COMMONWEALTH OF KENTUCKY

EXECUTIVE BUDGET
Volume I
Steven L. Beshear, Governor
Jane C. Driskell, State Budget Director

2014 2016

The Kentucky Governors Mansion 1914 - 2014

TABLE OF CONTENTS
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EXECUTIVE BRANCH ........................................................................................................................................ 1

GENERAL GOVERNMENT .......................................................................................................................... 3 Office of the Governor ....................................................................................................................................... 5 Office of State Budget Director ......................................................................................................................... 7 State Planning Fund .......................................................................................................................................... 8 Homeland Security ............................................................................................................................................ 9 Veterans' Affairs .............................................................................................................................................. 10 Governors Office of Agricultural Policy .......................................................................................................... 12 Kentucky Infrastructure Authority .................................................................................................................... 14 Military Affairs .................................................................................................................................................. 16 Commission on Human Rights ....................................................................................................................... 18 Commission on Women .................................................................................................................................. 19 Department for Local Government ................................................................................................................. 20 Local Government Economic Assistance Fund ............................................................................................. 22 Local Government Economic Development Fund ......................................................................................... 24 Area Development Fund ................................................................................................................................. 27 Executive Branch Ethics Commission ............................................................................................................ 28 Secretary of State ......................................................................................................................................... 29 Board of Elections ........................................................................................................................................... 30 Registry of Election Finance ........................................................................................................................... 32 Attorney General ............................................................................................................................................. 33 Commonwealth's Attorneys ............................................................................................................................ 35 County Attorneys ............................................................................................................................................. 36 Treasury ........................................................................................................................................................... 37 Agriculture ........................................................................................................................................................ 39 Auditor of Public Accounts .............................................................................................................................. 41 Personnel Board .............................................................................................................................................. 42 Kentucky Retirement Systems ........................................................................................................................ 43 Occupational and Professional Boards and Commissions ............................................................................ 44 Kentucky River Authority ................................................................................................................................. 46 School Facilities Construction Commission ............................................................................................. 47 Teachers Retirement System......................................................................................................................... 48 Appropriations Not Otherwise Classified ........................................................................................................ 50

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ECONOMIC DEVELOPMENT .......................................................................................................................... 51 Economic Development .................................................................................................................................. 51 DEPARTMENT OF EDUCATION................................................................................................................ 53 Support Education Excellence in Kentucky (SEEK) ................................................................................. 54 Operations and Support Services ................................................................................................................... 56 Commissioners Office/Board of Education ................................................................................................ 57 Administration and Support ......................................................................................................................... 58 Guiding Support Services ........................................................................................................................... 60 Knowledge, Information and Data Services ............................................................................................... 61 Learning and Results Services ....................................................................................................................... 62 Next Generation Schools ........................................................................................................................... 63 Next Generation Learners ........................................................................................................................... 64 Assessment and Accountability .................................................................................................................. 67 State Schools............................................................................................................................................... 68 Career and Technical Education ................................................................................................................ 69 Local District Health Insurance ................................................................................................................... 70

EDUCATION AND WORKFORCE DEVELOPMENT.................................................................................. 71 General Administration and Program Support ............................................................................................... 73 Proprietary Education ...................................................................................................................................... 75 Deaf and Hard of Hearing ............................................................................................................................... 76 Kentucky Educational Television .................................................................................................................... 77 Environmental Education Council ................................................................................................................... 79 Libraries and Archives ..................................................................................................................................... 80 Libraries and Archives ................................................................................................................................. 81 Direct Local Aid............................................................................................................................................ 83 Office for the Blind ........................................................................................................................................... 85 Employment and Training ............................................................................................................................... 87 Employer and Placement Services ............................................................................................................. 88 Unemployment Insurance ........................................................................................................................... 89 Workforce Investment Act ........................................................................................................................... 91 Vocational Rehabilitation ................................................................................................................................. 92 Education Professional Standards Board ....................................................................................................... 94

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ENERGY AND ENVIRONMENT ................................................................................................................. 95 Secretary.......................................................................................................................................................... 97 Environmental Protection ................................................................................................................................ 98 Commissioner .............................................................................................................................................. 99 Water.......................................................................................................................................................... 100 Waste Management .................................................................................................................................. 101 Air Quality .................................................................................................................................................. 102 Environmental Program Support .............................................................................................................. 103 Enforcement .............................................................................................................................................. 104 Compliance Assistance ............................................................................................................................. 105 Petroleum Storage Tank Environmental Assurance Fund ...................................................................... 106 Natural Resources ......................................................................................................................................... 107 Commissioner ............................................................................................................................................ 109 Forestry ...................................................................................................................................................... 110 Technical and Administrative Support ...................................................................................................... 111 Conservation.............................................................................................................................................. 112 Oil and Gas ................................................................................................................................................ 113 Mine Permits .............................................................................................................................................. 114 Mine Reclamation and Enforcement ........................................................................................................ 115 Abandoned Mine Lands ............................................................................................................................ 116 Bond Pool Reclamation Fund ................................................................................................................... 117 Reclamation Guaranty Fund ..................................................................................................................... 118 Abandoned Mine Land Reclamation Projects .......................................................................................... 119 Mine Safety Review Commission ............................................................................................................. 120 Mine Safety and Licensing ........................................................................................................................ 121 Energy Development and Independence ..................................................................................................... 123 Environmental Quality Commission .............................................................................................................. 125 Kentucky Nature Preserves Commission ..................................................................................................... 126 Public Service Commission........................................................................................................................... 127

FINANCE AND ADMINISTRATION ......................................................................................................... 129 General Administration ................................................................................................................................. 131 Controller ....................................................................................................................................................... 133 Debt Service .................................................................................................................................................. 135 Facilities and Support Services ..................................................................................................................... 136 County Costs ................................................................................................................................................. 138 Commonwealth Office of Technology........................................................................................................... 140 Revenue......................................................................................................................................................... 142
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Property Valuation Administrators ................................................................................................................ 144

HEALTH AND FAMILY SERVICES ......................................................................................................... 145 General Administration and Program Support ............................................................................................. 147 Administrative Support .............................................................................................................................. 148 Inspector General ...................................................................................................................................... 150 Commission for Children with Special Health Care Needs ......................................................................... 152 Medicaid Services ......................................................................................................................................... 154 Medicaid Administration ............................................................................................................................ 155 Medicaid Benefits ...................................................................................................................................... 156 Behavioral Health, Developmental and Intellectual Disabilities ................................................................... 159 Community Behavioral Health .................................................................................................................. 160 Community Developmental and Intellectual Disabilities .......................................................................... 162 General Support ....................................................................................................................................... 163 Residential ................................................................................................................................................. 164 Public Health .................................................................................................................................................. 166 General Health Support ............................................................................................................................ 168 Womens Health ........................................................................................................................................ 170 Prevention and Quality Improvement ....................................................................................................... 172 Epidemiology and Health Planning ........................................................................................................... 174 Maternal and Child Health......................................................................................................................... 176 Laboratory Services .................................................................................................................................. 178 Public Health Protection and Safety ......................................................................................................... 179 Health Policy .................................................................................................................................................. 181 Family Resource Centers and Volunteer Services ...................................................................................... 182 Family Resource and Youth Services Center .......................................................................................... 183 Kentucky Commission on Community Volunteerism and Service .......................................................... 184 Income Support ............................................................................................................................................. 185 Disability Determinations ........................................................................................................................... 186 Child Support ............................................................................................................................................. 187 Community Based Services .......................................................................................................................... 188 Family Support .......................................................................................................................................... 190 Energy........................................................................................................................................................ 193 Child Care .................................................................................................................................................. 194 Family and Community Services .............................................................................................................. 197 Aging and Independent Living ...................................................................................................................... 200 Aging and Independent Living .................................................................................................................. 201 Guardianship ............................................................................................................................................. 203
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Health Benefit Exchange ............................................................................................................................... 204

JUSTICE AND PUBLIC SAFETY ............................................................................................................. 205 Justice Administration ................................................................................................................................... 207 Criminal Justice Training ............................................................................................................................... 209 Juvenile Justice ............................................................................................................................................. 210 State Police .................................................................................................................................................... 213 Corrections..................................................................................................................................................... 215 Corrections Management .......................................................................................................................... 217 Adult Correctional Institutions ................................................................................................................... 218 Community Services and Local Facilities ................................................................................................. 221 Local Jail Support ...................................................................................................................................... 223 Public Advocacy ............................................................................................................................................ 224

LABOR ...................................................................................................................................................... 227 Secretary........................................................................................................................................................ 228 General Administration and Program Support ............................................................................................. 229 Workplace Standards .................................................................................................................................... 230 Workers Claims............................................................................................................................................. 232 Occupational Safety and Health Review Commission ................................................................................. 233 Workers Compensation Funding Commission ............................................................................................ 234

PERSONNEL ............................................................................................................................................ 235 General Operations ....................................................................................................................................... 236 Public Employees Deferred Compensation Authority .................................................................................. 238 Workers Compensation Benefits and Reserve ........................................................................................... 239 State Salary and Compensation Fund .......................................................................................................... 240 State Group Health Insurance Fund ............................................................................................................. 241

POSTSECONDARY EDUCATION ............................................................................................................ 243 Council on Postsecondary Education ........................................................................................................... 244 Agency Operations .................................................................................................................................... 246 Pass Through Programs ........................................................................................................................... 247 Federal Programs ...................................................................................................................................... 249 Strategic Investment and Incentive Funding Program ............................................................................. 250 Kentucky Higher Education Assistance Authority ........................................................................................ 253 Postsecondary Education Institutions ........................................................................................................... 255 Eastern Kentucky University ..................................................................................................................... 256
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Kentucky State University ......................................................................................................................... 258 Morehead State University ........................................................................................................................ 259 Murray State University ............................................................................................................................. 260 Northern Kentucky University ................................................................................................................... 262 University of Kentucky ............................................................................................................................... 264 University of Louisville ............................................................................................................................... 266 Western Kentucky University .................................................................................................................... 268 Kentucky Community and Technical College System ............................................................................. 270

PUBLIC PROTECTION ............................................................................................................................. 271 Secretary........................................................................................................................................................ 272 Boxing and Wrestling Authority ..................................................................................................................... 273 Alcoholic Beverage Control ........................................................................................................................... 274 Charitable Gaming......................................................................................................................................... 275 Board of Claims/Crime Victims' Compensation Board ........................................................................... 276 Financial Institutions ...................................................................................................................................... 277 Horse Racing Commission............................................................................................................................ 278 Housing, Buildings and Construction ............................................................................................................ 280 Insurance ....................................................................................................................................................... 282 Tax Appeals ................................................................................................................................................... 284

TOURISM, ARTS AND HERITAGE ......................................................................................................... 285 Secretary........................................................................................................................................................ 287 Artisans Center .............................................................................................................................................. 289 Travel ............................................................................................................................................................. 290 Parks .............................................................................................................................................................. 292 General Administration and Support ........................................................................................................ 293 Resort Parks .............................................................................................................................................. 294 Recreation Parks and Historic Sites ......................................................................................................... 295 Cafeterias................................................................................................................................................... 296 Horse Park Commission ............................................................................................................................... 297 State Fair Board............................................................................................................................................. 298 Fish and Wildlife Resources.......................................................................................................................... 300 Historical Society ........................................................................................................................................... 302 Arts Council.................................................................................................................................................... 304 Heritage Council ............................................................................................................................................ 305 Kentucky Center for the Arts ......................................................................................................................... 306

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TRANSPORTATION ................................................................................................................................. 307 General Administration and Support............................................................................................................. 309 Aviation .......................................................................................................................................................... 311 Debt Service .................................................................................................................................................. 313 Highways ....................................................................................................................................................... 314 Research.................................................................................................................................................... 316 Construction............................................................................................................................................... 317 Maintenance .............................................................................................................................................. 319 Engineering Administration ....................................................................................................................... 320 Planning ..................................................................................................................................................... 321 Highway Operations .................................................................................................................................. 322 Equipment Services .................................................................................................................................. 323 Highway Safety.......................................................................................................................................... 324 Public Transportation..................................................................................................................................... 325 Revenue Sharing ........................................................................................................................................... 326 Vehicle Regulation......................................................................................................................................... 328

STATEWIDE Budget Reserve Trust Fund .......................................................................................................................... 331

vii

Executive Branch Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Surplus Expenditure Plan Current Year Appropriation Continuing Approp.-General Fund Mandated Allotments Other Current Receipts Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

9,410,218,100 25,600,900 40,826,400 133,777,900 40,949,300 -126,059,800

10,996,205,300

11,629,874,100

9,687,138,900

9,894,570,000

98,294,200 -8,060,000 11,086,439,500 78,278,000 23,775,700 102,053,700 378,372,695 6,341,974,400 800,243,300 -4,152,900 7,516,437,495 24,139,800 11,012,328,800 -2,068,700 11,034,399,900 1,634,142,200

98,294,200 -8,280,000 5,381,000 11,725,269,300 78,326,100 14,999,100 93,325,200 338,930,195 6,548,599,800 801,754,900 -4,153,700 7,685,131,195 18,706,400 11,330,197,100 3,054,100 11,351,957,600 1,641,937,000

98,294,200

98,294,200

9,525,312,800 Total General Fund Tobacco Settlement - Phase I 93,093,500 Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement 46,011,900 Budget Reduction-General Fund Tobacco -45,371,300 Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts ARRA Receipts Total Federal Funds Road Fund Regular Appropriation Surplus Expenditure Plan Other Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT General Government Economic Development Department of Education 93,734,100 652,037,800 6,085,576,400 2,027,973,400 -78,022,800 8,687,564,800 186,962,100 9,833,233,800 -11,071,300 3,322,700 10,012,447,300 1,557,664,700 17,718,000 -397,700 1,574,985,000 29,894,044,000 6,147,079,900 2,998,392,300 16,553,219,000 1,049,297,900 166,943,200 2,365,063,100 29,279,995,400 9,348,322,300 90,990,100 8,303,558,300 9,988,085,000 1,549,039,700 29,279,995,400 1,148,905,900 26,873,900 4,773,512,800

9,785,433,100 101,879,500 450,500 102,330,000 384,006,500 6,310,651,800 1,131,109,900 -135,752,900 7,690,015,300 24,362,300 10,901,024,800 -2,068,700 10,923,318,400 1,627,713,400

9,992,864,200 74,579,500 2,505,300 77,084,800 277,995,100 6,515,609,800 960,487,600 -107,753,700 7,646,338,800 20,931,400 11,198,210,000 3,054,100 11,222,195,500 1,616,567,600

1,634,142,200 31,373,472,795 6,677,743,646 3,169,185,154 18,590,458,600 1,107,436,900 229,575,500 1,110,411,100 30,884,810,900 10,975,852,300 85,096,300 7,177,507,300 11,015,693,500 1,630,666,400 30,884,815,800 1,600,656,600 25,668,600 5,172,330,700
1

1,641,937,000 32,497,620,295 6,918,542,546 3,240,162,354 19,268,872,700 1,295,593,100 224,486,700 1,109,575,700 32,057,233,100 11,614,687,200 85,344,600 7,380,171,000 11,338,679,400 1,638,461,200 32,057,343,400 1,660,047,800 32,714,800 5,450,054,900

1,627,713,400 30,128,810,200 6,336,697,051 3,096,386,464 17,614,282,585 1,090,536,700 183,868,300 1,382,151,200 29,703,922,300 9,667,632,300 97,645,200 7,412,020,200 10,902,387,000 1,624,237,600 29,703,922,300 1,079,044,300 21,944,400 4,957,557,400

1,616,567,600 30,555,050,900 6,480,875,199 3,183,274,951 17,978,468,950 1,200,582,900 178,399,500 1,178,178,700 30,199,780,200 9,875,209,000 74,900,700 7,431,285,300 11,205,293,400 1,613,091,800 30,199,780,200 1,069,035,800 43,499,800 5,024,652,900

Education and Workforce Development Energy and Environment Finance and Administration Health and Family Services Justice and Public Safety Labor Personnel Postsecondary Education Public Protection Tourism, Arts and Heritage Transportation TOTAL EXPENDITURES

1,266,569,000 251,902,900 792,320,500 9,268,376,700 928,562,000 212,534,200 61,343,500 6,645,924,000 91,659,000 224,019,000 3,587,492,000 29,279,995,400

1,313,094,300 265,229,000 901,093,700 10,580,129,200 1,052,665,100 234,531,300 65,257,900 6,913,169,300 99,945,200 265,841,500 2,395,203,400 30,884,815,800

1,318,324,700 270,612,600 948,249,500 10,971,834,900 1,094,093,500 235,412,000 67,620,100 7,215,553,600 103,252,900 285,399,100 2,404,173,000 32,057,343,400

1,279,027,200 250,019,600 839,375,900 10,300,046,500 931,724,900 234,944,700 63,473,300 6,796,519,100 97,733,400 229,688,900 2,622,822,700 29,703,922,300

1,281,922,900 252,720,700 848,089,600 10,603,884,700 943,080,000 227,360,200 64,800,700 7,042,881,200 98,922,900 229,839,900 2,469,088,900 30,199,780,200

General Government

General Government Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Continuing Approp.-General Fund Mandated Allotments Other Current Receipts Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts ARRA Receipts Total Federal Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Office of the Governor Office of State Budget Director State Planning Fund Homeland Security Department of Veterans' Affairs Governor's Office of Agricultural Policy Kentucky Infrastructure Authority Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

724,502,800 581,400 313,600 22,716,800 -77,030,600

1,192,891,800

1,228,361,100

674,436,600

657,342,700

5,381,000 671,084,000 16,291,800 26,789,400 -16,291,800 26,789,400 92,845,400 192,342,600 50,117,900 -3,300,000 332,005,900 16,447,600 198,212,300 322,700 214,982,600 500,000 500,000 1,245,361,900 319,316,400 78,968,100 493,551,100 251,981,100 5,089,200 1,148,905,900 657,789,800 26,338,900 260,070,600 204,206,600 500,000 1,148,905,900 8,317,200 3,316,900 158,700 6,641,200 53,106,300 25,076,300 62,752,300 1,192,891,800 16,291,800 23,775,700 40,067,500 71,888,700 167,762,600 65,713,500 305,364,800 10,776,000 129,605,100 140,381,100 515,200 515,200 1,679,220,400 344,176,200 91,991,300 893,097,000 263,932,200 7,459,800 1,600,656,500 1,192,891,800 25,289,600 247,071,200 134,888,800 515,200 1,600,656,600 8,433,100 3,512,000 158,700 6,901,400 58,749,800 26,757,300 62,863,000 1,233,742,100 16,291,800 14,999,100 31,290,900 58,293,600 186,237,200 67,791,100 312,321,900 5,492,300 130,110,700 135,603,000 526,400 526,400 1,713,484,300 368,972,900 95,140,900 888,272,100 302,610,000 5,051,800 1,660,047,700 1,233,742,100 25,489,800 264,895,200 135,394,300 526,400 1,660,047,800 8,759,300 3,795,100 158,700 6,965,500 70,877,000 26,625,100 74,341,500 674,436,600 20,910,600 450,500 21,361,100 71,935,300 171,934,700 64,122,400 -8,300,000 299,692,400 10,776,000 130,101,900 140,877,900 510,100 510,100 1,136,878,100 317,872,600 82,113,400 409,297,800 260,124,500 9,636,000 1,079,044,300 674,436,600 18,855,800 250,007,500 135,234,300 510,100 1,079,044,300 9,565,600 3,273,000 150,800 6,791,400 58,616,000 17,123,500 68,087,300 657,342,700 9,173,600 2,505,300 11,678,900 49,684,900 189,015,600 64,318,100 -2,800,000 300,218,600 5,643,600 130,404,200 136,047,800 512,500 512,500 1,105,800,500 330,564,600 84,109,200 376,436,900 270,454,700 7,470,400 1,069,035,800 657,342,700 11,674,300 263,917,300 135,589,000 512,500 1,069,035,800 9,667,800 3,437,700 150,800 6,765,100 68,436,000 9,651,700 73,360,700

Military Affairs Commission on Human Rights Commission on Women Department for Local Government Local Government Economic Assistance Fund Local Government Economic Development Fund Area Development Fund Executive Branch Ethics Commission Secretary of State Board of Elections Registry of Election Finance Attorney General Unified Prosecutorial System Treasury Agriculture Auditor of Public Accounts Personnel Board Kentucky Retirement Systems Occupational & Professional Boards & Commissions Kentucky River Authority School Facilities Construction Commission Teachers' Retirement System Appropriations Not Otherwise Classified TOTAL EXPENDITURES

175,624,000 1,972,300 214,300 50,042,800 50,838,500 29,415,900 498,500 547,500 3,164,500 8,046,100 1,172,800 59,829,500 76,746,400 3,202,700 31,297,800 12,048,600 803,900 38,855,900 21,685,400 3,002,200 97,397,700 307,628,200 15,501,500 1,148,905,900

103,193,700 2,657,900 245,600 51,565,400 76,786,400 80,498,600 498,500 707,200 3,445,800 10,432,000 1,470,500 31,248,900 93,897,600 3,662,000 32,053,100 13,669,700 968,900 41,867,100 24,415,700 6,007,700 108,287,700 730,199,800 15,501,500 1,600,656,600

105,982,700 2,778,100 264,500 53,271,600 76,786,400 80,498,600 498,500 740,100 3,788,500 10,596,900 1,668,700 32,456,300 98,363,900 3,749,100 33,116,900 14,642,000 1,010,100 43,051,400 25,363,100 3,601,900 138,389,700 722,405,100 15,501,500 1,660,047,800

96,947,600 1,948,200 226,400 50,298,800 55,217,500 17,953,400 473,600 531,300 3,432,000 9,484,400 1,200,900 31,093,300 83,628,500 3,266,700 32,503,200 12,763,900 845,900 40,930,800 23,362,200 5,711,700 99,634,000 338,956,000 5,026,400 1,079,044,300

97,803,800 1,983,800 232,000 50,289,100 53,662,700 17,471,300 473,600 540,200 3,689,900 9,504,400 1,220,800 31,438,300 85,299,900 3,344,500 32,891,300 12,996,700 856,000 41,306,800 23,713,700 3,527,300 108,778,500 311,515,000 5,026,400 1,069,035,800

General Government Office of the Governor Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Current Receipts ARRA Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Governor Governor's Office Expense Allowance Lieutenant Governor Lt. Governor's Expense Allowance Secretary of the Cabinet Kentucky Commission on Military Affairs Office of Minority Empowerment Faith Based Initiatives Early Childhood Advisory Council TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

5,313,600 14,200 5,327,800 1,912,500 2,101,800 -1,912,500 2,101,800 341,000 16,100 357,100 453,800 322,700 776,500 8,563,200 5,373,700 1,097,700 1,845,800 8,317,200 5,327,800 2,101,800 111,100 776,500 8,317,200 4,023,600 24,200 615,200 13,500 315,900 351,600 123,200 71,800 2,778,200 8,317,200

5,780,100

6,064,200

5,527,600

5,629,800

5,780,100 1,912,500 3,056,600 4,969,100 246,000 246,000 165,800 165,800 11,161,000 5,672,800 1,060,300 1,700,000 8,433,100 5,780,100 2,376,100 111,100 165,800 8,433,100 4,282,800 26,300 671,600 14,700 351,600 326,900 137,100 80,200 2,541,900 8,433,100

6,064,200 1,912,500 2,593,000 4,505,500 134,900 134,900 165,800 165,800 10,870,400 5,998,900 1,060,400 1,700,000 8,759,300 6,064,200 2,418,200 111,100 165,800 8,759,300 4,482,700 26,400 705,900 14,700 371,300 344,200 145,000 85,100 2,584,000 8,759,300

5,527,600 2,576,100

5,629,800 2,576,100

2,576,100 246,000 246,000 1,350,800 1,350,800 9,700,500 5,931,600 1,134,000 2,500,000 9,565,600 5,527,600 2,576,100 111,100 1,350,800 9,565,600 4,170,800 26,200 667,800 14,600 343,200 204,700 132,900 78,500 3,926,900 9,565,600

2,576,100 134,900 134,900 1,350,800 1,350,800 9,691,600 6,033,800 1,134,000 2,500,000 9,667,800 5,629,800 2,576,100 111,100 1,350,800 9,667,800 4,245,600 26,400 680,500 14,700 348,700 210,100 135,000 79,900 3,926,900 9,667,800

The Governor serves as the chief administrator of the Commonwealth and, in addition to other powers and duties, acts as Commander-in-Chief of all state military forces, makes appointments for vacancies to executive offices and memberships on boards and commissions authorized by statute, and has the power to grant pardons and commutations. As chief administrator of Kentucky, the Governor ensures that state government provides needed services to the citizens of the Commonwealth at minimum cost to the taxpayer. The Lieutenant Governor is a constitutional officer elected jointly with the Governor. The Lieutenant Governor is to assume the duties and responsibilities of the Office of the Governor should the Governor be impeached or removed from Office, die, fail to qualify, resign, or be unable to discharge the duties of that office. Additional duties of the Lieutenant Governor include serving on

various boards and commissions, serving on Kentucky delegations to several interstate compact commissions, and appointing members to various boards. The Secretary of the Executive Cabinet develops and implements the major program decisions for the Executive Branch of government. As part of these duties, the Secretary of the Cabinet oversees the administration of the various cabinets and agencies of state government and coordinates legislative policy for the Governor. This role promotes cooperation and coordination among all agencies and programs of state government. The Military Affairs Commission (KRS 154.12-203) has been a part of the Office of the Governor since 1996. The Commission serves in an advisory capacity to the Governor, the General Assembly, the Kentucky Congressional Delegation, and other appropriate government officials. This commission is designed to support the U.S. militarys widespread presence in Kentucky and to recognize its contribution to the economy and well-being of the Commonwealth. Among the installations and operations eligible for support are: Fort Knox, Fort Campbell, Bluegrass Station in Lexington, National Guard and Reserve operations throughout the state, and Bluegrass Army Depot in Richmond. The Office of Minority Empowerment was established in 2005 pursuant to KRS 12.023. The primary purpose of the Office is to help minorities realize full access to their government and be responsive to the needs of Kentuckys minority community. More specifically, the Office is charged with the responsibility of developing policies affecting Kentuckys minority community in the areas of economic empowerment, health care, housing, education, government services, and the criminal justice system. The Office also will maximize economic opportunities for minorities by reviewing state contracts awarded to minority businesses and reviewing job training and technical education initiatives to ensure and enhance the effectiveness of such programs. The constituents served by this office include, but are not limited to, minority individuals as defined and referenced in KRS 12.070, such as Native Americans, Alaskan Natives, African Americans, Hispanics, the disabled community, small-, minority-, and woman-owned businesses, and other underrepresented ethnic groups. The Office for Faith-Based and Community Nonprofit Social Services was established in 2005 pursuant to KRS 12.510. The Office has lead responsibility in the Executive Branch to establish policies, priorities, and objectives for State Government's comprehensive effort to enlist, equip, enable, empower, and expand the work of faith-based and other community organizations to the extent permitted by law. The office is patterned closely with a similar effort at the federal government level begun in 2001. The Early Childhood Advisory Council established in the Governors Office in 2011 pursuant to KRS 200.700 coordinates development and continuing activities of Community Early Childhood Councils. The councils work toward implementation of Kentuckys long-range strategic plan for early childhood development on the local level. The councils build upon existing resources, foster public-private partnerships, and work within their communities toward such goals as the availability of high quality, accessible, and affordable early childhood care and education options. The Early Childhood Advisory Council provides technical assistance, monitoring, and evaluation of outcomes of the local partnerships. Policy The Executive Budget includes a federal award for Race to the Top-Early Learning Challenge, Kentucky was one of six states to receive an award in December 2013. The grant funds will be used to expand the quality rating system of private and public early learning and development programs, support family engagement opportunities to improve a childs early development, expand professional development opportunities related to early learning and development, and improve and link early childhood data with the existing Kentucky Longitudinal Data System.

General Government Office of State Budget Director Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Budget & Policy Analysis Policy Research Economic Analysis TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

3,021,900 9,200 3,031,100 667,700 667,700 3,698,800 2,820,400 496,500 3,316,900 3,031,100 285,800 3,316,900 2,646,900 155,700 514,300 3,316,900

3,372,400

3,552,800

3,133,400

3,195,400

3,372,400 381,900 381,900 3,754,300 3,030,400 481,600 3,512,000 3,372,400 139,600 3,512,000 2,746,700 208,200 557,100 3,512,000

3,552,800 242,300 242,300 3,795,100 3,296,000 499,100 3,795,100 3,552,800 242,300 3,795,100 2,986,700 220,000 588,400 3,795,100

3,133,400 381,900 381,900 3,515,300 2,791,500 481,500 3,273,000 3,133,400 139,600 3,273,000 2,600,200 120,500 552,300 3,273,000

3,195,400 242,300 242,300 3,437,700 2,938,700 499,000 3,437,700 3,195,400 242,300 3,437,700 2,754,300 122,400 561,000 3,437,700

The Office of the State Budget Director, created in KRS 11.068, includes the Governors Office for Policy and Management (GOPM), the Governors Office for Policy Research (GOPR), and the Governors Office for Economic Analysis (GOEA). Under the direction of the State Budget Director, these Offices serve as staff to the Governor, the Governors Chief of Staff, the Secretary of the Cabinet, and the Secretary of the Finance and Administration Cabinet. The Governors Office for Policy and Management (GOPM) prepares the Executive Budget, the Governors overall financial plan for state government. The preparation of the budget includes the transmittal of information and necessary forms to state agencies, assisting those agencies in the preparation of their budget requests, analyzing the requests, and making recommendations to the Governor. Following enactment of the budget by the General Assembly, GOPM helps agencies implement the appropriations acts through their expenditures for program activities. The Governors Office for Policy Research (GOPR) performs research and analysis on public policy issues important to the Commonwealth. The Governors Office for Economic Analysis (GOEA) assists the State Budget Director and the Consensus Forecasting Group in providing timely and accurate estimates of General Fund and Road Fund receipts used to build and implement the Budget of the Commonwealth. On October 15th of each odd-numbered year, a preliminary detailed estimate of revenues for the next two fiscal years is presented to the head of the budgeting agency for each branch of state government. To inform the Governor and the General Assembly for the biennial budget process, an official estimate is made in December and presented along with the Governors Executive Budget recommendation to the General Assembly.

General Government State Planning Fund Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT State Planning Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

158,700 158,700 158,700 158,700 158,700 158,700 158,700 158,700 158,700

158,700 158,700 158,700 158,700 158,700 158,700 158,700 158,700 158,700

158,700 158,700 158,700 158,700 158,700 158,700 158,700 158,700 158,700

150,800 150,800 150,800 150,800 150,800 150,800 150,800 150,800 150,800

150,800 150,800 150,800 150,800 150,800 150,800 150,800 150,800 150,800

The State Planning Fund supports statewide planning projects designed to improve the delivery of government services. Under Chapter 147 of the Kentucky Revised Statutes, overall planning and development functions are responsibilities of the Governor's Cabinet. KRS 147.075 delegates these functions to a Cabinet committee, designated as the State Planning Committee, which fulfills these responsibilities through its management of the State Planning Fund. The State Planning Committee includes the Governor, representatives from the various program cabinets, and the State Budget Director. The Governor serves as the Chairman of the Committee and the State Budget Director serves as its Secretary. The Governor's Office for Policy and Management reviews proposed planning projects, makes recommendations for funding to the Governor and the other members of the State Planning Committee, and provides staff support to the Committee.

General Government Homeland Security Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Office of Homeland Security Commerical Mobile Radio Service TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

207,500 600 208,100 858,000 1,090,900 200 1,949,100 226,400 4,638,400 4,864,800 250,000 250,000 7,272,000 1,943,400 185,300 4,512,500 6,641,200 208,100 1,325,500 4,857,600 250,000 6,641,200 5,916,600 724,600 6,641,200

311,100

335,100

233,000

236,600

311,100 623,600 1,126,300 300 1,750,200 7,200 4,882,400 4,889,600 265,200 265,200 7,216,100 2,190,500 200,300 4,510,600 6,901,400 311,100 1,442,700 4,882,400 265,200 6,901,400 6,059,600 841,800 6,901,400

335,100 307,500 1,162,900 400 1,470,800 7,200 4,932,900 4,940,100 276,400 276,400 7,022,400 2,254,300 200,400 4,510,800 6,965,500 335,100 1,421,100 4,932,900 276,400 6,965,500 6,145,300 820,200 6,965,500

233,000 623,600 1,126,300 300 1,750,200 7,200 4,857,600 4,864,800 260,100 260,100 7,108,100 2,077,300 203,500 4,510,600 6,791,400 233,000 1,440,700 4,857,600 260,100 6,791,400 5,951,600 839,800 6,791,400

236,600 309,500 1,162,900 400 1,472,800 7,200 4,857,600 4,864,800 262,500 262,500 6,836,700 2,050,700 203,600 4,510,800 6,765,100 236,600 1,408,400 4,857,600 262,500 6,765,100 5,957,600 807,500 6,765,100

The Kentucky Office of Homeland Security (KOHS), administratively attached to the Office of the Governor in accordance with KRS 39G.010, was created to coordinate efforts with public and private partners on issues affecting homeland security. KOHS focuses on preparing Kentucky for man-made or natural disasters. Although its primary role is to serve as the states administrative liaison with the U. S. Department of Homeland Security, KOHS has initiated a comprehensive prevention-focused homeland security strategy to ensure Kentuckys communities, first responders and families have the resources and information necessary to be prepared for disaster or attack. The Commercial Mobile Radio Service Emergency Telecommunications Board (CMRS) is administratively attached to the Kentucky Office of Homeland Security pursuant to KRS 65.7623. The CMRS Board collects user fees monthly from subscribers of the approximately 35 wireless carriers providing wireless telephone service in Kentucky. These fees are used to fund technology upgrades at Kentuckys enhanced 911 centers and to enhance the networks operated by the carriers.

General Government Veterans' Affairs Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Field Services and Cemeteries Kentucky Veterans' Centers TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

14,045,400 78,200 14,123,600 3,103,800 37,681,800 40,785,600 54,909,200 43,974,100 8,325,300 550,000 256,900 53,106,300 14,123,600 38,982,700 53,106,300 5,120,700 47,985,600 53,106,300

17,323,600

20,048,000

17,702,000

17,891,100

17,323,600 1,802,900 40,139,300 41,942,200 59,265,800 49,446,400 8,726,100 550,000 27,300 58,749,800 17,323,600 41,426,200 58,749,800 5,457,500 53,292,300 58,749,800

20,048,000 516,000 50,716,100 51,232,100 71,280,100 59,527,500 10,744,200 550,000 55,300 70,877,000 20,048,000 50,829,000 70,877,000 5,771,600 65,105,400 70,877,000

17,702,000 1,802,900 39,748,900 41,551,800 59,253,800 49,508,900 8,441,800 550,000 88,000 27,300 58,616,000 17,702,000 40,914,000 58,616,000 5,469,800 53,146,200 58,616,000

17,891,100 637,800 50,310,200 50,948,000 68,839,100 57,196,000 10,458,700 550,000 176,000 55,300 68,436,000 17,891,100 50,544,900 68,436,000 5,636,300 62,799,700 68,436,000

The Kentucky Department of Veterans Affairs (KDVA), established by KRS 40.300, assists over 370,000 Kentucky veterans and their families in applying for federal, state, and local veteran's benefits. Services include: benefits counseling and claims processing regarding the existence or availability of educational, training, and retraining facilities; health, medical rehabilitation, and housing services and facilities; employment and reemployment services; and provision of services under federal, state, and local laws affording rights, privileges, and benefits to eligible veterans and their dependents. These services are supported by a cooperative network of veterans benefits field representatives, volunteers, and personal service contracts with major veterans' organizations. Pursuant to KRS 40.325, the Office of Kentucky Veterans Centers within the KDVA manages Kentuckys three state veterans nursing homes, which serve the long-term nursing care needs of Kentuckys elderly veteran population, which includes about 110,000 of Kentuckys veterans. The Thomson-Hood Veterans Center, located in Wilmore in Jessamine County, is a 285-bed long-term nursing care facility specifically for Kentucky's elderly veteran population. The Eastern Kentucky Veterans' Center is a 120-bed facility located in Hazard (Perry County). The Western Kentucky Veterans' Center is a 120-bed facility in Hanson (Hopkins County). Both facilities opened in 2002 and include in-house physician care, nurse practitioners, 24-hour nursing staff, and staffing for a rehab therapy department, barbershop, library, gift shop, laundry facility, and a dietary department. In April 2013, KDVA opened a 36-bed expansion at the Western Kentucky Veterans Center that utilizes the new Community Living Concept recently required by the federal Veterans Administration. Three 12-bed buildings will provide a more personalized care for its residents. A fourth 120-bed Veterans Center, in Hardin County, began construction during the Fall of 2013 and will also utilize the Community Living Concept. The KDVA is required by KRS 40.315 to establish and maintain Kentucky state veterans cemeteries. The Kentucky Veterans Cemetery-West is located on Highway 41A south of Hopkinsville. The Veterans Cemetery-Central in Ft. Knox opened in June 2007. The Veterans Cemetery-North near Williamstown opened in early fiscal year 2009. The Veterans Cemetery-Northeast in Greenup County opened in the fall of 2010. Each facility includes an administration building, a maintenance building with service area, committal facility, a columbarium, appropriate parking, road network, walking path and landscaping. The Veterans Cemetery-Southeast in Leslie County was authorized by the 2006 General Assembly and is in the process of site selection. KRS 40.600 established the Women Veterans Program to ensure Kentucky women veterans have equitable access to federal and state veterans services and benefits. KRS 40.350 established the Wounded or Disabled Veterans Program to assist
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wounded or disabled veterans in the transition from active service and ensure they receive the federal, state and private benefits to which they are entitled as wounded or disabled veterans. The KDVA contracts with Volunteers of America to help support the operation of a Homeless Veterans Transitional Shelter which opened for business in April 2005 on the Leestown Veterans Administration Hospital property in Lexington. Policy The Executive Budget includes $2,055,000 from the General Fund in fiscal year 2015 and $1,600,000 in fiscal year 2016 for operation of the new Veterans Center in Radcliff, Kentucky. The Executive Budget includes $50,000 from the General Fund in fiscal year 2016 for operation of Kentucky Veterans Cemetery in Leslie County. The Executive Budget provides General Fund in the amount of $88,000 in fiscal year 2015 and $176,000 in fiscal year 2016 for debt service on new bonds included in the capital budget.

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General Government Governor's Office of Agricultural Policy Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Governor's Office of Agricultural Policy TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

3,000,000 3,000,000 14,379,300 24,687,600 -14,379,300 24,687,600 1,353,600 120,000 350,000 1,823,600 26,511,200 1,622,600 370,100 23,083,600 25,076,300 14,379,300 20,719,100 35,098,400 984,400 114,600 300,000 1,399,000 39,497,400 1,813,700 360,000 24,583,600 26,757,300 3,000,000 22,913,500 843,800 26,757,300 26,757,300 26,757,300

3,000,000 3,000,000 14,379,300 12,406,100 26,785,400 555,200 124,300 100,000 779,500 30,564,900 1,906,500 360,000 24,358,600 26,625,100 3,000,000 23,071,600 553,500 26,625,100 26,625,100 26,625,100 18,334,500 450,500 18,785,000 984,400 114,600 300,000 1,399,000 20,184,000 1,789,300 360,000 14,974,200 17,123,500 6,597,500 2,505,300 9,102,800 555,200 124,300 100,000 779,500 9,882,300 1,817,500 360,000 7,474,200 9,651,700

24,237,100 839,200 25,076,300 25,076,300 25,076,300

16,279,700 843,800 17,123,500 17,123,500 17,123,500

9,098,200 553,500 9,651,700 9,651,700 9,651,700

The Governors Office of Agricultural Policy (GOAP) is the Governors direct link to the Commonwealths agricultural industry. The Kentucky Agricultural Development Board, the Kentucky Agricultural Finance Corporation and the Kentucky Agricultural Resource Development Authority are staffed by the employees in this Office. The Kentucky Agricultural Development Board, authorized in KRS 248.707, distributes funds received by the Commonwealth from the Tobacco Master Settlement Agreement (Phase I money). The Board invests in innovative proposals that increase net farm income and assists tobacco farmers and tobacco-impacted communities by stimulating markets, finding new ways to add value to existing products, and promoting diversification of Kentuckys agricultural economy. The Agricultural Development Board has sixteen members, described in KRS 248.707(2). They are the Governor, Commissioner of Agriculture, Secretary of the Cabinet for Economic Development, Director of the University of Kentucky Cooperative Extension Service and President of Kentucky State University, along with eleven members appointed by the Governor to staggered terms. Those appointees include representatives of the Kentucky Farm Bureau, the Kentucky Chamber of Commerce, an attorney, an agricultural lender, and seven active farmers. Half of Kentuckys tobacco settlement receipts are allocated to the Agricultural Development Fund. That amount is further divided between a counties account for county level grants and a state account for investments that have a regional or statewide purpose. From the state account, the General Assembly has appropriated debt service for bonds to support farmland preservation and safe drinking water, water and sewer infrastructure projects, the Kentucky Agricultural Heritage Center, improvements to 4-H camps and FFA Leadership Center, and funding for land conservation programs. A portion of funds received into the Agriculture Development Fund are allocated for projects at the county level. The specific funding level of a county is dependent upon its tobacco-production dependency in relation to other counties within the state as described in KRS 248.703(3). One hundred and eighteen of Kentuckys 120 counties receive a portion of county allocation. Each county has a council of local agriculture leaders who consider applications for grants from the countys share of funds and prioritizes them for the Agricultural Development Board, which has the final grant authority for each countys funds. The Board has developed several programs in which counties may participate. Funds are provided as matching grants.

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In addition to their work with the Kentucky Agricultural Development Fund, personnel at GOAP provide staffing for the Kentucky Agricultural Finance Corporation. The Kentucky Agricultural Finance Corporation is a de jure municipal corporation created in KRS 247.944 to provide access to capital for farmers and other agricultural enterprises. The Commissioner of the Kentucky Department of Agriculture serves as the Chair and the Secretary of the Finance Cabinet serves as another statutory member. The Governor appoints the remaining ten board members. Policy The Executive Budget suspends KRS 248.703(1)(a), and directs that the counties portion of the Tobacco Settlement-Phase I payments will be $13,500,000 in fiscal year 2015 and $6,000,000 fiscal year 2016.

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General Government Kentucky Infrastructure Authority Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Receipts Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Kentucky Infrastructure Authority TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,387,800 400

1,388,200

1,388,200

1,337,300

1,573,300

5,381,000 1,388,200 186,200 31,861,500 32,047,700 29,316,400 29,316,400 62,752,300 2,870,200 310,500 29,015,600 30,556,000 62,752,300 1,388,200 32,047,700 29,316,400 62,752,300 62,752,300 62,752,300 1,388,200 6,769,200 1,337,300 1,573,300

32,127,600 32,127,600 29,347,200 29,347,200 62,863,000 3,040,700 310,500 28,984,800 30,527,000 62,863,000 1,388,200 32,127,600 29,347,200 62,863,000 62,863,000 62,863,000

38,204,600 38,204,600 29,367,700 29,367,700 74,341,500 3,124,700 310,500 28,964,300 41,942,000 74,341,500 6,769,200 38,204,600 29,367,700 74,341,500 74,341,500 74,341,500

37,381,000 37,381,000 29,369,000 29,369,000 68,087,300 2,886,200 320,300 28,984,800 35,896,000 68,087,300 1,337,300 37,381,000 29,369,000 68,087,300 68,087,300 68,087,300

42,405,500 42,405,500 29,381,900 29,381,900 73,360,700 2,910,600 320,300 28,964,300 41,165,500 73,360,700 1,573,300 42,405,500 29,381,900 73,360,700 73,360,700 73,360,700

The Kentucky Infrastructure Authority (KIA) pursuant to KRS Chapter 224A funds the acquisition and construction of infrastructure projects as defined in KRS 224A.011(16) and the remediation of property owned by governmental agencies. KIA also coordinates regional infrastructure planning to promote higher levels of technical, managerial and financial capacity of water based utilities. KIA with the assistance of the Area Development Districts coordinates water and wastewater planning by the Area Water Management Councils. The Councils establish water planning areas, develop and maintain the regional water management plan and identify and prioritize water and wastewater projects. The authority is administratively attached to the Department for Local Government. The agency is authorized to issues notes and bonds to provide infrastructure financing for governmental agencies and to a limited extent investor-owned private utilities. The provisions of KRS 224A.165 dictate certain limits on the amount of notes and bonds the Authority can have outstanding. The purpose of the loans is to assist in financing the construction of infrastructure projects. The Authority also provides grants and subsidized loan incentives. The following provides a description of the Authority's programs: Fund A Wastewater Revolving Loan Program Local wastewater treatment facilities that qualify under the U.S. Environmental Protection Agency (EPA) standards are financed through this program. Jointly administered by the KIA and the Kentucky Division of Water in the Energy and Environment Cabinet, loans are provided to governmental agencies at below-market interest rates. Fund B Revolving Loan/Grant Program Loans are made to governmental entities that are unable to wholly finance a project through other public grant or loan programs, through commercial credit at reasonable rates, or from their own resources. The loans are offered at or below market interest rates for a term not to exceed 30 years. Grants are available, but are reserved for borrowers facing both a financial hardship and an extreme health hazard.

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Fund B 2020 Program This fund provides financing primarily for, but not limited to, water service projects. The fund promotes the merger and consolidation of systems, and encourages the increased financial, managerial, and technical capacity of systems to provide service. Fund C Governmental Agencies Program This program provides local governmental agencies access to funding at better terms than could be obtained on an independent basis. Loans are available at terms of up to thirty years for any eligible infrastructure project owned by governmental entities in the Commonwealth. The loans may be used to fund totally a construction project or they can be used to supplement grants or cash contributions. Fund F Drinking Water Revolving Loan Fund This fund was established to assist in financing local drinking water treatment and distribution facilities that qualify under EPA requirements. Projects must be recommended by the Kentucky Division of Water in the Energy and Environment Cabinet from the Project Priority List and must be financially feasible as determined by KIA staff. Coal Development and Tobacco Development Funds These funds were created by the 2003 Regular Session of the General Assembly to support various water and sewer projects in Coal Producing and Tobacco Producing Counties. The Authority coordinates the process of implementation and provides project administration for the projects funded in these programs. Infrastructure for Economic Development Funds These funds were authorized by the 2005, 2006 and 2008 General Assembly for an array of water and sewer projects included in the Commonwealth budget by specific designation. The Authority coordinates the implementation process and provides project administration for the projects funded in these programs. Local Government Economic Development Fund (Coal Severance Tax Projects) These funds were authorized by the 2008, 2010 and 2012 General Assembly from the respective single county fund for projects in coal-producing counties. The Authority coordinates the process of implementation and provides project administration for the water and sewer related projects funded in this program. The program is administered jointly with the Department for Local Government. Policy The Executive Budget includes General Fund appropriations in the amount of $370,000 in fiscal year 2015 and $370,000 in fiscal year 2016 from the Local Government Economic Development Fund to support services provided to coal producing counties by KIA. Included in the General Fund appropriation is $135,000 in fiscal year 2016 for debt service to support $3,100,000 in bonds to match an estimated $32,439,000 in Federal Funds for the Federally Assisted Wastewater Revolving Loan Fund program (Fund A). Included in the General Fund appropriation is $101,000 in fiscal year 2016 for debt service to support $2,300,000 in bonds to match an estimated $25,511,000 in Federal Funds for the Safe Drinking Water State Revolving Loan Fund program (Fund F). Included in the capital budget is authorization for the Kentucky Infrastructure Authority to expend loan repayment receipts on deposit at the trustee bank to support Agency Leverage Bonds for the Wastewater Revolving Loan program (Fund A) and the Safe Drinking Water Revolving Loan program (Fund F).

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General Government Military Affairs Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Mandated Allotments Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Statutory State Operations Emergency Management National Guard Operations Emergency & Public Safety Operations Bluegrass Station Central Clothing Distribution Federal & Grant Operations TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

8,674,700 38,600 12,500,000 21,213,300 24,342,000 38,441,000 -4,217,700 58,565,300

12,248,200

13,538,800

9,049,000

9,336,700

12,248,200 16,969,000 44,083,100 482,300 61,534,400

13,538,800 14,596,000 45,438,500 482,300 60,516,800

9,049,000 17,269,000 42,649,700 482,300 -5,000,000 55,401,000

9,336,700 10,657,200 43,602,300 482,300 54,741,800 151,300 43,331,000 43,482,300 107,560,800 39,438,200 36,684,900 13,740,800 1,931,700 6,008,200 97,803,800 9,336,700 45,234,900 43,232,200 97,803,800 30,143,800 23,204,200 200,000 12,939,100 28,632,000 2,684,700 97,803,800

113,114,400 113,114,400 192,893,000 43,793,600 32,700,000 93,760,400 1,795,200 3,574,800 175,624,000 21,213,300 41,296,300 113,114,400 175,624,000 30,195,600 102,949,800 200,000 2,500,000 10,367,000 27,270,300 2,141,300 175,624,000

44,007,100 44,007,100 117,789,700 39,705,200 43,865,700 13,740,800 2,307,200 3,574,800 103,193,700 12,248,200 46,938,400 44,007,100 103,193,700 33,754,400 23,818,600 200,000 14,487,100 28,373,100 2,560,500 103,193,700

44,150,100 44,150,100 118,205,700 42,141,000 44,218,900 13,740,800 2,307,200 3,574,800 105,982,700 13,538,800 48,293,800 44,150,100 105,982,700 34,773,400 24,233,200 200,000 14,742,100 29,177,700 2,856,300 105,982,700

43,306,100 43,306,100 107,756,100 38,419,000 36,938,900 13,740,800 1,840,700 6,008,200 96,947,600 9,049,000 44,743,800 43,154,800 96,947,600 29,928,400 23,093,100 200,000 12,907,600 28,271,700 2,546,800 96,947,600

The Department of Military Affairs is responsible for all military matters and disaster and emergency service coordination in the Commonwealth. The Governor is constitutional Commander-in-Chief of the Kentucky National Guard and appoints the Adjutant General. The Adjutant General commands the Kentucky National Guard and directs and coordinates all programs in the Department. Units of the Kentucky National Guard may be called to duty by the Governor in the event of civil strife or disorder or the occurrence of natural or man-made disasters. The Department has the responsibility for organizing, equipping, training, and housing these units. The Department consists of the following organizational units: The Division of Emergency Management; the Office of Kentucky Community Crisis Response; and the Office of Management and Administration, which contains the Division of Administrative Services, Division of Facilities, Logistics Operations Division, Bluegrass Station Division, and the Youth Challenge Program. The Division of Emergency Management is responsible for all aspects of emergency management including planning, assessment, mitigation, response, and recovery in the Commonwealth. The Division works with local emergency management programs to

16

maintain a coordinated program and operates field offices across the state. The Emergency Operations Center in Frankfort is the hub for coordination during an emergency and is operated by the Division. The Center operates on a twenty-four hour basis and serves as a warning point, communications and command center. The Kentucky Community Crisis Response Board oversees the delivery of crisis response services including consultation, risk assessment, referral, and on site crisis intervention services to persons impacted by an emergency or disaster. The Division of Facilities is responsible for maintaining nearly 50 armories across the state as well as the facilities at Wendell H. Ford Regional Training Center in Muhlenberg County, the Emergency Operations Center in Frankfort, and various other facilities statewide. The Department also operates Bluegrass Station in Fayette County, formerly the AVON Army Depot. The property was acquired by the Commonwealth in 1989 under the Base Re-alignment and Closure Act. This 777 acre facility includes more than 2.4 million square feet and houses 28 tenants that employ over 2,800 Kentuckians. Estimated economic impact of Bluegrass Station exceeds $248,000,000 per fiscal year. Bluegrass Station is also home to the Logistic Operations Divisions Central Clothing Distribution Facility which employees over 200 employees that are responsible for the complete supply chain management and logistics for clothing to all military units of the Army National Guard, Air National Guard, U.S. Marine Corps Reserve and the U.S. Navy Reserve. The Youth Challenge Program is a 22-week residential development and training program for youth between 16 18 years of age who are high school dropouts, drug-free, unemployed and free of serious involvement in the criminal justice system. The program is operated by the Kentucky National Guard and is located in Hardin and Harlan Counties. The 2012-2014 enacted budget allows students accepted in the Challenge Program to be included in the student count used for determining state funding allocated to local school districts through the Support Education Excellence in Kentucky (SEEK) program. The district will calculate the SEEK Funds for the Challenge enrollees and transmit the funds to the Challenge Academy. Policy The Executive Budget provides General Fund of $45,500 in fiscal year 2015 and $136,500 in fiscal year 2016 for debt service on new bonds included in the capital budget. The Executive Budget reallocates General Fund in the amount of $500,000 in fiscal year 2015 and fiscal year 2016 from Juvenile Justice to Military Affairs to support the Youth Challenge Program.

17

General Government Commission on Human Rights Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT General Administration and Support Enforcement Branch Research and Information Legal Affairs TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,648,700 6,600 1,655,300 74,500 242,500 317,000 1,972,300 1,770,300 202,000 1,972,300 1,655,300 317,000 1,972,300 687,400 663,700 344,300 276,900 1,972,300

2,412,900

2,533,100

1,703,200

1,738,800

2,412,900

2,533,100

1,703,200

1,738,800

245,000 245,000 2,657,900 2,319,900 338,000 2,657,900 2,412,900 245,000 2,657,900 884,300 785,600 558,300 429,700 2,657,900

245,000 245,000 2,778,100 2,440,100 338,000 2,778,100 2,533,100 245,000 2,778,100 921,600 826,000 582,100 448,400 2,778,100

245,000 245,000 1,948,200 1,832,000 116,200 1,948,200 1,703,200 245,000 1,948,200 692,200 611,200 358,000 286,800 1,948,200

245,000 245,000 1,983,800 1,868,100 115,700 1,983,800 1,738,800 245,000 1,983,800 703,900 621,100 366,000 292,800 1,983,800

The Kentucky Commission on Human Rights is the sole state civil rights enforcement agency in Kentucky, and is mandated to safeguard all individuals within the state from discrimination. Pursuant to KRS Chapter 344, the Commission investigates, litigates, and administratively decides complaints of discrimination in the areas of employment, public accommodation, housing, and credit based on race, religion, national origin, age, disability, sex, smoking in employment, and familial status for housing decisions. The Commission has four service units: General Administration and Support, Enforcement, Research and Information, and Legal Affairs. General Administration and Support performs personnel and fiscal activities and serves as a liaison with the Governor's Office, legislators, and other agencies in state government. This unit is responsible for development of internal policy directives and legislative initiatives. The Enforcement Branch consists of two sections: Employment/Public Accommodations and Housing. Employees assigned to these sections receive, investigate, and conciliate complaints of discrimination in the areas of employment, public accommodation, credit transactions, and housing. The Research and Information Branch provides technical assistance and education to local citizen groups, employers, public accommodations staff, educational institutions, local human rights commissions, and government officials. The staff conducts seminars and workshops on sexual harassment, the Kentucky Civil Rights Act, cultural diversity, and the Americans with Disabilities Act. The Legal Affairs Branch litigates discrimination cases before administrative hearing officers, provides legal advice to inquiries, sworn complaints, and file closures. The legal staff takes depositions of witnesses, prepares legal briefs and appeals, and serves as inhouse counsel. Policy The Executive Budget includes additional Federal Fund appropriation in fiscal year 2014 of $83,400 to meet projected expenditures.

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General Government Commission on Women Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Commission on Women TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

212,400 1,000 213,400 900 900 214,300 199,300 15,000 214,300 213,400 900 214,300 214,300 214,300

245,600

264,500

226,400

232,000

245,600

264,500

226,400

232,000

245,600 230,500 15,000 245,500 245,600 245,600 245,600 245,600

264,500 249,400 15,000 264,400 264,500 264,500 264,500 264,500

226,400 211,400 15,000 226,400 226,400 226,400 226,400 226,400

232,000 217,000 15,000 232,000 232,000 232,000 232,000 232,000

The Kentucky Commission on Women (KCW), authorized in KRS 344.510, consults with and advises the Governor and the agencies, department, boards and commissions of the state and local and municipal governments on matters pertaining to, and of interest to women. The KCW promotes, encourages, and provides advisory assistance in the establishment of local volunteer community improvement programs for, and of interest to women. The KCW conducts programs, studies, seminars, and conferences, and encourages state and local womens business, professional, and civic organizations to do likewise, to educate the public to the problems of women. The KCW cooperates with the federal government and with the governments of other states in programs relating to women. The KCW maintains and provides a clearinghouse for information and referrals on a variety of issues affecting women, and may serve as a resource for the executive branch on various legislative matters pertaining to women. The KCW maintains the watercolor Kentucky Women Remembered Exhibit in the West Wing of the Capitol. The KCW staff coordinates state-wide collaborative efforts, such as the Womens Leadership Council and the Kentucky Womens Health Coalition, in order to communicate to the executive branch the challenges and resources that exist for Kentucky women.

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General Government Department for Local Government Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Continuing Approp.-General Fund Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Operations Grants TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

7,844,100 16,200 63,700 7,924,000 215,800 1,028,600 1,244,400 747,900 40,769,500 41,517,400 50,685,800 5,137,000 690,600 44,215,200 50,042,800 7,924,000 1,100,000 41,018,800 50,042,800 5,003,700 45,039,100 50,042,800

9,350,000

11,109,000

7,867,800

7,937,600

9,350,000 144,400 1,028,500 1,172,900 498,600 40,866,200 41,364,800 51,887,700 6,680,400 645,600 44,239,400 51,565,400 9,350,000 1,099,900 41,115,500 51,565,400 6,429,700 45,135,700 51,565,400

11,109,000 73,000 1,028,500 1,101,500 249,300 40,813,400 41,062,700 53,273,200 7,051,600 645,600 44,139,400 1,435,000 53,271,600 11,109,000 1,099,900 41,062,700 53,271,600 8,188,700 45,082,900 53,271,600

7,867,800 144,400 1,228,500 1,372,900 498,600 40,881,800 41,380,400 50,621,100 5,315,700 850,200 44,132,900 50,298,800 7,867,800 1,299,900 41,131,100 50,298,800 5,254,000 45,044,800 50,298,800

7,937,600 73,000 1,228,500 1,301,500 249,300 40,802,300 41,051,600 50,290,700 5,406,000 850,200 44,032,900 50,289,100 7,937,600 1,299,900 41,051,600 50,289,100 5,323,800 44,965,300 50,289,100

The Department for Local Government (DLG), pursuant to KRS 147A.002, is an independent agency attached to the Office of the Governor. DLG serves as the liaison between the Governor and local units of government. It coordinates and resolves local government issues and concerns. The Department administers grants-in-aid, and serves as the cognizant state agency for Kentuckys fifteen Area Development Districts. The Commissioners Office formulates policy that governs programs administered by the Department. The office also serves as a liaison with state and federal agencies that deal with each of the Kentuckys 120 counties, 420 cities, 1500 special districts and the 15 Area Development Districts. The Trover Grant which brings University of Louisville medical students to the Western Kentucky Coal Fields for a portion of their residency is administered by the Commissioners Office. The Federal Grants Office administers the Community Development Block Grant program for small cities, the Neighborhood Stabilization Program, the Land and Water Conservation Fund and the Kentucky Recreational Trails program. Moreover, the Office develops and conducts training programs for local governments across the Commonwealth in conjunction with other governmental agencies, associations and the Area Development Districts. It maintains the Commonwealths Clearinghouse for all federal grants and administers the Joint Funding Agreement and Appalachian Regional Commission grants. The Flood Control program also is administered by the Federal Grants Office. In partnership with federal and local agencies, the matching program lessens flood damage losses by providing structural and nonstructural assistance to Kentucky communities. The Fund ensures that matching funds required by the U.S. Army Corp of Engineers, Federal Emergency Management Agency, and Natural Resources Conservation Service are available for vital projects. The program provides matching dollars for federal grants for straight sewage pipe removal projects funded by the Personal Responsibility in a Desirable Environment program.

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The Field Services Office makes state government more accessible to citizens of the Commonwealth. Field service representatives travel throughout the Commonwealth of Kentucky and answer citizens questions, resolve problems, and aid local government officials with their government duties. The Office of Financial Management and Administrative Services provides agency administrative support. It has responsibility for personnel administration, payroll, purchasing, library management, accounting, and budgeting for the entire agency. The Office provides information technology support for the Department and to local government units. The Office of State Grants promotes economic development in Kentuckys localities. It is responsible for financial management, accounting, and fund allocation and reporting of the Local Government Economic Development Fund (LGEDF) which contains the Local Government Economic Development Program (LGEDP) and the Local Government Economic Assistance Fund (LGEAF) The agency also reviews and approves LGEDF statutory grant applications. In addition, the Office of State Grants oversees additional programs assigned by the General Assembly through the budget and as requested by other State agencies. Policy The Executive Budget includes an allocation from the General Fund of $1 million in each year of the biennium for the Trover Clinic Grant in Madisonville. These General Fund dollars are derived from coal severance revenues. Included in the Restricted Funds appropriation in each fiscal year of the biennium is $200,000 for administrative support of the Shaping Our Appalachian Region (SOAR) initiative. Included in the Restricted Funds appropriation in each fiscal year of the biennium is $200,000 for support of the 12 Multi-County Regional Industrial Park Authorities funded from the Local Government Economic Development Funds Multi-County account.

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General Government Local Government Economic Assistance Fund Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Other Total General Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT County Coal Severance Cities Coal Severance County Mineral Severance Cities Mineral Severance TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

76,786,400 -25,947,900 50,838,500 50,838,500 50,838,500 50,838,500 50,838,500 50,838,500 28,601,800 3,050,300 17,285,200 1,901,200 50,838,500

76,786,400 76,786,400 76,786,400 76,786,400 76,786,400 76,786,400 76,786,400 43,200,000 4,607,200 26,107,600 2,871,600 76,786,400

76,786,400 76,786,400 76,786,400 76,786,400 76,786,400 76,786,400 76,786,400 43,200,000 4,607,200 26,107,600 2,871,600 76,786,400

55,217,500 55,217,500 55,217,500 55,217,500 55,217,500 55,217,500 55,217,500 31,065,300 3,313,100 18,774,100 2,065,000 55,217,500

53,662,700 53,662,700 53,662,700 53,662,700 53,662,700 53,662,700 53,662,700 30,190,600 3,219,800 18,245,500 2,006,800 53,662,700

The Local Government Economic Assistance Fund (LGEAF) in KRS 42.450-42.495 is a revenue sharing program that was created by the 1980 Regular Session of the General Assembly to return a portion of the coal and minerals severance taxes to local governments in areas where the minerals were extracted. These funds are used by those communities to strengthen and to improve the environment for new industry and to improve the quality of life of the residents. Counties that contain industries that are involved in the production of coal or minerals such as natural gas, oil, and stone and incorporated cities within those counties are eligible to receive LGEAF payments. Likewise, counties and their cities affected by the transportation of coal are eligible to receive a portion of the returned severance taxes. The LGEAF coal severance tax program currently returns funds to an estimated 60 counties and approximately 248 cities at the end of each fiscal quarter. Kentucky law provides that an amount equal to 15 percent of the coal severance tax receipts be transferred to the LGEAF for subsequent allocation and distribution to local governments. Quarterly allocations are made to localities according to such criteria as population, income, the amount and distance coal is transported over local areas, and taxes collected from the county. Additionally, the LGEAF minerals severance tax program currently returns funds to an estimated 102 counties and approximately 359 cities at the end of each fiscal quarter. Kentucky law provides that an amount equal to 50 percent of the other mineral tax receipts be transferred to the LGEAF for subsequent allocation and distribution to local governments. Quarterly allocations are made to localities according to such criteria as population, income, the amount and distance coal is transported over local areas, and taxes collected from the county. KRS 42.455(2)(3)(4) specifically prohibits the expenditure of LGEAF for the administration of government. Coal impact counties must expend 100 percent of funds in the transportation category. Thirty percent of all funds given to coal producer counties must be expended on the county coal haul road system. Expenditure of the remaining 70 percent given to coal producers and 100 percent of non-coal mineral severance producing funds must be directly related to the remaining priority categories: Public safety, including law enforcement, fire protection, ambulance service and other related services, Environmental protection, including sewage disposal, sanitation, solid waste and other related programs, Public transportation, including mass transit systems, streets and roads, Health, Recreation, Libraries and educational facilities, Services for the poor, aged, and handicapped, Industrial and economic development, Vocational education; and Workforce.

22

Policy Due to the decline in coal severance tax revenues and the financial difficulties that has imposed on county fiscal courts operating budgets, the Executive Budget proposes to increase the share of coal severance tax receipts allocated to local governments from 15% to 17.5% for both fiscal year 2015 and fiscal year 2016. This change results in $5,000,000 more each year to local governments.

23

General Government Local Government Economic Development Fund Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Other Total General Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Economic Development Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

80,498,600 -51,082,700 29,415,900 29,415,900 29,415,900 29,415,900 29,415,900 29,415,900 29,415,900 29,415,900

80,498,600 80,498,600 80,498,600 80,498,600 80,498,600 80,498,600 80,498,600 80,498,600 80,498,600

80,498,600 80,498,600 80,498,600 80,498,600 80,498,600 80,498,600 80,498,600 80,498,600 80,498,600

17,953,400 17,953,400 17,953,400 17,953,400 17,953,400 17,953,400 17,953,400 17,953,400 17,953,400

17,471,300 17,471,300 17,471,300 17,471,300 17,471,300 17,471,300 17,471,300 17,471,300 17,471,300

The Local Government Economic Development Fund (LGEDF) in KRS 42.458-42.495 is a revenue-sharing program that was created by the 1992 Kentucky General Assembly to provide coal producing counties with the means to diversify their economies. The governing statute mandates that 35 percent of coal severance tax revenue be returned to coal producing counties. Twothirds of the funds are distributed to individual county accounts using a formula based on coal severance taxes paid from the county, surplus labor rate, relative mining earnings, and relative mining employment. One-third of the dollars are reserved for the Multi-County Fund for joint projects. Currently, 34 counties receive coal severance allocations. The Department for Local Government (DLG) is responsible for LGEDF financial management, accounting, and fund allocation and reporting. It also reviews and approves LGEDF grant applications for both the Single County and Multi-County Accounts. DLG oversees those projects and others authorized by the General Assembly through the budget. The accompanying chart illustrates the policy described below. Off-the-Top Funding Items: Notwithstanding KRS 42.4582 and KRS 42.4585, $1,000,000 in each fiscal year is provided to the Trover Clinic Grant through the Department for Local Government. Pursuant to KRS 164.7890 and KRS 164 .7891, in each fiscal year, $800,000 is provided for Pharmacy Scholarships and $872,500 is provided to the Osteopathic Medicine Scholarship Program through the Kentucky Higher Education Assistance Authority. Out-of-the-Middle Funding Items: The Executive Budget provides funding to support the Read to Achieve Program in the Department of Education of $3,000,000 each year, support services provided to coal producing counties by the Department of Local Government and the Kentucky Infrastructure Authority by allocating $1,039,700 in each fiscal year, allocation of $300,000 each year for a Mining Engineering Scholarship Program at the University of Kentucky, funding for the Robinson Scholars Program in the amount of $1,000,000 in each fiscal year to the University of Kentucky, $2,500,000 in each fiscal year to the Department of Education for purpose of enhancing education technology in local school districts within coal-producing counties, $7,552,000 is provided each year of the 2014-16 biennium to the Mine Safety and Licensing budget to help implement mine safety statutory requirements, and $500,000 is provided in each fiscal year for the Save the Children program. Debt service support of $31,282,300 is provided each year as follows; $4,617,900 each year for $54,700,000 in schools facilities construction projects (2002-04), $4,091,400 each year for $54,765,000 for KIA water and sewer projects (2002-04), $6,472,700 in each year for $80,000,000 in KIA water and sewer projects (2004-06), $8,562,300 in each year for part of the $100,000,000 in KIA water and sewer projects (2006-08), and $7,538,000 in each year for part of $75,000,000 in KIA water and sewer projects (2008-10). Multi-County Fund Items: The Executive Budget finances the following items from the Multi-County Fund: $2,000,000 in each fiscal year of the biennium to the Office of Drug Control Policy to support the Operation Unite grants in coal-producing counties, $1,584,500 in fiscal year 2015 and $1,423,800 in fiscal year 2016 to the Department for Energy Development and Independence to support energy research and development projects targeted solely to Kentuckys LGEDF eligible counties, $200,000 in each fiscal year from the LGEDF Multi-County Fund to the Department for Local Government to be distributed to the 12 Multi-County Regional Industrial Park Authorities, $200,000 in each year for administrative support of the Shaping Our Appalachian Region (SOAR) initiative, and $2,000,000 for the Coal County College Completion Scholarship Program administered by the Kentucky Higher Education Assistance Authority.

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Policy The Executive Budget suspends KRS 42.4585 to return 32.5% of the coal severance tax receipts to coal producing counties and transfer 17.5% of the coal severance tax receipts to the Local Government Economic Assistance Fund for fiscal year 2015 and fiscal year 2016. The Executive Budget includes $2,000,000 in each fiscal year for the Regional Strategic Development Fund from the portion of the Single County Fund allocated to counties in Eastern Kentucky. Single County funds allocated to Western Kentucky counties are not impacted by this initiative. Notwithstanding KRS 42.4588(2), LGEDF allocations from the Single County Funds to each coal-producing county and from the Multi-County Fund above the amounts specified in the budget bill may be used to support the nonrecurring investments in public health and safety, economic development, public infrastructure, information technology development and access, and public water and wastewater development.

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Severance Tax Dedicated Programs 2014-2016 Biennium Using Consensus Forecast Estimate FY 2014 Revised FY 2015 Recommended FY 2016 Recommended

Coal Severance Tax Resources

Coal Severance Tax* Less : Trover Clinic Grant Less : Osteopathic Medicine Scholarship Program (KRS 164.7891) Less : Pharmacy Scholarships (KRS 164.7890) Total coal severance tax resources to be distributed 204,190,800 (1,000,000) (872,500) 202,318,300 203,064,800 (1,000,000) (872,500) (800,000) 200,392,300 201,581,500 (1,000,000) (872,500) (800,000) 198,909,000

Local Government Economic Assistance Fund (LGEAF) Total Funds

Coal Severance Tax Revenue (2014 15%, 2015 and 2016 17.5% of Revenue) Other Mineral Severance Tax Revenue (50% of Revenue) Total LGEAF to be distributed 30,347,700 20,490,800 50,838,500 35,068,700 20,148,800 55,217,500 34,809,100 18,853,600 53,662,700

Local Government Economic Development Fund (LGEDF)

Coal Severance (2014 35%, 2015 and 2016 32.5% of remaining distribution amount) Less : Debt Service (Past Bond Appropriations 2002-2010) Less : Read to Achieve (Education) Less: School Technology in Coal Counties (Education) Less : Robinson Scholars Program (UK) Less : Mining Engineering Scholarship Program (UK) Less : LGEDF Project Administration (DLG - KIA) Less : Mine Safety (Natural Resources) Less : Save the Children (Education) Total LGEDF for County Distribution Total LGEDF for Single County Calculation (66.7% of LGEDF Distribution) Less : Regional Strategic Development Fund (Eastern Kentucky) Total LGEDF for Single County Distribution 70,811,400 (25,503,800) (3,000,000) (2,500,000) (1,000,000) (300,000) (1,039,700) (7,552,000) (500,000) 29,415,900 19,610,600 65,127,400 (31,282,300) (3,000,000) (2,500,000) (1,000,000) (300,000) (1,039,700) (7,552,000) (500,000) 17,953,400 11,968,900 (2,000,000) 9,968,900 64,645,300 (31,282,300) (3,000,000) (2,500,000) (1,000,000) (300,000) (1,039,700) (7,552,000) (500,000) 17,471,300 11,647,500 (2,000,000) 9,647,500

Local Government Economic Development Multi-County Fund

Multi-County Allocation (33.3% of LGEDF County Distribution) Balance Forward from prior fiscal year Total Multi-County Resources Less : Debt Service - $80m Water & Sewer Bonds 2004-06 (KIA) Less : Energy Research Grants (Energy Development & Independence) Less : Operation Unite (Office of Drug Control Policy) Less : Drug Courts (Office of Drug Control Policy) Less : Rupp Arena Renovation Planning and Design (Capital Project) Less : SOAR Administrative Costs (DLG) Less : 12 Multi-County Regional Industrial Park Authorities Less : Coal County College Completion Scholarship Program Balance *Revenue numbers account for quarter lag 9,805,300 226,200 10,031,500 (2,781,500) (2,000,000) (2,000,000) (1,800,000) (1,250,000) (200,000) 5,984,500 5,984,500 (1,584,500) (2,000,000) 5,823,800 5,823,800 (1,423,800) (2,000,000)

(200,000) (200,000) (2,000,000) -

(200,000) (200,000) (2,000,000) -

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General Government Area Development Fund Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Area Development Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

498,500 498,500 498,500 498,500 498,500 498,500 498,500 498,500 498,500

498,500 498,500 498,500 498,500 498,500 498,500 498,500 498,500 498,500

498,500 498,500 498,500 498,500 498,500 498,500 498,500 498,500 498,500

473,600 473,600 473,600 473,600 473,600 473,600 473,600 473,600 473,600

473,600 473,600 473,600 473,600 473,600 473,600 473,600 473,600 473,600

The Area Development Fund is a revenue sharing program that was created by the 1976 Regular Session of the General Assembly to fund capital projects in accordance with KRS 42.350 (2) in communities within each of the 15 Area Development Districts. The Area Development Districts rank and recommend projects that they consider eligible for funding to the Commissioner of the Department for Local Government.

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General Government Executive Branch Ethics Commission Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Executive Branch Ethics Commission TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

447,300 1,000 448,300 55,000 63,800 118,800 567,100 482,100 65,400 547,500 448,300 99,200 547,500 547,500 547,500

633,600

666,500

455,000

463,200

633,600 19,600 63,800 83,400 717,000 625,900 81,300 707,200 633,600 73,600 707,200 707,200 707,200

666,500 9,800 63,800 73,600 740,100 658,800 81,300 740,100 666,500 73,600 740,100 740,100 740,100

455,000 19,600 66,500 86,100 541,100 478,600 52,700 531,300 455,000 76,300 531,300 531,300 531,300

463,200 9,800 67,200 77,000 540,200 487,500 52,700 540,200 463,200 77,000 540,200 540,200 540,200

In accordance with KRS 11A, the Executive Branch Ethics Commission is responsible for reviewing the personal financial interests of the constitutional officers and management personnel in state government in order to prevent conflicts of interest. Additionally, the Commission issues advisory opinions with regard to ethical conduct, investigates and enforces possible violations of the Code, and provides a registration mechanism for executive agency lobbyists.

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General Government Secretary of State Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Fund Transfers Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT General Administration General Operations TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,681,900 6,800 1,688,700 2,256,400 2,312,600 -1,000,000 3,569,000 92,100 92,100 5,349,800 2,406,300 744,400 13,800 3,164,500 1,688,700 1,383,700 92,100 3,164,500 1,958,700 1,205,800 3,164,500

1,688,700

1,688,700

1,634,500

1,662,800

1,688,700 2,185,300 2,205,600 4,390,900 80,400 80,400 6,160,000 2,710,800 714,000 21,000 3,445,800 1,688,700 1,676,700 80,400 3,445,800 2,207,600 1,238,200 3,445,800

1,688,700 2,714,200 2,243,000 4,957,200 277,000 277,000 6,922,900 2,910,500 858,000 20,000 3,788,500 1,688,700 1,822,800 277,000 3,788,500 2,500,100 1,288,400 3,788,500

1,634,500 2,185,300 2,205,600 -1,300,000 3,090,900 80,400 80,400 4,805,800 2,684,400 726,600 21,000 3,432,000 1,634,500 1,717,100 80,400 3,432,000 2,201,700 1,230,300 3,432,000

1,662,800 1,373,800 2,243,000 -1,300,000 2,316,800 277,000 277,000 4,256,600 2,800,400 869,500 20,000 3,689,900 1,662,800 1,750,100 277,000 3,689,900 2,431,700 1,258,200 3,689,900

The Secretary of State, a constitutional officer as provided in Section 91 of the Kentucky Constitution, directs the Department of State of the Commonwealth. KRS 117.015 designates the Secretary of State as the chief Election Officer of the Commonwealth and the chair of the State Board of Elections. In addition, the Secretary of State appoints notaries public; issues Kentucky Colonel Commissions; is the keeper of the Seal of the Commonwealth of Kentucky; and maintains records of all official acts of the Governor as well as all legislation passed by the General Assembly. The Office of the Secretary of State consists of the following organizational units: the Office of Business; Office of Elections; and the Office of Administration. The Office of Business is responsible for the registration and incorporation of businesses, both domestic and foreign, profit and nonprofit, including the administration of documents of merger, dissolution, and name changes. It also accepts and processes filings for limited liability companies and registered limited liability partnerships. These entities must also file articles of organization with the Secretary of State as well as amendments, mergers and dissolutions. The Office of Administration is responsible for executive policy and management functions for the entire office. It prepares and records official documents for the Governor; administers Kentuckys notary public law; issues commissions, pardons, commutations, and extraditions; processes service of summonses; and implements the election laws of the Commonwealth. The State Land Office is also under the supervision of the Secretary of State. It preserves Kentuckys land grant records and fulfills daily inquiries and requests for copies of those records. It files city annexations and incorporations, state deeds, and new land patents, and it provides the public with certified copies of land surveys, grants, and military warrants. The restoration process consists of indexing, de-acidifying, laminating, and bonding, thus safely preserving Kentuckys original land grants. Policy Restricted Fund appropriations made to the Secretary of State shall not lapse and shall be used for continuation of current activities in the Office of the Secretary of State.
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General Government Board of Elections Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Mandated Allotments Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT General Administration and Support State Share of County Election Expenses State Share of Voter Registration Expenses Election Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

2,514,600 3,800 6,200 2,524,600 652,200 21,800 674,000 15,398,800 176,900 15,575,700 18,774,300 1,373,800 1,230,800 5,441,500 8,046,100 2,524,600 216,000 5,305,500 8,046,100 1,250,100 6,200 1,288,300 5,501,500 8,046,100

5,004,700

5,169,700

4,027,100

4,047,200

5,004,700 458,000 39,800 497,800 10,270,200 176,900 10,447,100 15,949,600 1,466,700 1,291,300 7,674,000 10,432,000 5,004,700 216,000 5,211,300 10,432,000 1,396,500 1,959,400 1,668,800 5,407,300 10,432,000

5,169,700 281,800 39,800 321,600 5,235,800 176,900 5,412,700 10,904,000 1,520,300 1,291,400 7,785,200 10,596,900 5,169,700 216,000 5,211,200 10,596,900 1,450,200 1,964,500 1,775,000 5,407,200 10,596,900

4,027,100 458,000 39,800 497,800 10,270,200 176,900 10,447,100 14,972,000 1,408,100 1,251,500 6,824,800 9,484,400 4,027,100 246,000 5,211,300 9,484,400 1,298,100 1,490,700 1,288,300 5,407,300 9,484,400

4,047,200 251,800 39,800 291,600 5,235,800 176,900 5,412,700 9,751,500 1,428,200 1,251,500 6,824,700 9,504,400 4,047,200 246,000 5,211,200 9,504,400 1,318,200 1,490,700 1,288,300 5,407,200 9,504,400

The State Board of Elections administers the election laws of the state pursuant to KRS Chapters 116, 117, 118, 118A, 119, and 120; supervises the registration and purgation of voters; appoints the political party representatives to the 120 county boards of elections; and certifies official election results. KRS 117.015 designates the Secretary of State as the chair of the Board. Six other members are appointed by the Governor. General Administration and Support The General Administration and Support program objectives are to maintain an up-to-date computerized record of registered voters in the state, certify election results, produce precinct rosters, issue certification of nomination and election, train county clerks in election duties, and conduct a nonpartisan voter education program. The State Board of Elections online Election Night Tally System provides up-to-the-minute, unofficial election results on all candidates who file with the state. State Share of County Election Expenses The State Share of County Election Expenses program reimburses county fiscal courts the state's share of county election expenses pursuant to KRS 117.345(2).

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The state currently has 3,632 precincts with over 3 million registered voters. The number of precincts increases as voter registration totals increase and as reapportionment of county commissioner/magisterial districts and congressional and state redistricting occur. State Share of Voter Registration Expenses The State Board of Elections remits payment to county clerks for newly registered voters pursuant to KRS 116.145. There is a significant increase of newly registered voters in years that county and presidential candidates are on the ballot. The State Board of Elections remits reimbursement to county clerks an amount not to exceed fifty cents ($0.50) per registered voter in the county per year for the cost of employing office personnel necessary for the conduct of elections, including the registration and purgation of voters in the county pursuant to KRS 117.343 and KRS 116.112(7). Election Fund The Help America Vote Act (HAVA) became law in 2002. The Act imposed new election requirements on states and called for the upgrade of voting machines to be in compliance by January 1, 2006. The Commonwealth initially received $32.9 million in federal funds to carry out the requirements of HAVA, which were matched with state funds at a rate of five percent. The funds were used for the purchase of voting equipment, voter education, poll worker training, and enhancement of the statewide voter registration system. On December 8, 2006 the Board adopted the 2006 Amended State Plan, which indicated that the Commonwealth was in compliance with the requirements of HAVA. Policy The Executive Budget includes General Fund in the amount of $1,490,700 in fiscal year 2015 and $1,490,700 in fiscal year 2016 for the State Share of County Election Expenses. Notwithstanding KRS 116.145, the State Board of Elections shall set a rate for the fee for new voter registration paid to the county clerks within the available appropriated resources. The State Board of Elections shall also set a fixed rate for the expenses outlined in KRS 117.343 within the available appropriated resources. Notwithstanding KRS 117.345(2), the State Board of Elections shall set a rate for the expenses outlined in KRS 117.345(2) for precincts with a voting machine within the available resources, not to exceed $300 per precinct per election.

31

General Government Registry of Election Finance Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Registry of Election Finance TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,168,600 4,200 1,172,800 500 500 1,173,300 1,048,400 124,400 1,172,800 1,172,800 1,172,800 1,172,800 1,172,800

1,470,500

1,668,700

1,200,900

1,220,800

1,470,500 500 500 1,471,000 1,235,200 235,300 1,470,500 1,470,500 1,470,500 1,470,500 1,470,500

1,668,700 500 500 1,669,200 1,306,600 362,100 1,668,700 1,668,700 1,668,700 1,668,700 1,668,700

1,200,900 500 500 1,201,400 1,027,900 173,000 1,200,900 1,200,900 1,200,900 1,200,900 1,200,900

1,220,800 500 500 1,221,300 1,047,800 173,000 1,220,800 1,220,800 1,220,800 1,220,800 1,220,800

The role of the Kentucky Registry of Election Finance is to ensure the integrity of the Commonwealths electoral process by making certain there is full public access to campaign financial data and financial disclosure reports, and by administering Kentuckys campaign finance laws. Under KRS Chapter 121, Kentuckys campaign finance laws apply to all candidates for public office, except federal office, as well as political issues committees, permanent committees, state and local party executive committees, inaugural committees, and caucus campaign committees. The Registry also receives, compiles, and maintains financial disclosure reports of elected officials and candidates for specified offices as provided in KRS Chapter 61. Regulatory functions of the Registry include: educating candidates and committees on campaign finance laws; ensuring compliance with campaign finance reporting requirements, including the timely filing of campaign finance reports; providing the means for electronic reporting of campaign finance data; conducting desk reviews and random audits; investigating complaints; and adjudicating charges of administrative violations of campaign finance laws. The Registrys public disclosure role is a key component of the campaign finance laws. Registry employees routinely work with members of the public and the media to fill open records requests and to assist in On-line Searchable Database searches. Pursuant to KRS 121.170(5), the Registry receives copies of reports filed with the Federal Election Commission by federally registered out-of-state permanent committees that contribute to Kentucky candidates. These and the reports of other candidates and committees who are required to file with the Federal Election Commission may be viewed at the Registrys office in Frankfort pursuant to 2 U.S.C. Section 439(c).

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General Government Attorney General Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Administrative Services Criminal Services Advocacy Services Civil Services Uninsured Employers Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

10,292,300 34,400 10,326,700 18,406,600 38,353,200 6,020,800 62,780,600 3,278,100 3,278,100 76,385,400 27,593,900 3,631,300 28,581,200 23,100 59,829,500 10,326,700 46,224,700 3,278,100 59,829,500 3,850,800 9,500,300 36,892,400 2,611,000 6,975,000 59,829,500

11,997,100

12,906,300

10,438,600

10,622,700

11,997,100 16,546,400 3,793,400 7,321,100 27,660,900 3,725,300 3,725,300 43,383,300 21,550,200 3,617,300 6,028,300 53,100 31,248,900 11,997,100 15,526,500 3,725,300 31,248,900 4,302,900 10,404,600 5,745,900 3,724,400 7,071,100 31,248,900

12,906,300 12,134,400 3,883,700 7,384,300 23,402,400 3,870,300 3,870,300 40,179,000 22,755,000 3,619,900 6,028,300 53,100 32,456,300 12,906,300 15,679,700 3,870,300 32,456,300 4,531,600 10,845,200 6,010,000 3,935,200 7,134,300 32,456,300

10,438,600 16,555,900 3,793,400 7,306,100 27,655,400 3,725,500 3,725,500 41,819,500 21,817,800 3,194,100 6,028,300 53,100 31,093,300 10,438,600 16,929,200 3,725,500 31,093,300 3,943,300 10,277,800 6,264,600 3,551,500 7,056,100 31,093,300

10,622,700 10,726,200 3,883,700 7,325,100 21,935,000 3,870,300 3,870,300 36,428,000 22,190,900 3,166,000 6,028,300 53,100 31,438,300 10,622,700 16,945,300 3,870,300 31,438,300 4,018,400 10,408,200 6,323,400 3,613,200 7,075,100 31,438,300

The Attorney General, as the Commonwealth's constitutional chief law enforcement officer, performs a range of legal, investigative, and administrative duties. The Office has ten organizational units to support the mission of the office. The duties of the Office of Administrative Services include: personnel, payroll, fiscal, budget, information systems, state and federal grants, and employee training. The duties of the Office of Prosecutors Advisory Council include: personnel, payroll, fiscal, budget, state and federal grants, and legal education related to the Unified Prosecutorial System, along with the maintenance of child sexual abuse caseload and statistics, and the responsibility for the Victim and Witness Protection program. The Office of Criminal Appeals represents the Commonwealth in all state and federal criminal appeals in which the Commonwealth has an interest. The Office of Medicaid Fraud and Abuse Control investigates and prosecutes cases of Medicaid Provider fraud pursuant to KRS 194A.505 and KRS 205, and further complaints of abuse, neglect, and exploitation of residents in Medicaid facilities. The Department of Criminal Investigations investigates specialized, primarily white-collar criminal activity, identity theft, and computer crimes. The Office of Special Prosecutions pursuant to KRS 15.190-215, prosecutes complex criminal cases when local prosecutors need assistance or disqualification from the case, prosecutes thefts from the Commonwealth by employees or elected officials, and prosecutes election and ethics law violations. The Office of Consumer Protection enforces the provisions of the Consumer Protection Act that prohibit unfair, false, misleading, and deceptive acts or practices in trade or commerce and provides educational services to the elderly. The Office of Rate Intervention is responsible for representing the interests of consumers before federal, state, and local rate-making and regulatory bodies in the areas of utilities and health care insurance. The Office of Victims Advocacy administers the victims advocate program and provides support services to victims of crime.

33

The Office of Civil and Environmental Law represents the states boards and agencies; issues formal opinions; represents state officials, elected prosecutors, and the judiciary in legal proceedings; provides hearing officer services and mediation to state agencies; and intervenes in constitutional challenges to state statutes. The Office serves as the legal representative of the Uninsured Employers Fund in all proceedings to enforce Workers Compensation claims involving the Fund. The Uninsured Employers Fund, pursuant to KRS 342.760, is responsible for payment of Workers Compensation to employees when the employer does not have Workers Compensation insurance.

