Budget & Taxes

Appropriate General Fund moneys from the budget reserve trust fund account in each fiscal year of the 2026-2028 fiscal biennium to various state agencies for miscellaneous projects and programs; APPROPRIATION; EMERGENCY.

This bill establishes Kentucky's official 2026-2028 Biennial Highway Construction Plan, authorizing specific road projects across the state. It grants the Transportation Cabinet authority to spend funds on these projects with flexibility for bid variations or unexpected circumstances. The bill also requires the Transportation Secretary to create a single document detailing both the 2026-2028 construction program and the 2028-2032 preconstruction program. An emergency declaration ensures the bill takes effect immediately upon becoming law, allowing the state to proceed with planned road improvements without delay.

Amend KRS 157.615 to define "traditional school building"; amend KRS 157.621 to authorize a school district to levy a $.05 equivalent rate for school districts that meet specific district facilities requirements and other requirements; authorize the school district to levy an additional $.05 equivalent rate if the local board of education determines the first levy is insufficient to achieve facility goals; establishes a termination date for the levies of 25 years; provide equalization of the levy; establish conditions for receiving equalization of the levy; extend equalization of eqeualization funding for critical construction needs levy; amend KRS 160.290 to require a school district to consolidate or modify the attendance zones of a traditional school building with do not meet certain average daily attendance requirements; appropriate $3,500,000 in each year of the 2026-2028 fiscal biennium for the equalization of established levies; effective July 1, 2026; APPROPRIATION; EMERGENCY.

Amend KRS 132.096 relating to the exemption from state and local property taxes for farm implements and farm machinery, to remove ownership and use requirements; make technical changes.

Create a new section of Subchapter 20 of KRS Chapter 154 to establish the rural building and job creation revolving fund; specify uses of the fund to assist with compliance risk mitigation for the New Markets Tax Credits Program, or to issue low-interest loans to assist with construction of new buildings or renovations of existing buildings for lease to target wage economic development projects; require the Cabinet for Economic Development to report on the fund; create a new section of Subchapter 12 of KRS Chapter 154 to require the cabinet to work with the workforce liaison appointed by the president of the Kentucky Career and Technical College System to promote jobs created in the Commonwealth as a result of incentive programs; require the cabinet to conduct a feasibility and impact study on interstate reciprocity between state economic development programming; amend the general fund appropriation authorized in 2022 Ky. Acts ch. 199, Part I, B, 1.,(12) to not lapse and carry forward; APPROPRIATION; EMERGENCY.

Create a new section of KRS Chapter 164 to establish the Kentucky Public Service Student Loan Forgiveness Program fund; require the Kentucky Higher Education Assistance Authority to administer the fund; require the authority to disburse funds for student loan repayment to recruit and retain eligible public service employees that live and work in Kentucky; specify terms and process; establish criteria for the program and applicant evaluation for awards; appropriate $30,000,000 from the budget reserve trust fund account for initial implementation of the student loan forgiveness program; appropriate $30,000,000 from the general fund for support of the student loan forgiveness program; APPROPRIATION; EMERGENCY, EFFECTIVE July 1, 2026.

Amend KRS 91A.400 to authorize all home rule class cities to levy a restaurant tax; remove the Department for Local Government registration mandate; and remove the restriction on the use of the funds; amend KRS 67.938 to conform.

Amend KRS 107.310, relating to community improvement districts, to define "green infrastructure", "green bond", and "social impact bond"; amend KRS 107.330 to increase the scope of community improvement districts to include public infrastructure, housing, public safety and health, and economic development tools; amend KRS 107.340 to require county judges/executive to ensure community improvement district board membership does not represent one particular interest; amend KRS 107.350 to allow community improvement districts to use green bonds and social impact bonds; amend KRS 107.380 to increase reporting requirements of community improvement districts; amend KRS 65.7043, 65.7045, and 65.7049 to allow community improvement districts to access moneys from tax increment financing levied by local governments; create new sections of KRS 107.310 to 107.500 to allow community improvement districts to request cities and counties to use special assessments imposed under KRS 91A.200 to 91A.290; allow community improvement districts to receive moneys from private partners; establish the Community Improvement District Grant Program to provide state grants for community improvement district projects and require the Department for Local Government to administer the program; create the Community Improvement District Grant Program fund to be administered by the Department for Local Government; require projects undertaken by community improvement districts to be reapproved by property owners within the boundaries of the district on a 10 year basis.

This joint resolution establishes the final four years of Kentucky's Six-Year Road Plan, working alongside related bills from the 2026 Regular Session. It directly affects road construction projects across multiple counties by specifying detailed funding allocations and project scopes for various highway improvements. The bill lists specific road segments, including bypasses, intersections, and multi-mode transportation projects, with associated costs and funding sources for each location. By codifying these projects into state law, the resolution provides a formal framework for implementing infrastructure development through fiscal year 2032.

This bill establishes the official list of county road projects included in Kentucky's Six-Year Road Plan. It works alongside two other bills to define which local road improvements will receive state funding assistance over the next six years. The resolution specifically outlines the County Priority Projects portion of the plan, determining which roads qualify for financial support from the Local Assistance Road Program. Once signed into law, it guides state transportation funding decisions for county road maintenance and construction projects.