KRS 48.110: Contents of branch budget recommendations.

Each branch budget recommendation shall contain a complete financial plan for the

branch of government for each of the next two (2) fiscal years. Each branch budget

recommendation and all supporting documentation shall be submitted in a form and

format coo peratively developed by each respective branch of government and the

General Assembly and approved by the Legislative Research Commission. Each branch

budget recommendation shall include:

(1) A budget message signed by:

(a) The Governor for the executive branch;

(b) The Chief Justice for the judicial branch; and

(c) The co-chairmen of the Legislative Research Commission for the legislative

branch;

(2) (a) Statements of income and receipts for the two (2) fiscal years last concluded,

and the estimated income and receipts, for each budget unit of the branch of

government for the current fiscal year and each of the next two (2) fiscal

years.

(b) The statements of income and estimated income shall be itemized by budget

unit and fund, and shall show separately receipts from:

1. Current income;

2. Refunds and reimbursements of expenditures;

3. The sale of assets; and

4. Receipts on account of the income of prior years.

(c) Existing sources of income and receipts shall be analyzed as to their equity,

productivity and need for revision, and any proposed new sources of income

or receipts shall be explained;

(3) A statement of the surplus in any account and in any special fund o f the branch of

government. If a surplus exists in any account of the branch of government the

statement shall show the excess of all current assets over all current liabilities as of

the beginning of each of the two (2) fiscal years last concluded, and al l changes in

these accounts during each of such two (2) fiscal years;

(4) A statement as of the close of the last completed fiscal year and as of the close of

the current fiscal year showing, for each budget unit the total funded debt, the value

of sinking fund assets, the net funded debt, the floating liabilities as of the end of

the current fiscal year, and the total debt as of the close of the last completed fiscal

year and as of the close of the current fiscal year;

(5) Summary and detailed comparative statements of expenditures itemized by budget

unit for each of the two (2) fiscal years last concluded and requests for

appropriations by funds or accounts, the budget of the current year, and the

recommendations for appropriations for each of the next two (2) fiscal years.

Following the lists of actual and proposed expenditures of each budget unit there

shall be a detailed explanation of the actual and proposed expenditures, to include

activities, beneficiaries and expected results of the programs or servi ces of the

budget units;

(6) A draft of the proposed branch budget bill containing:

(a) Recommendations of the branch of government for appropriations for the next

two (2) fiscal years, and drafts of such revenue and other acts as may be

recommended for implementing the proposed financial plan;

(b) Recommended appropriations for extraordinary expenses and capital outlays,

which shall be itemized in the proposed branch budget bill for the branch by

budget unit. The title of each budget unit shall be worded t o limit each

appropriation to the specific use or purpose intended;

(c) A plan for the reduction of the branch budget if there is a revenue shortfall of

five percent (5%) or less in the general fund or road fund. In recommending

budget reductions, the Gove rnor, the Chief Justice, and the Legislative

Research Commission shall not recommend universal percentage reductions,

but shall weigh the needs of all budget units and shall strive to protect the

highest possible level of service in their respective branch es. Services which

are not essential to constitutional functions shall be subject to reduction.

Transfer of funds may be authorized by the budget reduction plan;

(d) 1. A plan for the expenditure of a general fund or road fund surplus of up

to two and one-half percent (2.5%).

2. The plan shall include provisions for the expenditure of a surplus, and

may provide for additional moneys for nonrecurring expenditures for

which an appropriation was not made in a branch budget bill, or for a

program or service aut horized by law for which an appropriation was

not made, or which was not fully funded.

3. In lieu of recommending the appropriation of funds, the plan may

instead recommend the retention of surplus funds in the surplus account

of the general fund or road fund for investment until appropriated by the

General Assembly;

(e) 1. A recommended state capital projects program and a recommended

program for the purchase of major items of equipment.

2. The recommended capital construction program shall include:

a. A complete list and summary description of each specific capital

construction project recommended for funding during the

biennium; and

b. For each project:

i. The agency and purpose for which it will be used;

ii. The justification for the project;

iii. Its estimated completion date;

iv. The total estimated cost of completing the project;

v. The estimated cost of the project during the biennium;

vi. The recommended sources of funds for the entire project;

and

vii. The dollar amounts recommended for appropriation and the

dollar amounts, listed by source, that are anticipated

from every other source of funds for the biennium.