34

General Government Commonwealth's Attorneys Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Commonwealth's Attorneys TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

39,630,700 134,000 39,764,700 1,156,100 1,339,600 -13,300 2,482,400 55,300 55,300 42,302,400 37,108,200 4,257,200 15,000 41,380,400 39,764,700 1,560,400 55,300 41,380,400 41,380,400 41,380,400

50,969,700

53,320,800

43,157,900

43,937,800

50,969,700 922,000 1,496,900 2,418,900 46,000 46,000 53,434,600 47,462,300 5,171,500 39,800 52,673,600 50,969,700 1,657,900 46,000 52,673,600 52,673,600 52,673,600

53,320,800 761,000 1,545,100 2,306,100 48,800 48,800 55,675,700 49,974,100 5,079,800 30,000 55,083,900 53,320,800 1,714,300 48,800 55,083,900 55,083,900 55,083,900

43,157,900 922,000 1,496,900 2,418,900 46,000 46,000 45,622,800 40,445,600 4,376,400 39,800 44,861,800 43,157,900 1,657,900 46,000 44,861,800 44,861,800 44,861,800

43,937,800 761,000 1,545,100 2,306,100 48,800 48,800 46,292,700 41,269,700 4,401,200 30,000 45,700,900 43,937,800 1,714,300 48,800 45,700,900 45,700,900 45,700,900

The Commonwealths Attorneys program is made up of 57 elected Commonwealths Attorneys and their staffs, one for each judicial circuit. As of January 1, 2008, 51 circuits have full-time Commonwealths Attorneys, with the remaining being part-time. Commonwealths Attorneys are responsible for all felony prosecutions, including those prosecutions in which the penalty of death may be imposed upon the defendant. The prosecution of each felony requires a thorough investigation that involves extensive research and trial preparation by the prosecutor. Witness interviews, grand jury presentations, motions (including post-conviction motions), conferences, plea-bargaining, case studies, continuing legal education and participation on multi-disciplinary teams are a part of each prosecutors responsibility in representing the Commonwealth and citizens of Kentucky as the states attorney. Pursuant to KRS 15.725, the Commonwealths Attorneys attend each circuit court held in the judicial circuit. The Commonwealths Attorneys, except as provided by KRS 15.715, have the duty to prosecute all violations of the criminal and penal laws which are tried in the circuit court. In addition, the Commonwealths Attorneys have the primary responsibility within the judicial circuit to present evidence to the grand jury concerning such violations. In accordance with KRS 15.735, the Commonwealths Attorneys serve as special prosecutors in cases where the regularly elected prosecutors have been disqualified.

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General Government County Attorneys Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT County Attorneys TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

34,308,200 144,800 34,453,000 344,900 354,000 698,900 579,000 579,000 35,730,900 34,538,100 827,900 35,366,000 34,453,000 334,000 579,000 35,366,000 35,366,000 35,366,000

40,296,800

42,338,700

37,820,800

38,594,900

40,296,800 364,900 372,000 736,900 566,900 566,900 41,600,600 39,921,400 1,302,600 41,224,000 40,296,800 360,300 566,900 41,224,000 41,224,000 41,224,000

42,338,700 376,600 380,000 756,600 566,900 566,900 43,662,200 41,992,600 1,287,400 43,280,000 42,338,700 374,400 566,900 43,280,000 43,280,000 43,280,000

37,820,800 364,900 372,000 736,900 566,900 566,900 39,124,600 37,525,100 1,241,600 38,766,700 37,820,800 379,000 566,900 38,766,700 38,766,700 38,766,700

38,594,900 357,900 380,000 737,900 566,900 566,900 39,899,700 38,342,500 1,256,500 39,599,000 38,594,900 437,200 566,900 39,599,000 39,599,000 39,599,000

Pursuant to KRS 15.725(2), each County Attorney attends the district court in the respective county and prosecutes all violations of criminal and penal laws within the jurisdiction of that district court. In accordance with KRS 15.735, County Attorneys also serve as special prosecutors in cases where the elected prosecutors have been disqualified. Criminal cases at the district level include felonies (until the case is transferred to circuit court), misdemeanors, juvenile cases, and traffic cases. County Attorneys prosecute the majority of DUI cases. Most counties have Family Court, Drug Court, and/or Truancy Court requiring representation from the Office of the County Attorney. The County Attorney receives numerous criminal complaints from local law enforcement and the general public and frequently mediates local complaints so many of the services provided may never appear on a court docket. County Attorneys are also required to participate on multi-disciplinary teams involving child sexual abuse cases.

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General Government Treasury Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT General Administration and Support Disbursements and Accounting Abandoned Property Administration TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,766,400 6,800 1,773,200 270,800 908,700 1,179,500 250,000 250,000 3,202,700 2,574,700 610,200 17,800 3,202,700 1,773,200 1,179,500 250,000 3,202,700 1,204,900 818,300 1,179,500 3,202,700

2,179,700

2,231,000

1,778,300

1,818,600

2,179,700 270,800 1,232,300 1,503,100 250,000 250,000 3,932,800 2,853,900 774,400 33,700 3,662,000 2,179,700 1,232,300 250,000 3,662,000 1,475,600 954,100 1,232,300 3,662,000

2,231,000 270,800 1,268,100 1,538,900 250,000 250,000 4,019,900 3,012,100 694,400 42,600 3,749,100 2,231,000 1,268,100 250,000 3,749,100 1,469,000 1,012,000 1,268,100 3,749,100

1,778,300

1,818,600

1,238,400 1,238,400 250,000 250,000 3,266,700 2,613,400 619,600 33,700 3,266,700 1,778,300 1,238,400 250,000 3,266,700 1,140,000 888,300 1,238,400 3,266,700

1,275,900 1,275,900 250,000 250,000 3,344,500 2,668,000 633,900 42,600 3,344,500 1,818,600 1,275,900 250,000 3,344,500 1,162,000 906,600 1,275,900 3,344,500

The Treasury Department is the central administrative agency responsible for the receipt and custody of all revenues collected by state government and for writing all checks and disbursing state funds, as outlined in KRS Chapter 41. The State Treasurer, a constitutional officer as provided in Section 91 of the Kentucky Constitution, heads the Treasury Department. The Treasurer also serves on the Kentucky Lottery Board, the Kentucky Higher Education Assistance Board, as trustee of the Kentucky Teachers Retirement System, and is Vice-Chair of the State Investment Commission. The Treasury Department reviews and records all investment transactions of the Commonwealth. The General Administration and Support Division provides management support for Treasury including: fiscal control, personnel administration, and policy development and implementation. The Division issues over 4,200,000 checks and stubs each year, sends over 7,700,000 ACH payments, reconciles the various Commonwealth bank accounts, reconciles daily with the State Depository, administers and records court-ordered withholdings, and produces wire transfers for state government. The Disbursements and Accounting Division receives all funds of the Commonwealth including fees, grants, taxes, federal funds, fees from officials in counties over 75,000 in population, and fees from various boards and commissions. This program also receives, balances, and deposits all withholdings. A computer analysis is maintained on daily receipts and disbursements, which subsequently is submitted to the Finance and Administration Cabinet for accounting posting. The Unclaimed Property Division is responsible for administering the provisions of KRS Chapter 393 related to escheats. This program receives unclaimed property reports from holders and potential holders of unclaimed property, collects unclaimed property, pursues the location and collection of the property, and attempts to locate the rightful property owner. Policy Restricted Funds are provided in accordance with KRS 393.250 for the administration of the Unclaimed Property program in the amount of $1,238,400 in fiscal year 2015 and $1,275,900 in fiscal year 2016. This action reflects the movement of available offbudget Restricted Funds to on-budget status to support ongoing activities of the program.
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Road Fund money in the amount of $250,000 is included each year of the biennium to support the central check writing system and other central administrative responsibilities of state government. The Executive Budget includes $163,000 in capital construction surplus appropriations in the capital budget in each fiscal year of the biennium for the lease purchase of two laser check printers and two fold sealers.

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General Government Agriculture Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Continuing Approp.-General Fund Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Strategic Planning and Administration Motor Fuel Inspection and Testing Consumer and Environmental Programs State Veterinarian Animal Control Market Promotion and Protection Farmland Preservation Agriculture Marketing and Product Promotion Small Winery Support Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

16,089,400 65,400 249,900 16,404,700 10,327,300 6,167,600 1,755,100 18,250,000 5,495,900 5,495,900 40,150,600 18,300,100 6,506,900 5,823,900 666,900 31,297,800 16,404,700 9,397,200 5,495,900 31,297,800 3,827,600 172,900 14,699,800 3,862,100 160,300 42,000 351,600 7,541,900 639,600 31,297,800

17,660,000

18,723,800

16,982,600

17,290,900

17,660,000 8,852,800 6,059,900 1,680,000 16,592,700 5,495,900 5,495,900 39,748,600 19,613,200 6,005,300 5,677,300 757,300 32,053,100 17,660,000 8,897,200 5,495,900 32,053,100 4,162,500 172,900 14,898,600 4,124,400 100,000 42,000 350,000 7,797,000 405,700 32,053,100

18,723,800 7,695,500 6,034,900 1,630,000 15,360,400 5,495,900 5,495,900 39,580,100 20,677,200 6,006,500 5,677,400 755,800 33,116,900 18,723,800 8,897,200 5,495,900 33,116,900 4,325,900 172,900 15,380,000 4,317,700 100,000 42,000 350,000 8,018,700 409,700 33,116,900

16,982,600 8,852,800 6,059,900 1,680,000 16,592,700 5,495,900 5,495,900 39,071,200 19,514,300 6,054,300 6,177,300 757,300 32,503,200 16,982,600 10,024,700 5,495,900 32,503,200 4,172,500 187,300 15,486,800 3,940,500 100,000 42,000 450,000 7,724,100 400,000 32,503,200

17,290,900 6,568,000 6,034,900 1,630,000 14,232,900 5,495,700 5,495,700 37,019,500 19,904,000 6,054,100 6,177,400 755,800 32,891,300 17,290,900 10,104,700 5,495,700 32,891,300 4,225,100 191,500 15,671,900 4,007,900 100,000 42,000 450,000 7,802,900 400,000 32,891,300

The Department of Agriculture, as defined in KRS Chapter 246, is headed by the Commissioner of Agriculture, a Constitutional Officer. The State Board of Agriculture, appointed by the Governor, acts as an advisory body to the elected Commissioner. The Office of the Commissioner provides leadership and management for the Department, and includes the Division of Public Relations. The Office for Strategic Planning and Administration is responsible for personnel functions, budgeting, financial operation, and information technology systems. The Office for Consumer and Environmental Protection directs programs which have a direct bearing on agricultural revenue. The Office conducts the grain regulation program, certifies all sales made by solid weight or liquid volume, licenses egg wholesalers, and inspects amusement rides operating within the Commonwealth. Duties include the distribution of commodity foods to qualifying institutions and individuals on behalf of the United States Department of Agriculture. This office is responsible for conducting various pest and noxious weed control programs, enforcing federal and state laws and regulations pertaining to the control of pesticide use and application, and liaison between the regulator and those being regulated.

39

The Office of State Veterinarian protects the livestock industry pursuant to KRS Chapter 257. Its primary function is the prevention and eradication of animal disease, and to ensure the health of the states multi-billion dollar animal agriculture industries. It enforces Kentuckys statutes on animal importation and movement, and provides numerous other services to the livestock and poultry industries. The Office for Agricultural Marketing and Product Promotion develops and manages programs which promote Kentuckyproduced agricultural products, including grading and inspecting specific products and commodities and reporting market news. Responsibilities of this office include the research and development of new and expanded outlets for Kentuckys agricultural products, agricultural education, agritourism development, farm safety, administration of the Shows and Fairs Promotion Division, and farmland preservation. The Office is also responsible for providing testing services for hay and other forages essential for Kentuckys livestock industries. The Small Farm Winery Support Fund was created in 2006 and the Department administers $400,000 each year of the biennium to develop marketing and promotion strategies to assist this emerging industry. Policy The Executive Budget includes General Fund of $500,000 in each fiscal year to support Farms to Food Banks program. The Executive Budget includes General Fund of $100,000 in each fiscal year for the Purchase of Agricultural Conservation Easements (PACE) program.

40

General Government Auditor of Public Accounts Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Auditor of Public Accounts Financial Audit Technology and Specialized Audits TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

4,479,000 13,400 4,492,400 7,556,200 7,556,200 12,048,600 10,895,900 1,152,700 12,048,600 4,492,400 7,556,200 12,048,600 1,370,700 8,876,200 1,801,700 12,048,600

6,113,500

7,085,800

4,681,800

4,775,300

6,113,500 7,556,200 7,556,200 13,669,700 12,513,100 1,156,600 13,669,700 6,113,500 7,556,200 13,669,700 1,538,100 10,079,400 2,052,200 13,669,700

7,085,800 7,556,200 7,556,200 14,642,000 13,485,400 1,156,600 14,642,000 7,085,800 7,556,200 14,642,000 1,621,200 10,819,500 2,201,300 14,642,000

4,681,800 8,082,100 8,082,100 12,763,900 11,549,500 1,214,400 12,763,900 4,681,800 8,082,100 12,763,900 1,511,700 9,395,700 1,856,500 12,763,900

4,775,300 8,221,400 8,221,400 12,996,700 11,782,300 1,214,400 12,996,700 4,775,300 8,221,400 12,996,700 1,538,000 9,567,300 1,891,400 12,996,700

The Auditor of Public Accounts is the constitutional officer responsible for auditing all state agencies and county governments, pursuant to KRS Chapter 43. Statutory responsibility requires the Auditors Office to examine the state general accounts, the accounts of all state agencies, all private and semi-private agencies receiving or handling state funds, and all state revenue collections. The Auditor must examine the management and control of all institutions and public works in which the state has financial interest or legal power. The Auditors Office is responsible for assisting state and local officials in establishing and maintaining proper accounting records, internal controls, and administrative controls over public funds. The Office responds to requests from public officials, the general public, the Legislative Research Commission, and the Governors Office concerning financial and program matters, special audits, and investigations. Also, the Auditor of Public Accounts has primary responsibility for auditing (per US Office of Management and Budget requirement) the $3.2 billion of American Recovery and Reinvestment Act funds Kentucky receives, in addition to auditing existing federal programs. The Auditor of Public Accounts has three program areas: Administration, Office of Financial Audit, and the Office of Technology and Special Audits. The Administration area includes the Office of the State Auditor, the Office of Legal and Records Services, and the Office of Planning and Management. All policy, budget, fiscal, legal, and personnel duties are performed within the Administration area. The Office of Financial Audits is responsible for financial audits of state agency transactions, pursuant to KRS 43.050, and of county officials such as fiscal courts, sheriffs, county clerks, property valuation administrators, county attorneys, and circuit clerks per KRS 43.070. The Single Audit Act of 1984 as enacted by the United States Congress is also one of the responsibilities for the Auditor of Public Accounts. The Office of Technology and Special Audits is responsible for internal technology systems, data processing systems, special examinations, security consultation and training, as well as performance audits of public entities to increase the effectiveness and reduce the cost of the delivery of services.

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General Government Personnel Board Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Personnel Board TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

20,800 803,900 1,000 825,700 825,700 649,600 154,300 803,900 803,900 803,900 803,900 803,900

21,800 968,900 1,000 991,700 991,700 814,600 154,300 968,900 968,900 968,900 968,900 968,900

22,800 1,010,100 1,000 1,033,900 1,033,900 855,800 154,300 1,010,100 1,010,100 1,010,100 1,010,100 1,010,100

21,800 850,600 1,000 873,400 873,400 690,000 155,900 845,900 845,900 845,900 845,900 845,900

27,500 850,600 1,000 879,100 879,100 700,100 155,900 856,000 856,000 856,000 856,000 856,000

Created by the 1982 General Assembly, the Personnel Board is composed of seven members. The Governor appoints five, and two are classified employees elected by their colleagues. Pursuant to KRS 18A.0551, elections for the two classified employee members of the Board are held every four years. The Personnel Board serves in a quasi-judicial capacity and assists the Personnel Cabinet in the development of administrative regulations pertaining to the classified service. The Board administers the appeals process of applicants for classified positions and conducts hearings for any non-probationary employee who is dismissed, demoted, suspended, or otherwise penalized for cause. Policy The Personnel Board will coordinate with the Finance and Administration Cabinet to assess each agency of the Executive Branch under KRS 18A based upon the authorized permanent full-time positions of each agency as of July 1.

42

General Government Kentucky Retirement Systems Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Kentucky Retirement Systems TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

44,700 38,811,200 38,855,900 38,855,900 34,090,200 4,465,700 300,000 38,855,900 38,855,900 38,855,900 38,855,900 38,855,900

41,867,100 41,867,100 41,867,100 37,103,400 4,463,700 300,000 41,867,100 41,867,100 41,867,100 41,867,100 41,867,100

43,051,400 43,051,400 43,051,400 38,287,700 4,463,700 300,000 43,051,400 43,051,400 43,051,400 43,051,400 43,051,400

40,930,800 40,930,800 40,930,800 36,167,100 4,463,700 300,000 40,930,800 40,930,800 40,930,800 40,930,800 40,930,800

41,306,800 41,306,800 41,306,800 36,543,100 4,463,700 300,000 41,306,800 41,306,800 41,306,800 41,306,800 41,306,800

Kentucky Retirement Systems administers three retirement systems which are qualified governmental defined benefit plans under Section 401(a) of the Internal Revenue Code: Kentucky Employees Retirement System (state employees, universities, health departments, certain boards) governed by KRS 61.510-61.705; County Employees Retirement System (employees of cities, counties, local government entities, and classified employees of school boards) governed by KRS 78.510-78.852; and State Police Retirement System (uniformed officers of Kentucky State Police) governed by KRS 16.505-16.652. Medical insurance benefits are governed by KRS 61.701-61.702. The systems were established in the 1950s to provide a pension that, when coupled with Social Security, would provide the career employee with sufficient income to maintain his or her pre-retirement standard of living. Kentucky Retirement Systems is administered by a thirteen-member board of trustees consisting of the Secretary of the Personnel Cabinet, six members appointed by the Governor, and six members elected by employees and retirees of the three retirement systems. The Board is responsible for the collection and investment of contributions. Members of the Board are considered fiduciaries and are required to administer the funds in the sole interest of the members and beneficiaries of the systems. The Board is required to invest the funds under the prudent person rule. Investments are diversified among common stocks, government and private bonds, real estate and cash equivalents. An actuarial valuation is conducted each year to determine the funding status of the three systems, and an annual independent audit is performed as well. Employers contribute a percentage of gross payroll recommended by the actuarial valuation. However, the General Assembly may adopt a rate that varies from the actuarial valuation. Employees contribute at a fixed rate set in the statutes. The assets of the system are considered trust funds. All expenses are paid from the trust. Restricted Funds providing for the operations of the Kentucky Retirement Systems in the Executive Budget are transferred from trust funds held by the System for the benefit of members and beneficiaries. The trust funds include investment earnings, employee contributions, and employer contributions from agencies supported by the General Fund, the Road Fund, Federal Funds, and Restricted Funds.

43

General Government Occupational & Professional Boards & Commissions Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Fund Transfers Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Accountancy Certification of Alcohol and Drug Counselors Applied Behavior Analysis Licensing Architects Certification for Professional Art Therapists Auctioneers Barbering Chiropractic Examiners Dentistry Diabetes Educators Licensure & Cert. for Dietitians & Nutritionists Embalmers and Funeral Directors Licensure for Prof. Engineers and Land Surveyors Certification of Fee-Based Pastoral Counselors Registration for Professional Geologists Hairdressers and Cosmetologists Specialists in Hearing Instruments Interpreters for the Deaf and Hard of Hearing Home Inspectors Examiners & Registration of Landscape Architects Licensure of Marriage and Family Therapists Licensure for Massage Therapy Medical Imaging and Radiation Therapy Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

3,800 3,800 20,630,100 21,389,700 -2,300,000 39,719,800 39,719,800 16,439,800 4,569,800 648,800 27,000 21,685,400 18,034,500 22,447,400 40,481,900 40,485,700 18,842,200 4,840,300 706,700 26,500 24,415,700 3,800 24,411,900 24,415,700 551,100 82,200 16,000 434,800 11,200 391,600 321,000 341,700 865,300 1,000 73,900 409,700 1,320,200 3,600 106,900 1,375,800 81,100 27,100 83,800 65,400 116,400 168,600 404,500

6,700 6,700 16,070,000 22,666,400 38,736,400 38,743,100 19,738,700 4,887,700 710,200 26,500 25,363,100 6,700 25,356,400 25,363,100 571,100 82,200 16,000 457,800 11,200 405,400 343,800 356,900 881,300 1,000 73,900 442,900 1,376,300 3,600 106,900 1,426,100 81,100 27,100 83,800 68,300 116,400 168,600 416,700 18,034,400 22,569,600 -2,000,000 38,604,000 38,604,000 17,646,200 4,982,800 706,700 26,500 23,362,200 15,241,800 22,776,900 -1,500,000 36,518,700 36,518,700 17,947,000 5,030,000 710,200 26,500 23,713,700

21,685,400 21,685,400 526,400 82,200 16,000 411,600 11,200 372,300 307,300 286,600 760,900 1,000 73,900 368,800 1,234,800 3,600 106,900 1,305,600 81,100 45,900 83,800 61,600 116,400 160,600

23,362,200 23,362,200 552,100 82,200 16,000 435,900 11,200 389,000 322,000 317,800 894,300 1,000 73,900 402,900 1,311,800 3,600 106,900 1,374,700 81,100 38,200 83,800 65,100 116,400 168,600 393,100

23,713,700 23,713,700 558,500 82,200 16,000 442,700 11,200 393,400 327,100 323,300 903,000 1,000 73,900 409,200 1,328,600 3,600 106,900 1,397,400 81,100 38,200 83,800 66,600 116,400 168,600 393,600

44

Medical Licensure Nursing Licensure for Nursing Home Administrators Licensure for Occupational Therapy Ophthalmic Dispensers Optometric Examiners Pharmacy Physical Therapy Podiatry Private Investigators Licensed Professional Counselors Prosthetics, Orthodics and Pedorthics Examiners of Psychology Real Estate Appraisers Real Estate Commission Respiratory Care Social Work Speech-Language Pathology and Audiology Veterinary Examiners TOTAL EXPENDITURES

2,817,600 5,874,500 61,100 135,200 55,200 192,100 1,538,700 413,100 39,300 101,500 184,900 21,000 236,400 665,500 2,041,800 193,100 248,200 170,100 277,600 21,685,400

2,949,500 6,949,300 61,100 146,600 55,200 201,500 1,653,700 468,500 39,200 101,500 184,900 46,200 236,400 757,800 2,350,800 203,600 309,300 170,100 277,600 24,415,700

3,041,300 7,218,600 61,100 146,600 55,200 208,700 1,732,500 508,900 38,900 101,500 184,900 46,200 236,400 782,400 2,501,300 212,500 320,000 170,100 277,600 25,363,100

2,940,400 6,201,300 61,100 146,600 55,200 207,000 1,638,800 469,000 38,900 101,500 184,900 46,200 236,400 757,000 2,105,800 206,700 276,100 170,100 277,600 23,362,200

2,972,500 6,270,400 61,100 146,600 55,200 209,400 1,661,400 499,400 38,200 101,500 184,900 46,200 236,400 766,300 2,200,900 210,000 279,300 170,100 277,600 23,713,700

The 42 occupational and professional licensing and regulatory Boards and Commissions were created to safeguard the life, health, safety, and welfare of the people of the Commonwealth who avail themselves of the services licensed or regulated by the Boards. Appointed by the Governor, board members represent both industry and consumer interests. The general objectives of the Boards and Commissions are: to examine and license all qualified applicants; to enforce the ethical, legal, and professional standards and regulations of the Boards; to ensure compliance with licensure requirements; and to administer the programs of the Boards in an efficient manner. The Occupational Boards and Commissions operate solely from agency receipts. Twenty one of the 42 Boards and Commissions employ the services of the Division of Occupations and Professions (O & P) in the Public Protection Cabinet to carry out their administrative functions. O & P Provides general operating functions such as the collection of fees, accounting services, budget management, meeting space, management of contractual services, copy and printing services, maintenance of the Board website, and reimbursement of Board per diem, travel, and actual and necessary expenses. O & P also performs administrative support services including processing Board applications and renewals, preparing Board meeting packets and agendas, database entry for licensees, maintaining all Board records and files, preparing general Board correspondence, administering examinations, and communicating with general public and licensees regarding Board functions.

45

General Government Kentucky River Authority Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT General Operations Locks and Dams Construction/Maintenance Locks and Dams Operations TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

246,400 800 247,200 2,082,600 3,740,300 5,822,900 6,070,100 695,600 110,400 240,000 1,906,200 50,000 3,002,200 247,200 2,755,000 3,002,200 838,800 1,906,200 257,200 3,002,200

339,800

355,800

251,200

255,500

339,800 3,059,900 4,139,300 7,199,200 7,539,000 843,000 113,400 250,000 2,301,300 2,500,000 6,007,700 339,800 5,667,900 6,007,700 1,151,100 4,501,300 355,300 6,007,700

355,800 1,531,300 4,139,300 5,670,600 6,026,400 887,800 113,400 250,000 2,300,700 50,000 3,601,900 355,800 3,246,100 3,601,900 929,900 2,300,700 371,300 3,601,900

251,200 3,067,900 4,149,300 7,217,200 7,468,400 795,000 115,400 250,000 2,301,300 2,250,000 5,711,700 251,200 5,460,500 5,711,700 875,700 4,501,300 334,700 5,711,700

255,500 1,756,700 4,139,300 5,896,000 6,151,500 811,200 115,400 250,000 2,300,700 50,000 3,527,300 255,500 3,271,800 3,527,300 885,100 2,300,700 341,500 3,527,300

The mission of the Kentucky River Authority is to protect the quality and sufficiency of the water supply in the Kentucky River Basin. The people and businesses in 42 counties depend on the river and its tributaries for clean drinking water, for commercial and industrial uses, and for the generation of electricity. The water supply is maintained in a series of pools behind 14 dams that were originally constructed by the Army Corps of Engineers beginning about 1837. Some of those dams also contain working locks that allow commercial and recreational boat traffic to move up and down the river. The Authority collects a water withdrawal fee from each water utility and business user in the watershed that supports programs which benefit the entire watershed. In addition, a second fee is collected from users who withdraw water from the main stem of the river. Those funds support the lock and dam renovation and reconstruction projects the Authority undertakes from time to time. The Authority also receives a small General Fund appropriation to staff the four operating locks during the summer, when there is considerable recreational activity on the river. The Authority is created in KRS 151.705 as a public corporation and independent state agency. The Authority is governed by a board that consists of the Secretary of Finance and Administration, the Secretary of Energy and Environment and ten members appointed by the Governor. Those ten include a mayor and a county judge-executive from jurisdictions within the Kentucky River Basin, an engineer and a water quality expert. The board appoints an executive director and other staff necessary to carry out the responsibilities of the Authority. The Authority has acquired title to the locks and dams upriver from Frankfort from the Army Corps of Engineers. Dams 1 through 4 between the Ohio River and Frankfort are maintained by the Authority under a long-term lease agreement until such time as the Army declares them to be surplus property. The Kentucky River Authority has built new dams at Lock 9 at Valley View and Lock 3 in Owen and Henry Counties. Dams 9 and 3 retain the water supply for Kentucky American Water Companys Lexington and Owen County water treatment plants. A new dam is being built at Lock 8 in Jessamine County to replace the existing structure with an estimated completion date of June 2015. Dam 8 retains the water supply for Nicholasville and Lancaster. Locks 3 and 4 are currently operational and a rehabilitation project will begin on Locks 1 and 2 in the Spring of 2014. Eighty-two uninterrupted miles of the Kentucky River will be navigable from Carrollton to Tyrone once Locks 1 and 2 are complete by the Fall of 2014.

46

General Government School Facilities Construction Commission Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT School Facilities Construction Commission TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

106,596,700 1,000 106,597,700 106,597,700 330,400 38,600 97,028,700 97,397,700 97,397,700 97,397,700 97,397,700 97,397,700

108,287,700

138,389,700

99,634,000

108,778,500

108,287,700 108,287,700 356,400 38,600 107,892,700 108,287,700 108,287,700 108,287,700 108,287,700 108,287,700

138,389,700 138,389,700 375,700 38,600 137,975,400 138,389,700 138,389,700 138,389,700 138,389,700 138,389,700

99,634,000 99,634,000 288,800 40,000 99,305,200 99,634,000 99,634,000 99,634,000 99,634,000 99,634,000

108,778,500 108,778,500 294,300 40,000 108,444,200 108,778,500 108,778,500 108,778,500 108,778,500 108,778,500

The School Facilities Construction Commission (SFCC), created by the 1985 Extraordinary Session of the General Assembly (KRS 157.611 et seq.), exists to assist local school districts with their school building needs. The Commission is responsible for the distribution of state funds via offers of assistance for approved building or renovation projects. The Commission is empowered to act on behalf of local school districts to issue bonds in the name of the Commission and to enter into lease arrangements with local boards of education to finance construction of new facilities or major renovation of existing school facilities. Offers of assistance are made to eligible local school districts which have demonstrated a reasonable local effort to provide adequate school facilities but still have unmet building needs. Required local effort consists of a levy equivalent to at least five cents per hundred dollars of assessed valuation as well as available funds within a districts capital outlay and building funds and related bonding capacity. Unmet building needs are the costs of projects on a districts facilities plan as approved by the Kentucky Department of Education that remain after the application of local effort. A given district qualifies for offers of assistance based on its unmet need relative to unmet need statewide. The School Facilities Construction Commission is also charged with distributing state funds allocated to the Kentucky Education Technology Systems trust fund to assist local school districts in addressing their unmet education technology needs. Policy The Executive Budget includes additional debt service necessary to fulfill commitments made by previous sessions of the General Assembly in authorizing additional bonded indebtedness and related offers of assistance to local school districts. The Budget of the Commonwealth includes $525,000 in fiscal year 2015 and $8,437,500 in fiscal year 2016 for debt service for $100,000,000 in bonds to finance the offers of assistance authorized by the 2012 Regular Session of the General Assembly. The enacted budget authorizes the School Facilities Construction Commission to make an additional $100,000,000 in new offers of assistance during the 2014-2016 biennium in anticipation of debt service availability during the 2016-2018 biennium.

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General Government Teachers' Retirement System Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Teachers' Retirement System TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

299,692,100 299,692,100 5,528,400 6,501,900 12,030,300 311,722,400 9,774,700 2,096,700 174,902,900 120,695,000 158,900 307,628,200 295,597,900 12,030,300 307,628,200 307,628,200 307,628,200

717,370,400 717,370,400

708,531,500 708,531,500

326,772,500 326,772,500

299,318,400 299,318,400

12,829,400 12,829,400 730,199,800 10,623,400 2,039,900 596,466,400 120,904,000 166,100 730,199,800 717,370,400 12,829,400 730,199,800 730,199,800 730,199,800

13,873,600 13,873,600 722,405,100 11,034,600 2,665,300 591,881,800 116,649,700 173,700 722,405,100 708,531,500 13,873,600 722,405,100 722,405,100 722,405,100

12,183,500 12,183,500 338,956,000 9,923,000 2,101,600 206,079,200 120,693,300 158,900 338,956,000 326,772,500 12,183,500 338,956,000 338,956,000 338,956,000

12,196,600 12,196,600 311,515,000 9,936,100 2,101,600 182,881,800 116,436,600 158,900 311,515,000 299,318,400 12,196,600 311,515,000 311,515,000 311,515,000

The Teachers' Retirement System, as defined in KRS 161.220-161.716, was established in 1940 to provide a broad program of retirement benefits, death and survivor benefits, medical insurance benefits, and disability benefits to its membership. Administration of the System is the responsibility of the nine-member Board of Trustees. Two of the members, the Commissioner of Education and the State Treasurer, are ex-officio, serving by reason of their constitutional offices. The members of the Retirement System elect the remaining seven trustees for four-year terms. Four of these must be active members of the Retirement System, one must be a retired member, and two must be persons from outside the teaching profession. The Board of Trustees appoints an Executive Secretary who is responsible for the administration of the affairs of the Retirement System under policies established by the Board. The most important objectives of the Board of Trustees are to maintain a retirement system that is actuarially sound and to maintain member benefits at a level that is comparable with the benefits provided other state employees through the Kentucky Employees' Retirement System and the Social Security System. Membership is comprised of all persons occupying positions in the public elementary or secondary schools for which certification is required. In addition, staff members of Western Kentucky University, Eastern Kentucky University, Morehead State University, Murray State University, Kentucky State University, professional staff of the Department of Education, Cabinet for Workforce Development, faculty members of the School for the Deaf, the School for the Blind, as well as faculty of the state and area vocational schools are members. Membership is mandatory for all persons teaching in the public schools or other institutions covered by the statutes governing teachers' retirement. Benefits are financed through member contributions, corresponding contributions by the state, and income accruing from the invested reserves of the system. The General Assembly has set the member and employer contribution rate at 9.855 percent of gross salary for persons other than university faculty members joining the system prior to July 1, 2008. Persons joining on or after that date contribute 10.855 percent of gross salary with the employer contributing the same amount. University faculty members who joined the system prior to July 1, 2008 contribute 8.375 percent of gross salary and their employer matches this amount. University faculty members joining on or after that date contribute 9.375 percent of gross salary with the employer matching that amount. In addition, each employer contributes an overmatch of 3.25 percent of gross salary to help reduce the system's unfunded liability. The reserves of the agency are invested in a manner that will provide a reasonable rate of return with major emphasis on the protection of the reserves. HB 540 enacted by the 2010 Regular Session of the General Assembly requires additional contributions to ensure the solvency and stability of the retirement systems medical insurance fund. In addition to the above-referenced contribution rates, members hired prior to July 1, 2008 will contribute an additional 0.25% in fiscal 2011, an additional 0.5% in fiscal 2012, an additional 1.0% in fiscal 2013, an additional 1.5% in fiscal 2014, an additional 2.25% in fiscal 2015 and an additional 3.0% in fiscal 2016. Members hired July 1, 2008 or later will contribute an additional 0.5% in fiscal 2014, an additional 1.25% in fiscal 2015, and an additional 2.0% in fiscal

48

2016. This will bring total member medical insurance contributions to 3.75% in fiscal 2016 for all members. As with other employee contributions, employers will match these amounts. The employer match for Department of Education, the Cabinet for Workforce Development, and university employees is budgeted within the Department, the Cabinet, and the affected universities and is then transferred to the Teachers' Retirement System. Funding for the employer match on behalf of local school district members is provided as an adjunct to the Support Education Excellence in Kentucky program (SEEK) within the Department of Education. Policy The Executive Budget includes General Fund support in the amount of $120,693,300 in fiscal year 2015 and $116,436,600 in fiscal year 2016 for debt service on bonds previously issued. The Executive Budget includes sufficient General Fund support to meet the amortized cost of previously enacted cost-of-living adjustments (COLAs) and other benefit improvements for system members. The Executive Budget includes $4,527,300 in fiscal year 2015 and $9,448,000 in fiscal year 2016 in General Fund support for initial payments on the amortized cost of increased retirement allowances for those recipients retiring during the 2014-2016 biennium who are eligible to add accrued sick leave to their final year of service. Also included in the Executive Budget is $50,200,000 in General Fund support in fiscal year 2015 and $61,300,000 in fiscal year 2016 for the States portion of the shared responsibility plan outlined in KRS 161.550 as enacted by the 2010 regular session.

49

General Government Appropriations Not Otherwise Classified Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Mandated Allotments Total General Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Attorney General Expense Board of Claims Award Guardian Ad Litem Prior Year Claims Unredeemed Checks Refunded Involuntary Commitments-ICF/MR Frankfort In Lieu of Taxes Frankfort Cemetery Survivor Benefits Med Malpractice Liability Ins Reimb Blanket Employee Bonds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

5,290,900 10,210,600 15,501,500 15,501,500 11,510,000 3,988,400 3,100 15,501,500 15,501,500 15,501,500 350,000 407,400 11,100,000 382,400 2,470,000 60,000 195,000 3,100 308,600 165,000 60,000 15,501,500

15,501,500 15,501,500 15,501,500 11,510,000 3,988,400 3,100 15,501,500 15,501,500 15,501,500 350,000 407,400 11,100,000 382,400 2,470,000 60,000 195,000 3,100 308,600 165,000 60,000 15,501,500

15,501,500 15,501,500 15,501,500 11,510,000 3,988,400 3,100 15,501,500 15,501,500 15,501,500 350,000 407,400 11,100,000 382,400 2,470,000 60,000 195,000 3,100 308,600 165,000 60,000 15,501,500

5,026,400 5,026,400 5,026,400 2,534,900 2,488,400 3,100 5,026,400 5,026,400 5,026,400 350,000 407,400 2,124,900 382,400 970,000 60,000 195,000 3,100 308,600 165,000 60,000 5,026,400

5,026,400 5,026,400 5,026,400 2,534,900 2,488,400 3,100 5,026,400 5,026,400 5,026,400 350,000 407,400 2,124,900 382,400 970,000 60,000 195,000 3,100 308,600 165,000 60,000 5,026,400

Appropriations Not Otherwise Classified (ANOC) are appropriations not related to particular programs. Each item within this category has been given program status so that expenditures can be budgeted and accounted for separately. It includes such items as Attorney General expenses for defending employees of the Commonwealth and prior year claims for legal obligations of the Commonwealth. Any expenditure for costs of items included within this classification over the amounts appropriated is to be paid from the General Fund Surplus account or the Budget Reserve Trust Fund.

50

Economic Development

Economic Development Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Continuing Approp.-General Fund Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Executive Policy and Management Business Development Bluegrass State Skills Financial Services TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

19,131,100 20,400 87,400 19,238,900 2,664,700 1,342,500 4,007,200 443,500 4,901,500 5,345,000 28,591,100 8,843,300 1,651,300 16,379,300 26,873,900 19,238,900 2,290,000 5,345,000 26,873,900 3,265,100 14,042,000 2,787,600 6,779,200 26,873,900

22,935,200

24,778,000

19,572,600

35,999,900

22,935,200 1,717,200 1,342,500 728,400 3,788,100

24,778,000 1,054,700 1,342,500 831,800 3,229,000

19,572,600 1,717,200 1,342,500 366,800 3,426,500

35,999,900 1,054,700 1,342,500 394,900 2,792,100

5,100,000 5,100,000 26,723,300 11,378,900 1,623,800 11,191,900 1,474,000 25,668,600 22,935,200 2,733,400 25,668,600 5,054,800 15,745,800 2,712,900 2,155,100 25,668,600 33,107,000 11,855,100 1,623,800 16,291,900 2,944,000 32,714,800 24,778,000 2,836,800 5,100,000 32,714,800 6,636,300 15,999,200 2,720,800 7,358,500 32,714,800 22,999,100 9,377,200 1,375,300 11,191,900 21,944,400 19,572,600 2,371,800 21,944,400 3,406,600 14,034,100 2,710,200 1,793,500 21,944,400

5,100,000 5,100,000 43,892,000 9,509,700 1,373,700 31,291,900 1,324,500 43,499,800 35,999,900 2,399,900 5,100,000 43,499,800 4,764,300 14,101,300 17,712,600 6,921,600 43,499,800

The Cabinet for Economic Development is governed by the Kentucky Economic Development Partnership. The Partnership board has 11 voting members and two non-voting members. The 11 voting members are the Governor, who is chairman, the Secretary of the Finance and Administration Cabinet, the Secretary of the Energy and Environment Cabinet, and eight citizen members appointed by the Governor who represent all sectors of the economic development community. The Secretary of the Cabinet for Economic Development (nominated by the Economic Development Partnership and appointed by the Governor) and the Secretary of the Tourism, Arts and Heritage Cabinet serve as non-voting members. The budgetary resources for the Cabinet are organized in six programs within a single appropriation unit. Business Development is the Commonwealths marketing and sales force to both prospective investors and existing businesses. Its resources include Kentucky-based business development agents and representatives in Tokyo, Japan and Hamburg, Germany; a database of available sites; comprehensive market research; targeted programs for small businesses; and support of the statewide network of Innovation and Commercialization Centers . The Bluegrass State Skills Corporation makes matching grants for industry-specific training of employees. Financial Services administers loans, grants and tax incentives available to businesses that invest and create or maintain jobs in Kentucky, and staffs the Kentucky Economic Development Finance Authority. The Office of the Secretary provides strategic direction for Cabinet activities and administrative services such as legal, fiscal, budget, personnel and asset management. Policy The Executive Budget includes General Fund of $1,324,500 in fiscal year 2016 for debt service on $30,000,000 in new bonds for the High-Tech Construction/Investment Pool, the Kentucky Economic Development Authority (KEDFA) Loan Pool and the

51

Economic Development Bond Pool. The Secretary has the discretion to apply funds available in each pool for authorized uses within the Cabinet. The Executive Budget includes General Fund of $2,551,300 in each fiscal year for training grants for Bluegrass State Skills Corporation. Notwithstanding KRS 45.229, the General Fund appropriation balance for Bluegrass State Skills Corporation training grants for fiscal year 2014 and fiscal year 2015 shall not lapse and shall carry forward. The amount available to the Corporation for disbursement in each fiscal year shall be limited to the unexpended training grant allotment balance at the end of fiscal year 2014 combined with the additional training grant allotment amounts for each fiscal year of the 2014-2016 biennium, less any disbursements. If the required disbursements exceed the Bluegrass State Skills Corporation training grants allotment balance, notwithstanding KRS 154-12.278, Restricted Funds may be expended for training grants, and funds in an amount not to exceed $2,000,000 shall be appropriated from the General Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund Account (KRS 48.705). The Executive Budget includes $15,000,000 of General Fund in fiscal year 2016 for Bluegrass State Skills Corporation training grants to support a significant manufacturing-related investment in the Commonwealth.

52

Department of Education

Department of Education Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Continuing Approp.-General Fund Mandated Allotments Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Support Education Excellence in Kentucky (SEEK) Operations and Support Services Learning and Results Services TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

3,864,091,000 301,600 581,700 68,700 3,865,043,000 11,052,100 25,267,600

4,252,268,200

4,528,329,500

4,036,932,300

4,102,355,900

4,252,268,200

4,528,329,500

4,036,932,300 4,636,000 32,777,300 -250,000

4,102,355,900 4,386,000 33,909,800

31,562,300 1,215,000 32,777,300

32,694,800 1,215,000 33,909,800

36,319,700 1,707,800 883,829,700 -172,700 885,364,800 4,786,727,500 105,479,900 29,903,800 4,638,090,300 38,800 4,773,512,800 3,856,464,300 31,683,700 885,364,800 4,773,512,800 2,879,840,800 383,320,000 1,510,352,000 4,773,512,800

37,163,300

38,295,800

887,285,200 887,285,200 5,172,330,700 116,654,200 32,726,000 5,021,926,400 1,019,300 5,172,325,900 4,252,268,200 32,777,300 887,285,200 5,172,330,700 3,156,311,300 410,548,400 1,605,471,000 5,172,330,700

887,815,600 887,815,600 5,450,054,900 121,652,500 32,763,500 5,294,509,400 1,019,300 5,449,944,700 4,528,329,500 33,909,800 887,815,600 5,450,054,900 3,399,863,600 411,546,800 1,638,644,500 5,450,054,900

887,847,800 887,847,800 4,961,943,400 108,357,251 30,229,764 4,818,868,585 63,000 38,800 4,957,557,400 4,036,932,300 32,777,300 887,847,800 4,957,557,400 2,970,814,400 384,447,500 1,602,295,500 4,957,557,400

888,387,200 888,387,200 5,029,038,900 110,925,199 30,321,351 4,879,862,050 3,505,500 38,800 5,024,652,900 4,102,355,900 33,909,800 888,387,200 5,024,652,900 3,017,829,400 388,460,100 1,618,363,400 5,024,652,900

In enacting the Kentucky Education Reform Act (KERA), the 1990 General Assembly provided for a reconstituted Department of Education to implement KERA along with existing programs. In accordance with KRS 156.148, the Department of Education is headed by a Commissioner of Education appointed by the Kentucky Board of Education.

53

Department of Education Support Education Excellence in Kentucky (SEEK) Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Other Total General Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Base Funding Pupil Transportation Equalized Facilities Tier I Equalization National Board Certification Salary Supplement State-Run Vocational Schools Reimbursement Vocational Education Transportation Local District Teachers' Retirement Match TOTAL EXPENDITURES Policy The Executive Budget includes funding to increase the base SEEK per pupil guarantee amount from $3,827 to $3,911 in fiscal year 2015 and to $3,981 in fiscal year 2016. This represents a 2.2% increase in fiscal year 2015 and an additional 1.8% increase in fiscal year 2016. The additional General Fund amounts are $70,973,600 in fiscal year 2015 and $117,988,600 in fiscal year 2016. The Executive Budget proposes that all certified and classified staff employed by local boards of education shall receive a costof-living adjustment of at least 2 percent in fiscal year 2015 and at least 1 percent in fiscal year 2016. This budget provides funding to accommodate a projected average daily attendance of 602,019 and projected total local school district assessed property valuation of $300.4 billion in fiscal year 2015. In fiscal year 2016, the budget provides funding to accommodate projected average daily attendance of 602,935 and projected total local school district assessed property valuation of $306.1 billion. The projected numbers represent a consensus reached by the Department of Education and the Office of State Budget Director. The Executive Budget maintains funding for the pupil transportation program at the fiscal year 2014 level of $214,752,800 in each fiscal year. The budget includes $170,476,000 in fiscal year 2015 and $172,960,800 in fiscal year 2016 to provide Tier I funding to local school districts to equalize local revenues raised under this SEEK component at a level of $ $749,000 in fiscal year 2015 and $761,000 in fiscal year 2016 of assessed property valuation per student (150 percent of the projected statewide average per pupil). Also included in the Executive Budget is "hold harmless" funding, $442,200 in fiscal year 2015 and $471,900 in fiscal year 2016 to provide every school district with at least the same level of state SEEK funding per pupil during the 2014-2016 biennium as was provided in fiscal year 1992. The Executive Budget provides funding for the Facilities Support Program of Kentucky (FSPK) in the amounts of $115,758,900 in fiscal year 2015 and $117,771,800 in fiscal year 2016 to provide equalization funding for local district revenues from the equivalent nickel levy. The enacted budget includes $22,866,900 in fiscal year 2015 and $22,881,900 in fiscal year 2016 to reimburse state-operated vocational facilities for the costs of providing course offerings to students from local school districts. Funding for vocational education transportation is maintained at the fiscal year 2014 level of $2,416,900 in fiscal year 2015 and fiscal year 2016.
54

Requested FY2015

Requested FY2016

Recommended FY 2015

Recommended FY 2016

2,899,840,800 -11,421,300 2,888,419,500 2,888,419,500 2,879,840,800 2,879,840,800 2,879,840,800 2,879,840,800 2,017,968,000 214,752,800 109,107,500 163,166,200 2,750,000 22,641,900 2,416,900 347,037,500 2,879,840,800

3,156,311,300 3,156,311,300 3,156,311,300 3,156,311,300 3,156,311,300 3,156,311,300 3,156,311,300 2,259,101,400 214,752,800 116,038,800 170,979,800 2,750,000 22,641,900 2,416,900 367,629,700 3,156,311,300

3,399,863,600 3,399,863,600 3,399,863,600 3,399,863,600 3,399,863,600 3,399,863,600 3,399,863,600 2,477,556,800 214,752,800 117,263,000 173,230,700 2,750,000 22,641,900 2,416,900 389,251,500 3,399,863,600

2,970,814,400 2,970,814,400 2,970,814,400 2,970,814,400 2,970,814,400 2,970,814,400 2,970,814,400 2,069,514,800 214,752,800 115,758,900 170,476,000 2,750,000 22,866,900 2,416,900 372,278,100 2,970,814,400

3,017,829,400 3,017,829,400 3,017,829,400 3,017,829,400 3,017,829,400 3,017,829,400 3,017,829,400 2,103,805,900 214,752,800 117,771,800 172,960,800 2,750,000 22,881,900 2,416,900 380,489,300 3,017,829,400

The Executive Budget includes funds $369,037,500 in fiscal year 2015 and $385,092,500 in fiscal year 2016 for the Teachers' Retirement employer match on behalf of local school districts. The enacted budget provides $2,750,000 in each fiscal year for annual salary supplements of $2,000 to teachers achieving and maintaining certification by the National Board for Professional Teaching Standards.

55

Department of Education Operations and Support Services Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Mandated Allotments Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Commissioner's Office/Board of Education Administration and Support Guiding Support Services Knowledge, Information and Data Services TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

47,075,400 40,400 68,700 47,184,500 7,287,600 2,454,600

73,863,900

74,614,800

47,763,000

51,528,100

73,863,900

74,614,800

47,763,000 871,500 8,199,700 -250,000

51,528,100 621,500 8,275,500

7,855,300 344,400 8,199,700

7,982,400 293,100 8,275,500

9,742,200 1,707,800 325,729,700 -172,700 327,264,800 384,191,500 16,923,400 14,840,200 351,556,400 383,320,000 47,184,500 8,870,700 327,264,800 383,320,000 820,800 347,636,000 1,468,700 33,394,500 383,320,000

8,821,200

8,897,000

328,239,700 245,100 328,484,800 410,548,400 21,368,500 16,635,100 372,544,800 410,548,400 73,863,900 8,199,700 328,484,800 410,548,400 1,185,600 351,446,000 3,057,300 54,859,500 410,548,400

328,396,500 260,000 328,656,500 411,546,800 22,353,400 16,648,600 372,544,800 411,546,800 74,614,800 8,275,500 328,656,500 411,546,800 1,251,600 352,024,800 3,221,700 55,048,700 411,546,800

328,484,800 328,484,800 385,069,000 16,773,351 14,278,864 353,332,285 63,000 384,447,500 47,763,000 8,199,700 328,484,800 384,447,500 854,600 348,402,400 1,714,300 33,476,200 384,447,500

328,656,500 328,656,500 389,081,600 17,146,199 14,350,951 353,457,450 3,505,500 388,460,100 51,528,100 8,275,500 328,656,500 388,460,100 876,700 348,870,700 1,744,100 36,968,600 388,460,100

The Operations and Support Services program area consists of the Office of Administration and Support; the Office of Knowledge, Information, and Data Services; the Office of Guiding Support Services; Commissioner of Education, and the Kentucky Board of Education.

56

Department of Education Operations and Support Services Commissioner's Office/Board of Education Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

817,700 3,100 820,800 820,800 803,100 17,700 820,800 820,800 820,800

1,185,600

1,251,600

854,600

876,700

1,185,600 1,185,600 1,167,900 17,700 1,185,600 1,185,600 1,185,600

1,251,600 1,251,600 1,233,900 17,700 1,251,600 1,251,600 1,251,600

854,600 854,600 836,900 17,700 854,600 854,600 854,600

876,700 876,700 859,000 17,700 876,700 876,700 876,700

The 1990 General Assembly, as part of the Kentucky Education Reform Act (KERA), provided in KRS 156.148 for the appointment of a Commissioner of Education by the Kentucky Board of Education to serve as the chief state school officer. As part of the same legislation, the General Assembly, in KRS 156.029, created an 11 member Kentucky Board of Education. Board members are appointed by the Governor and confirmed by the Senate and the House of Representatives. Seven members are selected from the states seven Supreme Court districts, and four are appointed from the state at large. Board members serve fouryear staggered terms. The Executive Director of the Council on Postsecondary Education serves as an ex officio non-voting board member. Overall policy regarding public elementary and secondary education in Kentucky is set by the Kentucky Board of Education within the legal framework established by the General Assembly. The Commissioner of Education's qualifications and compensation are set by the Kentucky Board of Education. The Commissioner serves at the pleasure of the Board. The Commissioner is responsible for carrying out all duties assigned by the legislature, for executing education policy as directed by the State Board, and directing the work of all persons employed by the Department of Education.

57

Department of Education Operations and Support Services Administration and Support Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Mandated Allotments Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Administration & Resource Management District Support School & Community Nutrition TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

11,513,600 23,100 68,700 11,605,400 7,225,600 2,411,700

15,043,200

15,385,100

11,999,600

12,231,000

15,043,200

15,385,100

11,999,600 871,500 8,094,800 -250,000

12,231,000 621,500 8,170,600

7,750,400 344,400 8,094,800

7,877,500 293,100 8,170,600

9,637,300 1,707,800 325,557,000 327,264,800 348,507,500 12,376,700 2,602,400 332,656,900 347,636,000 11,605,400 8,765,800 327,264,800 347,636,000 11,942,000 4,761,900 330,932,100 347,636,000

8,716,300

8,792,100

328,239,700 68,300 328,308,000 351,446,000 13,838,600 4,262,100 333,345,300 351,446,000 15,043,200 8,094,800 328,308,000 351,446,000 14,385,000 5,143,000 331,918,000 351,446,000

328,396,500 72,600 328,469,100 352,024,800 14,403,900 4,275,600 333,345,300 352,024,800 15,385,100 8,170,600 328,469,100 352,024,800 14,612,200 5,326,200 332,086,400 352,024,800

328,308,000 328,308,000 349,023,900 11,215,215 2,691,400 334,432,785 63,000 348,402,400 11,999,600 8,094,800 328,308,000 348,402,400 11,685,500 4,803,100 331,913,800 348,402,400

328,469,100 328,469,100 349,492,200 11,431,050 2,692,700 334,557,950 189,000 348,870,700 12,231,000 8,170,600 328,469,100 348,870,700 11,921,900 4,871,300 332,077,500 348,870,700

The Office of Administration and Support consists of the following divisions: the Division of Budget and Financial Management, the Division of District Support, the Division of Resource Management, and the Division of School and Community Nutrition. The Division of Budget and Financial Management supervises the departments annual and biennial budget creation, budget analysis and forecasting, expenditure authorizations, personnel approvals, and allotment as well as appropriation adjustments. The Division also supervises expenditure and accounting transactions, purchasing and document preparation, and pre-audit functions. The Division serves as agency liaison with the Auditor of Public Accounts, the Finance and Administration Cabinet, the Office of State Budget Director, and the Legislative Research Commission budget staff. The Division of District Support distributes state SEEK funds to local school districts and provides districts with assistance on salary schedules, data management, facility management, and budgeting. Staff of the Division work with various Department of Education, Council for Postsecondary Education, and Professional Standards Board program areas in analyzing data and determining requirements for data entered in the Departments enterprise data system. The Division also reviews local school district facility plans and compiles information on school district construction needs for the School Facilities Construction Commission.

58

The Division of Resource Management provides personnel and payroll services to Department staff. These services include the administration of the state merit system, Family Medical Leave Act, Workers Compensation, sick leave sharing, tuition assistance, employee training, Fair Labor Standards Act, Americans with Disabilities Act, and all other related employment laws and regulations. The Division of School and Community Nutrition oversees the administration of the following National School Lunch Act and Child Nutrition Act programs in local school districts and other eligible agencies: National School Lunch program, School Breakfast program, Special Milk program, Child Care Food program, Summer Food Service program, and the Nutrition Education and Training program. Policy The Executive Budget provides General Fund in the amount of $63,000 in fiscal year 2015 and $189,000 in fiscal year 2016 for debt service on new bonds included in the capital budget.

59

Department of Education Operations and Support Services Guiding Support Services Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES 1,468,700 1,463,300 5,400 1,468,700 1,363,800 104,900 1,468,700 Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,357,700 6,100 1,363,800 62,000 42,900 104,900 172,700 -172,700

2,775,600

2,929,400

1,432,600

1,451,800

2,775,600

2,929,400

1,432,600

1,451,800

104,900 104,900

104,900 104,900

104,900 104,900 176,800

104,900 104,900 187,400 187,400 1,744,100 1,674,500 69,600 1,744,100 1,451,800 104,900 187,400 1,744,100

176,800 176,800 3,057,300 2,987,700 69,600 3,057,300 2,775,600 104,900 176,800 3,057,300

187,400 187,400 3,221,700 3,152,100 69,600 3,221,700 2,929,400 104,900 187,400 3,221,700 176,800 1,714,300 1,644,700 69,600 1,714,300 1,432,600 104,900 176,800 1,714,300

The Office of Guiding Support Services provides in-house counsel and advice for the Commissioner of Education, offices of the Department of Education, and the Kentucky Board of Education. The office provides legal representation for the Department of Education and Kentucky Board of Education before administrative agencies and courts of law. It provides informal legal advice to local school districts and members of the general public. The office serves as the Kentucky Department of Educations liaison with the General Assembly. Guiding Support Services consists of two divisions: the Division of Communications and the Division of Innovation and Partner Engagement. The Division of Communication is responsible for news media relations for the Commissioner and the Department of Education. The division creates print and electronic materials to supplement the professional development of educators and inform other interested parties in Kentuckys system of public elementary and secondary education. The Division also operates the Departments web site, provides photographic services for the Department, and produces electronic publications. The Division of Innovation and Partner Engagement interacts with educational partners across the country to develop and test innovative ideas for change and improvement in educational policy and deployment.

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Department of Education Operations and Support Services Knowledge, Information and Data Services Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

33,386,400 8,100 33,394,500 33,394,500 2,280,300 12,214,700 18,899,500 33,394,500 33,394,500 33,394,500

54,859,500

55,048,700

33,476,200

36,968,600

54,859,500 54,859,500 3,374,300 12,285,700 39,199,500 54,859,500 54,859,500 54,859,500

55,048,700 55,048,700 3,563,500 12,285,700 39,199,500 55,048,700 55,048,700 55,048,700

33,476,200 33,476,200 3,076,536 11,500,164 18,899,500 33,476,200 33,476,200 33,476,200

36,968,600 36,968,600 3,181,649 11,570,951 18,899,500 3,316,500 36,968,600 36,968,600 36,968,600

The Office of Knowledge, Information, and Data Services provides policy and budget planning, liaison services, administration and quality assurance for the Kentucky Education Technology System (KETS). The Office is responsible for KETS shared services for 650,000 direct customers, 1,200 schools, 174 local school districts and the Kentucky Department of Education. The Office consists of three divisions: Division of Engineering and Management, Division of Operations and Services, and Division of Enterprise Data. The Office also manages the Kentucky Education Technology System (KETS) and the Kentucky Education Network (KEN) programs. The KETS program provides school districts with technical support as well as offers of assistance based on each districts average daily attendance. School districts must spend the offers on appropriate education technology items or services and the districts are required to match this funding dollar for dollar. KEN is the wide-area-network that provides high speed network connectivity and Internet access to the 174 Kentucky school districts, the Kentucky School for the Blind, the Kentucky School for the Deaf, and the Department of Education. The network provides teachers and administrators access to information and tools to be effective teachers, leaders, and decision makers. Policy The Executive Budget provides $ 3,316,500 in fiscal year 2016 for debt service on $50 million in new bonds to support the replacement and upgrade of instructional devices at or near the end of their supportability life cycle.

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Department of Education Learning and Results Services Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Continuing Approp.-General Fund Other Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Next Generation Schools Next Generation Learners Assessment and Accountability State Schools Career & Technical Education Local District Health Insurance TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

917,174,800 261,200 581,700 11,421,300 929,439,000 3,764,500 22,813,000 26,577,500 558,100,000 558,100,000 1,514,116,500 88,556,500 15,063,600 1,406,693,100 38,800 1,510,352,000 929,439,000 22,813,000 558,100,000 1,510,352,000 324,161,700 420,092,300 22,552,200 16,175,200 76,381,300 650,989,300 1,510,352,000

1,022,093,000

1,053,851,100

1,018,354,900

1,032,998,400

1,022,093,000

1,053,851,100

1,018,354,900 3,764,500 24,577,600 28,342,100 559,363,000 559,363,000 1,606,060,000 91,583,900 15,950,900 1,494,721,900 38,800 1,602,295,500 1,018,354,900 24,577,600 559,363,000 1,602,295,500 324,049,100 485,696,200 22,590,300 16,678,500 80,618,500 672,662,900 1,602,295,500

1,032,998,400 3,764,500 25,634,300 29,398,800 559,730,700 559,730,700 1,622,127,900 93,779,000 15,970,400 1,508,575,200 38,800 1,618,363,400 1,032,998,400 25,634,300 559,730,700 1,618,363,400 324,185,000 486,373,100 22,624,000 16,983,200 82,081,900 686,116,200 1,618,363,400

23,707,000 870,600 24,577,600 559,045,500 -245,100 558,800,400 1,605,471,000 95,285,700 16,090,900 1,493,070,300 1,019,300 1,605,466,200 1,022,093,000 24,577,600 558,800,400 1,605,471,000 327,728,800 479,994,400 22,766,500 17,477,900 87,287,300 670,216,100 1,605,471,000

24,712,400 921,900 25,634,300 559,419,100 -260,000 559,159,100 1,638,644,500 99,299,100 16,114,900 1,522,101,000 1,019,300 1,638,534,300 1,053,851,100 25,634,300 559,159,100 1,638,644,500 329,302,700 480,366,600 22,890,100 18,346,200 89,862,100 697,876,800 1,638,644,500

The Learning and Results Services program area consists of the following offices: Office of Assessment and Accountability; Office of Next Generation Learners; Office of Next Generation Schools and Districts, and Office of Career and Technical Education.

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Department of Education Learning and Results Services Next Generation Schools Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Consolidated Plans & Audits Federal Programs & Educator Effectiveness Next Generation Schools TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

5,975,300 13,500 5,988,800 827,700 1,172,900 2,000,600 317,000,000 317,000,000 324,989,400 4,848,600 1,521,400 317,791,700 324,161,700 5,988,800 1,172,900 317,000,000 324,161,700 270,006,300 40,068,600 14,086,800 324,161,700

9,268,100

10,754,000

5,588,400

5,636,300

9,268,100

10,754,000

5,588,400 827,700 1,172,900 2,000,600 317,287,800 317,287,800 324,876,800 4,547,900 1,719,800 317,781,400 324,049,100 5,588,400 1,172,900 317,287,800 324,049,100 270,294,100 40,091,500 13,663,500 324,049,100

5,636,300 827,700 1,172,900 2,000,600 317,375,800 317,375,800 325,012,700 4,683,800 1,719,800 317,781,400 324,185,000 5,636,300 1,172,900 317,375,800 324,185,000 270,382,100 40,109,300 13,693,600 324,185,000

1,172,900 1,172,900 317,356,100 -68,300 317,287,800 327,728,800 4,827,600 1,719,800 321,181,400 327,728,800 9,268,100 1,172,900 317,287,800 327,728,800 270,294,100 40,312,500 17,122,200 327,728,800

1,172,900 1,172,900 317,448,400 -72,600 317,375,800 329,302,700 5,031,500 1,719,800 322,551,400 329,302,700 10,754,000 1,172,900 317,375,800 329,302,700 270,382,100 40,382,700 18,537,900 329,302,700

The Office of Next Generation Schools and Districts consists of two divisions: the Division of Consolidated Plans and Audits and the Division of Student Success. The Division of Consolidated Plans and Audits implements and monitors the following federal and state programs: School-Based Decision-Making councils, ESEA No Child Left Behind Act (P.L. 107-110); Title I, Parts A (Improving the Academic Achievement of the Disadvantaged), C (Education of Migrant Children), D (Programs for Children and Youth who are Neglected and Delinquent), F (Comprehensive School Reform), and the Stewart B. McKinney Homeless Assistance Act for the Education of Homeless Children and Youth. The Division also provides assistance to school districts and parents on closing the achievement gap and assuring instructional equity for students. The Division of Student Success provides guidance and assistance to Kentucky Alternative Education programs and ensures continuous improvement in instruction, practices and curriculum to help all Kentucky students to be college and career ready. The Division also provides assistance on developing and implementing digital learning, school safety, and achievement gap reduction programs.

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Department of Education Learning and Results Services Next Generation Learners Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Continuing Approp.-General Fund Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Gifted & Talented Community Education & Service Next Generation Learner Programs Program Standards Learning Services Extended Learning Services Family Resource and Youth Services Centers Read to Achieve Math Achievement Professional Growth Fund Dropout Prevention Education of State Agency Children Textbooks Local District Life Insurance Next Generation Learners Preschool TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

204,393,300 17,300 581,700 204,992,300 1,057,400

263,627,300

263,777,100

268,766,500

269,212,000

263,627,300

263,777,100

268,766,500 1,057,400 870,600

269,212,000 1,057,400 921,900 1,979,300 216,239,200 216,239,200 487,430,500 8,395,900 2,029,000 475,948,200 486,373,100 269,212,000 921,900 216,239,200 486,373,100 6,622,300 21,466,400 15,773,200 4,717,200 189,004,100 25,510,700 52,148,300 17,899,000 5,353,600 720,300 576,100 9,596,500 21,700,000 1,483,700 23,684,500 90,117,200 486,373,100

870,600 1,057,400 215,100,000 215,100,000 421,149,700 8,978,800 1,941,300 409,172,200 420,092,300 204,992,300 215,100,000 420,092,300 6,622,300 21,466,400 15,773,200 6,863,200 188,442,200 12,301,200 52,148,300 17,899,000 5,353,600 1,302,000 576,100 9,596,500 1,483,700 8,719,900 71,544,700 420,092,300 870,600 215,673,300 -176,800 215,496,500 479,994,400 8,317,200 2,029,000 469,643,400 479,989,600 263,627,300 870,600 215,496,500 479,994,400 6,622,300 21,466,400 15,773,200 4,839,100 188,839,000 12,301,200 52,148,300 17,899,000 5,353,600 720,300 576,100 9,596,500 1,629,600 70,674,400 71,555,400 479,994,400

921,900 921,900 215,855,000 -187,400 215,667,600 480,366,600 8,696,700 2,029,000 469,643,400 480,369,100 263,777,100 921,900 215,667,600 480,366,600 6,622,300 21,466,400 15,773,200 4,909,900 189,013,100 12,301,200 52,148,300 17,899,000 5,353,600 720,300 576,100 9,596,500 1,629,600 70,788,300 71,568,800 480,366,600 1,928,000 216,059,100 216,059,100 486,753,600 8,119,000 2,029,000 475,548,200 485,696,200 268,766,500 870,600 216,059,100 485,696,200 6,622,300 21,466,400 15,773,200 4,690,300 188,836,400 25,510,700 52,148,300 17,899,000 5,353,600 720,300 576,100 9,596,500 21,700,000 1,483,700 23,206,200 90,113,200 485,696,200

The Office of Next Generation Learners consists of the Division of Program Standards and the Division of Learning Services, the Division of Secondary and Virtual Learning, and the Division of Early Childhood Development. This Office oversees several educational programs.

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Career and Technical Education Programs assist middle schools, high schools, and locally-operated career centers in developing and implementing career readiness services. Career and Technical Education service areas include Perkins Accountability, High Schools That Work, Tech Prep and high school reform as well as five statewide student organizations. The Kentucky FFA Leadership Training Center at Hardinsburg is also part of Career and Technical Education program. Community Education & Service Programs work with public schools to promote individual and community development and lifelong learning. Community Education programs also serve as the delivery system for federal Learn and Serve grants. The Dropout Prevention Fund provides competitive grants to local school districts for the reduction of the numbers and rates of Kentucky students who do not complete secondary school. The Kentucky Educational Collaborative for State Agency Children (KECSAC) provides school districts with high-quality educational support services to at risk youth through a collaborative delivery system involving the Kentucky Departments of Education, Juvenile Justice, Community Based Services, Mental Health, Developmental Disabilities and Addiction Services, as well as private and public child and youth care programs. The Extended Learning Services or Extended School Services (ESS) Fund was established by KRS 158.070 to provide struggling learners with additional instructional time and assistance to achieve their learning goals. The program offers instructional time outside regular school hours and takes many forms including after-school and before-school instruction, evening sessions, Saturday learning activities, summer programs, and learning inter-sessions in year-round schools. Family Resource and Youth Services Centers (FRYSCs) were established by the Kentucky Education Reform Act (KERA) of 1990. The goal of FRYSCs is to address the needs of children and their families residing in the area served by the school in which a center is located. Family Resource Centers serve children in elementary schools while Youth Services Centers serve children in middle and high schools. Each center contains a unique blend of program components depending on location, available resource, local need, and community input. The Gifted and Talented Fund provides support to school districts for educational services to students who are gifted and talented. The Division of Learning Services provides schools with assistance in the development and implementation of services for children and youth with disabilities, including services associated with the federal Individuals with Disabilities Education Act. Program areas include Individuals with Disabilities Education, Preschool Special Education, and Special Education Program Improvement. Local District Life Insurance Programs for full-time qualified school district employees are mandated by KRS 18A.226, KRS 161.158, and 702 KAR 1:035. Funds in this program are used to pay on behalf of school districts the employers portion of the premiums to the Personnel Cabinet. The Mathematics Achievement Fund provides two-year renewable grants to local school districts for training teachers in diagnostic assessment and intervention skills. To qualify, a district must employ standards-based and research-based math instructional practices, use intervention and support services to supplement regular classroom instruction, and provide intervention services to primary program and other students at risk of mathematics failure based on ongoing assessments of their needs. Next Generation Learners Programs consists of a variety of grant programs. Included in this area are: the Collaborative Center for Literacy Development; Save the Children; Elementary Arts and Humanities/World Language; Every 1 Reads; Middle School Center; Writing Program; Teacher Academies; Leadership and Mentor Fund; Professional Development; Safe Schools; Georgia Chaffee Teenage Parent Program; Appalachian Tutoring Program, Lexington Hearing & Speech Center; Heuser Hearing and Language Academy; Visually Impaired Preschool Services; and Advance Kentucky. The Office of Next Generation Learners oversees the Divisions of Learning Services and Program Standards. The Teachers Professional Growth Fund provides teachers with opportunities for high quality professional development in content knowledge and teaching methodologies in the core disciplines of mathematics, science, language arts and social studies. The Division of Program Standards assist districts design and implement curriculum based on new academic standards. The Division is working with districts to implement the newly established standards for English Language Arts and Mathematics. The Division is also working with national development teams on standards for Science and Social Studies. Science and Social Studies are expected to be ready for implementation by Kentucky districts in school year 2013-2014. The Read to Achieve Fund provides grants to schools to implement research-based reading diagnostic and intervention programs for struggling readers within the state primary program. The early reading intervention program selected by the funded school must be based on reliable, replicable research and offer short-term intensive one-on-one or small group instruction in essential skills necessary for reading proficiency. The Textbook Fund provides support to local school districts to obtain instructional material for students in kindergarten through eighth grades.

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Policy The Executive Budget includes additional General Fund of $18,000,000 in each fiscal year to provide preschool services for four year-old children whose family income is within 160% of the federal poverty level. The current eligible family income for state preschool is 150% of the federal poverty level. This funding is sufficient to provide preschool services for an additional 5,125 four year-old children. Approximately 23,000 children currently receive preschool services. The Executive Budget provides additional General Fund of $21,700,000 in each fiscal year for Textbook funding. Additionally, the Executive Budget restores Safe School funding to fiscal 2008 funding levels by including additional General Fund of $6,220,900 in each fiscal year to promote safe learning environments. The Executive Budget includes additional General Fund of $13,209,500 in each fiscal year for Extend School Services to provide students with extra instructional assistance. The Executive Budget provides additional General Fund of $6,557,700 in each fiscal year for Professional Development to support the implementation and development of effective instructional practices. Also included in the Executive Budget is additional General Fund of $800,000 in fiscal year 2015 and $1,200,000 in fiscal year 2016 for Advance Kentucky to expand access and participation in rigorous college-level instruction in high school, particularly among student populations traditionally underrepresented in these courses. The Executive Budget includes additional Federal Fund of $562,600 in each fiscal year from the Race to the Top Early Learning Challenge federal grant to support early learning and development programs.

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Department of Education Learning and Results Services Assessment and Accountability Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

14,541,200 11,000 14,552,200 8,000,000 8,000,000 22,552,200 22,318,500 233,700 22,552,200 14,552,200 8,000,000 22,552,200

14,766,500

14,890,100

14,590,300

14,624,000

14,766,500 8,000,000 8,000,000 22,766,500 22,532,800 233,700 22,766,500 14,766,500 8,000,000 22,766,500

14,890,100 8,000,000 8,000,000 22,890,100 22,656,400 233,700 22,890,100 14,890,100 8,000,000 22,890,100

14,590,300 8,000,000 8,000,000 22,590,300 22,356,600 233,700 22,590,300 14,590,300 8,000,000 22,590,300

14,624,000 8,000,000 8,000,000 22,624,000 22,390,300 233,700 22,624,000 14,624,000 8,000,000 22,624,000

The Office of Assessment and Accountability is responsible for developing and implementing Kentuckys system of assessing progress by students, schools, and districts. The Office supplies information on regulations, policies and procedures, a calendar of important assessment dates, manuals, and information for districts and schools on using testing data to improve instruction. The Office of Assessment and Accountability also oversees the implementation of testing and data requirements enacted by Senate Bill 1 of the 2009 Regular Session of the General Assembly. The Office consists of two divisions: the Division of Assessment Implementation and the Division of Assessment Support. The Division of Assessment Design and Implementation operates the states testing program and coordinates the logistics of the assessment program at the district level. This involves managing and generating data necessary to report assessment results on which accountability performance judgments must be based. The Division of Support and Research reviews the consistency of student results across multiple measures and the potential for all scores to yield fair, consistent, and accurate information on student, school, and district performance. The Division also reviews the accuracy of scores assigned to students and schools as well as accuracy of the testing materials.

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Department of Education Learning and Results Services State Schools Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

15,580,600 99,400 15,680,000 627,200 495,200 1,122,400 16,802,400 13,574,100 2,105,900 495,200 16,175,200 15,680,000 495,200 16,175,200

16,982,700

17,851,000

16,183,300

16,488,000

16,982,700

17,851,000

16,183,300 627,200 495,200 1,122,400 17,305,700 14,084,000 2,105,900 488,600 16,678,500 16,183,300 495,200 16,678,500

16,488,000 627,200 495,200 1,122,400 17,610,400 14,388,700 2,105,900 488,600 16,983,200 16,488,000 495,200 16,983,200

495,200 495,200 17,477,900 14,883,400 2,105,900 488,600 17,477,900 16,982,700 495,200 17,477,900

495,200 495,200 18,346,200 15,751,700 2,105,900 488,600 18,346,200 17,851,000 495,200 18,346,200

The Kentucky School for the Blind, located in Louisville, Kentucky, provides instructional and residential programs for blind and visually impaired students throughout Kentucky. Services provided by the Kentucky School for the Blind include: Instructional and Related Services; Residential Services, Operational Support, and Federal Support. Instruction and Related Services includes supervision, teaching, supplies, equipment, and clerical services, all of which are needed for the regular instruction of the students enrolled at the Kentucky School for the Blind. Tools utilized are Braille, large print, electronic aids, and other special aids and methods for teaching basic academic skills, vocational skills, self-care skills, orientation and mobility, music, physical education, athletics, and counseling. Residential Services include those services which are needed to provide housing, daily living skills, and leisure time activities for students who reside at the Kentucky School for the Blind. This subprogram also deals with transportation arrangements when residential students go home on weekends and at the end of the school year. Operational Support includes administration, business management, food service, housekeeping, utilities and other operating expenses, maintenance of buildings and grounds, and health care. The positions of Superintendent and Coordinator of Instruction and Related Services are included in this subprogram. The Outreach program provides consultative, technical, and evaluative support to local school districts relating to education of students who are blind or visually impaired. Federal Support includes funds to support federally mandated services. Funds received under Chapter I of the Education Consolidation and Improvement Act are used to provide services in the areas of speech therapy and basic skill instruction. Federal funds are also used to provide instruction and residential services for children who are deaf-blind. The Kentucky School for the Deaf, located in Danville, Kentucky, provides educational services to deaf children who cannot be served by local school districts. The School's educational program consists of appropriate classroom instruction, life skills, physical education, and vocational training. Students receive instruction in accordance with their Individual Education Plan that emphasizes language and communication skills development. Students at the Kentucky School for the Deaf are housed in campus dormitories supervised by houseparents. The students receive practical living skill instruction in personal safety, hygiene, and independent living skills. The Kentucky School for the Deaf also supports an outreach program which provides consultative, technical, and evaluative support to local school districts on how to provide effective educational services to deaf children attending school in a local district. The KSD is designated the Statewide Educational Resource Center on Deafness.

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Department of Education Learning and Results Services Career & Technical Education Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

37,116,400 120,000 37,236,400 1,252,200 21,144,900 22,397,100 18,000,000 18,000,000 77,633,500 38,836,500 9,261,300 28,244,700 38,800 76,381,300 37,236,400 21,144,900 18,000,000 76,381,300

47,232,300

48,702,100

40,563,500

40,921,900

47,232,300

48,702,100

40,563,500 1,252,200 22,038,900 23,291,100 18,016,100 18,016,100 81,870,700 42,476,400 9,862,500 28,240,800 38,800 80,618,500 40,563,500 22,038,900 18,016,100 80,618,500

40,921,900 1,252,200 23,044,300 24,296,500 18,115,700 18,115,700 83,334,100 43,920,300 9,882,000 28,240,800 38,800 82,081,900 40,921,900 23,044,300 18,115,700 82,081,900

22,038,900 22,038,900 18,016,100 18,016,100 87,287,300 44,724,700 10,002,500 31,540,800 1,019,300 87,287,300 47,232,300 22,038,900 18,016,100 87,287,300

23,044,300 23,044,300 18,115,700 18,115,700 89,862,100 47,162,800 10,026,500 31,540,800 1,019,300 89,749,400 48,702,100 23,044,300 18,115,700 89,862,100

Effective October 16, 2012, the Office of Career and Technical Education moved from the Education and Workforce Development Cabinet into the Kentucky Department of Education. The Office of Career and Technical Education provides occupational-specific education and training for Kentuckys citizens in order to develop a skilled and versatile workforce. The main responsibility is providing education and technical training to youth and incumbent workers that match the needs of Kentucky business and industry. The Office of Career and Technical Education manages 53 area technology centers. These area technology centers prepare students for postsecondary technical training leading to a certificate or an associates degree, academic pursuits at a four-year college or university, or entry into the labor market with an industry-recognized qualification. The Office of Career and Technical Education is also responsible for programs under the Carl D. Perkins Vocational and Applied Technology Education Act of 1998 (Public Law 105-332).

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Department of Education Learning and Results Services Local District Health Insurance Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Other Total General Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

639,568,000 11,421,300 650,989,300 650,989,300 650,989,300 650,989,300 650,989,300 650,989,300

670,216,100 670,216,100 670,216,100 670,216,100 670,216,100 670,216,100 670,216,100

697,876,800 697,876,800 697,876,800 697,876,800 697,876,800 697,876,800 697,876,800

672,662,900 672,662,900 672,662,900 672,662,900 672,662,900 672,662,900 672,662,900

686,116,200 686,116,200 686,116,200 686,116,200 686,116,200 686,116,200 686,116,200

Employees of local school districts have the option of participating in the Kentucky Employees' Health Plan (KEHP). KEHP is a self-insured program providing health insurance benefits to the employees and retirees of the Commonwealth of Kentucky, as well as local school boards, local health departments, and other quasi governmental agencies. Policy The Executive Budget includes $ 672,662,900 in fiscal year 2015 and $ 686,116,200 in fiscal year 2016 for employer contributions for health insurance and the contribution to the health reimbursement account for employees waiving coverage. This is an increase from the General Fund of $21,673,600 in fiscal year 2015 and $35,126,900 in fiscal year 2016.

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Education and Workforce Development

Education and Workforce Development Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT General Administration and Program Support Commission on Proprietary Education Deaf and Hard of Hearing Kentucky Educational Television Environmental Education Council Libraries and Archives Workforce Investment Education Professional Standards Board TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

48,321,700 114,000 48,435,700 10,284,300 38,866,200 5,321,900 54,472,400 3,375,400 1,171,329,000 -291,000 1,174,413,400 1,277,321,500 112,946,600 33,331,200 1,104,791,800 14,568,500 930,900 1,266,569,000 48,435,700 45,977,800 1,172,155,500 1,266,569,000 10,382,000 187,700 1,588,300 14,467,900 349,400 16,911,600 1,214,446,300 8,235,800 1,266,569,000

73,961,000

77,801,800

50,936,400

51,537,300

73,961,000 10,458,200 43,034,300 5,192,300 58,684,800 2,257,900 1,190,201,500 1,192,459,400 1,325,105,200 129,525,800 33,730,300 1,130,448,900 17,027,500 2,361,800 1,313,094,300 73,961,000 48,931,800 1,190,201,500 1,313,094,300 15,321,100 272,300 1,977,100 16,388,300 320,900 22,463,900 1,244,404,800 11,945,900 1,313,094,300

77,801,800 9,753,000 42,147,200 5,394,500 57,294,700 2,257,900 1,193,499,900 1,195,757,800 1,330,854,300 135,218,400 33,137,000 1,132,258,000 16,744,500 966,800 1,318,324,700 77,801,800 47,023,000 1,193,499,900 1,318,324,700 15,713,300 283,100 2,038,300 16,644,600 321,600 23,628,000 1,248,852,800 10,843,000 1,318,324,700

50,936,400 8,494,600 43,053,300 5,192,300 -900,000 55,840,200 2,257,900 1,180,508,200 1,182,766,100 1,289,542,700 121,692,900 32,636,800 1,107,767,200 14,568,500 2,361,800 1,279,027,200 50,936,400 48,779,400 1,179,311,400 1,279,027,200 10,356,700 272,300 1,970,500 14,488,900 239,900 19,527,200 1,222,940,300 9,231,400 1,279,027,200

51,537,300 7,060,800 42,116,500 5,394,500 54,571,800 3,454,700 1,183,502,500 1,186,957,200 1,293,066,300 126,149,100 32,305,300 1,107,933,200 14,568,500 966,800 1,281,922,900 51,537,300 46,963,300 1,183,422,300 1,281,922,900 10,370,400 283,100 1,992,400 14,696,000 242,400 18,458,700 1,227,563,200 8,316,700 1,281,922,900

During the 2006 Regular Session of the General Assembly, Senate Bill 105 combined several departments and offices from the former Education, Arts, and Humanities Cabinet and the former Workforce Development Cabinet to create the Education Cabinet. Senate Bill 78 during the 2009 Regular Session of the General Assembly renamed the cabinet to the Education and Workforce Development Cabinet to emphasize the important connection between education and workforce development. Since that time, other changes have been implemented via enacted legislation including moving the Council on Postsecondary Education from the Education and Workforce Development Cabinet to the Governors Office, for administrative purposes; moving the Governors Scholars Program from the Governors Office to the Education and Workforce Development Cabinet; and dissolving the Board for Proprietary Education and creating the Commission on Proprietary Education, and moving it to the Education and Workforce Development Cabinet for administrative purposes.

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The following agencies comprise the Education and Workforce Development Cabinet: Department of Education Kentucky Center for School Safety Governors Scholars Program Education Professional Standards Board Kentucky Commission on the Deaf and Hard of Hearing Environmental Education Council Department for Workforce Investment Kentucky Commission on Proprietary Education Kentucky Educational Television Department for Libraries and Archives

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Education and Workforce Development General Administration and Program Support Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Secretary Governor's Scholars TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

4,879,300 15,600 4,894,900 271,000 5,142,600 5,413,600 291,000 427,100 -291,000 427,100 10,735,600 6,446,300 1,557,500 2,347,600 30,600 10,382,000 4,894,900 5,060,000 427,100 10,382,000 8,551,600 1,830,400 10,382,000

9,784,100

9,967,400

4,565,600

4,631,600

9,784,100 607,400 5,022,300 5,629,700

9,967,400 538,100 5,224,500 5,762,600

4,565,600 353,600 5,022,300 5,375,900

4,631,600 244,600 5,224,500 5,469,100

445,400 445,400 15,859,200 7,281,500 1,610,900 4,222,100 2,176,000 30,600 15,321,100 9,784,100 5,091,600 445,400 15,321,100 11,890,700 3,430,400 15,321,100

188,300 188,300 15,918,300 7,686,700 1,597,900 4,222,100 2,176,000 30,600 15,713,300 9,967,400 5,557,600 188,300 15,713,300 12,278,000 3,435,300 15,713,300

659,800 659,800 10,601,300 6,562,000 939,100 2,825,000 30,600 10,356,700 4,565,600 5,131,300 659,800 10,356,700 8,256,600 2,100,100 10,356,700

340,500 340,500 10,441,200 6,679,600 897,400 2,762,800 30,600 10,370,400 4,631,600 5,398,300 340,500 10,370,400 8,268,500 2,101,900 10,370,400

General Administration and Program Support provides the central coordination and direction for the overall planning, management and oversight of the agencies within the Cabinet. It is responsible for policy and budget development and personnel transactions; legal services including legislative and regulatory development and oversight; a communications strategy with the public, business, and industry; economic analysis and research; accounting, purchasing, and facilities management; and information technology and other administrative support services. The program includes the following units: The Office of the Secretary provides strategic direction and leadership to establish the focus for policy development, implementation, and program priorities. The Office coordinates Cabinet activities among its departments and agencies to ensure continuous improvement in administration and efficient service to the citizens of the Commonwealth. The Secretary serves as the Chief Executive Officer of the Cabinet and is an advisor to the Governor and the General Assembly. The Office of Educational Programs assists in maintaining the Cabinets presence with educational agencies and managing state-wide educational programs, among other responsibilities. The Office of Legal and Legislative Services oversees the Cabinets legislative agenda and issues, including constituent services and board and commissions responsibilities.

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The Office of Budget and Administration is the Cabinets chief financial and administrative office. The Division of Administrative Services is responsible for all central office purchasing, auditing and processing financial documents, compliance with the Federal Cash Management Act, federal reporting, development of the Indirect Cost Plan, monitoring and reconciliation of all financial transactions, and compliance with state and federal guidelines. The Division of Human Resources is responsible for all Cabinet personnel activities including personnel and payroll processing, providing benefits services to Cabinet employees and developing workshops and training programs for employees. The Office of Technology Services oversees and assists with the Cabinets application development needs and serves as the central location for all Cabinet data processing programs statewide. The Office works with the Commonwealth Office of Technology to effectuate the Cabinets information technology infrastructure objectives. The Office of Communication provides internal and external communications, marketing support and media advisory services to the Cabinet, Executive Offices, Department for Workforce Investment and other Cabinet agencies. The Office interprets and disseminates information about the Cabinet and its components to employees, the media and the general public. The Office of Education and Workforce Statistics and the Board of the Kentucky Center for Education and Workforce Statistics manage and oversee the Kentucky Longitudinal Data System. The System is a data repository housing early childhood through postsecondary education, and training and employment information. The Office removes individual identifiers from the data and links information across agencies, schools, and institutions to provide a complete picture of the education-to-employment process to better inform decisions made by state and local policy makers, the general public, and other stakeholders. The office conducts studies and provides feedback about the performance of high school graduates after they go to college; the outcome of teacher preparation, college, adult education, and other programs; and develops the Kentucky County Profiles book. The Kentucky Center for Education and Workforce Statistics Board is comprised of the heads of the five participating agencies and includes the commissioner of the Department of Education, the president of the Kentucky Council on Postsecondary Education, the secretary of the Education and Workforce Development Cabinet, the Executive Director of the Education Professional Standards Board, and the CEO/Executive Director of the Kentucky Higher Education Assistance Authority. The board is charged with developing a detailed access and use policy for data and information request, overseeing the Office and establishing its research agenda, and overseeing compliance by the Office with the federal Family Educational Rights and Privacy Act and other relevant federal and state privacy laws. The Governors Scholars Program (GSP) is designed to motivate and empower Kentuckys brightest young people to become effective thinkers and citizen leaders with a zeal for excellence and a mind for innovation. The program provides an intensive residential summer academic and personal growth program for academically talented rising high school seniors. The scholars, chosen competitively, spend five uninterrupted weeks in the program on three college campuses. The Program served 1,050 students in the summer of 2013.

Policy The Executive Budget includes an additional $263,000 General Fund in each fiscal year for the Governors Scholars Program to provide an increase of 100 more students.

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Education and Workforce Development Proprietary Education Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Proprietary Education TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

13,400 13,400 230,300 165,000 395,300 395,300 170,700 17,000 187,700 207,600 236,200 443,800 457,200 252,700 19,600 272,300 13,400 258,900 272,300 272,300 272,300

15,000 15,000 184,900 245,400 430,300 445,300 263,500 19,600 283,100 15,000 268,100 283,100 283,100 283,100 207,600 236,200 443,800 443,800 252,700 19,600 272,300 171,500 245,400 416,900 416,900 263,500 19,600 283,100

187,700 187,700 187,700 187,700

272,300 272,300 272,300 272,300

283,100 283,100 283,100 283,100

The Kentucky Commission on Proprietary Education was established by action of the 2012 Kentucky General Assembly; it replaced the Board of Proprietary Education. The 11-member commission is charged with licensing and regulating all proprietary schools, doing business in Kentucky, other than those that offer a four year bachelors degree. The duties of the Commission include issuing and renewing licenses to eligible proprietary schools, investigating complaints from students and schools, and administering and enforcing the provisions of KRS Chapter 165A pertaining to the conduct, operation, maintenance, and establishment of proprietary education institutions and the activities of agents of the schools. The Commission also administers the Student Protection Fund. Each licensed school is obligated to contribute to the fund which reimburses eligible students in the event a school closes, loses its accreditation, or discontinues a program.

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Education and Workforce Development Deaf and Hard of Hearing Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Commission on the Deaf and Hard of Hearing TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

775,900 2,600 778,500 3,200 806,600 809,800 1,588,300 1,019,500 568,800 1,588,300 778,500 809,800 1,588,300 1,588,300 1,588,300

867,900

929,100

861,300

883,200

867,900

929,100

861,300

883,200

1,109,200 1,109,200 1,977,100 1,191,400 785,700 1,977,100 867,900 1,109,200 1,977,100 1,977,100 1,977,100

1,109,200 1,109,200 2,038,300 1,257,500 780,800 2,038,300 929,100 1,109,200 2,038,300 2,038,300 2,038,300

1,109,200 1,109,200 1,970,500 1,184,800 785,700 1,970,500 861,300 1,109,200 1,970,500 1,970,500 1,970,500

1,109,200 1,109,200 1,992,400 1,211,600 780,800 1,992,400 883,200 1,109,200 1,992,400 1,992,400 1,992,400

In accordance with KRS 163.510, the Commission on the Deaf and Hard of Hearing advises the Governor and the General Assembly concerning policies and programs to enhance the quality and coordination of services for deaf and hard of hearing individuals in both the public and private sectors. The Commission oversees the provision of interpreter services to deaf and hard of hearing individuals; identifies and evaluates public and private entities that provide services to deaf and hard of hearing residents of Kentucky for information, referral, and advocacy services; administers a Telecommunications Access Program which provides specialized telecommunications equipment to qualified deaf, hard of hearing, and speech-impaired residents of Kentucky; assists local, state, and federal governments and public and private agencies in the development of programs for the deaf and hard of hearing; and reviews legislative programs relating to services for deaf and hard of hearing persons and conducts studies of conditions affecting the health and welfare of the deaf and hard of hearing.

