Ky. Rev. Stat. » Chapter 48

Ky. Rev. Stat. § 48.130

Budget reduction plan for revenue shortfall of five percent or less to be

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included in each enacted branch budget bill -- Shortfalls over five percent require legislative action. (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. 2024-2026 Budget Reference. See State/Executive Branch Budget, 2024 Ky. Acts ch. 175, Pt. VI at 1939. 2024-2026 Budget Reference. See State/Executive Branch Budget, 2024 Ky. Acts ch. 175, Pt. VII, (1) at 1940. 2024-2026 Budget Reference. See State/Executive Branch Budget, 2024 Ky. Acts ch. 175, Pt. VIII at 1940.

Notes of Decisions
Cited in 9 cases, 1984–2017 · leading case: Jim Wayne in His Official Capacity as State Representative v. Commonwealth of Kentucky Office of the Governor Matthew Be
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Jim Wayne in His Official Capacity as State Representative v. Commonwealth of Kentucky Office of the Governor Matthew Be (2016) ky · cites it 9× “KRS 48.130. But that statute does not authorize the Governor's action in this case.”
Legislative Research Commission Ex Rel. Prather v. Brown (1984) ky · cites it 6× “KRS 48.130 requires each branch of government, when submitting a budget request to the General Assembly, to develop and submit a plan for a reduction of that budget in the event the Commonwealth suffers a revenue shortfall in the amount of 2V2% to 5% of the basic revenue…”
Beshear v. Haydon Bridge Co., Inc. (2010) ky · cites it 5× “Ultimately, however, when the General Assembly finally passed its biennial budget for 2002-2004 on March 5, 2003, it adopted the Governor’s actions, to wit: Notwithstanding KRS 48.130 and 48.600, the General Assembly confirms, adopts, and enacts the revised General Fund…”
Klein v. Flanery (2014) ky “Not long thereafter the General Assembly enacted the 2008-2010 biennial budget, 2 which ratified the Governor’s Order as follows: Notwithstanding KRS 48.130 and 48.600 [statutes providing for budget reductions in the event of revenue shortfalls], the General Assembly adopts and…”
Commonwealth of Kentucky Ex Rel. Andy Beshear, Attorney General v. Commonwealth of Kentucky Office of the Governor Ex Re (2016) ky · cites it 3× “KRS 48.130. But that statute does not authorize the Governor's action in this case.”
Jim Wayne in His Official Capacity as State Representative v. Commonwealth of Kentucky Office of the Governor Matthew Be (2016) ky · cites it 3× “KRS 48.130. But that statute does not authorize the Governor's action in this case.”
Commonwealth of Kentucky Ex Rel. Andy Beshear, Attorney General v. Commonwealth of Kentucky Office of the Governor Ex Re (2016) ky · cites it 3× “KRS 48.130. But that statute does not authorize the Governor's action in this case.”
Jim Wayne in His Official Capacity as State Representative v. Commonwealth of Kentucky Office of the Governor Matthew Be (2017) ky · cites it 3× “KRS 48.130. But that statute does not authorize the Governor's action in this case.”
Commonwealth of Kentucky Ex Rel. Andy Beshear, Attorney General v. Commonwealth of Kentucky Office of the Governor Ex Re (2017) ky · cites it 3× “KRS 48.130. But that statute does not authorize the Governor's action in this case.”
— Ky. Rev. Stat. § 48.130(3) — 6 cases
Jim Wayne in His Official Capacity as State Representative v. Commonwealth of Kentucky Office of the Governor Matthew Be (2016) ky “KRS 48.130. But that statute does not authorize the Governor's action in this case.”
Commonwealth of Kentucky Ex Rel. Andy Beshear, Attorney General v. Commonwealth of Kentucky Office of the Governor Ex Re (2016) ky “KRS 48.130. But that statute does not authorize the Governor's action in this case.”
Jim Wayne in His Official Capacity as State Representative v. Commonwealth of Kentucky Office of the Governor Matthew Be (2016) ky “KRS 48.130. But that statute does not authorize the Governor's action in this case.”
Commonwealth of Kentucky Ex Rel. Andy Beshear, Attorney General v. Commonwealth of Kentucky Office of the Governor Ex Re (2016) ky “KRS 48.130. But that statute does not authorize the Governor's action in this case.”
Jim Wayne in His Official Capacity as State Representative v. Commonwealth of Kentucky Office of the Governor Matthew Be (2017) ky “KRS 48.130. But that statute does not authorize the Governor's action in this case.”
— Ky. Rev. Stat. § 48.130(4) — 1 case
Legislative Research Commission Ex Rel. Prather v. Brown (1984) ky “KRS 48.130 requires each branch of government, when submitting a budget request to the General Assembly, to develop and submit a plan for a reduction of that budget in the event the Commonwealth suffers a revenue shortfall in the amount of 2V2% to 5% of the basic revenue…”
— Ky. Rev. Stat. § 48.130(5) — 1 case
Beshear v. Haydon Bridge Co., Inc. (2010) ky “Ultimately, however, when the General Assembly finally passed its biennial budget for 2002-2004 on March 5, 2003, it adopted the Governor’s actions, to wit: Notwithstanding KRS 48.130 and 48.600, the General Assembly confirms, adopts, and enacts the revised General Fund…”
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