electrical project authorized in Part II, Capital Projects Budget, of this Act, 22
including but not limited to the projects funded in the asset preservation pool, the current 23
status of each project and projected completion date, and the amount expended on each 24
project and for the pool in total. The Administrative Office of the Courts shall submit this 25
report on a quarterly basis beginning November 1, 2024, to the Interim Joint Committee 26
on Appropriations and Revenue. 27 UNOFFICIAL COPY 24 RS HB 264/GA
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(9) Asset Preservation Pool – Renovations: The Administrative Office of the 1
Courts shall prepare a report on the Asset Preservation - Renovations project authorized 2
in Part II, Capital Projects Budget, of this Act, including but not limited to the projects 3
funded in the asset preservation pool, the current status of each project and projected 4
completion date, and the amount expended on each project and for the pool in total. The 5
Administrative Office of the Courts shall submit this report on a quarterly basis 6
beginning November 1, 2024, to the Interim Joint Committee on Appropriations and 7
Revenue. 8
c. Local Facilities Use Allowance Contingency Fund 9
(1) Funds Carry Forward: Notwithstanding KRS 45.229, any unexpended 10
balance remaining at the close of fiscal year 2023-2024 shall not lapse and shall continue 11
into fiscal year 2024-2025, and any unexpended balance remaining at the close of fiscal 12
year 2024-2025 shall not lapse and shall continue into fiscal year 2025-2026 to provide 13
for cost overruns in authorized court facilities projects not to exceed 15 percent of the use 14
allowance in accordance with KRS Chapter 26A. 15
TOTAL – COURT OF JUSTICE 16
2024-25 2025-26 17
General Fund 453,096,000 468,936,500 18
Restricted Funds 51,521,100 52,123,700 19
Federal Funds 3,499,100 1,818,300 20
TOTAL 508,116,200 522,878,500 21
2. JUDICIAL FORM RETIREMENT SYSTEM 22
2024-25 2025-26 23
General Fund 660,000 703,000 24
Restricted Funds 691,900 693,900 25
TOTAL 1,351,900 1,396,900 26
(1) Administrative Expenses: Pursuant to KRS 21.540, administrative expenses 27 UNOFFICIAL COPY 24 RS HB 264/GA
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shall be paid out of an administrative account which shall be funded by transfers of the 1
necessary moneys, in appropriate ratio, from the funds described in KRS 21.550 and 2
21.560. Notwithstanding Part III, 7. of this Act, Restricted Funds appropriations may be 3
increased to ensure sufficient funding to support the Judicial Form Retirement System. 4
(2) Pension Benefit Increase: Notwithstanding KRS 21.405(5), no pension 5
benefit increase shall be granted to recipients of a retirement allowance under KRS 6
21.345 to 21.580 on July 1, 2024, or July 1, 2025. 7
TOTAL - JUDICIAL BRANCH 8
2024-25 2025-26 9
General Fund 453,756,000 469,639,500 10
Restricted Funds 52,213,000 52,817,600 11
Federal Funds 3,499,100 1,818,300 12
TOTAL 509,468,100 524,275,400 13
PART II 14
CAPITAL PROJECTS BUDGET 15
(1) Authorization of Capital Projects: It is the intent of the General Assembly 16
that any capital project proposed by any state government entity, including the agencies 17
and subdivisions of the Court of Justice, shall be authorized by the General Assembly 18
prior to the project’s financing and construction, in accordance with KRS 7A.010, 19
7A.120, 45.750, 45.760, 45.763, 45.765, and 48.110. Pursuant to KRS 45.760(1), the 20
amount allotted, from all sources, for expenditure on any capital project, including leases 21
as defined by KRS 45.750, shall not exceed the estimated cost as shown in this Act. 22
(2) Capital Projects and Bond Oversight Committee: Capital construction 23
projects and major items of equipment that are not specifically listed in this Act may be 24
authorized only after submission of the project to the Capital Projects and Bond 25
Oversight Committee and in accordance with the other requirements of KRS 45.760(7). 26
Moneys may be transferred to the allotment account of any capital project only after 27 UNOFFICIAL COPY 24 RS HB 264/GA
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submission of the project to the Capital Projects and Bond Oversight Committee and in 1
accordance with the other requirements of KRS 45.760(6). As required by KRS 45.760, 2
all capital construction items authorized in this Act shall be constructed in accordance 3
with this Act, supporting documentation considered by the General Assembly, and 4
Judicial Branch budget records. Any modifications to the scope of a capital construction 5
project or to a lease shall be reported to the Capital Projects and Bond Oversight 6
Committee before execution. 7
(3) Court Facility Planning Process: A feasibility study completed by a 8
certified architect not otherwise involved with the project shall be provided to the Project 9
Development Board to assist in making a determination whether the needs of the 10
community and the Court of Justice can best be met through the construction of a 11
freestanding building, or through an addition and/or renovation of the existing court 12
facility. 13