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Education and Workforce Development Kentucky Educational Television Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT General Administration and Support Broadcasting and Education Engineering TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

12,049,200 37,200 12,086,400 1,180,500 1,451,000 2,631,500 14,717,900 9,433,300 4,834,100 150,500 50,000 14,467,900 12,086,400 2,381,500 14,467,900 2,343,000 9,902,400 2,222,500 14,467,900

14,937,300

15,193,600

13,037,900

13,245,000

14,937,300 1,180,500 1,451,000 2,631,500 17,568,800 11,188,800 4,716,000 150,500 283,000 50,000 16,388,300 14,937,300 1,451,000 16,388,300 2,790,300 11,273,000 2,325,000 16,388,300

15,193,600 1,180,500 1,451,000 2,631,500 17,825,100 11,843,600 4,600,500 150,500 50,000 16,644,600 15,193,600 1,451,000 16,644,600 2,613,300 11,633,000 2,398,300 16,644,600

13,037,900 250,000 1,451,000 1,701,000 14,738,900 10,164,500 4,123,900 150,500 50,000 14,488,900 13,037,900 1,451,000 14,488,900 2,474,100 9,498,200 2,516,600 14,488,900

13,245,000 250,000 1,451,000 1,701,000 14,946,000 10,357,100 4,138,400 150,500 50,000 14,696,000 13,245,000 1,451,000 14,696,000 2,517,300 9,638,400 2,540,300 14,696,000

KET was established by the Kentucky General Assembly in the early 1960s for the purpose of supporting educational excellence in the Commonwealth. The agencys mission includes service to citizens of the Commonwealth in the home, in institutions of education, and in the workplace. As required by KRS 168, the Kentucky Authority for Educational Television (KET) produces and transmits educational programming for students in public schools, state supported institutions of higher education, and others desiring broadcast programs and services. KET is divided into three program areas: General Administration and Support, Broadcasting and Education, and Engineering. The Broadcasting and Education unit acquires and produces programs and related support material which will most effectively carry out the mission and policies set by the Kentucky Authority for Educational Television. This process includes soliciting feedback from appropriate audiences and seeking input from agencies and groups such as the Kentucky Department of Education and the Higher Education Telecommunications Consortium. The unit assembles three channels of television programming: KET1 carries educational and informational programs for all Kentucky citizens; KET2 carries additional programs and repeats of important programs carried on KET1; and KETKY carries programs about Kentucky and Kentuckians and overnight feeds of instructional programs for schools. KETKY also carries the Kentucky General Assembly when in session or in committee, as well as, occasional special feeds for the State Department of Education, Kentucky Community and Technical College System or other partners as needed. Instructional programming for elementary and secondary schools directly supports the learning goals and outcomes of Kentuckys Common Core Standards, adopted in February 2010. The Broadcasting and Education unit produces interactive and other distance learning courses designed to provide equal access to a variety of learning opportunities for all students. It produces professional development opportunities for educators throughout the state and broadcasts programs designed to help people in the workplace. Acquired and/or locally produced programming services are delivered to under-educated adults, professionals in need of training, and other citizens with various needs related to their jobs and professions. The unit also produces multiple schedules of nationally- and locally-produced programs for citizens at home and in the workplace. This includes educational and public affairs programming as well as quality arts experiences for all Kentuckians. A full line-up of childrens educational programs offers a quality alternative to commercial television viewing. KETs Engineering Service unit oversees the delivery of KET programs and other services. It operates and maintains a landbased broadcast network of 16 digital transmitters and three translators capable of delivering multiple channels of content and

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data into all parts of the state. The Engineering Service unit operates all technical equipment to specifications mandated by the Federal Communications Commission. The General Administration and Support unit oversees the implementation of KETs mission as directed by the Kentucky Authority for Educational Television and recommends and carries out the policies of the Authority in all matters of the agency. The unit assures that the agency is in compliance with pertinent state regulations and federal broadcast laws and works to ascertain the desires of the citizens of the Commonwealth. The unit conducts research and planning activities to verify the needs of current and potential audiences then works to assure effective, efficient, and appropriate service to those audiences.

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Education and Workforce Development Environmental Education Council Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Ky Environmental Education Council TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

73,600 73,600 307,900 1,500 179,300 488,700 488,700 207,500 29,900 112,000 349,400 139,300 1,500 170,000 310,800 384,400 234,800 41,100 45,000 320,900 73,600 247,300 320,900 320,900 320,900

86,600 86,600 63,500 1,500 170,000 235,000 321,600 261,700 39,900 20,000 321,600 86,600 235,000 321,600 321,600 321,600 139,300 1,500 170,000 310,800 310,800 208,700 31,200 239,900 70,900 1,500 170,000 242,400 242,400 212,400 30,000 242,400

349,400 349,400 349,400 349,400

239,900 239,900 239,900 239,900

242,400 242,400 242,400 242,400

The Kentucky Environmental Education Council was established in 1990 by KRS 157.910 and is charged with improving the environmental literacy of all Kentuckians. The Council provides opportunities for all Kentuckians to understand both that environmental problems exist and how each persons actions contribute to the health of the environment. In accordance with KRS 224.10-250, the Council receives the first $150,000 in environmental fines and penalties collected by the Energy and Environment Cabinet for funding programs and activities that improve the quality of environmental education in the Commonwealth. These programs and activities include: Working with citizens, especially those engaged in environmental education, to implement the master plan for improving environmental education and environmental literacy. Working with the Kentucky Department of Education, the Education Professional Standards Board, and agencies that make up the Environmental Education Interagency Committee to establish guidelines for improving professional development in environmental education for educators. Establishing standards for environmental education that fit within the Kentucky Department of Educations instructional standards and help insure balanced, ecologically-based curriculum and instruction. Working to ensure that environmental education is equitably distributed to all Kentuckians.

Additionally, in accordance with KRS 224.43-505, the Council provides interest accrued on the Kentucky Pride Fund, a fund that receives environmental remediation fees charged on each ton of waste disposed of at Kentucky landfills, to the eight state public universities to operate environmental education centers. Policy The low estimates for interest income that accrue to the Environmental Education Council from the Kentucky Pride Fund, $6,600 in fiscal year 2015 and $7,200 in fiscal year 2016, and higher retirement costs, require that the Council use it to pay its basic expenses. Should the interest revenue exceed estimates, any available funds will be provided to the eight state universities.

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Education and Workforce Development Libraries and Archives Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Libraries and Archives Direct Local Aid TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

11,107,500 22,200 11,129,700 2,343,800 2,793,600 5,137,400 94,500 2,581,300 2,675,800 18,942,900 6,351,500 3,662,500 6,662,500 235,100 16,911,600 11,129,700 3,106,100 2,675,800 16,911,600 10,090,600 6,821,000 16,911,600

15,517,600

17,817,600

12,444,200

12,543,400

15,517,600 2,809,200 5,058,400 7,867,600

17,817,600 3,625,900 4,092,700 7,718,600

12,444,200 2,031,300 5,077,400 -300,000 6,808,700

12,543,400 2,430,300 4,062,000 6,492,300

2,704,600 2,704,600 26,089,800 7,843,900 4,022,600 10,195,900 401,500 22,463,900 15,517,600 4,241,700 2,704,600 22,463,900 12,109,500 10,354,400 22,463,900

2,739,900 2,739,900 28,276,100 7,633,500 3,564,200 12,153,800 276,500 23,628,000 17,817,600 3,070,500 2,739,900 23,628,000 11,315,700 12,312,300 23,628,000

2,704,600 2,704,600 21,957,500 7,284,300 4,221,700 7,619,700 401,500 19,527,200 12,444,200 4,378,400 2,704,600 19,527,200 11,749,000 7,778,200 19,527,200

2,739,900 2,739,900 21,775,600 6,827,700 3,776,900 7,577,600 276,500 18,458,700 12,543,400 3,175,400 2,739,900 18,458,700 10,722,600 7,736,100 18,458,700

The Department for Libraries and Archives supports and promotes equitable access to quality library services and information resources, and ensures that adequate documentation of government programs is created, maintained, and available for public use. The Department is directed by three goals: To provide effective services that meet the needs of library and public records customers, To build effective and productive partnerships with other organizations and public agencies for enhanced management of and access to information and services, and To improve employee job satisfaction and agency operations.

The Department serves both governmental agencies and the people of Kentucky directly through local public libraries. The Department also serves several distinct customer populations including the general public, the blind and physically disabled, institutionalized persons, state government personnel, state and local public agencies, and researchers needing historic public records.

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Education and Workforce Development Libraries and Archives Libraries and Archives Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Administrative Services Field Services State Library Services Public Records TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

5,781,600 22,200 5,803,800 1,959,700 1,897,900 3,857,600 94,500 1,981,900 2,076,400 11,737,800 6,351,500 3,476,100 27,900 235,100 10,090,600 5,803,800 2,210,400 2,076,400 10,090,600 2,818,000 1,888,400 1,655,600 3,728,600 10,090,600

6,615,500

6,915,500

6,118,300

6,217,500

6,615,500 2,425,100 4,162,700 6,587,800

6,915,500 3,241,800 3,197,000 6,438,800

6,118,300 1,647,200 4,181,700 5,828,900

6,217,500 2,346,200 3,166,300 5,512,500

2,148,000 2,148,000 15,351,300 7,843,900 3,836,200 27,900 401,500 12,109,500 6,615,500 3,346,000 2,148,000 12,109,500 2,912,200 2,242,100 1,766,000 5,189,200 12,109,500

2,225,400 2,225,400 15,579,700 7,633,500 3,377,800 27,900 276,500 11,315,700 6,915,500 2,174,800 2,225,400 11,315,700 2,957,400 2,361,300 1,847,800 4,149,200 11,315,700

2,148,000 2,148,000 14,095,200 7,284,300 4,035,300 27,900 401,500 11,749,000 6,118,300 3,482,700 2,148,000 11,749,000 3,014,600 1,947,500 1,646,700 5,140,200 11,749,000

2,225,400 2,225,400 13,955,400 6,827,700 3,590,500 27,900 276,500 10,722,600 6,217,500 2,279,700 2,225,400 10,722,600 3,033,300 2,005,700 1,697,300 3,986,300 10,722,600

The Department for Libraries and Archives supports and promotes equitable access to quality library services and information resources, and ensures that adequate documentation of government programs is created, maintained, and available for public use. Administrative Services The Libraries and Archives Commissioners Office sets overall policy and direction for the Department and provides communication advice and support to each division. The Office supports the activities of the State Advisory Council on Libraries, chairs the Archives and Records Commission, and serves on the State Information Systems Commission, the Communications Advisory Committee, and the Oral History Commission. The Division of Administrative Services formulates and implements executive direction for planning, policy, and procedures for the Department in accordance with KRS Chapter 171. The Division provides administrative support to the program areas of the Department. This division funds and supports the activities of the Commissioners Office, as well as those of the Financial, Personnel and Payroll, Federal Grants Management, Information Systems, Building Facilities, and Administrative Support units. Field Services The Division of Field Services supports Kentuckys public libraries for the improvement of library services by providing consultation, technical assistance, and financial aid. The Division provides services pursuant to KRS Chapter 171. This divisions Public Library Development Branch includes professional and technical staff who provide consultative and technical assistance concerning public library services and programs provided by the Department. The staff is located in
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regional offices that are mainly housed in local public libraries. The Program Development Branch provides statewide guidance in specialized library services. This office plans and implements statewide continuing education programs. Services are also provided for technological development, automated operations, and statistical analysis. Branch staff provide consulting services in the areas of library construction; assistance in developing early childhood, childrens, and young adult programs and materials; and provides administrative support to the Kentucky State Board for the Certification of Librarians. The Kentucky Talking Book Library and Institutions Branch provides special library materials and playback equipment to eligible service clientele. Volunteers record materials that are of special interest to Kentucky Talking Book patrons, and department staff coordinate distribution. The Branch also provides library materials and professional consultation to state residential institution libraries. State Library Services The Division of State Library Services operates the State Library that serves state government personnel, public libraries, other institutions, and individuals. In an effort to equalize library services and access to information across the state, this division promotes and maintains cooperative arrangements for information and resource sharing among all types of libraries, library consortia, and information centers including state agencies as mandated by Chapter 171. State Library Support is the administrative unit of the Division and provides coordinated program planning and control to ensure the best service in a cost-effective manner. The unit directs the statewide library resource-sharing activities of the Department, including direct service delivery, coordination of activities on a statewide basis, and support via direct local aid. The Department works closely with the Kentucky Virtual Library (KYVL) in the delivery of services and coordination of activities, and also participates as an individual library institution. The Public Services Branch is committed to providing resources, research, consultation, and assistance to state agencies and public libraries through use of a variety of information formats including the Internet. The State Library partners with the Governmental Services Center (GSC) and the Kentucky Employee Assistance Program (KEAP) to provide supplementary information resources for those agencies clients through the Librarys web site. The Audiovisual unit of the Branch provides a centralized collection of videos and films that are loaned without a fee to public libraries, state agencies, and walk-in customers. The unit is unique in that it is the only major source of films and public performance videos in the Commonwealth. The primary needs are for childrens films suitable for large audience viewing and videos designed for adult training and education. The Technical Support Branch provides computerized access to information for the State Librarys collections and public libraries. The Branch serves as a model for quality control throughout the state, and supplies training and consulting services to librarians and state agency personnel involved in the organization of reference materials. Public Records The Division of Public Records, under KRS 171.410-740, works with government agencies to create and preserve documentation of agencies organizational functions, policies, decisions, procedures, and essential transactions, as well as information that protects the legal and financial rights of government and of individuals directly affected by an agencys activities. The Division establishes standards, procedures, and administrative regulations for recording, managing, preserving, and reproducing government records. It works with the heads of state and local government agencies to ensure that the agencies create and maintain active programs for efficient records management. The Public Records Support Office provides overall policy development, coordination of program planning, and administrative direction of division programs in public records administration and archival management. The State Records Branch assists state agencies, boards and commissions, public universities, and judicial offices in developing and maintaining programs to manage government information. Branch staff manage the State Records Center for high volume storage of non-permanent records still in business use. The Archival Services Branch operates the states central repository for valuable government records. It serves as the official point of access for state government information. The Branch is also involved in a variety of outreach and educational activities that inform public officials and the general public about the wealth and range of materials housed at the State Archives. The Technology Analysis and Support Branch provides support to agencies on archival and records management considerations in the application of information technology. It works with other units to provide guidance to public agencies on the management of electronic records and oversees the work of the Departments Document Preservation Laboratory. This includes professional consulting, education and training programs, records disaster recovery assistance, and laboratory conservation treatment. The Image Management Branch provides centralized image management and micrographics services to state and local government agencies on a cost recovery basis. These central services help improve access to information, reduce the volume of paper-based files, and ensure archival preservation of information contained in fragile paper records. The Local Records Branch assists local government agencies in implementing and maintaining archives and records management programs.
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Education and Workforce Development Libraries and Archives Direct Local Aid Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Fund Transfers Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Field Services State Library Services Public Records TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

5,325,900 5,325,900 384,100 895,700 1,279,800 599,400 599,400 7,205,100 186,400 6,634,600 6,821,000 5,325,900 895,700 599,400 6,821,000 5,263,700 386,400 1,170,900 6,821,000

8,902,100 8,902,100 384,100 895,700 1,279,800 556,600 556,600 10,738,500 186,400 10,168,000 10,354,400 8,902,100 895,700 556,600 10,354,400 8,797,100 386,400 1,170,900 10,354,400

10,902,100 10,902,100 384,100 895,700 1,279,800 514,500 514,500 12,696,400 186,400 12,125,900 12,312,300 10,902,100 895,700 514,500 12,312,300 10,755,000 386,400 1,170,900 12,312,300

6,325,900 6,325,900 384,100 895,700 -300,000 979,800 556,600 556,600 7,862,300 186,400 7,591,800 7,778,200 6,325,900 895,700 556,600 7,778,200 6,220,900 386,400 1,170,900 7,778,200

6,325,900 6,325,900 84,100 895,700 979,800 514,500 514,500 7,820,200 186,400 7,549,700 7,736,100 6,325,900 895,700 514,500 7,736,100 6,178,800 386,400 1,170,900 7,736,100

Direct Local Aid provides the following services to citizens of the Commonwealth: Federal grants are provided for continuing education, training, and demonstration projects. State aid provides cash grants to all counties with legally established public libraries. The grant funds may be used for the following purposes: purchase, upgrade, and maintenance of technology resources; purchase of library materials and equipment; maintenance and operation of bookmobiles and extension programs; staff and trustee training and compensation; building maintenance; debt service; resource-sharing; program development; and certain other local library needs and services. The Bookmobile program furnishes and replaces bookmobiles used by Kentuckys public libraries. The bookmobiles provide informational and educational resources to those who cannot physically reach a public library. Bookmobiles make regular stops at schools, daycare centers, and after-school centers. Services are also provided to the elderly and homebound individuals. Funds are also provided for maintenance and repair of existing bookmobiles. Services are provided as funds are available. Construction grants are available through a competitive application process to assist with retiring debt associated with the construction or repair of library facilities. Institution grants are given to two local libraries to administer library service in three state prisons. The Danville Library works with the Northpoint Training Center, and the Oldham County Public Library works with the Kentucky State Reformatory and the Kentucky Correctional Institution for Women. Kentucky Talking Book Library grants are given to assist in the delivery of services directly to blind and physically disabled library patrons. Local Records grants provide funds to assist local governments with the protection and preservation of public records, and the improvement of local government records management programs.

These services are administered by the Departments program divisions: Field Services, State Library Services, and Public Records. Direct services include cash grants, library materials, and bookmobiles.

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Policy The Executive Budget provides additional General Fund of $1,000,000 in each fiscal year to the Public Libraries Facilities Construction Fund for additional grants to public libraries to assist with reduction of debt associated with new construction or renovation of existing library space.

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Education and Workforce Development Office for the Blind Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT General Blind Services Business Enterprise Program Center for Independent Living Assistive Technology Service TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,229,600 5,600 1,235,200 492,100 476,300 968,400 15,500 6,833,300 6,848,800 9,052,400 5,969,000 1,220,300 1,646,200 1,900 8,837,400 1,235,200 753,400 6,848,800 8,837,400 7,692,300 408,400 734,300 2,400 8,837,400

1,845,500

1,939,300

1,335,100

1,363,700

1,845,500 215,700 1,170,300 1,386,000

1,939,300 215,000 1,078,800 1,293,800

1,335,100 215,000 1,170,300 1,385,300

1,363,700 209,200 1,078,800 1,288,000

8,567,100 8,567,100 11,798,600 6,707,700 1,219,600 3,654,400 1,900 11,583,600 1,845,500 1,171,000 8,567,100 11,583,600 10,156,300 631,900 795,400 11,583,600

8,672,600 8,672,600 11,905,700 7,081,700 1,219,600 3,387,500 1,900 11,690,700 1,939,300 1,078,800 8,672,600 11,690,700 10,198,100 656,500 836,100 11,690,700

7,242,700 7,242,700 9,963,100 6,320,600 1,242,500 2,188,900 1,900 9,753,900 1,335,100 1,176,100 7,242,700 9,753,900 8,357,900 623,900 772,100 9,753,900

7,457,600 7,457,600 10,109,300 6,449,100 1,243,800 2,140,100 1,900 9,834,900 1,363,700 1,093,800 7,377,400 9,834,900 8,415,300 633,400 786,200 9,834,900

Pursuant to KRS 163.470 and the Rehabilitation Act of 1973 as amended, the Office for the Blind provides services to assist individuals who are blind and visually impaired in preparing for, obtaining, improving, and maintaining employment, as well as enabling them to live more independent and fulfilling lives. Office for the Blind has professional staff located at the central office as well as in Kentucky Career Centers throughout the state. Kentucky Career Centers house not only Office for the Blind staff, but also staff from partner agencies such as Office of Vocational Rehabilitation, Office of Employment and Training, Department for Community Based Services, Kentucky Adult Education, Community Action, and others. Such collaboration affords consumers the convenience of a one-stop approach for accessing various types of assistance necessary for reaching employment goals. The Office provides vocational rehabilitation of blind and visually impaired Kentuckians. Vocational Rehabilitation Counselors provide vocational counseling, evaluation, physical and mental restoration, vocational and higher education training, assistive technology training, adaptive devices, orientation and mobility training, and job placement services. The Counselors receive ongoing training to maintain certification and to gain knowledge of the latest developments in rehabilitation techniques. The Office provides services through the following avenues: The Office has 10 field offices that provide direct vocational rehabilitation services to individuals with severe visual impairments. The Charles McDowell Comprehensive Rehabilitation Center for the Blind is a facility in Louisville that provides training in vocational preparation, personal adjustment services, independent living skills, orientation and mobility skills, Braille, assistive technology, career assessment, vocational planning, work adjustment, and work experience. In Lexington and Paducah, the Office operates two volunteer recording units that provide audio-recorded materials statewide for blind and visually impaired individuals. The Business Enterprise Program trains and provides equipment to blind individuals for self-employment at vending facilities located statewide.

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The Independent Living Program provides training to blind and visually impaired individuals in areas that will enable them to live and function independently.

Pursuant to KRS 163.470(11) and the federal Randolph-Sheppard Act, the Division of Business Enterprises Program (BEP) establishes vending facilities on state, federal, and other property to provide remunerative employment for licensed merchants who are visually impaired. Business Enterprises staff provides management services and training to individuals who are visually impaired, identifies and develops new sites suitable for vending facilities, and repairs and replaces equipment in existing vending facilities. The Business Enterprise Program also collects a set-aside, or fee based upon the percentage of gross sales from vending operations. The visually impaired merchants currently contribute five percent of their net income to be used for their own health insurance and an IRA. The funds received from the interstate vending contract are utilized exclusively in the Business Enterprises Program. Pursuant to KRS 163.470 and Title VII of the Rehabilitation Act, independent living specialists provide short-term, individualized instruction for individuals who are blind so they may be able to function independently. Services include information, counseling, and skills training in activities of daily living. Mobility training, assistive devices, referrals to community resources in housing and transportation, and information on services offered by other agencies are provided. The service population consists mainly of individuals who are elderly or unable to work due to the severity of disabilities. The Office employs independent living specialists who are located throughout the state. These specialists make home visits and provide specially-adapted aids and appliances such as Braille and talking watches, controls on stoves, writing guides, phone dials, and canes. They provide limited instruction in household tasks such as cooking, keeping time, and learning in the home. The specialists also work with families to educate them about blindness and how to promote independent living.

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Education and Workforce Development Employment and Training Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Employer and Placement Services Unemployment Insurance Workforce Investment Act TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

7,274,800 7,274,800 3,204,500 30,131,900 33,336,400 2,213,700 1,118,333,000 1,120,546,700 1,153,883,100 56,043,700 15,575,100 1,061,789,800 14,568,500 487,800 1,148,464,900 3,205,200 30,131,900 33,337,100 2,213,700 1,125,132,100 1,127,345,800 1,167,957,700 65,139,500 15,553,200 1,066,789,800 14,568,500 487,800 1,162,538,800 7,274,800 30,131,900 1,125,132,100 1,162,538,800 31,103,900 1,071,845,000 59,589,900 1,162,538,800

7,663,100 7,663,100 3,205,200 30,131,900 33,337,100 2,213,700 1,127,507,300 1,129,721,000 1,170,721,200 67,903,300 15,552,900 1,066,789,800 14,568,500 487,800 1,165,302,300 7,663,100 30,131,900 1,127,507,300 1,165,302,300 32,283,200 1,073,347,000 59,672,100 1,165,302,300 3,204,500 30,131,900 33,336,400 2,213,700 1,125,132,100 1,127,345,800 1,160,682,200 61,661,700 15,585,800 1,061,789,800 14,568,500 487,800 1,154,093,600 3,178,100 30,131,900 33,310,000 3,410,500 1,127,507,300 1,130,917,800 1,164,227,800 65,234,000 15,585,500 1,061,789,800 14,568,500 487,800 1,157,665,600

30,131,900 1,118,333,000 1,148,464,900 26,094,800 1,068,114,300 54,255,800 1,148,464,900

30,158,300 1,123,935,300 1,154,093,600 29,143,400 1,070,434,200 54,516,000 1,154,093,600

30,158,300 1,127,507,300 1,157,665,600 31,311,500 1,071,764,900 54,589,200 1,157,665,600

The Office of Employment and Training (OET) administers federally-funded programs that provide employment-related services to the citizens of Kentucky. OET provides a wide array of professional services to employers and job seekers. These services include employment counseling, testing, assessment, job search assistance, and placement services to all citizens, as well as training programs for dislocated workers and other individuals who are economically disadvantaged. The programs are funded by federal grants, with the principal revenue source derived from the Unemployment Insurance (UI) program. The federal government, through the employer-paid Federal Unemployment Tax Act (FUTA), provides the Offices operating and capital funding for the two programs. The Office also receives funds to administer several smaller programs that are related to UI and Employment Services, including: Veterans Employment and Training Services, Labor Market Information, Alien Labor Certification, Agricultural Wage Surveys, and Alien Farmworker Housing Inspections. The Office administers training programs under the Trade Adjustment Assistance program and Title I of the Workforce Investment Act. These programs are designed to provide temporary income maintenance through UI to individuals who are unemployed through no fault of their own, and to assist the unemployed, underemployed, and persons who wish to change occupations in finding suitable employment. Additional benefits include the reduction of public burden through the early placement of welfare recipients and UI claimants. The Department is also responsible for assessing and collecting taxes from employers to distribute benefits to those who qualify for unemployment compensation.

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Education and Workforce Development Employment and Training Employer and Placement Services Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Job Placement Services Special Employment Services Employment Information Support TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

790,100 790,100 1,993,500 1,500,000 3,493,500 -1,196,800 24,594,800 23,398,000 26,891,500 11,472,500 4,342,900 10,026,500 252,900 26,094,800 1,993,500 1,500,000 3,493,500 -1,196,800 28,813,800 27,617,000 31,900,600 16,490,400 4,334,100 10,026,500 252,900 31,103,900 790,100 1,500,000 28,813,800 31,103,900 13,850,100 15,229,000 2,024,800 31,103,900

998,100 998,100 1,993,500 1,500,000 3,493,500 -1,196,800 29,785,100 28,588,300 33,079,900 17,670,000 4,333,800 10,026,500 252,900 32,283,200 998,100 1,500,000 29,785,100 32,283,200 14,746,100 15,423,800 2,113,300 32,283,200 1,993,500 1,500,000 3,493,500 -1,196,800 28,813,800 27,617,000 31,110,500 14,497,800 4,366,200 10,026,500 252,900 29,143,400 1,967,100 1,500,000 3,467,100

29,785,100 29,785,100 33,252,200 16,666,200 4,365,900 10,026,500 252,900 31,311,500

1,500,000 24,594,800 26,094,800 9,973,700 14,342,500 1,778,600 26,094,800

1,526,400 27,617,000 29,143,400 12,140,400 15,061,800 1,941,200 29,143,400

1,526,400 29,785,100 31,311,500 14,055,600 15,236,300 2,019,600 31,311,500

There are two objectives of the Employer and Placement Services program. The first is to assist individuals who are unemployed, underemployed, or simply seeking to change their employment situation. The second is to assist employers in obtaining qualified workers to fill job openings as quickly as possible. This program provides counseling, employment testing, job development, referral, and placement.

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Education and Workforce Development Employment and Training Unemployment Insurance Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Unemployment Insurance Administration Unemployment Insurance Benefits TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,410,800 1,410,800 1,211,000 28,631,900 29,842,900 2,355,100 1,039,482,400 1,041,837,500 1,071,680,400 42,359,500 10,363,000 1,000,683,300 14,568,500 140,000 1,068,114,300 1,211,000 28,631,900 29,842,900 2,355,100 1,041,802,300 1,044,157,400 1,075,411,100 46,103,300 10,349,900 1,000,683,300 14,568,500 140,000 1,071,845,000 1,410,800 28,631,900 1,041,802,300 1,071,845,000 71,845,000 1,000,000,000 1,071,845,000

1,582,100 1,582,100 1,211,000 28,631,900 29,842,900 2,355,100 1,043,133,000 1,045,488,100 1,076,913,100 47,605,300 10,349,900 1,000,683,300 14,568,500 140,000 1,073,347,000 1,582,100 28,631,900 1,043,133,000 1,073,347,000 73,347,000 1,000,000,000 1,073,347,000 1,211,000 28,631,900 29,842,900 2,355,100 1,041,802,300 1,044,157,400 1,074,000,300 44,692,500 10,349,900 1,000,683,300 14,568,500 140,000 1,070,434,200 1,211,000 28,631,900 29,842,900 2,355,100 1,043,133,000 1,045,488,100 1,075,331,000 46,023,200 10,349,900 1,000,683,300 14,568,500 140,000 1,071,764,900

28,631,900 1,039,482,400 1,068,114,300 68,114,300 1,000,000,000 1,068,114,300

28,631,900 1,041,802,300 1,070,434,200 70,434,200 1,000,000,000 1,070,434,200

28,631,900 1,043,133,000 1,071,764,900 71,764,900 1,000,000,000 1,071,764,900

The purpose of the Unemployment Insurance (UI) program is to provide temporary financial assistance to workers who become unemployed through no fault of their own, in the form of regular UI benefit payments in an amount determined by the claimants wage history. Regular UI benefits are funded entirely through payment of the state unemployment taxes by employers determined liable under KRS Chapter 341 based upon the size and duration of payroll. Within the Office of Employment and Training, the Division of Unemployment Insurance supports the claims activities initiated in the local offices of the Division of Field Services. In the central office, the Benefits Branch ensures and accounts for the proper payment of regular UI and federal program benefits, including the determination of chargeability to a specific employer for the cost of each regular UI claim. In cases where benefits have been drawn in error, the branch pursues restitution and, if fraud is involved, pursues prosecution of the claimant. The Benefits Branch also operates an interstate claims local office to serve claimants covered under Kentucky law but filing from other states. In addition to regular UI benefits, the program also administers payment of federal benefits to unemployed federal employees and discharged military personnel, those affected by changes in international trade, those affected financially in federal disaster areas, and those covered under extended unemployment compensation programs. With the exception of partial payment from state UI funds in the case of some extended benefits, these programs are financed by employer federal unemployment tax collected by the Internal Revenue Service. The administrative component of the UI program provides benefit payments based on earnings in a specific transaction period. Revenues for this program are derived from a federal unemployment tax on employers payrolls. KRS Chapter 341 provides the statutory authority and structure for the operation of the UI program in Kentucky. With regard to most particulars involving worker coverage, benefit entitlement, and employer liability, KRS Chapter 341 conforms to federal unemployment law derived from the Social Security Act of 1935. This state and federal statutory conformity is required in order

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for Kentucky employers to receive a credit against federal unemployment tax based on state tax payments, and in order for the agency to receive federal administrative funding. During fiscal year 2013, the Office of Employment and Training paid 2.96 million weeks of compensation to out-of-work Kentuckians with benefits totaling approximately $876.8 million. That amount is projected to decrease to approximately $490 million in FY2016 with the expiration of the federal Emergency Unemployment Compensation (EUC) on December 31, 2013. Total benefits paid in FY2013 included regular state benefits of $471 million, trade readjustment allowances of $4 million, and $401 million in Emergency Unemployment Compensation (EUC) and Extended Benefits (EB). Policy The Unemployment Insurance Trust Fund was depleted in January 2009 and Kentucky began to borrow from the Federal Unemployment Account (FUA). As of June 30, 2013, Kentuckys outstanding balance was about $625 million. Kentucky made an interest payment on the borrowed funds in September 2013. It is estimated that the interest payment due in September 2014 will be approximately $15,900,000, and the interest payment due in September 2015 will be approximately $13,200,000, and shall be paid from the Penalty and Interest Account in accordance with KRS 341.295. The Executive Budget includes revenue from an employer assessment established by the 2012 General Assembly, through enactment of HB 495, for the purpose of financing the interest payments.

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Education and Workforce Development Employment and Training Workforce Investment Act Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

5,073,900 5,073,900 1,055,400 54,255,800 55,311,200 55,311,200 2,211,700 869,200 51,080,000 94,900 54,255,800 1,055,400 54,516,000 55,571,400 60,645,300 2,545,800 869,200 56,080,000 94,900 59,589,900 5,073,900 54,516,000 59,589,900

5,082,900 5,082,900 1,055,400 54,589,200 55,644,600 60,727,500 2,628,000 869,200 56,080,000 94,900 59,672,100 5,082,900 54,589,200 59,672,100 1,055,400 54,516,000 55,571,400 55,571,400 2,471,400 869,700 51,080,000 94,900 54,516,000 1,055,400 54,589,200 55,644,600 55,644,600 2,544,600 869,700 51,080,000 94,900 54,589,200

54,255,800 54,255,800

54,516,000 54,516,000

54,589,200 54,589,200

In accordance with the provisions of the Workforce Investment Act (WIA), Kentucky continues to consolidate, coordinate, and improve employment, training, literacy, and vocational rehabilitation programs. WIA reforms implemented by the Commonwealth include streamlining services through a one-stop service delivery system housed in Kentucky Career Centers located throughout the state, empowering individuals by means of information and access to training resources through individual training accounts, providing universal access to core services, increasing accountability for results, ensuring a strong role for Local Workforce Investment Boards and the private sector in the workforce investment system, facilitating state and local flexibility, and improving youth services. The Workforce Investment Act specifies three funding streams to the states and local areas: adults, dislocated workers, and youth. Most services for adults and dislocated workers are provided through the Kentucky Career Centers, and most customers use individual training accounts to determine which training programs and training providers best fit their needs. The Act authorizes core services available to all adults, and intensive services for unemployed individuals who are not able to find jobs through core services alone. In some cases, intensive services are available to employed workers who need more help to find or keep a job that will lead to self-sufficiency. Through WIA, youth are prepared for postsecondary educational opportunities or employment. Programs link academic and occupational learning and include tutoring, study skills training, and instruction leading to completion of secondary school (including drop-out prevention); alternative school services; mentoring by appropriate adults; paid and unpaid work experience (i.e. internships and job shadowing); occupational skills training; leadership development; and appropriate supportive services. The 42-member Kentucky Workforce Investment Board (KWIB) serves as an advisory board to the Governor on workforce training and development issues. The KWIB is charged with creating a statewide vision for workforce development and adopting a plan to move Kentucky forward through workforce training and development.

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Education and Workforce Development Vocational Rehabilitation Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Carl D. Perkins Vocational Training Center Program Services Executive Director TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

11,109,500 23,000 11,132,500 412,000 2,290,300 2,702,300 704,200 42,967,300 43,671,500 57,506,300 23,709,900 5,082,700 28,225,900 125,500 57,144,000 11,132,500 2,340,000 43,671,500 57,144,000 8,335,700 47,103,500 1,704,800 57,144,000

13,991,500

14,371,600

11,385,200

11,509,100

13,991,500 362,300 3,125,800 3,488,100

14,371,600 348,100 3,286,700 3,634,800

11,385,200 362,300 3,125,800 3,488,100

11,509,100 348,100 3,286,700 3,634,800

53,150,900 53,150,900 70,630,500 25,997,400 4,978,300 39,186,700 120,000 70,282,400 13,991,500 3,140,000 53,150,900 70,282,400 8,638,900 59,755,300 1,888,200 70,282,400

54,186,500 54,186,500 72,192,900 27,431,700 4,978,300 39,329,800 120,000 71,859,800 14,371,600 3,301,700 54,186,500 71,859,800 8,993,700 60,877,500 1,988,600 71,859,800

44,567,600 44,567,600 59,440,900 24,599,600 5,037,200 29,336,000 120,000 59,092,800 11,385,200 3,140,000 44,567,600 59,092,800 8,254,700 48,949,900 1,888,200 59,092,800

45,251,900 45,251,900 60,395,800 25,249,100 5,038,500 29,655,100 120,000 60,062,700 11,509,100 3,301,700 45,251,900 60,062,700 8,399,500 49,674,600 1,988,600 60,062,700

The Office of Vocational Rehabilitation provides for and improves the vocational rehabilitation of citizens with physical and mental disabilities and helps eligible persons with disabilities achieve suitable employment. The Office of Vocational Rehabilitation has professional staff located at the central office as well as in Kentucky Career Centers throughout the state. Kentucky Career Centers house not only Office of Vocational Rehabilitation staff, but also staff from partner agencies such as Office for the Blind, Office of Employment and Training, Department for Community Based Services, Kentucky Adult Education, Community Action, and others. Such collaboration affords consumers the convenience of a one-stop approach for accessing various types of assistance necessary for reaching employment goals. The Office employs Vocational Rehabilitation Counselors and Program Specialists who utilize vocational assessments, and counseling and guidance services to match workers with disabilities to labor market needs. An array of services is provided to assist clients with reaching employment goals. Job preparation activities include on-the-job training and vocational and classroom instruction. Job development and placement services assist the individual in obtaining and maintaining suitable employment. Transition activities support a move from the classroom to the workplace. Rehabilitation technology adapts the physical environment at work or home to meet employment needs. Follow-up services ensure that employment is progressing satisfactorily. Counselors and Specialists receive ongoing training to maintain certification and to gain knowledge of the latest developments in rehabilitation strategies and techniques. The Office also provides services for employers. Such services include preparing job-qualified applicants, conducting job analyses, recommending job modifications, and conducting disability awareness programs. Other services include disability awareness training programs and affirmative action planning and services to employees with disability-related problems. As a result, employers experience risk reduction, save resources spent on training new hires, and increase cash flow through access to tax incentives.

92

The Rehabilitation Act of 1973, as amended, authorizes and provides federal funding for state vocational rehabilitation programs. Kentucky Revised Statutes 151B.180-210 complies with all provisions of the Act. The Code of Federal Regulations (CFR Chapter 34) and Title 781 of the Kentucky Administrative Regulations establish functions of the program. The Office also complies with relevant sections of the Kentucky Department of Educations administrative regulations. The Program Services Division provides direct vocational rehabilitation services to eligible individuals who have physical or mental disabilities and is responsible for the actual intake and client service delivery efforts of the Office and performs certain administrative functions. The Division implements the federal Rehabilitation Act of 1973 and must make available, services appropriate to the needs of individuals with disabilities. The services enumerated in the Rehabilitation Act include: evaluation of vocational rehabilitation potential; counseling and guidance; physical and mental restoration services; vocational and other training services; maintenance; transportation; services to family members; interpreter services and note-taking services for persons who are deaf; reader services and note-taking services for persons who are blind; assistive technology and devices; personal assistance services; recruitment and training services; placement; post-employment services; occupational licenses, equipment, initial stock and supplies; and other goods and services needed for employment. Program Planning and Development provides administrative and staff functions to enhance equitable and efficient service delivery to eligible individuals with disabilities. The Division has statewide responsibility for program planning, program evaluation, policy development, human resource development, job development and placement, and development of new and innovative programs. The Division also provides staff support to the Statewide Advisory Council for Vocational Rehabilitation and the Statewide Independent Living Council. Federal regulations require an approved State Plan for Vocational Rehabilitation Services under Title I of the Rehabilitation Act as a condition for receiving Federal Funds. The Carl D. Perkins Vocational Training Center (CDPVTC) at Thelma, Kentucky, is a multi-disciplinary residential rehabilitation facility located in Johnson County. The CDPVTC operates five major programs: Vocational Evaluation, Work Adjustment, Vocational Training, Physical Restoration/Outpatient Medical Rehabilitation, and Brain Injury Community Re-entry. All programs meet standards for program quality as documented by the Commission on Accreditation of Rehabilitation Facilities (CARF). Within these five programs, the following professional services are available: comprehensive vocational assessment, vocational training, physical therapy, occupational therapy, speech therapy, nursing services, physician services, adjustment services, psychological and psychiatric services, adult therapeutic recreation, vocational rehabilitation counseling, social services, assistive technology, transportation, and administrative services. A wide range of educational programs and services including developmental math, reading, GED test preparation, and the External Diploma Program are also available. The CDPVTC offers individualized placement services through Preparing Adults for Competitive Employment (PACE) and an Employment Relations Specialist. The Kentucky Assistive Technology Service (KATS) Network is a federally funded project operating within the Office of Vocational Rehabilitation. KATS is a statewide collaborative system of consumer-oriented organizations that help to provide assistive technologies to individuals with a variety of disabilities. The Administrative Management Division provides all administrative, technical, and budget related services for the Office and is responsive to the needs of the direct service delivery program staff. Responsibilities include budgeting, purchasing, financial reporting, and federal grant accounting. The Division oversees the implementation and administration of the automated case management system and coordinates the development of application programs. Beginning in fiscal year 2014, the Division absorbed the duties associated with budget and financial management of Office for the Blind.

93

Education and Workforce Development Education Professional Standards Board Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Operations Kentucky Teacher Internship Program Certification TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

7,170,700 7,800 7,178,500 1,839,000 750,000 2,589,000 56,500 187,000 243,500 10,011,000 3,595,200 783,300 3,857,300 8,235,800 7,178,500 858,000 199,300 8,235,800 3,320,300 3,360,300 1,555,200 8,235,800

9,655,300

9,818,500

7,307,100

7,361,300

9,655,300 1,731,000 750,000 2,481,000 44,200 201,400 245,600 12,381,900 3,688,100 783,300 6,204,500 1,270,000 11,945,900 9,655,300 2,089,200 201,400 11,945,900 3,404,900 5,707,500 2,833,500 11,945,900

9,818,500 391,800 750,000 1,141,800 44,200 205,300 249,500 11,209,800 3,855,200 783,300 6,204,500 10,843,000 9,818,500 819,200 205,300 10,843,000 3,528,900 5,707,500 1,606,600 10,843,000

7,307,100 1,731,000 750,000 -600,000 1,881,000 44,200 201,400 245,600 9,433,700 3,454,000 650,100 3,857,300 1,270,000 9,231,400 7,307,100 1,722,900 201,400 9,231,400 3,412,600 3,360,300 2,458,500 9,231,400

7,361,300 158,100 750,000 908,100 44,200 205,300 249,500 8,518,900 3,665,000 794,400 3,857,300 8,316,700 7,361,300 750,100 205,300 8,316,700 3,456,700 3,360,300 1,499,700 8,316,700

Authorized in KRS 161.028, the Education Professional Standards Board (EPSB) is a 17-member body appointed by the Governor to oversee teacher and administrator preparation, internship, and certification. The EPSB is responsible for issuing, suspending, and revoking certificates for Kentucky's more than 50,000 active Kentucky educators, and ensures, via an annual review, that all professional positions in the state's 173 public school districts are appropriately staffed. It is responsible for developing (in cooperation with the Kentucky Department of Education and the Council on Postsecondary Education) a statewide data system for the collection, interpretation, and dissemination of data relative to the quality of educator preparation, supply, demand, and effectiveness. The board establishes performance-based standards for teacher/administrator preparation and induction, and for the accreditation of the 29 preparation programs at Kentucky's public and independent colleges and universities. It oversees the teacher/administrator assessments and the related Title II reporting, and annually publishes the Kentucky Educator Preparation Program Report Card. It administers the Continuing Education Option, in which teachers can use professional development to renew certification and move up in rank. It also administers the National Board Certification Incentive program for teachers enrolled in the program prior to 2013, the supervising teacher stipend program, and alternative routes to certification, including the Troops to Teachers program. The EPSB annually provides support to approximately 2,700 teacher interns, 3,500 supervising teachers, and 500 prospective National Board-certified teachers.

94

Energy and Environment

Energy and Environment Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Continuing Approp.-General Fund Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Secretary Environmental Protection Natural Resources Energy Development and Independence Environmental Quality Commission Kentucky Nature Preserves Commission Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

77,144,600 266,400 742,600 675,400 78,829,000 2,500,000 7,983,500 -2,500,000 7,983,500 29,373,900 20,240,700 71,199,100 -13,500,000 107,313,700 79,600 85,107,800 -9,176,400 76,011,000 300,000 300,000 270,437,200 128,723,700 45,882,600 47,386,800 589,000 7,386,300 21,934,500 251,902,900 73,513,600 7,983,500 94,094,800 76,011,000 300,000 251,902,900 5,921,500 113,186,900 112,653,100 7,323,300 223,400 1,755,100

90,070,400

95,237,600

81,429,100

86,517,100

90,070,400 2,500,000

95,237,600 2,500,000

81,429,100 3,000,000

86,517,100 1,000,000

2,500,000 14,846,900 22,832,100 72,566,800 110,245,800

2,500,000 20,605,300 22,970,600 73,111,800 116,687,700

3,000,000 13,218,900 22,842,100 105,445,700 -42,000,000 99,506,700

1,000,000 8,792,500 22,999,100 103,796,400 -40,000,000 95,588,000

84,761,600 -2,043,500 82,718,100 300,000 300,000 285,834,300 143,689,900 47,194,200 41,345,500 589,000 8,243,200 24,167,200 265,229,000 90,070,400 2,500,000 89,640,500 82,718,100 300,000 265,229,000 7,197,600 119,244,100 116,953,200 6,963,400 299,300 1,904,700

85,120,200 -2,020,700 83,099,500 300,000 300,000 297,824,800 151,322,600 46,979,000 40,393,400 589,000 7,161,400 24,167,200 270,612,600 95,237,600 2,500,000 89,475,500 83,099,500 300,000 270,612,600 7,531,800 121,355,400 120,138,600 6,488,200 312,200 1,979,100

83,817,000 -2,043,500 81,773,500 316,400 316,400 266,025,700 131,397,000 47,438,000 39,830,000 589,000 6,598,400 24,167,200 250,019,600 74,215,500 3,000,000 90,714,200 81,773,500 316,400 250,019,600 5,659,300 115,119,800 112,713,100 4,515,500 288,100 1,486,600

83,624,400 -2,020,700 81,603,700 320,900 320,900 265,029,700 133,822,800 47,365,400 36,717,200 4,487,500 6,160,600 24,167,200 252,720,700 79,449,100 1,000,000 90,347,000 81,603,700 320,900 252,720,700 6,437,100 118,631,900 111,682,300 3,784,200 293,200 1,500,000

95

Public Service Commission TOTAL EXPENDITURES

10,839,600 251,902,900

12,666,700 265,229,000

12,807,300 270,612,600

10,237,200 250,019,600

10,392,000 252,720,700

The Energy and Environment Cabinet is charged with the protection and preservation of land, air and water resources as well as creating efficient, sustainable energy solutions. The Cabinet has three departments: Environmental Protection, Natural Resources, and Energy Development and Independence. Attached for administrative purposes are the Mine Safety Review Commission, the State Nature Preserves Commission, the Environmental Quality Commission, and the Public Service Commission. A Secretary appointed by the Governor heads the Cabinet. The Secretary is responsible for leadership, monitoring trends and shaping a vision for the future of Kentuckys energy platform and environment.

96

Energy and Environment Secretary Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Administrative Hearings Ofc of Sec - Leg & Interg Aff - Gen Coun TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

3,316,300 9,000 3,325,300 775,300 40,300 1,081,400 1,897,000 46,800 1,099,100 -33,800 1,112,100 6,334,400 4,837,700 1,083,800

4,928,900

5,187,100

3,390,600

4,092,400

4,928,900 412,900 40,300 1,004,800 1,458,000

5,187,100 264,400 40,300 1,004,900 1,309,600

3,390,600 412,900 40,300 11,004,800 -10,000,000 1,458,000

4,092,400 264,400 40,300 9,004,900 -8,000,000 1,309,600

1,107,200 -32,100 1,075,100 7,462,000 5,858,400 1,239,200 100,000 7,197,600 4,928,900 1,193,600 1,075,100 7,197,600 793,000 6,404,600 7,197,600

1,077,200 -30,800 1,046,400 7,543,100 6,197,800 1,234,000 100,000 7,531,800 5,187,100 1,298,300 1,046,400 7,531,800 829,000 6,702,800 7,531,800

1,107,200 -32,100 1,075,100 5,923,700 4,727,500 931,800

1,077,200 -30,800 1,046,400 6,448,400 4,850,400 938,700 648,000

5,921,500 3,325,300 1,484,100 1,112,100 5,921,500 718,800 5,202,700 5,921,500

5,659,300 3,390,600 1,193,600 1,075,100 5,659,300 760,700 4,898,600 5,659,300

6,437,100 4,092,400 1,298,300 1,046,400 6,437,100 772,300 5,664,800 6,437,100

The Office of the Secretary formulates and executes Cabinet policies based on administration priorities, state and federal statutes, regulations and legislative initiatives. The Office of the Secretary responds to concerns of the general public, initiates public information and education efforts. The Office of Legislative and Intergovernmental Affairs is responsible for communicating programmatic and policy information to stakeholders including the legislature and local governments. The Office of Legal Services provides litigation and other legal services for the Cabinet. Office of Administrative Hearings conducts administrative appeal hearings and issues recommended orders for review by the Secretary. Policy The Executive Budget includes General Fund debt service in the amount of $648,000 in fiscal year 2016 to support a $5,000,000 bond issue for the Heritage Land Conservation Fund in each fiscal year of the biennium.

97

Energy and Environment Environmental Protection Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Commissioner Water Waste Management Air Quality Environmental Program Support Enforcement Compliance Assistance Petroleum Storage Tank Environmental Assurance Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

20,950,900 81,600 21,032,500 17,615,200 15,637,300 56,388,300 -13,500,000 76,140,800 27,421,500 -4,176,300 23,245,200 300,000 300,000 120,718,500 59,104,000 33,248,700 14,698,200 4,503,400 1,632,600 113,186,900 21,032,500 68,609,200 23,245,200 300,000 113,186,900 560,200 28,027,600 30,534,500 14,636,300 4,828,000 1,610,400 1,684,200 31,305,700 113,186,900

28,724,600

31,016,500

21,417,700

25,069,900

28,724,600 9,159,600 18,055,000 56,499,000 83,713,600 24,713,600 -1,011,200 23,702,400 300,000 300,000 136,440,600 64,620,800 33,925,600 14,511,900 4,553,200 1,632,600 119,244,100 28,724,600 66,517,100 23,702,400 300,000 119,244,100 612,600 30,317,300 31,475,100 16,003,300 5,544,400 1,714,900 1,807,400 31,769,100 119,244,100

31,016,500 17,196,500 18,340,900 56,511,000 92,048,400 24,239,000 -1,008,100 23,230,900 300,000 300,000 146,595,800 67,855,900 33,758,300 14,193,700 3,914,900 1,632,600 121,355,400 31,016,500 66,808,000 23,230,900 300,000 121,355,400 646,700 30,925,900 31,915,500 16,742,400 5,357,000 1,809,800 1,863,000 32,095,100 121,355,400

21,417,700 7,531,600 18,065,000 81,006,900 -32,000,000 74,603,500 24,713,600 -1,011,200 23,702,400 316,400 316,400 120,040,000 60,295,500 34,620,600 14,511,900 4,059,200 1,632,600 115,119,800 21,417,700 69,683,300 23,702,400 316,400 115,119,800 575,700 27,706,700 30,580,200 15,655,500 4,745,700 1,654,500 1,654,000 32,547,500 115,119,800

25,069,900 4,920,200 18,369,400 80,995,300 -32,000,000 72,284,900 24,239,000 -1,008,100 23,230,900 320,900 320,900 120,906,600 61,303,700 34,511,500 14,193,700 3,250,500 3,739,900 1,632,600 118,631,900 25,069,900 70,010,200 23,230,900 320,900 118,631,900 586,900 27,755,500 30,524,400 15,898,500 4,660,600 1,670,600 1,652,900 35,882,500 118,631,900

The Department for Environmental Protection is responsible for the protection of the environment through the prevention, abatement, and control of water, land, and air pollution. The Department also is responsible for the Maxey Flats low-level nuclear waste disposal site.

98

Energy and Environment Environmental Protection Commissioner Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

560,000 560,000 6,000 6,000 566,000 500,400 59,600 200 560,200 560,000 200 560,200

611,500 611,500 5,800 5,800 617,300 645,200 59,400 -92,000 612,600 611,500 1,100 612,600

646,500 646,500 4,700 4,700 651,200 684,600 59,400 -97,300 646,700 646,500 200 646,700

544,600 544,600 5,800 30,000 35,800 580,400 608,300 59,400 -92,000 575,700 544,600 31,100 575,700

355,200 355,200 4,700 231,500 236,200 591,400 624,800 59,400 -97,300 586,900 355,200 231,700 586,900

The Office of the Commissioner, pursuant to KRS 224.10-020(1), provides leadership, policy direction, and management for the Department for Environmental Protection.

99

Energy and Environment Environmental Protection Water Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

9,712,100 9,712,100 3,858,700 1,295,500 408,000 5,562,200 17,302,300 -2,433,000 14,869,300 300,000 300,000 30,443,600 21,544,100 2,739,800 3,453,700 290,000 28,027,600 9,712,100 3,146,200 14,869,300 300,000 28,027,600

12,416,600 12,416,600 2,416,000 1,446,500 413,800 4,276,300 15,259,400 -518,800 14,740,600 300,000 300,000 31,733,500 23,799,600 2,970,500 3,228,200 319,000 30,317,300 12,416,600 2,860,100 14,740,600 300,000 30,317,300

13,333,200 13,333,200 1,416,200 1,597,500 410,800 3,424,500 14,959,900 -517,000 14,442,900 300,000 300,000 31,500,600 24,949,700 2,928,700 2,922,500 125,000 30,925,900 13,333,200 2,849,800 14,442,900 300,000 30,925,900

9,809,700 9,809,700 2,416,000 1,446,500 413,800 4,276,300 15,259,400 -518,800 14,740,600 316,400 316,400 29,143,000 21,555,800 2,842,700 3,228,200 80,000 27,706,700 9,809,700 2,840,000 14,740,600 316,400 27,706,700

10,121,800 10,121,800 1,436,300 1,597,500 410,800 3,444,600 14,959,900 -517,000 14,442,900 320,900 320,900 28,330,200 21,989,700 2,814,800 2,922,500 28,500 27,755,500 10,121,800 2,869,900 14,442,900 320,900 27,755,500

The Division of Water, pursuant to KRS Chapters 146, 149, 151, 200, 223, 224, 224A, 261, 350.029, 350.275 and federal law including PL 92-500 (the Clean Water Act) and 92-523 (the Safe Drinking Water Act), is responsible for administering programs for: ensuring a safe drinking water supply, water quality planning and monitoring, stormwater management, dam safety, groundwater protection, wastewater treatment and sewer line construction, water conservation, and regulation development. The Division administers programs relating to groundwater protection plans, Total Maximum Daily Load Plans, the Non-Point Source 319(h) Grant program, watershed management, dam safety inspections, floodplain management, 401 Water Quality Certifications, water quality standards, water quality monitoring and assessment, Clean Water and Drinking Water State Revolving Loan programs, Kentucky Pollution Discharge Elimination System permitting, confined animal feeding operations compliance, the Wild Rivers program, and logging operations. Policy The Executive Budget includes General Fund debt service in the amount of $28,500 in fiscal year 2016 to support a $600,000 bond issue for the State-Owned Dam Repair program.

100

Energy and Environment Environmental Protection Waste Management Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

5,113,400 5,113,400 3,200,200 3,246,100 14,887,000 21,333,300 6,226,400 -1,070,700 5,155,700 31,602,400 14,182,000 2,452,900 10,641,900 1,625,100 1,632,600 30,534,500 5,113,400 20,265,400 5,155,700 30,534,500

8,519,500 8,519,500 1,067,900 3,440,100 13,160,300 17,668,300 6,234,000 -349,100 5,884,900 32,072,700 15,084,200 2,597,400 10,819,400 1,341,500 1,632,600 31,475,100 8,519,500 17,070,700 5,884,900 31,475,100

9,192,100 9,192,100 597,600 3,340,100 13,161,300 17,099,000 6,203,700 -350,100 5,853,600 32,144,700 15,747,500 2,569,500 10,806,900 1,159,000 1,632,600 31,915,500 9,192,100 16,869,800 5,853,600 31,915,500

5,324,600 5,324,600 1,067,900 3,446,100 15,460,300 19,974,300 6,234,000 -349,100 5,884,900 31,183,800 14,189,300 2,597,400 10,819,400 1,341,500 1,632,600 30,580,200 5,324,600 19,370,700 5,884,900 30,580,200

5,501,000 5,501,000 603,600 3,346,100 15,461,300 19,411,000 6,203,700 -350,100 5,853,600 30,765,600 14,356,400 2,569,500 10,806,900 3,222,000 1,159,000 1,632,600 33,746,400 5,501,000 19,169,800 5,853,600 30,524,400

The Division of Waste Management, pursuant to KRS 224, administers programs that regulate the generation, transportation, storage, treatment, and disposal of all hazardous and solid wastes in the state. Additional responsibilities include resources use and recycling initiatives, technical assistance to counties, and solid waste management districts to facilitate compliance with 401 KAR, Chapter 49. The Division is also responsible for investigation and restoration duties at abandoned hazardous waste disposal sites and citizen education concerning waste management issues. The Division also administers the Voluntary Environmental Remediation Act and the Certified Clean Counties initiative. Pursuant to KRS 224.43-505, the Division manages the Kentucky Pride Fund, which encourages proper solid waste management in Kentucky through waste reduction, recycling, proper closure of abandoned landfills, education, proper collection and disposal of solid waste, elimination of illegal open dumps, and abatement of litter. Maxey Flats, originally operated as a low-level nuclear waste disposal site, was closed in 1977. The Commonwealth of Kentucky assumed ownership and responsibility for the toxic site in 1978, and is responsible for long-term monitoring and maintenance activities of the site in perpetuity. Maxey Flats is funded solely with general funds. The Kentucky Recycling and Marketing Assistance Program (KRMA), an administrative unit of the DWM, was established by KRS 154.12-202 to promote, develop, and sustain an effective recycling infrastructure in Kentucky. KRMA is funded solely with general funds. Policy Notwithstanding KRS 224.43-320, no funds are provided in the above appropriations for the assignment of full-time inspectors to each municipal solid waste landfill operating in the Commonwealth.

101

Energy and Environment Environmental Protection Air Quality Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

788,100 788,100 1,999,900 10,463,900 80,200 12,544,000 2,409,300 -537,900 1,871,400 15,203,500 11,682,900 1,739,300 394,200 819,900 14,636,300 788,100 11,976,800 1,871,400 14,636,300

1,303,800 1,303,800 567,200 12,552,500 82,100 13,201,800 1,845,800 -82,100 1,763,700 16,269,300 13,159,200 1,765,000 259,300 819,800 16,003,300 1,303,800 12,935,800 1,763,700 16,003,300

1,861,800 1,861,800 266,000 12,768,800 79,800 13,114,600 1,845,800 -79,800 1,766,000 16,742,400 13,952,200 1,736,100 259,300 794,800 16,742,400 1,861,800 13,114,600 1,766,000 16,742,400

956,000 956,000 567,200 12,552,500 82,100 13,201,800 1,845,800 -82,100 1,763,700 15,921,500 12,811,400 1,765,000 259,300 819,800 15,655,500 956,000 12,935,800 1,763,700 15,655,500

1,017,900 1,017,900 266,000 12,768,800 79,800 13,114,600 1,845,800 -79,800 1,766,000 15,898,500 13,108,300 1,736,100 259,300 794,800 15,898,500 1,017,900 13,114,600 1,766,000 15,898,500

The Division of Air Quality is responsible for the identification and implementation of measures necessary to achieve and maintain ambient air quality standards as mandated by the federal Clean Air Act and KRS 224.10-100. The Division accomplishes its mission through air quality monitoring, permitting, source inspections and enforcement to ensure compliance with air pollution laws and regulations. The 1990 Clean Air Act Amendments imposed new permitting requirements to protect air quality. Federal law requires that an emission fee be levied on facilities with significant air pollutants to fund the implementation of the new requirements. If a state does not have continued authorization, the fee will be collected by the U.S. Environmental Protection Agency to fund a federal permitting program. The Division has been granted authority to enforce portions of the Clean Air Act in the Commonwealth. Under that authority the Division operates the Title V Operating Permit Program, and costs associated therewith are funded through emission fees assessed pursuant to the Clean Air Act and KRS 224.20-050.

102

Energy and Environment Environmental Protection Environmental Program Support Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

3,599,400 81,600 3,681,000 159,200 150,000 656,700 965,900 208,300 208,300 4,855,200 3,334,000 1,317,400 8,400 168,200 4,828,000 3,681,000 938,700 208,300 4,828,000

4,476,700

4,414,300

3,600,100

3,630,200

4,476,700 27,200 180,000 685,700 892,900 174,800 174,800 5,544,400 3,764,800 1,335,700 5,000 438,900 5,544,400 4,476,700 892,900 174,800 5,544,400

4,414,300

3,600,100 27,200 184,000 759,600 970,800 174,800 174,800 4,745,700 3,221,000 1,335,800 5,000 183,900 4,745,700 3,600,100 970,800 174,800 4,745,700

3,630,200

180,000 732,700 912,700 30,000 30,000 5,357,000 3,840,100 1,328,500 5,000 183,400 5,357,000 4,414,300 912,700 30,000 5,357,000

202,500 797,900 1,000,400 30,000 30,000 4,660,600 3,143,700 1,328,500 5,000 183,400 4,660,600 3,630,200 1,000,400 30,000 4,660,600

The Division of Environmental Program Support provides support to the Department in the areas of laboratory services, personnel, budget, information technology and overall administration. The Division provides centralized laboratory testing for the Department. The Division also supports and directs the activities of the Environmental Response Team and is responsible for the cabinets twenty-four (24) hour environmental response line. Activities are conducted pursuant to KRS 224.10-100(7).

103

Energy and Environment Environmental Protection Enforcement Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

808,700 808,700 121,500 417,100 538,600 355,000 -37,300 317,700 1,665,000 1,447,100 163,300 1,610,400 808,700 484,000 317,700 1,610,400

939,000 939,000 54,600 423,400 478,000 337,800 -20,100 317,700 1,734,700 1,552,900 162,000 1,714,900 939,000 458,200 317,700 1,714,900

1,047,600 1,047,600 19,800 424,700 444,500 337,800 -20,100 317,700 1,809,800 1,647,800 162,000 1,809,800 1,047,600 444,500 317,700 1,809,800

878,600 878,600 54,600 423,400 478,000 337,800 -20,100 317,700 1,674,300 1,492,500 162,000 1,654,500 878,600 458,200 317,700 1,654,500

908,400 908,400 19,800 424,700 444,500 337,800 -20,100 317,700 1,670,600 1,508,600 162,000 1,670,600 908,400 444,500 317,700 1,670,600

The Division of Enforcement, pursuant to KRS 224.10-050, is responsible for effective and timely enforcement of Kentuckys environmental laws pertaining to air, waste, and water. The Division carries out enforcement actions against corporations and individuals who are out of compliance with environmental law and/or regulations.

104

Energy and Environment Environmental Protection Compliance Assistance Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

369,200 369,200 244,600 321,800 175,900 742,300 920,200 -97,400 822,800 1,934,300 1,239,800 244,400 200,000 1,684,200 369,200 492,200 822,800 1,684,200

457,500 457,500 250,100 303,200 175,900 729,200 861,800 -41,100 820,700 2,007,400 1,337,200 244,200 200,000 26,000 1,807,400 457,500 529,200 820,700 1,807,400

521,000 521,000 200,000 321,800 175,900 697,700 861,800 -41,100 820,700 2,039,400 1,419,000 244,000 200,000 1,863,000 521,000 521,300 820,700 1,863,000

304,100 304,100 250,100 303,200 175,900 729,200 861,800 -41,100 820,700 1,854,000 1,183,800 244,200 200,000 26,000 1,654,000 304,100 529,200 820,700 1,654,000

313,400 313,400 200,000 321,800 175,900 697,700 861,800 -41,100 820,700 1,831,800 1,208,900 244,000 200,000 1,652,900 313,400 518,800 820,700 1,652,900

The Division of Compliance Assistance supports the Cabinets environmental mission by providing training and technical assistance to regulated facilities, helping communities in brownfield redevelopment efforts, certifying environmental professionals and encouraging environmental leadership.

105

Energy and Environment Environmental Protection Petroleum Storage Tank Environmental Assurance Fund Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

3,222,000 3,222,000 8,025,100 160,000 39,763,400 -13,500,000 34,448,500 34,448,500 5,173,700 24,532,000 1,600,000 31,305,700 4,770,800 132,700 41,557,800 46,461,300 46,461,300 5,277,700 24,791,400 1,700,000 31,769,100 14,692,200 132,700 41,525,800 56,350,700 56,350,700 5,615,000 24,730,100 1,750,000 32,095,100 3,142,800 132,700 63,661,800 -32,000,000 34,937,300 34,937,300 5,233,400 25,614,100 1,700,000 32,547,500 2,389,800 132,700 63,413,400 -32,000,000 33,935,900 37,157,900 5,363,300 25,597,200 1,700,000 32,660,500 3,222,000 32,660,500 35,882,500

31,305,700 31,305,700

31,769,100 31,769,100

32,095,100 32,095,100

32,547,500 32,547,500

The Petroleum Storage Tank Environmental Assurance Fund (PSTEAF), pursuant to KRS Chapter 224.60, assists owners and operators of underground storage tanks to meet federal environmental mandates and provides reimbursement for eligible cleanup costs and third party damages in the event of a release into the environment. Pursuant to KRS 224.60-130, the Fund is managed by the Department for Environmental Protection, Division of Waste Management. Policy The Executive Budget provides General Fund debt service in the amount of $3,222,000 in fiscal year 2016 to support a $25,000,000 bond issue for the Petroleum Storage Tank Environmental Assurance Fund in each fiscal year of the biennium for this program. The Executive Budget includes these bond funds within the operating budget of PSTEAF in fiscal year 2015 and fiscal year 2016 and the money will be used to make PSTEAF claim payments.

106

Energy and Environment Natural Resources Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Commissioner Forestry Technical and Administrative Support Conservation Oil and Gas Mine Permits Mine Reclamation and Enforcement Abandoned Mine Lands Bond Pool Reclamation Fund Reclamation Guaranty Fund Abandoned Mine Land Reclamation Projects Mine Safety Review Commission Mine Safety and Licensing TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

35,528,700 140,600 742,600 36,411,900 2,500,000 7,983,500 -2,500,000 7,983,500 5,688,000 4,073,900 10,989,900 20,751,800 55,414,300 -4,782,800 50,631,500 115,778,700 53,328,700 9,355,200 26,846,000 2,821,300 20,301,900 112,653,100 36,411,900 7,983,500 17,626,200 50,631,500 112,653,100 887,600 16,544,400 686,300 12,382,000 1,965,400 6,382,400 13,073,500 17,001,000 545,000 558,500 28,242,400 175,500 14,209,100 112,653,100

40,968,100

43,321,100

37,215,100

37,911,800

40,968,100 2,500,000

43,321,100 2,500,000

37,215,100 3,000,000

37,911,800 1,000,000

2,500,000 3,125,600 4,474,200 11,036,100 18,635,900 57,885,700 -817,300 57,068,400 119,172,400 59,477,600 9,529,700 22,046,300 3,365,000 22,534,600 116,953,200 40,968,100 2,500,000 16,416,700 57,068,400 116,953,200 980,500 17,152,500 845,500 7,355,800 2,309,400 7,307,800 14,718,500 17,923,000 545,000 613,100 31,742,400 186,900 15,272,800 116,953,200

2,500,000 2,219,200 4,326,600 11,586,900 18,132,700 58,808,600 -816,800 57,991,800 121,945,600 62,717,800 9,646,200 22,018,500 3,221,500 22,534,600 120,138,600 43,321,100 2,500,000 16,325,700 57,991,800 120,138,600 1,034,600 17,692,800 856,200 7,453,600 2,436,600 7,673,700 15,394,900 18,372,600 545,000 636,800 31,742,400 194,700 16,104,700 120,138,600

3,000,000 3,125,600 4,474,200 11,034,500 18,634,300 56,908,600 -817,300 56,091,300 114,940,700 55,428,100 9,664,900 22,546,300 2,539,200 22,534,600 112,713,100 37,215,100 3,000,000 16,406,700 56,091,300 112,713,100 838,000 15,760,400 797,100 7,338,500 2,067,400 7,078,400 13,218,100 17,849,400 545,000 610,400 31,742,400 176,000 14,692,000 112,713,100

1,000,000 2,227,600 4,326,600 11,570,200 18,124,400 57,269,900 -816,800 56,453,100 113,489,300 56,503,300 9,705,200 20,518,500 2,420,700 22,534,600 111,682,300 37,911,800 1,000,000 16,317,400 56,453,100 111,682,300 840,300 15,880,100 784,800 5,365,000 2,107,700 7,197,700 13,432,700 18,037,600 545,000 625,500 31,742,400 178,100 14,945,400 111,682,300

107

The Department for Natural Resources mission is to preserve, protect, and enhance the Commonwealths natural land resources. The Department oversees activities and programs related to forestry, conservation, mining, oil and gas, and land preservation. The Department, through its divisions and partnerships, provides technical assistance, educational programs, and funding to assist the general public, landowners, institutions, industries, and communities in conserving and sustaining Kentuckys natural resources. In addition, the Department is responsible for the inspection of timber harvests, mining operations, and oil and gas wells to ensure compliance with laws that protect the public, the environment, and Kentuckys coal miners. Policy The Executive Budget includes General Fund of $742,600 in fiscal year 2014, $750,000 in fiscal year 2015 and $750,000 in fiscal year 2016 to cover cumulative and ongoing operating shortfalls in the department. A significant part of these shortfalls is due to declines in Restricted Fund revenue (permit fees in the Division of Oil and Gas and acreage fees in Mine Permits) as well as reductions in federal funding (Small Operators Assistance Grant in Mine Permits and the Mine Health and Safety grant in the Office of Mine Safety and Licensing).

108

Energy and Environment Natural Resources Commissioner Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

420,300 420,300 17,300 450,000 467,300 887,600 797,800 89,800 887,600 420,300 467,300 887,600

530,500 530,500

584,600 584,600

388,000 388,000

390,300 390,300

450,000 450,000 980,500 890,500 90,000 980,500 530,500 450,000 980,500

450,000 450,000 1,034,600 944,600 90,000 1,034,600 584,600 450,000 1,034,600

450,000 450,000 838,000 746,900 91,100 838,000 388,000 450,000 838,000

450,000 450,000 840,300 758,100 82,200 840,300 390,300 450,000 840,300

The Office of the Commissioner provides leadership, policy direction, and management for the Department for Natural Resources. The Commissioner provides guidance in policy and program implementation for the sustainability of Kentuckys natural resources and the safety of Kentuckys miners. The Office also provides administrative oversight for the Kentucky Heritage Land Conservation Fund Board and the Biodiversity Council.

109

Energy and Environment Natural Resources Forestry Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Current Year Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

10,199,200 354,100 10,553,300 286,300 854,500 1,654,200 2,795,000 4,400,200 -1,035,900 3,364,300 16,712,600 10,177,200 2,503,000 1,493,200 2,371,000 16,544,400 10,553,300 2,626,800 3,364,300 16,544,400

12,176,700 12,176,700 168,200 1,195,800 32,000 1,396,000 3,945,000 -32,000 3,913,000 17,485,700 11,349,200 2,608,000 930,600 2,264,700 17,152,500 12,176,700 1,062,800 3,913,000 17,152,500

12,818,500 12,818,500 333,200 1,036,300 31,800 1,401,300 3,925,000 -31,800 3,893,200 18,113,000 11,961,000 2,665,000 920,600 2,146,200 17,692,800 12,818,500 981,100 3,893,200 17,692,800

10,784,600 10,784,600 168,200 1,195,800 32,000 1,396,000 3,945,000 -32,000 3,913,000 16,093,600 10,184,500 2,906,400 930,600 1,738,900 15,760,400 10,784,600 1,062,800 3,913,000 15,760,400

11,005,800 11,005,800 333,200 1,036,300 31,800 1,401,300 3,925,000 -31,800 3,893,200 16,300,300 10,375,700 2,963,400 920,600 1,620,400 15,880,100 11,005,800 981,100 3,893,200 15,880,100

In accordance with KRS 149 the Division of Forestry provides technical assistance on sound forest management practices; provides forest stewardship assistance to private landowners; assists timber operators and wood-using industries; grows and distributes tree seedlings at low cost for timber production; and provides urban and community forestry technical assistance to provide sustainability of the Commonwealths 11.9 million acres of forestland. The Division enforces the Kentucky Forest Conservation Act (149.330 149.355); the Division is responsible for inspecting logging operations and enforcing compliance with the Kentucky Master Logger Program and Best Management Practices to protect water quality. In addition, the Division maintains an inventory of Kentuckys forests. The Division provides administrative oversight to the Forestry Best Management Practice Board. The Kentucky Division of Forestry is mandated to provide wildland fire protection for the Commonwealth. The Division has established a statewide system of wildland fire prevention, detection and suppression. Policy General Fund baseline resources of $240,000 annually are provided to the Division for emergency fire suppression costs. Language contained in the appropriations bill declares that expenditures in excess of this amount are a necessary government expense and are to be paid from the General Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund (KRS 48.705).

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Energy and Environment Natural Resources Technical and Administrative Support Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

48,400 48,400 32,100 654,200 686,300 686,300 508,600 117,700 60,000 686,300

71,400 71,400

797,100 797,100 845,500 628,300 132,200 60,000 25,000 845,500 48,400 797,100 845,500

784,800 784,800 856,200 664,000 132,200 60,000 856,200 71,400 784,800 856,200

797,100 797,100 797,100 623,900 113,200 60,000 797,100

784,800 784,800 784,800 611,600 113,200 60,000 784,800

686,300 686,300

797,100 797,100

784,800 784,800

The Division of Technical and Administrative Support, pursuant to KRS 224.10-020, provides general support to all divisions and programs in the Department for Natural Resources. The Division is responsible for the development, coordination and implementation of all administrative processes within the Department including fiscal affairs, human resources, property management, purchasing, and state and federal program administration. The Division provides technical expertise to develop and implement state and federal regulations relating to surface mining, abandoned mine lands, oil and gas conservation, mine safety, forestry, and conservation. The Division also coordinates information technology processes and applications within the Department in accordance with cabinet, state, and federal guidelines. The Kentucky Heritage Land Conservation Fund is attached to and administered by the Division pursuant to KRS 146.570.

111

Energy and Environment Natural Resources Conservation Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

2,272,900 2,272,900 2,500,000 7,983,500 -2,500,000 7,983,500 2,667,500 165,800 632,200 3,465,500 961,800 -64,700 897,100 14,619,000 1,349,800 192,100 10,840,100 12,382,000 2,272,900 7,983,500 1,228,500 897,100 12,382,000

2,606,600 2,606,600 2,500,000

2,729,700 2,729,700 2,500,000

2,132,700 2,132,700 3,000,000

2,132,700 2,132,700 1,000,000

2,500,000 2,237,000 170,000 633,100 3,040,100 928,900 -2,600 926,300 9,073,000 1,665,500 219,900 5,470,400 7,355,800 2,606,600 2,500,000 1,322,900 926,300 7,355,800

2,500,000 1,717,200 170,000 633,200 2,520,400 931,600 -2,700 928,900 8,679,000 1,763,100 220,100 5,470,400 7,453,600 2,729,700 2,500,000 1,295,000 928,900 7,453,600

3,000,000 2,237,000 170,000 633,100 3,040,100 893,900 -2,600 891,300 9,064,100 1,167,400 200,700 5,970,400 7,338,500 2,132,700 3,000,000 1,314,500 891,300 7,338,500

1,000,000 1,725,600 170,000 633,200 2,528,800 931,600 -2,700 928,900 6,590,400 1,193,900 200,700 3,970,400 5,365,000 2,132,700 1,000,000 1,303,400 928,900 5,365,000

The Division of Conservation provides assistance to Kentuckys 121 conservation districts in the development and implementation of sound conservation programs to protect, enhance, and develop the Commonwealths natural resources. The Division works with the conservation districts to provide technical and financial assistance, including equipment loans, to Kentucky landowners for conservation and water quality-related work on Kentucky lands. The Division administers the Kentucky Soil Erosion and Water Quality Cost Share Program and the Kentucky Soil Stewardship Program to help agricultural operations protect and preserve Kentuckys soil and water resources. The Division provides administrative services to the State Soil and Water Conservation Commission. The Division and the conservation districts provide educational opportunities to promote conservation of Kentuckys natural resources. These programs mitigate soil erosion, and other environmental problems associated with agricultural, woodland and construction operations which impact water quality. Policy The Executive Budget provides Phase I Tobacco Settlement Funds of $3,000,000 in fiscal year 2015 and $1,000,000 in fiscal year 2016 for the state share of the Environmental Stewardship Program.

112

Energy and Environment Natural Resources Oil and Gas Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,178,200 120,800 88,600 1,387,600 33,300 544,500 577,800 1,965,400 1,591,900 301,000 72,500 1,965,400 1,387,600 577,800 1,965,400

1,764,900

1,892,100

1,522,900

1,563,200

1,764,900

1,892,100

1,522,900

1,563,200

544,500 544,500 2,309,400 1,925,500 311,400 72,500 2,309,400 1,764,900 544,500 2,309,400

544,500 544,500 2,436,600 2,043,000 321,100 72,500 2,436,600 1,892,100 544,500 2,436,600

544,500 544,500 2,067,400 1,747,700 247,200 72,500 2,067,400 1,522,900 544,500 2,067,400

544,500 544,500 2,107,700 1,788,000 247,200 72,500 2,107,700 1,563,200 544,500 2,107,700

The Division of Oil and Gas, pursuant to KRS Chapter 353, is responsible for the conservation of oil and gas resources of the Commonwealth and for the protection of correlative rights of mineral owners. The Divisions mission is to prevent waste and unnecessary loss, to encourage the maximum recovery of oil and gas, to promote safety, and to prevent contamination of underground water resources. The Division is also charged with the collection of geological data obtained from the drilling of oil and gas wells for deposit in the Kentucky Geological Survey whose records are for public use. The Division is also responsible for the plugging of abandoned wells.

113

Energy and Environment Natural Resources Mine Permits Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Current Year Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,307,500 299,900 1,607,400 41,300 1,782,400 -158,900 1,664,800 3,175,500 -53,400 3,122,100 6,394,300 5,110,800 750,100 521,500 6,382,400 1,607,400 1,652,900 3,122,100 6,382,400

1,758,700 1,758,700 11,900 1,799,900 34,600 1,846,400 3,879,200 -176,500 3,702,700 7,307,800 6,191,400 675,000 441,400 7,307,800 1,758,700 1,846,400 3,702,700 7,307,800

1,937,400 1,937,400

1,643,900 1,643,900 11,900 1,799,900 34,600 1,846,400 3,764,600 -176,500 3,588,100 7,078,400 5,960,700 676,300 441,400 7,078,400 1,643,900 1,846,400 3,588,100 7,078,400

1,702,400 1,702,400

1,811,800 34,600 1,846,400 4,066,400 -176,500 3,889,900 7,673,700 6,557,300 675,000 441,400 7,673,700 1,937,400 1,846,400 3,889,900 7,673,700

1,811,800 34,600 1,846,400 3,825,400 -176,500 3,648,900 7,197,700 6,080,000 676,300 441,400 7,197,700 1,702,400 1,846,400 3,648,900 7,197,700

The Division of Mine Permits, pursuant to KRS 350 and 405 KAR Chapter 8, reviews all surface mining permit applications in accordance with Kentucky law and the federal Surface Mining Control and Reclamation Act. The Division, pursuant to KRS 350.450 and 405 KAR 7:080, administers the federal Small Operator Assistance Program and pursuant to KRS 350.610, the Lands Unsuitable for Mining program. The Division, pursuant to KRS 350.060(13) and 405 KAR 8:040, also reviews underground mining permit applications to determine the surface effects of such operations.

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Energy and Environment Natural Resources Mine Reclamation and Enforcement Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Other Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

6,291,100 210,800 6,501,900 44,800 97,900 54,600 197,300 6,457,100 -79,600 6,377,500 13,076,700 10,295,500 2,506,900 271,100 13,073,500 6,501,900 194,100 6,377,500 13,073,500

7,279,000 7,279,000 3,200 95,200 53,300 151,700 7,549,300 -261,500 7,287,800 14,718,500 11,394,300 2,481,400 217,800 625,000 14,718,500 7,279,000 151,700 7,287,800 14,718,500

7,644,400 7,644,400

6,531,400 6,531,400 3,200 95,200 53,300 151,700 6,796,500 -261,500 6,535,000 13,218,100 10,173,700 2,476,600 217,800 350,000 13,218,100 6,531,400 151,700 6,535,000 13,218,100

6,650,300 6,650,300

95,200 53,300 148,500 7,863,100 -261,100 7,602,000 15,394,900 12,096,300 2,473,600 200,000 625,000 15,394,900 7,644,400 148,500 7,602,000 15,394,900

95,200 53,300 148,500 6,895,000 -261,100 6,633,900 13,432,700 10,413,900 2,468,800 200,000 350,000 13,432,700 6,650,300 148,500 6,633,900 13,432,700

The Division of Mine Reclamation and Enforcement, pursuant to KRS 350, develops policies and procedures for reclamation and enforcement programs related to coal and non-coal minerals. The Division reviews permit applications for non-coal mineral operations pursuant to KRS 350.028 and 405 KAR 5:032. The Division conducts inspection programs to carry out these policies and procedures in accordance with applicable federal and state statutes. Pursuant to KRS 351 and 805 KAR Chapter 4, the Division is charged with ensuring the safety and regulation of all blasting operations within the Commonwealth, which includes the use, storage or transportation of explosives. The Division investigates citizens complaints relating to surface mining and blasting activities.

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Energy and Environment Natural Resources Abandoned Mine Lands Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,357,900 12,400 7,447,800 8,818,100 8,662,700 -326,800 8,335,900 17,154,000 10,328,300 937,600 18,000 450,300 5,266,800 17,001,000 8,665,100 8,335,900 17,001,000

153,000 12,400 8,746,800 8,912,200 9,506,000 -333,700 9,172,300 18,084,500 11,248,500 940,700 18,000 450,300 5,265,500 17,923,000 8,750,700 9,172,300 17,923,000

161,500 12,400 8,760,500 8,934,400 9,933,300 -333,700 9,599,600 18,534,000 11,698,100 940,700 18,000 450,300 5,265,500 18,372,600 8,773,000 9,599,600 18,372,600

153,000 12,400 8,746,500 8,911,900 9,432,700 -333,700 9,099,000 18,010,900 11,174,900 940,700 18,000 450,300 5,265,500 17,849,400 8,750,400 9,099,000 17,849,400

161,500 12,400 8,749,400 8,923,300 9,609,400 -333,700 9,275,700 18,199,000 11,363,100 940,700 18,000 450,300 5,265,500 18,037,600 8,761,900 9,275,700 18,037,600

The Division of Abandoned Mine Lands administers abandoned or unreclaimed land reclamation activities on previously surfacemined land or land used in connection with surface mining under Title IV of Public Law 95-87 and/or KRS 350.550 to KRS 350.597. The division administers a bond forfeiture reclamation program; bonds forfeited to the commonwealth due to the failure to mine and reclaim a coal mine site to the standards specified by the mine permit are used by the state to reclaim the site for which the bond was posted. The division administers a water supply replacement program which extends waterlines into areas where drinking water has been contaminated by past mining. The division budgets up to 30 percent of its annual funding on waterline projects each year. Federal funds for this program are provided from federal tax levies imposed under Public Law 95-87 on all coal mined since August 3, 1977. Approximately 150,000 acres of abandoned mine lands in Kentucky are eligible for reclamation. All state and partial federal project contracts are administered by this agency.

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Energy and Environment Natural Resources Bond Pool Reclamation Fund Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,097,300 1,097,300 1,097,300 545,000 545,000 545,000 545,000

552,300 552,300 552,300 545,000 545,000 545,000 545,000

7,300 537,700 545,000 545,000 545,000 545,000 545,000 545,000

552,300 552,300 552,300 545,000 545,000 545,000 545,000

7,300 537,700 545,000 545,000 545,000 545,000 545,000 545,000

The Abandoned Mine Lands Bond Pool Reclamation Fund, pursuant to KRS 350.595, provides the additional money necessary to reclaim permitted mine areas. In the event that an entire bond is not needed to complete the required reclamation on a permit, the remaining balance is deposited into the Fund.

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Energy and Environment Natural Resources Reclamation Guaranty Fund Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

10,500 255,800 266,300 303,200 -11,000 292,200 558,500 332,500 56,000 170,000 558,500 266,300 292,200 558,500

289,200 289,200 334,900 -11,000 323,900 613,100 386,600 56,500 170,000 613,100 289,200 323,900 613,100

301,000 301,000 346,800 -11,000 335,800 636,800 410,300 56,500 170,000 636,800 301,000 335,800 636,800

287,900 287,900 333,500 -11,000 322,500 610,400 383,900 56,500 170,000 610,400 287,900 322,500 610,400

295,400 295,400 341,100 -11,000 330,100 625,500 399,000 56,500 170,000 625,500 295,400 330,100 625,500

The Office of Reclamation Guaranty Fund, pursuant to KRS 350.500-350.521, provides the additional money necessary to reclaim permitted mine areas. In the event a permit-specific reclamation bond is insufficient to complete reclamation on the permitted mine site, the Fund provides financial assistance to the cabinet for reclamation.

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Energy and Environment Natural Resources Abandoned Mine Land Reclamation Projects Revised FY 2014 SOURCE OF FUNDS Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Grants Loans Benefits # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

31,231,400 -2,989,000 28,242,400 28,242,400 13,207,300 15,035,100 28,242,400 28,242,400 28,242,400

31,742,400 31,742,400 31,742,400 14,473,300 17,269,100 31,742,400 31,742,400 31,742,400

31,742,400 31,742,400 31,742,400 14,473,300 17,269,100 31,742,400 31,742,400 31,742,400

31,742,400 31,742,400 31,742,400 14,473,300 17,269,100 31,742,400 31,742,400 31,742,400

31,742,400 31,742,400 31,742,400 14,473,300 17,269,100 31,742,400 31,742,400 31,742,400

The Abandoned Mine Lands (AML) Reclamation Projects program in the Department for Natural Resources receives 100 percent federal funding for the reclamation of certain mine sites that have been abandoned or left unreclaimed under Title IV of Public Law 95-87 or KRS 350. If the Commonwealth does not maintain an approved AML Reclamation program, federal funds allocated for reclamation projects within Kentucky may be reallocated to other coal-producing states. The Department reclaims abandoned mine sites through a priority ranking system based on human health and safety considerations.

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Energy and Environment Natural Resources Mine Safety Review Commission Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

154,800 19,800 174,600 900 900 175,500 157,600 17,900 175,500 174,600 900 175,500

186,900

194,700

176,000

178,100

186,900

194,700

176,000

178,100

186,900 169,000 17,900 186,900 186,900 186,900

194,700 176,800 17,900 194,700 194,700 194,700

176,000 158,100 17,900 176,000 176,000 176,000

178,100 160,200 17,900 178,100 178,100 178,100

The Mine Safety Review Commission, pursuant to KRS Chapter 351, protects the health and safety of coal miners by ensuring the enforcement of mine safety regulations. Its three members, appointed by the governor, conduct hearings on drug and safety violations and impose penalties for serious violations. The Commission has the power to probate, revoke or suspend a mines license or an individual miners certification and fine certified miners up to the equivalent of wages for ten working days for their first offense. The Commission is an independent agency attached to the Energy and Environment Cabinet for administrative purposes only.

