Kentucky sets court budgets and funds employee pay raises

Kentucky sets aside $548,821,400 for the Judicial Branch in 2026–2027 and $557,953,900 in 2027–2028. The money supports Kentucky's courts, court clerks, court buildings, and retirement system administration. The 2026–2027 total includes $480,743,300 from the General Fund, $66,531,500 from restricted accounts, and $1,546,600 from federal funds. The 2027–2028 total includes $497,676,900 from the General Fund, $58,886,000 from restricted accounts, and $1,391,000 from federal funds. For 2025–2026, restricted accounts provide $13,629,600 for court operations and $8,910,400 for flood-related file restoration and repairs in Franklin and Hardin Counties. Unused money generally carries into the next fiscal year. Unused General Fund money for specified building expenses, building payments, and individual budget provisions must instead go to the state's budget reserve account. The budgets cover July 1, 2026, through June 30, 2027, and July 1, 2027, through June 30, 2028. Separate restricted-account funding covers July 1, 2025, through June 30, 2026.

The budget funds two annual 2% raises for eligible court employees and bars pension increases on two specified dates. The raise funding covers eligible Judicial Branch employees; the pension restriction covers recipients of the specified retirement allowances. The employee raises apply to base salaries and wages. The pension restriction covers people receiving retirement allowances under the Judicial Form Retirement System laws identified in the budget. Trial commissioners may receive no more than $2,000 a year. The budget provides no funding for commissioners serving in counties where a District Judge resides. The employee raises take effect July 1, 2026, and July 1, 2027. The pension restrictions apply on those same dates.

The capital budget authorizes a $2 million Boyle County roof replacement and a $20.91 million Bell County renovation. These provisions cover local court buildings. Hardin County must accept ownership of its specified HVAC-project facility within six months of notice that the project is complete or receive no building-use payment for that facility. The project amounts are spending limits, not guarantees that the full amounts will be spent. Support for five court projects authorized in 2024 is deferred to 2028–2030: $1,911,000 for operating costs and $3,000,000 for one-time equipment and furniture. Restricted accounts fund temporary court and clerk space in Boyle County with $5,260,000 in 2026–2027 and $260,000 in 2027–2028. Bell County receives $3,120,000 and $120,000, respectively. The General Fund provides $3,000,000 each year for local courthouse maintenance outside the capital-project budget. Maintenance projects estimated at $3,000,000 or less need no separate legislative capital-project authorization; those estimated between $1,000,000 and $3,000,000 must be reported to the capital oversight committee. The capital budget covers 2026–2028. Payments to counties for court buildings cannot be adjusted to reflect county debt restructuring during that period.

The law directs added civil filing-fee revenue and requires courts to use the specified video arraignment system when available. The fee rule covers added revenue from higher civil filing fees. Arraignments are court appearances where defendants are formally told their charges. The law does not itself raise civil filing fees. If the Supreme Court raises them, up to $20,468,100 in added revenue each fiscal year goes toward court operations and non-elected staff salaries. Any excess goes to the General Fund. If a court does not use the available video system, the Administrative Office of the Courts must pay to transport prisoners to and from arraignments. The Administrative Office of the Courts must report fee recommendations and video-system use to the legislature's budget committee by October 1, 2027.

Court officials must report spending, follow budget limits, and give required court functions priority. The rules govern Judicial Branch spending and staffing. Filled positions cannot exceed approved staffing limits unless the Chief Justice approves an increase. If money falls short during 2026–2028, the Chief Justice must cut functions that state law or Kentucky's Constitution does not explicitly authorize. The Legislative Research Commission may order an audit or review at the Judicial Branch's expense if it suspects the branch has not followed the budget. The resulting records are covered by Kentucky's public-records law. Unused balances generally carry into the next fiscal year. Unused General Fund money for specified building expenses, building payments, and individual budget provisions must instead go to the state's budget reserve account. Before exceeding a listed funding amount, the Judicial Branch must submit its reasons and funding source to the legislature's budget committee at least 30 days in advance, except for the retirement system's stated funding exception. Officials must report actual spending quarterly. Annual reports on spending under individual budget provisions begin September 1, 2026.