KRS 48.705: General fund -- Budget reserve trust fund account.

(1) A budget reserve trust fund account is hereby created in the general fund, pursuant

to KRS 45.305. The budget reserve trust fund account shall be funded through

direct appropriations, and surplus amounts as provided in subsection (2) of this

section. Money s in the account shall remain unallotted unless required by the

provisions of this section.

(2) (a) Each fiscal year, except as provided in subsection (3) of this section, within

thirty (30) days of the end of the fiscal year, the secretary of the Finance and

Administration Cabinet shall cause to be deposited to the budget reserve trust

fund account the lesser of the following amounts:

1. Fifty percent (50%) of the general fund surplus; or

2. The amount necessary from the general fund surplus to make the

balance of the budget reserve trust fund account equal to five percent

(5%) of the actual general fund receipts collected during the fiscal year

just ended, as determined by the Finance and Administration Cabinet.

(b) Any amounts to be deposited to the budget reserve trust fund account from the

general fund surplus shall be determined after the surplus has been reduced by

the amount necessary to implement the provisions of any surplus expenditure

plan authorized by KRS 48.140 and enacted as a part of a branch budget bill.

(3) If, at the close of any fiscal year, the budget reserve trust fund account has a balance

equal to or greater than five percent (5%) of the actual general fund receipts

collected during the fiscal year just ended, as determined by the Fina nce and

Administration Cabinet, the deposits required under subsection (2) of this section

shall be suspended for that year.

(4) Moneys in the budget reserve trust fund account may be appropriated by the

General Assembly in a regular or special session.

(5) Before authorizing any allotments from the budget reserve trust fund account, the

secretary of the Finance and Administration Cabinet shall notify in writing the

Interim Joint Committee on Appropriations and Revenue. The notice shall include

the amount and purpose for the proposed allotment.

(6) Within thirty (30) days of the close of each fiscal year, the secretary of the Finance

and Administration Cabinet shall report to the Interim Joint Committee on

Appropriations and Revenue the general fund receip ts collected for the fiscal year

just ended, the balance of the budget reserve trust fund account, and any amounts

deposited to the budget reserve trust fund account pursuant to the provisions of

subsection (2) of this section.

(7) All sums appropriated or deposited to the budget reserve trust fund account shall

not lapse at the close of the fiscal year but shall carry forward into the next fiscal

year.