3. All information required by subparagraph 2. of this paragraph shall be

included in each branch budget recommendation. Each branch budget

bill shall contain only a complete list of the specific capital construction

projects recommended for funding during th e biennium and, for each

project, the information specified in subparagraph 2.b.v., vi., and vii. of

this paragraph.

4. A report which details the effect of recommended new debt on the debt

position of the Commonwealth shall be submitted at the same time t he

recommended capital program is submitted. Information shall be

presented separately, and in total, for the general fund, road fund, and

any affected restricted fund account.

5. Information in the report shall include but not be limited to the

following:

a. Debt service on existing appropriation -supported debt, as a

percentage of anticipated total revenues;

b. Debt service on existing appropriation -supported debt, as a

percentage of anticipated available revenues;

c. The sum of debt service on existing ap propriation-supported debt

and debt service on recommended new appropriation -supported

debt, as a percentage of anticipated total revenues;

d. The sum of debt service on existing appropriation -supported debt

and debt service on recommended new appropriatio n-supported

debt, as a percentage of anticipated available revenues;

e. The sum of debt service on existing appropriation -supported debt

and debt service on recommended new appropriation -supported

debt, as a percentage of estimated state total personal income; and

f. The sum of existing appropriation -supported debt and

recommended new appropriation -supported debt, as a percentage

of estimated state total personal income.

6. The recommended program for the purchase of major items of

equipment submitted by th e head of each branch of government shall

include:

a. A complete list and summary description of each specific major

item of equipment recommended for purchase during the

biennium; and

b. For each major item of equipment:

i. The agency and purpose for which it will be used;

ii. The justification for the purchase;

iii. The estimated cost of the item, including ancillary expenses

and any expenses necessary to make the equipment

functional and operational;

iv. The recommended sources of funds; and

v. The dollar amounts recommended for appropriation and

anticipated from every other source of funds for the

purchase.

7. All information required by subparagraph 5. of this paragraph shall be

included in the executive branch budget recommendation. The branch

budget bill for the executive branch shall contain only a complete list of

each specific item of major equipment recommended for purchase

during the biennium and, for each item, the information specified in

subparagraph 6.b.iii., iv., and v. of this paragraph;

(f) The branch budget recommendation for the Transportation Cabinet shall

include the following information:

1. A separate branch budget bill;

2. A recommended biennial highway construction plan, which shall be

presented as a separate bill, and which shall include a list of individual

transportation projects included in the last four (4) years of the six (6)

year road plan, not to exceed ten percent (10%) of the recommended

biennial highway construction appropriation, which can be advanced if:

a. Additional funds are received; and

b. All projects included in the biennial highway construction plan

have been advanced or completed to the extent possible; and

3. The six (6) year road plan. The Governor shall have ten (10) working

days after submission of t he branch budget recommendation and the

recommended biennial highway construction plan to submit the six (6)

year road plan. The six (6) year road plan shall be submitted in a form

and format cooperatively developed by the Transportation Cabinet and

the Ge neral Assembly and approved by the Legislative Research

Commission; and

(g) 1. In the executive branch budget recommendation, as a separate section,

an amount sufficient to meet unexpected contingencies or emergencies,

including but not limited to natural or man -made disasters, civil

disorders, court orders requiring or resulting in the expenditure of state

funds, or other related causes.

2. The amount shall be based on the nature, type, and frequency of named

categories of events which may, from past exper ience, be reasonably

anticipated.

3. This portion of the budget recommendation shall detail similar incidents

and the nature and amount of the expenditures for each during the ten

(10) years immediately preceding.

The total amount of appropriations recommended from any fund shall not exceed

the cash resources estimated to be available and to become available to meet

expenditures under the appropriations;

(7) A certificate of the branch of government as to the accuracy of the statements of

financial condition, of income and receipts, and of expenditures; and

(8) Such other information as is deemed desirable, or is required by law or regulation.