KRS 11.068: Office of State Budget Director -- Organizational units -- Duties, rights, and

responsibilities -- Tax expenditure analysis.

(1) There is created an agency of state government known as the Office of State Budget

Director. The office shall be attac hed for administrative purposes to the Office of

the Governor.

(2) The office shall include the following major organizational units:

(a) The Office of State Budget Director, headed by the state budget director. The

state budget director shall be appointed by the Governor pursuant to KRS

11.040 and shall serve, under direction of the Governor, as state budget

director and secretary of the state planning committee. The office shall

include such principal assistants and supporting personnel appointed pursuant

to KRS Chapter 12 as may be necessary to carry out the functions of the

office. The office shall have such duties, rights, and responsibilities as are

necessary to perform, without being limited to, the following functions:

1. Functions relative to the pr eparation, administration, and evaluation of

the executive budget as provided in KRS Chapters 45 and 48 and in

other laws, including but not limited to, capital construction budgeting,

evaluation of state programs, program monitoring, financial and policy

analysis and issue review, and executive policy implementation and

compliance;

2. Continuous evaluation of statewide management and administrative

procedures and practices, including but not limited to economic

forecasting, technical assistance to state ag encies, forms control, and

special analytic studies as directed by the Governor; and

3. Staff planning functions of the state planning committee and evaluation

of statewide management and administrative practices and procedures.

(b) Governor's Office for P olicy and Management, headed by the state budget

director. The state budget director shall maintain staff employed pursuant to

KRS Chapter 18A sufficient to carry out the functions of the office relating to

state budgeting as provided in paragraph (a) of t his subsection and state

planning as provided in KRS Chapter 147, review of administrative

regulations proposed by executive agencies prior to filing pursuant to KRS

Chapter 13A and such other duties as may be assigned by the Governor.

(c) Governor's Offic e for Policy Research, headed by the state budget director.

The Governor's Office for Policy Research shall assist the state budget

director in providing policy research data, information, and analysis to the

Governor on public policy issues that impact th e Commonwealth. The state

budget director shall identify and direct the research to be completed and

provided by the office. The state budget director shall maintain staff employed

in accordance with KRS Chapter 18A sufficient to carry out the functions of

the office.

(d) Governor's Office for Economic Analysis, headed by the state budget director.

The state budget director shall maintain staff employed in accordance with

KRS Chapter 18A sufficient to carry out the functions of the office. The

Governor's Office for Economic Analysis shall carry out the revenue

estimating and economic analysis functions and responsibilities, including but

not limited to the functions and responsibilities assigned to the Office of State

Budget Director by KRS Chapter 48. The Governor's Office for Economic

Analysis shall perform the tax administrative function of using tax data to

provide the Department of Revenue with studies, projections, statistical

analyses, and any other information that will assist the Department of

Revenue in performing its tax administrative functions.

(3) (a) As used in this subsection, "tax expenditure" means an exemption, exclusion,

or deduction from the base of a tax, a credit against the tax, a deferral of a tax,

or a preferential tax rate.

(b) On or before September 1, 2026, and every September 1 thereafter, the Office

of State Budget Director shall publish on its website detailed estimates of the

general fund and road fund for the current and next two (2) fiscal years of the

revenue loss resulting from tax expenditures.

(c) The Department of Revenue shall provide assistance and furnish data that is

not restricted by KRS 131.190.

(d) The estimates shall include for each tax expenditure:

1. The amount of revenue loss;

2. A citation of the legal authority for the tax expenditure;

3. The year in which the tax expenditure was enacted; and

4. The tax year in which the tax expenditure became effective.