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Energy and Environment Natural Resources Mine Safety and Licensing Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Other Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Mine Safety and LicensingAdministrative Support Safety Inspection and Licensing Safety Analysis, Training and Certification TOTAL EXPENDITURES 14,209,100 12,133,700 1,883,100 192,300 14,209,100 13,493,900 715,200 14,209,100 896,900 8,542,000 4,770,200 14,209,100 15,272,800 13,083,800 1,996,700 192,300 15,272,800 14,616,400 656,400 15,272,800 862,800 9,378,400 5,031,600 15,272,800 16,104,700 13,858,300 2,054,100 192,300 16,104,700 15,448,300 656,400 16,104,700 907,400 9,897,800 5,299,500 16,104,700 14,692,000 12,561,400 1,938,300 192,300 14,692,000 14,035,600 656,400 14,692,000 818,300 8,900,900 4,972,800 14,692,000 14,945,400 12,814,800 1,938,300 192,300 14,945,400 14,289,000 656,400 14,945,400 832,600 9,044,400 5,068,400 14,945,400 Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

13,704,700 -210,800 13,493,900 98,800 616,400 715,200 222,400 -222,400

14,616,400 14,616,400

15,448,300 15,448,300

14,035,600 14,035,600

14,289,000 14,289,000

656,400 656,400

656,400 656,400

656,400 656,400

656,400 656,400

The Office of Mine Safety and Licensing, pursuant to KRS Chapter 351, is responsible for the regulation of mining practices to prevent injuries and fatalities in underground, strip, and auger mines. The Office trains, tests, and licenses mine personnel. Mine safety instructors provide general and technical safety training and education courses to mine personnel to maintain an adequate number of certified and qualified personnel for the mining industry. Moreover, the agency encourages safe work habits of coal miners by providing quality on-the-job, one-on-one safety training for surface and underground miners. The Office licenses all underground and surface coal mines in the Commonwealth. It issues permits for specific mining methods including the use of diesel equipment, roof control, extended cuts, mining near oil and gas wells, and additional mine openings. The agency inspects mines and investigates illegal mining operations. The Office develops and maintains a database to track information about each mining operation. The database includes the number of miners employed by the mine, type of operations, type of workers compensation insurance, and the number and type of mining law violations, closures, and abatements for each mine and mine operator. A second database provides information on all individuals certified as surface mine foremen, surface mine safety analysts, underground mine foremen, underground mine instructors, underground mine inspectors, and electrical inspectors. The Office administers drug testing of all miners as a condition of certification. A data base is maintained on the status of those miners whose certifications have been revoked as a result of testing positive for drugs. The Office provides administrative oversight of the Kentucky Mining Board. Federal Law 30 CFR, Section 49, requires mine rescue teams to be stationed within one hour of each active coal mine and to be trained and knowledgeable about each mine the team covers. The Commonwealth, through the Office of Mine Safety and Licensing, provides state-sponsored mine rescue teams to help Kentuckys mines comply with this federal regulation.
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Policy Included in the above General Fund appropriation is $7,552,000 for fiscal year 2015 and fiscal year 2016 to provide statesponsored mine rescue teams pursuant to KRS 351.191 as well as for staff including mine inspectors, mine safety analysts, and mine safety instructors to comply with the increased inspection and training requirements of KRS 351.140 and KRS 351.242. The originating source of this General Fund money is the Coal Severance Tax.

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Energy and Environment Energy Development and Independence Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Energy Development and Independence TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,347,800 3,600 1,351,400 4,825,900 16,500 2,251,600 7,094,000 11,300 913,400 -181,600 743,100 9,188,500 1,459,800 247,400 5,616,100 7,323,300 1,351,400 5,228,800 743,100 7,323,300 7,323,300 7,323,300

1,421,300

1,445,000

1,344,000

1,356,600

1,421,300 1,865,200 16,500 3,751,400 5,633,100

1,445,000 713,000 16,500 3,733,500 4,463,000

1,344,000 1,865,200 16,500 1,835,900 3,717,600

1,356,600 1,168,100 16,500 1,657,300 2,841,900

803,400 -181,400 622,000 7,676,400 2,105,000 281,300 4,577,100 6,963,400 1,421,300 4,920,100 622,000 6,963,400 6,963,400 6,963,400

743,700 -163,500 580,200 6,488,200 2,233,000 282,400 3,972,800 6,488,200 1,445,000 4,463,000 580,200 6,488,200 6,488,200 6,488,200

803,400 -181,400 622,000 5,683,600 1,567,800 286,100 2,661,600 4,515,500 1,344,000 2,549,500 622,000 4,515,500 4,515,500 4,515,500

743,700 -163,500 580,200 4,778,700 1,601,500 286,100 1,896,600 3,784,200 1,356,600 1,847,400 580,200 3,784,200 3,784,200 3,784,200

The Department for Energy Development and Independence is comprised of the following divisions: Division of Efficiency and Conservation; Division of Renewable Energy; Division of Biofuels; Division of Energy Generation Transmission and Distribution; Division of Carbon Management; and Division of Fossil Energy Development. The Department oversees the development and implementation of Kentuckys comprehensive energy strategy, Intelligent Energy Choices for Kentuckys Future. The Department provides leadership to enhance the benefits of energy efficiency and alternative energy through supporting awareness, technology development, energy preparedness, partnerships and resource development. The Department also enhances the economic opportunities and benefits to Kentuckys citizens and industry by expanding current markets and developing market opportunities for Kentucky coal, natural gas, petroleum, oil shale, tar sands, liquid and gaseous fuels from coal, and chemicals from coal. To the extent that funding is available the Department administers grant programs to support energy-related research, development and demonstration, including supporting multi-state cooperative regional partnerships and research initiatives. The Department develops and implements programs for the production, utilization and conservation of energy in a manner that meets basic needs while maintaining Kentuckys economic growth at the highest feasible level. The Department enters into agreements, administers grant programs and serves as a liaison with the federal government and other states in matters relating to energy; and participates in the review of applications and, upon request of the Kentucky Economic Development Finance Authority, assists in monitoring tax incentive agreements as provided in Subchapter 27 of KRS 154. Policy The Executive Budget includes Restricted Funds of $1,584,500 in fiscal year 2015 and $1,423,800 in fiscal year 2016 for

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research grants. These funds originate from the Local Government Economic Development Fund Multi-county Fund (coal severance tax). The Executive Budget includes $400,000 in each fiscal year to be paid to the State Treasury and credited to the Department for Energy Development and Independence for the purpose of public education of coal-related issues pursuant to KRS 132.020(5).

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Energy and Environment Environmental Quality Commission Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Environmental Quality Commission TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

299,300 299,300 17,000 206,400 223,400 223,400 183,900 39,500 223,400 299,300 258,600 40,700 299,300 299,300 223,400 223,400 223,400 223,400 299,300 299,300 299,300

312,200 312,200

288,100 288,100 312,200 271,500 40,700 312,200 312,200 288,100 312,200 312,200 312,200 288,100 288,100 288,100 288,100 247,400 40,700 288,100

293,200 293,200 293,200 252,500 40,700 293,200

293,200 293,200 293,200 293,200

Pursuant to KRS 224.01-100 to 224.01-115, the Environmental Quality Commission is an independent citizen board with seven members representing various interests and geographic areas of the state. The Commission serves as a public forum for discussion and resolution of environmental issues. The Commission advises the Governor and the Energy and Environment Cabinet on environmental rules, regulations, policies, plans, and procedures. The Environmental Quality Commission is administratively attached to the Energy and Environment Cabinet.

125

Energy and Environment Kentucky Nature Preserves Commission Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Kentucky Nature Preserves Commission TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,000,900 4,000 1,004,900 295,600 461,700 81,500 838,800 52,100 -1,900 50,200 1,893,900 1,256,700 210,300 226,500 61,600 1,755,100 1,004,900 700,000 50,200 1,755,100 1,755,100 1,755,100

1,484,600

1,571,500

1,061,700

1,086,400

1,484,600 138,800 235,100 75,500 449,400 51,700 -1,500 50,200 1,984,200 1,503,200 266,300 110,200 25,000 1,904,700 1,484,600 369,900 50,200 1,904,700 1,904,700 1,904,700

1,571,500 79,500 235,300 75,500 390,300 51,700 -1,500 50,200 2,012,000 1,594,200 251,500 108,400 25,000 1,979,100 1,571,500 357,400 50,200 1,979,100 1,979,100 1,979,100

1,061,700 138,800 235,100 75,500 449,400 56,500 -1,500 55,000 1,566,100 1,196,900 179,500 110,200 1,486,600 1,061,700 369,900 55,000 1,486,600 1,486,600 1,486,600

1,086,400 79,500 235,300 75,500 390,300 57,700 -1,500 56,200 1,532,900 1,222,800 168,800 108,400 1,500,000 1,086,400 357,400 56,200 1,500,000 1,500,000 1,500,000

Pursuant to KRS 146.410-146.530, the Kentucky State Nature Preserves Commissions mission is two-fold: to inventory the Commonwealth for its natural diversity, including its plants, animal life, biological communities, and areas of natural significance, and to protect these natural features by establishing a system of nature preserves. Pursuant to KRS 224.10-022, the Commission is attached to the Energy and Environment Cabinet. Acquisition and management funds for the agency are derived through a tax refund check-off system authorized in KRS 141.450-141.480, through gifts, grants, devises and bequests pursuant to KRS 146.465, and through allocations from the Kentucky Heritage Land Conservation Fund pursuant to KRS 146.570. The Commission, together with the Kentucky Department of Fish and Wildlife Resources, shares equally the receipts generated by the Non-game Species Protection and Habitat Acquisition program.

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Energy and Environment Public Service Commission Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Continuing Approp.-General Fund Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Commission Operations Financial Analysis Engineering Division of Filings Consumer Services Gas Pipeline Safety TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

15,000,000 27,600 675,400 15,703,000 156,900 11,000 200,000 367,900 21,500 207,400 228,900 16,299,800 8,552,900 1,697,700 589,000 10,839,600 10,387,600 223,100 228,900 10,839,600 5,292,000 1,695,300 1,277,300 1,604,300 407,000 563,700 10,839,600

12,243,600

12,384,200

17,000,000

17,000,000

12,243,600 144,800 11,000 200,000 355,800

12,384,200 132,700 11,000 200,000 343,700

17,000,000 144,800 11,000 200,000 355,800

17,000,000 132,700 11,000 200,000 343,700

200,000 200,000 12,799,400 9,866,300 1,911,400 589,000 300,000 12,666,700 12,243,600 223,100 200,000 12,666,700 5,845,900 2,081,000 2,177,300 1,618,700 411,800 532,000 12,666,700

200,000 200,000 12,927,900 10,452,400 1,765,900 589,000 12,807,300 12,384,200 223,100 200,000 12,807,300 6,073,800 2,205,700 1,829,900 1,701,700 436,800 559,400 12,807,300

227,700 227,700 17,583,500 7,933,800 1,714,400 589,000 10,237,200 9,786,400 223,100 227,700 10,237,200 4,698,600 1,692,500 1,310,400 1,599,900 408,700 527,100 10,237,200

236,900 236,900 17,580,600 8,088,600 1,714,400 589,000 10,392,000 9,932,000 223,100 236,900 10,392,000 4,754,500 1,730,200 1,334,600 1,625,300 416,900 530,500 10,392,000

The Public Service Commission, pursuant to KRS Chapter 278, regulates the intrastate rates and services of over 500 investorowned electric, natural gas, telephone, water and sewage utilities, rural electric and telephone cooperatives, and water districts. The three-member Commission performs its regulatory functions through written orders following adjudicative and rulemaking procedures outlined in statute. The Commission is an independent agency attached to the Energy and Environment Cabinet for administrative purposes only. The Commission's goal is to ensure that every utility charges fair, just, and reasonable rates for the services rendered and that those services are adequate and efficient. The agency is funded by an assessment of all utilities under the Commission's jurisdiction based on the annual gross intrastate revenues. The Commission staff is organized into the Divisions of Consumer Services, Filings, Engineering, and Financial Analysis and Gas Pipeline Safety. Policy The Executive Budget includes $7,213,600 in fiscal year 2015 and $7,068,000 in fiscal year 2016 that shall lapse to the credit of the General Fund from the Public Service Commission.
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Finance and Administration

Finance and Administration Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Current Receipts Total Federal Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT General Administration Controller Debt Service Facilities and Support Services County Costs Commonwealth Office of Technology Revenue Property Valuation Administrators TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

595,188,600 400,400 595,589,000 30,935,800 5,751,000 -5,806,300 30,880,500 59,328,500 173,253,700 4,895,200 -6,750,000 230,727,400 6,324,700 6,324,700 3,120,400 3,120,400 866,642,000 215,584,300 119,996,800 7,030,200 434,784,100 14,925,100 792,320,500 562,515,000 28,587,000 191,773,400 6,324,700 3,120,400 792,320,500 41,645,200 16,054,700 434,695,100 45,339,700 18,436,200 95,980,100 95,892,900 44,276,600 792,320,500

612,988,700

655,469,000

577,488,600

585,905,600

612,988,700 30,821,100

655,469,000 30,915,100

577,488,600 30,820,000

585,905,600 30,907,000

30,821,100 39,412,400 249,922,000 2,351,000 291,685,400 5,168,000 5,168,000 3,120,400 3,120,400 943,783,600 266,603,500 136,903,800 5,873,500 439,347,200 52,365,700 901,093,700 600,695,700 28,641,600 263,468,000 5,168,000 3,120,400 901,093,700 45,074,400 16,338,800 439,258,200 48,325,400 22,236,200 158,984,200 118,377,500 52,499,000 901,093,700

30,915,100 28,217,400 250,457,300 2,515,600 281,190,300 5,168,000 5,168,000 3,120,400 3,120,400 975,862,800 278,111,600 137,074,100 5,873,500 475,030,400 52,159,900 948,249,500 643,176,000 28,735,600 268,049,500 5,168,000 3,120,400 948,249,500 50,196,700 16,935,000 442,422,400 80,552,600 22,236,200 160,435,900 120,261,800 55,208,900 948,249,500

30,820,000 38,954,000 223,265,100 2,202,000 -6,000,000 258,421,100 5,168,000 5,168,000 3,335,700 3,335,700 875,233,400 212,258,000 157,002,000 5,873,500 444,573,000 19,669,400 839,375,900 565,195,600 28,640,500 237,036,100 5,168,000 3,335,700 839,375,900 46,534,600 14,769,100 441,537,100 47,715,500 17,599,500 139,019,000 105,775,100 26,426,000 839,375,900

30,907,000 21,385,000 225,862,400 2,240,400 -1,000,000 248,487,800 5,168,000 5,168,000 3,399,600 3,399,600 873,868,000 215,568,000 156,919,900 5,873,500 450,010,700 19,717,500 848,089,600 573,612,600 28,727,500 237,181,900 5,168,000 3,399,600 848,089,600 54,067,800 15,066,400 441,105,000 48,557,600 17,599,500 139,495,500 104,558,100 27,639,700 848,089,600

The Finance and Administration Cabinet is responsible for managing the financial resources of the Commonwealth and providing central administrative services to agencies of state and local government. The mission of the Finance and Administration Cabinet is to provide its customers with assistance in the delivery of quality services, effective administration, and sound financial management. The Cabinet provides leadership, coordination, and support to other state agencies to ensure accountability and
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integrity in the use of public resources. The Finance and Administration Cabinet constantly strives to conduct government business more effectively. Moreover, among the highest priorities of the Cabinet is providing state government with the resources necessary to carry out its mission by equitable and efficient revenue collection. The Cabinets duties include construction of state facilities, property management including motor vehicles, tax administration and collection, management of the Commonwealths information technology systems, expenditure control, and state purchasing.

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Finance and Administration General Administration Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Current Receipts Total Federal Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Secretary Gubernatorial Transition Office of General Counsel Office of Administrative Services Fleet Management Postal Services Policy and Audit Weatherization TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

6,784,300 25,600 6,809,900 10,164,400 29,418,500 500,000 -3,000,000 37,082,900 4,333,700 4,333,700 400,000 400,000 48,626,500 11,029,900 19,614,500 4,333,700 6,667,100 41,645,200 6,809,900 30,101,600 4,333,700 400,000 41,645,200 2,192,400 2,086,100 3,008,900 26,318,200 2,885,900 820,000 4,333,700 41,645,200

7,678,100

9,207,100

9,633,500

15,447,600

7,678,100 7,030,300 31,189,200 500,000 38,719,500 3,177,000 3,177,000 400,000 400,000 49,974,600 12,787,200 19,762,400 3,177,000 9,347,800 45,074,400 7,678,100 33,819,300 3,177,000 400,000 45,074,400 3,035,500 2,506,200 3,228,000 29,164,700 3,034,900 928,100 3,177,000 45,074,400

9,207,100 4,900,200 33,853,400 500,000 39,253,600 3,177,000 3,177,000 400,000 400,000 52,037,700 13,721,100 19,828,600 3,177,000 1,010,000 12,460,000 50,196,700 9,207,100 37,412,600 3,177,000 400,000 50,196,700 4,192,500 220,000 2,631,700 3,435,000 30,388,100 5,173,500 978,900 3,177,000 50,196,700

9,633,500 6,981,300 31,237,300

15,447,600 4,917,400 33,901,500 -1,000,000

38,218,600 3,177,000 3,177,000 422,900 422,900 51,452,000 12,358,800 19,793,300 3,177,000 2,660,900 8,544,600 46,534,600 9,633,500 33,301,200 3,177,000 422,900 46,534,600 5,471,800 2,209,400 3,436,200 28,355,400 3,052,100 832,700 3,177,000 46,534,600

37,818,900 3,177,000 3,177,000 429,000 429,000 56,872,500 12,825,100 19,859,300 3,177,000 8,113,700 10,092,700 54,067,800 15,447,600 35,014,200 3,177,000 429,000 54,067,800 10,993,700 220,000 2,241,900 3,526,200 29,947,600 3,115,700 845,700 3,177,000 54,067,800

The General Administration appropriation unit provides coordination and management of the Cabinet. It is comprised of the Office of the Secretary, Office of Public Information, Office of General Counsel, Office of Equal Employment Opportunity and Contract Compliance, Office of Policy and Audit, and Office of Administrative Services. The Office of the Secretary, including the Office of Public Information, develops executive policy and directs the overall management of the Commonwealths property and financial assets. Office staff coordinates fiscal and personnel administration for the Cabinet, reviews all internal reorganizations, prepares the Cabinet legislative package, and handles inquiries and issues that arise from the General Assembly, the news media, and the general public. The Secretary of Finance serves on numerous boards and commissions including the Kentucky Economic Development Partnership Board, the Kentucky Economic Development Finance Authority, the Kentucky Infrastructure Authority, the Kentucky Higher Education Assistance Authority, and the Kentucky Housing Corporation.
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The Office of Equal Employment Opportunity (EEO) and Contract Compliance is responsible for developing, implementing, and monitoring the Finance and Administration Cabinets affirmative action plan as required by KRS 18A.138. The Office also monitors all contracts in excess of $250,000 awarded by the Cabinet to ensure compliance with the affirmative action provisions of the Kentucky Equal Opportunity Act. The Office of General Counsel provides legal services to the departments of the Finance and Administration Cabinet and Cabinet-related entities. Members of this office represent the Secretary of the Cabinet in civil litigation. The unit also reviews legislation being considered by the General Assembly. The Office of Administrative Services manages personnel, fiscal policy, and payroll functions for all units within the Finance and Administration Cabinet, the Governors Office, the Executive Branch Ethics Commission, the School Facilities Construction Commission, and the Lieutenant Governors Office. This unit prepares the Cabinets budget and manages the Cabinets personal property inventory. The Office also has responsibility for the management and oversight of the Division of Postal Services and the Division of Fleet Management. The Division of Postal Services has recently consolidated from five locations into one mail management center which provides a more secure environment for the Commonwealths mail. The Division provides messenger service to all state agencies and performs mail processing functions for over 125 state agencies. This division advises agencies about USPS rules, regulations, and services. The Division of Fleet Management manages and maintains the Commonwealth's vehicle fleet for use by state agencies and employees. The Office of Policy and Audit is responsible for assuring the reliability and integrity of information used to support management decision making, evaluating how state assets are safeguarded, providing risk and insurance management to the Cabinet, and appraising the economy and efficiency of resource use. Staff also ascertains whether the operations and programs are being implemented as planned, and performs special studies at the request of management. Policy The Executive Budget provides General Fund in the amount of $2,660,900 in fiscal year 2015 and $8,113,700 in fiscal year 2016 for debt service on new bonds included in the capital budget. General Fund in the amount of $220,000 is appropriated in support of Gubernatorial Transition in fiscal year 2016.

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Finance and Administration Controller Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Controller Local Government Services Financial Management Procurement Services Customer Resource Center State Risk and Insurance Services TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

6,143,800 11,400 6,155,200 3,930,800 5,004,000 4,395,200 -750,000 12,580,000 18,735,200 8,026,900 8,027,800 16,054,700 6,155,200 9,899,500 16,054,700 2,520,200 728,700 4,216,300 1,531,400 5,558,100 1,500,000 16,054,700

7,581,000

7,825,200

5,914,100

5,984,000

7,581,000 3,089,900 5,977,600 1,851,000 10,918,500 18,499,500 8,994,500 7,344,300 16,338,800 7,581,000 8,757,800 16,338,800 2,818,900 832,600 4,422,400 1,800,100 4,875,200 1,589,600 16,338,800

7,825,200 2,160,700 5,957,600 2,015,600 10,133,900 17,959,100 9,450,200 7,484,800 16,935,000 7,825,200 9,109,800 16,935,000 2,916,000 873,600 4,532,600 1,894,600 5,063,600 1,654,600 16,935,000

5,914,100 2,680,500 5,893,100 2,202,000 10,775,600 16,689,700 8,292,700 6,476,400 14,769,100 5,914,100 8,855,000 14,769,100 2,229,300 752,700 4,251,300 1,632,900 4,323,900 1,579,000 14,769,100

5,984,000 1,920,600 5,893,100 2,240,400 10,054,100 16,038,100 8,410,400 6,656,000 15,066,400 5,984,000 9,082,400 15,066,400 2,260,200 767,100 4,279,600 1,661,300 4,497,100 1,601,100 15,066,400

The Office of the Controller provides management for financial accounting control policies and procedures; financial accounting systems; debt management; state purchasing; administration of the Old-Age, Survivors, Disability and Hospital Insurance program; and functions relating to the county fee systems for local entities. The State Controller functions as the Commonwealth's Chief Accounting Officer and participates in the development and maintenance of the Commonwealth's strategic financial management program. The Division of Local Government Services administers, for the benefit of state employees and political subdivisions within the Commonwealth, the Old Age and Survivors Insurance program under Section 218 of the federal Social Security Act. This program is responsible for ensuring that the social security obligations of the state and its political subdivisions are met. To fulfill this responsibility, the State Office for Social Security periodically visits each of the political subdivisions for a procedural, compliance, and fiscal audit pursuant to KRS 61.410 - 61.500. The Division also provides personnel, accounting, and other administrative services to counties through the County Costs, County Fees, and PVA programs. The Division of Statewide Accounting Services is responsible for maintenance and operation of the central statewide accounting system and provides centralized accounting of all receipts and disbursements of the Commonwealth. In addition, this division prepares daily, monthly, and annual financial reports, which constitute a complete report of the financial activities and condition of the Commonwealth. The Office of Financial Management manages the states investments and debt. This includes managing cash flow to maximize the return on state investments, making debt service payments, managing the sale of bonds, and reporting to the General Assembly on all investment and debt matters. The Office is responsible for developing a long-term debt plan for the Commonwealth, including the development of criteria for the issuance of debt, providing an evaluation of how much total state debt is justified, and evaluating revenue projections relative to proposed revenue bond issues. The Office handles all investments on behalf of the General Fund, the Capital Construction Fund, the Road Fund, and approximately 50 other accounts. The Office of Material and Procurement Services is responsible for the central purchasing and materials management for state government (excluding construction and road maintenance). The Office supports the Procurement software module of eMARS,
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designing and testing modifications to the software to ensure it meets the needs of using agencies. The Procurement Services Branch and the Procurement of Technology Services Branch are responsible, with respect to their area of expertise, for purchasing all commodities and non-professional services for state agencies that exceed an agencys small purchase authority limit. The Government Contract Review Branch provides administrative oversight and review of all personal service contracts and Memoranda of Agreement, and ensures compliance with the provisions of KRS Chapter 45A prior to forwarding contracts to the Legislative Research Commission, Government Contract Review Committee, for review. The Office of the Customer Resource Center (CRC) operates a help desk to support nearly 5,000 users of the eMARS system and is responsible for training Commonwealth employees on all eMARS products. In addition, CRC is responsible for developing and analyzing reports to identify areas that need improvement. The Division of State Risk Services manages the state property insurance program, the state building sprinkler system program and the state automobile insurance program in accordance with KRS Chapter 56.

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Finance and Administration Debt Service Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I TOTAL EXPENDITURES EXPENDITURES BY UNIT Debt Service TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

439,425,200 439,425,200 30,692,700 5,751,000 -5,806,300 30,637,400 470,062,600 434,695,100 434,695,100 406,351,200 28,343,900 434,695,100 434,695,100 434,695,100

423,152,700 423,152,700 30,578,000

426,222,900 426,222,900 30,672,000

425,439,600 425,439,600 30,570,000

424,920,500 424,920,500 30,657,000

30,578,000 453,730,700 439,258,200 439,258,200 410,859,700 28,398,500 439,258,200 439,258,200 439,258,200

30,672,000 456,894,900 442,422,400 442,422,400 413,929,900 28,492,500 442,422,400 442,422,400 442,422,400

30,570,000 456,009,600 441,537,100 441,537,100 413,146,600 28,390,500 441,537,100 441,537,100 441,537,100

30,657,000 455,577,500 441,105,000 441,105,000 412,627,500 28,477,500 441,105,000 441,105,000 441,105,000

Previously authorized State Property and Buildings Commission General Fund debt service for all agencies is consolidated in the Finance and Administration Cabinet. All new 2014-2016 General Fund debt service is reflected in budgets of the affected agencies. Policy The American Recovery and Reinvestment Act of 2009 created a new debt instrument for tax-exempt municipal bond issuers, called Build America Bonds. Municipal bond issuers could issue Build America Bonds for eligible tax-exempt purposes on a permanent basis only. The Commonwealth was eligible for a subsidy for bonds issued as Build America Bonds prior to December 31, 2010. Subsidies from the Build America Bonds shall lapse to the General Fund. The amount of the General Fund lapse is $12,293,000 in each fiscal year. The amount of Tobacco Fund lapse is $2,179,500 in each fiscal year.

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Finance and Administration Facilities and Support Services Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Commissioner's Office Facility Development and Efficiency Real Property Historic Properties Building and Mechanical Services State Surplus Property Federal Surplus Property TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

5,231,300 22,400 5,253,700 15,619,500 37,125,000 52,744,500 57,998,200 22,851,400 18,714,100 89,000 3,685,200 45,339,700 5,253,700 40,086,000 45,339,700 551,800 5,391,200 1,200,800 439,300 36,584,500 565,700 606,400 45,339,700

6,543,700

38,990,500

5,630,900

6,158,800

6,543,700 12,658,500 37,108,000 49,766,500 56,310,200 24,658,900 18,994,100 89,000 4,583,400 48,325,400 6,543,700 41,781,700 48,325,400 646,200 6,227,000 1,333,500 454,700 38,428,300 592,100 643,600 48,325,400

38,990,500 7,984,800 37,108,000 45,092,800 84,083,300 25,921,100 19,047,100 31,001,000 4,583,400 80,552,600 38,990,500 41,562,100 80,552,600 31,591,800 6,593,200 1,418,700 468,200 39,199,000 611,300 670,400 80,552,600

5,630,900 12,658,500 37,080,100 49,738,600 55,369,500 24,780,800 18,757,700 375,000 3,802,000 47,715,500 5,630,900 42,084,600 47,715,500 871,700 6,916,400 1,216,700 455,200 37,022,400 591,500 641,600 47,715,500

6,158,800 7,654,000 37,080,100 44,734,100 50,892,900 25,205,900 18,757,700 792,000 3,802,000 48,557,600 6,158,800 42,398,800 48,557,600 1,296,800 7,002,900 1,245,900 461,600 37,298,100 599,900 652,400 48,557,600

The Department for Facilities and Support Services consists of the Commissioners Office and five offices/divisions: Facility Development and Efficiency, Historic Properties, Real Properties, Surplus Properties, and the Office of Building and Mechanical Services. The Department manages the State's facilities construction program, maintains Finance and Administration Cabinet buildings, provides management and oversight of state-owned historical buildings and sites, and provides real property acquisition, disposition, leasing, and inventory services. The Commissioner's Office coordinates and supervises the activities of the five offices/divisions authorized in KRS 42.027. The Office of Facility Development and Efficiency includes the Division of Engineering and Contract Administration which provides professional and technical engineering and architectural services to state agencies, reviews capital construction design documents, acts as a liaison between the Department and state agencies on new construction and major maintenance projects, and monitors construction and maintenance contracts for compliance with plans and specifications. The Division is also responsible for administering the procurement process for construction projects of the Commonwealth of Kentucky, excluding roads and bridges, as prescribed by the Kentucky Model Procurement Code (KRS 45A) and the related administrative regulations. The Division prepares invitations to bid, opens and evaluates those bids, and awards contracts. The General Contracting Branch provides general construction procurement, administers the advertising and awarding of state general construction projects and related support systems, provides procurement information to state agencies, and administers procurement programs for new building construction, renovation, and mechanical, electrical, and HVAC systems. The Specialized Contracting Branch administers the advertising and awarding of state specialized construction projects and related support systems; provides procurement information to state agencies; and administers programs such as reclamation under the Abandoned Mines Lands program, the procurement of state-owned telephone switching systems, asbestos abatement projects, and master agreements for maintenance of elevators, escalators, and similar services. The Administrative Services Branch and the Pre-Audit Branch provide support services to the Division and Department. The Office of Facility Development and Efficiency also includes the Division of Facility Efficiency which is responsible for managing the Guaranteed Energy Saving Performance Contracting program and for implementing the Commonwealth Energy Management
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and Control System (CEMCS). The CEMCS project is an aggressive effort to use an enterprise software platform to reduce energy use in state buildings. The Division of Real Properties provides buildings and parking facilities for state agencies throughout the Commonwealth. The Leased Properties Branch is responsible for administering space requests for leased property, acquisitions of privately-owned leased property for state use, lease renewals and cancellations, modifications to leased property, and related activities. The State Properties Branch administers space assignments for state-owned real property, acquisitions and sales of real properties, leases of state-owned real property to other entities, easements on state-owned real property, appraisals and appraisal reviews for acquisitions and dispositions, authorization of demolition of state-owned buildings, and relocation assistance. The Inventory and Property Utilization Branch plans space utilization including minor building alterations and renovations and interior space standards and administers inventory of state-owned real property, inventory of state-owned leased-out real property, inventory of state leased-in real property, building use permits, reserved parking assignments in Frankfort, and deed and easement records of state-owned real property. The Division of Historic Properties, in accordance with KRS 42.019 and KRS 11.026, is responsible for the preservation and maintenance of Finance and Administration Cabinet-owned historic sites including the Kentucky State Capitol, Executive Mansion, Old Governor's Mansion, Berry Hill Mansion, and the Vest-Lindsey State Meeting House. The Division consults with the Department of Parks to preserve and maintain those historic sites under the management and control of the Tourism Development Cabinet. The same consultation services are provided to other agencies within state government as requested. The Director of the Division of Historic Properties serves as State Curator and a member of the Historic Properties Advisory Commission. The Commission is statutorily responsible for overseeing the maintenance, restoration, preservation, and care of furnishings and grounds of the Executive Mansion, Old Governor's Mansion, and State Capitol grounds. Historic Properties staff is responsible for scheduling and coordinating events held in the public areas of the Capitol Building and grounds. Staff have established and implemented policies and guidelines for the use of this space to allow public access while preserving and protecting the historic and architectural integrity of the buildings and grounds. The Office of Building and Mechanical Services, which includes the Division of Building Services and the Division of Mechanical Services, as authorized by KRS 42.027, provides services for all Finance and Administration Cabinet-operated buildings and for the state agencies occupying those facilities. The Office is responsible for several buildings in Frankfort including the Capitol, New Capitol Annex, Old Capitol, Old Capitol Annex, Capital Plaza Complex, Human Resources Building, Executive Mansion, Old Governors Mansion, New State Office Building, Library and Archives Building, Central Lab Facility, the Kentucky History Center and the Transportation Cabinet building. The Office also services buildings at the London Regional and Madisonville state office complexes, the Spindletop Research Complex in Fayette County, and offices in Ashland, Jackson, Louisville, Owensboro, and Richmond that were formerly owned and operated by Cabinet for Health and Family Services. Services provided include minor renovations; maintaining parking lots, sidewalks and ramps; janitorial and landscaping services; maintaining the heating, ventilating, and air conditioning systems; maintaining special equipment within the buildings as requested; roof repair; fire alarm and security systems; electrical systems; energy conservation; maintaining elevators and escalators; maintaining emergency power systems; and after-hours emergency services. Additionally, the Office is responsible for developing plans and specifications for a wide variety of construction projects. After plans and specifications are complete and have been approved, the Office oversees the construction phase and provides contract administration. Policy The Executive Budget provides General Fund in the amount of $286,000 in fiscal year 2015 and $703,000 in fiscal year 2016 for debt service on new bonds included in the capital budget.

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Finance and Administration County Costs Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Public Defender Program Witnesses DUI Service Fees Sheriffs Fees' County Clerks (Make Tax Bills) Board Of Assessment Appeals Fugitive From Justice Jury Fund Sheriffs Expense Allowance Premium On Sheriffs' Bonds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

16,733,700 16,733,700 88,300 1,614,200 1,702,500 18,436,200 1,892,300 15,348,400 1,195,500 18,436,200 16,733,700 1,702,500 18,436,200 1,858,200 82,500 1,195,500 10,468,400 275,000 40,000 1,139,000 2,900,000 466,600 11,000 18,436,200

20,533,700 20,533,700

20,533,700 20,533,700

15,897,000 15,897,000

15,897,000 15,897,000

1,702,500 1,702,500 22,236,200 3,492,300 17,548,400 1,195,500 22,236,200 20,533,700 1,702,500 22,236,200 3,458,200 82,500 1,195,500 12,668,400 275,000 40,000 1,139,000 2,900,000 466,600 11,000 22,236,200

1,702,500 1,702,500 22,236,200 3,492,300 17,548,400 1,195,500 22,236,200 20,533,700 1,702,500 22,236,200 3,458,200 82,500 1,195,500 12,668,400 275,000 40,000 1,139,000 2,900,000 466,600 11,000 22,236,200

1,702,500 1,702,500 17,599,500 1,892,300 14,511,700 1,195,500 17,599,500 15,897,000 1,702,500 17,599,500 1,858,200 82,500 1,195,500 9,631,700 275,000 40,000 1,139,000 2,900,000 466,600 11,000 17,599,500

1,702,500 1,702,500 17,599,500 1,892,300 14,511,700 1,195,500 17,599,500 15,897,000 1,702,500 17,599,500 1,858,200 82,500 1,195,500 9,631,700 275,000 40,000 1,139,000 2,900,000 466,600 11,000 17,599,500

The County Costs program provides payment to local officials for the performance of functions required by state statutes. Payments under the County Costs program are statutorily mandated and are regarded as a necessary governmental expense. KRS 31.185 requires the fiscal court or legislative body of an urban county government, containing less than ten circuit judges, to annually appropriate twelve and one-half cents ($0.125) per capita to the county as determined by the Council of Local Governments most recent population statistics. The funds, which shall not lapse, shall be held in a special account to be administered by the Finance and Administration Cabinet, and shall be used to pay all court orders that have been entered into as a result of a needy defendants motion for funding assistance. If the funds are depleted in any given year, any unpaid court orders will be paid as a judgment against the Commonwealth. In accordance with KRS 421.015 and 421.250, circuit and district court clerks provide witnesses compensation with reimbursement being provided by the State Treasury upon claim accompanied by documentation. The service fee imposed by KRS 189.050 for persons convicted of driving under the influence of alcohol or other substances shall be disbursed among various state and local agencies to fund such programs as enforcement, indigent defense, and the traumatic brain injury trust fund. Pursuant to KRS 64.092, the sheriff or other law enforcement officer providing security in a Circuit or District Court shall be compensated at the rate of $8 per hour of service. Pursuant to KRS 133.240, county clerks are paid $0.30 per tax bill for preparing property tax bills and $1.00 for omitted assessments. The Finance and Administration Cabinet is responsible for remitting half of the allowed amount to the county clerk. Pursuant to KRS 133.030, each member of a county board of assessment appeals is compensated $100 per day for their services in hearing tax appeals and reviewing tax assessments. The Finance and Administration Cabinet refunds county fiscal courts for half of the board members compensation.
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As authorized by the County Judge Executive or the Governor, and pursuant to KRS 440.090 and 440.380, duly appointed officers are reimbursed by the Finance and Administration Cabinet for mileage and expenses incurred while traveling out of state and returning a fugitive from justice to Kentucky. KRS 29A.170 and KRS 30A.110 require that all jurors in circuit and district court be paid a daily compensation of $12.50 per day plus expenses. The Finance and Administration Cabinet administers this compensation and reimbursement program in cooperation with each county circuit court clerk office. Under KRS 29A.180, sequestered jurors are provided meals, housing, transportation, and security which are funded by the Finance and Administration Cabinet. Pursuant to KRS 70.170, the Finance and Administration Cabinet administers the sheriffs expense allowance program by issuing monthly checks to each of the 120 county sheriffs. The payments of $300 per month are for expenses incurred in the performance of his or her official duties. KRS 62.140 and KRS 62.155 requires the Commonwealth to reimburse each county sheriff for the cost of bond premiums required by law in the performance of his or her official duties. Under KRS 27A.630, filing fees for civil actions include $20 in Circuit Court and $10 in District Court to support access to justice by indigent clients. The fees are paid to the General Fund, and the Finance and Administration Cabinet distributes them monthly to non-profit agencies designated by the Chief Justice in each judicial district to provide the legal services. In previous years these have been accounted for as expenditures requiring an appropriation upon recommendation of the Finance Cabinet. These will be considered as reductions to revenue and accounted for solely on the revenue side of the ledger. Policy Funds required to pay county costs are appropriated and additional funds may be allotted from the General Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund Account (KRS 48.705) by the Secretary of the Finance and Administration Cabinet as a necessary governmental expense, subject to the conditions and procedures provided in the Appropriations Act. The Executive Budget includes a wage of $9 per hour for court security officers.

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Finance and Administration Commonwealth Office of Technology Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Fund Transfers Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Commonwealth Office of Technology Chief Information Security Officer Application Development Infrastructure Services Office of Enterprise Technology IT Service Management TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

16,677,700 83,421,700 -3,000,000 97,099,400 1,991,000 1,991,000 99,090,400 65,128,600 24,777,700 1,501,000 4,572,800 95,980,100 93,989,100 1,991,000 95,980,100 5,348,300 3,049,700 17,002,800 62,529,100 3,572,600 4,477,600 95,980,100

3,110,300 160,502,800 163,613,100 1,991,000 1,991,000 165,604,100 86,547,700 35,001,000 1,501,000 35,934,500 158,984,200 156,993,200 1,991,000 158,984,200 5,719,800 4,686,400 25,154,800 113,802,700 4,158,800 5,461,700 158,984,200

6,619,900 158,393,900 165,013,800 1,991,000 1,991,000 167,004,800 89,512,800 34,305,600 1,501,000 35,116,500 160,435,900 158,444,900 1,991,000 160,435,900 5,746,800 4,148,900 24,721,200 115,698,200 4,327,700 5,793,100 160,435,900

3,110,300 136,777,000 139,887,300 1,991,000 1,991,000 141,878,300 68,758,100 64,187,100 1,501,000 4,572,800 139,019,000 137,028,000 1,991,000 139,019,000 5,676,700 3,248,700 17,485,200 104,083,000 3,688,700 4,836,700 139,019,000

2,859,300 136,710,100 139,569,400 1,991,000 1,991,000 141,560,400 69,562,900 63,858,800 1,501,000 4,572,800 139,495,500 137,504,500 1,991,000 139,495,500 5,635,500 3,296,400 17,598,800 104,302,300 3,732,800 4,929,700 139,495,500

The Commonwealth Office of Technology (COT) provides leadership, policy direction, and technical support to all executive branch agencies in the application of information technology and the delivery of information services. This broad statement of responsibility encompasses major information resource functions such as data center operations; voice, data, and video communications; application development; data security administration; computer hardware selection and installation; and related end-user and customer support services. The workload for COT is highly sensitive to agency programmatic shifts, particularly changes mandated by state and federal legislation. COT consists of six units: Commissioner, Chief Information Security Officer, Application Development, Infrastructure Services, Enterprise Technology, and IT Service Management. The Commissioners Office is responsible for developing strategies and policies to promote the effective application of information technology within state government as a means of saving money, increasing efficiency and employee productivity, and improving services to the public, including electronic access to information of the Commonwealth. The Chief Information Security Officer manages security, access and acceptable use policies for all COT functions. As more and more of the Commonwealths mission-critical applications go on-line, their potential exposure to malicious activity increases. In addition to maintaining the physical security of the Commonwealth Data Center and other COT facilities, the Security Office develops and maintains the disaster recovery business continuity plan. The Office of Infrastructure Services operates the Commonwealths enterprise computing and communications environment. This Office includes the daily operation of the Commonwealth Data Center and the Alternate Data Center, operation and maintenance of the Kentucky Information Highway, and all communication services, including data, voice, video, and wireless. Other responsibilities include providing help desk assistance to end-users and ensuring the security of client information in the areas of electronic commerce and network computing. The Office of Enterprise Technology is responsible for the statewide strategic information technology (IT) plan. Staff in this office assist state agencies in developing their own IT plans that conform with the policies and architecture standards determined by COT. Other responsibilities include enterprise capacity planning, testing, research, and development.

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The Office of IT Service Management is responsible for the IT Infrastructure Library (ITIL) framework and support functions of COT. The office will oversee the transition of agency IT infrastructure to COT as part of the IT infrastructure consolidation initiative. The Office of Application Development analyzes, designs, develops and installs systems and applications for client agencies throughout state government. Support is provided for systems that drive mission-critical activities for the Commonwealth, including public assistance, public health and safety, collection of taxes, and financial and personnel management of state government. The Office provides consulting services and support in a broad range of technical environments including Windows NT, 2000, and XP; UNIX; and Z/OS using languages such as Java, VB, .NET, COBOL, SAS, and others. The Commonwealth Office of Technology operates as an internal service fund agency with budgetary support derived through the application of a federally-approved cost allocation plan, which distributes costs to user agencies based upon utilization of services. The rate schedule by which COT bills agencies for IT services is reviewed annually and adjusted as necessary to accurately reflect actual cost. By consolidating infrastructure services and purchases of equipment and software licenses, COT is able to provide many basic services at very competitive rates. Policy Executive Order 2012-880 directed that operational control and management of all information technology infrastructure services for the Executive Branch be consolidated under COT. Infrastructure services include computing equipment, server, storage, network, desktop support, telephony, IT facilities and enterprise-level shared systems, IT security, disaster recovery and business continuity, database administration, software licensing, and related planning, administration, asset management, and procurement. The consolidation of IT infrastructure services required the transfer of 218 IT infrastructure employees from various state agencies to COT. The Executive Order also created the position of Chief Information Officer (CIO) as the head of COT and made the CIO a member of the Governors Executive Cabinet.

141

Finance and Administration Revenue Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Fund Transfers Total Restricted Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Commissioner's Office Property Valuation Field Operations Income Taxation Sales and Excise Taxes Processing and Enforcement TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

83,505,600 169,800 83,675,400 243,100 243,100 12,835,500 9,941,900 22,777,400 2,720,400 2,720,400 109,416,300 62,807,000 33,085,900

98,500,500

100,980,700

88,547,500

89,858,000

98,500,500 243,100 243,100 13,523,400 9,941,900 23,465,300 2,720,400 2,720,400 124,929,300 78,111,900 37,765,600 2,500,000

100,980,700 243,100 243,100 6,551,800 9,941,900 16,493,700 2,720,400 2,720,400 120,437,900 81,293,500 38,371,300 597,000 120,261,800 100,980,700 243,100 16,317,600 2,720,400 120,261,800 41,258,500 7,727,800 16,268,200 9,925,000 8,813,500 36,268,800 120,261,800

88,547,500 250,000 250,000 13,523,400 10,575,100 -6,000,000 18,098,500 2,912,800 2,912,800 109,808,800 70,186,600 32,838,500 2,750,000 105,775,100 88,547,500 250,000 14,064,800 2,912,800 105,775,100 33,569,800 7,997,600 14,315,800 8,986,600 10,704,800 30,200,500 105,775,100

89,858,000 250,000 250,000 4,033,700 10,575,100 14,608,800 2,970,600 2,970,600 107,687,400 70,469,400 32,838,700 1,250,000 104,558,100 89,858,000 250,000 11,479,500 2,970,600 104,558,100 33,605,800 8,124,900 14,622,300 9,190,300 8,157,700 30,857,100 104,558,100

95,892,900 83,675,400 243,100 9,254,000 2,720,400 95,892,900 30,839,400 6,235,400 13,254,000 8,301,800 7,115,700 30,146,600 95,892,900

118,377,500 98,500,500 243,100 16,913,500 2,720,400 118,377,500 40,310,700 9,588,300 15,348,400 9,363,800 9,584,900 34,181,400 118,377,500

The Department of Revenue is responsible for the accurate and equitable administration of all state revenue laws, and for the assessment and collection of over 40 separate state taxes. The Department aims to ensure the taxpayer's voluntary compliance with the revenue laws, to enforce such laws in those instances where necessary, and to supervise and assist county property valuation administrators in assessing property for taxation. The Commissioners Office includes the Division of Special Investigations, the Security and Disclosure Branch and the Taxpayer Ombudsman. Department-wide costs such as office rent, printing, postage, and information technology are budgeted in this unit. The Office of Property Valuation monitors and evaluates the real property assessments produced by the 120 locally-elected Property Valuation Administrators (PVAs). The office is charged with assessing the property of public service companies; collecting and distributing personal property taxes; and providing education, training, and technical support to the PVAs and sheriffs. The Office of Field Operations has 10 regional taxpayer service centers located across the state and is responsible for field audits and providing taxpayer assistance. The Office of Income Taxation administers individual and business income taxes, including employer withholding. The Office is
142

responsible for technical tax research, compliance, taxpayer assistance, tax-specific training, and publications. The Office of Sales and Excise Taxes administers sales and use taxes and miscellaneous excise taxes. The Office conducts technical tax research and is responsible for compliance, taxpayer assistance, training and publications. The Office of Processing and Enforcement receives all tax receipts, returns, refunds, documents and correspondence; registers new businesses; and maintains appropriate storage, retrieval and management of tax records for the Commonwealth. Policy The Executive Budget includes General Fund in the amount of $2,000,000 in each fiscal year to participate in an enterprise fraud initiative with other state agencies. It is anticipated that this initiative will increase General Fund revenues by $6,000,000 over the biennium.

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Finance and Administration Property Valuation Administrators Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Property Valuation Administrators TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

37,364,700 171,200 37,535,900 12,300 6,728,400 6,740,700 44,276,600 43,848,200 428,400 44,276,600 37,535,900 6,740,700 44,276,600 44,276,600 44,276,600

48,999,000

51,708,900

26,426,000

27,639,700

48,999,000

51,708,900

26,426,000

27,639,700

3,500,000 3,500,000 52,499,000 52,011,000 488,000 52,499,000 48,999,000 3,500,000 52,499,000 52,499,000 52,499,000

3,500,000 3,500,000 55,208,900 54,720,600 488,300 55,208,900 51,708,900 3,500,000 55,208,900 55,208,900 55,208,900 26,426,000 25,988,700 437,300 26,426,000 26,426,000 26,426,000 26,426,000 26,426,000 27,639,700 27,202,000 437,700 27,639,700 27,639,700 27,639,700 27,639,700 27,639,700

Each of the state's 120 counties has a locally elected Property Valuation Administrator (PVA). The PVA and an appointed staff are responsible for locating, identifying, and assessing at fair market value all taxable real property (land and improvements) and tangible personal property in the county. Tax revenues generated by these assessments are used to fund services provided by the state, cities, counties, and school districts as well as special taxing districts such as fire departments, libraries, extension offices, and refuse disposal services. Funding for PVA offices is provided by state, county, and city governments as well as from sales of maps and other geographic information. Policy The Executive Budget supports a proposal by the Property Valuation Administrators (PVAs) to extend to special taxing districts the policy of offsetting the costs of the PVAs through fees on entities that use the services of the PVAs to levy property taxes. In anticipation of an increase in locally generated funds from a new fee on special taxing districts General Fund support for the PVAs is reduced. The new fee would be $0.005 per $100 in assessed property up to a certain maximum percentage of a districts total property tax receipts. School districts are excluded.

144

Health and Family Services

Health and Family Services Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Other Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

2,184,786,300 647,600 5,480,500

2,558,331,000

2,661,483,500

2,333,899,300

2,403,764,000

-1,060,000 2,557,271,000 22,120,600

-1,080,000 2,660,403,500 22,120,600 2,333,899,300 39,376,200 2,403,764,000 27,550,300

2,190,914,400 Total General Fund Tobacco Settlement - Phase I 36,777,900 Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement 4,697,900 Budget Reduction-General Fund Tobacco -17,522,100 Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts ARRA Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT General Administration and Program Support Comm for Children with Special Health Care Needs Medicaid Services Behavioral Health, Developmental & Intellectual Disabilities Public Health Health Policy Family Resource Centers and Volunteer Services Income Support Community Based Services Aging and Independent Living 23,953,700 49,599,900 521,976,700 463,723,900 1,035,300,500 153,594,800 5,908,554,200 3,000,000 6,065,149,000 9,315,317,600 685,932,200 126,249,100 8,454,458,900 986,500 750,000 9,268,376,700 2,175,414,400 23,953,700 1,003,859,600 6,065,149,000 9,268,376,700 87,941,900 16,313,700 7,121,086,400 462,258,500 379,927,800 1,216,000 3,603,600 110,225,400 962,004,700 71,849,500

22,120,600 25,456,700 529,953,300 448,102,800 1,003,512,800

22,120,600 17,686,000 539,537,000 446,839,700 1,004,062,700

39,376,200 31,440,900 514,765,500 486,420,100 1,032,626,500

27,550,300 20,382,900 521,568,800 464,903,400 1,006,855,100

7,014,910,800 7,014,910,800 10,597,815,200 810,541,400 129,493,500 9,638,042,900 986,400 1,065,000 10,580,129,200 2,557,271,000 22,120,600 985,826,800 7,014,910,800 10,580,129,200 101,903,400 17,540,500 8,250,946,900 498,701,700 398,733,700 1,445,500 10,966,200 103,041,900 1,082,260,900 80,651,100

7,297,533,300 7,297,533,300 10,984,120,100 831,571,300 130,258,500 9,989,492,700 18,611,000 836,400 1,065,000 10,971,834,900 2,660,403,500 22,120,600 991,777,500 7,297,533,300 10,971,834,900 97,112,100 18,251,300 8,590,520,700 514,290,100 402,277,200 1,494,900 10,977,800 108,909,800 1,117,711,300 83,401,400

6,914,527,400 6,914,527,400 10,320,429,400 745,627,700 115,837,800 9,432,907,100 3,622,500 986,400 1,065,000 10,300,046,500 2,333,899,300 39,376,200 1,012,243,600 6,914,527,400 10,300,046,500 92,893,600 16,938,400 8,084,734,400 469,622,300 380,392,400 1,257,800 3,576,800 102,623,500 1,041,668,400 72,401,500

7,177,935,900 7,177,935,900 10,616,105,300 745,107,600 121,863,000 9,730,537,500 4,475,200 836,400 1,065,000 10,603,884,700 2,403,764,000 27,550,300 994,634,500 7,177,935,900 10,603,884,700 88,752,000 17,124,100 8,390,815,800 460,357,400 375,127,500 1,273,700 3,548,400 104,465,400 1,062,961,400 72,570,700

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Health Benefit Exchange TOTAL EXPENDITURES

51,949,200 9,268,376,700

33,937,400 10,580,129,200

26,888,300 10,971,834,900

33,937,400 10,300,046,500

26,888,300 10,603,884,700

The Cabinet for Health and Family Services is the primary state agency responsible for leadership in protecting and promoting the health and well being of all Kentuckians through the delivery of quality health and human services. The following departments and/or offices comprise the Cabinet for Health and Family Services: the Office of the Secretary, Governors Office of Electronic Health Information, Office of Communications and Administrative Review, Office of the Inspector General, Office of Legal Services, Office of Administrative and Technology Services, Office of Human Resource Management, Office of Policy and Budget and Office of the Ombudsman comprise the Administration and Program Support appropriation unit. Remaining agencies/appropriation units within the Cabinet include the Office of the Kentucky Health Benefit Exchange, the Office of Health Policy, Department for Medicaid Services, Department for Behavioral Health, Developmental and Intellectual Disabilities, Department for Public Health, Department for Aging and Independent Living, Department for Community Based Services, Department for Income Support, Department for Family Resource Centers and Volunteer Services and the Commission for Children with Special Health Care Needs.

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Health and Family Services General Administration and Program Support Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts ARRA Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Debt Service # Capital Outlay # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Administrative Support Inspector General TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

31,607,100 80,400 31,687,500 2,099,900 6,043,800 12,276,000 20,419,700 2,936,800 35,984,600 3,000,000 41,921,400 94,028,600 56,499,000 30,489,100 203,800 750,000 87,941,900 31,687,500 14,333,000 41,921,400 87,941,900 67,504,400 20,437,500 87,941,900

38,829,500

41,914,400

28,455,100

29,042,100

38,829,500 102,500 6,018,800 6,291,800 12,413,100

41,914,400 72,500 6,018,800 6,291,800 12,383,100

28,455,100 6,086,700 4,551,700 6,291,800 16,930,200

29,042,100 3,064,600 7,543,800 6,291,800 16,900,200

50,733,300 50,733,300 101,975,900 69,943,600 30,631,200 263,600 1,065,000 101,903,400 38,829,500 12,340,600 50,733,300 101,903,400 78,045,200 23,858,200 101,903,400

42,857,100 42,857,100 97,154,600 63,886,700 30,658,800 1,388,000 113,600 1,065,000 97,112,100 41,914,400 12,340,600 42,857,100 97,112,100 72,200,000 24,912,100 97,112,100

50,572,900 50,572,900 95,958,200 66,190,600 25,264,900 109,500 263,600 1,065,000 92,893,600 28,455,100 13,865,600 50,572,900 92,893,600 70,866,800 22,026,800 92,893,600

42,809,700 42,809,700 88,752,000 58,770,000 28,474,900 328,500 113,600 1,065,000 88,752,000 29,042,100 16,900,200 42,809,700 88,752,000 63,216,300 25,535,700 88,752,000

General Administration and Program Support consists of Administrative Support and the Office of the Inspector General. The Administrative Support area includes the Office of the Secretary, the Office of Legal Services, the Office of Communications and Administrative Review, the Office of Human Resource Management, the Office of Policy and Budget, the Office of Administrative and Technology Services, the Office of the Ombudsman, and the Governors Office of Electronic Health Information. These offices provide policy, administrative, legal, financial, technological, and personnel support services to the program areas of the Cabinet. The Inspector General (OIG) provides support to other programs in the Cabinet for Health and Family Services as well as its programmatic functions of health care facility licensure and child care facility regulation. The OIG has three major functions; 1) Audits and Investigations, 2) Child Care Licensing and Regulation, and 3 Health Care Licensing.

Policy The Executive Budget includes General Fund in the amount of $109,500 in fiscal year 2015 and $328,500 in fiscal year 2016 to support $5,000,000 in bonds for the cabinets 2014-2016 Maintenance Pool project.

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Health and Family Services General Administration and Program Support Administrative Support Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts ARRA Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

27,507,400 60,300 27,567,700 768,400 4,088,800 6,316,800 11,174,000 1,544,500 24,218,200 3,000,000 28,762,700 67,504,400 39,176,700 28,227,700 100,000 67,504,400 27,567,700 11,174,000 28,762,700 67,504,400

30,796,600

33,162,900

23,778,600

24,226,500

30,796,600

33,162,900

23,778,600

24,226,500

3,038,800 6,316,800 9,355,600

3,038,800 6,316,800 9,355,600

3,038,800 6,316,800 9,355,600

3,038,800 6,316,800 9,355,600

37,893,000 37,893,000 78,045,200 49,655,000 28,140,200 250,000 78,045,200 30,796,600 9,355,600 37,893,000 78,045,200

29,681,500 29,681,500 72,200,000 42,558,300 28,153,700 1,388,000 100,000 72,200,000 33,162,900 9,355,600 29,681,500 72,200,000

37,732,600 37,732,600 70,866,800 46,124,300 24,383,000 109,500 250,000 70,866,800 23,778,600 9,355,600 37,732,600 70,866,800

29,634,200 29,634,200 63,216,300 38,359,500 24,428,300 328,500 100,000 63,216,300 24,226,500 9,355,600 29,634,200 63,216,300

Administrative Support provides funding for eight organizational units within the Cabinet for Health and Family Services (CHFS) including the Office of the Secretary, the Office of Legal Services, the Office of Communications and Administrative Review, the Office of Human Resource Management, the Office of Policy and Budget, the Office of Administrative and Technology Services, the Office of the Ombudsman and the Governors Office of Electronic Health Information. The Secretary provides oversight and leadership for the Cabinet and its programs. Legal Services provides legal guidance and assistance to all units of the Cabinet in any legal action in which it may be involved. This office provides legal representation for the Cabinet in federal courts, state courts, and before quasi-judicial and administrative bodies; administers all personal service contracts of the Cabinet for legal services; assists in drafting and reviewing legislation, regulations, statutes, and other legal documents and instruments; and provides the Secretary, Commissioners, and Directors in the Cabinet with the legal guidance and representation necessary for them to properly administer the Cabinets programs. Communications and Administrative Review is responsible for providing qualified administrative law judges/hearing officials to conduct administrative hearings related to Cabinet matters, overseeing and monitoring legislative activities, and representing the Cabinet in matters of public information, including media inquiries, open records requests, press releases, public relations, and internal communications. Human Resource Management serves all Cabinet employees and programs and provides payroll and health benefits administration, equal employment opportunity compliance, and professional development and training activities. This office serves as the Cabinets appointing authority and performs all the duties, responsibilities and functions required to maintain an effective and efficient personnel management system in accordance with the Kentucky Revised Statutes, Kentucky Administrative Regulations, and the policy guidelines of the Secretary of the Cabinet. Policy and Budget is responsible for the coordination of budgetary, administrative and legislative activities of the Cabinets
148

agencies on behalf of the Office of the Secretary. This Office reviews and coordinates activities related to programmatic issues across agency lines within the Cabinet as well as with other state agencies outside the Cabinet, including the Governors Office for Policy and Management, the Finance and Administration Cabinet and the Legislative Branch of government. Functional areas of oversight include contract monitoring, grants, administrative regulations, legislation and budget. Administrative and Technology Services consists of Cabinet functions related to accounting, facilities management, procurement, and technology services. Accounting services is responsible for tracking of accounting and payments including travel for the Cabinet; filing required financial reports, including federal cash management activities; responding to audits of the Cabinets programs, and providing maintenance and security of the accounting systems. Facility Services is responsible for monitoring all facilities of the Cabinet, including space design and utilization, establishment, monitoring, and reporting on safety programs, property insurance, claims processing, preparation and maintenance of the Cabinets Six-Year Capital Plan; coordinating, tracking, and monitoring capital construction projects; tracking and reporting on the Cabinets physical assets and public records. Procurement services oversees the purchasing and procurement process, provides technical support to Cabinet staff in procurement and contracting procedures, and ensures compliance with all applicable statutes, regulations, policy, and procedures related to procurement. Technology Services provides technology resources for the Cabinet, including the development, operation, and security of the extensive statewide application systems that support direct delivery of frontline services. The Ombudsman answers questions from recipients of CHFS programs and provides information to the public about CHFS programs. The Office also investigates customer complaints and works with CHFS management to resolve them. The Ombudsman advises CHFS management regarding patterns of complaints and recommends corrective action when appropriate. Staff conducts federally mandated management evaluation and access reviews for the food stamp program and assists in writing county and regional corrective action plans. The Ombudsman is responsible for determining administrative hearing eligibility related to service complaints regarding the Department for Community Based Services Protection and Permanency cases and requests to appeal child abuse and/or child neglect substantiations. The CHFS Institutional Review Board for the Protection of Human Subjects is housed within the Office of the Ombudsman. The Board reviews and approves all research projects conducted by CHFS or involving CHFS clients or employees as subjects to ensure that the safety and welfare of the research subjects is protected. The Governors Office of Electronic Health Information (GOEHI) was created by Executive Order 2009-770 in August of 2009 to serve as a focal point for e-health initiatives in the Commonwealth in light of the health information provisions of the American Recovery and Reinvestment Act. The Health Information Exchange assists health care providers in utilizing electronic health technology to improve patient care, reduce medical errors, and make more efficient use of health care dollars by reducing redundant services.

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Health and Family Services General Administration and Program Support Inspector General Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Capital Outlay # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

4,099,700 20,100 4,119,800 1,331,500 1,955,000 5,959,200 9,245,700 1,392,300 11,766,400 13,158,700 26,524,200 17,322,300 2,261,400 103,800 750,000 20,437,500 4,119,800 3,159,000 13,158,700 20,437,500

8,032,900

8,751,500

4,676,500

4,815,600

8,032,900 102,500 2,980,000 -25,000 3,057,500

8,751,500 72,500 2,980,000 -25,000 3,027,500

4,676,500 6,086,700 1,512,900 -25,000 7,574,600

4,815,600 3,064,600 4,505,000 -25,000 7,544,600

12,840,300 12,840,300 23,930,700 20,288,600 2,491,000 13,600 1,065,000 23,858,200 8,032,900 2,985,000 12,840,300 23,858,200

13,175,600 13,175,600 24,954,600 21,328,400 2,505,100 13,600 1,065,000 24,912,100 8,751,500 2,985,000 13,175,600 24,912,100

12,840,300 12,840,300 25,091,400 20,066,300 881,900 13,600 1,065,000 22,026,800 4,676,500 4,510,000 12,840,300 22,026,800

13,175,500 13,175,500 25,535,700 20,410,500 4,046,600 13,600 1,065,000 25,535,700 4,815,600 7,544,600 13,175,500 25,535,700

The Inspector General has three divisions: the Division of Audits and Investigations, the Division of Regulated Child Care, and the Division of Health Care. The general authority for the Office of the Inspector General is codified within KRS 194A.030. The Division of Audits and Investigations examine Cabinet programs to assess contractor compliance with state and federal laws and regulations. In accordance with KRS 194A.030, the Division is responsible for conducting audits of programs within the Cabinet for Health and Family Services, their grantees and contractors. Investigations are conducted to detect fraud or abuse of any program by any client, or vendor of services with whom the Cabinet has contracted. Special investigations may be requested by the Secretary, commissioners, or agency heads into matters related to the Cabinet and its programs. Any information relevant to possible criminal violations is forwarded to the appropriate prosecuting authority. The agency operates a toll-free welfare and Medicaid fraud and abuse hotline (mandated by KRS 205.8483 and 42 CFR 455), conducts investigations of Women, Infants, and Children program vendors, and collects and reports data on assistance program fraud investigations by the Office of the Inspector General and the Office of the Attorney General. The Kentucky All Schedule Prescription Enforcement Reporting or KASPER system is also maintained here. Regulated Child Care is charged with licensing certified Family Day Care homes, licensed day care centers (Type I and II), child caring facilities, child-placing agencies, and private adoptive service agencies. This includes initial licensure surveys, yearly relicensure surveys, and complaint surveys. Health Care Licensing is responsible for inspecting, monitoring, licensing and certifying all health care facilities as defined by KRS 216.510 (1). On-site inspections are conducted of all health facilities and services throughout the state (including nursing homes, hospitals and laboratories) to determine compliance with state licensing standards and federal Medicare and Medicaid certification requirements. Allegations of abuse and neglect that may occur in a licensed health facility are also investigated. Policy The Executive Budget includes restricted funds of $2,992,100 in each fiscal year for the legislatively mandated Kentucky All Schedule Prescription Electronic Reporting System (KASPER). Improvements will be made to reduce response times, increase
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the accuracy of reports, and integrate KASPER into existing provider workflows, and support compliance monitoring and enforcement for dispenser reporting and prescriber usage requirements. Funds are available from a settlement with the Office of Attorney General related to the Merck Sharp & Dohme Corp. and GlaxoSmithKline. The Executive Budget includes restricted funds of $1,525,000 in each fiscal year for the Kentucky Applicant Registry and Employment Screening Program (KARES). KARES is a fingerprint-supported state and FBI background check program available to long-term care facilities and other providers. Fingerprints are checked against a national database to help protect elderly and vulnerable adults from possible abuse, neglect and exploitation by preventing new employees in long-term care settings from hiding criminal or abusive actions committed in other states.

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Health and Family Services Commission for Children with Special Health Care Needs Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Children's Health Services TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

4,761,600 15,200 4,776,800 242,900 6,727,900 6,970,800 61,200 4,504,900 4,566,100 16,313,700 11,331,500 1,902,300 2,918,900 161,000 16,313,700 4,776,800 6,970,800 4,566,100 16,313,700 16,313,700 16,313,700

6,003,600

6,714,400

5,401,500

5,587,200

6,003,600

6,714,400

5,401,500

5,587,200

6,970,800 6,970,800

6,970,800 6,970,800

6,970,800 6,970,800

6,970,800 6,970,800

4,566,100 4,566,100 17,540,500 12,495,300 1,900,000 2,989,200 156,000 17,540,500 6,003,600 6,970,800 4,566,100 17,540,500 17,540,500 17,540,500

4,566,100 4,566,100 18,251,300 13,206,200 1,899,200 2,989,900 156,000 18,251,300 6,714,400 6,970,800 4,566,100 18,251,300 18,251,300 18,251,300

4,566,100 4,566,100 16,938,400 12,369,500 1,709,900 2,703,000 156,000 16,938,400 5,401,500 6,970,800 4,566,100 16,938,400 16,938,400 16,938,400

4,566,100 4,566,100 17,124,100 12,618,600 1,656,400 2,693,100 156,000 17,124,100 5,587,200 6,970,800 4,566,100 17,124,100 17,124,100 17,124,100

The Commission for Children with Special Health Care Needs (CCSHCN) has over 85 years of experience in providing care for children with a variety of special needs. Through the years, the Commission has evolved from providing surgeries for crippled children to offering comprehensive medical care for children with a range of complex needs. A family-centered approach ensures that the family is valued as an integral part of the care plan and services are provided to assist the family in meeting childrens needs. CCSHCN is charged with planning, developing, providing, and evaluating the public statewide system of care for children with special health care needs and providing early hearing and detection intervention services. CCSHCN works collaboratively with other agencies to assure services to children with disabilities are comprehensive, community-based, family-centered, and coordinated, thus avoiding duplication and fragmentation of the service delivery system. Accessibility is a key component of the delivery system. The program provides an array of preventative, diagnostic, and treatment services for special needs children and youth under 21 including: medical care, hospitalization, medications, durable medical goods, case management, therapy, transportation, and nutritional education. Because rapid advances in medical science have enabled over 90 percent of youth with disabilities and chronic conditions to reach adulthood, the program has expanded its focus to include services and supports for academic achievement, transition from education to employment, from pediatric to adult health care, and to independent living. Because health care is so critical to learning and success in school, CCSHCN has an active partnership with the Kentucky Department of Education and other health, education, and social services providers to support children and youth and families and their schools. The Early Hearing Detection and Intervention Program provides surveillance and support for statewide screening for the early detection of hearing disorders and referral for follow-up treatment. The Hemophilia Program provides medical and social services to children and adults with blood disorders. The Foster Care Program represents a collaborative effort with the Department of Community Based Services to provide medical consultation services to the foster care support program by making regular home visits to the entire population of medically fragile foster care children and acting as onsite, medical resources for the social workers charged with responsibility for both children who are currently in the child welfare system and those who may be at risk for entering that system. The familys financial status can play a role in determining whether the child is accepted into the Children with Special Health Care Needs Program and/or Hemophilia Program. All families with incomes below 300 percent of the federal poverty level are
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accepted where direct services are provided for the condition. A sliding fee scale based on income and number in household determines what percentage of the cost each family pays for treatment. Individuals who fall above the programs maximum income guidelines can still receive services if they are uninsured, reside in medically under-served areas of the state, have certain high cost conditions or conditions that benefit from a multi-disciplinary approach, require durable medical equipment or hearing aids, and/or require services that are exclusions on their private insurance plans. These families benefit from the Commissions discounted rates with contracted providers and are required to reimburse the Commission for treatment costs. This allows the Commission to further assist in communities where specialized medical care is unavailable. Policy The Executive Budget includes General Fund in the amount of $200,000 in each fiscal year to support the Kentucky Advisory Council on Autism. This council was established by Executive Order 2013-805 on November 3, 2013 to provide a central location for the collection, dissemination and coordination of information regarding services and supports for Kentucky citizens on the Autism Spectrum.

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Health and Family Services Medicaid Services Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Medicaid Administration Medicaid Benefits TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,510,706,800 16,600 1,510,723,400

1,694,319,900

1,731,539,800

1,576,550,900

1,635,163,500

1,694,319,900

1,731,539,800

1,576,550,900 15,703,500 15,703,500

1,635,163,500 4,560,100 4,560,100 6,700 60,700 456,136,800 456,204,200

3,276,400 22,000 464,552,100 467,850,500 141,152,500 5,001,916,700 5,143,069,200 7,121,643,100 74,926,000 1,372,800 7,044,787,600 7,121,086,400 1,510,723,400 467,293,800 5,143,069,200 7,121,086,400 106,564,100 7,014,522,300 7,121,086,400

556,700 22,000 453,195,800 453,774,500

6,700 22,000 442,427,700 442,456,400

556,700 53,400 488,189,800 488,799,900

6,102,859,200 6,102,859,200 8,250,953,600 148,590,900 1,374,200 8,100,981,800 8,250,946,900 1,694,319,900 453,767,800 6,102,859,200 8,250,946,900 174,002,300 8,076,944,600 8,250,946,900

6,416,524,500 6,416,524,500 8,590,520,700 155,239,600 1,375,000 8,433,906,100 8,590,520,700 1,731,539,800 442,456,400 6,416,524,500 8,590,520,700 180,651,800 8,409,868,900 8,590,520,700

6,003,686,800 6,003,686,800 8,084,741,100 102,167,300 1,191,600 7,981,375,500 8,084,734,400 1,576,550,900 15,703,500 488,793,200 6,003,686,800 8,084,734,400 127,396,100 7,957,338,300 8,084,734,400

6,294,888,000 6,294,888,000 8,390,815,800 103,279,700 1,191,600 8,286,344,500 8,390,815,800 1,635,163,500 4,560,100 456,204,200 6,294,888,000 8,390,815,800 128,508,500 8,262,307,300 8,390,815,800

Medicaid Services is comprised of two appropriation units: Administration and Benefits. Additionally, two major programs operate within each of those appropriation units: the Kentucky Medical Assistance program (regular Medicaid program) and the Kentucky Children's Health Insurance program (KCHIP). The Medical Assistance program provides for comprehensive physical and behavioral health services by reimbursing providers for health care provided to medically indigent Kentuckians. Providers are reimbursed directly on a fee-for-service basis or indirectly through contractual arrangements with managed care organizations who receive a monthly capitation payment for each enrolled recipient. Eligibility for services is determined by staff in each county through a contractual agreement with the Department for Community Based Services. Individuals may automatically qualify for benefits if they are eligible for Supplemental Security Income benefits administered by the Social Security Administration. KCHIP provides for comprehensive physical and behavioral health services for uninsured children up to 200 percent of the federal poverty level who are not otherwise eligible for Medicaid.

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Health and Family Services Medicaid Services Medicaid Administration Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Medical Assistance Administration KCHIP Administration TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

33,181,800 16,600 33,198,400 2,242,200 22,000 14,363,900 16,628,100 16,578,000 40,159,600 56,737,600 106,564,100 74,926,000 1,372,800 30,265,300 106,564,100 33,198,400 16,628,100 56,737,600 106,564,100 105,537,600 1,026,500 106,564,100

55,841,100

58,311,200

33,314,500

33,398,600

55,841,100

58,311,200

33,314,500

33,398,600

22,000 10,378,000 10,400,000

22,000 10,378,000 10,400,000

53,400 16,716,900 16,770,300

60,700 17,339,300 17,400,000

107,761,200 107,761,200 174,002,300 148,590,900 1,374,200 24,037,200 174,002,300 55,841,100 10,400,000 107,761,200 174,002,300 172,966,400 1,035,900 174,002,300

111,940,600 111,940,600 180,651,800 155,239,600 1,375,000 24,037,200 180,651,800 58,311,200 10,400,000 111,940,600 180,651,800 179,608,100 1,043,700 180,651,800

77,311,300 77,311,300 127,396,100 102,167,300 1,191,600 24,037,200 127,396,100 33,314,500 16,770,300 77,311,300 127,396,100 126,360,900 1,035,200 127,396,100

77,709,900 77,709,900 128,508,500 103,279,700 1,191,600 24,037,200 128,508,500 33,398,600 17,400,000 77,709,900 128,508,500 127,472,300 1,036,200 128,508,500

Administrative functions of the Medicaid program and the Kentucky Childrens Health Insurance program (KCHIP) include determining applicant eligibility, formulating policy, processing claims, assuring appropriate utilization of medical services, and managed care oversight. For the fee for service elements of the program, claims are paid through contracts with a fiscal agent and a pharmacy benefits administrator. For the managed care elements of the program, a monthly capitation fee for each member is paid. The Medicaid program contracts for medical review of acute care admissions, level of care determinations for long-term care patients, and care reviews for recipients in mental hospitals and psychiatric facilities. The Department for Community Based Services performs the eligibility determination function on behalf of the Department for Medicaid Services through a contractual arrangement. The Department for Medicaid Services also administers KCHIP, a program to provide health care services for uninsured children with family incomes below 200 percent of the federal poverty level but above the federal income level for the Medicaid Program.

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Health and Family Services Medicaid Services Medicaid Benefits Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Medicaid Benefits KCHIP Benefits TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,477,525,000 1,477,525,000

1,638,478,800 1,638,478,800

1,673,228,600 1,673,228,600

1,543,236,400 1,543,236,400 15,703,500 15,703,500

1,601,764,900 1,601,764,900 4,560,100 4,560,100 6,700 438,797,500 438,804,200

1,034,200 450,188,200 451,222,400 124,574,500 4,961,757,100 5,086,331,600 7,015,079,000 7,014,522,300 7,014,522,300 1,477,525,000 450,665,700 5,086,331,600 7,014,522,300 6,794,820,500 219,701,800 7,014,522,300

556,700 442,817,800 443,374,500

6,700 432,049,700 432,056,400

556,700 471,472,900 472,029,600

5,995,098,000 5,995,098,000 8,076,951,300 8,076,944,600 8,076,944,600 1,638,478,800 443,367,800 5,995,098,000 8,076,944,600 7,847,737,300 229,207,300 8,076,944,600

6,304,583,900 6,304,583,900 8,409,868,900 8,409,868,900 8,409,868,900 1,673,228,600 432,056,400 6,304,583,900 8,409,868,900 8,168,381,000 241,487,900 8,409,868,900

5,926,375,500 5,926,375,500 7,957,345,000 7,957,338,300 7,957,338,300 1,543,236,400 15,703,500 472,022,900 5,926,375,500 7,957,338,300 7,728,131,000 229,207,300 7,957,338,300

6,217,178,100 6,217,178,100 8,262,307,300 8,262,307,300 8,262,307,300 1,601,764,900 4,560,100 438,804,200 6,217,178,100 8,262,307,300 8,020,819,400 241,487,900 8,262,307,300

The Kentucky Medicaid program, under Title XIX of the Social Security Act and KRS 205.520, provides for preventive and remedial medical care for financially and medically indigent citizens in Kentucky who meet the income and resource criteria for Medicaid eligibility. The following services are currently provided by Kentuckys Medicaid program: inpatient hospital, physician services, nursing facility services, outpatient hospital, home health, family planning, - laboratory and radiology, dental, transportation (both nonemergency and emergency), vision care, hearing, intermediate care facilities for persons with intellectual disabilities, pharmacy, community mental health, mental hospitals, psychiatric residential treatment facilities, renal dialysis services, primary care/rural health clinic , podiatry, alternative intermediate services for mentally retarded (Supports for Community Living and Michelle P waivers), Brain Injury waiver (Acute and Long Term Care), ambulatory surgical centers, home and community-based waiver, adult day care, nurse midwife, nurse anesthetist, Hospice, preventive services, targeted case management, school-based services, homebased services for children who are ventilator dependent, durable medical equipment, portable x-ray, nurse practitioner, chiropractor, and other medically necessary diagnostic and treatment services for children through the Early Periodic Screening Diagnostic and Treatment Program. Medicare beneficiaries with incomes below the federal poverty level receive Medicaid assistance for payment of Medicare premiums, deductibles and cost sharing. These individuals are Qualified Medicare Beneficiaries (QMBs). Individuals at the lowest income levels are entitled to full Medicaid benefits. Medicare beneficiaries with income levels slightly higher than poverty receive Medicaid assistance for payment of Medicare premiums. These individuals are Specified Low-Income Medicare Beneficiaries (SLMBs). Effective January 1, 2014, the federal Patient Protection and Affordable Care Act (ACA) changed the basis for Medicaid eligibility from eligibility categories tied to deprivation to income-based eligibility, with household income for most beneficiaries determined by the Modified Adjusted Gross Income (MAGI) reported on income tax returns. ACA also simplified and streamlined eligibility processes for most beneficiaries. ACA required states with Medicaid benchmark benefit packages, including Kentucky, to align their Medicaid benefits with the ten essential health benefits mandated by ACA and defined by the benchmark plan adopted for the states health benefit exchange (the 2012 Anthem PPO plan for Kentucky). This required Kentucky to add substance use
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treatment services and private duty nursing to its benefit package for all Medicaid beneficiaries. Prior to ACA, Kentucky Medicaid only covered substance use treatment for children and pregnant women. Kentucky adopted the ACA adult Medicaid eligibility expansion which extends Medicaid eligibility to individuals in households with income at or below 138% of the federal poverty level (FPL). Kentucky Medical Assistance Program (KMAP) Recipient Groups Based on the eligibility changes in ACA, individuals who are eligible for KMAP benefits are classified into two groups: the Modified Adjusted Gross Income (MAGI) eligibility group and the non-MAGI eligibility group. The MAGI eligibility group includes children and non-disabled adults under age 65. Specifically, this group includes children, pregnant women, caretaker relatives of children eligible for Medicaid, the new adult Medicaid expansion eligibility group authorized by ACA and former foster care children who are eligible for Medicaid up to age 26, as mandated by ACA. The non-MAGI eligibility group includes aged, blind and disabled individuals whose eligibility is associated with their health status and who are subject to resource requirements as well as income limits in establishing Medicaid eligibility. 2013 Federal Poverty Level Guidelines (100%) Family Size Monthly Income 1 $958 2 $1,293 3 $1,628 4 $1,963 5 $2,298 6 $2,633 7 $2,968 8 $3,303 Projecting Benefits Cost Forecasting models were combined in the preparation of the Medicaid Benefits projections. Both the Office of State Budget Director (OSBD) and the Department for Medicaid Services (DMS) prepared cash forecasts to arrive at a consensus forecast. These forecasts examine past trends in categorical spending to generate projections for future cash expenditures, adjusting for policy changes. It should be noted that fewer members and services remain under fee-for-service due to the expansion of managed care which was implemented November 1, 2011. Using member eligibility information, historical monthly cash fee-forservice data was classified as either fee-for-service or managed care. Managed care costs were calculated based on the monthly member forecast and the negotiated rates with the contracted managed care organizations. The managed care portion of the budget does not include individual categories of service; therefore, total projected costs for individual services cannot be determined. Provider Taxes Although the majority of the funds that the Commonwealth uses to match federal Medicaid dollars are derived from the General Fund, approximately 25 percent of the programs fiscal year 2015 and 20 percent of the programs fiscal year 2016 expenditure match will be secured from dedicated provider assessments. The assessments are levied on hospitals, home health agencies, Intermediate Care Facilities for Persons with Intellectual Disabilities, providers of alternative community services and long-term care facilities. The recommended budget assumes continuation of the current level of provider tax collections to maintain existing reimbursement levels for hospitals established in state fiscal year 2006.

Disproportionate Share Hospital (DSH) Payments The budget includes funding for Disproportionate Share Hospital (DSH) payments equal to the maximum amount established by federal law. Disproportionate Share Hospital payments to state mental hospitals are budgeted in each year of the biennium. This budget includes funds transferred from the university teaching hospitals to be used as state matching funds for the portion of DSH funds received by those facilities. Managed Care The budget request assumes that Region Three Medicaid managed care will continue in Jefferson County and the 15 surrounding counties through four Managed Care Organizations (MCOs): CoventryCares of Kentucky, WellCare of Kentucky, Humana CareSource and Passport Health Plan. In addition, effective January 1, 2014 for fiscal year 2015, services will be provided through 5 contracted managed care organizations in the remaining 7 regions of the Commonwealth for individuals enrolled through the ACA adult eligibility expansion. Those MCOs include the current providers, Wellcare and CoventryCares, plus Anthem, Humana and Passport. Anthem, Humana and Passport will begin covering traditional Medicaid enrollees effective July 1, 2014. Recipients in long term care facilities and waiver programs are excluded from managed care enrollment. Benefit Match Rate The budget request assumes a federal medical assistance percentage of 69.91 for state fiscal year 2015 and 69.94 percent for state fiscal year 2016 for eligibility groups other than the ACA Medicaid expansion group for most budget items. The federal
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medical assistance percentage for the Medicaid expansion eligibility group authorized by the ACA is 100% for state fiscal years 2015 and 2016. The federal Medicaid match rate for KCHIP for state fiscal year 2015 is calculated at 78.94 percent and the match rate for the first quarter of state fiscal year 2016 is calculated at 78.96 percent. Effective October 1, 2015, the KCHIP program will be funded with 100% federal funds. The 100% federal funding for KCHIP will continue through September 30, 2019. Kentucky Children's Health Insurance Program (KCHIP) The Kentucky Children's Health Insurance program was initiated under Title XXI of the Social Security Act and serves eligible children up to 200 percent of the federal poverty level. The CHIP program was officially reauthorized effective April 1, 2009 with enactment of the Childrens Health Insurance Program Reauthorization Act (CHIPRA). CHIPRA restructured the funding formula in order to provide, to the extent possible, predictable and adequate federal funding for the program through September 2015. Policy The Executive Budget includes General Fund of $4,693,600 in fiscal year 2015 and $9,378,700 in fiscal year 2016 to continue the roll-out of the Supports for Community Living program. There will be 200 slots added in fiscal year 2015 and an additional 200 slots added in fiscal year 2016 for a total of 400 new slots added over the biennium. The total funds added to the Supports for Community Living program for increased slots for fiscal year 2015 is $15,600,000 and $31,200,000 in fiscal year 2016. The Executive Budget includes General Fund of $4,055,500 in fiscal year 2015 and $8,184,600 in fiscal year 2016 to continue the roll-out of the Acquired Brain Injury program. There will be an additional 90 acute care slots and an additional 60 long-term care slots added in fiscal year 2015 for a combined total of 150 slots. There will be an additional 93 acute care slots and an additional 60 long-term care slots added in fiscal year 2016 for a combined total of 153 slots. There will be a combined total of 303 new slots added over the biennium. The total funds added to the Acquired Brain Injury program for increased slots for fiscal year 2015 is $13,479,000 and $27,227,600 in fiscal year 2016. The Executive Budget includes General Fund of $1,818,300 in fiscal year 2015 and $3,633,300 in fiscal year 2016 to continue the roll-out of the Michelle P program. There will be 250 slots added in fiscal year 2015 and an additional 250 slots added in fiscal year 2016 for a total of 500 new slots added over the biennium. The total funds added to the Michelle P program for increased slots for fiscal year 2015 is $6,043,300 and $12,086,900 in fiscal year 2016.

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Health and Family Services Behavioral Health, Developmental & Intellectual Disabilities Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Community Behavioral Health Community Developmental and Intellectual Disabilities General Support Residential TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

197,081,600 79,400 371,800 197,532,800 697,400 75,600 -447,400 325,600 7,432,800 213,859,700 12,518,600 233,811,100 39,589,000 39,589,000 471,258,500 109,015,100 21,161,100 331,515,500 566,800 462,258,500 188,532,800 325,600 233,811,100 39,589,000 462,258,500 132,663,900 27,683,900 37,439,900 264,470,800 462,258,500

232,721,100

250,136,300

202,621,000

194,887,000

232,721,100 697,400

250,136,300 697,400

202,621,000 891,400

194,887,000 891,400

697,400

697,400

891,400

891,400

221,190,200 5,551,600 226,741,800 38,541,400 38,541,400 498,701,700 114,482,500 21,231,100 362,421,300 566,800 498,701,700 232,721,100 697,400 226,741,800 38,541,400 498,701,700 146,492,200 28,269,700 42,680,300 281,259,500 498,701,700

221,190,200 5,551,600 226,741,800 36,714,600 36,714,600 514,290,100 117,948,800 21,256,500 364,567,000 9,951,000 566,800 514,290,100 250,136,300 697,400 226,741,800 36,714,600 514,290,100 148,212,400 28,469,800 43,132,800 294,475,100 514,290,100

221,895,000 5,553,600 227,448,600 38,661,300 38,661,300 469,622,300 113,313,300 21,023,800 331,490,900 3,227,500 566,800 469,622,300 202,621,000 891,400 227,448,600 38,661,300 469,622,300 132,085,100 27,974,100 37,633,500 271,929,600 469,622,300

222,144,600 5,556,900 227,701,500 36,877,500 36,877,500 460,357,400 114,617,400 21,023,000 320,907,500 3,242,700 566,800 460,357,400 194,887,000 891,400 227,701,500 36,877,500 460,357,400 130,437,200 28,097,400 28,904,900 272,917,900 460,357,400

The Department for Behavioral Health, Developmental and Intellectual Disabilities operates behavioral health, substance abuse, developmental and intellectual disabilities, and brain injury programs. Services are provided in the community and in state-owned, state-operated and contracted residential facilities. Approximately 1,300 inpatients are cared for daily in the facilities operated or contracted by the Cabinet, and several thousand more are treated as outpatients in the community setting by the 14 Regional Boards for Mental Health or Individuals with an Intellectual Disability established by KRS 210. Policy A Current Year Appropriation from the General Fund in the amount of $371,800 in fiscal year 2014 is included to maintain budgeted levels of service in the Substance Abuse Prevention and Treatment program in response to the expected reduction in Tobacco Settlement-Phase I payments to the Commonwealth in April, 2014 resulting from an arbitration action.

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Health and Family Services Behavioral Health, Developmental & Intellectual Disabilities Community Behavioral Health Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Current Year Appropriation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Community Alcohol and Drug Services Community Mental Health Services TOTAL EXPENDITURES Community Mental Health Services The Community Mental Health Services program provides services and support to Kentuckians with mental health problems in an effort to improve their ability to function in the community. The Department for Behavioral Health, Developmental and Intellectual Disabilities contracts with 14 Regional Community Mental Health Centers (CMHCs) and other local entities. In addition, the Community Mental Health Services program has targeted funds to the most vulnerable citizens with behavioral health conditions. These include: Adults with severe mental illness (KRS 210, KRS 202A), Children/youth with severe emotional disabilities (KRS 200.500 to KRS 200.509) Uninsured or underinsured individuals with behavioral health disorders. Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

54,394,400 371,800 54,766,200 697,400 75,600 -447,400 325,600 3,237,600 37,552,600 2,495,300 43,285,500 459,100 33,827,500 34,286,600 132,663,900 3,619,100 563,000 128,481,800 132,663,900 54,766,200 325,600 43,285,500 34,286,600 132,663,900 37,359,100 95,304,800 132,663,900

69,270,300 69,270,300 697,400

72,817,300 72,817,300 697,400

54,656,100 54,656,100 891,400

54,833,700 54,833,700 891,400

697,400

697,400

891,400

891,400

40,799,200 2,486,300 43,285,500

40,799,200 2,486,300 43,285,500

40,799,200 2,486,300 43,285,500

40,799,200 2,486,300 43,285,500

33,239,000 33,239,000 146,492,200 3,573,900 563,000 142,355,300 146,492,200 69,270,300 697,400 43,285,500 33,239,000 146,492,200 42,548,900 103,943,300 146,492,200

31,412,200 31,412,200 148,212,400 3,501,500 549,000 144,161,900 148,212,400 72,817,300 697,400 43,285,500 31,412,200 148,212,400 44,970,800 103,241,600 148,212,400

33,252,100 33,252,100 132,085,100 3,629,300 563,000 127,892,800 132,085,100 54,656,100 891,400 43,285,500 33,252,100 132,085,100 37,656,300 94,428,800 132,085,100

31,426,600 31,426,600 130,437,200 3,578,800 549,000 126,309,400 130,437,200 54,833,700 891,400 43,285,500 31,426,600 130,437,200 36,896,200 93,541,000 130,437,200

In accordance with KRS 210.410, community mental health centers must provide persons suffering from mental health problems with specific services such as: Consultation and educational services to help individuals understand their illnesses and treatment options; community support programs, where individuals with mental illness may receive services to assist them to live independently within the community; outpatient services; emergency services; and inpatient services, which are generally made available through referrals to crisis stabilization units, or state or community hospitals.

