48.130 Budget reduction plan for revenue shortfall of five percent or less to be included in each enacted branch budget bill -- Shortfalls over five percent require legislative action.
<br><br>48.130 Budget reduction plan for revenue shortfall of five percent or less to be <br>included in each enacted branch budget bill -- Shortfalls over five percent <br>require legislative action. <br>(1) The General Assembly shall include in each enacted branch budget bill a budget <br>reduction plan for a revenue shortfall in the general fund or road fund of five <br>percent (5%) or less. The budget reduction plan shall direct how budget reductions <br>shall be implemented if there is a revenue shortfall of five percent (5%) or less. <br>(2) A layoff of state employees in the executive branch under the budget reduction plan <br>enacted by the General Assembly shall comply with the provisions of KRS <br>18A.1132. <br>(3) Any revenue shortfall in the general fund or road fund of greater than five percent <br>(5%) shall require action by the General Assembly. <br>(4) Upon the issuance of an official revenue estimate by the consensus forecasting <br>group reflecting a revenue shortfall in the general fund or road fund, or upon the <br>existence of an actual revenue shortfall in the general fund or road fund at the close <br>of a fiscal year as determined by the Office of State Budget Director, the Office of <br>State Budget Director shall notify all branches of government. If the revenue <br>shortfall is five percent (5%) or less, the following actions shall be taken: <br>(a) The unappropriated balance of funds in the surplus accounts of the general <br>fund or road fund shall first be used to meet the shortfalls in those respective <br>funds; and <br>(b) If the amounts described in paragraph (a) of this subsection are insufficient to <br>address the revenue shortfall, the enacted budget reduction plan included in <br>each branch budget bill shall be implemented. <br>(5) The budget reduction plan for each branch of government may provide that the <br>annual increment granted state employees under KRS 18A.355 shall be reduced as <br>provided by KRS 18A.355. Any reduction of the annual increment shall be uniform <br>for all employees. <br>(6) No budget reduction action shall be taken by any branch head in excess of the actual <br>or projected deficit. <br>(7) If general fund or road fund tax receipts increase over the revenues estimated in the <br>official revenue estimate that resulted in reductions, then services may be restored <br>in the reverse order of the reduced services. <br>Effective: June 25, 2009 <br>History: Amended 2009 Ky. Acts ch. 78, sec. 6, effective June 25, 2009. -- Amended <br>2000 Ky. Acts ch. 46, sec. 17, effective July 14, 2000. -- Amended 1994 Ky. Acts <br>ch. 387, sec. 2, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 507, sec. 9, <br>effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 273, sec. 5, effective July 15, <br>1988. -- Amended 1986 Ky. Acts ch. 494, sec. 23, effective July 15, 1986. -- Created <br>1982 Ky. Acts ch. 450, sec. 13, effective July 1, 1983. <br><br>