(4) Deferred Funding: (a) General Fund support to provide operating costs 14
totaling $240,000 and annualized use allowance payments totaling $2,352,900 and 15
$500,000 for nonrecurring equipment and furniture costs for the Owsley County project 16
is deferred to the 2026-2028 biennium. 17
(b) It is the intent of the General Assembly that the project in paragraph (a) of this 18
subsection shall be funded using resources previously appropriated for projects that no 19
longer require use allowance debt payments in the 2026-2028 fiscal biennium. 20
(5) Local Facilities Use Allowance Contingency Fund: For any court facility 21
project which is occupied and use allowance funding is insufficient, the use allowance 22
payments shall be approved from the Local Facilities Use Allowance Contingency Fund. 23
If funds are not available in the Local Facilities Use Allowance Contingency Fund, the 24
Chief Justice may transfer funds from other Judicial Branch accounts to make the 25
necessary payments. 26
A. JUDICIAL BRANCH 27 UNOFFICIAL COPY 24 RS HB 264/GA
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Budget Units 2024-25 2025-26 1
1. LOCAL FACILITIES FUND 2
Project Project Scope 3
001. Owsley 28,015,000 4
002. Construction - Court of Appeals 5
Bond Funds 14,100,000 -0- 6
003. Asset Preservation - HVAC, Roof, Electrical 7
Bond Funds 47,080,000 -0- 8
004. Asset Preservation - Renovations 9
Bond Funds 6,420,000 -0- 10
2. LEASE AUTHORIZATIONS 11
001. Franklin County - Lease - Court of Appeals 12
002. Jefferson County - Lease - Parking 13
003. Madison County - Lease - Family Court 14
PART III 15
GENERAL PROVISIONS 16
1. Expenditure Authority: The Director of the Administrative Office of the 17
Courts, with the approval of the Chief Justice, may expend any of the funds appropriated 18
for court operations and administration in any lawful manner and for any legal purpose 19
that the Chief Justice shall authorize or direct. No executive agency of state government 20
shall have the power to restrict or limit the expenditure of funds appropriated to the 21
Judicial Branch of government, except that funds appropriated in this Act shall not be 22
expended for any purpose not specifically authorized by the General Assembly in this 23
Act. The Court of Justice shall prepare a report of actual expenditures citing specific 24
statutory or budgetary authorization for the reported expenditures and detailing 25
expenditures for the Supreme Court, Court of Appeals, Circuit Court, Family Court, 26
District Court, Administrative Office of the Courts, Judicial Retirement, Local Facilities 27 UNOFFICIAL COPY 24 RS HB 264/GA
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Fund, Local Facilities Use Allowance Contingency Fund, and for services performed by 1
the Circuit Court Clerks' offices. The Court of Justice shall provide this report on a 2
quarterly basis to the Interim Joint Committee on Appropriations and Revenue. 3
2. Severability of Budget Provisions: Appropriation items and sums in this Act 4
conform to KRS 48.311. If any section, any subsection, or any provision thereof shall be 5
invalid or unconstitutional, the decision of the courts shall not affect or impair any of the 6
remaining sections, subsections, or provisions. 7
3. Duplicate Appropriations: Any appropriation item and sum in this Act and 8
in an appropriation provision in another Act of the 2024 Regular Session of the General 9
Assembly which constitutes a duplicate appropriation shall be governed by KRS 48.312. 10
4. Priority of Individual Appropriations: KRS 48.313 shall control when a 11
total or subtotal figure in this Act conflicts with the sum of the appropriations of which it 12
consists. 13
5. Carry Forward of Funds: Notwithstanding KRS 45.229, any unexpended 14
balance remaining at the close of the fiscal years ending June 30, 2024, June 30, 2025, 15
and June 30, 2026, shall not lapse and shall continue into the next fiscal year. 16
6. Final Budget Document: The Director of the Administrative Office of the 17
Courts shall prepare a final budget document reflecting the 2024-2026 biennial budget of 18
the Court of Justice. A copy shall be provided to the Legislative Research Commission, 19
and an informational copy shall be furnished to the Finance and Administration Cabinet, 20
within 60 days of the adjournment of the 2024 Regular Session of the General Assembly. 21
7. Appropriations Revisions: Notwithstanding KRS 48.630(10), no revisions 22
for unbudgeted Restricted Funds appropriations for expenditure shall be allotted or 23
expended that have not been appropriated in any enacted branch budget bill or without 24
the express authority of the General Assembly. Proposed revisions to unbudgeted Federal 25
Funds appropriations for expenditure in this Act shall be made and reported to the Interim 26
Joint Committee on Appropriations and Revenue. The Director of the Administrative 27 UNOFFICIAL COPY 24 RS HB 264/GA
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Office of the Courts shall notify, on a timely basis, the Legislative Research Commission 1
of the most current estimates of anticipated receipts for the affected fiscal year and an 2