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State and federal funds are used to provide psychiatric screening and assessment services, case management services, psychotropic medications, housing, and vocational support services for adults with severe mental illness. Funds are also provided for unique services and supports designed to wraparound an adult or child who is at risk of psychiatric hospitalization. Provision of wraparound services and supports is aimed at diverting individuals from costly inpatient care when their needs can be met in a less restrictive environment (i.e., in their own home, community). Examples of wraparound may include peer mentoring services, respite for families/caregivers, and skills development/enhancement (e.g., independent daily living skills, social skills, supportive housing, supported employment, etc.). Funding is also used to support promotion of mental wellness and early intervention assessment and treatment services. Suicide prevention for youth, adults and older adults is an important focus of the Department as well as services to individuals, and their families, dealing with behavioral health issues related to or exasperated by military service. The Community Mental Health program assists in statewide needs assessment and planning, monitors services, provides technical assistance and training, and procures and administers federal and other funds for the provision of effective, communitybased services and supports. There is currently a focus to integrate mental health services with services for individuals with substance use disorders or co-occurring mental health and substance use disorders, as well as individuals with behavioral health disorders and physical health concerns and preventive care. Community Alcohol and Drug Services The Community Alcohol and Drug Services Program provides quality treatment, prevention, and education services to citizens suffering from, or at-risk of, substance use disorders (tobacco, alcohol and prescription or illegal drugs). Services are provided primarily through contracts with 14 Regional CMHCs. Substance abuse prevention and treatment services are provided pursuant to KRS 222. The receipts from alcohol intoxication fines are received pursuant to KRS 431.100. Other statutes under which the program operates include: KRS 189A (Driving Under the Influence assessment, education, and treatment) and KRS 218A.410 (Drug Forfeiture). Contracts with the CMHCs and their subcontractors, schools, local government agencies, and other community-based organizations provide services which include: community prevention programming (offered through 14 Regional CMHCs); juvenile diversion programs; DUI assessment, education, and treatment programs; Consultation with businesses on the development of a drug-free work place and employee assistance programs; Social setting detoxification centers, residential treatment for men, women and youth, outpatient treatment and intensive outpatient treatment, and case management services; and Specialized treatment services for pregnant women, women with dependent children, adolescents, and intravenous drug users. In addition, opiate replacement therapy (medication) and corresponding counseling is available to opiate dependent persons who are at high risk for HIV/AIDS due to their intravenous drug use. Training, consultation and client evaluations are made available, within budget limitations, to criminal justice agencies and other agencies within the Cabinet for Health and Family Services for clients with substance use disorders. During the past two years, CMHCs have confronted the challenges of adjusting to delivery system changes due to implementation of Medicaid Managed care. In the upcoming biennium, the behavioral health delivery system will experience significant changes as a result of: The Medicaid Expansion; The Patient Protection and Affordable Care Act (PPACA; Public Law 111-148); The Health Care and Education Reconciliation Act and the Mental Health Parity; and The Addiction Equity Act (MHPAEA).

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Health and Family Services Behavioral Health, Developmental & Intellectual Disabilities Community Developmental and Intellectual Disabilities Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Local Developmental and Intellectual Disabilities KY Developmental Disability Council TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

19,863,400 19,863,400 111,300 2,954,000 3,065,300 -504,200 5,259,400 4,755,200 27,683,900 4,911,600 854,800 21,917,500 27,683,900 19,863,400 3,065,300 4,755,200 27,683,900 26,271,900 1,412,000 27,683,900

20,449,200 20,449,200

20,649,300 20,649,300

20,080,200 20,080,200

20,169,900 20,169,900

3,065,300 3,065,300

3,065,300 3,065,300

3,067,300 3,067,300

3,070,600 3,070,600

4,755,200 4,755,200 28,269,700 5,497,600 854,800 21,917,300 28,269,700 20,449,200 3,065,300 4,755,200 28,269,700 26,825,900 1,443,800 28,269,700

4,755,200 4,755,200 28,469,800 5,697,700 854,800 21,917,300 28,469,800 20,649,300 3,065,300 4,755,200 28,469,800 27,006,700 1,463,100 28,469,800

4,826,600 4,826,600 27,974,100 5,202,000 854,800 21,917,300 27,974,100 20,080,200 3,067,300 4,826,600 27,974,100 26,535,500 1,438,600 27,974,100

4,856,900 4,856,900 28,097,400 5,325,300 854,800 21,917,300 28,097,400 20,169,900 3,070,600 4,856,900 28,097,400 26,649,700 1,447,700 28,097,400

Community Developmental and Intellectual Disabilities is responsible for administration of the Supports for Community Living Medicaid waiver program for individuals with intellectual and developmental disabilities and for the oversight of community providers of both waiver and state General Fund service programs. Developmental and Intellectual Disability Services provides support and services to individuals to help them be contributing members of their community. Services are provided through contracts with the 14 Regional Community Mental Health Centers and with forprofit and non-profit agencies which provide residential, vocational, community, respite, and a variety of other services that increase independence in the community. Some of the residential services include support to individuals within their own homes, family homes, group home living placements, apartment living supervision, community staffed residences, and assistance with other living arrangements. Participating providers must support people who choose their agencies to assist them to live in the community. It is the responsibility of the provider to ensure that people are safe, healthy, respected and valued; that they live in the community with effective, individualized assistance; and are contributing members of the community in which they live and work. Additionally, each of the 14 Regional Community Mental Health Centers have 24/7 crisis prevention and intervention support available to individuals, families and providers with the goal of enabling an individual to remain in his/her community and to prevent future crisis events. The Kentucky Council on Developmental Disabilities is administratively attached to the Division of Developmental and Intellectual Disabilities. The Council is made up of 26 members (individuals with developmental disabilities and family/guardian/siblings) appointed by the Governor and state agency representatives as defined in (PL 106-402 and KRS 194.135). The Council promotes systems change, capacity building and advocacy for individuals with developmental disabilities. The Council on Developmental Disabilities represents the interests of approximately 122,000 Kentuckians who have developmental disabilities. The Council funds time-limited demonstration projects and engages in outreach activities to assist individuals with developmental disabilities and their families.

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Health and Family Services Behavioral Health, Developmental & Intellectual Disabilities General Support Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

46,439,900 46,439,900 46,439,900 4,133,800 680,000 32,626,100 37,439,900 37,439,900 37,439,900

42,680,300 42,680,300 42,680,300 4,449,800 680,000 37,550,500 42,680,300 42,680,300 42,680,300

43,132,800 43,132,800 43,132,800 4,672,900 680,000 37,779,900 43,132,800 43,132,800 43,132,800

37,633,500 37,633,500 37,633,500 4,533,700 519,400 29,352,900 3,227,500 37,633,500 37,633,500 37,633,500

28,904,900 28,904,900 28,904,900 4,789,900 519,400 20,352,900 3,242,700 28,904,900 28,904,900 28,904,900

General Support includes the Commissioner's Office, the Division of Administration and Financial Management, and Community Care Grants. This units activities include policy and budget development, program monitoring, standards development, and management decision-making for the overall direction of the Department. The Department contracts with the University of Kentucky for technical and information support services. The Community Care Grants provide the funding for the "safety net" for individuals needing behavioral health, developmental and intellectual disabilities, substance abuse services, and the infrastructure that supports and provides these services. Kentucky Revised Statute 210.420 sets the distribution formula for these funds to local community mental health centers. Local boards determine which program areas and which services will be funded based on local needs. Policy The General Fund for fiscal year 2014 includes $5,187,500 for employer contribution rates to the Kentucky Employees Retirement system. The Executive Budget includes additional General Fund of $19,638,200 in each fiscal year to fully fund the increase in employer contribution rates for Regional Mental Health/Mental Retardation Boards that are currently participating in the Kentucky Employees Retirement system. The Executive Budget includes General Fund of $16,500 in fiscal year 2015 and $33,000 in fiscal year 2016 for debt service to complete construction of the Oakwood Specialty Clinic on the grounds of Oakwood Intermediate Care Facility of the Mentally Retarded (ICF/MR) in Somerset, KY. The original project was funded in the 20102012 Budget of the Commonwealth for $2,164,000. The Executive Budget includes savings as a result of the expansion of the Medicaid program under the Affordable Care Act. As a result of expanded coverage and expanded benefits General Fund savings of $21,000,000 in fiscal year 2015 and $30,000,000 in fiscal year 2016 are included.

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Health and Family Services Behavioral Health, Developmental & Intellectual Disabilities Residential Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

76,383,900 79,400 76,463,300 4,083,900 176,307,100 7,069,300 187,460,300 45,100 502,100 547,200 264,470,800 96,350,600 19,063,300 148,490,100 566,800 264,470,800 76,463,300 187,460,300 547,200 264,470,800

100,321,300

113,536,900

90,251,200

90,978,500

100,321,300

113,536,900

90,251,200

90,978,500

180,391,000 180,391,000

180,391,000 180,391,000

181,095,800 181,095,800

181,345,400 181,345,400

547,200 547,200 281,259,500 100,961,200 19,133,300 160,598,200 566,800 281,259,500 100,321,300 180,391,000 547,200 281,259,500

547,200 547,200 294,475,100 104,076,700 19,172,700 160,707,900 9,951,000 566,800 294,475,100 113,536,900 180,391,000 547,200 294,475,100

582,600 582,600 271,929,600 99,948,300 19,086,600 152,327,900 566,800 271,929,600 90,251,200 181,095,800 582,600 271,929,600

594,000 594,000 272,917,900 100,923,400 19,099,800 152,327,900 566,800 272,917,900 90,978,500 181,345,400 594,000 272,917,900

Residential Services provides inpatient care in the areas of psychiatric hospitalization, intermediate care for persons with developmental and intellectual disabilities, nursing facility care, and forensic psychiatry for 992 individuals each day. Inpatient psychiatric services are provided for adults through four psychiatric hospitals: Eastern State Hospital in Lexington with an average daily census (ADC) of 132; Central State Hospital in Louisville with an ADC of 56; and Western State Hospital in Hopkinsville with an ADC of 114. The Hazard Psychiatric Facility, owned and operated by Appalachian Regional Healthcare, Inc., with an ADC of 90, provides acute inpatient psychiatric services through a contract with the Department. Eastern State Hospital is operated under a management contract with University of Kentucky. Glasgow Nursing Facility with an ADC of 81 and Western State Nursing Facility with an ADC of 111 provide nursing facility services for adults with behavioral health illness who are admitted from state psychiatric hospitals. Ten facilities provide intermediate care for individuals with development and intellectual disabilities who are unable to live unassisted in their communities: the Oakwood Community Center in Somerset with an ADC of 120, Outwood in Dawson Springs with an ADC of 41, Hazelwood in Louisville with an ADC of 105, Bingham Gardens located in Louisville with an ADC of 21, Del Maria in Fern Creek with an ADC of 8, the Meadows in Mount Washington with an ADC of 8, and Windsong in Crestwood with an ADC of 8. Residents are assisted in self-care skills and appropriate social behavior and are provided specialized services to promote their personal growth. Numerous initiatives are underway to improve the overall quality of service provided to the residents at the Oakwood Community Center. The cabinet has contracted with Bluegrass Regional Mental Health Mental Retardation Board, Inc. to operate the Oakwood Community Center. The vendor is making improvements in the care rendered at the facility while ensuring the safety and welfare of clients at Oakwood as the Department continues to downsize the facility. Forensic psychiatric services are provided at the Kentucky Correctional Psychiatric Center within the Luther Luckett Correctional Complex in LaGrange (97 licensed beds). Pretrial services are provided for persons with felony charges who are referred by district
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and circuit courts for evaluation of competency to stand trial. The correctional component may serve some post-convicted females in need of acute inpatient psychiatric treatment who are transferred from various institutions within the Department of Corrections.

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Health and Family Services Public Health Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT General Health Support Women's Health Prevention and Quality Improvement Epidemiology and Health Planning Maternal and Child Health Laboratory Services Public Health Protection and Safety TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

56,884,600 51,600 5,003,700 61,939,900 12,708,200 4,522,300 -9,526,000 7,704,500 26,264,500 118,799,200 -9,427,200 135,636,500 796,000 199,234,300 200,030,300 405,311,200 63,292,200 11,860,900 304,774,700 379,927,800 55,939,900 7,704,500 116,253,100 200,030,300 379,927,800 47,739,800 12,625,700 13,115,000 56,560,800 231,068,500 7,323,100 11,494,900 379,927,800

89,211,600

105,572,400

69,393,000

78,090,300

89,211,600 12,708,200

105,572,400 12,708,200

69,393,000 14,066,300

78,090,300 13,383,800

12,708,200 19,383,400 103,014,600 -10,711,300 111,686,700

12,708,200 14,903,100 105,024,700 -10,711,300 109,216,500

14,066,300 19,383,400 103,247,400 -10,711,300 111,919,500

13,383,800 14,903,100 105,188,800 -10,711,300 109,380,600

200,030,300 200,030,300 413,636,800 67,075,200 12,228,500 319,430,000 398,733,700 89,211,600 12,708,200 96,783,600 200,030,300 398,733,700 63,742,400 12,444,700 11,748,800 60,226,900 230,651,200 7,602,300 12,317,400 398,733,700

187,000,700 187,000,700 414,497,800 68,957,300 12,193,300 318,073,600 3,053,000 402,277,200 105,572,400 12,708,200 96,995,900 187,000,700 402,277,200 67,206,900 12,465,100 11,827,400 60,513,900 229,834,300 7,794,400 12,635,200 402,277,200

199,916,700 199,916,700 395,295,500 66,692,600 11,588,200 301,826,100 285,500 380,392,400 69,393,000 14,066,300 97,016,400 199,916,700 380,392,400 46,483,100 12,378,900 12,228,700 58,200,900 231,958,800 7,557,200 11,584,800 380,392,400

186,493,400 186,493,400 387,348,100 67,342,500 11,543,100 295,337,900 904,000 375,127,500 78,090,300 13,383,800 97,160,000 186,493,400 375,127,500 41,328,800 12,358,600 13,241,900 58,074,200 230,832,900 7,619,100 11,672,000 375,127,500

The Department for Public Health (DPH) is responsible for developing, monitoring and operating state public health programs and activities for the citizens of Kentucky. DPH oversees a variety of programs designed to improve the lives of our citizens and visitors through prevention of negative health outcomes, promotion of healthy lifestyles and protection from diseases, injury, and environmental health impacts. DPH has almost 150 different programs to help Kentuckians become healthier in cooperation with its partners such as local health departments, universities, private providers, etc. The Department for Public Health, as authorized by KRS 211.025 and 211.180, supervises and assists all local boards of health and local health departments. There are 61 local health department units serving all 120 counties in Kentucky.

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The Department is responsible for programs that affect the quality of life of all four million Kentuckians each and every day. Public health organizations are accountable to the populations they serve, and public health officials are primarily responsible for the health of the population living in their jurisdiction (county, group of counties, state) through both personal preventive as well as population based services. The seven core public health functions are: enforcement of public health regulations, surveillance of public health, communicable disease control, public health education, public health policy development, reduction of risk to families and children, and disaster preparedness. Preventive services for specific populations include family planning, prenatal care, pediatric preventive check-ups, Women, Infants, and Children supplemental nutrition services, adult preventive services, and chronic disease monitoring, and support services. DPH relies on local health departments to carry out core public health activities required by statute or regulation, and preventive services to specific populations mandated by budget appropriations. In fiscal year 2013, the public health departments of Kentucky reported the following accomplishments: Provided adult health preventive visits to 204,104 people Provided cancer-related clinical visits (primarily breast and cervical cancer) to 153,276 people Provided individual and group diabetes education services to 1,348 people Provided family planning services to 105,709 people Provided maternity services to 3,300 women Provided 203,841 medical home health units/visits to 7,399 patients Provided 133,494 units/visits of Medicaid Home and Community Based Services to 884 people Provided childrens preventive services to 223,654 children. Enrolled 126,930 Women, Infants and Children participants Referred 826 infants with positive or inconclusive results from newborn metabolic screening (approximately 30 disorders) to university diagnostic centers Performed genetic testing, counseling and education for 1,831 families Provided 959,730 doses of vaccine to Kentuckians. Immunized 552,042 persons Immunized kindergarten entrants adequately (53,981 children) Inspected 48,884 food establishments, 1,391 X-ray and other radiation-producing machines, 8,048 dairies, and performed 44,728 sanitation inspections Performed 3,000,067 laboratory tests Provided 602,562 copies of vital statistics records to the public

Local health departments may provide additional services depending on community need and the availability of funding. Examples of these additional services include home health services, physician-based ambulatory primary care services, and expanded school health services. Policy A Current Year Appropriation from the General Fund in fiscal year 2014 is included to maintain budgeted levels of service in the following programs in response to the expected reduction in Tobacco Settlement-Phase I payments to the Commonwealth in April, 2014 resulting from an arbitration action: $3,976,400 in the Health Access Nurturing Development Services (HANDS) program; $509,600 in the Early Childhood Mental Health program; $46,700 in the Healthy Start program; $197,900 in the Immunization program; $63,400 in the Folic Acid program; and $209,700 in the Smoking Cessation program.

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Health and Family Services Public Health General Health Support Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

12,903,800 51,600 12,955,400 682,300 49,941,200 -9,816,200 40,807,300 13,500 503,600 517,100 54,279,800 7,222,400 230,900 40,286,500 47,739,800 6,955,400 40,267,300 517,100 47,739,800

40,228,700

43,843,200

22,973,500

17,968,000

40,228,700 540,000 33,826,900 -11,100,300 23,266,600

43,843,200 270,000 33,826,900 -11,100,300 22,996,600

22,973,500 540,000 33,826,900 -11,100,300 23,266,600

17,968,000 270,000 33,826,900 -11,100,300 22,996,600

517,100 517,100 64,012,400 7,572,600 241,400 55,928,400 63,742,400 40,228,700 22,996,600 517,100 63,742,400

367,100 367,100 67,206,900 7,815,800 224,600 56,113,500 3,053,000 67,206,900 43,843,200 22,996,600 367,100 67,206,900

513,000 513,000 46,753,100 7,519,200 401,100 38,277,300 285,500 46,483,100 22,973,500 22,996,600 513,000 46,483,100

364,200 364,200 41,328,800 7,600,800 374,400 32,449,600 904,000 41,328,800 17,968,000 22,996,600 364,200 41,328,800

The General Health Support Program includes two organizational units: the Commissioner and Administration and Financial Management. The Commissioner is responsible for the leadership, management, oversight, and policy direction of the Department for Public Health. The Commissioner advises the heads of major agencies in state government on policies, plans, and programs relating to matters of public health. This includes actions necessary to respond to extraordinary events in order to safeguard the health of the citizens of the Commonwealth. The Commissioner serves as the State Health Officer for the Commonwealth. The Commissioners role includes the coordination of public health emergency response capabilities with federal and other state agencies and involvement in the statewide management of anti-terrorist (nuclear, biologic, chemical) activities. The Commissioner provides leadership in transforming the role of public health in Kentucky to new models as more of the uninsured citizens have opportunities for healthcare coverage under the new insurance marketplace and expanded Medicaid coverage. The Chief Nursing Officer for Public Health, located in the Commissioners Office, provides nurse administration consultation and technical assistance to the Commissioner, executive staff, and state and local health departments including approximately 1,200 nurses and APRNs who practice in local health departments across the state. This guidance includes nursing scope of practice issues, the development and implementation of clinical protocols, nursing education and clinical competencies as well as public health nursing workforce development initiatives. The Center for Health Equity was established in September 2008 and functionally operates through the Commissioners Office. The Center receives funding from the U.S. Department of Health and Human Services, Office of Minority Health. The Center seeks to eliminate health disparities in the state of Kentucky specifically those social, cultural, and environmental factors that contribute to adverse health outcomes. The Office serves in an advisory capacity to all divisions across the Department of Public Health. The Center for Performance Management, established in 2010 from funding provided by a five (5) year Centers for Disease Control and Prevention cooperative agreement, is located in the Commissioners Office and is a resource to both the Department for Public Health and Kentuckys local health departments to assist with accreditation, performance management, quality improvement and customer satisfaction initiatives. The goal of this program is for participants to make fundamental changes in their organizations
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and practices so that they can improve the delivery of public health services and create a culture of continuous quality improvement. The ten (10) Essential Public Health Services and Public Health Accreditation Board (PHAB) are the driving forces to achieve minimum standards and measures for public health. Administration and Financial Management provides resource support to the Department for Public Health including approximately 380 department-level personnel. It provides budget and accounting support, payments, grant allocation, fee collection, procurement, and contracting support, as well as oversight of local health departments fiscal planning and administrative management functions. The Departments biennial budget is developed by Administration and Financial Management. It works in concert with the other health services programs in the Department to plan, program, execute, manage, and report the financial activities of the Department and local health departments. Administration and Financial Management also plays a vital role in providing effective and efficient training that enhances workforce abilities of the department, local health departments, public health preparedness, and other public health system partners. The program is also responsible for providing guidance on the day-to-day operation of the 61 local health jurisdictions across the state and has the responsibilities for personnel management of nearly 3,000 local health personnel; medical records and forms management, reporting of clinical and community-based services, operating the online local health network that tracks approximately six (6) million services to more than 750,000 patients, policy interpretation, and the Local Board of Health nomination process. Training on medical coding and billing practices, local health personnel procedures, and financial operations is also provided by program staff. Policy The General Fund for fiscal year 2014 includes $3,294,100 for employer contribution rates to the Kentucky Employees Retirement system. The Executive Budget includes additional General Fund of $14,615,600 in each fiscal year for local health departments to fully fund the increase in employer contribution rates for the Kentucky Employees Retirement system. The Executive Budget includes savings as a result of the expansion of the Medicaid program under the Affordable Care Act. As a result of expanded coverage and expanded benefits General Fund savings of $6,000,000 in fiscal year 2015 and $11,700,000 in fiscal year 2016 are included.

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Health and Family Services Public Health Women's Health Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Current Year Appropriation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

2,557,600 63,400 2,621,000 128,200 64,800 -128,200 64,800 14,800 285,200 300,000 -131,400 9,771,300 9,639,900 12,625,700 1,411,900 202,100 11,011,700 12,625,700 2,621,000 64,800 300,000 9,639,900 12,625,700

2,586,500 2,586,500 128,200

2,606,900 2,606,900 128,200

2,574,600 2,574,600 80,000

2,579,300 2,579,300 80,000

128,200

128,200

80,000

80,000

300,000 300,000

300,000 300,000

300,000 300,000

300,000 300,000

9,430,000 9,430,000 12,444,700 1,508,600 202,100 10,734,000 12,444,700 2,586,500 128,200 300,000 9,430,000 12,444,700

9,430,000 9,430,000 12,465,100 1,571,100 202,100 10,691,900 12,465,100 2,606,900 128,200 300,000 9,430,000 12,465,100

9,424,300 9,424,300 12,378,900 1,491,000 202,100 10,685,800 12,378,900 2,574,600 80,000 300,000 9,424,300 12,378,900

9,399,300 9,399,300 12,358,600 1,512,800 202,100 10,643,700 12,358,600 2,579,300 80,000 300,000 9,399,300 12,358,600

Womens Health, in partnership with key stakeholders, provides leadership to improve the physical, socio-emotional health, safety, and well-being of Kentucky's women, including those with low incomes, diverse ethnic or racial backgrounds, and isolated populations with limited access to care. The program also serves as Kentuckys representative to the federal Health Resources Service Administration (HRSA) Office of Womens Health. Womens Health includes the following subprograms: The Kentucky Womens Cancer Screening subprogram provides breast and cervical cancer screenings and diagnostic services, case management, and treatment referral services to reduce cancer morbidity and mortality among medically underserved, low income, and uninsured women in Kentucky. Supported by a federal grant from the Centers for Disease Control and Prevention the Kentucky Womens Cancer Screening program provides breast and cervical cancer screening for women as a preventive health measure. The grant also requires the program to provide appropriate referrals for medical treatment; to ensure appropriate follow-up services and case management; to develop and disseminate public information and education programs for the detection and control of breast and cervical cancers; to improve the education, training, and skills of health professionals; to monitor the quality of screening procedures for breast and cervical cancers; and to evaluate activities through appropriate surveillance. The Breast Cancer Research and Education Trust Fund subprogram, created in 2005, is funded by revenue collected from the breast cancer license plates purchases and the State Income tax form optional checkbox. Funds collected through these methods are distributed to community based affiliates through an annual Request for Proposal process. Projects awarded support breast cancer research, education, treatment, screening, and awareness in Kentucky. The Folic Acid Counseling and Supplementation subprogram services are provided in every health department (61) and subdelegate sites. Research has shown that when women consume adequate folic acid, the incidence of neural tube defects such as spina bifida can be decreased by as much as 70%. Since the inception of this program, the number of neural tube defects in
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infants in Kentucky has declined. The Folic Acid program is funded by Tobacco Settlement funds. The Title X Family Planning subprogram provides individuals with the information and means to exercise personal choice in determining the number and spacing of children. Title X family planning clinics play a critical role in ensuring access to voluntary, confidential family planning services for low-income or uninsured families. Services are provided to participants at no cost or at a reduced cost. Family Planning services are currently offered in local health departments and clinics targeting special populations (e.g. males, Hispanics, and adolescents). Title X supported clinics also provide a number of preventive health services such as: patient education and counseling; breast and pelvic examinations; cervical cancer screenings; STD and HIV screenings; preconception counseling; and pregnancy diagnosis. The Abstinence Education Grant Program provides abstinence education to middle school students to encourage students to choose abstaining from sexual activity as the best choice to achieve optimal health and well-being. This program provides students with knowledge about the physical and emotional benefits of abstaining from sexual activity until adulthood and equips them with refusal skills and decision-making skills to accomplish this goal. The Personal Responsibility Education Program (PREP) provides ready-for-adulthood education to teenagers ages 13-18 in middle and high school. Two programs are utilized to provide age-appropriate, abstinence-based, comprehensive sexuality education and other positive youth development subjects. Youth most at risk make poor health decisions and are statistically more likely to have decreased adulthood successes. One program is delivered in the classroom setting for 5-10 days and the other program is an after-school program delivered throughout the school year. Curriculum delivered in the classroom includes sexual health subjects and information on healthy relationships, self-esteem, goal setting and decision making skills. The afterschool curriculum additionally includes lessons on values and community and 20 hours of community-service learning each year.

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Health and Family Services Public Health Prevention and Quality Improvement Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

7,173,200 7,173,200 76,600 1,114,300 1,190,900 -106,100 4,857,000 4,750,900 13,115,000 1,646,000 597,000 10,872,000 13,115,000 7,173,200 1,190,900 4,750,900 13,115,000

7,284,200 7,284,200

7,362,800 7,362,800

7,769,200 7,769,200

8,795,400 8,795,400

50,000 50,000

50,000 50,000

50,000 50,000

50,000 50,000

4,414,600 4,414,600 11,748,800 1,783,700 518,100 9,447,000 11,748,800 7,284,200 50,000 4,414,600 11,748,800

4,414,600 4,414,600 11,827,400 1,882,200 518,100 9,427,100 11,827,400 7,362,800 50,000 4,414,600 11,827,400

4,409,500 4,409,500 12,228,700 1,763,600 518,100 9,947,000 12,228,700 7,769,200 50,000 4,409,500 12,228,700

4,396,500 4,396,500 13,241,900 1,796,700 518,100 10,927,100 13,241,900 8,795,400 50,000 4,396,500 13,241,900

The Prevention and Quality Improvement Program is comprised of two subprograms: Chronic Disease Prevention and Health Care Access. The mission of the Prevention and Quality Improvement (PQI) program is to deliver programs and services, including chronic disease management, clinical and community education/promotion, quality improvement, health access for low income Kentuckians, and health risk behavior data analysis in order to promote healthy behaviors by Kentuckians. The programs activities cover the spectrum of population-based and personal preventive health services, delivered through a wide range of health care providers and related groups. The PQI program provides leadership and partners with key stakeholders in order to improve care and services to the public comprised of low incomes, diverse ethnicity and racial backgrounds, and isolated populations with limited access to care. Program staff support clinical and community based services and infrastructure building through policy development and implementation, surveillance activities, case management, and technical assistance. The PQI program identifies best practices to reduce the risks of poor health and sets standards to focus more on positive outcomes. This is accomplished through community-based health education programs, clinical care programs for adults primarily of a preventive nature, awareness and education, and promotion of an adequate network of primary care providers throughout the Commonwealth especially in the underserved areas of the state. The PQI program is responsible for the Kentucky Prescription Assistance Program (KPAP) and the Kentucky Colon Cancer Screening Program (KCCSP). Chronic Disease Prevention and Control subprogram is responsible for decreasing the morbidity and mortality from chronic diseases, with emphasis on prevention and risk factors that can be reduced through healthy lifestyles. Prevention programs include asthma, arthritis and osteoporosis, comprehensive cancer, colon cancer, chronic obstructive pulmonary disease, diabetes, heart disease and stroke, and worksite wellness. The sub program provides funding to local health departments for community-based services aimed at individuals and at bringing about policy and environmental changes that will improve the health status of Kentuckians. This branch also manages the Kentucky Colon Cancer Screening Program (KCCSP). The Health Care Access subprogram provides a departmental focus on primary care and administers federal grants and programs relative to primary care. Through these programs, approximately 150 additional physicians are serving Kentuckys medically underserved population. The Program is responsible for determining areas of Kentucky that meet Health Professional
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Shortage Area and Medically Underserved Area criteria. This subprogram is also responsible for the Charitable Health Program, the National Health Service Corps Program, Kentucky Physician Care Program, J-1 VISA Program, and the Kentucky Prescription Assistance Program (KPAP). Policy The Executive Budget includes additional General Fund of $500,000 in fiscal year 2015 and $500,000 in fiscal year 2016 to the Kentucky Colon Cancer Screening Program to expand colon cancer screening for the uninsured. The Executive Budget includes additional General Fund of $1,000,000 in fiscal year 2016 to the Kentucky Cancer Program to increase the number of uninsured women receiving breast and cervical cancer screenings.

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Health and Family Services Public Health Epidemiology and Health Planning Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Current Year Appropriation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

4,413,600 197,900 4,611,500 250,000 10,100 -208,000 52,100 15,617,900 16,426,500 -395,300 31,649,100 -3,267,200 39,164,400 35,897,200 72,209,900 36,219,700 4,828,400 15,512,700 56,560,800 4,611,500 52,100 16,000,000 35,897,200 56,560,800

6,229,000 6,229,000 250,000

6,331,000 6,331,000 250,000

4,530,100 4,530,100

4,562,100 4,562,100

250,000 15,649,100 18,429,400 -313,300 33,765,200

250,000 13,013,500 20,429,500 -313,300 33,129,700 15,649,100 18,420,700 -313,300 33,756,500 13,013,500 20,302,600 -313,300 33,002,800

32,996,200 32,996,200 73,240,400 39,090,900 5,319,800 15,816,200 60,226,900 6,229,000 250,000 20,751,700 32,996,200 60,226,900

32,996,200 32,996,200 72,706,900 39,728,600 5,305,500 15,479,800 60,513,900 6,331,000 250,000 20,936,700 32,996,200 60,513,900

32,927,800 32,927,800 71,214,400 38,964,900 4,519,800 14,716,200 58,200,900 4,530,100 20,743,000 32,927,800 58,200,900

32,702,300 32,702,300 70,267,200 39,188,900 4,505,500 14,379,800 58,074,200 4,562,100 20,809,800 32,702,300 58,074,200

The mission of Epidemiology and Health Planning is to provide quality epidemiological and vital records services, public health planning and preparedness services, and reportable disease prevention and control services in order to promote, protect, and plan for the health and safety of Kentuckians. The program has responsibility for much of the three Ds in public health: Health Data, Acute Disease Prevention and Control, and Disaster Preparedness. To accomplish these responsibilities, activities are conducted in four areas: Infectious Disease includes disease surveillance, prevention, and control activities related to vaccine-preventable diseases, sexually transmitted diseases, tuberculosis, adult viral hepatitis, healthcare associated infections, and other reportable diseases, HIV/AIDS includes prevention activities, client services, and surveillance for HIV/AIDS, Vital Statistics collects and preserves mandatory records of vital events including births, deaths, marriages, and divorces, and Public Health Preparedness includes the development, implementation, and exercising of statewide emergency preparedness plans for both terrorist (nuclear, biologic, chemical) threats as well as naturally occurring disease outbreaks.

The Immunization Program provides financial support and vaccines to local health departments and other providers for the provision of over one million immunizations each year to about 550,000 persons. Immunization rates are tracked in schools, day care, health department clinics, and among the general child population.

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The Sexually Transmitted Disease (STD) Program is designed to reduce the occurrence and prevent the transmission and debilitating complications of sexually transmitted diseases. The STD Program provides educational materials, staff training, program planning and evaluation services, technical consultation, and selected antibiotics to all health departments and other selected health care providers. The Tuberculosis (TB) Control program aims to reduce the number of cases and deaths due to TB by preventing non-infected individuals from becoming infected, keeping those infected without disease from progressing to disease, and by attempting to maintain infected individuals with disease as non-infectious. The Adult Viral Hepatitis Prevention Program is a federally funded program that focuses on the prevention of viral hepatitis in adults caused by hepatitis A, hepatitis B, and hepatitis C viruses. The Healthcare Associated Infection (HAI) Program establishes an infrastructure within the Department for Public Health to develop state-wide activities focused on the prevention of HAIs within healthcare facilities. The Reportable Disease Program is responsible for case confirmation, oversight of disease investigations, and surveillance for reportable diseases such as meningitis, hepatitis, diarrheal diseases, foodborne illnesses, and vector-borne diseases. The HIV/AIDS program seeks to identify and track cases of HIV and AIDS, prevent the disease by raising awareness and promoting risk reduction behaviors, and connect HIV-positive clients to care. The HIV Prevention Program focuses on testing, awareness of ones status, and strategic intervention activities to reduce HIV transmission for at-risk populations. The HIV/AIDS Services program assists HIV-positive clients with case management, in addition to providing life-saving medications and insurance continuation for qualified clients, as a payor of last resort. Vital Statistics is responsible for the registration, certification, and issuance of vital records (birth, death, marriage, and divorce certificates) in Kentucky. The programs primary responsibility is the maintenance and security of these vital records as well as responding to specific requests for vital statistics data. The Public Health Preparedness Program has the responsibility of developing, coordinating, and overseeing the public health response to potential disaster events. It prepares the Commonwealth for disease outbreaks and other public health threats by integrating local public health assets, upgrading the State Laboratory to the capacity required by the Centers for Disease Control and Prevention, and providing hospitals and healthcare facilities across the state with funding to ensure preparedness for events attributable to disasters.

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Health and Family Services Public Health Maternal and Child Health Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Current Year Appropriation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

22,343,100 4,742,400 27,085,500 12,330,000 4,447,400 -9,189,800 7,587,600 9,661,700 42,094,800 784,300 52,540,800 3,994,300 143,006,200 147,000,500 234,214,400 8,023,600 919,100 222,125,800 231,068,500 27,085,500 7,587,600 49,394,900 147,000,500 231,068,500

24,002,100 24,002,100 12,330,000

36,037,500 36,037,500 12,330,000

23,684,200 23,684,200 13,986,300

36,222,900 36,222,900 13,303,800

12,330,000 3,145,900 41,609,800 702,300 45,458,000

12,330,000 1,586,600 41,609,800 702,300 43,898,700

13,986,300 3,145,900 41,607,900 702,300 45,456,100

13,303,800 1,586,600 41,590,600 702,300 43,879,500

150,447,700 150,447,700 232,237,800 7,600,100 868,300 222,182,800 230,651,200 24,002,100 12,330,000 43,871,400 150,447,700 230,651,200

137,568,100 137,568,100 229,834,300 7,921,700 868,300 221,044,300 229,834,300 36,037,500 12,330,000 43,898,700 137,568,100 229,834,300

150,418,800 150,418,800 233,545,400 7,537,300 868,300 223,553,200 231,958,800 23,684,200 13,986,300 43,869,500 150,418,800 231,958,800

137,426,700 137,426,700 230,832,900 7,648,900 868,300 222,315,700 230,832,900 36,222,900 13,303,800 43,879,500 137,426,700 230,832,900

The Maternal and Child Health Program promotes and safeguards the health of Kentuckians, with an emphasis on at-risk mothers, infants and children. The program goal is to help those at-risk achieve the highest level of health and wellness possible through public health surveillance, education, nutrition, perinatal care, early childhood promotion and intervention, well child care, oral health, injury prevention, coordinated school health, health promotion and healthy communities, and selected primary and preventive care activities. The Early Childhood Development subprogram is required, by statute, to provide early childhood initiatives such as home visitation (Health Access Nurturing Development Services or HANDS), childcare health consultation, and early childhood mental health services for children. The Early Childhood Development subprogram also identifies children in Kentucky who are at-risk for serious medical conditions and developmental delays through the Newborn Metabolic Screening and Case Management program and Kentucky Birth Surveillance Registry, both which are also in statute. The First Steps (Kentucky Early Intervention System) subprogram provides case management and coordination of services for infants and toddlers between birth and three years of age with developmental disabilities or developmental delays. These early interventions include services such as physical therapy, occupational therapy, speech therapy, hearing and vision services, and other services as needed to meet the childs developmental needs. First Steps services are provided in the home or other community settings, unless it is not feasible to do so, and are subject to a sliding fee scale unless the family has documented an inability to pay. Families and other interested parties access the First Steps program locally through 15 Points of Entry covering the 15 Area Development Districts. Children served by First steps transition to the local education agency or other community supports at age three.

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The Child and Family Health Improvement subprogram provides oversight to services and activities including: prenatal care; child and adolescent preventive health; childhood lead poisoning prevention; child fatality review and injury prevention; oral health; and coordinated school health. The Nutrition subprogram administers: the Special Supplemental Nutrition Program for Women, Infants and Children (WIC); Clinical Nutrition Services, Breastfeeding Peer Counselor Program; and the Farmers Market Nutrition Program. The WIC program is funded wholly by the US Department of Agriculture and provides food packages and nutrition education to low-income pregnant and post partum women, infants and children at nutritional risk, and sets standards for nutrition services. Nutritionists in local health departments provide medical nutrition therapy and follow-up nutrition care for mothers and children with special nutrition needs. The Health Promotion subprogram administers programs that focus on behavioral risk factors to promote lifestyle changes for developing a healthy community. The subprogram provides services in the areas of Tobacco Cessation and Control, Tobacco Quit-line, Obesity Prevention, and Healthy Communities Projects. Policy The Executive Budget includes additional General Fund of $11,600,000 in fiscal year 2016 to support the Health Access Nurturing Development Services program (HANDS). These funds replace federal funds of $6,600,000 and include additional funds of $5,000,000 to expand services statewide. These funds support the HANDS program for non-first time parents. The Executive Budget provides additional General Fund of $1,200,000 in fiscal year 2015 and $2,100,000 in fiscal year 2016 to establish five new oral health hygiene teams that will provide preventive dental services to underserved Kentuckians. This funding will allow over 14,000 children to receive oral assessments, cleanings, oral health education, fluoride varnishes and dental sealants.

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Health and Family Services Public Health Laboratory Services Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

3,974,600 3,974,600 45,800 3,064,200 3,110,000 2,600 245,900 248,500 7,333,100 3,389,800 3,777,400 155,900 7,323,100 3,974,600 3,100,000 248,500 7,323,100

4,253,800 4,253,800 10,000 3,090,000 3,100,000

4,445,900 4,445,900

4,156,000 4,156,000 10,000 3,143,700 3,153,700

4,205,900 4,205,900

3,100,000 3,100,000

3,168,400 3,168,400

248,500 248,500 7,602,300 3,675,100 3,771,300 155,900 7,602,300 4,253,800 3,100,000 248,500 7,602,300

248,500 248,500 7,794,400 3,871,300 3,767,200 155,900 7,794,400 4,445,900 3,100,000 248,500 7,794,400

247,500 247,500 7,557,200 3,630,000 3,771,300 155,900 7,557,200 4,156,000 3,153,700 247,500 7,557,200

244,800 244,800 7,619,100 3,696,000 3,767,200 155,900 7,619,100 4,205,900 3,168,400 244,800 7,619,100

Laboratory Services is responsible for the prompt detection and identification of a wide variety of microorganisms, i.e., bacteria and viruses, and toxic chemical substances that pose a threat to the publics health. This program also provides clinical testing on a large scale to detect congenital abnormalities in newborns and specific tests related to chronic disease disorders that affect the public. The state and nations health is protected through disease surveillance activities that use sophisticated equipment and result in early detection of outbreaks caused by emerging infectious diseases. Additionally, foodborne illnesses are detected in support of the Food Safety Modernization Act (FSMA), which was signed into law on January 4, 2011. The information provided by Laboratory Services is essential for guiding epidemiologic investigations that determine the measures needed to prevent and control the spread of disease. The program works closely with the Division of Epidemiology and Health Planning to provide emergency response capability if such disease outbreaks or other public health emergencies occur. The program tests mailed or shipped packages and substances with suspected links to chemical or biological terrorism in a highly secure, CDC inspected and approved facility by well-trained staff using state of the art equipment. Examinations of clinical and environmental specimens are provided to support other state and local health department programs and diagnostic testing not readily available elsewhere for hospitals and practicing physicians. Additionally, environmental samples are tested for water fluoride levels, and milk, food and water are examined for evidence of contamination. Pesticide analyses and occupational safety and health chemistry are also performed. The state general fund is the primary funding source. Federal funds are received from grants and a cooperative agreement with Occupational Safety and Health Administration and agency fees are collected for newborn metabolic screening. The state public health laboratory is certified by the College of American Pathologists as a high-complexity laboratory, obligating it to meet the most stringent of requirements. Policy The Executive Budget authorizes the purchase of two tandem mass spectrometers in the Department for Public Healths Newborn Screening Lab. The total amount of the project is $1,040,000 and the equipment will be purchased with fees from the Newborn Screening Program.

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Health and Family Services Public Health Public Health Protection and Safety Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

3,518,700 3,518,700 165,400 5,873,000 6,038,400 290,300 1,685,900 1,976,200 11,533,300 5,378,800 1,306,000 4,810,100 11,494,900 3,518,700 6,000,000 1,976,200 11,494,900

4,627,300 4,627,300 38,400 5,708,500 5,746,900

4,945,100 4,945,100 33,000 5,708,500 5,741,500

3,705,400 3,705,400 38,400 5,898,200 5,936,600

3,756,700 3,756,700 33,000 5,950,300 5,983,300

1,976,200 1,976,200 12,350,400 5,844,200 1,307,500 5,165,700 12,317,400 4,627,300 5,713,900 1,976,200 12,317,400

1,976,200 1,976,200 12,662,800 6,166,600 1,307,500 5,161,100 12,635,200 4,945,100 5,713,900 1,976,200 12,635,200

1,975,800 1,975,800 11,617,800 5,786,600 1,307,500 4,490,700 11,584,800 3,705,400 5,903,600 1,975,800 11,584,800

1,959,600 1,959,600 11,699,600 5,898,400 1,307,500 4,466,100 11,672,000 3,756,700 5,955,700 1,959,600 11,672,000

Public Health Protection and Safety provides a variety of environmental services, from monitoring exposure to radiation to ensuring sanitation of food, milk, and public facilities. This program provides technical consultation, guidance and training to the sixty-one (61) local health jurisdictions; some 500 local health department environmental registered sanitarians; and provides regulatory oversight to thousands of Kentuckys regulated businesses. The programs mission statement is: promoting a healthier, safer public through prevention, education, communication, and regulation. The Radiation subprogram inspects and issues over 720 specific licenses to users of radioactive materials, and registers and inspects over 200 users of radiation sources. The subprogram monitors the transportation of radioactive waste, within and through the Commonwealth, and is mandated and equipped to respond to radiological emergencies 24 hours a day. The subprogram registers and inspects more than 4,000 facilities with 10,600 X-Ray tubes, and conducts reviews and inspects approximately 164 mammography facilities and shielding plans for facilities. The subprogram also operates a radiation health laboratory which collects and analyzes approximately 5,000 environmental samples for radiologic contamination annually and conducts over 7,000 analyses on the samples. This subprogram also provides monitoring for radiologic sites such as the Maxey Flats Disposal Site and the Paducah Gaseous Diffusion Plant. Approximately 17,000 quality control analyses are also conducted annually. The Milk Safety subprogram operates under KRS 217C, to prevent adulteration, misbranding, and false advertising of milk and milk products and protect the public from disease transmission through milk products. This mandate is achieved through inspections of dairy farms, dairy plants, micro-processors, distributors, milk haulers, and all other identities which improve the quality of milk that is produced and sold to the public. This subprogram also monitors the development of product standards of identity and legal labeling for all dairy products as mandated by the U.S. Food and Drug Administration and the U.S. Department of Agriculture. Kentucky adopted the 2011 edition of the Pasteurize Milk Ordinance, a federally mandated ordinance which ensures certain quality standards and which allows milk produced and processed in Kentucky to be produced, processed, transported and sold to all other forty-nine states. The Food Safety subprogram provides regulatory oversight to Kentuckys multi-billion dollar food industry. The subprogram provides training and technical consultation to local health department employees who inspect food service establishments, retail food stores, vending machine companies, tattoo studios, body piercing facilities, boarding homes, tanning facilities, and bed and breakfast establishments in order to prevent the spread of communicable diseases and injuries. The subprogram also directly regulates food manufacturing and storage programs and the farmers market for program compliance with state regulation. The subprogram responds to and investigates food recalls and works closely with the federal Food and Drug Administration on outbreak investigation involving regulated foods. The Food Safety subprogram is also actively involved during natural and
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man-made disasters to protect the food supply. The Environmental Management subprogram is responsible for the oversight and regulatory requirements involving public facilities, including hotels/motels, public restrooms, schools, state confinement facilities, public swimming and bathing facilities, mobile home/recreational vehicle parks/communities, and youth camps through annual operating permits and routine inspections as required by law. The subprogram provides technical assistance and training to the sixty-one (61) local health departments which provide direct inspection of the regulated entities. The subprogram is also responsible for: conducting initial certification and ongoing specialized trainings to local health department environmental staff; providing continuing education for septic system installers; providing consumer education on such issues as mold and bedbugs; operating a radon education program; providing support for the rabies control program and consulting on issues regarding private water sources. This subprogram also ensures that public health nuisances (illegal garbage dumps, accumulation of trash and garbage, rodent infestations, mosquito infestations, and untreated sewage) are investigated and abated by local health department inspectors. Through its education, investigation, permitting, and inspection activities, the Environmental Management Branch has a direct effect on protecting the lives of the public as well as, the operation of most private business entities. The Public Safety subprogram is responsible for the regulation and certification of lead abatement professionals and clearance testing of mitigated properties. This subprogram also oversees the public swimming pool construction program and the methamphetamine contaminated properties program. Public Safety provides epidemiological support for disease cluster investigations and supports statistical and standardized reporting of environmental data. Policy The Executive Budget includes General Fund of $216,500 in fiscal year 2015 and $433,000 in fiscal year 2016 for debt service for an equipment replacement project in the Department for Public Healths Radiation Monitoring Section. The continued functioning and efficiency of the laboratory is critical to the ability of the Commonwealth to respond to radiologic events and is central to Kentuckys ability to fulfill its statutory mandate to protect the public from radiological exposures.

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Health and Family Services Health Policy Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Office of Health Policy TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

440,200 1,200 441,400 737,600 553,700 -25,000 1,266,300 1,707,700 747,000 47,300 421,700 1,216,000 441,400 774,600 1,216,000 1,216,000 1,216,000

670,900

720,300

448,000

455,400

670,900 491,700 553,800 -25,000 1,020,500 1,691,400 982,600 47,300 415,600 1,445,500 670,900 774,600 1,445,500 1,445,500 1,445,500

720,300 245,900 553,700 -25,000 774,600 1,494,900 1,032,000 47,300 415,600 1,494,900 720,300 774,600 1,494,900 1,494,900 1,494,900

448,000 491,700 589,000 -25,000 1,055,700 1,503,700 794,900 47,300 415,600 1,257,800 448,000 809,800 1,257,800 1,257,800 1,257,800

455,400 245,900 597,400 -25,000 818,300 1,273,700 810,800 47,300 415,600 1,273,700 455,400 818,300 1,273,700 1,273,700 1,273,700

The Office of Health Policy is charged with administering the state certificate of need program and coordinating with other Cabinet for Health and Family Services (CHFS) agencies as well as state agencies outside CHFS regarding health care policy issues and health data collection. There are two functions within the Office of Health Policy: Health Planning and Development and Certificate of Need. The Health Planning and Development staff seeks to provide coordination among state agencies and programs including: The Department for Medicaid Services, Department for Behavioral Health and Developmental and Intellectual Disabilities and the Department for Public Health as well as agencies outside the Cabinet such as Department of Insurance and the Kentucky Employees Health Plan. In addition to coordinating health policy and health insurance issues, staff oversees legislative and regulatory efforts to ensure that proposed statutes and regulations are consistent across departments, consistent with the overall goals of the cabinet, and develops health insurance policy in coordination with the Kentucky Department of Insurance. Staff is also responsible for collecting and analyzing statewide health data critical for sound decision making. Through its policy work, data collection and analysis, the Office identifies opportunities for preparing and distributing relevant information to the public about health, health care and public policy. The Certificate of Need (CON) staff is responsible for administering the certificate of need program in order to prevent the proliferation and/or duplication of health care facilities, health services and major medical equipment that increase the cost of health care within the Commonwealth. Staff are responsible for developing the State Health Plan which guides the decisionmaking process for many types of CON applications. The proposed State Health Plan goes through an extensive review process allowing for comment and input from the public as well as the provider community. A certificate of need is required to establish a health facility; to change bed capacity of health facility; to make a substantial change in a project (as defined by KRS Chapter 216 B.015); to add a health service for which there are review criteria in the state health plan; to add a service subject to licensure; to obligate a capital expenditure or acquire major medical equipment which exceeds a specific threshold; or to change the geographic area which has been designated on a certificate of need or license.

181

Health and Family Services Family Resource Centers and Volunteer Services Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Family Resource and Youth Services Center Kentucky Com. Community Volunteerism and Serv. TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

439,100 1,800 440,900 25,300 68,300 93,600 270,400 2,798,700 3,069,100 3,603,600 207,700 240,900 3,155,000 3,603,600 440,900 93,600 3,069,100 3,603,600 415,500 3,188,100 3,603,600

7,855,800

7,908,700

466,400

479,300

7,855,800

7,908,700

466,400

479,300

41,300 41,300

41,300 41,300

3,069,100 3,069,100 10,966,200 498,600 191,600 10,276,000 10,966,200 7,855,800 41,300 3,069,100 10,966,200 7,815,200 3,151,000 10,966,200

3,069,100 3,069,100 10,977,800 551,500 190,100 10,236,200 10,977,800 7,908,700 3,069,100 10,977,800 7,855,100 3,122,700 10,977,800

3,069,100 3,069,100 3,576,800 253,600 193,100 3,130,100 3,576,800 466,400 41,300 3,069,100 3,576,800 424,400 3,152,400 3,576,800

3,069,100 3,069,100 3,548,400 268,500 189,600 3,090,300 3,548,400 479,300 3,069,100 3,548,400 427,300 3,121,100 3,548,400

The Department for Family Resource Centers and Volunteer Services is comprised of two separate programs: Family Resource and Youth Service Centers and the Kentucky Commission on Community Volunteerism and Services.

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Health and Family Services Family Resource Centers and Volunteer Services Family Resource and Youth Services Center Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

203,400 900 204,300 62,000 149,200 211,200 415,500

7,604,000

7,643,900

213,200

216,100

7,604,000

7,643,900

213,200

216,100

211,200 211,200 7,815,200 278,400 100,000 7,436,800 7,815,200 7,604,000 211,200 7,815,200

211,200 211,200 7,855,100 318,300 100,000 7,436,800 7,855,100 7,643,900 211,200 7,855,100

211,200 211,200 424,400 31,300 102,200 290,900 424,400 213,200 211,200 424,400

211,200 211,200 427,300 34,200 102,200 290,900 427,300 216,100 211,200 427,300

100,000 315,500 415,500 204,300 211,200 415,500

The Kentucky Education Reform Act (KERA) of 1990, KRS 156.496 and KRS 156.4977 as amended, created the Family Resource and Youth Services Centers (FRYSC). FRYSC provides administrative, technical assistance, and training support to the local school-based FRYSC. The primary goal of these centers is to enhance student ability to succeed in school by developing and sustaining partnerships that promote early learning and successful transition into school, academic achievement and well-being, graduation, and transition into adult life. Each center has a unique blend of program components depending on location, available services, local need, and community input designed to promote the flow of resources and support to families in ways that strengthen their functioning and further the growth and development of each member. Services may include after-school child care, literacy programs, home visits to new/expectant parents, support and training for child day care providers, referrals to social services, employment counseling, summer and part-time job development, drug/alcohol counseling, and family crisis and mental health counseling. Centers also offer programs such as peer mediation, conflict resolution, pregnancy prevention and job shadowing.

183

Health and Family Services Family Resource Centers and Volunteer Services Kentucky Com. Community Volunteerism and Serv. Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

235,700 900 236,600 25,300 68,300 93,600 208,400 2,649,500 2,857,900 3,188,100 207,700 140,900 2,839,500 3,188,100 236,600 93,600 2,857,900 3,188,100

251,800

264,800

253,200

263,200

251,800

264,800

253,200

263,200

41,300 41,300

41,300 41,300

2,857,900 2,857,900 3,151,000 220,200 91,600 2,839,200 3,151,000 251,800 41,300 2,857,900 3,151,000

2,857,900 2,857,900 3,122,700 233,200 90,100 2,799,400 3,122,700 264,800 2,857,900 3,122,700

2,857,900 2,857,900 3,152,400 222,300 90,900 2,839,200 3,152,400 253,200 41,300 2,857,900 3,152,400

2,857,900 2,857,900 3,121,100 234,300 87,400 2,799,400 3,121,100 263,200 2,857,900 3,121,100

The Kentucky Commission for Community Volunteerism and Services (KCCVS) was created in 1994 to serve as a conduit for federal funds that support AmeriCorps programs in the Commonwealth and to assume responsibility for the statewide coordination of volunteer activities. Federal funds received by KCCVS are contracted to community organizations that, in turn, receive local matching funds, which include cash and in-kind services. AmeriCorps members provide household budget training, home renovation assistance, life skills training, and services to help senior citizens live independently. They train volunteers, serve the homeless, mentor at-risk youth, and offer assistance to victims of natural disasters. In addition, participants tutor children in math and reading and provide drug abuse prevention education in elementary and secondary schools. Children tutored by AmeriCorps members tend to advance a minimum of two reading levels during the school year. AmeriCorps volunteers in Kentucky have received more than $15,000,000 in federal educational vouchers for their years of service.

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Health and Family Services Income Support Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Disability Determinations Child Support TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

8,644,100 8,644,100 15,629,800 121,000 15,750,800 6,751,100 79,079,400 85,830,500 110,225,400 34,139,200 5,126,000 70,905,300 54,900 110,225,400 8,644,100 15,750,800 85,830,500 110,225,400 54,307,000 55,918,400 110,225,400

8,644,100 8,644,100 15,859,600 121,000 15,980,600

12,670,100 12,670,100 16,009,800 121,000 16,130,800

8,225,700 8,225,700 15,859,600 121,000 15,980,600

8,225,700 8,225,700 16,009,800 121,000 16,130,800

78,417,200 78,417,200 103,041,900 36,858,800 5,122,900 61,060,200

80,108,900 80,108,900 108,909,800 38,696,000 5,127,600 61,060,200 4,026,000 108,909,800 12,670,100 16,130,800 80,108,900 108,909,800 47,847,900 61,061,900 108,909,800

78,417,200 78,417,200 102,623,500 36,509,800 5,486,400 60,627,300

80,108,900 80,108,900 104,465,400 37,150,600 6,687,500 60,627,300

103,041,900 8,644,100 15,980,600 78,417,200 103,041,900 46,447,700 56,594,200 103,041,900

102,623,500 8,225,700 15,980,600 78,417,200 102,623,500 46,447,700 56,175,800 102,623,500

104,465,400 8,225,700 16,130,800 80,108,900 104,465,400 47,847,900 56,617,500 104,465,400

The Department for Income Support is responsible for administering Child Support Enforcement and Disability Determination Services. These programs help to ensure that children are financially supported by parents who are legally obligated to pay child support and to determine medical eligibility for residents of the Commonwealth who apply for Social Security and Supplemental Security Income disability benefits from the federal government. The Departments mission is to facilitate financial and medical support services that enhances family wellness.

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Health and Family Services Income Support Disability Determinations Revised FY 2014 SOURCE OF FUNDS Restricted Funds Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

121,000 121,000 511,100 53,674,900 54,186,000 54,307,000 25,770,900 2,989,400 25,491,800 54,900 54,307,000 121,000 54,186,000 54,307,000

121,000 121,000

121,000 121,000

121,000 121,000

121,000 121,000

46,326,700 46,326,700 46,447,700 27,808,500 2,990,400 15,648,800 46,447,700 121,000 46,326,700 46,447,700

47,726,900 47,726,900 47,847,900 29,207,100 2,992,000 15,648,800 47,847,900 121,000 47,726,900 47,847,900

46,326,700 46,326,700 46,447,700 27,550,200 3,248,700 15,648,800 46,447,700 121,000 46,326,700 46,447,700

47,726,900 47,726,900 47,847,900 28,064,500 4,134,600 15,648,800 47,847,900 121,000 47,726,900 47,847,900

Disability Determination Services (DDS) determines medical eligibility for residents of the Commonwealth who apply for Social Security and Supplemental Security Income disability benefits from the federal government. The DDS reevaluates the claims of disability recipients who have been selected for a periodic review of their medical condition and conducts face-to-face evidentiary hearings for those individuals who appeal an unfavorable review of their continuing eligibility. Disability Determination Services workload depends upon: 1) the number of individuals who apply for disability benefits through the Social Security Administration (SSA), 2) the number of claims that SSA selects for continuing review and sends to DDS, and 3) Congressional mandates, legal actions or other initiatives.

186

Health and Family Services Income Support Child Support Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Current Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

8,644,100 8,644,100 15,629,800 15,629,800 6,240,000 25,404,500 31,644,500 55,918,400 8,368,300 2,136,600 45,413,500 55,918,400 8,644,100 15,629,800 31,644,500 55,918,400

8,644,100 8,644,100 15,859,600 15,859,600

12,670,100 12,670,100 16,009,800 16,009,800

8,225,700 8,225,700 15,859,600 15,859,600

8,225,700 8,225,700 16,009,800 16,009,800

32,090,500 32,090,500 56,594,200 9,050,300 2,132,500 45,411,400 56,594,200 8,644,100 15,859,600 32,090,500 56,594,200

32,382,000 32,382,000 61,061,900 9,488,900 2,135,600 45,411,400 4,026,000 61,061,900 12,670,100 16,009,800 32,382,000 61,061,900

32,090,500 32,090,500 56,175,800 8,959,600 2,237,700 44,978,500 56,175,800 8,225,700 15,859,600 32,090,500 56,175,800

32,382,000 32,382,000 56,617,500 9,086,100 2,552,900 44,978,500 56,617,500 8,225,700 16,009,800 32,382,000 56,617,500

The Child Support Program under Title IV-D of the Social Security Act (PL 93-647) is designed to ensure that children are financially supported by parents who are legally obligated to pay child support. Both the state and federal governments share costs to conduct this program. State statutes governing the operation of this program were enacted under the Kentucky Child Support Recovery Act and are contained in KRS 205.710 - KRS 205.800. The core functions of the child support program include locating parents; establishing paternity; establishing, enforcing, and modifying child support orders; and collecting and disbursing child support payments. Program responsibilities include the establishment and enforcement of medical support. In addition to traditional judicial processes, state and federal laws allow the Child Support Program to accomplish its mission through administrative processes such as in-hospital paternity establishment, wage assignments, liens and levies on personal property and assets, and offsetting tax refunds and unemployment benefits. The Child Support Program maintains program administration contracts with 117 county officials to provide child support collection locally. Child support services are automatically provided to families receiving assistance under the Kentucky Transitional Assistance Program (K-TAP) or Medicaid, and to children placed in the care of the Cabinet for Health and Family Services. Payment collected for families receiving K-TAP and children in the care of the Cabinet for Health and Family Services is used to reimburse the state and federal governments for benefits expended on behalf of those families and children. Families that do not participate in the cash or medical assistance programs may also apply for child support services. The Child Support Enforcement Program receives incentive payments from the federal government based on program performance in five program areas; Paternity Establish Performance for Title IV-D and Statewide, Support Order Performance, Current Payment Performance, Arrearage Payment Performance and Cost-Effectiveness Performance. The Deficit Reduction Act (DRA) of 2005 disallowed use of federal performance incentives as state matching funds for Federal Financial Participation (FFP).

187

Health and Family Services Community Based Services Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Other Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Family Support Energy Child Care Family and Community Services TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

330,465,500 381,200 105,000

427,122,000

448,224,300

397,634,800

406,581,400

-1,060,000 330,951,700 8,715,000 100,000 -205,000 8,610,000 8,820,200 159,438,500 -21,664,700 146,594,000 1,565,200 479,706,200 481,271,400 967,427,100 283,670,700 46,262,900 632,071,100 962,004,700 330,451,700 8,610,000 141,671,600 481,271,400 962,004,700 368,017,200 31,694,700 90,849,800 471,443,000 962,004,700 426,062,000 8,715,000

-1,080,000 447,144,300 8,715,000 397,634,800 8,715,000 406,581,400 8,715,000

8,715,000 4,922,400 175,016,300 -21,945,700 157,993,000

8,715,000 2,457,800 182,439,800 -21,403,100 163,494,500

8,715,000 4,922,400 160,291,400 -18,624,400 146,589,400

8,715,000 2,162,600 161,745,700 -17,053,800 146,854,500

491,948,700 491,948,700 1,084,718,700 319,128,600 52,863,400 710,268,900 1,082,260,900 426,062,000 8,715,000 155,535,200 491,948,700 1,082,260,900 382,337,000 29,992,700 146,800,400 523,130,800 1,082,260,900

498,379,600 498,379,600 1,117,733,400 337,960,500 53,606,600 726,144,200 1,117,711,300 447,144,300 8,715,000 163,472,400 498,379,600 1,117,711,300 391,089,800 29,995,500 152,493,100 544,132,900 1,117,711,300

490,891,800 490,891,800 1,043,831,000 308,100,700 45,445,000 688,122,700 1,041,668,400 397,634,800 8,715,000 144,426,800 490,891,800 1,041,668,400 381,420,800 29,992,700 147,740,900 482,514,000 1,041,668,400

500,810,500 500,810,500 1,062,961,400 317,784,200 47,171,800 698,005,400 1,062,961,400 406,581,400 8,715,000 146,854,500 500,810,500 1,062,961,400 388,520,900 29,995,500 159,352,600 485,092,400 1,062,961,400

The Department for Community Based Services (DCBS) is responsible for administering the following programs: Family Support (including Temporary Assistance to Needy Families; Supplementation Nutrition Assistance Program; Medicaid and health insurance affordability program eligibility; and State Supplementation for aged, blind or disabled individuals); Energy Assistance; Child Care; and Family and Community Based Services (including Family Based Services, Adult Services and Alternatives for Children). These programs benefit Kentuckians who are without sufficient resources to meet their basic needs. The Departments mission is to preserve the family as a unit when possible and protect individuals from abuse, neglect, and exploitation with safety and permanency as the paramount goals.

188

Policy A Current Year Appropriation from the General Fund in the amount of $105,000 in fiscal year 2014 is included to maintain budgeted levels of service in the Child Care program in response to the expected reduction in Tobacco Settlement-Phase I payments to the Commonwealth in April, 2014 resulting from an arbitration action.

189

Health and Family Services Community Based Services Family Support Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Supplemental Nutrition Assistance Program Medical Assistance State Supplementation TANF TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

129,350,900 129,350,900 1,420,100 1,667,600 21,606,800 24,694,500 150,200 214,473,400 214,623,600 368,669,000 134,845,900 22,934,800 210,236,500 368,017,200 129,350,900 24,042,700 214,623,600 368,017,200 88,044,200 45,019,300 15,865,400 219,088,300 368,017,200

135,715,800 135,715,800 651,800 1,667,600 24,495,500 26,814,900

138,590,600 138,590,600 325,900 1,667,600 27,192,100 29,185,600

135,814,400 135,814,400 651,800 2,516,200 23,214,600 26,382,600

137,326,600 137,326,600 30,700 3,968,000 24,756,300 28,755,000

220,132,200 220,132,200 382,662,900 145,969,800 25,502,600 210,864,600 382,337,000 135,715,800 26,489,000 220,132,200 382,337,000 96,178,900 49,128,100 15,905,200 221,124,800 382,337,000

223,313,600 223,313,600 391,089,800 154,519,300 25,705,900 210,864,600 391,089,800 138,590,600 29,185,600 223,313,600 391,089,800 100,400,200 52,895,400 15,933,300 221,860,900 391,089,800

219,254,500 219,254,500 381,451,500 147,804,800 22,251,400 211,364,600 381,420,800 135,814,400 26,351,900 219,254,500 381,420,800 94,660,000 49,128,100 16,115,900 221,516,800 381,420,800

222,439,300 222,439,300 388,520,900 152,545,600 24,610,700 211,364,600 388,520,900 137,326,600 28,755,000 222,439,300 388,520,900 97,277,600 52,895,400 16,481,400 221,866,500 388,520,900

Family Support consists of the following programs: Temporary Assistance to Needy Families (TANF); Supplemental Nutrition Assistance Program (SNAP), formerly known as Food Stamps; eligibility determination for Medicaid and for health insurance premium assistance through the Kentucky Health Benefit Exchange; and State Supplementation Program for persons who are aged, blind, or have a disability (State Supplementation). The programs administered by the Division of Family Support are designed to promote self-sufficiency, job training assessment, and the delivery of basic essential services for families and children who need assistance. Programs are accessible to all residents of Kentucky counties. Each local office has the responsibility to determine eligibility, provide facts and information of available benefits as well as the regulatory limitations of available benefits, and maintain case record information. The National Voter Registration Act of 1993, also known as the Motor-Voter Act, requires agencies that deliver services to persons with disabilities or provide benefits under the Temporary Assistance for Needy Families/Kentucky Transitional Assistance Program, Special Supplemental Nutrition Programs for Women, Infants and Children (WIC), Medicaid, or SNAP, as well as Armed Forces Recruiting Stations and driver licensing stations to make available voter registration applications to their clients. Since Family Support administers two of these programs, it distributes voter registration forms, provides assistance in completing these forms, and ensures completed forms reach the proper state election office for processing in order to comply with this mandate. Temporary Assistance for Needy Families (TANF) The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193) amended and combined Title IV-A (Aid for Families with Dependent Children or AFDC) and Title IV-F (Job Opportunities and Basic Skills Training Program or JOBS) of the Social Security Act to provide block grants to states for TANF. These federal funds support the programs administrative and benefit expenditures that include personnel, operating, and indirect costs; contracts with partnering agencies;
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cash assistance subsidies; supportive services; child care; and transportation. A Maintenance of Effort requirement mandates that states spend at least 80 percent of fiscal year 1994 expenditures on the program each year. For Kentucky, this amount is $71.9 million per year. The Kentucky Transitional Assistance Program (K-TAP) is the Commonwealths cash assistance program for families with a dependent child who is deprived of parental support due to the continued absence, unemployment, incapacity, or death of one or both parents. Monthly payments are designed to help adults find a job or obtain training that leads to employment. Gross income must fall below a level appropriate for the familys size, and total family resources cannot exceed agency limits. The Kentucky Works Program assists recipients with their transition into the workforce and attainment of self-sufficiency. Adults receiving K-TAP benefits must participate in this program and, with the help of a case manager, develop a Transitional Assistance Agreement. Kentucky Works Program activities include employment, on-the-job training, work experience training programs, a job search/job readiness component, vocational training or other educational services, community service, high school completion for teen parents, and other activities necessary to prepare for employment. Referrals to providers of transportation, child care, and supportive services such as car repairs and supplies ensure that individuals are able to take part in this program. Safety Net Services are available to former K-TAP families who lose cash assistance as a result of time limits or failure to comply with requirements of the Kentucky Works Program. Families with an income at or below 200 percent of the federal poverty level can access temporary benefits to meet basic needs such as shelter, food, clothing, or utilities. Following a qualifying event, a total of $635 may be authorized for four months during a 12-month period. The Family Alternatives Diversion Program (FAD) provides an alternative for families, who, while otherwise eligible, choose not to receive K-TAP cash assistance. A maximum of $1,300 is available to assist the family with immediate needs such as food, shelter, transportation, etc. These benefits may be authorized for a three-month period. FAD may be approved once during a 24-month period and no more than twice in a lifetime. The Kinship Care Program provides financial assistance and support services to non-parental relatives caring for children who cannot remain in the home of their parents due to abuse, neglect, or the death of both parents. Effective April 1, 2013, the Department for Community Based Services (DCBS) issued a moratorium impacting a childs initial eligibility for the Kinship Care Program; however, the moratorium did not apply to previously existing beneficiaries. A one-time relative placement support benefit and K-TAP are available to address a childs immediate and ongoing needs, respectively, upon placement by the Department with a qualified relative caregiver as an alternative to foster care. Efforts to partner with local communities to achieve the goals of self-sufficiency, protection, and permanency for Kentuckys families continue. The flexibility of the TANF block grant has allowed the Department to pursue initiatives such as change management and organizational restructuring and, as a result, better address the needs of those striving to escape a life of dependency. Medicaid Eligibility and Health Insurance Affordability DCBS determines eligibility for the Medicaid program under a contract with the Department for Medicaid Services. The Medicaid program is authorized under Title XIX of the U.S. Social Security Act and KRS 205.520 and has expanded through state option made available through the Patient Protection and Affordable Care Act (P.L. 111-148), as amended by Health Care and Education Reconciliation Act (P.L. 111-152). The Department provides eligibility determination services for health insurance premium assistance program via the state-based American Health Benefit Exchange (Kentucky Health Benefit Exchange) established in accordance with P.L. 111-148, as amended, and 42 U.S.C. 18031 State Supplementation The State Supplementation Program, authorized by KRS 205.245, provides financial support to aged, blind, or disabled individuals who have insufficient income to meet their needs in a licensed personal care home or family care home, or to purchase caretaker services designed to prevent institutionalization. To be eligible, persons must meet the criteria of the Social Security Income program related to age, blindness or disability as well as additional requirements associated with citizenship, Kentucky residency, and special needs. Supplemental Nutrition Assistance Program (SNAP) The Supplemental Nutrition Assistance Program (SNAP), formerly known as Food Stamps, helps low-income persons purchase food for a nutritional diet. SNAP has its origins in the Food Stamp Act of 1964 (P.L. 88-525). It is designed to promote the general welfare and safeguard the health and well-being of the nations population by raising nutritional levels among low-income households. Household is defined as any individual, family, or group of people living with each other who buy and prepare food together. To qualify, each household must meet eligibility standards. The SNAP Employment and Training Program (E & T) is designed to assist able-bodied SNAP recipients obtain employment that leads to self-sufficiency. In Kentucky, E & T serves only non-exempt work registrants between the ages of 18 and 49, otherwise known as Able-Bodied Adults without Dependents. Recipients of this service must participate and comply with E & T requirements in order to maintain their SNAP eligibility.

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Policy The Executive Budget includes General Fund of $1,000,000 in each fiscal year for relative placement support benefits to meet the initial home set-up needs of children being placed in the custody and/or care of non-parental relatives.

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Health and Family Services Community Based Services Energy Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,705,900 1,705,900 29,988,800 29,988,800 31,694,700 41,400 9,400 31,643,900 31,694,700 1,705,900 29,988,800 31,694,700 29,992,700 29,992,700 29,992,700 45,300 11,000 29,936,400 29,992,700 29,995,500 29,995,500 29,995,500 48,100 11,000 29,936,400 29,995,500 29,992,700 29,992,700 29,992,700 44,200 11,000 29,937,500 29,992,700 29,995,500 29,995,500 29,995,500 44,600 11,000 29,939,900 29,995,500

29,992,700 29,992,700

29,995,500 29,995,500

29,992,700 29,992,700

29,995,500 29,995,500

The Low Income Home Energy Assistance program is a federally funded program that helps low-income households meet their home heating and/or cooling needs through direct fuel bill subsidies and weatherization services. The Home Energy Assistance program, authorized by KRS 205.400, provides support with home heating/cooling costs for lowincome households. Services include accepting applications, determining eligibility, implementing an outreach component, and coordinating this program with other energy assistance initiatives. Eligibility criteria include income that does not exceed 130 percent of the federal poverty level, resources that total less than $2,000 (or $3,000 if at least one person in the household is either age 60 or older or disabled, $4,000 if there is a catastrophic illness in the household), and the responsibility for home heating expenses. This program is divided into two components. The subsidy component assists recipients with home heating costs for which they are responsible either by direct payment or as an undesignated portion of their rent. The crisis component assists eligible households experiencing a home energy emergency involving imminent loss of heating energy.

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Health and Family Services Community Based Services Child Care Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Current Year Appropriation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

9,292,400 105,000 9,397,400 8,540,000 100,000 -205,000 8,435,000 26,100 48,200 74,300 72,967,400 72,967,400 90,874,100 10,384,400 617,600 79,847,800 90,849,800 9,397,400 8,435,000 50,000 72,967,400 90,849,800

65,243,000 65,243,000 8,540,000

70,935,700 70,935,700 8,540,000

62,128,600 62,128,600 8,540,000

67,621,600 67,621,600 8,540,000

8,540,000 24,300 48,900 73,200 72,967,400 72,967,400 146,823,600 10,573,000 642,500 135,584,900 146,800,400 65,243,000 8,540,000 50,000 72,967,400 146,800,400

8,540,000 23,200 48,900 72,100 72,967,400 72,967,400 152,515,200 10,706,800 642,900 141,143,400 152,493,100 70,935,700 8,540,000 50,000 72,967,400 152,493,100

8,540,000 24,300 48,900 73,200 77,022,300 77,022,300 147,764,100 13,308,300 982,900 133,449,700 147,740,900 62,128,600 8,540,000 50,000 77,022,300 147,740,900

8,540,000 23,200 48,900 72,100 83,118,900 83,118,900 159,352,600 14,892,600 1,129,900 143,330,100 159,352,600 67,621,600 8,540,000 72,100 83,118,900 159,352,600

The Child Care Program administers the child care assistance subsidy program, the STARS quality rating system, as well as a professional development framework for child care providers. The primary funding services for the program include the Child Care Development fund, state general fund and tobacco funds. The Child Care Development Fund (CCDF) was created by Congress in August 1996 as part of the federal welfare reform legislation. Child care services delivered through CCDF are designed to promote, expand, and improve the quality of care for children in Kentucky and ensure that families most in need are aware of and have access to available, quality child care which is developmentally appropriate, affordable, and safe. The Cabinet for Health and Family Services approach to service delivery combines the efforts of Cabinet staff and other service providers to address a familys needs in a comprehensive fashion thereby maximizing the likelihood that a family will achieve positive outcomes. Child Care serves Kentuckys most vulnerable children prioritizing children receiving child protective or preventive services, Temporary Assistance for Needy Families (TANF) recipients and persons transitioning off TANF, children with special needs, and teen parents. Children of low income working families are also eligible for child care assistance. CCDF Regulation 45 C.F.R. Section 98.51 mandates that no less than four percent (4%) of the aggregate funds expended by the lead agency for the fiscal year be spent for quality activities which include child care health and safety requirements, STARS for KIDS NOW and early care and education professional development. Moreover, CCDF requires that additional funding be set aside for quality initiatives to address the following topics: infant and toddler care, school age care and resource and referral services. Child Care invests in support services required to allow parents to be self-sufficient without sacrificing the well-being of their children. The CCDF was last reauthorized in 2005 and the goals of access and quality compete for limited childcare resources.

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The Child Care Assistance Program is one of the support services directed at: (1) eliminating barriers to work and education for parents; (2) strengthening and maintaining client families; (3) providing early educational opportunities for at-risk children; (4) preventing or remedying abuse, neglect or exploitation of children; (5) preventing family dissolution; and (6) preventing out of home placements; These services are provided by subsidized child care through the CCDF for full and part-day care through the use of licensed providers, certified family child care homes and registered providers. Childcare services are intended to supplement, but not supplant, the parents responsibility for the childs protection, development, and supervision. To that end, children with special needs and child protective services cases are the top priority for the Division of Child Care. In addition, childcare funding is also used to support low-income working parents and TANF clients efforts to find and keep jobs and transition off welfare. Licensed centers and homes, certified family childcare homes, and registered providers including relative and non-relative providers meeting enrollment requirements and health and safety guidelines, are reimbursed for services at approved rates for eligible, enrolled families. Due to a projected budget shortfall in fiscal year 2014 the following changes were implemented in the Child Care Assistance Program: Effective April 1, 2013 DCBS froze intake for new low-income clients; and Effective July 1, 2013 DCBS reduced the CCAP income eligibility threshold from 150% of the 2011 Federal Poverty Level (FPL) at initial application and 165% FPL at redetermination to 100% FPL for redetermination. These changes assured that priority child populations, including children receiving protective or preventative services to avoid removal from the home; children whose parents require child care to meet work participation requirements for the Kentucky Transitional Assistance Program (K-TAP); children with special needs requiring specialized care; and teen parents would continue to receive assistance. These programmatic changes have been the most difficult decisions that DCBS has had to make in recent history. The decisions were not made without much research and deliberation; however, the agencys context left no other options. Other cost containment options that were considered for the CCAP did not contain costs to the extent necessary and did not assure that the program would avoid complete shutdown. The STARS for KIDS NOW Program is part of Kentuckys Early Childhood Initiative and is a voluntary quality rating system that places major emphasis on raising the quality level of early care and education in child care settings. STARS for KIDS NOW monetary incentives and rewards are granted to childcare providers based on environmental scoring using identified characteristics associated with positive outcomes for children and families. Through the provision of technical assistance, providers work to achieve quality indicators in their Environmental Rating Scale to achieve a STAR Level of 1 through 4. Programs receiving STARS Levels 1 through 4 rating surpass the minimum licensing or certification requirements per regulations. Programs are assessed in the following areas: staff/child ratios, group size, curriculum, family involvement, training and education of staff, regulatory compliance, and personnel practices. The Professional Development System is also part of Kentuckys Early Childhood Initiative. The Division has put in place the Kentucky Childhood Professional Development Framework which addresses the needs for education, training and credentialing of early care professionals in Kentucky and represents a culmination of months of planning and input from multiple stakeholders across the state. The Framework identifies individual core competencies, credentials, scholarships, grants, awards and training criteria to early care and education professionals. Additionally, targeted quality set-asides under CCDF are being utilized to promote and improve the quality of infant/toddler training opportunities, enhance professional development activities, improve education in child care programs, improve staff and child interactions, increase parental involvement, and facilitate regulatory compliance to all child care programs. As mandated by state legislation in 1992, childcare resource, and referral agencies (CCR&R's) provide services across the Commonwealth of Kentucky. The Cabinet contracts with the University of Kentucky, Human Development Institute through a subcontract for coordination and management of Child Care Resource and Referral (CCR&R) Network ensuring services in the fifteen (15) Area Development Districts (ADD) covering all 120 counties in Kentucky to coordinate statewide core services as outlined in KRS 199.8992. The CCR&R Network is comprised of fourteen (14) Regional Training Coordinators, fourteen (14) Regional Technical Assistance Coordinators, and two (2) Regional Technical Assistance Specialists to provide technical assistance, resources and coordination of professional development education to increase the quality of early care and education services across the commonwealth. The Department, through the Child Care program, contracts with the CHFS Office of the Inspector General (OIG) to inspect, monitor, and license center-based providers, and inspect, monitor, and certify family childcare home providers who care for up to six (6) unrelated children. The OIG is also contracted to investigate complaints against licensed and certified providers as well as to conduct fraud investigations. State statute stipulates that an individual caseload of 1:50 be maintained for continuation of quality services; however, the current average individual case load is 1:100. Collaborative efforts continue between the Child Care program and key stakeholders in order to ensure that outcomes will focus on continuing quality improvements in early learning environments. These efforts include partnerships with Head Start, the Department of Education, the Department for Public Health Division of Maternal and Child Health, Kentucky Out-of-School Alliance, Governors Office of Early Childhood, and other government and quasi-government agencies that share the common goal of increasing professionalism in early care and education, promoting quality care, and supporting early learning guidelines.

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Policy The Executive Budget includes General Fund in the amount of $52,682,500 in fiscal year 2015 and $58,132,000 in fiscal year 2016 to restore the Child Care Assistance Program (CCAP) by reopening intake to new low income children and families and restoring the eligibility threshold to fiscal year 2012 levels of 150% of federal poverty level. The Executive Budget includes $4,054,900 in fiscal year 2015 and $10,151,500 in fiscal year 2016 for the Race to the TopKentucky All*STARS federal grant to continue the Commonwealths effort to improve the quality of early learning for Kentuckys youngest citizens.

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Health and Family Services Community Based Services Family and Community Services Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Other Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Family Based Services Adult Services Alternatives For Children TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

191,822,200 381,200

226,163,200

238,698,000

199,691,800

201,633,200

-1,060,000 192,203,400 175,000 175,000 5,668,100 157,722,700 -43,271,500 120,119,300 1,415,000 162,276,600 163,691,600 476,189,300 138,399,000 22,701,100 310,342,900 471,443,000 191,703,400 175,000 115,873,000 163,691,600 471,443,000 115,380,200 35,418,000 320,644,800 471,443,000 225,103,200 175,000 175,000 4,246,300 173,299,800 -46,441,200 131,104,900

-1,080,000 237,618,000 175,000 175,000 2,108,700 180,723,300 -48,595,200 134,236,800 199,691,800 175,000 175,000 4,246,300 157,726,300 -41,839,000 120,133,600 201,633,200 175,000 175,000 2,108,700 157,728,800 -41,810,100 118,027,400

168,856,400 168,856,400 525,239,500 162,540,500 26,707,300 333,883,000 523,130,800 225,103,200 175,000 128,996,200 168,856,400 523,130,800 139,521,000 36,986,400 346,623,400 523,130,800

172,103,100 172,103,100 544,132,900 172,686,300 27,246,800 344,199,800 544,132,900 237,618,000 175,000 134,236,800 172,103,100 544,132,900 147,388,100 37,836,200 358,908,600 544,132,900

164,622,300 164,622,300 484,622,700 146,943,400 22,199,700 313,370,900 482,514,000 199,691,800 175,000 118,024,900 164,622,300 482,514,000 120,618,400 37,184,200 324,711,400 482,514,000

165,256,800 165,256,800 485,092,400 150,301,400 21,420,200 313,370,800 485,092,400 201,633,200 175,000 118,027,400 165,256,800 485,092,400 122,315,200 37,476,600 325,300,600 485,092,400

Family and Community Services are designed to provide maximum support to a family at the time of crisis to prevent the disruption of the family unit and to protect individuals from abuse, neglect, and exploitation with safety and permanency as the paramount goals. The subprograms contained in Family and Community Services are Family Based Services, Adult Services, and Alternatives for Children. The legal authority for the program is in KRS Chapters 199, 200, 209 (Adult Protection), and 600-645, and in Titles IV, XIX and XX of the Social Security Act. Family Based Services Family-based services include child protection, reunification following out-of-home placement, home safety services, preventive services for families, community-based juvenile services, family preservation services, mental health services through contracts with local comprehensive care centers, self-help services provided through local child abuse councils, and preventive assistance. Child Protective Services safeguard the rights and welfare of abused, neglected or dependent children; aid parents or other responsible persons in recognizing and remedying conditions detrimental to the welfare of their children; and identify conditions that contribute to the neglect, abuse, or dependency of children. Child Protective Services are both preventive and corrective in
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nature. The Department for Community Based Services (DCBS) is mandated to receive and investigate reports of the abuse or neglect of children. Home Safety Services provide in-home support that prevents the disruption of a family unit or expedites the return of the child by helping parents with general homemaker skills, role modeling, parenting skills, assistance in daily living skills, and direction in utilizing community services. Preventive Services to families who do not qualify for services under other program areas address a family's treatment needs before the situation has escalated to become abusive or neglectful. Family Preservation provides crisis intervention and intensive (5-20 hours per week) in-home services to families who have children at imminent risk of removal from their home. Family Reunification Services, which follow the same basic model with less intensive in-home services over a longer duration (up to 6 months), facilitate the successful return of children to the home and decrease the likelihood of repeated child placements. Self-Help Groups provide support and education for parents in crisis or at risk of further abuse or neglect of children. Juvenile Services in the community provide an array of preventive and treatment services for children adjudicated as status offenders under KRS 630. Because status offender behaviors such as running away from home, being beyond parental control and truancy are most often indicative of prior abuse or neglect of the child, services are targeted at prevention of further abuse or neglect and interventions to curb the childs negative behaviors. Appropriate services may be provided directly by DCBS or arranged through local mental health centers, Family Resource and Youth Service Centers, community partnerships, private child care agencies, and other private providers in the community. Child advocacy centers provide services to victims of child sexual abuse and their non-offending caregivers. Adult Services Adult Services includes protection and self-support. Adult services are directed toward preserving the vulnerable individual's independence to the maximum degree possible and protecting him/her from abuse, neglect or exploitation pursuant to KRS Chapters 209 and 209A. The elements of adult services are: Adult protection, Domestic violence protection, Adult home safety services (which is the direct provision of home safety services to adults at risk or in need of protection), Alternate care (also called patient movement and placement) which involves assisting individuals with appropriate community and institutional placements, Preventive services for adults which entails assessment, planning, and guidance, Services provided by domestic violence shelters and crisis centers, Services provided by rape crisis centers, and Certification of batterer intervention program providers.

Services often involve finding food, shelter, clothing, and medical treatment. Adult Self-Support includes the Community Services Block Grant, which provides funding for emergency needs of economically disadvantaged citizens. This program helps to alleviate the stresses on the family unit resulting from poverty while promoting self-sufficiency. Pursuant to KRS Chapters 209 and 209A, anyone who knows or suspects that an adult, who because of mental or physical dysfunction, or a spouse (without regard to age) is being abused, neglected or exploited must report this information to the Cabinet for Health and Family Services Department for Community Based Services. The Department is required to investigate the report, notify local law enforcement officials, offer appropriate protection and support services, and maintain case records. Homemaker Services are designed to enhance the adults ability to remain at home in the least restrictive environment. Services may include meal preparation, budgeting, grocery shopping, menu planning, doing laundry, assisting with personal hygiene, changing beds, and sweeping floors. Homemaker services are a key element in enhancing the vulnerable adults ability to remain at home and in assisting the family unit to remain intact. DCBS is involved in placement and movement of individuals into, between, and out of facilities. Placement and Movement denotes assistance provided to Medicaid-eligible individuals. Alternate Care denotes assistance to non-Medicaid eligible individuals. Approximately 56,000 Kentuckians need alternate care or placement and movement services each year. The majority of these individuals have family or friends to assist them in finding alternate living arrangements. The Department assists those individuals who are not able to locate appropriate placements. Alternate Care Services help ensure that persons are not inappropriately placed in a level of care exceeding their need and thus promotes cost effectiveness. These services also help ensure that persons assisted receive the care they require. As part of Alternate Care, the Department's family service workers make quarterly site visits to each freestanding personal care home and all family care homes to see residents and determine if their social and related needs are being met. Domestic violence shelter services are available in each of the 15 Area Development Districts under a contract between the DCBS and the Kentucky Domestic Violence Association. Part of the funding for this element is provided by a portion of the marriage license fee as authorized by KRS 209.160.
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Rape crisis centers provide services to victims of rape and sexual assault, their friends, and family members. Batterer intervention program providers are mental health professionals meeting certification standards specified by DCBS who provide services to domestic violence batterers. Alternatives for Children Alternatives for Children provides placement resources for children who have been or are at risk of being abused or neglected. The legal authority for Alternatives for Children includes KRS Chapters 199, 600 and 620, Titles IV-B and IV-E of the Social Security Act, and the Social Services Block Grant. Services are directed toward finding substitute care for children who must live apart from their family, working toward reuniting the child and family, and if that is not possible, securing an alternative living arrangement which will provide permanency for the child. Family Foster Care takes place in the home of an agency-approved family. The development of alternative resources such as the Families and Children Together Services (FACTS), Family Preservation Program, Kinship Care or non-parental relative care, and Preventative Assistance has reduced the trend of more children placed in out-of-home care. Due to a projected budget shortfall in fiscal year 2014, a moratorium was implemented on the Kinship Care Program effective April 1, 2013. Relative caregivers and children in the program as of March 31, 2013 were not impacted. Foster Parent Training, provided by DCBS staff and contractors, is required of all foster parents. Foster parents must complete 30 hours prior to approval and placement of a child and also are required to attend annual in-service training. Parents serving special needs or medically fragile children and those from family treatment homes are required to complete additional training. Care Plus Homes provide a setting where intensively trained foster parents furnish a viable alternative placement resource for children and youth who have serious emotional problems, are due to be released from treatment facilities, display aggressive or destructive behaviors or other disruptive behaviors, are at risk of being placed in more restrictive settings, are at risk of institutionalization, or have experienced numerous placement failures. Medically Fragile Foster Care serves children who need medical treatment and continuous monitoring but do not necessarily require the daily services of a nurse or doctor. Foster parents caring for these children are provided an increased reimbursement and must meet additional training and certification requirements. Independent Living services are specialized services, including classroom and experiential training, designed to enhance the self-sufficiency skills of older children in foster care, private child care, and other state funded living arrangements. Services are provided both directly by staff and by contract agencies. As they complete each phase of the training, youth receive a stipend. In addition, youth ages 18-21 who were formerly in care may receive room and board assistance for a limited time. Private Child Caring/Child Placing services and emergency shelter services are essential components of a protective service program that provides temporary placement services for children who are unable to remain in their own homes because of severe abuse, neglect, exploitation, abandonment, and/or because they have specialized treatment needs. Adoption is the legal process by which a child becomes a legal child of a person or persons other than his/her biological parents. The department provides services prior to adoption in order to bring children and families together and services after adoption through after-placement supervisory services and adoption assistance. Intensive Family Based Services are cost effective, home-based alternatives to institutionalization for children who are dually diagnosed. Services are provided through contracts with local comprehensive care centers or other appropriate contractor and may include in-home services, family therapy, respite care, behavior management and consultation, and individual counseling. Psychiatric services provide 24-hour care to DCBS committed children and youth with behavioral health or mental health issues. Services are provided by various psychiatric hospitals and psychiatric residential treatment facilities throughout Kentucky. The IMPACT Plus Program provides services for children who require treatment due to emotional diagnoses. Medicaid funds support these services through agreements with specific providers. This program seeks to divert services from inpatient settings to the community level. All children in the IMPACT Plus Program have a team of parents, educators, therapists, social services workers, and others who meet to identify services that will meet the childrens unique treatment needs. A health benefits administrator, contracted by the Department for Medicaid Services, certifies children as IMPACT Plus eligible and approves payment for services. Policy The Executive Budget includes General Fund in the amount of $250,000 in each fiscal year to supplement operating funds of domestic violence shelters and $250,000 in each fiscal year to supplement operation funds of rape crisis centers. The Executive Budget includes General Fund in the amount of $532,500 in each fiscal year for domestic violence shelters, $104,700 in each fiscal year for rape crisis centers and $199,700 in each fiscal year for child advocacy centers to fully fund the increase in employer contribution rates for the Kentucky Employees Retirement system. The Executive Budget includes savings as a result of the expansion of the Medicaid program under the Affordable Care Act. As a result of expanded coverage General Fund savings of $1,100,000 in fiscal year 2015 and $1,1 00,000 in fiscal year 2016 are included.

