Kentucky sets aside $183.1 million for two-year legislative operations

The law sets aside money for Kentucky’s General Assembly and Legislative Research Commission. The money supports legislative operations and the Kentucky Legislative Ethics Commission. Restricted Funds are separate accounts designated for particular uses. The General Assembly’s share is $23,983,000 for 2026–2027 and $26,095,200 for 2027–2028. The Legislative Research Commission’s share is $66,218,400 and $66,804,500, respectively. Within these totals, the Kentucky Legislative Ethics Commission has $567,700 from the General Fund each year, plus $75,000 and $175,000 from Restricted Funds, respectively. These amounts are spending limits; only as much as necessary may be used. Unspent money from 2025–2026 carries into 2026–2027. Unspent money in each following fiscal year also carries into the next year. The first budget year runs from July 1, 2026, through June 30, 2027. The second runs from July 1, 2027, through June 30, 2028.

The law sets legislative pay rules and limits funding for policy research, pension increases, and distribution of legislative information. These rules cover lawmakers, legislative staff, legislative pension recipients, the policy research center, and readers of legislative publications. The Kentucky Long-Term Policy Research Center and its board remain suspended for the 2026–2028 budget period or until funding returns. The budget provides them no money. Recipients covered by the legislative retirement provisions receive no pension benefit increase on July 1, 2026. Lawmakers’ daily pay and between-session expense allowances follow the amounts authorized for 2024–2026, with an adjustment on January 1, 2027, tied to the state employee salary increase. Legislative Research Commission employees receive the salary adjustment provided to executive branch state employees each fiscal year. At the start of each legislative session, House members receive $350 and senators receive $650 instead of stationery. The research center suspension continues from July 1, 2026. Distribution of the final Legislative Record and interim Legislative Record stops that day. The commission director may distribute session laws, legislative journals, and official statute publications electronically only.

The law gives legislative officials spending authority and requires a report on operating costs. The Senate president, House speaker, or their chosen representatives may contact contractors directly about Capitol and Capitol Annex renovation, repair, and construction projects. The Legislative Research Commission director may spend the budget for lawful legislative purposes under commission supervision. Executive agencies and laws governing those agencies cannot restrict that spending. Director-authorized spending related to the Capitol Building or the referenced Capitol Annex provision is exempt from the specific state laws listed in the budget. Direct contact with contractors does not reduce the Finance and Administration Cabinet’s authority over purchasing, contracts, or project oversight. Legislative leaders cannot direct contractors to violate contracts or law. The legislative branch participates in budget reduction and surplus spending plans. Obligations essential to its constitutional duties are exempt from cuts. The director decides its participation in cuts, which cannot exceed the actual percentage of the revenue shortfall. By October 1, 2026, the commission director must report actual and projected spending for 2025–2026 through 2027–2028, steps taken to cut costs, and projected two-year savings.

The Legislative Research Commission has $1 million set aside for an outside study of court workers’ pay. The study covers elected officials and other workers in Kentucky’s judicial branch. The $1 million is included in the commission’s 2026–2027 General Fund budget. The consultant must review job categories, pay levels, and how pay compares with the job market, then recommend possible adjustments. The study itself does not award raises. The consultant must submit the results to the Interim Joint Committee on Appropriations and Revenue by July 1, 2027.

A special temporary nonprofit license allows nonprofits and conference organizers or sponsors to provide alcohol at conferences. Nonprofit organizations and organizers or sponsors of state, regional, or national conferences are eligible for the license. The license covers state, regional, or national conferences. Political campaign fundraisers are excluded. License holders and their employees or agents may obtain donated alcohol, sell it by the package or drink, serve free drinks, and offer alcohol through auctions or raffles. Events may use licensed or unlicensed premises. Employees of the license holder and licensed sellers of alcoholic drinks may serve or sell drinks on its behalf. Locations where alcohol is provided or consumed under this section do not count as public places under KRS Chapter 222. This exception applies to that chapter’s rules. Each special temporary nonprofit license may last no longer than 30 days.