accompanying statement which explains variations from the anticipated amount. 3
8. Maximum Salary of Trial Commissioners: Notwithstanding KRS 4
24A.100(3), no trial commissioner shall be compensated at a rate greater than $6,000 per 5
year. No funding is provided for trial commissioners commissioned in counties with a 6
residing District Judge. 7
9. Authorized Personnel Complement: On July 1, 2024, the Administrative 8
Office of the Courts shall establish a record for each budget unit of authorized permanent 9
full-time and all other positions based upon the enacted Judicial Budget of the 10
Commonwealth and any adjustments authorized by provisions in this Act. The total 11
number of filled permanent full-time and all other positions shall not exceed the 12
authorized complements pursuant to this section. The Director of the Administrative 13
Office of the Courts may request an increase in the number of authorized positions to the 14
Chief Justice. Upon approval, the Administrative Office of the Courts may authorize the 15
employment of individuals in addition to the authorized complement. A report of the 16
actions authorized in this section shall be provided to the Interim Joint Committee on 17
Appropriations and Revenue on a monthly basis. 18
10. Debt Restructuring: Notwithstanding any other provision of the Kentucky 19
Revised Statutes, use allowance payments shall not be amended to reflect debt 20
restructuring transactions undertaken by a county during the 2024-2026 fiscal biennium. 21
11. Court Facility Maintenance Fund Report: For each of the periods ending 22
June 30, 2024, June 30, 2025, and June 30, 2026, the Director of the Administrative 23
Office of the Courts shall prepare a court facility maintenance report. This report shall 24
detail all court facility maintenance undertaken by the Court of Justice, to include any 25
cost-sharing with counties, as well as detail regarding future maintenance needs. This 26
report shall include a statewide expenditure summary followed by individual county 27 UNOFFICIAL COPY 24 RS HB 264/GA
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expenditures detailing the state's and county's respective share of expenditures. The 1
Administrative Office of the Courts shall provide this report to the Interim Joint 2
Committee on Appropriations and Revenue by September 15 of each fiscal year. 3
12. Biennial Audits: The Auditor of Public Accounts shall have the right to 4
review, upon request, the accountant’s work papers. 5
13. Budgetary Restructuring: The Court of Justice shall prepare a report to be 6
submitted to the Interim Joint Committee on Appropriations and Revenue by September 7
1 of each fiscal year detailing the existing budget processes of the Court of Justice and 8
the actual expenditure of funds from the prior fiscal year and budgeted expenditures for 9
the current fiscal year by fund source and individual location or office, for the Supreme 10
Court, Court of Appeals, Circuit Court, Family Court, District Court, Administrative 11
Office of the Courts, Judicial Retirement, Local Facilities Fund, Local Facilities Use 12
Allowance Contingency Fund, and for services performed by the Circuit Court Clerks' 13
offices. 14
14. Unexpended Use Allowance: Notwithstanding any provision of the 15
Kentucky Revised Statutes, any General Fund moneys appropriated for project-related 16
expenses or use allowance payments in fiscal years 2024-2025 and 2025-2026 that are 17
not expended specifically for project-related expenses or use allowance payments in the 18
fiscal year in which appropriated shall be transferred to the Budget Reserve Trust Fund 19
Account (KRS 48.705). 20
15. Salary Increase for Personnel: Notwithstanding KRS 64.480(2), included in 21
the General Fund, Restricted Funds, and Federal Funds appropriations in Part I of this 22
Act are sufficient funds to support a four percent salary increase on the base salary and 23
wages of each eligible employee effective July 1, 2024 and a two percent increase on the 24
base salary or wages of each eligible employee effective July 1, 2025. 25
16. Application for Federal Funds: Notwithstanding any statute to the contrary, 26
the Court of Justice shall not apply for any new federally funded programs for which 27 UNOFFICIAL COPY 24 RS HB 264/GA
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funding had not previously been awarded without authorization by the General 1
Assembly. The Court of Justice shall report to the Interim Joint Committee on 2
Appropriations and Revenue by September 1 of each fiscal year any new or anticipated 3
federally funded programs needing authorization by the General Assembly. 4
PART IV 5
BUDGET REDUCTION OR SURPLUS EXPENDITURE PLAN 6
The Judicial Branch shall participate in any Budget Reduction Plan or Surplus 7
Expenditure Plan in accordance with KRS Chapter 48, except that obligations essential to 8
the constitutional duties and use allowance of the Judicial Branch shall be exempt from 9
any Budget Reduction Plan. The level of participation in a Budget Reduction Plan shall 10
be at the discretion of the Chief Justice and shall not exceed the actual percentage of 11
revenue shortfall. 12