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Health and Family Services Aging and Independent Living Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Aging and Independent Living Guardianship TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

43,755,700 20,200 43,775,900 687,200 902,100 1,655,000 3,244,300 24,829,300 24,829,300 71,849,500 7,796,100 943,000 63,110,400 71,849,500 43,775,900 3,244,300 24,829,300 71,849,500 64,746,000 7,103,500 71,849,500

52,952,500

56,082,800

44,702,900

45,252,100

52,952,500

56,082,800

44,702,900

45,252,100

1,307,200 1,562,100 2,869,300 24,829,300 24,829,300 80,651,100 9,586,500 964,700 70,099,900 80,651,100 52,952,500 2,869,300 24,829,300 80,651,100 71,201,100 9,450,000 80,651,100

1,307,200 1,182,100 2,489,300 24,829,300 24,829,300 83,401,400 10,143,000 965,500 72,099,900 193,000 83,401,400 56,082,800 2,489,300 24,829,300 83,401,400 73,313,200 10,088,200 83,401,400

1,307,200 1,562,100 2,869,300 24,829,300 24,829,300 72,401,500 8,336,600 949,000 63,115,900 72,401,500 44,702,900 2,869,300 24,829,300 72,401,500 64,961,100 7,440,400 72,401,500

1,307,200 1,182,100 2,489,300 24,829,300 24,829,300 72,570,700 8,515,600 939,200 63,115,900 72,570,700 45,252,100 2,489,300 24,829,300 72,570,700 65,016,600 7,554,100 72,570,700

The Department for Aging and Independent Living (DAIL) sets policies and oversees programs for Kentucky's elderly and physically disabled citizens. The programs administered by the Department benefit Kentuckians by contributing to building selfsustaining families and improving the quality of life through an array of community-based services designed to help older persons, individuals with physical disabilities, and wards of the state to be as independent as possible in the least restrictive environment. Department programs also provide counseling and support services to family caregivers to enable them to provide quality care to older persons while fulfilling other family and employment responsibilities. In carrying out its programs, DAIL emphasizes successful aging, independent living, planning for an aging society, and continued involvement of older persons, adult wards of the state and physically disabled individuals in every aspect of the community. There are two program budget units within DAIL: Aging and Independent Living Services and Guardianship Services.

200

Health and Family Services Aging and Independent Living Aging and Independent Living Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

37,455,700 6,000 37,461,700 326,900 759,700 1,368,400 2,455,000 24,829,300 24,829,300 64,746,000 1,906,700 223,700 62,615,600 64,746,000 37,461,700 2,455,000 24,829,300 64,746,000

44,291,800

46,783,900

38,051,800

38,487,300

44,291,800

46,783,900

38,051,800

38,487,300

804,500 1,275,500 2,080,000 24,829,300 24,829,300 71,201,100 2,360,000 231,300 68,609,800 71,201,100 44,291,800 2,080,000 24,829,300 71,201,100

804,500 895,500 1,700,000 24,829,300 24,829,300 73,313,200 2,471,900 231,500 70,609,800 73,313,200 46,783,900 1,700,000 24,829,300 73,313,200

804,500 1,275,500 2,080,000 24,829,300 24,829,300 64,961,100 2,105,600 229,700 62,625,800 64,961,100 38,051,800 2,080,000 24,829,300 64,961,100

804,500 895,500 1,700,000 24,829,300 24,829,300 65,016,600 2,170,900 219,900 62,625,800 65,016,600 38,487,300 1,700,000 24,829,300 65,016,600

The Department for Aging and Independent Living is designated as the State Unit on Aging by the Federal Administration on Aging. In accordance with the Older Americans Act Amendments of 1965 as amended through December 2006 and 45 CFR 1321. The Aging and Independent Living program is responsible for aging issues on behalf of all older persons in Kentucky. It is required to carry out a wide range of functions related to service delivery, advocacy, planning, coordination, interagency linkages, information-sharing, community preparedness, brokering, and evaluation. These functions are intended to focus on the development or enhancement of comprehensive and coordinated community-based service systems designed to help elderly and physically disabled adult Kentuckians maintain independence and dignity in their own homes and communities. This focus on community-based alternatives is consistent with Kentuckys plan developed in response to the Supreme Courts Olmstead decision and the State Plan on Aging. The Aging and Independent Living program administers statewide services; develops the State Plan on Aging; allocates funds to the 15 Area Agencies on Aging and Independent Living (AAA) as well as 14 Community Mental Health Centers (CMHCs) for the Hart Supported Living Program; and approves AAA program plans, amendments, budgets, and contracts for local provision of aging and physical disabilities services. It provides education, training, benefits counseling, information and assistance to respond to the needs of senior citizens and those with physical disabilities. The services administered to achieve these goals include: Nutritional Services provided through agreements with the AAAs include the Nutritional Services Incentive Program: For persons ages 60 and over, provides congregate meals at senior centers and home-delivered meals to the homebound elderly in each Kentucky county Senior Community Service Employment Program (Title V): Employs persons age 55 and older who have incomes at or below 125% of the poverty level in part-time non-profit community work, such as senior citizens centers, with the goals of training and eventual placement in unsubsidized employment. State Health Insurance Assistance Program (SHIP): (Section 4360 OBRA 1990, PL 101-508) provides benefits counseling and assistance to aged and disabled Medicare eligible persons through a federal Health Care Financing Administration Grant.
201

Nursing Home Diversion: provides a consumer directed approach to community based care by incorporating a consumer directed model to the state funded Homecare Program. Long-Term Care Ombudsman Program: On behalf of long-term care residents and their families, this program receives and investigates all complaints and problems of residents of nursing homes and personal care homes in Kentucky. The program assists in protecting the health, safety, welfare and rights of elderly Kentuckians in long term facilities. Aging and Disability Resource Center (ADRC): (Sec 1110 SS Act and 42 USC 3031-3037B) provides a single point of entry to services and supports for individuals who require assistance due to need or disability, regardless of age. Homecare Program (KRS 205.445-465): A state-funded alternative in-home program for frail and vulnerable persons 60 years and older who have functional or physical limitations and are at risk of institutionalization. Homecare provides essential services designed to delay or prevent institutionalization, including homemaker/personal care, homemaker/home management, home health aide, home-delivered meals, home-repair, chore, respite, and escort services. Hart Supported Living (KRS 210.770-795): provides services which enable a person with disabilities to live in a home of the persons choice which is typical of those living arrangements in which persons without disabilities reside, encourages the individuals integrated participation in the community , promotes the individuals rights and autonomy, enhances the individuals skills and competencies in living in the community and enables the individuals acceptance in the community by promoting home ownership or leasing arrangements in the name of the individual or the individuals family or guardian. Personnel Care Attendant Program (PCAP) for Physically Disabled Adults (KRS 205.900): Provides personal care assistant services and case management services to severely physically disabled adults, age 18 and over, who have functional loss of two or more limbs and need the services to prevent institutionalization or to leave an institutional setting. Adult Day and Alzheimers Respite (KRS 209): Provides programs for day-long care and supervision for persons 60 and over who, because of physical, mental, and/or psychological limitations, cannot remain in their own homes alone during the day. Kentucky Caregiver Program (910 KAR 1:260): provides assistance to Grandparents caring for grandchildren under the age of 18. The program provides information services, individual counseling, caregiver training, and funds (limited to not more than $500 per grandchild and no more than $1,500 per household per fiscal year) for defraying the costs of caring for the grandchild that could include purchase of clothing, educational supplies or assistance, certain legal services, medical services not related to co-pays and premiums, and other services as authorized by the Area Agency on Aging. Family Caregiver Support Program: a program serving family and informal caregivers who provide care to people over 60 or an individual of any age with Alzheimer or a related diagnosis, as well as grandparents and other relatives over 55 who provide care to children up to age 19. Traumatic Brain Injury Trust Fund Program (KRS 42.320): provides assistance to children and adults with brain injuries. The TBI Trust Fund Program is a funding source of last resort for Kentucky residents. The TBI Trust Fund is administered by a Board of Directors to assure that individuals with a brain injury and their families are provided services and supports to promote independence and personal productivity. Traumatic Brain Injury Behavioral Program (KRS 189A.050): serves persons affected by Traumatic Brain Injury who are in need of behavioral services. Services are provided through crisis intervention, residential treatment, targeted case management, and other wraps services. The Consumer Directed Option (CDO) program gives Medicaid waiver members more choices in the way some Medicaid services are provided. The client can choose who will provide services they need as well as how, when, and where these services will be provided Adult Day Certification (KRS 205.950): The Department for Aging and Independent Living certifies Adult Day Social Model programs to assure quality standards are met for the client. Assisted Living Certification (KRS 194A.707): The Department of Aging and Independent Living certifies Social Model Assisted Living Communities to assure compliance with state statutes and regulations. Alzheimers disease and Related Advisory Council (KRS 194.600-609): oversees information and resources related to policy and services affecting the sixty thousand (60,000) residents of Kentucky with dementia, and the caregivers and families of the residents. Preventive Health: provides disease prevention, education and assistance in training and care of elderly Kentuckians on health related issues. Supportive Services: for persons over 60, these include: assessment/case management, transportation, escort to medical facilities, stores and other service delivery points: information, assistance and referral: homecare and other inhome services; health promotion; visiting and telephone reassurance; legal assistance, counseling; education; advocacy; respite; preventive health services; elder abuse prevention programs; supportive services for families of elderly victims of Alzheimers and related disorders.

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Health and Family Services Aging and Independent Living Guardianship Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

6,300,000 14,200 6,314,200 360,300 142,400 286,600 789,300 7,103,500 5,889,400 719,300 494,800 7,103,500 6,314,200 789,300 7,103,500

8,660,700

9,298,900

6,651,100

6,764,800

8,660,700

9,298,900

6,651,100

6,764,800

502,700 286,600 789,300 9,450,000 7,226,500 733,400 1,490,100 9,450,000 8,660,700 789,300 9,450,000

502,700 286,600 789,300 10,088,200 7,671,100 734,000 1,490,100 193,000 10,088,200 9,298,900 789,300 10,088,200

502,700 286,600 789,300 7,440,400 6,231,000 719,300 490,100 7,440,400 6,651,100 789,300 7,440,400

502,700 286,600 789,300 7,554,100 6,344,700 719,300 490,100 7,554,100 6,764,800 789,300 7,554,100

Kentuckys Adult Guardianship Services Program is administered as authorized in KRS 210.290 and 387.500-387.900. Individuals are served by staff in both central office and nine regional offices. This Program provides a legal relationship between a court-appointed adult who assumes the responsibility of being the guardian for a ward. A ward is a person who has been declared legally disabled by the court and is no longer able to care for his or her personal and/or financial needs. Appointed guardians may be a friend or family member who is willing to care for the disabled individual. If there is no one willing to care for the disabled person, the court will appoint the Cabinet for Health and Family Services as the state guardian. The duties of the state guardian include: Full Guardianship/Full Conservator - In this category the Cabinet will be responsible for both the personal and financial needs of the ward. In this case, the court will also decide which civil rights the person can retain and which are given to the guardian. These may include the right to vote, the right to drive a car, the right to make medical decisions, the right to determine where to live, the right to sell property, and the right to sign legal documents such as checks, marriage licenses or wills. Limited Guardian - A limited guardian may be appointed if the disabled person is declared partially disabled and can manage some personal needs but may need assistance with others. Conservator - A conservator may be appointed if the disabled person needs help only with managing financial or fiduciary affairs. Conservator/Guardian - This category allows for a combination of a conservator who manages financial and fiduciary affairs with a guardian who manages living and personal needs arrangements.

203

Health and Family Services Health Benefit Exchange Revised FY 2014 SOURCE OF FUNDS Tobacco Settlement - Phase I Tobacco Settlement - Phase I Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Health Benefit Exchange TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

14,657,300 -7,343,700 7,313,600 13,100 3,649,800 3,662,900 61,600 40,911,100 40,972,700 51,949,200 44,307,700 6,842,800 798,700 51,949,200 7,313,600 3,662,900 40,972,700 51,949,200 51,949,200 51,949,200

14,021,200 14,021,200

23,404,900 23,404,900

14,021,200 14,021,200

23,404,900 23,404,900

19,916,200 19,916,200 33,937,400 30,898,800 2,938,600 100,000 33,937,400

3,483,400 3,483,400 26,888,300 23,949,700 2,938,600 26,888,300

19,916,200 19,916,200 33,937,400 30,898,800 2,938,600 100,000 33,937,400

3,483,400 3,483,400 26,888,300 23,949,700 2,938,600 26,888,300

14,021,200 19,916,200 33,937,400 33,937,400 33,937,400

23,404,900 3,483,400 26,888,300 26,888,300 26,888,300

14,021,200 19,916,200 33,937,400 33,937,400 33,937,400

23,404,900 3,483,400 26,888,300 26,888,300 26,888,300

The Office of the Kentucky Health Benefit Exchange (OKHBE) and the Kentucky Health Benefit Exchange (KHBE) were established by Executive Order 2013-418. OKHBE is charged with developing and implementing the KHBE. The Affordable Care Act (Patient Protection and Affordable Care Act, P.L. 111-148, as amended by the Health Care and Education Reconciliation Act, P.L. 111-152), requires the establishment of an American Health Benefit Exchange in each state. The KHBE, known as kynect, serves as a marketplace to facilitate the purchase and sale of qualified health plans in the individual market; assists qualified small employers to enroll their employees in qualified health plans offered in the small group market; provides one-stop shopping by helping eligible individuals enroll in qualified health plans offered through the Exchange or coverage through other federal or state health care programs including Medicaid and CHIP; and enables eligible individuals to receive premium tax credits and cost sharing reductions and eligible small businesses to receive tax credits. Open enrollment for KHBE began October 1, 2013 and ends March 31, 2014 with coverage beginning as soon as January 1, 2014. The Exchange has four functions: Health Care Policy Administration, Financial and Operations Administration, Education and Outreach, and Kentucky Access. The Kentucky Health Care Improvement Authority is also attached to the Office of the Kentucky Health Benefit Exchange. Health Care Policy Administration includes certification of qualified health plans, overseeing legislative and regulatory efforts related to the Exchange, and appeals. Financial and Operations Administration is responsible for overseeing the budget and contracts and administering employer premium payments for the small employer program. Education and Outreach supports consumer assistance efforts related to the Exchange. Kentucky Access administers the state high risk pool which provides medical coverage to individuals who have difficulty in obtaining health insurance in the individual insurance market due to high cost conditions. The last day of coverage for Kentucky Access was December 31, 2013. Kentucky Access funds will continue to pay for claims incurred prior to January 1, 2014. The Kentucky Health Care Improvement Authority is responsible for oversight of the expenditures of the tobacco settlement payments that are provided for public health initiatives. The Authority monitors four programs: Kentucky Access, Kentucky Lung Cancer Research Program, Tobacco Use Prevention and Cessation Program, Kentucky Agency for Substance Abuse Policy.
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Justice and Public Safety

Justice and Public Safety Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Mandated Allotments Other Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Justice Administration Criminal Justice Training Juvenile Justice State Police Corrections Public Advocacy TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

651,738,400 1,836,900 12,430,200 18,163,800

801,880,100

841,299,400

680,902,900

694,237,500

-7,000,000 684,169,300 1,700,200 47,100 -851,900 895,400 30,157,500 40,010,900 68,615,500 -20,488,800 118,295,100 953,100 46,493,800 -6,098,400 41,348,500 91,898,200 91,898,200 936,606,500 546,877,500 115,469,500 258,989,400 2,135,900 5,089,400 300 928,562,000 684,169,300 895,400 110,809,200 40,789,900 91,898,200 928,562,000 29,155,300 49,497,200 104,295,200 196,991,200 499,299,400 49,323,700 928,562,000 794,880,100 1,706,700

-7,200,000 834,099,400 1,710,800 680,902,900 1,700,200 694,237,500 1,241,100

1,706,700 9,625,900 47,428,400 69,882,600 126,936,900 558,600 38,705,700 39,264,300 100,005,300 100,005,300 1,062,793,300 632,621,300 121,714,900 271,398,100 13,792,900 13,137,600 300 1,052,665,100 794,880,100 1,706,700 117,217,600 38,855,400 100,005,300 1,052,665,100 32,553,200 52,758,200 128,929,600 235,548,400 538,015,500 64,860,200 1,052,665,100
205

1,710,800 9,719,300 47,666,400 70,635,900 128,021,600 408,900 36,545,600 36,954,500 103,497,900 103,497,900 1,104,284,200 668,380,700 121,800,300 274,462,900 17,068,500 12,380,800 300 1,094,093,500 834,099,400 1,710,800 118,090,100 36,695,300 103,497,900 1,094,093,500 32,939,600 53,548,800 133,627,300 252,199,200 546,627,100 75,151,500 1,094,093,500

1,700,200 7,485,900 47,635,000 79,730,500 -12,000,000 122,851,400 558,600 38,705,700 39,264,300 94,436,600 94,436,600 939,155,400 558,811,400 115,260,300 251,192,500 2,520,400 3,940,000 300 931,724,900 680,902,900 1,700,200 115,700,200 38,985,000 94,436,600 931,724,900 27,550,000 52,240,000 104,253,800 203,447,800 493,301,000 50,932,300 931,724,900

1,241,100 7,151,200 47,863,700 81,472,600 -11,000,000 125,487,500 279,300 36,545,600 36,824,900 95,536,900 95,536,900 953,327,900 568,958,800 115,235,000 252,014,300 3,028,000 3,843,600 300 943,080,000 694,237,500 1,241,100 115,239,600 36,824,900 95,536,900 943,080,000 27,151,600 52,040,000 105,739,800 206,088,200 500,541,200 51,519,200 943,080,000

The Kentucky Justice Cabinet was established in 1974. It was renamed the Justice and Public Safety Cabinet in 2007. In 2009 the Department of Vehicle Enforcement was brought under the Kentucky State Police. The Cabinet is comprised of six departments: Department of Justice Administration Department for Public Advocacy Department of Kentucky State Police Department of Juvenile Justice Department of Criminal Justice Training Department of Corrections

206

Justice and Public Safety Justice Administration Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Secretary Office of Drug Control Policy Medical Examiner Program Parole Board Grants Criminal Justice Council Motorcycle Training Program Access to Justice TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

10,273,900 18,600 804,800 11,097,300 1,700,200 47,100 -851,900 895,400 1,666,400 1,258,300 4,071,900 6,996,600 144,800 11,223,100 11,367,900 30,357,200 13,248,900 1,316,300 14,539,200 50,900 29,155,300 11,097,300 895,400 5,794,700 11,367,900 29,155,300 3,970,000 5,762,000 4,515,800 912,300 11,960,000 283,100 1,002,100 750,000 29,155,300

14,014,500

14,462,100

10,820,700

10,960,300

14,014,500 1,706,700

14,462,100 1,710,800

10,820,700 1,700,200

10,960,300 1,241,100

1,706,700 1,201,900 1,238,200 4,109,500 6,549,600

1,710,800 853,200 1,239,900 4,128,600 6,221,700

1,700,200 1,201,900 1,238,200 2,306,600 4,746,700

1,241,100 853,200 1,239,900 2,312,100 4,405,200

11,135,600 11,135,600 33,406,400 14,363,000 1,258,800 14,269,900 2,635,000 26,500 32,553,200 14,014,500 1,706,700 5,696,400 11,135,600 32,553,200 4,664,400 5,796,200 7,264,900 995,200 11,770,900 309,500 1,002,100 750,000 32,553,200

11,135,600 11,135,600 33,530,200 14,866,700 1,258,800 14,152,600 2,635,000 26,500 32,939,600 14,462,100 1,710,800 5,631,100 11,135,600 32,939,600 4,878,500 5,818,200 7,368,700 1,053,800 11,739,700 328,600 1,002,100 750,000 32,939,600

11,135,600 11,135,600 28,403,200 11,938,500 1,289,900 14,295,100 26,500 27,550,000 10,820,700 1,700,200 3,893,500 11,135,600 27,550,000 4,300,900 3,990,700 4,439,400 979,800 11,780,500 306,600 1,002,100 750,000 27,550,000

11,135,600 11,135,600 27,742,200 12,074,900 1,289,900 13,760,300 26,500 27,151,600 10,960,300 1,241,100 3,814,600 11,135,600 27,151,600 4,366,700 3,538,100 4,438,400 995,600 11,748,600 312,100 1,002,100 750,000 27,151,600

The Department is responsible for the overall administration of the Justice and Public Safety Cabinet, coordinating the activities of the various departments, boards, and branches. The Department of Justice Administration is comprised of the Office of the Secretary, Office of Management and Administrative Services, Office of Legal Services, Office of Legislative and Intergovernmental Services, Office of Drug Control Policy, Office of the Kentucky State Medical Examiner, and the Parole Board. The Office of the Secretary is responsible for the administration of the Cabinet, provision of legal services, development of legislation, regulation, policy and coordination of activities within and among the Cabinets departments and agencies.
207

The Office of Management and Administrative Services is responsible for communications, personnel, budget and fiscal policy, and information technology coordination. Attached to the Office of Management and Administrative Services is the Grants Management Branch. Duties of the Grants Management Branch include the receipt and distribution of Federal Funds throughout the Cabinet, such as the Justice Assistance Grants (JAG) program, the Victims of Crime Act (VOCA) and the Violence Against Women Act (VAWA) programs. The Branch also administers the state Law Enforcement DUI Service Fee program. The Criminal Justice Council, established in KRS 15A.040, advises and recommends to the Governor and the General Assembly policies and direction for long-range planning regarding all elements of the criminal justice system. The Council has representatives from: law enforcement, the judiciary, corrections, prosecution bar, defense bar, legislature, professional associations, crime victims, victim advocates, and universities. The Secretary of the Justice and Public Safety Cabinet serves ex-officio as Chair of the Council. The Office of Drug Control Policy is responsible for all matters relating to the research, coordination, and execution of drug control policy for the Commonwealth. The Office directs state and federally funded programs that focus on prevention/education, enforcement, and treatment to ensure a united effort among law enforcement initiatives to address drug abuse in Kentucky. The Parole Board is an independent, autonomous agency attached to Justice Administration for administrative purposes. The nine member Board reviews and applies release review authority to all convicted felons per KRS 439. The Board notifies crime victims of pending parole decisions and, upon request, meets with the victims. The Office of the Kentucky State Medical Examiner, in accordance with KRS 72.210-275, provides forensic specialists who assist the county coroners offices and law enforcement officials in conducting medico-legal investigations. The Medical Examiner provides professional support for physicians, chief and deputy medical examiners, regional medical examiners, and contractual services with the Universities of Kentucky and Louisville for facilities, equipment, histology services, radiology services, and medico-legal autopsy assistants. The staff also provides assistance to the Criminal Justice Training program with curriculum for coroners and law enforcement officers. Branch offices and autopsy facilities are operated in Frankfort, Louisville, Northern Kentucky, and Madisonville. The External Child Fatality/Near Fatality Review Panel, established in KRS 620.055, is attached to the Justice and Public Safety Cabinet for staff and administrative purposes. Policy The Executive Budget includes Restricted Funds of $2,000,000 in both years of the biennium for Operation UNITE, funded from the Local Government Economic Development Fund, Multi-county fund. The Executive Budget includes $750,000 in each year of the biennium from the General Fund for civil legal services to indigents. A Current Year Appropriation from the General Fund in the amount of $804,800 in fiscal year 2014 is included to maintain budgeted levels of service in the Office of Drug Control Policy program in response to the expected reduction in Tobacco Settlement-Phase I payments to the Commonwealth in April, 2014 resulting from an arbitration action. The Executive Budget includes $420,000 in each year of the biennium from the General Fund for the new External Child Fatality/Near Fatality Review Panel.

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Justice and Public Safety Criminal Justice Training Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Kentucky Law Enforcement Program Fund Peace Officer Professional Standards Special Training Programs TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

9,045,600 700,000 61,788,500 -17,488,800 54,045,300 167,800 167,800 54,213,100 18,618,100 2,946,200 25,727,000 2,135,900 70,000 49,497,200 49,329,400 167,800 49,497,200 48,168,600 680,900 647,700 49,497,200

2,875,900 493,400 52,076,800 55,446,100 188,000 188,000 55,634,100 20,396,100 2,948,700 27,086,500 2,136,900 190,000 52,758,200 52,570,200 188,000 52,758,200 51,296,500 780,300 681,400 52,758,200

2,875,900 502,800 52,906,000 56,284,700 140,000 140,000 56,424,700 21,110,600 3,040,900 27,186,800 2,140,500 70,000 53,548,800 53,408,800 140,000 53,548,800 52,104,900 801,100 642,800 53,548,800

4,715,900 700,000 63,727,600 -12,000,000 57,143,500 188,000 188,000 57,331,500 19,702,500 2,951,900 26,908,700 2,136,900 540,000 52,240,000 52,052,000 188,000 52,240,000 50,847,900 704,400 687,700 52,240,000

5,091,500 700,000 65,559,200 -11,000,000 60,350,700 140,000 140,000 60,490,700 19,911,500 2,928,400 26,919,600 2,140,500 140,000 52,040,000 51,900,000 140,000 52,040,000 50,687,100 709,800 643,100 52,040,000

The Department of Criminal Justice Training (DOCJT) is responsible for the training of law enforcement professionals as provided under Kentucky Revised Statutes, Chapters 15, 15A, 16, 70, 72, 95, and KRS 403.785(2), along with 500 KAR 8:010. Basic and specialized training courses are offered to police officers, dispatchers, sheriffs, deputies, coroners, certified courtsecurity officers, school resource officers, and certain other agencies upon request. Course curriculum includes training in basic law enforcement, telecommunications, coroner training, AIDS, post-traumatic stress disorder (PTSD), pediatric- abuse head trauma, child sexual abuse, juvenile crime, domestic violence, bias-related crimes, penal code and constitutional law, tactical training in rapid response, crisis intervention, response to persons with special needs, professional development, executive and staff training, leadership development, internet crime, and breath testing. Training is conducted at the Training Center on the Eastern Kentucky University campus and at regional sites. The DOCJT operates two training programs: the Kentucky Law Enforcement Foundation Program Fund (KLEFPF), and the Special Training programs, in addition to the Peace Officers Professional Standards (POPS) program. The KLEFPF agency resources are derived from property and casualty insurance premium surcharge proceeds, which accrue pursuant to KRS 136.392, and are allocated by KRS 42.190 between the KLEFPF and the Kentucky Firefighters Foundation Program Fund. The Department provides entry-level and in-service training for approximately 22,000 seats each year, totaling approximately 617,000 hours of training. Policy The Executive Budget includes Restricted Funds of $5,629,000 in fiscal year 2015 and $5,637,600 in fiscal year 2016 for a $3,100 training incentive stipend for state troopers, arson investigators, hazardous devices investigators, legislative security specialists, and Vehicle Enforcement officers within the Kentucky State Police. Each eligible must meet the requirements of Peace Officer Professional Standards Act training. The stipend payments are provided from the Kentucky Law Enforcement Foundation Program Fund (KLEFPF). The Executive Budget provides funding for approximately 7,300 training incentive stipend recipients each year. The Executive Budget includes $50,847,900 in fiscal year 2015 and $50,687,100 in fiscal year 2016 for the Kentucky Law Enforcement Foundation Program Fund.
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Justice and Public Safety Juvenile Justice Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Program Management Program Operations Support Services TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

80,848,700 355,800 81,204,500 6,334,100 1,385,600 6,275,700 -3,000,000 10,995,400 808,300 12,174,500 12,982,800 105,182,700 77,762,100 9,913,800 16,527,300 92,000 104,295,200 81,204,500 10,666,500 12,424,200 104,295,200 1,295,700 95,830,600 7,168,900 104,295,200

107,666,900

112,364,600

82,057,800

83,872,700

107,666,900 4,308,900 1,385,600 8,775,700 14,470,200 558,600 11,426,500 11,985,100 134,122,200 99,532,100 10,658,600 16,231,000 2,307,000 200,900 128,929,600 107,666,900 9,686,500 11,576,200 128,929,600 1,712,000 118,323,700 8,893,900 128,929,600

112,364,600 4,783,700 1,385,600 8,775,700 14,945,000 408,900 11,426,500 11,835,400 139,145,000 104,710,500 10,266,800 16,233,000 2,307,000 110,000 133,627,300 112,364,600 9,686,500 11,576,200 133,627,300 1,788,200 122,520,900 9,318,200 133,627,300

82,057,800 328,900 1,385,600 8,775,700 10,490,200 558,600 11,426,500 11,985,100 104,533,100 83,138,200 9,666,800 11,348,800 100,000 104,253,800 82,057,800 10,490,200 11,705,800 104,253,800 1,391,100 95,664,600 7,198,100 104,253,800

83,872,700

1,385,600 8,775,700 10,161,300 279,300 11,426,500 11,705,800 105,739,800 85,086,200 9,498,000 11,045,600 110,000 105,739,800 83,872,700 10,161,300 11,705,800 105,739,800 1,413,200 97,000,500 7,326,100 105,739,800

The Department of Juvenile Justice operates programs for juvenile crime prevention, detention, and community services, as well as residential facilities for post-adjudicated offenders. All programs are designed primarily for public and youthful offenders. The Department consists of three programmatic areas: Program Management, Program Operations, and Support Services. Program Management is comprised of two organizational units which provide management and policy direction for the Department: Office of the Commissioner and Office of Ombudsman. The Office of the Commissioner provides staff support for the Commissioner, which includes public information services. The Office of Ombudsman investigates and resolves grievances filed by those receiving services from the Department. Program Operations consists of the direct services provided to both public and youthful offenders, through Day Treatment Services, Group Homes, Residential Facilities, Community Supervision, Private Child Care Facilities, Detention Facilities, and Alternatives to Detention. The programs are administered on a regional basis, divided into four separate regions. Day Treatment Services is comprised of six state-owned and 20 contract programs. These programs are the least restrictive, since the youths remain in a home setting during the evening and attend a day treatment program during the day. A court or school system usually refers a youth to serve in these programs. Day Treatment provides educational alternatives, treatment, and counseling for youths between the ages of 12 and 17. The total capacity of the 26 centers is 919 youths.

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Group Home Facilities County Beds ___________________________________________________________________________________________ Ashland Boyd 8 Bowling Green Warren 8 Burnside Pulaski 8 Frenchburg Menifee 8 Hopkinsville Christian 8 London Laurel 8 Mayfield Graves 8 Middlesboro Bell 8 Frankfort Franklin 8 Westport Jefferson 8 ___________________________________________________________________________________________ Group Home Beds = 80 Group Homes are community-based residential treatment facilities that generally serve eight youths per home. These programs accept youths between 12-18 years of age who have been committed to the Department as public or youthful offenders. Group home care serves as an alternative to institutionalization and aims to transition a youth from institutional placement to the community. The total capacity of ten group homes is 80 youths. Residential Facilities City County Beds ______________________________________________________________________________________________ Northern Kentucky Youth Development Center Crittenden Grant 40 Morehead Youth Development Center Morehead Rowan 40 Green River Youth Development Center Cromwell Butler 40 Audubon Youth Development Center Louisville Jefferson 80 Mayfield Youth Development Center Mayfield Graves 30 Owensboro Treatment Center Owensboro Daviess 30 Lake Cumberland Youth Development Center Monticello Wayne 40 Woodsbend Youth Development Center West Liberty Morgan 40 Cadet Leadership Education Program Jackson Breathitt 40 Adair Youth Development Center Columbia Adair 60 ______________________________________________________________________________________________ Residential Beds = 444 The 11 state-operated Residential Facilities provide 24-hour care and custody of juveniles who have been committed to the Department as public offenders or sentenced as youthful offenders. These facilities serve youths who are in need of treatment that cannot be provided in their community, or who require placement in a secure setting because they represent a threat to the community. The current capacity of the 11 facilities is 484 youths. State-operated Detention Centers County Beds ____________________________________________________________________________________________ Breathitt Regional Juvenile Detention Center Breathitt 48 McCracken Regional Juvenile Detention Center McCracken 48 Campbell Regional Juvenile Detention Center Campbell 52 Adair Youth Development Center Adair 20 Warren Regional Juvenile Detention Center Warren 48 Boyd Regional Juvenile Detention Center Boyd 36 Hardin Regional Juvenile Detention Center Hardin 44 Fayette Regional Juvenile Detention Center Fayette 60 ____________________________________________________________________________________________ Detention Beds = 356 Seven state-operated detention centers are currently in operation in Breathitt, McCracken, Campbell, Warren, Hardin, Fayette, and Boyd Counties, and twenty beds are available for detention at the youth development center in Adair County. The Laurel Detention Center is currently closed. Currently, the state provides detention services to 119 counties. Jefferson County continues to operate a local detention program, and it is approved to use these facilities and receive a subsidy payment from the state of $94 per day for all public and youthful offenders. Placements less restrictive than detention facilities are provided through contracts with emergency shelters and foster care providers, electronic monitoring, and tracking services. Ten departmental staff members are responsible for the assessment of juveniles in the facilities, and the determination of whether an alternative to detention is appropriate. Private child care facilities and therapeutic foster care programs are utilized to alleviate facility capacity problems and to provide specialized treatment for youths. Approximately 40-45 juveniles are in these programs on any given day.

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Community Services provide services to juvenile offenders. Workers in the community offices develop service objectives and comprehensive service plans for juvenile offenders and their families. These workers supervise over 3,000 juvenile offenders and recommend any necessary out-of-home placements. The Division of Placement Services, included in the Program Operations area, determines appropriate out-of-home placements for youths committed to the Department of Juvenile Justice. Support Services, which provides administrative support to all organizational units of the Department, includes: Division of Administrative Services, Division of Program Services, Division of Professional Development, and the Division of Medical Services. The Division of Administrative Services consists of four branches: Personnel, Fiscal, Capital Construction and Real Properties, and Information Systems. The Division of Program Services consists of the Quality Assurance Branch and grant management staff that report directly to the Division Director. The Division of Professional Development consists of the Training Branch. The Medical Division oversees the medical delivery system throughout the Department.

212

Justice and Public Safety State Police Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Non-Revenue Receipts Total Federal Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Administration Technical Services Operations Commercial Vehicle Enforcement TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

66,990,600 210,000 7,225,400 74,426,000 5,271,800 22,391,900 -7,352,200 20,311,500 17,660,400 -6,098,400 11,562,000 91,898,200 91,898,200 198,197,700 154,628,700 38,661,400 700,800 3,000,000 300 196,991,200 74,426,000 19,105,000 11,562,000 91,898,200 196,991,200 27,819,800 37,490,000 115,465,900 16,215,500 196,991,200

101,277,000

114,373,100

74,745,100

76,223,100

101,277,000 1,206,500 22,704,100 23,910,600 11,562,000 11,562,000 100,005,300 100,005,300 236,754,900 179,186,400 40,309,100 700,800 3,476,000 11,875,800 300 235,548,400 101,277,000 22,704,100 11,562,000 100,005,300 235,548,400 37,074,700 40,205,600 141,028,300 17,239,800 235,548,400

114,373,100 1,206,500 22,766,200 23,972,700 11,562,000 11,562,000 103,497,900 103,497,900 253,405,700 192,974,100 40,369,200 700,800 6,254,000 11,900,800 300 252,199,200 114,373,100 22,766,200 11,562,000 103,497,900 252,199,200 38,678,900 41,190,700 154,612,900 17,716,700 252,199,200

74,745,100 1,206,500 22,704,100 23,910,600 11,562,000 11,562,000 94,436,600 94,436,600 204,654,300 160,492,100 38,991,600 700,800 263,000 3,000,000 300 203,447,800 74,745,100 22,704,100 11,562,000 94,436,600 203,447,800 29,164,600 37,580,600 120,458,600 16,244,000 203,447,800

76,223,100 1,206,500 22,766,300 23,972,800 11,562,000 11,562,000 95,536,900 95,536,900 207,294,800 162,862,600 38,998,500 700,800 526,000 3,000,000 300 206,088,200 76,223,100 22,766,200 11,562,000 95,536,900 206,088,200 29,624,900 37,925,900 122,103,200 16,434,200 206,088,200

The Kentucky State Police is the statewide law enforcement agency of the Commonwealth. The State Police was established in 1948. State Troopers are assigned to 16 regional posts and Commercial Vehicle Enforcement officers are assigned to 6 regions. The Department is responsible for the enforcement of criminal and traffic laws, along with white-collar crime, organized crime, electronic crime, racketeering, and drug-related crime. The State Police also provide protection for the Governor, Lieutenant Governor, their families, and property. The Kentucky State Police is comprised of four divisions: Administrative, Operations, Technical Services, and Commercial Vehicle Enforcement. The Administrative Division, which includes the Office of the Commissioner, provides professional support services for the Department. These services include organizational policy, personnel, properties management and supplies, payroll, employee assistance, fiscal, internal investigations, and inspections. Media relations, training, analysis, research, strategic planning, and information coordination are other functions performed in this division. The State Police Drivers Testing Stations, Facilities Security, and Legislative Detail are also part of this division and provide external support to citizens and other public officials of Kentucky.
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The Operations Division includes the regional posts and the personnel assigned to each post. State Police posts are maintained in Mayfield, Madisonville, Henderson, Elizabethtown, Bowling Green, Dry Ridge, Frankfort, Campbellsburg, Richmond, Columbia, Morehead, Ashland, Pikeville, Hazard, Harlan, and London. Other functions in this division include highway safety, drug enforcement, vehicle investigation, and special operations. The Technical Services Division is responsible for providing technical assistance to all departmental areas, along with outside agencies, concerning electronic crimes examination/analysis, records, communications (including headquarters dispatch), criminal history information, intelligence information, automated fingerprint information, and computer technology needs. The Division also has the responsibility of providing forensic analysis for all law enforcement agencies throughout the Commonwealth. The forensic analysis function is provided through the Central Laboratory in Frankfort as well as Regional Laboratories in Ashland, Louisville, Cold Springs, London, and Madisonville. The Commercial Vehicle Enforcement Division is responsible for encouraging and promoting a safe driving environment through education and safety awareness while enforcing state and federal laws and regulations, placing special emphasis on commercial vehicles. This Division is staffed with sworn law enforcement officers, regulatory weight and safety inspectors, and civilian staff. Kentucky State Police was transferred ownership of 362 acres and facilities from the Department of Corrections on July 1, 2011 to be used as the Kentucky State Police Training Academy. In 2013, a $2 million bond funded project was authorized to demolish the administration building and construct a new building with office, conference room and replacement classroom. Policy The Executive Budget includes Restricted Funds of $5,629,000 in fiscal year 2015 and $5,637,600 in fiscal year 2016 for a $3,100 training incentive stipend for state troopers, arson investigators, hazardous devices investigators, legislative security specialists, and Vehicle Enforcement officers within the Kentucky State Police. The stipend payments are provided from the Kentucky Law Enforcement Foundation Program Fund (KLEFPF). The Executive Budget provides General Fund debt service in the amount of $263,000 in fiscal year 2015 and $ $526,000 in fiscal year 2016 to support new bonds for capital projects. The Executive Budget includes General Fund resources in the amount of $7,225,400 in fiscal year 2014 and $5,000,000 each year of the biennium to cover the cumulative shortfall from prior fiscal years stemming from cost increases in the areas of motor fuels, health insurance, equipment replacement and retirement payouts.

214

Justice and Public Safety Corrections Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Mandated Allotments Other Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Corrections Management Adult Correctional Institutions Community Services and Local Facilities Local Jail Support TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

452,946,600 1,102,800 18,163,800

518,559,500

529,304,400

466,845,000

476,018,500

-7,000,000 472,213,200 7,782,400 13,169,200 2,800,000 23,751,600 3,367,300 3,367,300 499,332,100 240,069,200 55,888,600 201,465,100 1,876,500 499,299,400 472,213,200 23,718,900 3,367,300 499,299,400 10,099,000 278,554,800 191,608,600 19,037,000 499,299,400 511,559,500 32,700 20,550,100 2,800,000 23,382,800 3,073,200 3,073,200 538,015,500 262,844,600 58,008,600 213,079,900 3,238,000 844,400 538,015,500 511,559,500 23,382,800 3,073,200 538,015,500 12,205,600 288,670,700 215,882,900 21,256,300 538,015,500

-7,200,000 522,104,400 466,845,000 32,700 20,550,100 2,800,000 23,382,800 3,073,200 3,073,200 493,301,000 239,267,700 55,730,200 197,909,100 120,500 273,500 493,301,000 466,845,000 23,382,800 3,073,200 493,301,000 10,304,100 263,996,000 200,837,800 18,163,100 493,301,000 476,018,500

20,761,600 2,800,000 23,561,600 961,100 961,100 546,627,100 268,368,000 58,093,900 216,159,700 3,732,000 273,500 546,627,100 522,104,400 23,561,600 961,100 546,627,100 12,475,000 290,498,600 222,397,200 21,256,300 546,627,100

20,761,600 2,800,000 23,561,600 961,100 961,100 500,541,200 244,186,800 55,867,800 199,558,000 361,500 567,100 500,541,200 476,018,500 23,561,600 961,100 500,541,200 10,249,800 266,326,400 205,599,900 18,365,100 500,541,200

The Department of Corrections, pursuant to KRS 196 - 197, is responsible for the broad range of activities associated with adult criminal incarceration, public safety, inmate rehabilitation, probation and parole, and criminal recidivism. As the largest department in the Justice and Public Safety Cabinet, Corrections has four separate appropriation units: Corrections Management, Community Services and Local Facilities, Adult Institutions, and Local Jail Support. The Department of Corrections utilizes resources from each of these units to provide the necessary balance between public safety and fiscal responsibility. In order to accomplish this, the Department is charged with accommodating a growing inmate population through a balance of community and institutional based solutions. The Departments core cost driver is the felon population. In the 2011 Regular Session, HB 463 was passed with the intent to decrease the states prison population; reduce incarceration costs; and implement programs that will reduce crime and increase overall public safety. KRS 196.111 mandates the use of evidence-based practices in the sentencing process for convicted felons and in the decision making process for the supervision and treatment of felons in prison or on probation or parole. HB 463 modified KRS Chapter 218A controlled substance statutes and placed emphasis on probation, diversion, and treatment and diverts savings from the drug law changes to drug treatment programs. Other provisions in KRS 439.335, KRS 439.340, KRS 439.320, and KRS 197.045 emphasize the use of parole to effectuate accelerated parole hearings; to order mandatory reentry supervision release; and to allow for good time credit that reduces the sentence while on parole.

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Policy The Executive Budget incorporates the following array of institutional and community beds to accommodate the projected prison and community felon population under the custody of the Department of Corrections.

2014 - 2016 Felon and Community Beds Forecast FY 2014 20,623 2,060 22,683 FY 2015 20,867 2,110 22,461 FY 2016 21,112 2,110 22,625

Felons* Other** Total

* The incarcerated felon forecast is a consensus estimating process involving a nationally-known Corrections consulting firm, the Department of Corrections, and the Office of the State Budget Director **The Other category is the remaining population under the custody of the Department of Corrections located in Halfway House and Recovery Kentucky beds for parolees and probationers, as well as others serving time in jails under an alternative sentence arrangement with the Courts. The Executive Budget includes additional General Fund in the amount of $18,163,800 in fiscal year 2014 as a result of 1,662 more inmates than forecasted in the fiscal year 2014 budget.

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Justice and Public Safety Corrections Corrections Management Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Commissioner Corrections Training Administrative Services Division of Personnel TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

9,537,200 40,000 9,577,200 332,700 332,700 221,800 221,800 10,131,700 8,842,100 1,256,900 10,099,000 9,577,200 300,000 221,800 10,099,000 6,199,300 1,739,000 1,581,300 579,400 10,099,000

11,600,700

12,100,000

9,699,200

9,874,800

11,600,700 32,700 267,300 300,000 304,900 304,900 12,205,600 10,377,700 1,827,900 12,205,600 11,600,700 300,000 304,900 12,205,600 7,942,400 1,755,900 1,741,900 765,400 12,205,600

12,100,000

9,699,200 32,700 267,300 300,000 304,900 304,900 10,304,100 9,028,900 1,275,200 10,304,100 9,699,200 300,000 304,900 10,304,100 6,296,200 1,723,500 1,662,400 622,000 10,304,100

9,874,800

300,000 300,000 75,000 75,000 12,475,000 10,645,100 1,829,900 12,475,000 12,100,000 300,000 75,000 12,475,000 8,023,800 1,825,800 1,821,900 803,500 12,475,000

300,000 300,000 75,000 75,000 10,249,800 8,973,800 1,276,000 10,249,800 9,874,800 300,000 75,000 10,249,800 6,176,900 1,747,300 1,690,100 635,500 10,249,800

Corrections Management provides the administrative and management functions for the Department of Corrections. These functions are achieved through six program areas: Office of the Commissioner, Division of Personnel, Division of Corrections Training, Division of Administrative Services, and Debt Service. The Office of the Commissioner provides departmental management and administrative support necessary for the Commissioner of Corrections to conduct statutorily assigned duties pursuant to KRS 196 and 197. The Office conducts centralized personnel and budgeting functions. The Commission on Corrections/Community Services is administratively attached to the Office. Also attached to the Office of the Commissioner is the Office of the Deputy Commissioner for Support Services, responsible for the Division of Corrections Training and Division of Administrative Services. The Information Technology and Offender Records Branch as well as the Parole Board/Victims Services Branch are also under the Office of the Deputy Commissioner of Support Services. The Division of Corrections Training, referenced in KRS 12.020, 16.090, 441.055, and 441.115, is responsible for developing curriculum and providing job training to corrections employees including staff in the county jails. Instruction is provided through the Basic Academy program, the Common Core/Officer In-service program, Jail Training programs, and various specialized programs. The Division of Administrative Services, referenced in KRS 12.020, is comprised of two branches that provide support services to the entire Department in accounting and purchasing, property inventory, and budgeting. The Division of Administrative Services also includes the Contract Management Branch, which is charged with the responsibility for administering the contracts for the Commonwealths privately operated correctional facilities. This branch oversees contracts with 25 halfway houses located across the state which provide housing for approximately 2,094 community custody inmates and parolees, which includes community placements with the Recovery Kentucky substance abuse programs.

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Justice and Public Safety Corrections Adult Correctional Institutions Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Other Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Institutions Operations Medical Services Education Correctional Industries Correctional Facilities Mental Health Private Prisons TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

273,298,400 876,200 -15,014,200 259,160,400 5,633,500 11,955,400 17,588,900 1,805,500 1,805,500 278,554,800 182,979,000 48,376,700 45,322,600 1,876,500 278,554,800 259,160,400 17,588,900 1,805,500 278,554,800 5,400,600 52,764,600 5,783,700 12,354,800 187,225,600 11,514,300 3,511,200 278,554,800

276,612,400

279,745,500

244,937,700

248,373,300

-7,000,000 269,612,400

-7,200,000 272,545,500 244,937,700 248,373,300

17,252,800 17,252,800 1,805,500 1,805,500 288,670,700 194,425,100 48,962,600 41,644,200 3,238,000 400,800 288,670,700 269,612,400 17,252,800 1,805,500 288,670,700 7,209,800 47,174,600 7,149,600 13,216,800 203,601,600 10,318,300 288,670,700

17,431,600 17,431,600 521,500 521,500 290,498,600 196,426,800 49,301,100 40,765,200 3,732,000 273,500 290,498,600 272,545,500 17,431,600 521,500 290,498,600 7,464,500 47,123,600 6,903,300 13,395,600 205,109,700 10,501,900 290,498,600

17,252,800 17,252,800 1,805,500 1,805,500 263,996,000 178,999,400 48,041,100 36,561,500 120,500 273,500 263,996,000 244,937,700 17,252,800 1,805,500 263,996,000 3,750,100 47,061,500 6,399,400 12,466,800 185,334,000 8,984,200 263,996,000

17,431,600 17,431,600 521,500 521,500 266,326,400 181,910,800 48,204,500 35,282,500 361,500 567,100 266,326,400 248,373,300 17,431,600 521,500 266,326,400 3,676,300 46,899,900 6,059,400 12,645,600 188,552,900 8,492,300 266,326,400

Adult Correctional Institutions is comprised of 12 state correctional facilities for adult felon offenders. Seven additional programmatic areas serve all institutions and their incarcerated populations: the Division of Operations, the Division of Mental Health, the Division of Substance Abuse, Education programs, Inmate Medical Services, the Division of Adult Institutions and the Division of Correctional Industries. The Division of Operations, pursuant to KRS 197.505, 197.065, 196.240, and 197.110, supervises and directs the following activities: classification and placement of inmates, coordination of academic and technical programs, coordination of dietary and health programs for state owned facilities, and coordination of security threat group information. The Division of Mental Health is responsible for providing mental health treatment services to Kentuckys incarcerated, paroled, and probated populations. The Division is comprised of three units: sex offender treatment programs, the Sex Offender Risk Assessment Unit, and psychiatric and psychological out-patient services. The Division of Substance Abuse is responsible for providing and overseeing alcohol and other substance abuse treatment programs in the state correctional facilities. Inmate Medical Services, pursuant to KRS 197.020, provides necessary health services to inmates committed to the Department.
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Services are performed at each institutional location through institutional medical staff, personal service contracts, and outside referrals to local specialists and hospitals. The provision of medical services is monitored, authorized, and reviewed by a system-wide Medical Director. Beneficiaries of the Division of Inmate Medical Services also include the state inmates housed in local jails who are able to participate in the healthcare network administered through the Division. County jail inmates are now beneficiaries of the healthcare network in accordance with KRS 441.560. Kentucky Correctional Industries (KCI), as authorized by KRS 197.200, produces goods and services employing inmate labor. Kentucky Correctional Industries is a self-supporting operation, receiving only restricted funds for operations in nine of the Departments state-operated institutions. Twenty-one separate plants produce products and provide services such as office furniture, recycling, license tags, janitorial products, printing, mattresses, ergonomic chairs, signage, furniture refurbishing, and office panel systems. Data entry, coupon sorting, Braille printing services, and mail services are also offered by KCI. Also administered by the Division of Correctional Industries is the Institutional Farm program. Farm programs are currently operated at Blackburn Correctional Complex, Northpoint Training Center, Roederer Correctional Complex, and Western Kentucky Correctional Complex. Current farm operations consist of cattle (including commercial cattle and a prime Registered Angus herd), grain, hay, orchards, vegetables, and freshwater shrimp. The farm program also has a working agreement with the Thoroughbred Retirement Foundation, and operates a refuge for retired thoroughbred horses at the Blackburn Correctional Complex. Correctional Institutions Kentucky State Reformatory (KSR) is a medium security institution with an operational capacity of 1,952 inmates located near LaGrange in Oldham County. The inmate population is divided into four segments: general population, special management unit, nursing care facility, and mental health unit. Since 1980, KSR has converted designated living areas into single cell facilities and opened a new 150-bed mental health unit during 1998. In 1995 KSR opened the Nursing Care Facility which houses inmates in need of medical care due to their medical condition. Kentucky State Penitentiary (KSP) is a maximum security institution with an operational capacity of 849 inmates, located near Eddyville in Lyon County. The inmate population is separated into three major groups: general population, protective custody, and disciplinary/administrative segregation. KSP also houses the states capital punishment unit. Blackburn Correctional Complex (BCC) is a minimum security institution with an operational capacity of 594 inmates located near Lexington in Fayette County. The institution programmatically directs inmates to halfway houses or returns the inmate to the community by parole, based upon the individuals demonstrated conduct, program performance, and need. Bell County Forestry Camp (BCFC) is a minimum security institution with an operational capacity of 300 inmates located near Pineville in Bell County. The institution provides manpower to the Division of Forestry for fire suppression in Bell and seven surrounding counties during fire season along with road, highway garage, and community service details. Kentucky Correctional Institution for Women (KCIW), the only state institutional facility for women in the Commonwealth, is located in PeeWee Valley in Shelby County, and has an operational capacity of 691 inmates. All levels of security and all levels of medical services must be provided since virtually all female prisoners are housed at KCIW. Eastern Kentucky Correctional Complex (EKCC) is a medium security institution with an operational capacity of 1,674 inmates located near West Liberty in Morgan County. The facility is the second largest correctional institution in the state, providing inmates with employment opportunities, academic resources, and vocational programs. Western Kentucky Correctional Complex (WKCC) is a medium security institution with an operational capacity of 670 inmates located near Caldwell County. The institution operates a full farm operation on 2,500 acres, a community work program for surrounding parks and cities, and the Correctional Industries recycling program serving the surrounding counties. Roederer Correctional Complex (RCC) is a medium security institution with an operational capacity of 1,002 inmates located near LaGrange in Oldham County. The institution operates the Departments Assessment and Classification Center, serving all incoming male inmates with the exception of inmates sentenced to capital punishment. The institution also operates a full farm operation on approximately 2,800 acres. Luther Luckett Correctional Complex (LLCC) is a medium security institution with an operational capacity of 1,073 inmates, also located near LaGrange in Oldham County. The facility houses two separate institutions: the Department of Corrections prison facility and the Cabinet for Health and Family Services' Kentucky Correctional Psychiatric Center (KCPC). Due to KCPC, the inmate population has a variety of psychological, pharmaceutical, recreational, academic, vocational, and substance abuse programs available. Green River Correctional Complex (GRCC) is a medium security institution with an operational capacity of 947 inmates located near Central City in Muhlenberg County. Northpoint Training Center (NTC) is a medium security institution with an operational capacity of 1,226 inmates located near Danville in Boyle County. The institution operates a prison farm, along with counseling, academic, and vocational programs. Little Sandy Correctional Complex (LSCC) is located near Sandy Hook in Elliott County and has an operational capacity of 987 inmates. Programming at the new institution consists of basic educational and vocational training classes, as well as psychological services. Correctional industries programs are planned in the near future.
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Policy The Executive Budget includes an estimated savings of $1,400,000 in fiscal year 2014, $7,000,000 in fiscal year 2015, and $7,200,000 in fiscal year 2016 as a result of implementing the Affordable Health Care Act which allows state inmates below 138% of the poverty level Medicaid coverage for hospital costs when outside the correctional facility 24 hours or more. The Executive Budget incorporates the savings due to closing the Marion Adjustment Complex in September 2013: $2,868,600 in each year of the biennium. The shift of over 500 minimum-security inmates from the private prison to county jails represent about $6,500,000 in payments to county fiscal courts for housing those inmates. The Executive Budget relocates $7,600,000 in each fiscal year from Adult Institutions to the community Substance Abuse Program. The Executive Budget provides General Fund debt service in the amount of $120,500 in fiscal year 2015 and $361,500 in fiscal year 2016 to support new bonds for capital projects.

220

Justice and Public Safety Corrections Community Services and Local Facilities Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Mandated Allotments Other Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Probation and Parole Program Local Facilities Operations Local Facilities - Jail Program Community Corrections Commission Halfway Houses Electronic Monitoring Substance Abuse Programs TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

151,074,000 186,600 18,163,800 15,014,200 184,438,600 1,816,200 1,213,800 2,800,000 5,830,000 1,340,000 1,340,000 191,608,600 48,203,100 5,818,300 137,587,200 191,608,600 184,438,600 5,830,000 1,340,000 191,608,600 50,973,700 1,265,300 101,038,000 1,058,800 27,000,000 2,672,800 7,600,000 191,608,600

209,090,100

216,202,600

194,045,000

199,405,300

209,090,100

216,202,600

194,045,000

199,405,300

3,030,000 2,800,000 5,830,000 962,800 962,800 215,882,900 57,996,800 6,781,400 150,661,100 443,600 215,882,900 209,090,100 5,830,000 962,800 215,882,900 55,963,600 1,474,300 116,195,300 1,058,800 27,936,000 2,688,200 10,566,700 215,882,900

3,030,000 2,800,000 5,830,000 364,600 364,600 222,397,200 61,251,100 6,526,200 154,619,900 222,397,200 216,202,600 5,830,000 364,600 222,397,200 58,312,900 1,436,200 120,213,800 1,058,800 27,936,000 2,741,000 10,698,500 222,397,200

3,030,000 2,800,000 5,830,000 962,800 962,800 200,837,800 51,194,400 5,977,200 143,666,200 200,837,800 194,045,000 5,830,000 962,800 200,837,800 51,871,900 1,301,700 107,318,400 1,058,800 27,000,000 2,466,500 9,820,500 200,837,800

3,030,000 2,800,000 5,830,000 364,600 364,600 205,599,900 53,257,200 5,950,600 146,392,100 205,599,900 199,405,300 5,830,000 364,600 205,599,900 54,081,100 1,319,900 110,325,300 1,058,800 27,000,000 1,923,300 9,891,500 205,599,900

The Community Services and Local Facilities program is comprised of three units which provide the core system of communitybased correctional programs to protect the Commonwealth. The three organizational units are the Division of Probation and Parole, the Division for Local Facilities, and Community Corrections. The Division of Probation and Parole, pursuant to KRS 439.370 and 439.480, through the probation and parole officers in the 20 districts, provides supervision of approximately 45,519 probationers and parolees in the community, investigations of offenders for the courts and parole board, rehabilitative services to offenders, and assistance in employment and home placement. The Division for Local Facilities, as mandated by KRS Chapter 441, is responsible for jail inspection, jail standards review and enforcement regulations, technical assistance to local governments, and approval of construction plans. The Division administers the controlled intake of certain classes of C and D felons, per KRS Chapter 532. This division is also responsible for payment of local jail per diems, medical per diems, excess medical costs, and inmate labor for the state inmates housed in the Commonwealths 74 full service jails and 4 regional jails.

221

The Community Corrections area is comprised of the Halfway House program, Kentucky Corrections Commissioner, and Electronic Monitoring program. Pursuant to KRS Chapter 439, the Halfway House program provides rehabilitation in community residential correctional centers throughout the Commonwealth where inmates are transitioned prior to their release. Pursuant to KRS Chapter 196, the Kentucky Corrections Commission grants funds for the purpose of assisting judges, throughout the Commonwealth, develop alternatives to incarceration. In accordance with KRS 532.260, the Department of Corrections has initiated the Home Incarceration program (HIP). The current average daily population of HIP participants is 172. Policy The Department of Corrections estimates a 6 percent growth in the number of probationers and parolees compared to fiscal year 2013. Much of this increase is due to accelerated parole hearings and mandatory reentry supervision release. Fiscal Year 2013 Actual 2014 Estimated 2015 Estimated 2016 Estimated Probation and Parole Population 45,248 45,519 46,878 48,304

Sufficient resources are provided for 42 additional Probation and Parole Officers over the biennium to accommodate the projected increase in caseload.

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Justice and Public Safety Corrections Local Jail Support Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Local Jail Allotment Restricted Medical Jailers' Allowance Catastrophic Medical Local Corrections Assistance Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

19,037,000 19,037,000 19,037,000 45,000 436,700 18,555,300 19,037,000 19,037,000 19,037,000 12,026,600 931,100 481,700 960,000 4,637,600 19,037,000

21,256,300 21,256,300 21,256,300 45,000 436,700 20,774,600 21,256,300 21,256,300 21,256,300 14,245,900 931,100 481,700 960,000 4,637,600 21,256,300

21,256,300 21,256,300 21,256,300 45,000 436,700 20,774,600 21,256,300 21,256,300 21,256,300 14,245,900 931,100 481,700 960,000 4,637,600 21,256,300

18,163,100 18,163,100 18,163,100 45,000 436,700 17,681,400 18,163,100 18,163,100 18,163,100 11,074,700 931,100 481,700 960,000 4,715,600 18,163,100

18,365,100 18,365,100 18,365,100 45,000 436,700 17,883,400 18,365,100 18,365,100 18,365,100 11,074,700 931,100 481,700 960,000 4,917,600 18,365,100

The Local Jail Support program consists of four funds used to assist counties in local jail operations: Local Jail Allotment, Restricted Medical Allotment, Jailers Allowance, and Catastrophic Medical. These programs were part of the Jail Reform package passed in the 1982 and 1984 Regular Sessions of the General Assembly. The Local Jail Allotment, pursuant to KRS 441.206, was established for the care and maintenance of prisoners charged with or convicted of violations of state law. Funds appropriated for the Jail Allotment and Restricted Medical programs are distributed to each county based upon the formula in KRS 441.206. The Jailers Allowance program, pursuant to KRS 441.115, trains jailers and jail personnel. No fee is charged for this training. Three hundred dollars ($300) per month is paid to jailers to help defray the costs of participation in this training program. Expense allowance payments are discontinued if the jailer fails to satisfactorily complete annual continuing training. The Catastrophic Medical program, pursuant to KRS 441.045, provides funds that assist counties with costs of providing necessary medical, dental, or psychological care beyond routine care and diagnostic services. When the cost of providing such services exceeds $1,000, the county is reimbursed. Initial reimbursements are limited by the maximum payments allowed for services under the Kentucky Medical Assistance Program. The Local Corrections Assistance Fund, pursuant to KRS 196.288 provides funding to counties based upon 25% of the estimated savings resulting from changes in HB463. Policy Pursuant to KRS 196.288, savings in the amount of $5,594,800 in fiscal year 2015 and $5,796,800 in fiscal year 2016 are allocated to the Local Corrections Assistance Fund. Of those amounts, $879,200 each fiscal year is re-aligned to the Catastrophic Medical program as coordinated between the Department of Corrections and the Kentucky County Jailers Association. As a result, the net amount displayed for this program is $4,715,600 in fiscal year 2015 and $4,917,600 in fiscal year 2016.

223

Justice and Public Safety Public Advocacy Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Office of the Public Advocate Defense Services Law Operations Protection and Advocacy TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

40,678,600 149,700 4,400,000 45,228,300 57,200 1,105,900 1,031,600 2,194,700 1,900,700 1,900,700 49,323,700 42,550,500 6,743,200 30,000 49,323,700 45,228,300 2,194,700 1,900,700 49,323,700 1,448,600 44,179,600 1,484,600 2,210,900 49,323,700

60,362,200

70,795,200

46,434,300

47,162,900

60,362,200

70,795,200

46,434,300

47,162,900

1,057,000 2,120,600 3,177,600 1,320,400 1,320,400 64,860,200 56,299,100 8,531,100 30,000 64,860,200 60,362,200 3,177,600 1,320,400 64,860,200 1,443,000 58,802,000 2,232,500 2,382,700 64,860,200

1,010,300 2,025,600 3,035,900 1,320,400 1,320,400 75,151,500 66,350,800 8,770,700 30,000 75,151,500 70,795,200 3,035,900 1,320,400 75,151,500 1,506,700 68,830,200 2,304,200 2,510,400 75,151,500

1,057,000 2,120,600 3,177,600 1,320,400 1,320,400 50,932,300 44,272,400 6,629,900 30,000 50,932,300 46,434,300 3,177,600 1,320,400 50,932,300 1,416,300 46,130,400 1,562,000 1,823,600 50,932,300

1,010,300 2,025,600 3,035,900 1,320,400 1,320,400 51,519,200 44,836,800 6,652,400 30,000 51,519,200 47,162,900 3,035,900 1,320,400 51,519,200 1,435,200 46,672,000 1,585,900 1,826,100 51,519,200

The United States and Kentucky Constitutions provide to all Americans the right to the assistance of counsel when they are charged with a crime. Those same constitutional provisions mandate that all persons who cannot afford an attorney and are charged with a crime that carries a potential loss of liberty be provided with an attorney by the state. The Kentucky Department for Public Advocacy (DPA) was established in KRS Chapter 31 to provide representation for indigent persons accused of crimes (or mental states) which may result in their incarceration. Kentuckys mandated public defender services are delivered by a system consisting of full-time employed public defenders and private attorneys contracting with the Department to provide services primarily in situations involving conflicts of interest. The Department, under the direction of the Public Advocate, is attached to the Justice and Public Safety Cabinet for administrative purposes. The Public Advocacy Commission is a 12 person governing board consisting of the Dean or designee from each of the three Kentucky law schools, three members appointed by the Governor from recommendations of the Kentucky Bar Association, one member from recommendations by the Protection and Advocacy Advisory Boards, three members at-large. Two members are appointed by the Kentucky Supreme Court. The Commission insures the Departments ability to provide independent professional representation of individual clients according to the American Bar Association Ten Principles of a Public Defense Delivery System (2002). The Office of the Public Advocate is responsible for the oversight of the agency and includes the Public Advocate, Deputy Public Advocate, General Counsel and all strategic planning and litigation education functions. The Law Operations Division provides budget, personnel, administrative, technology, facility oversight, library services, research, archive services and management support for the Department and its offices across the state.

224

The Trial Division represents all needy persons accused of crimes punishable by loss of liberty, persons accused of juvenile delinquency and status offenses, and all needy persons faced with involuntary commitments due to mental state or condition in all of Kentuckys 120 counties. This includes district, circuit, drug, juvenile, mental health, veterans and family court venues. The Post-Trial Division provides mandated defender services for indigent persons after conviction. These services include providing counsel to indigent persons on appeal to the KY Supreme Court and Court of Appeals, to incarcerated persons on post-conviction actions in state and federal court, and to all juveniles in treatment facilities. Kentucky Protection & Advocacy (P&A), a division within the Department of Public Advocacy attached to the Department for administrative purposes only, was established pursuant to Public Law 99-319 (42 USC 10805 et seq.), Public Law 106-402 (42 USC 15042 et seq.), and KRS 31.010 (2). P&A seeks legal, administrative, and other appropriate remedies to protect and promote the rights of Kentuckians with disabilities. The majority of funds in this divisions budget are federal funds that have strict non-supplanting requirements. Policy The Executive Budget includes General Fund resources in the amount of $4,400,000 in fiscal year 2014 and $2,700,000 in each year of the biennium to cover the cumulative shortfall from prior fiscal years created by declines in revenue and rising caseloads.

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Labor

Labor Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Secretary General Administration and Program Support Workplace Standards Workers' Claims Occupational Safety and Health Review Commission Workers' Compensation Funding Commission TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

4,744,100 17,000 4,761,100 19,995,700 99,650,000 94,265,900 213,911,600 137,400 4,078,700 -228,200 3,987,900 222,660,600 134,814,900 6,993,800 70,347,600 377,900 212,534,200 4,761,100 203,785,200 3,987,900 212,534,200 4,847,000 6,072,400 82,851,000 16,527,200 711,200 101,525,400 212,534,200

5,721,600

5,950,200

5,101,500

5,183,400

5,721,600 10,126,400 106,833,300 108,438,100 225,397,800

5,950,200 678,900 116,115,100 108,603,800 225,397,800

5,101,500 10,126,400 107,341,700 108,948,400 226,416,500

5,183,400 678,900 112,448,500 104,966,800 218,094,200

4,116,000 -25,200 4,090,800 235,210,200 152,979,200 6,968,500 71,857,600 2,726,000 234,531,300 5,721,600 224,718,900 4,090,800 234,531,300 4,855,900 6,472,000 85,694,300 20,456,900 762,500 116,289,700 234,531,300

4,126,800 -25,200 4,101,600 235,449,600 155,583,300 6,981,100 71,347,600 1,500,000 235,412,000 5,950,200 225,360,200 4,101,600 235,412,000 5,094,900 6,827,000 85,841,000 20,239,400 801,400 116,608,300 235,412,000

4,130,800 -25,200 4,105,600 235,623,600 151,696,400 7,164,700 71,857,600 4,226,000 234,944,700 5,101,500 225,737,600 4,105,600 234,944,700 4,541,200 6,440,000 84,658,200 21,788,000 757,200 116,760,100 234,944,700

4,145,400 -25,200 4,120,200 227,397,800 148,807,400 7,205,200 71,347,600 227,360,200 5,183,400 218,056,600 4,120,200 227,360,200 4,603,600 6,733,300 84,379,900 18,039,100 770,900 112,833,400 227,360,200

The Labor Cabinet is created pursuant to KRS 336. The Cabinet consists of the Office of the Secretary, the Department of Workers Claims, and the Department of Workplace Standards. The Office of the Secretary manages and administers the Cabinet. The Department of Workers Claims administers workers compensation claims and ensures that employers comply with the insurance, self-insurance and rehabilitation provisions in KRS Chapter 342. The Department of Workplace Standards regulates state and federal laws regarding prevailing wage, employment standards, occupational safety and health and child labor law. Workplace Standards also administers the payment of workers compensation injury claims by the Special Fund and the Coal Workers Pneumoconiosis Fund. Attached to the Labor Cabinet for administrative purposes are the Kentucky Labor Management Advisory Council, the State Labor Relations Board, the Workers Compensation Funding Commission, the Workers Compensation Advisory Council, the Kentucky Occupational Safety and Health Review Commission, the Occupational Safety and Health Standards Board, the Prevailing Wage Review Board, the Apprenticeship and Training Council, the Employers Mutual Insurance Authority, the Workers' Compensation Nominating Commission, and the Workers Compensation Board. In addition, the Office of General Administration and Program Support for Shared Services and the Office of Inspector General are attached to the Labor Cabinet for administrative purposes. These offices provide principal administrative, human resources, budget, auditing, and internal investigation activities for the Labor Cabinet, Energy and Environment Cabinet, and Public Protection Cabinet.
227

Labor Secretary Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Secretary TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

337,900 2,000 4,337,100 4,677,000 170,000 170,000 4,847,000 3,909,700 937,300 4,847,000 4,677,000 170,000 4,847,000 4,847,000 4,847,000

2,000 4,683,900 4,685,900 170,000 170,000 4,855,900 3,997,100 858,800 4,855,900 4,685,900 170,000 4,855,900 4,855,900 4,855,900

2,000 4,922,900 4,924,900 170,000 170,000 5,094,900 4,236,100 858,800 5,094,900 4,924,900 170,000 5,094,900 5,094,900 5,094,900

2,000 4,354,400 4,356,400 184,800 184,800 4,541,200 3,683,100 858,100 4,541,200 4,356,400 184,800 4,541,200 4,541,200 4,541,200

2,000 4,413,000 4,415,000 188,600 188,600 4,603,600 3,745,500 858,100 4,603,600 4,415,000 188,600 4,603,600 4,603,600 4,603,600

The Secretary of Labor manages and administers the duties of the Cabinet. Funding for the Office of the Secretary is provided by the Kentucky Workers Compensation Funding Commissions special assessments imposed upon workers compensation premiums paid by employers and self-insureds.

228

Labor General Administration and Program Support Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Office of General Admin & Program Support Shared Services Inspector General Shared Services TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

2,993,600 10,400 3,004,000 1,358,900 50,100 2,685,500 4,094,500 1,600 47,100 -1,200 47,500 7,146,000 5,402,600 669,800 6,072,400 3,004,000 3,020,900 47,500 6,072,400 5,336,600 735,800 6,072,400

3,344,200

3,452,600

3,312,200

3,358,900

3,344,200 1,073,600 100 2,685,500 3,759,200

3,452,600 678,900 100 2,685,500 3,364,500

3,312,200 1,073,600 100 2,685,500 3,759,200

3,358,900 678,900 100 2,685,500 3,364,500

48,700 -1,200 47,500 7,150,900 5,796,600 675,400 6,472,000 3,344,200 3,080,300 47,500 6,472,000 5,634,700 837,300 6,472,000

48,700 -1,200 47,500 6,864,600 6,154,100 672,900 6,827,000 3,452,600 3,326,900 47,500 6,827,000 5,944,200 882,800 6,827,000

48,700 -1,200 47,500 7,118,900 5,477,300 962,700 6,440,000 3,312,200 3,080,300 47,500 6,440,000 5,602,700 837,300 6,440,000

48,700 -1,200 47,500 6,770,900 5,770,200 963,100 6,733,300 3,358,900 3,326,900 47,500 6,733,300 5,850,500 882,800 6,733,300

Attached to the Labor Cabinet for administrative purposes, General Administration and Program Support for Shared Services includes the Office of Administrative and Program Support for Shared Services and the Office of Inspector General for Shared Services. Both offices provide the Public Protection Cabinet, Labor Cabinet and Energy and Environment Cabinet agencies with the centralized administrative resources necessary to carry out their mission. The Office of Administrative and Program Support for Shared Services serves as a central point of contact for fiscal, personnel, payroll, budget and operations for the three Cabinets. The Division of Information Services within the Office of Administrative and Program Support for Shared Services is a central point of contact for information technology services for the Public Protection Cabinet and Energy and Environment Cabinet. The Office of Inspector General for Shared Services is the lead investigative agency for the three Cabinets.

229

Labor Workplace Standards Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Employment Standards Workers' Compensation Funds Occupational Safety and Health Commissioner's Office TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,750,500 6,600 1,757,100 4,388,100 1,524,900 71,410,500 77,323,500 135,800 3,861,600 -227,000 3,770,400 82,851,000 10,045,800 2,155,800 70,347,600 301,800 82,851,000 1,757,100 77,323,500 3,770,400 82,851,000 1,757,100 70,928,700 9,758,900 406,300 82,851,000

2,377,400

2,497,600

1,789,300

1,824,500

2,377,400

2,497,600

1,789,300

1,824,500

1,250,000 78,193,600 79,443,600

1,250,000 78,209,300 79,459,300

1,256,500 77,739,100 78,995,600

1,264,800 77,406,500 78,671,300

3,897,300 -24,000 3,873,300 85,694,300 11,730,300 2,106,400 71,857,600 85,694,300 2,377,400 79,443,600 3,873,300 85,694,300 2,377,400 72,537,200 10,333,400 446,300 85,694,300

3,908,100 -24,000 3,884,100 85,841,000 12,428,500 2,064,900 71,347,600 85,841,000 2,497,600 79,459,300 3,884,100 85,841,000 2,497,600 72,070,500 10,802,000 470,900 85,841,000

3,897,300 -24,000 3,873,300 84,658,200 10,784,700 2,015,900 71,857,600 84,658,200 1,789,300 78,995,600 3,873,300 84,658,200 1,789,300 72,530,900 9,896,800 441,200 84,658,200

3,908,100 -24,000 3,884,100 84,379,900 11,033,000 1,999,300 71,347,600 84,379,900 1,824,500 78,671,300 3,884,100 84,379,900 1,824,500 72,037,900 10,068,600 448,900 84,379,900

The Department of Workplace Standards operates under the authority of KRS Chapters 336, 337, 338, 339, 342, 343, and 388. The Department is comprised of the Division of Occupational Safety and Health Compliance; the Division of Employment Standards, Apprenticeship and Mediation; the Division of Occupational Safety and Health Education and Training; and the Division of Workers Compensation Funds. The Division of Workers Compensation Funds is responsible for the administration and legal representation of the Special Fund and Coal Workers Pneumoconiosis Fund and the maintenance of records regarding the payment of workers compensation injury claims by these funds. The Division of Occupational Safety and Health Compliance ensures that employers are preventing hazards to the safety and health of all employees arising from exposure to harmful conditions and practices in the work environment. Penalties collected by the Division are returned to the General Fund. The Division of Occupational Safety and Health Education and Training promotes voluntary compliance with the Kentucky Occupational Safety and Health rules and regulations by providing training, on-site consultations, technical data, and technical and informational materials. The Division also gathers and monitors statistical data concerning job injuries and illnesses, and acts as a liaison between the Cabinet and the Kentucky Occupational Safety and Health Standards Board.

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The Division of Employment Standards, Apprenticeship and Mediation is responsible for enforcing areas of Kentucky labor laws including minimum wage, overtime, prevailing wage, child labor, wage discrimination based on sex, apprenticeship and training and mediation. The Department of Workplace Standards is funded with restricted agency receipts garnered through the Workers Compensation Funding Commission under the authority of KRS 342; federal funding received from the U.S. Department of Labor, Occupational Safety and Health Administration; and General Fund dollars that support only the Division of Employment Standards, Apprenticeship and Mediation Services.

231

Labor Workers' Claims Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Workers' Claims TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,213,600 150,000 15,163,600 16,527,200 16,527,200 13,597,900 2,874,300 55,000 16,527,200 16,527,200 16,527,200 16,527,200 16,527,200

150,000 20,306,900 20,456,900 20,456,900 14,791,200 2,939,700 2,726,000 20,456,900 20,456,900 20,456,900 20,456,900 20,456,900

150,000 20,089,400 20,239,400 20,239,400 15,743,100 2,996,300 1,500,000 20,239,400 20,239,400 20,239,400 20,239,400 20,239,400

150,000 21,638,000 21,788,000 21,788,000 14,622,100 2,939,900 4,226,000 21,788,000 21,788,000 21,788,000 21,788,000 21,788,000

150,000 17,889,100 18,039,100 18,039,100 15,042,500 2,996,600 18,039,100 18,039,100 18,039,100 18,039,100 18,039,100

The Department of Workers' Claims operates under the authority of KRS Chapters 11, 342, and 336. The Department enforces statutes with regard to workers compensation coverage for Kentuckys 2.1 million employees, administers workers compensation claims and ensures that employers comply with the insurance, self-insurance, and rehabilitation provisions in KRS Chapter 342. The Department has four divisions. The Division of Claims Processing processes injury claims. The Division of Information and Research collects, stores and retrieves data and disseminates information for the Department. The Division of Security and Compliance handles electronic filings for coverage, enforcement investigations and self-insurance issues. The Division of Ombudsman and Workers Compensation Specialist Services provides services to employees, employers, insurance carriers, and medical providers. The Office of Administrative Law Judges conducts hearings; supervises the presentation of evidence and renders final decisions, orders or awards regarding workers compensation claims. The Workers Compensation Board is attached to the Department for administrative purposes. The Board rules on appeals of decisions rendered by administrative law judges in the Kentucky Workers Claims' and Compensation system pursuant to KRS 342.213 and KRS 342.285. The board consists of three members appointed by the Governor to four-year terms. These members must posses the qualifications of appeals court justices and are held to those same professional ethical standards of behavior and compensation. A decision from two of the three board members constitutes a decision of the board. The Workers Compensation Advisory Council and the Workers Compensation Nominating Commission established by KRS Chapter 342 are attached to the Department for administrative purposes. Funding for the Department of Workers Claims is provided by the Kentucky Workers Compensation Funding Commissions special assessments imposed upon workers compensation premiums paid by employers and self-insureds. Policy The Executive Budget provides $4,226,000 in Restricted Funds for an online filing system that is part of the capital budget recommendation.

232

Labor Occupational Safety and Health Review Commission Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Occupational Safety and Health Review Commission TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

42,000 669,200 711,200 711,200 660,100 51,100 711,200 711,200 711,200 711,200 711,200

762,500 762,500 762,500 711,500 51,000 762,500 762,500 762,500 762,500 762,500

801,400 801,400 801,400 750,400 51,000 801,400 801,400 801,400 801,400 801,400

757,200 757,200 757,200 706,300 50,900 757,200 757,200 757,200 757,200 757,200

770,900 770,900 770,900 720,000 50,900 770,900 770,900 770,900 770,900 770,900

The Kentucky Occupational Safety and Health Review Commission is an independent quasi-judicial administrative agency which hears and rules on appeals of citations, pursuant to KRS 338.071 and KRS 338.081, issued by the Labor Cabinets Division of Occupational Safety and Health Compliance. The Commission receives and processes over 200 cases per year and holds hearings throughout the state. Written findings of fact, conclusions of law, and the recommended decisions issued by the hearing officers may be appealed to the Commission and then to Franklin Circuit Court. Funding for the Commission is provided by the Kentucky Workers Compensation Funding Commissions special assessments imposed upon workers compensation premiums paid by employers and sef-insureds.

233

Labor Workers' Compensation Funding Commission Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Workers' Compensation Funding Commission Benefit Reserve KCWP Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

12,655,200 97,923,000 110,578,200 110,578,200 101,198,800 305,500 21,100 101,525,400 101,525,400 101,525,400 1,825,400 98,387,600 1,312,400 101,525,400

9,052,800 105,431,200 1,805,700 116,289,700 116,289,700 115,952,500 337,200 116,289,700 116,289,700 116,289,700 1,968,700 110,891,700 3,429,300 116,289,700

114,713,000 1,895,300 116,608,300 116,608,300 116,271,100 337,200 116,608,300 116,608,300 116,608,300 2,058,300 111,623,500 2,926,500 116,608,300

9,052,800 105,933,100 1,774,200 116,760,100 116,760,100 116,422,900 337,200 116,760,100 116,760,100 116,760,100 1,937,200 111,393,600 3,429,300 116,760,100

111,031,600 1,801,800 112,833,400 112,833,400 112,496,200 337,200 112,833,400 112,833,400 112,833,400 1,964,800 107,942,100 2,926,500 112,833,400

The Workers Compensation Funding Commission was created through the passage of House Bill 1 by the 1987 Extraordinary Session of the General Assembly. House Bill 928, passed by the 1994 General Assembly, transferred the Commission to the Labor Cabinet for administrative purposes. The agency has the public purpose of controlling, investing, and managing the funds collected pursuant to KRS Chapter 342. The Commission is governed by a seven-member Board of Directors. Board members include the Secretaries of Labor, Economic Development, and Finance and Administration Cabinets. In addition, the Governor appoints four members who represent labor, insurance companies writing workers compensation insurance, employers, and self-insured employers and groups. The Commission collects two separate assessments as required by KRS Chapter 342. One assessment is imposed on Kentucky Workers Compensation premiums received by all insurance carriers and group self-insurers, and on a calculationbased premium equivalent for employers carrying their own risk. A second assessment is imposed on such premiums received from employers engaged in the severance or processing of coal. These funds are to be used to fund and pre-fund the liabilities of the Special Fund and the Coal Workers Pneumoconiosis Fund; finance the administration and operations of the Special Fund and the Coal Workers Pneumoconiosis Fund; finance the administration and operations of the Funding Commission; finance all programs in the Labor Cabinet except the Division of Employment Standards, Apprenticeship and Mediation; and pay the liabilities and fund the operating budget for the Uninsured Employers Fund in the Office of the Attorney General. These assessments are credited to the Commissions Benefit Reserve Fund, and the excess of collections over Special Fund liabilities, the Coal Workers Pneumoconiosis Fund liabilities, and budgeted expenditures are invested according to the Commissions policies and in compliance with KRS Chapter 386. The agency may perform or contract for audits of those entities subject to assessments, and may coordinate with other governmental agencies to ensure compliance with the statutes relating to Workers Compensation funding. The Board is required to engage a certified public accountant to conduct an annual examination of the Commissions affairs and report the findings to the Governor and the Auditor of Public Accounts. Included in the operating expenses are the fund transfers that represent the amounts the Commission will transfer to the Labor Cabinet and the Uninsured Employers Fund for those programs statutorily supported by assessments. The Commission maintains a diverse financial long-term investment portfolio and has an agreement with the Office of Financial Management, within the Finance and Administration Cabinet, for short-term overnight investment advantages.

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Personnel

Personnel Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT General Operations Public Employees Deferred Compensation Authority Workers' Compensation Benefits and Reserve State Group Health Insurance Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

5,557,800 -4,500,000 1,057,800 18,878,900 53,032,800 7,889,800 -2,691,600 77,109,900 78,167,700 54,172,600 6,112,800 1,058,100 61,343,500 1,057,800 60,285,700 61,343,500 26,818,800 8,877,200 24,589,700 1,057,800 61,343,500

1,057,800

1,057,800

959,600

959,600

1,057,800 16,824,200 55,764,700 8,893,100 -2,692,400 78,789,600 79,847,400 56,337,100 7,862,700 1,058,100 65,257,900 1,057,800 64,200,100 65,257,900 29,403,600 9,148,900 25,647,600 1,057,800 65,257,900

1,057,800 14,589,500 57,128,400 9,136,900 -2,688,900 78,165,900 79,223,700 58,497,600 8,064,400 1,058,100 67,620,100 1,057,800 66,562,300 67,620,100 30,593,200 9,282,100 26,687,000 1,057,800 67,620,100

959,600 16,824,200 54,053,200 8,839,200 -4,692,400 75,024,200 75,983,800 55,990,400 6,523,000 959,900 63,473,300 959,600 62,513,700 63,473,300 27,764,400 9,112,100 25,637,200 959,600 63,473,300

959,600 12,510,500 54,755,400 8,921,100 -2,688,900 73,498,100 74,457,700 57,366,700 6,474,100 959,900 64,800,700 959,600 63,841,100 64,800,700 28,028,200 9,161,500 26,651,400 959,600 64,800,700

The Personnel Cabinet provides human resources management for Kentucky state government agencies. The Cabinet coordinates the personnel and payroll functions for most of state government. It coordinates state employee benefit packages, such as health and life insurance, workers compensation, and deferred compensation programs. The Cabinet coordinates state governments employee application process, as well as recruiting and retention functions. Currently, the Personnel Cabinet is comprised of five appropriation units: General Operations, Public Employees Deferred Compensation Authority, Workers Compensation Benefits and Reserve, the State Group Health Insurance Fund, and the State Salary and Compensation Fund. The Department of Personnel was created in 1960 under KRS 18.160. At the time of its inception, it was headed by a personnel board consisting of five members appointed by the Governor. The Board had the responsibility to forward to the Governor a list of qualified applicants for the position of Commissioner of Personnel. In 1972, the legislature made the Commissioner of Personnel a direct appointee of the Governor without nominations from the Personnel Board. In 1982, KRS 18.160 was repealed and re-enacted under KRS chapter 18A.015. Legislation enacted that year also authorized the Department to charge other state agencies their pro rata share of costs associated with the administration of the Executive Branchs personnel-related functions. In 1998, the General Assembly elevated the Department to Cabinet status.

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Personnel General Operations Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT General Administration Governmental Service Center Employee Relations Employee Insurance Personnel Administration TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

2,187,400 19,721,800 8,024,800 -2,691,600 27,242,400 27,242,400 21,236,600 5,581,900 300 26,818,800 26,818,800 26,818,800 2,598,200 973,100 1,566,800 8,536,500 13,144,200 26,818,800

423,600 23,284,700 9,033,100 -2,692,400 30,049,000 30,049,000 22,076,100 7,327,200 300 29,403,600 29,403,600 29,403,600 2,831,900 1,051,500 1,672,300 8,893,100 14,954,800 29,403,600

645,400 24,013,400 9,281,900 -2,688,900 31,251,800 31,251,800 23,064,100 7,528,800 300 30,593,200 30,593,200 30,593,200 2,986,700 1,102,800 1,749,700 9,136,900 15,617,100 30,593,200

423,600 21,573,200 8,979,200 -2,692,400 28,283,600 28,283,600 21,771,900 5,992,200 300 27,764,400 27,764,400 27,764,400 2,788,400 1,058,000 1,660,200 8,839,200 13,418,600 27,764,400

519,200 21,640,400 9,066,100 -2,688,900 28,536,800 28,536,800 22,084,600 5,943,300 300 28,028,200 28,028,200 28,028,200 2,833,800 1,072,600 1,685,600 8,921,100 13,515,100 28,028,200

The General Operations unit includes the Office of the Secretary, the Department of Human Resources Administration and the Department of Employee Insurance. The Secretary of the Personnel Cabinet is the executive and administrative head of the cabinet and supervises all activities of the cabinet. The Office of the Secretary includes: the Office of Administrative Services, the Office of Legal Services, the Office for Employee Relations, the Office of Diversity and Equality, the Governmental Services Center, and the Center for Strategic Innovation. The Office of Administrative Services responsibilities include overseeing the internal operations of the Cabinet, including personnel related matters, budgeting, accounting, property management, and procurement functions. The Office of Legal Services provides legal services relating to the enforcement and application of state and federal laws and regulations governing employment with both the Cabinet and other Executive Branch agencies. The Office of Employee Relations administers the Kentucky Employee Assistance Program which provides assistance to troubled employees; life insurance benefits for state employees; the employee suggestion system; a mediation program to help resolve employment problems; the state safety program; and the self-insured Workers Compensation program. The Workers Compensation program provides benefits to workers injured on the job and manages a return-to-work program. The program provides coverage for state employees, Murray State University, the Kentucky Community Technical College System, volunteer firefighters, volunteer ambulance personnel, and various local government entities. The Office of Diversity and Equality is responsible for administering the Equal Employment Opportunity and Diversity Programs, the Minority Management Trainee Program, and the Commonwealths affirmative action plan established in 18A.138. The Governmental Services Center is responsible for government-wide training, consultation, and organizational development, including the coordination of the Commonwealths strategic planning and performance measurement processes. It also has the responsibility of maintaining the employee performance management system. The Center for Strategic Innovation is responsible for setting the strategic direction for the Cabinet, improving processes, developing services, and planning future service offerings. The Department of Human Resources Administration consists of three divisions: the Division of Employee Management, the Division of Career Opportunities, and the Division of Technology Services. The responsibilities of this department include recruiting, counseling, and certifying persons for employment with the Commonwealth; maintaining the classification and compensation system; auditing and certifying state payrolls; preparing and maintaining the official personnel and payroll records;
236

and coordinating information technology within the Cabinet. In addition, the development and implementation of the replacement personnel and payroll system is coordinated through the Department of Human Resources Administration. The Department of Employee Insurance manages state governments self-insured health insurance program, the Kentucky Employees Health Plan. The Plan provides health insurance coverage for state employees, state and teacher retirees that are not yet Medicare eligible, local boards of education, local health departments, and other public and quasi-public agencies. The Department also provides administrative support to the Group Health Insurance Board under KRS 18A.226 and 18A.227. There are two divisions organized under the department: the Division of Insurance Administration and the Division of Financial and Data Services. Policy Included in the above Restricted Fund appropriation is $2,692,300 in fiscal year 2015 and $2,689,400 in fiscal year 2016 for debt service on bonds previously issued for the Kentucky Human Resources Information System (KHRIS). The Cabinet is authorized to collect a pro rata assessment from all state agencies and other organizations that will use the new personnel and payroll system. The Cabinet shall retain the funds in a Special Project Account, the balance of which will be transferred to the General Fund to cover the debt service payment.

