{"data":{"id":"us-ky/krs-48.130","jurisdiction":"us-ky","citation":"KRS 48.130","heading":"Budget reduction plan for revenue shortfall of five percent or less to be","body":"included in each enacted branch budget bill -- Shortfalls over five percent\nrequire legislative action.\n(1) The General Assembly shall include in each enacted branch bud get bill a budget\nreduction plan for a revenue shortfall in the general fund or road fund of five\npercent (5%) or less. The budget reduction plan shall direct how budget reductions\nshall be implemented if there is a revenue shortfall of five percent (5%) or less.\n(2) A layoff of state employees in the executive branch under the budget reduction plan\nenacted by the General Assembly shall comply with the provisions of KRS\n18A.113.\n(3) Any revenue shortfall in the general fund or road fund of greater than five  percent\n(5%) shall require action by the General Assembly.\n(4) Upon the issuance of an official revenue estimate by the consensus forecasting\ngroup reflecting a revenue shortfall in the general fund or road fund, or upon the\nexistence of an actual revenue shortfall in the general fund or road fund at the close\nof a fiscal year as determined by the Office of State Budget Director, the Office of\nState Budget Director shall notify all branches of government. If the revenue\nshortfall is five percent (5%) or less, the following actions shall be taken:\n(a) The unappropriated balance of funds in the surplus accounts of the general\nfund or road fund shall first be used to meet the shortfalls in those respective\nfunds; and\n(b) If the amounts described in paragraph ( a) of this subsection are insufficient to\naddress the revenue shortfall, the enacted budget reduction plan included in\neach branch budget bill shall be implemented.\n(5) The budget reduction plan for each branch of government may provide that the\nannual increment granted state employees under KRS 18A.355 shall be reduced as\nprovided by KRS 18A.355. Any reduction of the annual increment shall be uniform\nfor all employees.\n(6) No budget reduction action shall be taken by any branch head in excess of the\nactual or projected deficit.\n(7) If general fund or road fund tax receipts increase over the revenues estimated in the\nofficial revenue estimate that resulted in reductions, then services may be restored\nin the reverse order of the reduced services.","path":["KRS Chapter 48"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53728","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:09Z","sha256":"bf883fb773a60f2420b01500e1e4ec821ab564787f1886cfa59497e969539f47","source_id":"us-ky","stale":false,"prev":"us-ky/krs-48.120","next":"us-ky/krs-48.140"},"notice":"GroundRules: Original legal text. Not legal advice."}