KentuckyHB 6222025 Regular SessionHouse

AN ACT relating to fiscal matters and declaring an emergency.

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 6 benefits, 0 costs, 3 mixed.

School construction aid requires local funding

The law authorizes school facility awards for fiscal year 2025–2026. Listed awards are Adair County, $3.837 million; Augusta Independent, $2.679 million; Bardstown Independent, $21.563 million; Beechwood Independent, $53,000; Fleming County, $7.917 million; Garrard County, $7.463 million; Harrison County, $25.348 million; Johnson County, $39.099 million; Marion County, $9.87 million; Powell County, $2.959 million; Somerset Independent, $5.851 million; Walton Verona Independent, $24,000; and Williamstown Independent, $3.724 million. State awards cannot exceed 50% of each district's certified funding gap, and districts must cover remaining costs locally. Construction costs cannot exceed the audited amount. Projects must involve A1 or A2 facilities ranked Priority 1 or 2, exclude athletic facilities, and have education department project numbers beginning 19–23. Construction must have begun or be ready to start. Districts must have levied a ten-cent-equivalent capital tax by January 1, 2024, but still lacked enough cash or debt-service capacity.

More funding for school safety officers

The law provides $16.5 million for public school officer reimbursements in fiscal year 2024–2025 and $18 million in 2025–2026. Monthly payments first support one full-time certified officer per campus, with reimbursement up to $20,000 per officer. Districts must maintain one officer per campus before seeking extra payments, limited to one officer per academic building. Unspent public school funding goes to the Budget Reserve Trust Fund. Nonpublic schools with law enforcement agreements also qualify for up to $20,000 per full-time certified officer. Those payments have a separate $5 million yearly limit, funded from the General Fund Surplus Account or Budget Reserve Trust Fund.

Capitol renovations gain reserve funding authority

The Finance and Administration Cabinet secretary can request up to $20 million for Capitol Campus Renovation Phase 2. This authority applies during the 2024–2026 budget period. Money can come from the General Fund Surplus Account or Budget Reserve Trust Fund. Budget Reserve Trust Fund money does not count as General Fund money for the law's specified certification rules.

County road projects can move earlier

The law allows named County Priority Projects in the road plan resolution to move into fiscal year 2024–2025. Projects can advance only when funds are available. The change does not guarantee funding or set a project amount.

Grayson County gets airport land funding

The law allocates $10 million in fiscal year 2024–2025 to the Grayson County Fiscal Court. The money must buy land for an airport runway expansion.

Local development projects receive redirected funding

The law redirects $50 million in fiscal year 2024–2025 economic development funding to two projects. Elizabethtown's Valley Creek Treatment Expansion receives $30 million. The Intermodal Transportation Authority receives $20 million for Kentucky Transpark and nearby communities growing from announced investments exceeding $2 billion. Assistance can include loans forgiven after negotiated economic development requirements are met.

State vendors gain late-payment protections

State contractors and vendors can recover interest and other credit costs incurred to keep performing contracts through the payment date. The Finance and Administration Cabinet must issue rules and post online guidance by December 31, 2025. Rules must cover partial payments, dispute submissions, required information, agency response deadlines, and invoice errors when deliveries were not rejected. Beginning July 1, 2027, the Cabinet must report late-payment disputes to lawmakers every six months. Reports must identify agencies, claim counts, alleged unpaid amounts, payment delays, and decisions.

More state agreements follow purchasing rules

More state agreements fall under Kentucky's purchasing rules, including grants, memoranda of agreement, personal services, and program administration contracts. The law clarifies purchasing authority and defines several construction methods, including design-build and construction manager arrangements. It also includes real estate leases as supplies but excludes purchases of land or permanent interests in land. These changes clarify coverage while bringing more agreements under state purchasing requirements.

Film companies face credit and disclosure rules

Kentucky film credits are refundable for approvals before April 27, 2018, and approvals on or after January 1, 2022. Approvals from April 27, 2018, through December 31, 2021, are neither refundable nor transferable. Annual approval caps are $100 million for 2018–2021 and $75 million starting in 2022. Starting in 2024, $25 million of the yearly cap is reserved for continuous film production companies. Unused reserved money opens to all approved productions each April 1; the April 1, 2025, balance becomes available on or after the law's effective date. Refundable credits require Kentucky production to start within six months of approval and finish within two years of starting. Companies must document costs, make qualifying purchases after signing the incentive agreement, and certify required payroll tax withholding and payment. Refunds earn no interest. Annual reports due September 1 list approved companies and refundable credits claimed. Historical reports cover tax years starting January 1, 2018, including names, spending, credits, and denials. After the initial deadline, historical reports are due November 1 every four years, and required data is not confidential taxpayer information.

Sponsors & Cosponsors

Sponsor

Jason Petrie
Republican • House

Cosponsors

Al Gentry
Democrat • House
Beverly Chester-Burton
Democrat • House
Chris Lewis
Republican • House
David Hale
Republican • House
Kim King
Republican • House
Lisa Willner
Democrat • House
Nima Kulkarni
Democrat • House
Rachel Roarx
Democrat • House
Samara Heavrin
Republican • House
Sarah Stalker
Democrat • House
Vanessa Grossl
Republican • House

Roll Call Votes

All Roll Calls

Yes: 249 • No: 18

Senate vote • 3/28/2025

passed

Yes: 32 • No: 3 • Other: 2

House vote • 3/28/2025

passed

Yes: 84 • No: 13

Senate vote • 3/14/2025

3rd reading, passed

Yes: 37 • No: 0

House vote • 3/4/2025