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Personnel Public Employees Deferred Compensation Authority Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Public Employees Deferred Compensation Authority TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

7,836,800 8,700,000 -67,500 16,469,300 16,469,300 8,420,000 457,200 8,877,200 8,877,200 8,877,200 8,877,200 8,877,200

7,592,100 9,430,000 -70,000 16,952,100 16,952,100 8,687,100 461,800 9,148,900 9,148,900 9,148,900 9,148,900 9,148,900

7,803,200 10,065,000 -72,500 17,795,700 17,795,700 8,820,200 461,900 9,282,100 9,282,100 9,282,100 9,282,100 9,282,100

7,592,100 9,430,000 -70,000 16,952,100 16,952,100 8,655,000 457,100 9,112,100 9,112,100 9,112,100 9,112,100 9,112,100

7,840,000 10,065,000 -72,500 17,832,500 17,832,500 8,704,400 457,100 9,161,500 9,161,500 9,161,500 9,161,500 9,161,500

The Kentucky Public Employees Deferred Compensation Authority administers tax sheltered, supplemental retirement savings programs as established in the U.S. Internal Revenue Code Sections 457, 401(k), Roth 401(k), and 403(b) and in accordance with KRS 18A.230-18A.350. These programs are an optional benefit for Kentuckys public employees.

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Personnel Workers' Compensation Benefits and Reserve Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Workers' Compensation Benefits and Reserve TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

8,854,700 24,611,000 -67,500 33,398,200 33,398,200 24,516,000 73,700 24,589,700 24,589,700 24,589,700 24,589,700 24,589,700

8,808,500 23,050,000 -70,000 31,788,500 31,788,500 25,573,900 73,700 25,647,600 25,647,600 25,647,600 25,647,600 25,647,600

6,140,900 23,050,000 -72,500 29,118,400 29,118,400 26,613,300 73,700 26,687,000 26,687,000 26,687,000 26,687,000 26,687,000

8,808,500 23,050,000 -70,000 -2,000,000 29,788,500 29,788,500 25,563,500 73,700 25,637,200 25,637,200 25,637,200 25,637,200 25,637,200

4,151,300 23,050,000 -72,500 27,128,800 27,128,800 26,577,700 73,700 26,651,400 26,651,400 26,651,400 26,651,400 26,651,400

Created in 1990, the Workers Compensation Benefits and Reserve is state governments self-insured Workers Compensation program. The program provides coverage to the executive, legislative, and judicial branches of government, but excludes the Transportation Cabinet and all state universities except Murray State University. The program also covers the Kentucky Community and Technical College System, volunteer firefighters, volunteer ambulance personnel, and employees of some county clerks or sheriffs offices when the countys population is 70,000 or more. Workers Compensation includes a return-towork program for injured employees, managed care, and a statewide safety program. The revenue accruing to the program is derived from participating agencies based upon the claims history of the agency and the number of covered employees. Claims history is calculated based upon a three year running average.

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Personnel State Salary and Compensation Fund Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund TOTAL SOURCE OF FUNDS Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

4,500,000 -4,500,000

The State Salary and Compensation Fund is a statewide pool to provide the additional funds necessary for state agencies to finance the salary and compensation policy for state employees.

240

Personnel State Group Health Insurance Fund Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT State Group Health Insurance Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,057,800 1,057,800 1,057,800 1,057,800 1,057,800 1,057,800 1,057,800 1,057,800 1,057,800

1,057,800 1,057,800 1,057,800 1,057,800 1,057,800 1,057,800 1,057,800 1,057,800 1,057,800

1,057,800 1,057,800 1,057,800 1,057,800 1,057,800 1,057,800 1,057,800 1,057,800 1,057,800

959,600 959,600 959,600 959,600 959,600 959,600 959,600 959,600 959,600

959,600 959,600 959,600 959,600 959,600 959,600 959,600 959,600 959,600

The State Group Health Insurance Fund provides funding to support a dependent subsidy for quasi-governmental employers participating in the Kentucky Employees Health Plan.

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Postsecondary Education

Postsecondary Education Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Continuing Approp.-General Fund Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,175,796,000 19,400 3,456,200 10,097,900

1,277,014,300

1,385,341,700

1,158,525,200

1,198,778,900

1,189,369,500 Total General Fund Tobacco Settlement - Phase I 4,887,800 Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement 743,000 Budget Reduction-General Fund Tobacco -2,399,200 Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Council on Postsecondary Education Kentucky Higher Education Assistance Authority Postsecondary Education Institutions TOTAL EXPENDITURES 3,231,600 7,512,900 4,546,665,400 14,459,100 4,568,637,400

1,277,014,300 4,837,800

1,385,341,700 4,787,800

1,158,525,200 6,072,500

1,198,778,900 4,707,500

4,837,800 1,330,795 4,714,322,500 8,716,400 4,724,369,695

4,787,800 909,295 4,879,605,100 6,548,600 4,887,062,995

6,072,500 1,470,800 4,720,095,600 14,783,600 -10,500,000 4,725,850,000 222,500 907,149,800 907,372,300 6,797,820,000 3,254,196,200 2,126,315,100 1,153,363,200 131,223,400 131,421,200 6,796,519,100 1,158,525,200 6,072,500 4,724,771,600 907,149,800 6,796,519,100 76,776,100 229,895,900 6,489,847,100 6,796,519,100

4,707,500 1,078,400 4,891,526,500 14,780,000 -5,000,000 4,902,384,900 222,500 938,190,700 938,413,200 7,044,284,500 3,352,923,300 2,205,024,000 1,178,583,600 171,328,700 135,021,600 7,042,881,200 1,198,778,900 4,707,500 4,901,204,100 938,190,700 7,042,881,200 107,970,600 233,418,200 6,701,492,400 7,042,881,200

889,312,800 889,312,800 6,650,551,300 3,195,755,500 2,058,741,500 1,130,962,300 133,890,900 126,573,800 6,645,924,000 1,186,435,500 3,231,600 4,567,166,600 889,090,300 6,645,924,000 74,190,400 232,445,200 6,339,288,400 6,645,924,000

907,856,800 907,856,800 6,914,078,595 3,312,527,646 2,142,178,254 1,200,072,400 126,190,600 132,200,400 6,913,169,300 1,277,014,300 4,837,800 4,723,460,400 907,856,800 6,913,169,300 78,035,500 263,747,900 6,571,385,900 6,913,169,300

938,869,000 938,869,000 7,216,061,495 3,406,298,946 2,220,912,754 1,256,859,500 195,671,600 135,810,800 7,215,553,600 1,385,341,700 4,787,800 4,886,555,100 938,869,000 7,215,553,600 170,311,100 274,454,900 6,770,787,600 7,215,553,600

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Postsecondary Education Council on Postsecondary Education Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Continuing Approp.-General Fund Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Agency Operations Pass Through Programs Federal Programs Strategic Investment and Incentive Funding Program TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

43,933,000 19,400 1,656,200 1,643,600 47,252,200 4,187,800 442,000 -2,098,200 2,531,600 2,866,200 2,020,000 2,997,400 7,883,600

48,415,400

140,711,100

47,707,400

80,233,000

48,415,400 4,187,800

140,711,100 4,187,800

47,707,400 4,972,500

80,233,000 3,607,500

4,187,800 1,330,795 2,120,000 4,110,000 7,560,795

4,187,800 909,295 2,120,000 4,110,000 7,139,295

4,972,500 1,470,800 2,020,000 4,110,000 -500,000 7,100,800 222,500 18,073,800 18,296,300 78,077,000 12,867,200 2,660,200 57,892,700 3,238,000 118,000 76,776,100 47,707,400 4,972,500 6,022,400 18,073,800 76,776,100 7,297,000 10,223,000 5,751,800 53,504,300 76,776,100

3,607,500 1,078,400 2,020,000 4,110,000 7,208,400 222,500 18,102,500 18,325,000 109,373,900 13,005,000 2,659,300 56,788,800 35,399,500 118,000 107,970,600 80,233,000 3,607,500 6,027,600 18,102,500 107,970,600 7,405,200 10,484,100 5,780,500 84,300,800 107,970,600

18,216,300 18,216,300 75,883,700 11,020,300 3,033,500 60,018,600 118,000 74,190,400 47,252,200 2,531,600 6,412,800 17,993,800 74,190,400 7,723,400 10,041,900 5,671,800 50,753,300 74,190,400

18,780,800 18,780,800 78,944,795 11,963,200 2,859,400 63,094,900 118,000 78,035,500 48,415,400 4,187,800 6,651,500 18,780,800 78,035,500 8,385,300 10,347,200 6,458,800 52,844,200 78,035,500

18,780,800 18,780,800 170,818,995 12,433,700 2,858,100 81,830,300 73,071,000 118,000 170,311,100 140,711,100 4,187,800 6,631,400 18,780,800 170,311,100 8,753,000 10,632,200 6,458,800 144,467,100 170,311,100

The Council on Postsecondary Education co-ordinates public postsecondary education, bringing a statewide perspective to budget and policy issues and planning. The Council both guides the system and serves as an advocate for the postsecondary education sector of the states education enterprise. The Council licenses private non-profit and proprietary degree-granting institutions and operates Kentuckys adult education system, bringing all of Kentuckys postsecondary and adult education providers under a single authority.

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The Councils statutory responsibilities include: development of a strategic plan for an efficient and effective system of postsecondary education that provides statewide access without unnecessary competition and duplication, recognizing both public and independent institutions; implementation of the strategic plan through public accountability, including reporting and evaluation of institutional performance; approval of the creation, modification, and elimination of programs and degrees and transferability of credits earned; approval of tuition rates and admission requirements; approval of capital projects and real property acquisitions by institutions; training and orientation of new members of institutional governing boards; liaison between postsecondary education institutions and the Kentucky Department of Education, the Education Professional Standards Board, the Education and Workforce Development Cabinet, and the Cabinet for Economic Development; operation of the Kentucky Virtual High School and the Kentucky Virtual Library; coordination and acquisition of technology resources for broadest access and cost efficiency; collection of data and research and analysis concerning the overall needs of postsecondary and adult education; administration of the statewide adult education and literacy program; and assistance in the development of the postsecondary institutions biennial budget requests and recommendations concerning operating and capital appropriations to the Governor and the General Assembly.

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Postsecondary Education Council on Postsecondary Education Agency Operations Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Fund Transfers Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

6,901,200 19,400 6,920,600 1,262,300 520,000 1,782,300 8,702,900 6,075,000 1,618,400 30,000 7,723,400 6,920,600 802,800 7,723,400

7,343,800

7,731,600

6,884,600

6,987,600

7,343,800 839,465 620,000 1,459,465 8,803,265 6,911,000 1,444,300 30,000 8,385,300 7,343,800 1,041,500 8,385,300

7,731,600 417,965 620,000 1,037,965 8,769,565 7,280,000 1,443,000 30,000 8,753,000 7,731,600 1,021,400 8,753,000

6,884,600 979,500 520,000 -500,000 999,500 7,884,100 6,021,900 1,245,100 30,000 7,297,000 6,884,600 412,400 7,297,000

6,987,600 587,100 520,000 1,107,100 8,094,700 6,131,000 1,244,200 30,000 7,405,200 6,987,600 417,600 7,405,200

Agency Operations include all of the staff and operating expenses necessary to manage the agency and programs of the Council except those funded with Federal grants. Activities of the professional staff include review of academic programs, admission standards, tuition rates, credit transfer procedures, adult education, technology resources and on-line learning; funding for science and technology initiatives; minority outreach; research and data analysis; and licensing of private postsecondary educational institutions. Also included in this budget are the business functions of the agency such as human resources, communications, budget, accounting, and purchasing, as well as board relations.

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Postsecondary Education Council on Postsecondary Education Pass Through Programs Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Contract Spaces Professional Education Preparation Program Minority Student College Prep Program State Autism Training Center SREB Doctoral Scholars Program Pass Through - Other Cancer Research Insts Mtchg Fd TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

5,931,900 5,931,900 4,110,000 4,110,000 10,041,900 5,000 10,036,900 10,041,900 5,931,900 4,110,000 10,041,900 5,201,600 265,100 185,200 132,400 71,500 76,100 4,110,000 10,041,900

6,237,200 6,237,200 4,110,000 4,110,000 10,347,200 5,000 10,342,200 10,347,200 6,237,200 4,110,000 10,347,200 5,441,800 270,400 188,900 135,000 125,000 76,100 4,110,000 10,347,200

6,522,200 6,522,200 4,110,000 4,110,000 10,632,200 5,000 10,627,200 10,632,200 6,522,200 4,110,000 10,632,200 5,712,600 275,700 192,600 137,700 127,500 76,100 4,110,000 10,632,200

6,113,000 6,113,000 4,110,000 4,110,000 10,223,000 5,000 10,218,000 10,223,000 6,113,000 4,110,000 10,223,000 5,419,000 251,900 176,000 125,800 67,900 72,400 4,110,000 10,223,000

6,374,100 6,374,100 4,110,000 4,110,000 10,484,100 5,000 10,479,100 10,484,100 6,374,100 4,110,000 10,484,100 5,680,100 251,900 176,000 125,800 67,900 72,400 4,110,000 10,484,100

Funds are appropriated to the Council on Postsecondary Education and subsequently "passed through" to other agencies or entities. The Council monitors the implementation of the programs but is not responsible for actual day-to-day operations. The Contract Spaces Program provides Kentucky students with access to professional programs in veterinary medicine and optometry through contracts administered by the Southern Regional Education Board and Indiana University. In veterinary medicine, Kentucky contracts for spaces at Auburn University and Tuskegee Institute. For optometry students spaces are available at the Southern College of Optometry, University of Alabama, and Indiana University. Contract fees guarantee a fixed number of spaces in these academic programs for qualified Kentucky residents. Enrolled students are required to pay only the equivalent of the in-state tuition at the host institution. Students are supported for four years. To reserve these spaces and to help defray cost, the Commonwealth pays a contract fee per space to each participating institution. The Cancer Research Institutions Matching Fund is administered by the Council on Postsecondary Education to support cancerrelated research that will ultimately reduce the morbidity and mortality from these diseases. The program is funded by a one cent per pack cigarette surtax, and the two research institutions UK and U of L - provide a dollar for dollar match from external sources. The Professional Education Preparation Program (PEPP) was established in 1980 pursuant to KRS 164.028 through 164.0282. The program assists students and prospective students from rural and inner-city areas experiencing medical and dental workforce shortages to gain admission to and graduate from medical and dental school. All funds appropriated to the Council for the PEPP program are allocated to the University of Kentucky, the University of Louisville, and the University of Pikeville to conduct pre-freshman workshops, undergraduate workshops, student assessment conferences, and MCAT/DAT test assistance with tutoring and summer job placement. The Governors Minority Student College Preparation Program was established in 1986 to provide academic enrichment activities for middle school students, encourage them to stay in school and to enter college, to make young African-American students aware of the benefits and value of college and make them more likely to consider college as an achievable option, and to prepare these students to be successful in college-level work. The program places emphasis on early intervention in an attempt to overcome problems at the high school level that tend to reduce the pool of minorities interested in attending and prepared to do well in college. Approximately 1,100 middle and high-school students will be enrolled in this program each year.

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The Kentucky State Autism Training Center contracts with the University of Louisville to provide coordinated services for training individuals to deliver services to children diagnosed with autism spectrum disorders. The Southern Regional Education Board Doctoral Scholars Program supports and encourages minority students to pursue doctoral degrees. The program seeks to increase the number of minority faculty members employed as college faculty and executives by increasing the available pool of minority candidates. Students are provided scholarships and other financial support to attend institutions throughout the southern region and in some Midwest states. Kentucky has 35 students currently in the program, 20 at U of L and 15 at UK. Of the 60 students who have already graduated, 23 are currently employed in Kentucky. The Washington Internship Program provides scholarships for students who spend a semester in Washington, DC in work-study programs in international relations, journalism, law, medicine, public relations, business, the arts, science and technology, education or counseling. Policy The Executive Budget includes additional General Fund of $217,400 in fiscal year 2015 and $478,500 in fiscal year 2016 for tuition rate increases for Contract Spaces.

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Postsecondary Education Council on Postsecondary Education Federal Programs Revised FY 2014 SOURCE OF FUNDS Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Federal Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

5,894,300 5,894,300 5,894,300 1,674,300 399,000 3,598,500 5,671,800 5,671,800 5,671,800

6,458,800 6,458,800 6,458,800 1,781,200 399,000 4,278,600 6,458,800 6,458,800 6,458,800

6,458,800 6,458,800 6,458,800 1,882,700 399,000 4,177,100 6,458,800 6,458,800 6,458,800

222,500 5,751,800 5,974,300 5,974,300 1,754,300 399,000 3,598,500 5,751,800 5,751,800 5,751,800

222,500 5,780,500 6,003,000 6,003,000 1,783,000 399,000 3,598,500 5,780,500 5,780,500 5,780,500

The Council on Postsecondary Education administers two federal programs (exclusive of the Adult Education related grants): Improving Educator Quality State Grant Program and Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) Kentucky. The Improving Educator Quality State Grant program focuses on preparing, training, and recruiting high-quality teachers. The Council on Postsecondary Education provides competitive grants to partnerships comprised of schools of education and arts and sciences, along with one or more high-need local school districts. The Gaining Early Awareness and Readiness program is a federal initiative that encourages young people to stay in school, study hard and take courses that prepare them to succeed in college. The program provides a range of services to low-income students by supporting new or expanded activities that strengthen schools. GEAR UP grants are awarded to states as well as partnerships comprising schools, postsecondary institutions and non-school partners. GEAR UP state grants stress early intervention and provide scholarships. Each grant dollar must be matched through a combination of state, local, and private funds.

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Postsecondary Education Council on Postsecondary Education Strategic Investment and Incentive Funding Program Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Current Year Appropriation Continuing Approp.-General Fund Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Research Challenge Trust Fund Regional University Excellence Trust Fund Technology Initiative Trust Fund Physical Facilities Trust Fund Workforce Development Trust Fund Adult Education and Literacy Funding Program Science and Technology Funding Program Special Initiatives Funding Program Performance Funding TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

31,099,900 1,656,200 1,643,600 34,399,700 4,187,800 442,000 -2,098,200 2,531,600 1,603,900 1,500,000 -1,112,600 1,991,300 12,322,000 12,322,000 51,244,600 3,271,000 1,011,100 46,353,200 118,000 50,753,300 34,399,700 2,531,600 1,500,000 12,322,000 50,753,300 4,187,800

34,834,400

126,457,300

34,709,800

66,871,300

34,834,400 4,187,800

126,457,300 4,187,800

34,709,800 4,972,500

66,871,300 3,607,500

4,187,800 491,330 1,500,000 1,991,330 12,322,000 12,322,000 53,335,530 3,271,000 1,011,100 48,444,100 118,000 52,844,200 34,834,400 4,187,800 1,500,000 12,322,000 52,844,200 4,187,800

4,187,800 491,330 1,500,000 1,991,330 12,322,000 12,322,000 144,958,430 3,271,000 1,011,100 66,996,000 73,071,000 118,000 144,467,100 126,457,300 4,187,800 1,500,000 12,322,000 144,467,100 11,171,800 1,398,000 14,309,400 55,872,000 468,000 33,336,700 5,946,600 3,964,600 18,000,000 144,467,100

4,972,500 491,300 1,500,000 1,991,300 12,322,000 12,322,000 53,995,600 5,091,000 1,011,100 44,046,200 3,238,000 118,000 53,504,300 34,709,800 4,972,500 1,500,000 12,322,000 53,504,300 4,972,500

3,607,500 491,300 1,500,000 1,991,300 12,322,000 12,322,000 84,792,100 5,091,000 1,011,100 42,681,200 35,399,500 118,000 84,300,800 66,871,300 3,607,500 1,500,000 12,322,000 84,300,800 5,935,500 465,500 5,575,300 32,443,000 30,897,500 5,433,300 3,550,700 84,300,800

5,788,800

5,874,600

5,575,300 3,156,500 30,897,500 5,433,300 3,469,200 53,504,300

33,514,200 5,717,900 1,544,600 50,753,300

32,984,900 5,832,300 3,964,600 52,844,200

The Strategic Investment and Incentive Funding Program was created in the Kentucky Postsecondary Education Improvement Act of 1997, codified as KRS 164.7911. This program consists of appropriations for the Research Challenge Trust Fund and the Technology Initiative Trust Fund, as well as three programs established by the Council through the budget process: the Adult Education and Literacy Funding Program, the Science and Technology Funding Program, and the Special Initiatives Funding
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Program. These appropriations are made to the Council, which is responsible for establishing criteria and distributing these funds to postsecondary institutions in a manner that will allow the Commonwealth to accomplish the goals established in KRS 164.003(2). Adult Education and Literacy Funding Program Adult Education and Literacy aims to improve the educational status of adult Kentuckians who do not have a high school diploma, who function at low levels of literacy or who want to learn the English language. Kentucky Adult Education contracts with local boards of education, community and technical colleges, community-based organizations, education consortia, public and private non-profit organizations and correctional institutions to provide adult education and literacy services in a variety of settings and locations. Every Kentucky county has a comprehensive adult education provider that offers all levels of adult education instruction, family literacy, and employability and life skills instruction. Many providers also offer English as a Second Language classes and workplace education. By statute, funds are allocated using a formula based on the number of adults in each county functioning at low literacy levels. Research Challenge Trust Fund Tobacco Settlement Phase I funds support competitive grants to researchers at the Brown Cancer Center at U of L and the Markey Cancer at UK. Funds are granted by the lung cancer research governance board established in KRS 164.476 to fund research into the causes, detection and treatment of lung cancer. Science and Technology Funding Program The Science and Technology Funding program supports the initiatives established by the Kentucky Innovation Act in KRS 164.6011 through 164.6043. The Experimental Program to Stimulate Competitive Research (EPSCoR) program, a highly collaborative and successful federal research and development program initiated by the National Science Foundation in 1978, leverages state matching funds to bring additional federal research dollars to Kentucky. The Science and Technology Funding Program also provides funding for the Science and Engineering Foundation. The Science and Engineering Foundation, modeled on the National Science Foundation, makes investments in peer-reviewed science and engineering research. The KnowledgeBased Economy Academic Program supports postsecondary education programs in engineering and information technology. The Council on Postsecondary Education directed the public universities and colleges to work together to design a statewide strategy to educate more engineers, to integrate engineering education more closely into the technology-driven New Economy, and to recruit more women and minorities into engineering. Students at Western Kentucky University, Murray State University, the University of Louisville, and the University of Kentucky are enrolled in joint engineering classes. Special Initiatives Funding Program The Council on Postsecondary Education allocates funds to institutions for activities that support the goals of Senate Bill 1 in the 2009 session of the General Assembly. These include professional development of faculty and revision of the pedagogic curriculum and assessment standards of colleges of education. Technology Initiative Trust Fund This program includes funding for the Kentucky Postsecondary Education Network (KPEN), the Kentucky Virtual Campus and Virtual Library, the College Level Learning Assessment, the College Access Initiative, and faculty development activities that improve teaching and develop best practices, particularly for distance learning situations. Policy A Current Year Appropriation from the General Fund in the amount of $1,656,200 in fiscal year 2014 is included to maintain budgeted levels of service in the Lung Cancer Research program in response to the expected reduction in Tobacco SettlementPhase I payments to the Commonwealth in April, 2014 resulting from an arbitration action. The Executive Budget includes additional General Fund of $1,920,000 in each fiscal year for development, staff and marketing for Commonwealth College. This on-line, competency based program will allow adults to earn bachelors degrees in highdemand occupational areas. Students who have already earned an associate degree through KCTCSs Learn on Demand program or otherwise met the prerequisites can take upper division courses on-line from any of the consortiums member institutions, with at least 25% of the credit hours from the home institution for that program. Tuition will be uniform and will be based on the average of the six comprehensive universities. Advising, registration, payment, student financial aid, student support services and tech support will all be provided on-line. The funding in this budget will be used for course design, marketing and student support. The Executive Budget includes additional General Fund of $2,328,000 in fiscal year 2016 for debt service on $50,000,000 in new bonds for the Research Challenge Trust Fund Endowment Match program for the University of Kentucky and the University of Louisville. This new round of funding for the Bucks for Brains program will allow the research institutions to match donated funds to create new endowments or expand existing endowments for chairs, professorships, fellowships and research-related mission support, consistent with KRS 164.7917. Only the investment income from the endowments may be expended. Twothirds of the funding will be available for the University of Kentucky, and one-third will be available for the University of Louisville. The Executive Budget includes additional General Fund of $465,500 in fiscal year 2016 for debt service on $10,000,000 in new bonds for the Comprehensive Universities Excellence Trust Fund Endowment Match program for the six comprehensive
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universities. These funds will allow those institutions to match, dollar for dollar, donated funds to create new endowments or expand existing endowments for chairs, professorships, fellowships and other activities related to their programs of distinction. Only the investment income from the endowments may be expended. The Executive Budget includes additional General Fund of $3,156,500 in fiscal year 2015 and $32,443,000 in fiscal year 2016 for debt service on $520,337,000 in new bonds for capital projects at the postsecondary education institutions. The Executive Budget includes additional General Fund of $81,500 in fiscal year 2015 and $163,000 in fiscal year 2016 for debt service on $1,200,000 in new bonds for development of the Commonwealth College web portal.

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Postsecondary Education Kentucky Higher Education Assistance Authority Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Current Year Appropriation Continuing Approp.-General Fund Total General Fund Tobacco Settlement - Phase I Tobacco Settlement - Phase I Continuing Approp.-Tobacco Settlement Budget Reduction-General Fund Tobacco Total Tobacco Settlement - Phase I Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Tobacco Settlement - Phase I Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT General Administration and Support College Access Program Kentucky Coal County Completion Scholarship Work Study Program Kentucky Tuition Grant Teacher Scholarships Ky National Guard Tuition Osteopathic Medicine Scholarship Ky Educational Excellence Scholarships Early Childhood Development Scholarships Kentucky's Affordable Prepaid Tuition (KAPT) Pharmacy Scholarship Program Other Programs TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

190,288,300 1,800,000 8,454,300 200,542,600 700,000 301,000 -301,000 700,000 4,646,700 14,701,300 11,461,700 30,809,700 392,900 392,900 232,445,200 13,487,800 3,084,800 214,690,500 744,900 437,200 232,445,200 200,542,600 700,000 30,809,700 392,900 232,445,200 17,272,700 65,276,100 1,200,000 601,200 32,816,200 1,940,900 4,961,300 872,500 104,203,700 809,100 482,000 602,800 1,406,700 232,445,200

240,317,000

253,058,500

200,341,200

203,802,000

240,317,000 650,000

253,058,500 600,000

200,341,200 1,100,000

203,802,000 1,100,000

650,000

600,000

1,100,000

1,100,000

18,115,200 4,606,400 22,721,600 59,300 59,300 263,747,900 15,204,800 3,084,800 244,276,200 744,900 437,200 263,747,900 240,317,000 650,000 22,721,600 59,300 263,747,900 19,021,700 83,655,000

18,298,500 2,438,600 20,737,100 59,300 59,300 274,454,900 15,388,100 3,084,800 254,799,900 744,900 437,200 274,454,900 253,058,500 600,000 20,737,100 59,300 274,454,900 19,205,000 88,123,800

17,721,800 10,673,600 28,395,400 59,300 59,300 229,895,900 13,410,200 2,846,000 212,457,600 744,900 437,200 229,895,900 200,341,200 1,100,000 28,395,400 59,300 229,895,900 16,988,300 58,861,500 2,000,000 400,000 31,752,100 1,802,800 4,948,100 872,500 109,636,400 1,153,400 450,000 800,000 230,800 229,895,900

17,786,900 10,670,000 28,456,900 59,300 59,300 233,418,200 13,475,300 2,846,000 215,914,800 744,900 437,200 233,418,200 203,802,000 1,100,000 28,456,900 59,300 233,418,200 17,053,400 58,861,500 2,000,000 400,000 31,752,100 1,802,800 4,948,100 872,500 113,093,600 1,153,400 450,000 800,000 230,800 233,418,200

600,000 45,045,000 2,002,800 50,000 872,500 109,636,400 753,400 450,000 601,800 1,059,300 263,747,900
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600,000 47,451,300 2,002,800 50,000 872,500 113,093,600 753,400 450,000 601,800 1,250,700 274,454,900

The mission of the Kentucky Higher Education Assistance Authority (KHEAA) is to increase educational attainment by providing student financial aid and other assistance to Kentuckians preparing for and attending college. KHEAA administers state grants, scholarships, work study and college savings programs for postsecondary students. The agency is the designated guarantor of insured student loans and disseminates college planning and financial aid information. The Kentucky Higher Education Assistance Authority administers the following student aid programs: The College Access Program awards grants to Kentuckys financially needy undergraduate students enrolled in a public or private non-profit college, public technical college, or proprietary school. The Kentucky Tuition Grant program provides need-based grants to qualified Kentucky students who choose to attend one of the Commonwealths 26 participating independent colleges and is designed to assist full-time students with tuition charges at these schools. The Kentucky Educational Excellence Scholarships (KEES) program provides merit-based scholarships to eligible high school students based on their yearly grade point average and supplemental awards based on their highest ACT (or equivalent SAT) score attained by their high school graduation date. The scholarships can be used to pay the expenses of each year of college or technical training. The Teacher Scholarship program is designed to assist financially needy Kentucky students with the costs incurred while seeking initial teacher certification. Recipients must agree to render qualified teaching service in the Commonwealth. The Kentucky National Guard Tuition Award program provides tuition assistance to active members of the Kentucky National Guard to attend Kentuckys state-supported postsecondary educational institutions. The Department of Military Affairs selects the recipients and KHEAA forwards funds to the schools to be disbursed to the students. The Osteopathic Medicine Scholarship program provides tuition equalization awards to eligible students who attend the University of Pikeville College of Osteopathic Medicine. Recipients must agree to provide medical services in Kentucky one year for each year they receive a scholarship, or repay their tuition grants. The Coal County Pharmacy Scholarship Program provides tuition awards to eligible students at Kentucky colleges who agree to provide pharmacy services in a coal-producing county of Kentucky for one year for each year they receive the scholarship, or repay their tuition grants. The Early Childhood Development Scholarship program provides tuition assistance to Kentucky residents pursuing a credential, certificate, or degree in early childhood education. It was established to upgrade the professional development of child-care workers and trainers who do not have access to state or federal professional development funds. The Go Higher Grant program provides a financial incentive for non-traditional students who are enrolled on a less than full time basis and are therefore ineligible for most aid programs. The John R. Justice program, supported by a Federal grant, provides student loan repayment assistance for public defenders and prosecutors who commit to continued employment for at least three years after graduation from law school. Policy Notwithstanding KRS 154A.130(4), the Executive Budget provides General Fund of $101,032,800 in fiscal year 2015 and $104,493,600 in fiscal year 2016 for the Kentucky Educational Excellence Scholarships (KEES). Included in the restricted funds appropriation is $8,603,600 in fiscal year 2015 and $8,600,000 in fiscal year 2016 for KEES. A current year appropriation from the General Fund in the amount of $1,800,000 in fiscal year 2014 is provided to ensure payment of all KEES awards earned by eligible students. The Executive Budget provides restricted funds of $2,000,000 each year from the Local Government Economic Development Fund, Multi-County Fund for the Kentucky Coal County College Completion Scholarship program, more than doubling the fiscal year 2014 budget. The program awards financial aid to students from Bell, Floyd, Harlan, Johnson, Knott, Letcher, Magoffin, Martin or Pike Counties who are enrolled in bachelors degree programs at the main campuses of University of Pikeville and Alice Lloyd College, or the extension campuses of Morehead State University in Prestonsburg, Lincoln Memorial University, Lindsey Wilson College and UPike. Students must have already completed at least 60 credit hours and be enrolled in at least six hours. The scholarship funds tuition expenses remaining after Federal and state aid, including Pell, CAP, KTG and KEES awards are applied.

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Postsecondary Education Postsecondary Education Institutions Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Current Receipts Fund Transfers Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Eastern Kentucky University Kentucky State University Morehead State University Murray State University Northern Kentucky University University of Kentucky University of Louisville Western Kentucky University Kentucky Community and Technical College System TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

941,574,700 941,574,700 4,529,944,100 4,529,944,100 870,703,600 870,703,600 6,342,222,400 3,171,247,400 2,052,623,200 856,253,200 133,146,000 126,018,600 6,339,288,400 938,640,700 4,529,944,100 870,703,600 6,339,288,400 334,292,000 76,209,000 240,645,200 176,973,800 245,746,400 2,709,205,300 1,233,553,700 393,959,000 928,704,000 6,339,288,400

988,281,900 988,281,900 4,694,087,300 4,694,087,300 889,016,700 889,016,700 6,571,385,900 3,285,359,646 2,136,234,054 892,701,300 125,445,700 131,645,200 6,571,385,900 988,281,900 4,694,087,300 889,016,700 6,571,385,900 346,798,100 77,833,200 247,264,200 182,714,100 259,036,900 2,825,317,600 1,259,641,600 403,649,400 969,130,800 6,571,385,900

991,572,100 991,572,100 4,859,186,600 4,859,186,600 920,028,900 920,028,900 6,770,787,600 3,378,477,146 2,214,969,854 920,229,300 121,855,700 135,255,600 6,770,787,600 991,572,100 4,859,186,600 920,028,900 6,770,787,600 356,311,300 78,654,800 253,801,500 188,479,000 268,488,500 2,933,827,800 1,282,078,400 409,112,400 1,000,033,900 6,770,787,600

910,476,600 910,476,600 4,700,353,800 -10,000,000 4,690,353,800 889,016,700 889,016,700 6,489,847,100 3,227,918,800 2,120,808,900 883,012,900 127,240,500 130,866,000 6,489,847,100 910,476,600 4,690,353,800 889,016,700 6,489,847,100 343,111,500 76,512,900 244,598,500 179,658,200 257,550,200 2,803,332,300 1,235,029,100 398,907,600 951,146,800 6,489,847,100

914,743,900 914,743,900 4,871,719,600 -5,000,000 4,866,719,600 920,028,900 920,028,900 6,701,492,400 3,326,443,000 2,199,518,700 905,880,000 135,184,300 134,466,400 6,701,492,400 914,743,900 4,866,719,600 920,028,900 6,701,492,400 352,624,700 77,181,800 251,135,800 185,423,100 267,001,800 2,910,613,300 1,258,072,300 406,370,600 993,069,000 6,701,492,400

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Postsecondary Education Postsecondary Education Institutions Eastern Kentucky University Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Instruction Research Public Service Libraries Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Mandatory Transfers Non-Mandatory Transfers Auxilliary Enterprises TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

67,673,700 67,673,700 176,294,300 176,294,300 90,324,000 90,324,000 334,292,000 163,218,800 73,296,400 91,855,000 4,358,600 1,563,200 334,292,000 67,673,700 176,294,300 90,324,000 334,292,000 96,144,800 1,953,900 46,317,900 3,310,700 17,543,200 18,459,200 34,987,800 19,226,600 72,313,100 4,358,600 2,988,900 16,687,300 334,292,000

71,029,700 71,029,700 180,928,200 180,928,200 94,840,200 94,840,200 346,798,100 168,645,746 77,699,254 94,369,200 4,477,900 1,606,000 346,798,100 71,029,700 180,928,200 94,840,200 346,798,100 100,301,400 2,046,000 48,498,700 3,399,100 18,004,400 18,951,900 35,915,900 19,732,000 75,282,100 4,473,200 3,067,500 17,125,900 346,798,100

71,029,700 71,029,700 185,699,400 185,699,400 99,582,200 99,582,200 356,311,300 173,290,546 79,785,154 96,983,200 4,601,900 1,650,500 356,311,300 71,029,700 185,699,400 99,582,200 356,311,300 101,128,100 2,142,700 50,785,500 3,490,200 18,479,300 19,459,600 36,871,800 20,252,300 78,384,800 4,591,100 3,148,400 17,577,500 356,311,300

67,343,100 67,343,100 180,928,200 180,928,200 94,840,200 94,840,200 343,111,500 167,355,800 75,302,600 94,369,200 4,477,900 1,606,000 343,111,500 67,343,100 180,928,200 94,840,200 343,111,500 96,614,800 2,046,000 48,498,700 3,399,100 18,004,400 18,951,900 35,915,900 19,732,000 75,282,100 4,473,200 3,067,500 17,125,900 343,111,500

67,343,100 67,343,100 185,699,400 185,699,400 99,582,200 99,582,200 352,624,700 172,000,600 77,388,500 96,983,200 4,601,900 1,650,500 352,624,700 67,343,100 185,699,400 99,582,200 352,624,700 97,441,500 2,142,700 50,785,500 3,490,200 18,479,300 19,459,600 36,871,800 20,252,300 78,384,800 4,591,100 3,148,400 17,577,500 352,624,700

Eastern Kentucky University, originally founded as a training school for teachers, has grown into a comprehensive postsecondary institution with approximately 16,000 students. In addition to the main campus in Richmond, EKU operates regional campuses at Corbin, Danville, Manchester and Somerset. Baccalaureate degree programs are offered in liberal arts and sciences, business and technology, education, health sciences, and the universitys program of distinction, justice and public safety. Each academic program requires students to demonstrate effective communication, creativity and critical thinking skills. Advanced degrees are offered in education, psychology and technology, and doctoral programs in educational leadership, nursing practice and occupational therapy. Prior to the arrival of EKUs new president, Dr. Michael T. Benson, the University engaged in a realignment process to make available 10% of the institutions operating budget about $23 million to support strategic initiatives. EKU enrolls students concurrently with the Kentucky Community and Technical College System to provide for seamless transfer

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after a student completes two years. Dual enrollment and the Middle College provide opportunities for high schools students to begin earning college credit. The Office of Military and Veterans Affairs has been nationally recognized for advising and providing other student support and financial services to military veterans and their families.

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Postsecondary Education Postsecondary Education Institutions Kentucky State University Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Instruction Research Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Auxilliary Enterprises TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

23,537,400 23,537,400 32,826,900 32,826,900 19,844,700 19,844,700 76,209,000 44,143,100 16,975,000 8,920,600 6,170,300 76,209,000 23,537,400 32,826,900 19,844,700 76,209,000 14,204,200 4,868,800 6,383,200 4,204,600 7,916,600 12,601,000 6,541,200 13,079,500 6,409,900 76,209,000

24,512,000 24,512,000 33,476,500 33,476,500 19,844,700 19,844,700 77,833,200 45,281,200 17,271,000 8,964,500 6,316,500 77,833,200 24,512,000 33,476,500 19,844,700 77,833,200 14,708,300 4,937,900 6,466,100 4,284,300 8,157,400 13,034,200 6,755,600 13,079,500 6,409,900 77,833,200

24,664,700 24,664,700 34,145,400 34,145,400 19,844,700 19,844,700 78,654,800 45,627,500 17,540,700 9,023,200 6,463,400 78,654,800 24,664,700 34,145,400 19,844,700 78,654,800 14,961,300 4,974,100 6,512,700 4,324,700 8,278,900 13,250,800 6,862,900 13,079,500 6,409,900 78,654,800

23,191,700 23,191,700 33,476,500 33,476,500 19,844,700 19,844,700 76,512,900 43,993,800 17,238,100 8,964,500 6,316,500 76,512,900 23,191,700 33,476,500 19,844,700 76,512,900 14,057,700 4,897,900 6,421,700 4,236,500 8,012,500 12,771,700 6,625,500 13,079,500 6,409,900 76,512,900

23,191,700 23,191,700 34,145,400 34,145,400 19,844,700 19,844,700 77,181,800 44,192,600 17,502,600 9,023,200 6,463,400 77,181,800 23,191,700 34,145,400 19,844,700 77,181,800 14,262,900 4,927,900 6,461,300 4,269,400 8,111,300 12,947,200 6,712,400 13,079,500 6,409,900 77,181,800

Like other comprehensive universities, Kentucky State University was founded as a training school for teachers. An historically black university, it is also a land grant institution charged with educating and improving the lives of Kentuckys rural residents. KSUs program of distinction is aquaculture; the university recently launched the Kentucky River Thorobred, an aquatic research laboratory which will also be used to teach schoolchildren about the history and ecology of the Kentucky River. In addition to its teaching and agriculture departments, KSU offers traditional liberal arts courses, business, computer science, public administration, nursing and pre-professional education for medicine, dentistry, law, engineering and other fields. Kentucky State provides an opportunity for students, including non-traditional students, who otherwise would not have access to college education.

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Postsecondary Education Postsecondary Education Institutions Morehead State University Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Instruction Research Public Service Libraries Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Mandatory Transfers Non-Mandatory Transfers Auxilliary Enterprises TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

41,560,200 41,560,200 102,386,800 102,386,800 96,698,200 96,698,200 240,645,200 94,177,000 33,495,600 97,836,300 7,044,100 8,092,200 240,645,200 41,560,200 102,386,800 96,698,200 240,645,200 46,635,700 3,318,400 7,761,900 3,216,700 15,063,600 16,678,000 14,150,500 10,438,200 98,100,400 4,084,600 4,241,500 16,955,700 240,645,200

43,288,600 43,288,600 108,154,500 108,154,500 95,821,100 95,821,100 247,264,200 98,883,100 33,859,500 99,383,700 7,044,100 8,093,800 247,264,200 43,288,600 108,154,500 95,821,100 247,264,200 49,531,800 2,336,700 7,861,600 3,359,700 15,614,100 17,189,600 14,679,300 10,902,400 99,383,700 4,266,200 4,430,100 17,709,000 247,264,200

43,288,600 43,288,600 113,707,200 113,707,200 96,805,700 96,805,700 253,801,500 103,217,100 34,387,000 100,958,000 7,044,100 8,195,300 253,801,500 43,288,600 113,707,200 96,805,700 253,801,500 51,392,200 2,275,900 7,525,200 3,504,500 16,157,300 17,771,300 15,303,500 11,372,000 100,958,000 4,450,000 4,620,900 18,470,700 253,801,500

40,622,900 40,622,900 108,154,500 108,154,500 95,821,100 95,821,100 244,598,500 96,834,800 33,242,100 99,927,500 6,500,300 8,093,800 244,598,500 40,622,900 108,154,500 95,821,100 244,598,500 47,458,400 2,336,700 7,861,600 3,359,700 14,675,500 16,992,100 14,679,300 10,902,400 99,927,500 4,266,200 4,430,100 17,709,000 244,598,500

40,622,900 40,622,900 113,707,200 113,707,200 96,805,700 96,805,700 251,135,800 101,168,800 33,769,600 101,501,800 6,500,300 8,195,300 251,135,800 40,622,900 113,707,200 96,805,700 251,135,800 49,318,800 2,275,900 7,525,200 3,504,500 15,218,700 17,573,800 15,303,500 11,372,000 101,501,800 4,450,000 4,620,900 18,470,700 251,135,800

Morehead State University enrolled 10,900 students for the fall semester of 2013. There was a record enrollment in Moreheads Early College where students can begin to earn college credit before high school graduation. There were 2,100 of these duallyenrolled students from 35 high schools. In addition to the Rowan County campus, Morehead has five regional campuses in Ashland, West Liberty, Mount Sterling, Prestonsburg, and Jackson. Moreheads in-state undergraduate tuition is low compared to state peer institutions, and it enrolls the largest percentage of Pelleligible students. The University strives to provide high quality education while increasing efficiency and productivity. Morehead was the first Kentucky institution to offer a complete degree program on-line. Kentucky residents make up 87% of Moreheads undergraduate enrollment, with 61% coming from the Universitys 27-county service region in Eastern Kentucky. Sixty-eight percent of Moreheads alumni reside in Kentucky. Moreheads program of distinction is space science. Morehead faculty and undergraduate students have collaborated with students and scientists from around the world to build and launch satellites to explore and carry on important investigations in space. A 21-meter tracking antenna is located on the campus.

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Postsecondary Education Postsecondary Education Institutions Murray State University Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Instruction Research Public Service Libraries Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Mandatory Transfers Non-Mandatory Transfers Auxilliary Enterprises TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

48,005,800 48,005,800 110,212,500 110,212,500 18,755,500 18,755,500 176,973,800 111,163,200 47,826,100 11,674,000 4,034,300 2,276,200 176,973,800 48,005,800 110,212,500 18,755,500 176,973,800 61,555,400 3,089,300 8,014,800 3,932,200 7,759,500 15,196,800 19,710,400 19,003,400 11,674,000 4,034,300 1,090,600 21,913,100 176,973,800

50,593,400 50,593,400 113,365,200 113,365,200 18,755,500 18,755,500 182,714,100 114,599,800 48,978,300 11,674,000 5,072,000 2,390,000 182,714,100 50,593,400 113,365,200 18,755,500 182,714,100 63,614,200 3,168,300 8,210,200 4,058,100 8,091,400 15,939,600 20,349,800 19,471,300 11,674,000 4,034,300 1,090,600 23,012,300 182,714,100

50,593,400 50,593,400 119,130,100 119,130,100 18,755,500 18,755,500 188,479,000 118,170,100 50,057,900 11,674,000 6,072,000 2,505,000 188,479,000 50,593,400 119,130,100 18,755,500 188,479,000 65,678,400 3,253,800 8,421,600 4,194,300 8,342,200 16,472,600 21,041,300 20,077,400 11,674,000 4,034,300 1,090,600 24,198,500 188,479,000

47,537,500 47,537,500 113,365,200 113,365,200 18,755,500 18,755,500 179,658,200 112,043,900 48,478,300 11,674,000 5,072,000 2,390,000 179,658,200 47,537,500 113,365,200 18,755,500 179,658,200 62,033,600 3,128,500 8,111,700 3,994,600 7,874,500 15,441,200 20,027,500 19,235,400 11,674,000 4,034,300 1,090,600 23,012,300 179,658,200

47,537,500 47,537,500 119,130,100 119,130,100 18,755,500 18,755,500 185,423,100 115,614,200 49,557,900 11,674,000 6,072,000 2,505,000 185,423,100 47,537,500 119,130,100 18,755,500 185,423,100 64,097,800 3,214,000 8,323,100 4,130,800 8,125,300 15,974,200 20,719,000 19,841,500 11,674,000 4,034,300 1,090,600 24,198,500 185,423,100

Murray State Universitys 53.9% graduation rate is the best among Kentuckys comprehensive universities, second in the state only to the University of Kentucky. In addition to the main campus in Calloway County, Murray operates regional campuses at Paducah, Madisonville, Hopkinsville, Henderson and Fort Campbell. Cooperation agreements with local community and technical colleges make it possible for students in those locations to earn a four-year degree in education, business, social work or nursing. MSU faculty also provide instructional support for the University of Kentuckys engineering program in Paducah. In addition to teacher education programs, Murray State University also offers baccalaureate and masters degrees in business, health sciences, agriculture, liberal arts, sciences, engineering and technology. The program of distinction is telecommunications systems management (TSM) and is available at the main campus as well as on-line. About 60% of the students in the TSM Masters degree program are studying on-line. Students from Tennessee and South Carolina can enroll in the program at in-state tuition rates through the Southern Regional Education Boards Academic Common Market. MSU operates several centers for applied research including the Watershed Studies Institute, the Mid-America Remote Sensing Center and the Purchase Area Health Education Center. Murray State Universitys Honors Program pushes qualified students to meet their maximum potential in analysis, argumentation, world awareness and research. Honors students participate in rigorous seminars in place of general education requirements.
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They study a foreign language, study abroad, and write, present and defend a senior thesis. The Commonwealth Honors Academy brings high school juniors to MSUs campus for three weeks of classes, lectures, performances and seminars. The students earn three college credit hours in an interdisciplinary humanities and fine arts course and three hours in an elective. As MSU faculty explore new pedagogical technologies, the Center for Teaching, Learning and Technology supports them with workshops, seminars and technical support. Stipends and grants are available to faculty who work with the Center to redesign courses for on-line and other remote learning environments.

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Postsecondary Education Postsecondary Education Institutions Northern Kentucky University Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Instruction Research Public Service Libraries Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Mandatory Transfers Non-Mandatory Transfers Auxilliary Enterprises TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

46,835,100 46,835,100 183,739,700 183,739,700 15,171,600 15,171,600 245,746,400 145,370,000 48,368,900 29,997,100 9,131,900 12,878,500 245,746,400 46,835,100 183,739,700 15,171,600 245,746,400 82,827,500 1,514,000 11,493,100 6,858,100 20,096,000 19,500,100 28,879,600 24,447,900 29,547,100 3,180,800 3,165,600 14,236,600 245,746,400

49,531,500 49,531,500 194,333,800 194,333,800 15,171,600 15,171,600 259,036,900 151,422,300 51,203,300 32,106,300 9,131,900 15,173,100 259,036,900 49,531,500 194,333,800 15,171,600 259,036,900 86,968,800 1,717,700 11,893,700 7,474,900 21,328,000 20,706,200 30,022,600 25,247,700 31,656,300 3,180,800 3,891,800 14,948,400 259,036,900

49,531,500 49,531,500 203,785,400 203,785,400 15,171,600 15,171,600 268,488,500 157,232,800 51,968,200 34,106,300 9,131,900 16,049,300 268,488,500 49,531,500 203,785,400 15,171,600 268,488,500 90,082,000 1,731,600 12,061,200 7,730,700 22,069,500 21,427,700 30,838,300 25,622,900 33,656,300 3,180,800 4,391,800 15,695,700 268,488,500

48,044,800 48,044,800 194,333,800 194,333,800 15,171,600 15,171,600 257,550,200 151,744,800 50,403,300 31,806,300 9,131,900 14,463,900 257,550,200 48,044,800 194,333,800 15,171,600 257,550,200 87,055,800 1,617,700 11,743,700 7,251,400 21,028,000 20,456,200 29,872,600 25,147,500 31,356,300 3,180,800 3,891,800 14,948,400 257,550,200

48,044,800 48,044,800 203,785,400 203,785,400 15,171,600 15,171,600 267,001,800 157,555,300 51,168,200 33,806,300 9,131,900 15,340,100 267,001,800 48,044,800 203,785,400 15,171,600 267,001,800 90,169,000 1,631,600 11,911,200 7,507,200 21,769,500 21,177,700 30,688,300 25,522,700 33,356,300 3,180,800 4,391,800 15,695,700 267,001,800

Northern Kentucky University is the only one of Kentuckys comprehensive universities that did not start as an institution for training teachers. NKU began as a community college under the University of Kentucky. Upper division courses were offered beginning in 1971, the same year that Salmon P. Chase College of Law merged with what was then known as Northern Kentucky State College. Today there are over 15,000 students enrolled. Although about one-third are non-residents, the Kentuckians among them come from 107 of the states 120 counties. Boone, Kenton and Campbell counties in northern Kentucky account for 7,557 students. Due to limited dormitory space, 86% of undergraduates commute. NKUs program of distinction is the Center for Integrative Natural Science and Mathematics. The Centers mission is to improve education at all levels by integrating teaching, learning and scholarship in STEM disciplines. NKUs College of Informatics integrates communications studies with computer science to prepare students for work in the information age. UPTECH, a business accelerator, provides local start-ups with physical facilities, technology resources and assistance from faculty and students. All of NKUs academic departments participate in the quality enhancement program SEAL: Student Engagement in Active Learning.

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Between 45% and 50% of NKUs first time, full-time students are first generation college-goers. The university seeks to provide support services that make it possible for all members of its diverse student body to succeed. Particular focus is on transfer students, reflecting NKUs continuing connection with Gateway Community and Technical College. The university awards a $2,500 scholarship to each KCTCS transfer student with at least a 3.0 GPA.

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Postsecondary Education Postsecondary Education Institutions University of Kentucky Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Instruction Research Public Service Libraries Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Mandatory Transfers Non-Mandatory Transfers Auxilliary Enterprises Hospitals TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

283,869,300 283,869,300 2,219,357,900 2,219,357,900 205,978,100 205,978,100 2,709,205,300 1,300,078,200 1,145,657,700 135,573,500 70,983,300 56,912,600 2,709,205,300 283,869,300 2,219,357,900 205,978,100 2,709,205,300 373,968,700 271,875,100 339,719,100 25,535,200 106,379,600 36,053,800 155,300,800 74,451,600 135,573,500 11,567,300 1,913,000 191,516,700 985,350,900 2,709,205,300

298,757,900 298,757,900 2,309,116,700 2,309,116,700 217,443,000 217,443,000 2,825,317,600 1,353,366,700 1,199,281,200 148,249,900 65,624,900 58,794,900 2,825,317,600 298,757,900 2,309,116,700 217,443,000 2,825,317,600 382,963,400 282,459,700 351,187,700 26,031,300 116,985,800 37,083,400 159,936,400 78,074,800 148,249,900 6,208,900 1,913,000 206,339,400 1,027,883,900 2,825,317,600

299,987,100 299,987,100 2,404,130,300 2,404,130,300 229,710,400 229,710,400 2,933,827,800 1,408,067,800 1,250,964,300 155,221,200 59,568,500 60,006,000 2,933,827,800 299,987,100 2,404,130,300 229,710,400 2,933,827,800 390,251,100 293,184,700 362,115,000 26,448,600 127,718,100 37,995,800 162,545,100 80,711,400 155,221,200 152,500 1,913,000 223,335,000 1,072,236,300 2,933,827,800

276,772,600 276,772,600 2,309,116,700 2,309,116,700 217,443,000 217,443,000 2,803,332,300 1,336,562,900 1,195,281,200 147,068,400 65,624,900 58,794,900 2,803,332,300 276,772,600 2,309,116,700 217,443,000 2,803,332,300 370,611,600 281,315,300 348,347,000 25,779,900 115,914,800 36,666,900 158,097,900 77,185,300 147,068,400 6,208,900 1,913,000 206,339,400 1,027,883,900 2,803,332,300

276,772,600 276,772,600 2,404,130,300 2,404,130,300 229,710,400 229,710,400 2,910,613,300 1,390,034,800 1,246,964,300 154,039,700 59,568,500 60,006,000 2,910,613,300 276,772,600 2,404,130,300 229,710,400 2,910,613,300 377,500,800 291,927,800 358,995,100 26,172,500 126,541,800 37,538,400 160,525,900 79,734,500 154,039,700 152,500 1,913,000 223,335,000 1,072,236,300 2,910,613,300

The University of Kentucky is Kentuckys flagship institution of higher education. It is one of the nations top research universities and also has an important land grant mission for a state where agriculture is a major economic sector. UK is one of only seven universities in the United States with schools of agriculture, engineering, law, medicine and pharmacy on a single campus. It also maintains professional programs in dentistry, architecture, business, economics, education and social professions. In fall 2013 UK enrolled 29,400 students, a record, including nearly 4,700 freshmen and 105 National Merit Scholars. Almost 60% of them can be expected to earn their bachelors degrees by spring of 2019, the best completion rate of any of Kentuckys public institutions. Graduate and professional time-to-degree completion rates have also risen and are now above the national average. UK HealthCare (UKHC) was named the top hospital in Kentucky by US News and World Report. The Markey Cancer Center has been designated as a National Cancer Institute the only one in Kentucky and one of 68 in the nation. UKHC is also an Alzheimers Disease Center and holds the Clinical and Translational Science Award.

264

The University is in the process of implementing a new financial model of accountability. The goal of the decentralized funding system is to encourage smart enrollment growth and robust, relevant research efforts. UKs colleges and units are empowered to act entrepreneurially to yield greater dividends for the Commonwealth

265

Postsecondary Education Postsecondary Education Institutions University of Louisville Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Instruction Research Public Service Libraries Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Mandatory Transfers Auxilliary Enterprises Hospitals TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

166,212,300 166,212,300 962,023,800 962,023,800 108,251,600 108,251,600 1,236,487,700 666,119,400 399,472,800 118,288,500 22,901,000 26,772,000 1,233,553,700 163,278,300 962,023,800 108,251,600 1,233,553,700 351,727,000 162,974,400 143,373,100 20,548,500 158,722,800 30,150,500 74,760,200 52,281,900 110,781,400 22,901,000 84,243,300 21,089,600 1,233,553,700

171,433,000 171,433,000 990,331,600 990,331,600 97,877,000 97,877,000 1,259,641,600 680,721,200 411,952,800 121,222,500 18,973,100 26,772,000 1,259,641,600 171,433,000 990,331,600 97,877,000 1,259,641,600 360,415,300 169,615,400 145,975,800 20,881,500 162,628,500 30,892,400 75,971,600 53,129,100 112,576,600 18,973,100 87,177,300 21,405,000 1,259,641,600

173,093,900 173,093,900 1,012,352,500 1,012,352,500 96,632,000 96,632,000 1,282,078,400 692,124,900 421,646,500 121,222,500 20,312,500 26,772,000 1,282,078,400 173,093,900 1,012,352,500 96,632,000 1,282,078,400 367,043,700 172,674,900 148,667,400 21,267,200 165,608,400 31,458,400 77,375,100 54,110,700 114,656,300 20,312,500 87,177,300 21,726,500 1,282,078,400

146,820,500 146,820,500 990,331,600 990,331,600 97,877,000 97,877,000 1,235,029,100 672,432,700 407,878,200 112,901,000 15,045,200 26,772,000 1,235,029,100 146,820,500 990,331,600 97,877,000 1,235,029,100 357,531,100 165,615,400 145,696,400 20,881,500 161,294,800 30,639,100 75,971,600 53,129,100 112,576,600 15,045,200 75,243,300 21,405,000 1,235,029,100

149,087,800 149,087,800 1,012,352,500 1,012,352,500 96,632,000 96,632,000 1,258,072,300 683,836,400 417,571,900 108,240,100 21,651,900 26,772,000 1,258,072,300 149,087,800 1,012,352,500 96,632,000 1,258,072,300 362,498,600 168,674,900 148,388,000 21,267,200 164,274,700 31,205,100 77,375,100 54,110,700 114,656,300 21,651,900 72,243,300 21,726,500 1,258,072,300

The University of Louisville is Kentuckys metropolitan research university, with missions of teaching, research and service. Located in the states largest city, U of L operates on three campuses: the historic Belknap Campus, the Health Sciences Campus in downtown Louisvilles medical complex, and the Shelby Campus in suburban Jefferson County. U of L is proud of the diversity and quality of its 22,000 students. The 2013 incoming freshman class of just over 2,800 students arrived with a 25.2 average ACT score. The six-year graduation rate for the 2007 cohort was 53.5 percent. U of L ranked in the top 15% of universities nationally for the number of students awarded the prestigious Fulbright Scholarship, including 36 in the last three years. U of L researchers received more than $115 million in grant funding in 2012. The University focuses on translational research, new knowledge and discoveries that can improve peoples lives now. The Nucleus facility downtown was developed with innovative tax-increment financing to incubate and accelerate business entities that provide the bridges from the academy into the larger world.

266

The University serves the employers of Louisville through the Metropolitan College program, a tuition-free education for students who are also part-time employees at UPSs Next Day Air Operation. Class schedules and housing options are tailored to the students overnight work schedule. The U of L Hospital, in addition to its teaching function, serves as the citys safety net healthcare provider. The Cardinal Covenant covers the cost of tuition, books, room and board for qualified Jefferson County students whose family income is less than 150% of the Federal poverty level. A campus-wide sustainability plan and strong commitment to environmentally responsible operations has earned the University a Silver rating from the Association for the Advancement of Sustainability in Higher Education. Policy Included in the above General Fund appropriation is $9,155,600 in fiscal year 2015 and $6,155,600 in fiscal year 2016 for indigent care provided by the Quality and Charity Care Trust. This amount represents a reduction of $9,000,000 in fiscal year 2015 and $12,000,000 in fiscal year 2016 due to the expansion of Medicaid and other aspects of the Affordable Care Act.

267

Postsecondary Education Postsecondary Education Institutions Western Kentucky University Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Instruction Research Public Service Libraries Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Non-Mandatory Transfers Auxilliary Enterprises TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

72,425,200 72,425,200 276,934,800 276,934,800 44,599,000 44,599,000 393,959,000 184,723,100 111,817,800 75,987,500 14,692,800 6,737,800 393,959,000 72,425,200 276,934,800 44,599,000 393,959,000 121,442,400 5,403,100 14,638,600 8,297,100 16,116,700 35,344,200 52,059,300 37,005,400 67,124,400 10,929,800 25,598,000 393,959,000

76,653,600 76,653,600 282,396,800 282,396,800 44,599,000 44,599,000 403,649,400 191,017,000 113,183,100 77,553,500 15,121,800 6,774,000 403,649,400 76,653,600 282,396,800 44,599,000 403,649,400 125,615,200 5,434,600 14,701,700 8,536,700 17,899,200 36,364,100 53,041,000 37,257,700 68,271,400 10,929,800 25,598,000 403,649,400

76,653,600 76,653,600 287,859,800 287,859,800 44,599,000 44,599,000 409,112,400 194,566,000 113,955,100 78,671,500 15,124,800 6,795,000 409,112,400 76,653,600 287,859,800 44,599,000 409,112,400 127,914,800 5,456,700 14,745,900 8,748,100 18,166,200 37,652,400 53,508,400 37,434,700 68,957,400 10,929,800 25,598,000 409,112,400

71,911,800 71,911,800 282,396,800 282,396,800 44,599,000 44,599,000 398,907,600 187,223,400 112,234,900 77,553,500 15,121,800 6,774,000 398,907,600 71,911,800 282,396,800 44,599,000 398,907,600 123,160,600 5,415,800 14,664,100 8,480,200 16,308,400 36,157,100 52,815,100 37,107,100 68,271,400 10,929,800 25,598,000 398,907,600

73,911,800 73,911,800 287,859,800 287,859,800 44,599,000 44,599,000 406,370,600 192,772,400 113,006,900 78,671,500 15,124,800 6,795,000 406,370,600 73,911,800 287,859,800 44,599,000 406,370,600 127,460,200 5,437,900 14,708,300 8,691,600 16,575,400 37,445,400 53,282,500 37,284,100 68,957,400 10,929,800 25,598,000 406,370,600

Western Kentucky University is the largest of Kentuckys six comprehensive postsecondary institutions with over 20,000 students on the main campus in Bowling Green and at regional campuses in Glasgow, Owensboro and Elizabethtown. In addition to its traditional mission to train teachers and education leaders for the schools in its service area, WKU provides academic programs in liberal arts and sciences, business, engineering, health sciences and agriculture. WKUs distinguished journalism and broadcasting program prepares students for challenging careers in an ever-changing media environment. Imagewest, a full-service, revenue generating, student-run advertising and public relations agency provides students with a unique opportunity to gain real-world experience, while giving them a competitive edge as they enter the workforce. WKU is the home of the Gatton Academy of Mathematics and Science for exceptional Kentucky high school juniors and seniors. The Academy was named the number one high school in the United States in 2012 and 2013 by Newsweek. In addition to a variety of opportunities to study abroad, WKU students enjoy a global experience through the presence of faculty and fellow students recruited from around the world. The Confucius Institute expands knowledge and strengthens ties with China through language education and arts and cultural programming.

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Policy The Executive Budget includes an additional $2,000,000 in General Fund in fiscal year 2016 to expand enrollment at the Gatton Academy of Mathematics and Science.

269

Postsecondary Education Postsecondary Education Institutions Kentucky Community and Technical College System Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Current Receipts Fund Transfers Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Instruction Public Service Libraries Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

191,455,700 191,455,700 466,167,400 466,167,400 271,080,900 271,080,900 928,704,000 462,254,600 175,712,900 286,120,700 4,615,800 928,704,000 191,455,700 466,167,400 271,080,900 928,704,000 293,095,000 45,739,100 10,408,700 41,585,700 68,868,700 84,873,800 97,430,000 286,703,000 928,704,000

202,482,200 202,482,200 481,984,000 481,984,000 284,664,600 284,664,600 969,130,800 481,422,600 182,805,600 299,177,700 5,724,900 969,130,800 202,482,200 481,984,000 284,664,600 969,130,800 309,047,900 47,175,000 10,865,100 43,929,500 72,208,100 86,993,200 99,176,500 299,735,500 969,130,800

202,729,600 202,729,600 498,376,500 498,376,500 298,927,800 298,927,800 1,000,033,900 486,180,400 194,665,000 312,369,400 6,819,100 1,000,033,900 202,729,600 498,376,500 298,927,800 1,000,033,900 319,068,400 48,447,400 11,004,700 45,309,500 74,516,100 88,195,200 100,591,600 312,901,000 1,000,033,900

188,231,700 188,231,700 488,250,500 -10,000,000 478,250,500 284,664,600 284,664,600 951,146,800 459,726,700 180,750,200 298,748,500 6,266,500 5,654,900 951,146,800 188,231,700 478,250,500 284,664,600 951,146,800 289,492,800 46,763,900 10,543,200 42,894,300 71,081,400 86,022,900 105,042,000 299,306,300 951,146,800

188,231,700 188,231,700 510,909,500 -5,000,000 505,909,500 298,927,800 298,927,800 993,069,000 469,267,900 192,588,800 311,940,200 12,533,000 6,739,100 993,069,000 188,231,700 505,909,500 298,927,800 993,069,000 304,513,300 47,829,800 10,682,800 44,257,700 73,389,400 87,220,000 112,704,200 312,471,800 993,069,000

The Kentucky Community and Technical College System was created in 1997 by the merger of the technical college system in the Cabinet for Workforce Development and the community college system then under the direction of the University of Kentucky. There are 16 community and technical colleges operating at more than 70 locations across the state, with more than 92,000 students enrolled. The mission of KCTCS is to be a gateway to affordable, high quality postsecondary education. The system maintains an open admissions policy and a robust menu of developmental courses. In addition to industry-specific training leading to portable credentials, the colleges offer a two year academic curriculum designed to transfer to all of Kentuckys four-year institutions. KCTCS operates an on-line program leading to an associate degree called Learn on Demand, with on-line advising, registration, payment, student financial aid, student support services and tech support. The instruction is self-contained there are no textbooks to buy. It is competency based and self-paced. Students can enroll at any time and proceed at their own pace. Each course is presented in three to five week modules with pre-tests and post-tests. If a student demonstrates competency during a pre-test, he or she can move on to the next module. KCTCS administers the Kentucky Board of Emergency Medical Services and the Kentucky Fire Commission.

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Public Protection

Public Protection Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Secretary Boxing and Wrestling Authority Alcoholic Beverage Control Charitable Gaming Board of Claims/Crime Victims' Compensation Financial Institutions Horse Racing Commission Housing, Buildings and Construction Insurance Tax Appeals TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

6,814,300 25,300 6,839,600 64,678,800 81,293,000 19,636,300 -22,155,100 143,453,000 8,600 1,462,600 -8,600 1,462,600 151,755,200 56,548,200 11,260,200 22,971,100 879,500 91,659,000 6,839,600 83,356,800 1,462,600 91,659,000 5,606,100 150,700 5,894,600 3,474,400 2,137,600 10,449,800 28,246,600 19,273,700 16,003,200 422,300 91,659,000

8,241,800

8,890,200

5,200,400

7,322,000

8,241,800 57,446,200 81,240,200 19,247,100 157,933,500

8,890,200 67,745,800 81,176,300 19,510,000 168,432,100

5,200,400 60,096,200 81,838,900 19,210,400 -30,200,000 130,945,500

7,322,000 39,928,200 81,761,500 19,503,200 -28,200,000 112,992,900

1,515,700 1,515,700 167,691,000 63,600,300 11,985,600 23,472,100 887,200 99,945,200 8,241,800 90,187,700 1,515,700 99,945,200 6,169,900 167,600 6,505,000 3,498,000 2,953,500 11,390,800 29,092,900 20,723,600 18,978,300 465,600 99,945,200

1,498,700 1,498,700 178,821,000 66,761,000 12,154,600 23,566,900 770,400 103,252,900 8,890,200 92,864,000 1,498,700 103,252,900 6,504,400 173,800 6,808,900 3,605,400 2,974,900 11,934,200 29,409,400 21,777,900 19,573,400 490,600 103,252,900

1,515,700 1,515,700 137,661,600 62,013,500 11,860,600 22,972,100 887,200 97,733,400 5,200,400 91,017,300 1,515,700 97,733,400 6,108,400 167,100 6,428,300 3,474,000 2,173,700 10,612,100 29,055,900 20,579,400 18,670,200 464,300 97,733,400

1,498,700 1,498,700 121,813,600 63,267,200 11,818,400 23,066,900 770,400 98,922,900 7,322,000 90,102,200 1,498,700 98,922,900 6,213,900 169,100 6,388,500 3,489,300 2,150,600 10,984,400 29,217,100 20,979,700 18,858,500 471,800 98,922,900

The Public Protection Cabinet is charged with the supervision and regulation of industries. The Cabinet has five departments and one office: Alcoholic Beverage Control, Financial Institutions, Housing, Buildings and Construction, Insurance, Charitable Gaming and Office of Occupations and Professions. The Cabinet also has four boards/commissions attached for administrative purposes only: Kentucky Horse Racing Commission, Boxing & Wrestling Authority, Board of Claims/Crime Victims Compensation Board and Board of Tax Appeals. The Office of the Secretary also includes the Office of Communications and Public Outreach and the Office of Legal Services.

271

Public Protection Secretary Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Office of the Secretary - Comm - Legal Occupations and Professions TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

267,400 267,400 1,331,100 1,242,600 4,341,400 6,915,100 7,182,500 4,921,400 684,700 5,606,100 267,400 5,338,700 5,606,100 4,302,600 1,303,500 5,606,100

286,400 286,400 1,576,400 1,301,000 4,254,200 7,131,600 7,418,000 5,489,100 680,800 6,169,900 286,400 5,883,500 6,169,900 4,771,200 1,398,700 6,169,900

335,300 335,300 1,248,100 1,301,000 3,815,200 6,364,300 6,699,600 5,822,600 681,800 6,504,400 335,300 6,169,100 6,504,400 5,037,600 1,466,800 6,504,400

277,900 277,900 1,576,400 1,269,900 3,952,600 6,798,900 7,076,800 5,417,100 691,300 6,108,400 277,900 5,830,500 6,108,400 4,726,500 1,381,900 6,108,400

283,100 283,100 968,400 1,269,900 3,815,200 6,053,500 6,336,600 5,521,600 692,300 6,213,900 283,100 5,930,800 6,213,900 4,806,900 1,407,000 6,213,900

A Secretary appointed by the Governor heads the Cabinet. The Secretary is responsible for guiding Departmental agencies in policy and program implementation and is responsible for operating each agency in the most efficient and cost effective manner possible while maintaining a high quality of service to the general public as well as the businesses, trades, and professionals it licenses and regulates.

272

Public Protection Boxing and Wrestling Authority Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Boxing and Wrestling Authority TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

252,100 115,500 367,600 367,600 117,600 33,100 150,700 150,700 150,700 150,700 150,700

216,900 115,500 332,400 332,400 134,600 33,000 167,600 167,600 167,600 167,600 167,600

164,800 115,500 280,300 280,300 140,600 33,200 173,800 173,800 173,800 173,800 173,800

216,900 115,500 332,400 332,400 132,800 34,300 167,100 167,100 167,100 167,100 167,100

165,300 115,500 280,800 280,800 134,600 34,500 169,100 169,100 169,100 169,100 169,100

The Boxing and Wrestling Authority, pursuant to KRS Chapter 229, is the sole authority over professional boxing, wrestling and amateur and professional mixed martial arts bouts in Kentucky. The five-member board directs, manages and controls all professional boxing, sparring, exhibitions, wrestling matches, amateur and professional mixed martial arts bouts. Moreover, the authority has jurisdiction over all licenses to hold boxing, sparring, wrestling matches, exhibitions, amateur and professional mixed martial arts bouts for prizes or purses where an admission fee is received. The Authority administers all licenses to contestants, wrestlers or boxers, judges, managers, physicians, referees, timekeepers, and trainers and provides oversight of all persons who participate in the boxing, sparring, wrestling matches, exhibitions or mixed martial arts. The Authority is an independent agency that is attached to the Public Protection Cabinet for administrative purposes only.

273

Public Protection Alcoholic Beverage Control Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Administration, Enforcement and License Tobacco Enforcement TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

698,300 698,300 2,778,400 5,930,000 -696,800 -155,100 7,856,500 8,554,800 4,795,300 1,099,300 5,894,600 698,300 5,196,300 5,894,600 5,459,100 435,500 5,894,600

697,700 697,700 2,660,200 6,063,000 -790,400 7,932,800 8,630,500 5,208,600 1,179,600 116,800 6,505,000 697,700 5,807,300 6,505,000 6,070,100 434,900 6,505,000

714,700 714,700 2,125,500 6,063,000 -382,200 7,806,300 8,521,000 5,461,300 1,347,600 6,808,900 714,700 6,094,200 6,808,900 6,357,000 451,900 6,808,900

607,800 607,800 2,660,200 6,063,000 -734,400 -700,000 7,288,800 7,896,600 5,124,300 1,187,200 116,800 6,428,300 607,800 5,820,500 6,428,300 6,003,200 425,100 6,428,300

618,100 618,100 1,468,300 6,063,000 -382,200 -700,000 6,449,100 7,067,200 5,215,400 1,173,100 6,388,500 618,100 5,770,400 6,388,500 5,958,100 430,400 6,388,500

The Department of Alcoholic Beverage Control (ABC), pursuant to KRS Chapters 241-244, enforces laws relating to the manufacture, sale, transportation, storage, and advertising of alcoholic beverages. The agency does not collect taxes. The Commissioner of the Department serves as both the agencys administrative officer and the Chairman of the Alcoholic Beverage Control Board, which also includes the directors of the Malt Beverage and Distilled Spirits divisions. The Secretary of the Public Protection Cabinet, with the approval of the Governor, appoints all three board members. In exercising its quasi-judicial authority, the ABC Board may suspend, revoke, or cancel for cause, after hearing, any license issued due to violation of alcoholic beverage laws. The ABC Board also conducts hearings for and appeals from an applicant whose license is refused by city or county administrators. The Department has enforcement officers assigned throughout the state who conduct investigations, make regular inspections, and otherwise monitor compliance with ABC laws. The Department also implements laws, pursuant to KRS 438.300 438.330, relating to the use, display, sell or distribution of tobacco products with an emphasis on persons under the age of 18.

274

Public Protection Charitable Gaming Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Charitable Gaming TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

140,100 140,100 485,900 3,229,400 3,715,300 3,715,300 2,937,600 534,300 2,500 3,474,400 240,900 3,316,400 3,557,300 3,557,300 2,952,700 542,800 2,500 3,498,000 59,300 3,406,000 3,465,300 3,605,400 3,059,300 543,600 2,500 3,605,400 140,100 3,465,300 3,605,400 3,605,400 3,605,400 240,900 3,316,400 3,557,300 3,557,300 2,926,100 545,400 2,500 3,474,000 83,300 3,406,000 3,489,300 3,489,300 2,940,600 546,200 2,500 3,489,300

3,474,400 3,474,400 3,474,400 3,474,400

3,498,000 3,498,000 3,498,000 3,498,000

3,474,000 3,474,000 3,474,000 3,474,000

3,489,300 3,489,300 3,489,300 3,489,300

The Department of Charitable Gaming, pursuant to KRS Chapter 238, is charged with the licensure and regulation of charitable organizations, facilities, distributors, and manufacturers involved with charitable gaming in the Commonwealth. The agency performs inspections, issues licenses, conducts audits and criminal investigations of charitable gaming establishments.

275

Public Protection Board of Claims/Crime Victims' Compensation Board Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Board of Claims Crime Victims' Board TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

600,000 11,800 611,800 233,800 1,087,000 1,320,800 514,400 514,400 2,447,000 1,211,500 656,900 269,200 2,137,600 611,800 1,011,400 514,400 2,137,600 584,900 1,552,700 2,137,600

1,409,800

1,424,500

696,400

708,900

1,409,800 309,400 1,050,200 1,359,600 450,000 450,000 3,219,400 1,313,300 908,200 732,000 2,953,500 1,409,800 1,093,700 450,000 2,953,500 621,100 2,332,400 2,953,500

1,424,500 265,900 1,012,900 1,278,800 400,000 400,000 3,103,300 1,384,700 868,400 721,800 2,974,900 1,424,500 1,150,400 400,000 2,974,900 648,200 2,326,700 2,974,900

696,400 309,400 1,050,200 1,359,600 450,000 450,000 2,506,000 1,299,100 642,600 232,000 2,173,700 696,400 1,027,300 450,000 2,173,700 625,300 1,548,400 2,173,700

708,900 332,300 1,012,900 1,345,200 400,000 400,000 2,454,100 1,326,000 602,800 221,800 2,150,600 708,900 1,041,700 400,000 2,150,600 637,500 1,513,100 2,150,600

The Board of Claims, pursuant to KRS 44.086(2) and (3), is the only forum through which a citizen may sue the state for alleged negligence. Per 2006 Kentucky Acts Chapter 252, awards of less than $5,000 are paid from funds of the state agency determined to be at fault. Awards over $5,000 are paid from appropriations from the General Fund, and awards against the Transportation Cabinet are paid from the Road Fund. The maximum award on a single claim is $200,000 and there is a cap of $350,000 on multiple claims arising from the same incident. The Crime Victims' Compensation Board, pursuant to KRS Chapter 346, is empowered to reimburse innocent crime victims up to $25,000 for their medical expenses, lost wages that are not paid by any other source, and funeral expenses up to $5,000. The amount of time that a claimant has to submit a claim to the Board is five years. The Crime Victims Compensation Board is funded through an allocation of 3.4 percent of the state court cost fees. The Board of Claims and the Crime Victims' Compensation Board are composed of the same five members appointed by the Governor. Both entities share staff services provided by the agency. The Board is an independent agency that is attached to the Public Protection Cabinet for administrative purposes only.

276

Public Protection Financial Institutions Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Administrative Services Securities Depository Institutions Non-Depository Institutions TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

9,143,000 15,353,300 -673,500 -7,000,000 16,822,800 16,822,800 8,588,900 1,795,900 5,000 60,000 10,449,800 10,449,800 10,449,800 1,800,700 2,038,000 4,232,800 2,378,300 10,449,800

6,073,000 15,195,900 -1,166,100 20,102,800 20,102,800 9,504,800 1,881,000 5,000 11,390,800 11,390,800 11,390,800 1,834,800 2,211,600 4,758,200 2,586,200 11,390,800

8,712,000 15,145,900 -1,166,100 22,691,800 22,691,800 10,050,000 1,879,200 5,000 11,934,200 11,934,200 11,934,200 1,917,600 2,298,800 4,992,900 2,724,900 11,934,200

6,373,000 15,195,900 -1,083,500 -6,500,000 13,985,400 13,985,400 8,713,400 1,893,700 5,000 10,612,100 10,612,100 10,612,100 1,563,800 2,067,900 4,425,900 2,554,500 10,612,100

3,373,300 15,145,900 -1,166,100 -6,000,000 11,353,100 11,353,100 9,092,400 1,887,000 5,000 10,984,400 10,984,400 10,984,400 1,578,200 2,095,200 4,494,100 2,816,900 10,984,400

The Department of Financial Institutions, pursuant to KRS Chapter 286, licenses and regulates banks, bank holding companies, trust companies, credit unions, savings and loan associations, consumer loan companies, industrial loan companies, mortgage loan companies, mortgage loan brokers, check cashing licensees, sale of check licensees, securities issuers, broker-dealers, agents, and investment advisors. A Commissioner appointed by the Governor heads the Department. The Commissioners Office is responsible for the overall management of the agency. The Public Information Officer is part of the Commissioners office and is responsible for all communications with the media and handling the departments public relations efforts through coordination of educational seminars, brochures, and newsletters. The Division of Securities carries out the registration of securities issuances in the state. The Division registers broker-dealers, their agents, investment advisers, and investment adviser representatives, and conducts on-site examinations of these regulated entities. The Division investigates allegations of securities fraud or other illegal conduct entities involved in the securities industry that is operating within Kentucky. The Division of Depository Institutions licenses/charters, examines and regulates depository financial institutions within the Bank Branch and Credit Union Branch. The Bank Branch is responsible for the examination and supervision of commercial banks, bank holding companies, and independent trust companies. The Credit Union Branch is responsible for examination and supervision of all state chartered credit unions. The Division of Non-Depository Institutions includes both the Compliance Branch and Consumer Protection Branch. The Compliance branch is responsible for the examination and supervision of consumer loan companies, industrial loan companies, mortgage loan companies, mortgage loan brokers, check cashing licensees, and money transmitters. The Consumer Protection Branch is responsible for the investigation of complaints and provides outreach and education to protect consumers from financial frauds.

277

Public Protection Horse Racing Commission Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Administration and Regulation of Racing Equine Drug Research Fund Thoroughbred Development Fund Standardbred Development Fund Standardbred Horsemen Fees Ky Quarter Horse, Appaloosa & Arabian Development Fund County Fair Purse Fund Thoroughbred Owners and Breeders Backside Improvement Commission Ky Thoroughbred Breeder Incentive Fund Ky Standardbred Breeder Incentive Fund Ky Horse Breeders Incentive Fund KY Quarter Horse, Appaloosa & Arabian Purse Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

2,660,000 2,660,000 27,575,900 3,646,200 18,321,500 49,543,600 52,203,600 4,603,500 948,700 22,694,400 28,246,600 2,660,000 25,586,600 28,246,600 3,992,100 875,000 6,522,800 220,000 400,000 20,000 127,500 82,200 500,000 11,858,000 2,480,000 1,149,000 20,000 28,246,600

2,660,000 2,660,000 23,957,000 3,636,700 18,994,500 46,588,200 49,248,200 5,407,300 953,000 22,732,600 29,092,900 2,660,000 26,432,900 29,092,900 4,641,700 1,000,000 7,000,000 250,000 400,000 20,000 112,500 75,000 300,400 12,217,300 1,806,000 1,250,000 20,000 29,092,900

2,660,000 2,660,000 20,155,300 3,627,800 19,304,500 43,087,600 45,747,600 5,625,300 946,500 22,837,600 29,409,400 2,660,000 26,749,400 29,409,400 4,832,500 1,000,000 7,151,900 250,000 400,000 20,000 89,300 70,000 300,400 12,310,300 1,715,000 1,250,000 20,000 29,409,400

698,700 698,700 23,957,000 3,636,700 18,994,500 46,588,200 47,286,900 5,361,600 961,700 22,732,600 29,055,900 698,700 28,357,200 29,055,900 4,610,700 1,000,000 7,000,000 250,000 400,000 20,000 112,500 75,000 300,400 12,211,300 1,806,000 1,250,000 20,000 29,055,900

2,738,600 2,738,600 18,231,000 3,627,800 19,304,500 41,163,300 43,901,900 5,424,300 955,200 22,837,600 29,217,100 2,738,600 26,478,500 29,217,100 4,664,600 1,000,000 7,151,900 250,000 400,000 20,000 89,300 70,000 300,400 12,285,900 1,715,000 1,250,000 20,000 29,217,100

The Kentucky Horse Racing Commission, pursuant to KRS 230.225, is responsible for the regulation of horse racing, pari-mutuel wagering on horse racing and related activities in the Commonwealth. The Commission is also charged with fostering and encouraging the equine breeding industry within the Commonwealth. The Commission prescribes the rules, regulations, and conditions under which all Thoroughbred, Standardbred, Quarter Horse, Appaloosa, and Arabian racing and pari-mutuel wagering thereon may be conducted in the Commonwealth. The Commissions charge is to: Recommend tax incentives and other options to promote the strength and growth of the equine industry and to preserve the economic viability of Kentucky's horse farms; Design and implement programs that strengthen the ties between Kentucky's horse industry and the state's universities, with the goal of increasing the horse industry's impact on the state's economy; Developing and supporting programs which ensure that Kentucky remains a national leader in equine research; Develop programs and procedures which will aggressively fulfill its oversight on such matters as race day medications and other medication issues;

278

 Develop and implement programs designed to ensure the safety of all participants in horse racing including jockeys, drivers and horses; and Develop and implement programs and procedures that protect the integrity of pari-mutuel horse racing. The Commission is an independent agency that is attached to the Public Protection Cabinet for administrative purposes only. The Administration and Regulation of Racing program performs the administrative and oversight functions of the Commission. The Division of Veterinary Services oversees the state veterinarians and support staff. The Division of Racing & Security supervises drug testing and interdiction at racetracks. The Division of Licensing is responsible for licensing all individuals who participate in horse racing. The Division of Incentives and Development including the Kentucky Thoroughbred, Standardbred, and Horse Breeders Incentive Funds provide rewards to breeders of horses bred and foaled in Kentucky. Incentive funds are derived from sales taxes paid on stud fees. The Equine Drug Research Council, KRS 230.265, advises the Commission on research and on the regulation of therapeutic medications and prohibited substances. One-tenth of one percent of the thoroughbred pari-mutuel handle supports the Council. Funds are used to support drug research and testing, equine medical research, equine health research or any regulatory or administrative activity of the Commission that is related to such research. The Thoroughbred Development Fund, KRS 230.400, was created in 1978 to encourage breeders from other states to send their breeding stock to Kentucky to improve the caliber of breeding and racing stock in the Commonwealth. The program is funded by three-fourth of one percent of the total pari-mutuel handle and the funds are distributed as purse supplements to the owner of the horse. The Standardbred Development Fund, KRS 230.770, supports efforts to encourage breeders from other states to send their breeding stock to Kentucky, to increase the number of owners in Kentucky, and to increase the number of horses bred in Kentucky. It receives one percent of the pari-mutuel handle and the funds are distributed as purses for the Kentucky Sire Stakes. The Kentucky Quarter Horse, Appaloosa and Arabian Development Fund was established during the 2010 General Assembly to promote races and provide purses for races for horses bred and foaled in the Commonwealth. The Kentucky Horse Racing Commission is responsible for distributing the funds to persons, corporations or associations operating licensed tracks within Kentucky conducting Quarter Horse, Appaloosa or Arabian horse racing. The County Fair Purse Fund, KRS 230.398, receives funding from pari-mutuel standardbred racing tickets not redeemed and four percent of the commissions on wagers at simulcast facilities and redistributes the funds in the form of purse supplements for standardbred racing events to county fairs. The Backside Improvement Fund, KRS 230.218, is charged with promoting, enhancing, and improving the backsides of eligible thoroughbred racing associations with an average pari-mutuel handle of $1,200,000 or less per racing day. Associations conducting thoroughbred racing, with an average pari-mutuel handle of $1,200,000 or less per live racing day, are required to pay one-half of one percent of on-track wagers to the Backside Improvement Fund. The Thoroughbred Owners and Breeders Fund, KRS 230.380, receives six percent of the commissions on wagers at simulcast facilities to fund capital improvements and promote off-track betting. It also supports marketing and promotion of the Kentucky thoroughbred industry.

