Page 1 of 2 LRC 2024-BR1732-SB127GA
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2024 REGULAR SESSION
MEASURE
2024 BR NUMBER 1732 SENATE BILL NUMBER 127 GA
TITLE AN ACT relating to aerospace infrastructure, making an appropriation therefor, and declaring an
emergency.
SPONSOR Senator Brandon Storm
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT (S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDATE
APPROPRIATION UNIT(S) IMPACTED: The Council on Postsecondary Education
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED
FISCAL ESTIMATES 2023-2024 2024-2025 2025-2026 ANNUAL IMPACT AT
FULL
IMPLEMENTATION
REVENUES Indeterminable Indeterminable Indeterminable
EXPENDITURES Minimum of
$330,000
Minimum of
$330,000
Minimum of $330,000
NET EFFECT Indeterminable Indeterminable Indeterminable
( ) indicates a decrease/negative
PURPOSE OF MEASURE: Senate Bill 127 aims to foster collaboration among aviation
programs, industry partners, and the Commonwealth of Kentucky, with the goal of enhancing the
education and training pipeline for aviation professionals within the state. This legislative
initiative establishes the Kentucky Aerospace, Aviation, and Defense Investment Fund, to be
administered by the Council on Postsecondary Education (CPE). The bill directs the fund to be
divided into two accounts. One designated for appropriations made by the General Assembly and
any federal funds received for the program, and one for the money received in the form of gifts,
grants, or donations by a grantor. Additionally, it institutes an advisory committee tasked with
guiding CPE in executing the mandates outlined in the bill.
The legislation mandates that a minimum of sixty-five percent of the fund be designated for
collaborations between aviation programs and industry partners, aimed at providing aviation
training scholarships to Kentucky residents enrolled in such programs. Furthermore, up to thirty-
five percent of the fund is allocated for aviation equipment partnership contracts between public
programs and industry stakeholders, facilitating grants for the procurement, maintenance, or Page 2 of 2 LRC 2024-BR1732-SB127GA
leasing of aviation equipment by public high school vocational programs or public postsecondary
education institutions.
FISCAL EXPLANATION : The fiscal impact of Senate Bill 127 is indeterminable, as the
program's funding depends upon future appropriations by the General Assembly, however, the
cost to administer the program is estimated at $330,000 annually. Given that the number of
students, public institutions, and aviation industry partnerships interested in the program is
currently unknown, it is difficult to estimate the appropriations needed in order to meet the intent
of this act.
CPE estimates the cost to administer the program at approximately $330,000 annually. This will
cover the cost of three new staff members and the per diem and travel expenses for members of
the advisory committee. The bill stipulates that program administration costs shall not exceed 4%
of the total funds in the account or $1.5 million annually, whichever is less. Thus, upon an
appropriation, CPE can utilize up to 4% of the allocated funds for administrative purposes. To
fully implement the program while adhering to the 4% limitation, a fund balance of at least $8.25
million is necessary to cover administrative expenses ($8.25 million x 4% = $330,000).
Additionally, the bill mandates that disbursements from the fund can only occur once the
General Assembly's appropriation is matched by contributions from the aviation industry
partner(s). Therefore, if the $8.25 million fund balance is divided between private and public
contributions, the General Assembly's appropriation must be a minimum of $4.13 million to
adequately support program administration by CPE.
Lastly, the legislation specifies that any appropriation to the fund prior to fiscal year 2029-2030
shall not lapse. However, unexpended funds remaining in the appropriation account at the end of
fiscal year 2029-2030 will revert to the General Fund. Similarly, any remaining funds in the
grantor account at the end of fiscal year 2029-2030 will be proportionally redistributed among
the grantors based on their initial contributions.
DATA SOURCE(S): LRC Staff, CPE
PREPARER: Justin Smith NOTE NUMBER: 60 REVIEW: JB DATE: 2/20/2024