279

Public Protection Housing, Buildings and Construction Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT General Administration and Management Fire Prevention Boiler Inspections Hazardous Materials Inspections Manufactured Housing Inspections General Inspections Sprinkler/Alarm Inspections Elevator Inspections Plumbing Safe Cigarette Program HVAC Building Codes Enforcement Electrical TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

2,179,800 2,179,800 6,717,000 17,062,200 23,779,200 25,959,000 14,971,600 3,522,600 779,500 19,273,700 2,179,800 17,093,900 19,273,700 1,212,900 1,162,800 901,900 712,500 665,600 1,524,500 85,800 1,262,300 5,153,400 6,000 2,173,800 2,630,900 1,781,300 19,273,700

2,722,300 2,722,300 6,685,300 17,008,000 23,693,300 26,415,600 16,417,900 3,575,300 730,400 20,723,600 2,722,300 18,001,300 20,723,600 1,271,400 1,240,400 945,400 737,900 717,200 1,726,400 91,400 1,249,300 5,574,300 6,000 2,381,000 2,836,800 1,946,100 20,723,600

3,125,000 3,125,000 5,692,000 17,008,000 -21,900 22,678,100 25,803,100 17,424,100 3,623,400 730,400 21,777,900 3,125,000 18,652,900 21,777,900 1,337,600 1,292,100 992,200 778,900 751,600 1,828,500 95,600 1,310,300 5,876,900 6,000 2,500,200 2,982,600 2,025,400 21,777,900

2,455,300 2,455,300 6,685,300 17,662,700 24,348,000 26,803,300 16,165,600 3,683,400 730,400 20,579,400 2,455,300 18,124,100 20,579,400 1,251,900 1,240,900 930,800 755,300 709,100 1,742,100 90,800 1,231,400 5,511,800 6,000 2,368,200 2,804,000 1,937,100 20,579,400

2,501,500 2,501,500 6,223,900 17,662,700 -21,900 23,864,700 26,366,200 16,537,200 3,712,100 730,400 20,979,700 2,501,500 18,478,200 20,979,700 1,272,300 1,259,100 946,000 776,300 723,100 1,773,300 92,400 1,254,300 5,629,900 6,000 2,423,100 2,854,300 1,969,600 20,979,700

The Department of Housing, Buildings and Construction, pursuant to KRS Chapter 198B, regulates all construction of buildings through enforcement of building and fire codes, including: elevators, boilers, manufactured housing, hazardous materials, HVAC and electrical, sprinkler and plumbing installation. The agency enforces a uniform building code for the Commonwealth with a building inspection program that is designed to prevent fire- and life-safety hazards. The Division of Fire Prevention enforces the Kentucky Standards of Safety (815 KAR 10:060) in addition to state and federal laws and regulations by performing property inspections, reviewing plans and issuing permits for the underground storage tanks, and educating the public about fire safety. The State Fire Marshals Office implements a Sprinkler Inspection Program for all state owned properties under a memorandum of agreement. The Administrative Section of the Fire Prevention Division supports the activities of the General Inspection Section, the Hazardous Materials Section, the Sprinklers and Alarms Certification Section, the Safe Cigarette Program and expanded Fireworks Program. The Division of Plumbing, a fee-supported program, enforces the Kentucky State Plumbing code (KRS 318.130; 815 KAR Chapter 20). Duties of the Division include: installation inspections of all plumbing systems throughout the state; approval of plumbing plans for all public buildings; testing of applicants for licensure; issuing renewal licenses to master and journeyman plumbers, and assisting the State Plumbing Code Committee in its review of plumbing code administrative regulations. The Plumbing Code Committee, among other duties, reviews and recommends new materials and techniques to be included in the approved parts and materials lists of the Kentucky State Plumbing Code. The Division may pursue sanctions and penalties against both licensed and unlicensed individuals performing plumbing.

280

The Division of Heating, Ventilation, and Air Conditioning (HVAC) is responsible for annual licensing and oversight of the heating, ventilation, and air conditioning contractors, journeymen, and apprentices. The HVAC Board promulgates administrative regulations relating to all aspects of the HVAC industry, conducts examinations, maintains all licensure information, registers apprentices and may pursue sanctions against licensees and criminal penalties against unlicensed persons engaging in activities requiring an HVAC license. The Board approves continuing education providers, programs and scheduling for HVAC masters and journeymen. On January 1, 2011, the Division began the Statewide Permitting and Inspection Program under the provisions of KRS 198B.6678 and is mandated to make the inspections within a specified timeframe as set out in KRS 198B.6672 for both residential and commercial HVAC installations. The Division of Building Codes Enforcement provides overall coordination and enforcement of the Kentucky Building Code (815 KAR 7:120) and the Kentucky Residential Code (815 KAR 7:125). The division includes plan review and field inspection and manufactured housing sections. Among the duties of this division are inspection, plan review, licensing, investigation, and technical consulting services to the construction industry. The Division is funded primarily from plan review fees. The Division of Electrical was created by Executive Order on December 16, 2013 and is composed of the Electrical Licensing and Electrical Inspection Sections. The Electrical Division enforces the mandates contained within KRS Chapter 227A and KRS 224.450-89 to protect the public through regulation, licensure and inspection of the electrical industry.

281

Public Protection Insurance Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Executive Director and Administration Small Business Insurance Subisdy Property and Casualty Financial Standards and Examination Agent Licensing Consumer Protection Insurance Fraud Investigation Medicaid Prompt Payment Compliance Health and Life Mine Subsidence Program TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

16,161,600 33,626,800 -1,656,300 -15,000,000 33,132,100 8,600 948,200 -8,600 948,200 34,080,300 14,016,500 1,946,700 40,000 16,003,200 15,055,000 948,200 16,003,200 3,174,800 2,000 935,900 2,401,300 1,370,800 2,414,600 1,338,700 800,000 3,381,900 183,200 16,003,200

15,727,100 33,553,500 -2,045,100 47,235,500

29,322,900 33,496,200 -2,039,500 60,779,600

18,077,100 33,528,600 -1,918,800 -23,000,000 26,686,900

9,082,400 33,457,800 -2,046,300 -21,500,000 18,993,900

1,065,700 1,065,700 48,301,200 16,746,700 2,191,600 40,000 18,978,300 17,912,600 1,065,700 18,978,300 3,494,300 11,900 1,144,600 3,078,300 1,794,600 2,868,400 1,580,900 824,900 3,987,400 193,000 18,978,300

1,098,700 1,098,700 61,878,300 17,341,800 2,191,600 40,000 19,573,400 18,474,700 1,098,700 19,573,400 3,649,500 11,900 1,194,900 3,126,700 1,865,400 2,940,700 1,639,600 838,400 4,107,700 198,600 19,573,400

1,065,700 1,065,700 27,752,600 16,450,900 2,179,300 40,000 18,670,200 17,604,500 1,065,700 18,670,200 3,459,700 11,900 1,142,000 3,065,100 1,783,800 2,847,000 1,562,300 800,000 3,808,100 190,300 18,670,200

1,098,700 1,098,700 20,092,600 16,644,000 2,174,500 40,000 18,858,500 17,759,800 1,098,700 18,858,500 3,512,500 11,900 1,159,800 3,080,700 1,810,600 2,870,600 1,578,500 800,000 3,842,100 191,800 18,858,500

The Department of Insurance, pursuant to KRS Chapter 304, has the authority to license, supervise, and regulate insurance companies doing business in Kentucky. The Commissioner is responsible for the overall policy, planning, direction, and management of all divisions within the Department. It is the responsibility of the commissioner to oversee the manner in which the business of insurance is conducted in Kentucky. The Commissioner is charged with protecting the public interest, promoting viable markets, and assuring fair treatment of insurance consumers. An ombudsman provides additional assistance to consumers. The Property and Casualty Division regulates coverage and marketing practices of property and casualty insurers. Through its annual review of property and casualty insurance rate and form filings, the Division ensures that companies comply with the standards set forth in the Kentucky Insurance Code. The Division is also responsible for reporting medical malpractice claims, recording of no-fault rejections (tort liability), and verifying such rejection. It is responsible for the regulation of surplus lines insurance. The Health and Life Division regulates insurance companies selling health, life and disability products. The Division approves policies, certificates, provider networks, quality improvement programs, and rate filings. The Division reviews promotional literature and activities for the protection of the public. The Division handles inquiries about Medicare and long-term care insurance. The Division is responsible for conducting research on strategies related to financial services modernization.

282

The Financial Standards and Examination Division protects consumers by ensuring the financial solvency of insurers authorized to do business in Kentucky. The Division is responsible for conducting financial examinations, financial analyses, and providing administrative oversight of the insurance industry. The Insurance Fraud Investigation Division is the Departments enforcement unit empowered to conduct criminal investigations of suspected fraudulent insurance acts. Insurance-related fraud may be committed by applicants for insurance, policyholders, third party claimants, agents, and providers of services who are paid by insurance. The Agent Licensing Division makes certain that only knowledgeable and qualified insurance representatives sell insurance products to Kentucky consumers. The Division administers examinations, monitors continuing education courses, and licenses agents. The Consumer Protection Division is the main link between the Department and the citizens of the Commonwealth. The Division also administers the emergency response program, which provides on-site assistance to citizens or communities affected by insured disasters within the Commonwealth. The Market Conduct unit of Consumer Protection observes and analyzes the business practices of insurers. Established in 2013, the Medicaid Prompt Payment Claims (MPPC) Branch was created to process grievance/complaints from health care providers or individual claimants. The MPPC Brach was tasked to review and resolve open complaints transferred from the Department for Medicaid Services and investigate all subsequent MCO complaints from health care providers.

283

Public Protection Tax Appeals Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Tax Appeals TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

408,800 13,500 422,300 422,300 384,300 38,000 422,300 422,300 422,300 422,300 422,300

465,600

490,600

464,300

471,800

465,600 465,600 425,300 40,300 465,600 465,600 465,600 465,600 465,600

490,600 490,600 451,300 39,300 490,600 490,600 490,600 490,600 490,600

464,300 464,300 422,600 41,700 464,300 464,300 464,300 464,300 464,300

471,800 471,800 431,100 40,700 471,800 471,800 471,800 471,800 471,800

The Board of Tax Appeals, pursuant to KRS Chapter 131, is an administrative review agency with exclusive jurisdiction to hear and resolve appeals arising from final rulings, orders, and determinations of any agency of state or county government relating to revenue and taxation. The Board consists of three members appointed by the Governor for staggered four-year terms. One member is designated by the Governor as chair. The Board is an independent agency that is attached to the Public Protection Cabinet for administrative purposes only.

284

Tourism, Arts and Heritage

Tourism, Arts and Heritage Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Secretary Artisans Center Travel Parks Horse Park Commission State Fair Board Fish and Wildlife Resources Historical Society Arts Council Heritage Council Kentucky Center for the Arts TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

46,723,200 269,600 18,716,900 65,709,700 90,546,900 160,903,500 -23,047,200 228,403,200 10,624,800 20,699,400 31,324,200 350,000 350,000 325,787,100 132,343,100 74,150,200 12,817,900 1,662,100 3,045,700 224,019,000 65,709,700 137,182,400 20,776,900 350,000 224,019,000 12,924,900 2,288,600 3,113,400 81,358,200 12,702,200 46,477,800 52,127,200 6,757,100 3,714,500 1,752,700 802,400 224,019,000

90,643,400

107,628,100

56,619,100

58,642,800

90,643,400 91,216,300 162,414,500 -10,748,800 242,882,000 10,547,300 20,790,400 31,337,700 350,000 350,000 365,213,100 145,843,100 80,464,800 13,741,400 22,392,200 3,400,000 265,841,500 90,643,400 154,057,700 20,790,400 350,000 265,841,500 18,912,700 2,609,400 4,324,100 92,737,400 14,902,400 60,976,200 53,647,700 9,970,200 4,053,300 2,081,900 1,626,200 265,841,500

107,628,100 88,824,300 166,478,100 -10,324,800 244,977,600 10,547,300 19,674,600 30,221,900 350,000 350,000 383,177,600 153,186,300 79,951,200 11,960,500 38,203,900 2,097,200 285,399,100 107,633,200 157,746,400 19,669,500 350,000 285,399,100 20,842,900 2,679,600 4,514,700 98,411,400 15,682,600 73,978,800 52,660,400 8,566,300 4,153,100 2,169,400 1,739,900 285,399,100

56,619,100 91,220,800 162,369,500 -10,748,800 -6,600,000 236,241,500 10,547,300 20,790,400 31,337,700 393,400 393,400 324,591,700 138,511,100 71,681,000 16,342,300 696,500 2,458,000 229,688,900 56,619,100 152,670,000 20,006,400 393,400 229,688,900 15,604,100 2,366,000 3,139,400 82,910,200 12,990,600 46,612,300 52,619,200 6,729,700 3,678,700 1,813,500 1,225,200 229,688,900

58,642,800 83,571,500 166,433,100 -10,148,800 -3,000,000 236,855,800 11,331,300 19,674,600 31,005,900 410,500 410,500 326,915,000 141,916,600 70,567,100 11,288,900 4,081,000 1,986,300 229,839,900 58,642,800 152,466,600 18,320,000 410,500 229,839,900 12,834,800 2,400,200 3,193,500 83,805,100 13,103,400 50,681,000 50,171,900 6,782,900 3,707,600 1,837,800 1,321,700 229,839,900

The Tourism, Arts and Heritage Cabinets mission (KRS 148.522) is to capitalize on the natural assets of the Commonwealth and draw from resources in business development, tourism, outdoor attractions, arts, and cultural heritage. Through unified efforts of its agencies, the Cabinet will continually strive to improve the quality of life of the people of Kentucky by creating new wealth and generating jobs.

285

The Tourism, Arts and Heritage Cabinet is comprised of the following agencies: Kentucky State Fair Board Kentucky Heritage Council Kentucky Arts Council Kentucky Historical Society Kentucky Center for the Arts Governors School for the Arts Department of Fish and Wildlife Resources Kentucky Horse Park Kentucky Department of Parks Kentucky Artisan Center at Berea Department of Travel and Tourism Office of the Secretary Capital Plaza Operations Creative Services The Kentucky Humanities Council

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Tourism, Arts and Heritage Secretary Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Executive Policy and Management Capital Plaza Operations Creative Services Sports Authority Tourism Meeting & Convention Marketing Coal Severance Tourism TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

2,582,400 9,700 2,592,100 6,483,600 1,252,700 10,400,000 18,136,300 20,728,400 3,889,800 3,509,100 5,526,000 12,924,900 2,592,100 10,332,800 12,924,900 2,192,100 787,800 790,000 85,600 9,000,000 69,400 12,924,900

5,296,300

7,203,600

2,694,100

2,748,300

5,296,300 7,803,500 1,255,400 10,900,000 19,958,900 25,255,200 4,525,000 7,029,700 5,526,000 1,832,000 18,912,700 5,296,300 13,616,400 18,912,700 4,592,700 874,200 860,200 85,600 12,500,000

7,203,600 6,342,500 1,258,200 11,500,000 19,100,700 26,304,300 4,745,700 7,031,200 5,526,000 3,540,000 20,842,900 7,203,600 13,639,300 20,842,900 6,450,800 900,000 906,500 85,600 12,500,000

2,694,100 7,803,500 1,255,400 10,900,000 -6,000,000 13,958,900 16,653,000 4,020,700 3,227,500 8,355,900 15,604,100 2,694,100 12,910,000 15,604,100 2,258,200 815,400 615,000 85,600 11,829,900

2,748,300 1,048,900 1,258,200 11,500,000 -3,000,000 10,807,100 13,555,400 4,081,200 3,227,600 5,526,000 12,834,800 2,748,300 10,086,500 12,834,800 2,295,100 824,500 629,600 85,600 9,000,000

18,912,700

20,842,900

15,604,100

12,834,800

The Office of the Secretarys appropriation unit comprises of: Executive Policy and Management - The Executive Policy and Management unit directs planning and management of the agencies within the Cabinet. This program develops plans to assure orderly growth and improved management, recommends executive actions and legislative measures, and evaluates agency budget requests. Creative Services - The Creative Services program performs a range of creative and productive services for agencies in state government, including audio and video production, graphic design, multimedia event services, and photography. Frankfort Convention Center - The Frankfort Convention Center serves as both a small and large meeting facility, containing a 10,000 square foot arena with fixed seating space of 5,365. The small meeting facility space contains 1,575 square feet for governmental or business conference functions. The Frankfort Convention Center also manages over 57,000 square feet of rental space for 10 state agencies and eight private businesses. Sports Authority - The Kentucky Sports Authority, established pursuant to KRS 148.590, has a fourteen member board with the primary responsibility to recruit, promote, assist, place, and develop sporting events, facilities, and programs throughout the Commonwealth, with the final goal of developing the economy, commerce, job opportunities, and revenue streams.

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Tourism, Meeting, and Convention Marketing Fund - This fund is established by KRS 142.406 with revenues from a one percent transient room tax dedicated for the sole purpose of marketing and promoting tourism in the Commonwealth, including expenditures to market and promote events and venues related to meetings, conventions, trade shows, cultural activities, historical sites, recreation, entertainment, natural phenomena, areas of scenic beauty, craft marketing, and any other economic activity that brings tourists and visitors to the Commonwealth.

288

Tourism, Arts and Heritage Artisans Center Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Berea Artisans Center TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

353,200 2,000 355,200 46,700 1,583,400 1,630,100 350,000 350,000 2,335,300 1,207,000 1,081,600 2,288,600 355,200 1,583,400 350,000 2,288,600 2,288,600 2,288,600

676,000

746,200

389,200

406,300

676,000 46,700 1,583,400 1,630,100 350,000 350,000 2,656,100 1,494,800 1,114,600 2,609,400 676,000 1,583,400 350,000 2,609,400 2,609,400 2,609,400

746,200 46,700 1,583,400 1,630,100 350,000 350,000 2,726,300 1,525,800 1,153,800 2,679,600 746,200 1,583,400 350,000 2,679,600 2,679,600 2,679,600

389,200 46,700 1,583,400 1,630,100 393,400 393,400 2,412,700 1,293,800 1,072,200 2,366,000 389,200 1,583,400 393,400 2,366,000 2,366,000 2,366,000

406,300 46,700 1,583,400 1,630,100 410,500 410,500 2,446,900 1,328,000 1,072,200 2,400,200 406,300 1,583,400 410,500 2,400,200 2,400,200 2,400,200

The Kentucky Artisan Center at Berea is established to promote Kentucky arts and craft products and serve as a unique gateway for travelers, offering quality Kentucky arts, crafts, music, and other artisan products, along with authentic heritage experiences. The Artisan Center purchases for resale over 4,000 different artisan products from over 650 vendors in 100 counties statewide. Hospitality, caf food service, KY travel information assistance, and rest stop services are also provided by the Center for over 265,000 visitors annually. The Center currently serves as the only mid-state rest area on I-75. The Appalachian/Kentucky Artisans Gateway Center Authority (KRS 148.560-569) has an appointed, thirteen member board to direct operations of the Center and is attached to the Tourism Arts and Heritage Cabinet for administrative purposes.

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Tourism, Arts and Heritage Travel Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Executive Policy and Management Tourism Services Marketing and Advertising Communications and Promotions TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

3,056,800 11,600 3,068,400 100,300 13,600 113,900 3,182,300 2,587,700 525,700 3,113,400 3,068,400 45,000 3,113,400 1,069,500 515,400 1,061,400 467,100 3,113,400

4,279,100

4,473,600

3,094,400

3,152,400

4,279,100 68,900 13,600 82,500 4,361,600 3,798,000 526,100 4,324,100 4,279,100 45,000 4,324,100 1,166,900 562,500 1,965,600 629,100 4,324,100

4,473,600 37,500 13,600 51,100 4,524,700 3,992,500 522,200 4,514,700 4,473,600 41,100 4,514,700 1,214,300 595,300 2,043,200 661,900 4,514,700

3,094,400 68,900 13,600 82,500 3,176,900 2,772,100 367,300 3,139,400 3,094,400 45,000 3,139,400 1,069,000 525,000 1,072,500 472,900 3,139,400

3,152,400 37,500 13,600 51,100 3,203,500 2,830,100 363,400 3,193,500 3,152,400 41,100 3,193,500 1,082,800 537,300 1,092,200 481,200 3,193,500

The Department of Travel and Tourism was created to promote, develop, and provide support services for the tourism industry within the Commonwealth. Executive Policy and Management - The Executive Policy and Management program establishes the policies and goals; coordinates the overall planning, management, and direction for the agency; and provides for the efficient administration of the Department and its programs. Tourism Services - The Division of Tourism Services provides technical and design support to the overall marketing and promotions activities of the department. These activities provide graphic design support for development of both print and website promotions as well as technical support for website maintenance. Additionally, the division disseminates tourism information to tourists and potential visitors via a telephone system and fulfills visitor information through direct mail. Tourism Services provides assistance to travel planners calling the toll-free phone line requesting information as well as fulfilling requests for the Official Visitors Guide. Marketing and Administration - The Division of Marketing and Administration is responsible for motivating travel to and within Kentucky. The Division maintains a database of all of the tourism related attractions, destinations and events throughout the state. These tourism assets are promoted through advertising via broadcast, print, and online media. Additionally, the Division participates in trade shows, events and conferences to showcase the state. The Division also collaborates with industry partners within the state and throughout the region to leverage marketing efforts. The Tourism Marketing Incentive Program is a collaborative effort to utilize the one percent transient room tax funds, dedicated for the sole purpose of marketing and promoting tourism in the Commonwealth, efficiently and effectively. The Division of Marketing and Administration staffs eight Welcome Centers throughout the state. The travel hosts at the Centers, located in Florence, Franklin, Grayson, Hopkinsville, Paducah, Simpsonville, Shepherdsville and Williamsburg offer helpful travel information and a positive image of Kentucky to tourists seeking assistance when they visit the state. Communications and Promotions - The Division of Communications and Promotions works to complement the activities of the Departments advertising programs by engaging media and employing other strategies that publicize Kentuckys attractions and events as tourism destinations. These efforts primarily focus on generating earned broadcast and print media to support the marketing efforts of the department. This Division serves as the liaison with media sources, maintaining constant contact

290

through e-newsletters, and a web-based media resource site. Assistance is provided to individual media representatives and travel writers in a variety of ways including, but not limited to, creating story ideas, making travel arrangements, providing photographs, video and fact verification. Regular press releases are prepared for the Department of Travel and Tourism and the Department of Parks to keep the public abreast of attractions and events in Kentucky. The goal of the division is to provide comprehensive support for projects and promotions developed through the department on behalf of the tourism industry in Kentucky.

291

Tourism, Arts and Heritage Parks Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT General Administration and Support Resort Parks Recreation Parks and Historic Sites Cafeterias TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

28,314,000 129,400 8,216,900 36,660,300 250,100 49,227,900 -4,598,400 44,879,600 81,539,900 50,014,000 31,344,200 81,358,200 36,660,300 44,697,900 81,358,200 12,430,500 51,715,100 15,259,700 1,952,900 81,358,200

43,390,500

49,068,300

33,608,300

34,507,000

43,390,500 181,700 49,272,900 49,454,600 92,845,100 54,797,700 33,414,400 4,525,300 92,737,400 43,390,500 49,346,900 92,737,400 17,821,200 55,898,000 17,000,900 2,017,300 92,737,400

49,068,300 107,700 49,272,900 49,380,600 98,448,900 57,369,500 33,026,600 8,015,300 98,411,400 49,068,300 49,343,100 98,411,400 21,818,600 57,103,300 17,424,800 2,064,700 98,411,400

33,608,300 181,700 49,227,900 49,409,600 83,017,900 52,849,500 29,649,700 411,000 82,910,200 33,608,300 49,301,900 82,910,200 12,304,700 52,717,800 15,874,600 2,013,100 82,910,200

34,507,000 107,700 49,227,900 49,335,600 83,842,600 53,996,600 28,813,000 995,500 83,805,100 34,507,000 49,298,100 83,805,100 13,220,300 52,452,000 16,094,800 2,038,000 83,805,100

The Department of Parks administers and operates the Kentucky State Park System under the authority of KRS Chapter 148. The Department strives to provide quality recreational facilities and to preserve and protect historically significant sites and natural phenomena in the Commonwealth of Kentucky. The Vision for Kentucky State Parks is to provide quality recreation and hospitality experiences for people of all ages that enhance their appreciation for adventure, fun, education, and beauty through responsible stewardship of our Commonwealths natural, historic and cultural resources, and with a professional staff committed to excellent service for our guests. The Mission of Kentucky State Parks is to provide a sustainable system of parks that delivers quality programs, amenities, and services which create memorable experiences and a sense of place, contributes to the economic growth of the Commonwealth, and preserves the historic and natural integrity and traditions of our parks for existing and future generations. The activities of the Department include the operation and maintenance of 17 resort parks, 22 recreational parks, 11 historic sites, three cafeterias in Frankfort, and other miscellaneous facilities, including one interstate park. The Park System provides overnight lodging to 425,000 guests, food service for 1,175,000 meals for dining patrons, camping for 470,000 guests, golf for 210,000 players, along with other park amenities and activities. Policy The Executive Budget provides General Fund in the amount of $8,216,900 in fiscal year 2013-2014, $1,600,000 in fiscal year 20142015 and $600,000 in fiscal year 2015-2016 to cover the cumulative and ongoing revenue shortfall to enable the Department to continue operating without closing facilities.

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Tourism, Arts and Heritage Parks General Administration and Support Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Current Year Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

11,026,400 1,172,200 12,198,600 146,200 181,900 328,100 12,526,700 9,949,400 2,481,100 12,430,500 12,198,600 231,900 12,430,500

17,589,300 17,589,300 96,200 181,900 278,100 17,867,400 11,821,900 2,509,300 3,490,000 17,821,200 17,589,300 231,900 17,821,200

21,590,500 21,590,500 46,200 181,900 228,100 21,818,600 12,322,400 2,516,200 6,980,000 21,818,600 21,590,500 228,100 21,818,600

12,072,800 12,072,800 96,200 181,900 278,100 12,350,900 10,260,800 1,632,900 411,000 12,304,700 12,072,800 231,900 12,304,700

12,992,200 12,992,200 46,200 181,900 228,100 13,220,300 10,428,600 1,796,200 995,500 13,220,300 12,992,200 228,100 13,220,300

The General Administration and Support program provides an organizational and administrative system to maintain and operate the 51 park system entities. Central administrative functions, such as accounting, purchasing, budgeting, and personnel, along with program operations support and central maintenance and minor construction support, are included in this program. Policy The Executive Budget provides General Fund in the amount of $411,000 in fiscal year 2014-2015 and $995,500 in fiscal year 2015-2016 for debt service on new bonds included in the capital budget.

293

Tourism, Arts and Heritage Parks Resort Parks Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Total General Fund Restricted Funds Current Receipts Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

9,779,200 129,400 6,571,900 16,480,500 39,360,200 -4,125,600 35,234,600 51,715,100 29,431,000 22,284,100 51,715,100 16,480,500 35,234,600 51,715,100

16,492,800

17,698,100

13,357,600

13,091,800

16,492,800 39,405,200 39,405,200 55,898,000 31,610,000 23,281,000 1,007,000 55,898,000 16,492,800 39,405,200 55,898,000

17,698,100 39,405,200 39,405,200 57,103,300 33,142,000 22,954,300 1,007,000 57,103,300 17,698,100 39,405,200 57,103,300

13,357,600 39,360,200 39,360,200 52,717,800 31,280,000 21,437,800 52,717,800 13,357,600 39,360,200 52,717,800

13,091,800 39,360,200 39,360,200 52,452,000 32,014,200 20,437,800 52,452,000 13,091,800 39,360,200 52,452,000

The Resort Parks program encourages tourism and economic development in Kentucky by providing excellent overnight accommodations, quality food service, and recreational activities for visitors at the 17 resort parks. The resort parks and their locations are: Barren River Resort Park - Barren County Blue Licks Battlefield State Park - Robertson County Buckhorn Lake Resort Park - Perry County Carter Caves Resort Park - Carter County Cumberland Falls Resort Park - Whitley County Dale Hollow Resort Park - Cumberland and Clinton Counties General Butler Resort Park - Carroll County Greenbo Lake Resort Park - Greenup County Jenny Wiley Resort Park - Floyd County Kenlake Resort Park - Marshall County Kentucky Dam Village Resort Park - Marshall County Lake Barkley Resort Park - Trigg County Lake Cumberland Resort Park - Russell County Natural Bridge Resort Park - Powell County Pennyrile Forest Resort Park - Christian County Pine Mountain Resort Park - Bell County Rough River Resort Park - Grayson County

294

Tourism, Arts and Heritage Parks Recreation Parks and Historic Sites Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Current Year Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

7,268,400 472,800 7,741,200

9,005,100 9,005,100 4,500 7,995,800 8,000,300 17,005,400 10,323,300 6,649,300 28,300 17,000,900 9,005,100 7,995,800 17,000,900

9,429,000 9,429,000 4,500 7,995,800 8,000,300 17,429,300 10,815,200 6,581,300 28,300 17,424,800 9,429,000 7,995,800 17,424,800

7,878,800 7,878,800 4,500 7,995,800 8,000,300 15,879,100 10,270,400 5,604,200 15,874,600 7,878,800 7,995,800 15,874,600

8,099,000 8,099,000 4,500 7,995,800 8,000,300 16,099,300 10,490,600 5,604,200 16,094,800 8,099,000 7,995,800 16,094,800

7,995,800 -472,800 7,523,000 15,264,200 9,655,500 5,604,200 15,259,700 7,741,200 7,518,500 15,259,700

The Recreation Parks and Historic Sites program encourages tourism and economic development in Kentucky by providing modern recreational and camping facilities and preserving significant scenic and historic landmarks, as well as operating museums and shrines. Recreation Park Facilities Big Bone Lick State Park - Boone County Carr Creek State Park - Knott County Columbus-Belmont Battlefield State Park - Hickman County E. P. "Tom" Sawyer State Park - Jefferson County Fort Boonesborough State Park - Madison County General Burnside State Park - Pulaski County Grayson Lake State Park - Elliott and Carter Counties Green River Lake State Park - Taylor County John James Audubon State Park - Henderson County Kincaid Lake State Park - Pendleton County Kingdom Come State Park - Harlan County Lake Malone State Park - Muhlenberg County Levi Jackson Wilderness Road State Park - Laurel County Lincoln Homestead State Park - Washington County Mineral Mound State Park - Lyon County My Old Kentucky Home State Park - Nelson County Nolin Lake State Park - Edmonson County Old Fort Harrod State Park - Mercer County Paintsville Lake State Park - Johnson County Pine Mountain Trail State Park - Harlan & Bell Counties Taylorsville Lake State Park - Spencer County Yatesville Lake State Park - Lawrence County

Historic Sites Boone Station - Fayette County Constitution Square State Shrine - Boyle County Dr. Thomas Walker State Shrine - Knox County Isaac Shelby State Shrine - Lincoln County Jefferson Davis Monument State Shrine - Todd County Old Mulkey Meeting House State Shrine - Monroe County Perryville Battlefield State Shrine - Boyle County Waveland State Shrine - Fayette County White Hall State Shrine - Madison County Wickliffe Mounds State Historic Site - Ballard County William Whitley House State Shrine - Lincoln County

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Tourism, Arts and Heritage Parks Cafeterias Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

240,000 240,000 103,900 1,690,000 1,793,900 2,033,900 978,100 974,800 1,952,900 240,000 1,712,900 1,952,900

303,300 303,300 81,000 1,690,000 1,771,000 2,074,300 1,042,500 974,800 2,017,300 303,300 1,714,000 2,017,300

350,700 350,700 57,000 1,690,000 1,747,000 2,097,700 1,089,900 974,800 2,064,700 350,700 1,714,000 2,064,700

299,100 299,100 81,000 1,690,000 1,771,000 2,070,100 1,038,300 974,800 2,013,100 299,100 1,714,000 2,013,100

324,000 324,000 57,000 1,690,000 1,747,000 2,071,000 1,063,200 974,800 2,038,000 324,000 1,714,000 2,038,000

The Cafeteria program provides food service in the Capitol Annex, Transportation Building, and the Health and Family Services Building for members of the General Assembly, state employees, and visitors to the state offices in Frankfort. The cafeterias also provide catering service for special local events.

296

Tourism, Arts and Heritage Horse Park Commission Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Kentucky Horse Park TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

2,390,800 4,500 2,395,300 908,800 10,252,600 11,161,400 13,556,700 6,993,300 5,556,400 152,500 12,702,200 2,395,300 10,306,900 12,702,200 12,702,200 12,702,200

4,044,900

4,635,500

2,471,800

2,510,800

4,044,900 850,000 10,807,700 11,657,700 15,702,600 7,935,900 5,824,400 657,000 485,100 14,902,400 4,044,900 10,857,500 14,902,400 14,902,400 14,902,400

4,635,500 800,200 10,997,300 11,797,500 16,433,000 8,242,900 5,863,300 1,313,000 263,400 15,682,600 4,635,500 11,047,100 15,682,600 15,682,600 15,682,600

2,471,800 854,500 10,807,700 11,662,200 14,134,000 7,269,100 5,569,000 152,500 12,990,600 2,471,800 10,518,800 12,990,600 12,990,600 12,990,600

2,510,800 1,143,400 10,997,300 12,140,700 14,651,500 7,379,200 5,571,700 152,500 13,103,400 2,510,800 10,592,600 13,103,400 13,103,400 13,103,400

The Kentucky Horse Park (KRS 148.260) is comprised of 1,224 acres on which are situated over 110 structures, 34 miles of fencing and 260 campsites. Horse Park programs consist primarily of four main functions: Equine Theme Park-The central area of the park contains tourist activities that include the Visitor Information Center, International Museum of the Horse, gift shop, restaurant, Parade of Breeds and Hall of Champions shows, horseback riding, horse drawn tours, and other activities. The expansion of the new indoor arena and outdoor stadium was completed in 2009. Events-The Horse Park is the host venue for both equine and non-equine special events. Horse shows are central to the mission of the park and comprise the majority of special event activities. Eighty Seven annual equine events utilize 21 pole barns (1,086 stalls), a 1,200 seat covered arena, show office complex, six hunter-jumper rings, five dressage rings, a 7,800-yard cross country course, steeplechase course, and other ancillary structures. The park also hosts non-equine events that include soccer, high school cross country, dog shows, Old Kentucky Nights evening programs, Southern Lights holiday lights show, and many other events. Campground-The popular campground is made up of 260 campsites with water/electric hookups, grocery store, two bathhouses, pool, tennis courts, playground, primitive camping, and covered pavilion. Each year more than 102,000 people camp at the Horse Park, generating more than $1.3 million in direct annual income. National Horse Center-Another area of remarkable growth has been the National Horse Center (NHC), a collection of the nations and the states leading equestrian organizations. The NHC now includes 33 distinct organizations contained in 11 office buildings. The NHC has solidified the key role of the Horse Park in making Kentucky the Horse Capital of the World.

297

Tourism, Arts and Heritage State Fair Board Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Current Year Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Kentucky Fair and Exposition Center Kentucky International Convention Center Debt Service TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

18,261,000 89,900 10,500,000 10,589,900 111,200 43,178,000 -7,200,000 36,089,200 46,679,100 24,891,700 16,996,900 2,080,000 1,662,100 847,100 46,477,800 10,589,900 35,887,900 46,477,800 40,118,400 4,697,300 1,662,100 46,477,800 18,261,000 201,300 42,513,900 42,715,200 60,976,200 26,234,700 17,913,600 2,507,500 12,764,900 1,555,500 60,976,200 18,261,000 42,715,200 60,976,200 43,566,500 4,644,800 12,764,900 60,976,200

27,789,200

3,897,100

4,491,400

27,789,200

3,897,100 201,300 42,513,900 42,715,200 46,612,300 25,099,000 17,870,700 2,507,500 189,000 946,100 46,612,300 3,897,100 42,715,200 46,612,300 41,807,800 4,615,500 189,000 46,612,300

4,491,400

46,365,600 -176,000 46,189,600 73,978,800 27,903,900 18,666,100 2,515,200 24,037,600 856,000 73,978,800 27,789,200 46,189,600 73,978,800 44,984,000 4,957,200 24,037,600 73,978,800

46,365,600 46,365,600 50,857,000 26,225,600 18,758,600 2,086,300 2,754,500 856,000 50,681,000 4,491,400 46,189,600 50,681,000 43,070,800 4,855,700 2,754,500 50,681,000

The Kentucky State Fair Board authorized in KRS 247 is composed of 15 members: the Governor, the Commissioner of Agriculture, the Dean of the College of Agriculture at the University of Kentucky, and 12 members appointed by the Governor. The Board manages and administers the funds, buildings, grounds, and equipment of both the Kentucky Exposition Center and the Kentucky International Convention Center in Louisville. A president is appointed by the Board to manage these centers and Fair Board properties. Kentucky Exposition Center - The Kentucky Exposition Center provides facilities and services for conventions, trade shows, agricultural activities, athletic events, concerts, and cultural and commercial productions year-round. At this site, the State Fair Board produces its three major expositions during the year: the Kentucky State Fair, the National Farm Machinery Show, and the North American International Livestock Exposition. The Kentucky Exposition Center is a completely air-conditioned complex that includes 1.2 million square feet of exhibit and meeting space at ground level. It includes the 19,000-seat Freedom Hall Coliseum, identical East and West Exhibit Halls, East and West Exposition Wings, the South and North Wing Exposition facilities and Conference Centers, a smaller exposition pavilion, a 600-seat amphitheater, a 5,000-seat Livestock and Horse Show Arena, and a 37,000-seat stadium. Also serving the Kentucky Exposition Center are the adjacent Crowne Plaza, Hilton Gardens Inn, Cracker Barrel restaurant, Thortons gas station and Executive Bowl, all of which are long-term lessees of the State Fair Board. Kentucky International Convention Center - The Kentucky International Convention Center provides facilities and services for intermediate-sized conventions, trade shows, association events, concerts, and cultural and commercial productions year-round. This facility is an integral and interdependent part of the overall redevelopment of downtown Louisville by both government and private enterprises. The Center includes approximately 200,000 square feet of exhibit space, a 30,000 square foot ballroom, and nearly 70,000 square feet of meeting space along both sides of Third Street. The exhibit and meeting areas are linked by public concourses spanning Third Street.
298

The Center is served by the Hyatt and Cowger Parking Garages, which provide 1,300 enclosed parking spaces. The Cowger Garage also includes commercial space which is leased on a long-term basis. Policy The Executive Budget includes General Fund resources in the amount of $10,500,000 in fiscal year 2014 and $2,200,000 in fiscal year 2015 to cover the cumulative and ongoing revenue shortfall due to the loss of University of Louisville Basketball, loss of the Executive East, loss of the Six Flags Kentucky Kingdom lease and a decline in State Fair revenue. The Executive Budget reallocates debt service in the amount of $2,955,900 in fiscal year 2015 and $4,420,600 in fiscal year 2016 from the State Fair Board to the Finance and Administration Cabinet. The Executive Budget provides General Fund of $189,000 in fiscal year 2015 and $2,754,500 in fiscal year 2016 for debt service on new bonds included in the capital budget.

299

Tourism, Arts and Heritage Fish and Wildlife Resources Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Administration and Support Wildlife Management Fisheries Management Information and Education Law Enforcement TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

81,474,600 54,518,800 -21,648,800 114,344,600 10,547,300 18,657,200 29,204,500 143,549,100 35,743,600 11,534,100 2,803,400 2,046,100 52,127,200 33,470,000 18,657,200 52,127,200 5,675,000 15,132,600 10,823,400 6,809,900 13,686,300 52,127,200

80,874,600 56,078,800 -21,648,800 115,304,600 10,547,300 18,617,700 29,165,000 144,469,600 38,789,600 10,695,300 2,803,400 1,359,400 53,647,700 35,030,000 18,617,700 53,647,700 5,961,900 15,529,900 11,011,900 7,156,000 13,988,000 53,647,700

80,274,600 56,078,800 -21,648,800 114,704,600 10,547,300 17,630,400 28,177,700 142,882,300 40,886,300 9,795,200 1,001,100 977,800 52,660,400 35,030,000 17,630,400 52,660,400 6,324,000 15,167,800 10,024,600 7,156,000 13,988,000 52,660,400

80,874,600 56,078,800 -21,648,800 115,304,600 10,547,300 18,617,700 29,165,000 144,469,600 38,060,700 10,395,700 2,803,400 1,359,400 52,619,200 34,724,200 17,895,000 52,619,200 6,223,700 15,144,500 10,796,900 6,980,400 13,473,700 52,619,200

80,580,400 56,078,800 -21,648,800 115,010,400 11,270,000 17,630,400 28,900,400 143,910,800 38,907,000 9,286,000 1,001,100 977,800 50,171,900 33,800,600 16,371,300 50,171,900 6,417,600 14,306,600 9,551,400 6,791,500 13,104,800 50,171,900

The Department of Fish and Wildlife Resources, established by KRS Chapter 150, is responsible for the conservation and management of fish and wildlife resources in Kentucky. A Departmental Commissioner is appointed by the Fish and Wildlife Commission. The Commission, which is responsible for Department policy, is a nine member bipartisan body appointed by the Governor from a list of candidates provided by sportsmen and women in each of nine districts. Financial support of the Department is derived from the sale of hunting and fishing licenses, federal grants, interest income, fines and penalties assessed by the courts for violation of game and fish laws, and numerous other miscellaneous receipts. The Department owns approximately 130,000 acres of land in Kentucky which are used to further its program activities. The acreage includes the State Game Farm, approximately 80 major wildlife management areas, two warm water hatcheries, and three summer camps. An additional 700,000 plus acres of land and water are under lease or license by the Department for wildlife management activities. The Daniel Boone National Forest provides an additional 600,000 acres of land for public use. The Department consists of five program areas: Administration and Support, Wildlife Management, Fisheries Management, Information and Education, and Law Enforcement. Wildlife Management - The Wildlife Management program manages, develops, and maintains statewide game and non-game populations consistent with habitat availability on state owned lands, licensed wildlife management areas, and privately owned lands. Additionally, Wildlife Management conducts statewide surveys to determine the relative abundance of game and non-game wildlife, formulates hunting regulations based upon biological data and recreational demands, restores viable native wildlife species by restocking in suitable habitat, and evaluates the impact of land, water resource, and other construction projects on wildlife resources. Technical guidance is provided to private landowners for improvement of wildlife habitat. A fish and wildlife electronic information system is being maintained for use by state agencies that includes geographic information such as land types, vegetation conditions, and wildlife populations. Fisheries Management - The Fisheries Management program manages Kentucky fishery resources to provide optimum fishing opportunities for anglers through research, surveys, fish stocking, regulation, and technical biological guidance. Fishery biologists manage and develop fish populations and their associated habitats in major impoundments, streams, rivers, and 100,000 acres of
300

small lakes and ponds. In addition, technical guidance is provided to private pond owners. Research biologists provide support to management through evaluation of stocking and regulatory practices. The Environmental Section of the Fisheries Division manages the Kentucky Wetland Stream Mitigation Fund (referred to as the fees in-lieu of program) authorized by KRS 150.255 and by agreement with the U.S. Army Corps of Engineers. Corps 404 permits require mitigation when projects fill stream or wetland habitat. Funds are derived when 404 permit applicants can elect to pay a fee to satisfy mitigation requirements. These fees are used for identifying and restoring degraded streams with eroding banks and impacted habitat to stable conditions or restoring wetlands that have been drained. Information and Education - The Information and Education program is responsible for educating and informing the public about our wildlife resources and the importance of conservation, and the recreational opportunities the fish and wildlife resources provide. The information and education program is essential to provide the general and sporting public timely and accurate information directly and through the media. Additionally, the dissemination of regulatory information is necessary for the sporting public to comply with applicable laws and regulations. The program also provides classroom instruction on wildlife conservation, hunter education, aquatic education; operates the Salato Wildlife Education Center; and administers three summer camps for children. Law Enforcement - The Law Enforcement program enforces fish, wildlife, and boating laws. Officers assist other federal, state, and local agencies in enforcement of all criminal laws in the Commonwealth. Officers also provide assistance to the public during times of natural disasters such as floods, forest fires, and severe winter weather. Administration and Support - Three separate divisions are included in the Administration and Support program area. The Division of Administrative Services manages the day-to-day operations of the Department including maintaining accounting records, ensuring proper purchasing and inventory procedures, and administering hunting and fishing license sales and revenue collections. The Public Affairs Division facilitates public involvement in departmental policy and regulations. The Engineering Division provides the labor and technical engineering services required for small construction projects, such as building small bridges, buildings, boat ramps, and roads. In addition, Engineering is responsible for surveying all property owned or being purchased by the Department. Policy The Executive Budget includes Restricted Funds in fiscal year 2014-2015 and 2015-2016 for a $3,100 training incentive stipend for Conservation Officers. These funds are provided from the Fish and Game Fund.

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Tourism, Arts and Heritage Historical Society Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Oral History and Educational Outreach Research and Publications Museums Administration TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

5,696,700 14,700 5,711,400 430,100 445,700 875,800 587,900 587,900 7,175,100 4,128,500 2,558,600 70,000 6,757,100 5,711,400 457,800 587,900 6,757,100 148,800 95,000 21,000 6,492,300 6,757,100

8,970,500

7,730,500

5,734,800

5,961,400

8,970,500 418,000 458,000 876,000 537,100 537,100 10,383,600 4,744,800 2,605,400 120,000 2,500,000 9,970,200 8,970,500 462,600 537,100 9,970,200 148,800 95,000 71,000 9,655,400 9,970,200

7,730,500 413,400 477,500 890,900 363,700 363,700 8,985,100 4,894,700 2,551,600 120,000 1,000,000 8,566,300 7,730,500 472,100 363,700 8,566,300 148,800 95,000 71,000 8,251,500 8,566,300

5,734,800 418,000 458,000 876,000 537,100 537,100 7,147,900 4,083,100 2,576,600 70,000 6,729,700 5,734,800 457,800 537,100 6,729,700 148,800 95,000 21,000 6,464,900 6,729,700

5,961,400 418,200 477,500 895,700 363,700 363,700 7,220,800 4,052,500 2,522,400 70,000 138,000 6,782,900 5,961,400 457,800 363,700 6,782,900 148,800 95,000 21,000 6,518,100 6,782,900

The Kentucky Historical Society (KHS) engages people in the exploration of the Commonwealths diverse heritage. Through comprehensive and innovative services, interpretive programs, and stewardship, it provides connections to the past, perspective on the present, and inspiration for the future. The Kentucky Historical Societys statutory mandate, pursuant to KRS 171.311, is to collect and preserve for future generations materials and information regarding Kentuckys past; to disseminate knowledge and understanding of the states history; and to produce for people of all backgrounds an increased awareness of, and appreciation for, the Commonwealth and its heritage. The agency operates four divisions: Administration, Research and Publications, Museums, and Oral History and Educational Outreach. The Administration Division provides overall agency direction, planning, and management. It is comprised of the following functional teams: development, directors office, finance and human resources, and communications (which includes visitor services.) The Research and Publications Division includes the following functional teams: research and interpretation, museum collections and exhibitions, and the design studio. The research and interpretation team publishes the Societys two journals-The Register of the Kentucky Historical Society and Kentucky Ancestors-and assists with the publication of the quarterly newsletter, The Chronicle. The team also administers the historical marker program and the research fellows program. The museum collections and exhibitions team is responsible for the operation of the Historical Societys three museum facilities-the galleries located in the Thomas D. Clark Center for Kentucky History, the Kentucky Military History Museum, and the Old State Capitol. Since 1999, these facilities have hosted more than 1,000,000 visitors. The team is also responsible for the 200,000+ artifact collection. The design studio is responsible for museum exhibition design and production, along with the design and production of other KHS interpretive and promotional tools.

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The Museum Division is responsible for special collections and reference services. The Museum division operates the Martin F. Schmidt Research Library housed in the History Center, which effectively serves genealogists and other researchers. It also cares for an array of manuscripts, maps, 200,000-plus photographs, 8,000 oral history recordings, and rare books. The Oral History and Educational Outreach Division includes the following units: interpretive education, teacher/student outreach, and community services. Community Services consists of the local history program and the Cemetery Preservation program. Interpretive Education includes school tours, museum theatre, and other educational activities for adults and children. Since 1999, the KHS history campus has hosted more than 1,000,000 visitors. The primary outreach programs for students include the Kentucky Junior Historical Society and National History Day. Much of the KHS professional development for teachers is presented through Teaching American History grants awarded by the U.S. Department of Education. Policy The Executive Budget provides General Fund of $138,000 in fiscal year 2016 for debt service on new bonds included in the capital budget.

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Tourism, Arts and Heritage Arts Council Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Arts Council Support Grants Arts Marketing TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

2,797,700 5,400 2,803,100 626,300 179,800 806,100 6,600 753,200 759,800 4,369,000 1,291,400 593,600 1,829,500 3,714,500 2,803,100 151,600 759,800 3,714,500 1,512,400 1,934,100 268,000 3,714,500

3,141,900

3,241,700

2,767,300

2,796,200

3,141,900 654,500 179,800 834,300

3,241,700 682,700 179,800 862,500

2,767,300 654,500 179,800 -600,000 234,300

2,796,200 82,700 179,800 262,500

759,800 759,800 4,736,000 1,629,700 600,700 1,822,900 4,053,300 3,141,900 151,600 759,800 4,053,300 1,851,200 1,927,500 274,600 4,053,300

759,800 759,800 4,864,000 1,729,600 600,600 1,822,900 4,153,100 3,241,700 151,600 759,800 4,153,100 1,951,000 1,927,500 274,600 4,153,100

759,800 759,800 3,761,400 1,392,700 568,100 1,717,900 3,678,700 2,767,300 151,600 759,800 3,678,700 1,621,800 1,822,500 234,400 3,678,700

759,800 759,800 3,818,500 1,421,700 568,000 1,717,900 3,707,600 2,796,200 151,600 759,800 3,707,600 1,650,700 1,822,500 234,400 3,707,600

The Kentucky Arts Councils legislated purpose is to develop and promote a broadly conceived state policy of support for the arts in Kentucky, pursuant to KRS 153.210 to 153.235. As the official state arts agency, the Kentucky Arts Council (KAC) is the sole Kentucky state agency designated to receive partnership funding from the National Endowment for the Arts for any programs related to the arts. All of the KACs programs, services, initiatives, events and activities support its mission to create opportunities for the people of Kentucky to value, participate in, and benefit from the arts. The Kentucky Arts Council manages a multitude of programs, activities and services for the Commonwealth by working in partnership with arts organizations, educational facilities, communities, local government, and individual artists. The work of the KAC encourages the growth and stability of the arts across the state, the promotion of cultural tourism and economic development, the enhancement of quality of life in Kentucky, and the provision of strong arts education programs. Major program areas include community arts development, arts infrastructure capacity building, individual artists, folk arts, arts education, and arts marketing. The KAC offers an extensive array of technical assistance and training programs, public events, information services and resources, business development services, sales and performance venues, and grant programs to help ensure that the arts community in Kentucky is strong and viable. The grant funds invested by the KAC across the Commonwealth serves as an important catalyst in community building, and leverages significant funding from other sources.

304

Tourism, Arts and Heritage Heritage Council Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation State Salary and Compensation Allocation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Balance Forward Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Kentucky Heritage Council TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

729,200 2,400 731,600 115,200 251,000 366,200 70,900 701,100 772,000 1,869,800 1,457,300 214,000 81,400 1,752,700 731,600 249,100 772,000 1,752,700 1,752,700 1,752,700

957,000

999,600

736,900

747,300

957,000 117,100 251,000 368,100

999,600 119,000 251,000 370,000

736,900 117,100 251,000 368,100

747,300 106,000 251,000 357,000 61,300 920,700 982,000 2,086,300 1,594,400 163,400 80,000 1,837,800 747,300 265,300 825,200 1,837,800 1,837,800 1,837,800

875,800 875,800 2,200,900 1,707,600 294,300 80,000 2,081,900 957,000 249,100 875,800 2,081,900 2,081,900 2,081,900

920,700 920,700 2,290,300 1,795,100 294,300 80,000 2,169,400 1,004,700 249,100 915,600 2,169,400 2,169,400 2,169,400

875,800 875,800 1,980,800 1,570,100 163,400 80,000 1,813,500 736,900 262,100 814,500 1,813,500 1,813,500 1,813,500

The Kentucky Heritage Council (the State Historic Preservation Office) administers a comprehensive state historic preservation program with structure in three areas; The Site Protection Program, The Site Identification and Evaluation Program and The Site Development Program. The Council administers national historic preservation activities in Kentucky, monitors projects and distributes grants involving federal funds, offers programs and services involving all aspects of historic preservation, and provides technical assistance to local governments, the public, and other agencies. Major program activities include surveying historic sites, nominating sites to the National Register of Historic Places, administering the Kentucky Main Street program in partnership with Renaissance on Main, overseeing federal and state historic preservation tax credit programs and restoration grants programs, conducting archaeological investigations, and reviewing all federally funded, licensed, and permitted projects. Attached to the Heritage Council for administration and programmatic services are the African American Heritage Commission, Native American Heritage Commission, Military Heritage Commission, and the Kentucky Historic Preservation Review Board. The Kentucky Heritage Council is administered in accordance with KRS 171.3801.

305

Tourism, Arts and Heritage Kentucky Center for the Arts Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Kentucky Center for the Arts Governor's School for the Arts TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

802,400 802,400 802,400 138,800 236,000 427,600 802,400 802,400 802,400 374,800 427,600 802,400

1,626,200 1,626,200 1,626,200 185,300 446,300 881,600 113,000 1,626,200 1,626,200 1,626,200 744,600 881,600 1,626,200

1,739,900 1,739,900 1,739,900 100,300 446,300 895,300 298,000 1,739,900 1,739,900 1,739,900 844,600 895,300 1,739,900

1,225,200 1,225,200 1,225,200 100,300 220,800 807,600 96,500 1,225,200 1,225,200 1,225,200 417,600 807,600 1,225,200

1,321,700 1,321,700 1,321,700 100,300 220,800 807,600 193,000 1,321,700 1,321,700 1,321,700 514,100 807,600 1,321,700

Kentucky Center for the Arts (The Kentucky Center) is the Commonwealths premier performing arts center. The Kentucky Center serves over 400,000 people each year. It is the performance home of the states largest orchestra, opera, ballet, Broadway and childrens theatre productions. In addition, The Kentucky Center presents a variety of national and international artists. The Kentucky Center houses three theaters: the 2,406-seat Robert S. Whitney Hall, the 619-seat Moritz von Bomhard Theater, and the 139-seat Boyd Martin Experimental Theater. The facility features a multi-tiered lobby, rehearsal halls, and spaces for social and business events. The Kentucky Center provides a wide range of nationally recognized educational programs, including professional development for teachers, partnerships with schools and community centers, and opportunities for artists to work in classrooms. The Center is also a leader in providing award-winning access services that make the theater experience possible for patrons with disabilities. The Kentucky Center, in partnership with the Kentucky Arts Council, provides access and technical consulting services for arts and cultural organizations across Kentucky. The Kentucky Centers management also provides theatrical consulting services throughout the state. The Governors School for the Arts (GSA) is a model program, recognized nationally by the Presidents Committee on the Arts and Humanities and the National Endowment of the Arts. GSA was established in 1987 to address the needs of an underserved Kentucky population: Kentuckys artistically gifted and talented young people. Whereas opportunities for advanced academic work has been widely available to Kentuckys academically gifted students, opportunities to pursue advanced work in the arts have been considerably more limited, particularly for geographically and/or economically marginalized students. GSA not only plays a vital role in preparing students for their pursuit of careers in the arts, but also prepares them for all facets of professional life requiring leadership, critical thinking, exceptional communication skills and understanding of the multi-cultural world. GSA is a model program, recognized nationally by the Presidents Committee on the Arts & Humanities and the National Endowment for the Arts. The school currently serves 200 students. Policy The Executive Budget includes General Fund support in the amount of $380,000 in fiscal year 2015 and fiscal year 2016 for an additional 100 students to attend the Governors School for the Arts. The Executive Budget includes General Fund support in the amount of $96,500 in fiscal year 2015 and $193,000 in fiscal year 2016 for debt service on new bonds included in the capital budget.

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Transportation

Transportation Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Continuing Approp.-General Fund Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds Road Fund Regular Appropriation Surplus Expenditure Plan Other Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT General Administration and Support Aviation Debt Service Highways Public Transportation Revenue Sharing Vehicle Regulation TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

5,678,200 299,400 5,977,600 165,118,300 130,730,800 1,250,896,000 -9,137,300 1,537,607,800 33,000 617,385,300 2,500 617,420,800 1,461,496,100 17,718,000 -397,700 1,478,816,400 3,639,822,600 449,741,700 289,681,400 294,384,200 209,686,300 1,620,100 2,342,378,300 3,587,492,000 5,977,600 1,511,222,500 617,420,800 1,452,871,100 3,587,492,000 70,229,500 18,611,300 142,216,300 2,858,936,000 49,538,800 406,604,500 41,355,600 3,587,492,000

8,200,000 8,200,000 28,022,800 127,561,700 -55,000 -1,460,500 154,069,000

8,246,200 8,246,200 20,853,100 125,043,800 -55,000 -1,464,800 144,377,100

5,135,300 5,135,300 26,385,300 127,337,400 246,597,300 -14,310,500 386,009,500

6,023,300 6,023,300 20,329,600 124,006,400 99,945,000 -14,064,800 230,216,200

727,412,000 727,412,000 1,529,851,300

730,234,700 730,234,700 1,534,142,300

726,762,100 726,762,100 1,528,721,200

729,132,800 729,132,800 1,516,387,200

1,529,851,300 2,419,532,300 491,265,100 324,347,500 266,932,800 222,691,300 4,788,100 1,085,178,600 2,395,203,400 8,200,000 133,215,900 727,412,000 1,526,375,500 2,395,203,400 76,886,300 14,056,300 150,559,500 1,673,866,900 32,459,600 397,590,900 49,783,900 2,395,203,400

1,534,142,300 2,417,000,300 511,130,300 313,321,200 262,526,200 228,120,200 4,731,900 1,084,343,200 2,404,173,000 8,246,200 135,025,600 730,234,700 1,530,666,500 2,404,173,000 78,573,200 14,146,400 159,043,900 1,679,620,100 32,785,400 389,212,800 50,791,200 2,404,173,000

1,528,721,200 2,646,628,100 468,895,400 290,948,700 271,858,900 232,555,900 1,645,100 1,356,918,700 2,622,822,700 5,135,300 365,679,900 726,762,100 1,525,245,400 2,622,822,700 72,868,300 8,385,700 150,559,500 1,897,399,700 30,744,900 419,274,000 43,590,600 2,622,822,700

1,516,387,200 2,481,759,500 475,988,200 292,693,300 272,555,500 273,318,600 1,587,100 1,152,946,200 2,469,088,900 6,023,300 221,021,400 729,132,800 1,512,911,400 2,469,088,900 74,012,900 8,873,700 166,911,900 1,723,135,200 31,082,100 420,059,400 45,013,700 2,469,088,900

The Transportation Cabinet is responsible for maintaining and improving transportation services in the Commonwealth. All modes of transportation are addressed by the Cabinet, including air transportation, railroads, waterways, public transit, and highways. The Secretary of Transportation, who is appointed by the Governor, heads the organization. The duties and responsibilities of the Cabinet are found in Titles XV and XVI of the Kentucky Revised Statutes. The Cabinet receives funding from the state Road Fund, proceeds from highway bonds issued by the Kentucky Turnpike Authority, and federal aid apportionments for highways. Other revenue sources include agency receipts, non-highway federal aid, the state General Fund, and a federal fund leveraging mechanism titled Grant Anticipation Revenue Vehicle (GARVEE) bonds. The revenue
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components of the Road Fund are the motor fuels tax, motor vehicle usage tax, license and privilege taxes, interest income, and miscellaneous departmental fees, permits, and sales. Seven major budget units comprise the Transportation Cabinet: General Administration and Support, Aviation, Public Transportation, Revenue Sharing, Highways, Vehicle Regulation, and Debt Service. Organizationally, the agency is divided into four departments: Aviation, Vehicle Regulation, Rural and Municipal Aid, and Highways. Each department is headed by a commissioner directly responsible to the Secretary. Other organizational units include the Office of Support Services, the Office of Transportation Delivery, the Office of Audits, the Office of Human Resource Management, the Office of Information Technology, the Office of Legal Services, the Office of Public Affairs, the Office of Budget and Fiscal Management, the Office for Civil Rights and Small Business Development, and the Office of Inspector General. These units report to the Office of the Secretary. The following offices report to the State Highway Engineer in the Department of Highways: the Office of Project Development, the Office of Project Delivery and Preservation, the Office of Highway Safety, and Highway District Offices One through Twelve. The Office of Local Programs and the Office of Rural and Secondary Roads report to the Commissioner of Rural and Municipal Aid. The Transportation Cabinet has its origin as an agency of the Commonwealth of Kentucky in 1912 when the General Assembly established the Department of Highways. Legislation in 1974 created the Department of Transportation by consolidating the Departments of Highways, Motor Transportation, and Aeronautics, plus certain transportation-related functions of the Department of Public Safety and the Department of Revenue. The 1982 General Assembly established the Transportation Cabinet as the successor to the Department of Transportation, and it assumed all of the duties formerly associated with the Department. Policy The 2009 General Assembly amended KRS Chapter 48 to require the General Assembly to pass a separate bill for the Transportation Cabinet budget. In addition, the General Assembly is required to pass the Biennial Highway Construction Plan as a separate bill and the last four years of the six-year road plan as a joint resolution.

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Transportation General Administration and Support Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Total Restricted Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Office of the Secretary Office of Public Affairs Inspector General Budget & Fiscal Management Legal Services Office of Human Resource Management Office of Support Services Technology Office of Civil Rights & Small Business Devlpmnt Office of Audits TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

500,000 500,000 108,500 1,984,400 2,092,900 67,740,400 67,740,400 70,333,300 26,935,500 35,894,000 1,400 6,800,000 541,600 57,000 70,229,500 500,000 1,989,100 67,740,400 70,229,500 592,000 707,400 873,700 3,396,400 5,272,500 3,831,500 22,555,600 28,045,000 899,600 4,055,800 70,229,500

500,000 500,000 103,800 2,079,500 2,183,300 74,302,100 74,302,100 76,985,400 31,596,800 37,864,500 1,400 6,800,000 566,600 57,000 76,886,300 500,000 2,084,200 74,302,100 76,886,300 660,800 778,000 1,259,600 3,866,200 5,675,300 4,416,000 23,572,500 31,137,500 1,141,300 4,379,100 76,886,300

500,000 500,000 99,100 2,144,300 2,243,400 75,924,200 75,924,200 78,667,600 33,222,500 37,983,700 1,400 6,800,000 508,600 57,000 78,573,200 500,000 2,149,000 75,924,200 78,573,200 705,100 823,600 1,307,000 4,079,900 5,882,900 4,620,100 23,922,400 31,427,500 1,200,900 4,603,800 78,573,200 103,800 1,984,400 2,088,200 70,879,200 70,879,200 72,967,400 28,820,900 36,815,700 1,400 6,606,700 566,600 57,000 72,868,300 99,100 1,984,400 2,083,500 72,023,800 72,023,800 74,107,300 29,332,700 36,928,800 1,400 7,184,400 508,600 57,000 74,012,900

1,989,100 70,879,200 72,868,300 148,700 763,800 907,000 3,650,700 5,616,500 4,046,700 22,698,400 29,743,100 956,200 4,337,200 72,868,300

1,989,100 72,023,800 74,012,900 162,100 777,800 915,900 3,718,600 5,702,900 4,114,300 23,430,600 29,805,300 971,400 4,414,000 74,012,900

The General Administration and Support appropriation unit provides management and administrative services and ensures efficient day-to-day operations. This unit includes the Office of Secretary and nine other offices. The Office of Budget and Fiscal Management, the Office for Civil Rights and Small Business Development, the Office of Legal Services, the Office of Public Affairs, the Office of Inspector General, the Office of Human Resource Management, the Office of Support Services, the Office of Audits, and the Office of Information Technology provide leadership, management, and staff support to the Transportation Cabinet and provide the Secretary with the managerial tools necessary to operate the Cabinet. The Office of the Secretary is the central point of contact with the general public and external organizations and serves as the main policymaking arm of the Cabinet. The Office of Budget and Fiscal Management and the Office of Audits manage the planning and use of the Cabinet's financial resources. The Office for Civil Rights and Small Business Development conducts programs to provide women and minorities an equal opportunity for employment and to compete for highway construction contracts. The Office of Legal Services provides the agency with the required legal representation before administrative boards and all levels of the court system. The Office of Public Affairs is responsible for the Cabinet's communications with employees, the news media, and the general public. The Office of Inspector General exists to provide the Cabinet a mechanism for both employees and Kentuckians to report incidences
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of wrongdoing regarding the Cabinets service. The Office of Human Resource Management is responsible for the Cabinets human resources policies and personnel utilization and development programs. The Office of Support Services provides oversight and management of the Cabinets statewide facilities, including all ongoing capital projects not associated with highway construction. Beginning in April 2013, the Office of Support Services began providing production print services for the Executive Branch through its Division of Graphic Design and Printing, a function previously performed by the Commonwealth Office of Technology. The Office of Information Technology is responsible for the technological application development and system support functions for the Cabinet.

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Transportation Aviation Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Balance Forward Current Receipts Non-Revenue Receipts Total Federal Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Commonwealth Aviation Capital City Airport Aviation Administration TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,021,800 1,021,800 6,604,200 11,804,600 -14,800 -3,464,800 14,929,200 33,000 1,025,100 2,500 1,060,600 2,771,100 2,771,100 18,760,900 2,589,800 1,641,800 12,322,200 1,904,800 152,700 18,611,300 437,700 11,804,600 -1,460,500 10,781,800

1,068,000 1,068,000 329,500 11,804,600 -1,464,800 10,669,300 149,600 11,804,600 -6,960,500 4,993,700

456,000 456,000 81,700 11,804,600 -6,964,800 4,921,500

611,700 611,700 1,970,500 1,970,500 14,385,800 3,173,900 1,316,800 7,442,400 1,970,500 152,700 14,056,300 1,021,800 10,452,300 611,700 1,970,500 14,056,300 9,222,700 2,863,100 1,970,500 14,056,300

611,700 611,700 1,974,800 1,974,800 14,323,800 3,346,600 1,317,700 7,354,600 1,974,800 152,700 14,146,400 1,068,000 10,491,900 611,700 1,974,800 14,146,400 9,218,400 2,953,200 1,974,800 14,146,400

611,700 611,700 2,862,000 2,862,000 8,467,400 2,860,000 1,388,600 2,123,000 1,894,500 119,600 8,385,700

611,700 611,700 2,884,500 2,884,500 8,873,700 2,913,600 1,389,500 2,096,200 2,354,800 119,600 8,873,700 456,000 4,921,500 611,700 2,884,500 8,873,700 4,174,400 2,800,500 1,898,800 8,873,700

14,779,600 1,060,600 2,771,100 18,611,300 13,874,600 2,831,900 1,904,800 18,611,300

4,912,000 611,700 2,862,000 8,385,700 3,722,700 2,768,500 1,894,500 8,385,700

In accordance with KRS Chapter 183, the Transportation Cabinet supports the Commonwealths Aviation program. There are two divisions within the Department of Aviation: Commonwealth Aviation and Capital City Airport. The Commonwealth Aviation division is charged with the Air Regulatory program and the Airport Development program. The Air Regulatory program is responsible for inspecting and determining the safety and efficiency of all of the Commonwealths public use airport and heliport facilities. Pursuant to KRS 183.861, the Kentucky Airport Zoning Commission protects the navigable airspace within the state by evaluating applications for construction, issuing permits, and maintaining updated airport zoning maps. The Commission is attached to the Air Regulatory program for administrative purposes. The Airport Development program provides for administration, planning and management of airport construction, and maintenance of local airports. Airport Development also provides technical and financial assistance to the states 59 public use airports, including updating and distributing the state aeronautical charts and airport directories. The Capital City Airport is a public use airport located in Frankfort, Kentucky. Capital City Airport is home to 81 aircraft, including the fleet owned and operated by state government and the National Guard located in Frankfort.

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Policy The Executive Budget provides General Fund in the amount of $456,000 in fiscal year 2016 for debt service on new bonds included in the capital budget. The Executive Budget suspends the provisions of KRS 183.525 and transfers $468,000 in fiscal year 2015 and $468,000 in fiscal year 2016 from the Kentucky Aviation Economic Development Fund to the General Fund to support General Fund supported aviation bonds authorized by the 2005 General Assembly. The Executive Budget suspends the provisions of KRS 183.525 and transfers $992,500 in fiscal year 2015 and $996,800 in fiscal year 2016 from the Kentucky Aviation Economic Development Fund to the Road Fund to support Road Fund supported aviation bonds authorized by the 2008 General Assembly.

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Transportation Debt Service Revised FY 2014 SOURCE OF FUNDS Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Debt Service TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Economic Development Lease Rental TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

168,161,600 168,161,600 168,161,600 142,216,300 142,216,300 142,216,300 142,216,300 142,216,300 142,216,300

154,035,300 154,035,300 154,035,300 150,559,500 150,559,500 150,559,500 150,559,500 150,559,500 150,559,500

162,519,700 162,519,700 162,519,700 159,043,900 159,043,900 159,043,900 159,043,900 159,043,900 159,043,900

154,035,300 154,035,300 154,035,300 150,559,500 150,559,500 150,559,500 150,559,500 150,559,500 150,559,500

170,387,700 170,387,700 170,387,700 166,911,900 166,911,900 166,911,900 166,911,900 166,911,900 166,911,900

The Debt Service program is the budget entity through which lease rental payments are made on the revenue bonds the Commonwealth has issued to finance major highway construction projects. KRS Chapter 175 authorizes the Turnpike Authority of Kentucky to issue revenue bonds to construct, maintain, repair, and operate designated roads of the Toll Road System, the Resource Recovery Road System, and the Economic Development Road System. The first of these systems, the Toll Road System, was constructed during the mid-1960s and early 1970s. All of the Toll Road bonds that were issued to construct the states parkways are now retired. The Resource Recovery Road System began in the late 1970s, and most of the systems roads were built during the 1980s. The most significant project was KY 80. The final lease rental payment for the Resource Recovery Road bonds was made in fiscal year 2008-2009. The Economic Development Road System was established and funded through a series of bond issues. The first was a $300 million issue sold in 1984. The second was a relatively small sale of $36.6 million in 1987. The third and largest was a $600 million program which was implemented in bond sales during 1990, 1993, and 1995. The projects constructed with the $600 million series were designated as "Revitalization Projects" and are now complete. The fourth issue was authorized by the 1998 General Assembly in the amount of $200 million. The bonds were sold in 1999 and projects funded with those proceeds are now complete. The 2005 General Assembly authorized the fifth series of Economic Development Road bonds in the amount of $450 million. The bond projects associated with the 2005 series were split to support three initiatives: $300 million for projects in the adopted Six-Year Highway Plan; $100 million to fund County Road Aid projects; and $50 million to support Municipal Road Aid projects. The 2006 General Assembly authorized an additional $350 million in Economic Development Road Bonds. The entire 2006 series was authorized to support projects in the adopted Six-Year Highway Plan. The seventh issue was authorized by the 2008 General Assembly in the amount of $50 million for projects associated with Base Re-alignment and Closure (BRAC) activities in and around Fort Knox. The 2009 General Assembly authorized bonds in the amount of $400 million to support projects in the adopted Six-Year Highway Plan. The 2010 Special Session of the General Assembly authorized $112 million in BRAC bonds to complete the projects in Fort Knox and $400 million in bonds for projects included in the Biennial Highway Construction Plan. All but $200 million of the $400 million in bonds authorized by the 2010 Special Session of the General Assembly have been issued. Through lease agreements with the Turnpike Authority of Kentucky and the Asset and Liability Commission, the Transportation Cabinet provides funds to pay the Toll Road, Resource Recovery Road, and the Economic Development Road revenue bonds. In the Debt Service program, funds are reserved exclusively for semi-annual lease rental payments to meet the principal and interest requirements of these outstanding bonds, along with any administrative costs of the Turnpike Authority. Policy The American Recovery and Reinvestment Act of 2009 created a new debt instrument for tax-exempt municipal bond issuers, called Build America Bonds. Municipal bond issuers could issue Build America Bonds for eligible tax-exempt purposes on a permanent basis only. The Commonwealth was eligible for a subsidy for bonds issued as Build America Bonds prior to December 31, 2010. Subsidies from the Build America Bonds shall lapse to the Road Fund. The amount of the Road Fund lapse is $3,475,800 in each fiscal year.

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Transportation Highways Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds Road Fund Regular Appropriation Surplus Expenditure Plan Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Research Construction Maintenance Engineering Administration Planning Highway Operations Equipment Services Highway Safety TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

216,000 216,000 148,814,900 99,344,000 1,251,000,000 1,499,158,900 570,069,000 570,069,000 791,578,000 17,718,000 809,296,000 2,878,523,900 398,043,000 232,130,900 10,744,300 53,980,700 1,078,500 2,162,958,600 2,858,936,000 19,587,900 94,749,600 114,337,500 698,590,300 698,590,300 873,577,900 873,577,900 1,686,505,700 429,592,600 263,638,100 10,744,300 58,477,300 1,078,500 910,336,100 1,673,866,900 12,638,800 92,030,800 104,669,600 701,069,200 701,069,200 875,302,100 875,302,100 1,681,040,900 446,398,900 252,585,000 10,744,300 55,415,700 1,078,500 913,397,700 1,679,620,100 19,587,900 94,642,100 250,000,000 364,230,000 697,940,400 697,940,400 849,901,500 849,901,500 1,912,287,900 412,454,600 232,689,800 10,744,300 68,693,200 1,078,500 1,171,739,300 1,897,399,700 216,000 349,341,800 697,940,400 849,901,500 1,897,399,700 4,817,400 1,404,938,600 358,410,900 14,216,600 15,220,100 30,206,100 59,083,300 10,506,700 1,897,399,700

648,000 648,000 14,888,200 91,299,200 100,000,000 206,187,400 699,967,300 699,967,300 822,567,800 822,567,800 1,729,370,500 418,580,400 233,415,900 10,744,300 92,063,700 1,078,500 967,252,400 1,723,135,200 648,000 199,952,100 699,967,300 822,567,800 1,723,135,200 4,817,400 1,225,375,300 362,439,100 14,497,600 15,230,300 30,774,400 59,408,500 10,592,600 1,723,135,200

1,479,571,000 570,069,000 809,296,000 2,858,936,000 4,817,400 2,395,652,200 326,900,400 13,338,100 15,204,900 28,238,300 64,536,300 10,248,400 2,858,936,000

101,698,700 698,590,300 873,577,900 1,673,866,900 4,817,400 1,153,638,000 379,492,400 15,597,800 15,813,500 32,243,600 61,474,200 10,790,000 1,673,866,900

103,248,800 701,069,200 875,302,100 1,679,620,100 4,817,400 1,157,718,800 377,170,600 16,387,600 16,232,600 33,915,900 62,321,300 11,055,900 1,679,620,100

The Highways appropriation unit is the largest program in the Transportation Cabinet. There are eight programs in the Department of Highways: Research, Construction, Maintenance, Engineering Administration, Highway Planning, Highway Operations, Highway Safety and Equipment Services. The Construction program is divided into five subprograms: Bond Funded Construction, State Funded Construction, Federal Funded Construction, Toll Bond Funded Construction, and the TIFIA Loan program. The Department of Highways is responsible for the construction, reconstruction, and maintenance of the State Primary Road System through authority granted by KRS 177.020. The Department is headed by a commissioner who is appointed by the Governor on recommendation of the Secretary of Transportation. This agency administers all of the programs within the Highways appropriation unit.

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Combined travel by all motor vehicles over Kentuckys 78,000 miles of roads and streets equals over 47.6 billion vehicle-miles. The State Primary Road System carries about 85 percent of all traffic. This network consists of approximately 27,500 miles of interstate highways, resource recovery roads, parkways, economic development roads, primary, secondary, rural, and unclassified roads, and approximately 9,000 state maintained bridges. Kentucky's interstate system, consisting of approximately 800 miles, carries 27 percent of all travel.

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Transportation Highways Research Revised FY 2014 SOURCE OF FUNDS Federal Funds Current Receipts Total Federal Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Federal Funds Road Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

3,383,400 3,383,400 1,434,000 1,434,000 4,817,400 4,527,400 290,000 4,817,400 3,383,400 1,434,000 4,817,400

3,383,400 3,383,400 1,434,000 1,434,000 4,817,400 4,527,400 290,000 4,817,400 3,383,400 1,434,000 4,817,400

3,383,400 3,383,400 1,434,000 1,434,000 4,817,400 4,527,400 290,000 4,817,400 3,383,400 1,434,000 4,817,400

3,383,400 3,383,400 1,434,000 1,434,000 4,817,400 4,527,400 290,000 4,817,400 3,383,400 1,434,000 4,817,400

3,383,400 3,383,400 1,434,000 1,434,000 4,817,400 4,527,400 290,000 4,817,400 3,383,400 1,434,000 4,817,400

The Research program is primarily a problem-solving service available to the Department of Highways. The program provides studies of traffic safety and operations, pavement mechanics and performance, materials characteristics and behavior, and transportation policies. The Research function is mandated by the Commonwealth's use of federal highway funds in accordance with Title 23 of the Federal Code which requires the use of 25 percent of funds for highway research and development. The Transportation Cabinet partners with the University of Kentucky Transportation Center to carry out research functions. The partnership conducts workshops on highway maintenance and management; traffic engineering, computerized signalization, signal technician certification, incident management/traffic mitigation, and provides on-demand technical assistance. The program maintains a lending library, including both written and audio-visual materials. The program also publishes a quarterly newsletter. The Research program funds the Kentucky Transportation Center at one-tenth of one percent of the motor fuels tax collections, not to exceed $190,000 per year from the State Road Fund pursuant to KRS 177.320(4). An additional $100,000 per year from the Revenue Sharing appropriation unit is transferred to the Kentucky Transportation Center.

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Transportation Highways Construction Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Total General Fund Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds Road Fund Regular Appropriation Surplus Expenditure Plan Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Bond Funded Construction State Funded Construction Federal Funded Construction Toll Bond Funded Construction TIFIA Loan TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

216,000 216,000 135,215,400 38,156,100 1,251,000,000 1,424,371,500 548,652,900 548,652,900 417,941,500 17,718,000 435,659,500 2,408,683,900 193,262,400 35,293,200 10,744,300 53,980,700 2,102,371,600 2,395,652,200 13,031,700 32,811,700 45,843,400 676,524,300 676,524,300 440,584,100 440,584,100 1,162,951,800 192,961,200 35,280,100 10,744,300 58,477,300 856,175,100 1,153,638,000 9,313,800 29,339,600 38,653,400 678,551,200 678,551,200 441,935,000 441,935,000 1,159,139,600 197,042,000 35,280,100 10,744,300 55,415,700 859,236,700 1,157,718,800 13,031,700 32,704,200 250,000,000 295,735,900 676,524,300 676,524,300 441,634,700 441,634,700 1,414,110,900 192,642,700 35,280,100 10,744,300 68,693,200 1,097,578,300 1,404,938,600 216,000 286,563,600 676,524,300 441,634,700 1,404,938,600 11,335,000 405,564,200 738,039,400 250,000,000 1,153,638,000 1,157,718,800 1,404,938,600

648,000 648,000 9,172,300 28,608,000 100,000,000 137,780,300 678,551,200 678,551,200 409,327,400 409,327,400 1,226,306,900 194,195,800 35,280,100 10,744,300 92,063,700 893,091,400 1,225,375,300 648,000 136,848,700 678,551,200 409,327,400 1,225,375,300 11,620,100 373,698,500 740,056,700 100,000,000 1,225,375,300

1,411,339,800 548,652,900 435,659,500 2,395,652,200 1,101,111,200 399,620,400 609,920,600 185,000,000 100,000,000 2,395,652,200

36,529,600 676,524,300 440,584,100 1,153,638,000 11,301,000 404,309,000 738,028,000

37,232,600 678,551,200 441,935,000 1,157,718,800 12,004,000 405,494,600 740,220,200

The Construction program is the largest single funding component within the Highways appropriation unit. It encompasses all construction and major reconstruction of roadways in the State Primary Road System. The Construction Program is divided into five sub-programs: Bond Funded Construction, State Funded Construction, Federal Funded Construction, Toll Bond Funded Construction, and the TIFIA Loan program. KRS 45.750(3) exempts road projects, including associated equipment and land acquisition purchases, from the capital construction statutes outlined in KRS Chapter 45.760 - 45.810. Several different road systems constructed in the Commonwealth over the last 40 years have used Bond Funded Construction. General obligation bonds were sold to finance the original construction of the Interstate System. The Turnpike Authority of Kentucky sold revenue bonds to fund construction of the toll road system that crisscrosses the state. Tolls on these parkways were removed once the bonds were paid. Currently no tolls exist on Kentucky parkways. Resource recovery bonds were sold in the late 1970s for construction of the Resource Recovery Road System, a network of highways over which coal resources could be efficiently hauled. The Turnpike Authority received authorization to sell bonds in 1984, 1987, 1990, 1993, 1995, 1999, 2005, 2006, 2008, 2009, and 2010 for projects identified as part of the Economic Development Road System. The Authority received authorization in 2008 and 2010 to issue bonds to support road projects specifically related to the Base Re-alignment and Closure (BRAC) activities in and

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around Fort Knox. All of the roads constructed using proceeds from Turnpike Authority bonds are built by the Cabinet on behalf of the Authority, and then are leased to the Cabinet until the bonds are retired. At that time they are transferred to the Cabinet and become a part of the state highway system. The State Funded Construction program provides for many highway improvement needs, emergency needs, industrial access roads, parkway and primary road pavement rehabilitation, and other projects for which federal funding is not available. The state resurfacing program is a part of this sub-program area and provides for resurfacing of roads in the state maintained highway system. The Highway Construction Contingency account, authorized in KRS 45.247, is also included in the State-Funded Construction program. The Federal Construction program addresses the major construction, reconstruction, and rehabilitation needs for nearly 12,000 miles of interstate, primary, secondary, urban systems, and Appalachian routes across the state. This funding is provided under Titles 23 and 40 of the US Code. From fiscal year 2005 to fiscal year 2008, $440 million in Grant Anticipation Revenue Vehicle (GARVEE) bonds were appropriated to support interstate projects along I-64, I-75, and I-65. In addition, GARVEE bonds totaling $336 million were authorized in 2008 and 2010 for the Louisville Bridges project which is estimated to cost over $2.6 billion. The 2010 Special Session of the General Assembly authorized $330 million in GARVEE bonds for the US-68/KY-80 Lake Barkley and Kentucky Lake Bridges Project. For display purposes, the GARVEE bonds are located in the Bond Funded Construction program. However, the debt service to support the GARVEE bonds is located in the Federal Fund Construction program. House Bill 4 during the 2009 Special Session of the General Assembly created the Kentucky Public Transportation Infrastructure Authority (KPTIA) to facilitate the construction, financing, operation, and oversight of mega-projects. According to the Federal Highway Administration, mega-projects are projects that have a total cost of $500 million or more. The Authority has the power to finance mega-projects through the use of tolls, funds from any GARVEE, funds appropriated by the state or federal government, and any other funds pledged for their purpose. The Toll Bond Funded program and the TIFIA Loan program provide funding for one of KPTIAs projects, the Louisville-Southern Indiana Ohio River Bridges mega project . The Commonwealth is working jointly with the state of Indiana on this $2.6 billion project, which consists of two bridges - the Downtown I-65 bridge and the East End I-265 bridge. Kentucky is responsible for the completion of the downtown bridge and is financing a portion of the total cost with toll bonds and a TIFIA loan backed by the federal government. The American Recovery and Reinvestment Act of 2009 provided $421.1 million in additional federal funds for use on federal-aid eligible highways. Unlike traditional federal highway funds, which the Commonwealth matches with toll credits, these funds required no state match and were programmed to support shovel-ready projects. Of the total award amount, $380.4 million flowed through the Transportation Cabinet, with the balance flowing directly to four local Metropolitan Planning Organizations: Northern Kentucky, Henderson, Lexington and Louisville. The funds available to the Cabinet were split between transportation enhancement projects ($12.6 million) and infrastructure investment projects ($367.8 million). These additional funds were made available in the spring of 2009 and must be spent by September 30, 2015. Policy The Executive Budget provides General Fund in the amount of $216,000 in fiscal year 2015 and $648,000 in fiscal year 2016 for debt service on new bonds included in the capital budget. The Executive Budget authorizes the Secretary of Transportation to continue the Cash Management program, formerly known as the Pre-financing Road Projects program, authorized by the Appropriations Act since the 2000-2002 biennium. The Cash Management program allows the Cabinet to expedite projects in the Biennial Highway Construction Plan by managing Road Fund cash, while ensuring that expenditures remain within enacted appropriations. A current year appropriation in the amount of $100,000,000 in Restricted Funds is included for the Transportation Infrastructure Finance and Innovation Act (TIFIA) Loan Program. A portion of the Louisville-Southern Indiana Ohio River Bridges project is being funded from a TIFIA loan backed by the federal government.

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Transportation Highways Maintenance Revised FY 2014 SOURCE OF FUNDS Restricted Funds Current Receipts Total Restricted Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Capital Outlay # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds Road Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

3,687,900 3,687,900 323,212,500 323,212,500 326,900,400 136,053,000 160,212,100 300,000 30,335,300 326,900,400 3,687,900 323,212,500 326,900,400

3,687,900 3,687,900 375,804,500 375,804,500 379,492,400 158,252,500 190,604,600 300,000 30,335,300 379,492,400 3,687,900 375,804,500 379,492,400

3,687,900 3,687,900 373,482,700 373,482,700 377,170,600 167,155,300 179,380,000 300,000 30,335,300 377,170,600 3,687,900 373,482,700 377,170,600

3,687,900 3,687,900 354,723,000 354,723,000 358,410,900 147,112,600 160,663,000 300,000 50,335,300 358,410,900 3,687,900 354,723,000 358,410,900

3,687,900 3,687,900 358,751,200 358,751,200 362,439,100 150,573,200 161,230,600 300,000 50,335,300 362,439,100 3,687,900 358,751,200 362,439,100

Kentucky has invested approximately $19 billion in its highway infrastructure which is comprised of right-of-way, roadways, and bridges. KRS 176.050 assigns the responsibility for operating and maintaining this highway infrastructure to the Department of Highways. The Maintenance programs role is to operate and maintain the roadways, bridges, rest areas, and traffic control devices on all state-maintained highways. Two organizational units under the Office of Project Delivery and Preservation administer the Maintenance program: the Division of Maintenance and the Division of Traffic Operations. The duties of this unit are explained in Kentucky Revised Statutes 175.580, 175.610, 176.050, 176.051, 177.020, 177.410, 177.530, 177.550, 177.830-890, 177.905-990, and 180.290. The Division of Maintenance responsibilities are broken down into two areas. The Roadway Preservation program maintains approximately 15,000 miles of state primary highways and 13,000 miles of rural secondary highways. The Pavement and Operations Management personnel inspect and evaluate pavement conditions on over 27,000 miles of state-maintained roads, determine strategies for improvement, estimate funding needs, and recommend annual priorities. The Bridge Preservation program is responsible for all state-maintained bridges, except those on the Rural Secondary system. Revolving Maintenance serves as a materials revolving mechanism for refurbishing damaged guardrail. Damaged guardrail is shipped to Frankfort, straightened and re-galvanized, and is placed back into service as needs arise. Capital Improvements is a subset of the Division of Maintenance for coordinating with the Kentucky State Police vehicle accident data in order to establish priorities for installing new guardrail in locations it does not currently exist. The Rest Area Operations/Maintenance program provides sanitary and accessible restroom facilities and other convenient services for motorists traveling through the state. There are 26 rest area and welcome center locations and two truck rest haven locations. The Division of Traffic Operations is responsible for the installation and maintenance of traffic control devices on over 27,000 miles of highways. This division uses a multitude of Intelligent Transportation Systems to communicate, control, detect and process data to effectively move traffic through the state in the safest manner possible. Policy The Executive Budget recognizes the importance of maintaining the Commonwealths current roadway infrastructure and has provided additional Road Fund support totaling $40 million over the biennium to support the ongoing efforts of the Cabinet to keep the motoring public moving safely and efficiently over the roads of Kentucky.

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Transportation Highways Engineering Administration Revised FY 2014 SOURCE OF FUNDS Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Road Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

13,338,100 13,338,100 13,338,100 9,679,900 2,879,700 778,500 13,338,100 13,338,100 13,338,100

15,597,800 15,597,800 15,597,800 11,870,500 2,948,800 778,500 15,597,800 15,597,800 15,597,800

16,387,600 16,387,600 16,387,600 12,581,700 3,027,400 778,500 16,387,600 16,387,600 16,387,600

14,216,600 14,216,600 14,216,600 10,489,300 2,948,800 778,500 14,216,600 14,216,600 14,216,600

14,497,600 14,497,600 14,497,600 10,691,700 3,027,400 778,500 14,497,600 14,497,600 14,497,600

There are nine divisions organized under the State Highway Engineers Office. The Division of Construction supervises highway construction projects, providing administrative support for central office and district construction projects. It also assists the Division of Materials staff in sampling and testing materials used in construction projects. The Division of Materials establishes standards and controls relating to the quality of materials for the construction, maintenance, and operation of highways and bridges. The Division also develops, coordinates, and controls testing procedures that are conducted in the field. The Division of Structural Design develops and prepares contract plans for all highway structures, as well as any special structures that the Transportation Cabinet builds as part of Kentucky's system of roads. The Division also designs and prepares plans for structural repair and rehabilitation of existing bridges, as well as the design of all overhead sign structures. The Division of Highway Design, in conjunction with the district design offices, is responsible for the required design activities of the Cabinets Six-Year Road Plan projects, including the preparation, assembly, and reproduction of construction plans for a projects award. The Division of Environmental Analysis provides all environmental studies and documents required by federal agencies for federal-aid transportation projects and for state funded projects that require federal permits. The division ensures compliance with all federal laws and regulations. The Division of Right-of-Way and Utilities acquires property required for the construction and reconstruction of highways. This function involves obtaining title reports, performing appraisals and appraisal reviews, conducting negotiations, providing relocation assistance, facilitating property management, and initiating condemnation procedures on properties affected by proposed projects. The Division of Program Management is responsible for developing Kentucky's Biennial Six-Year Road Plan. The Division of Planning provides the day-to-day administration and support for personnel involved in the Highway Planning program activities, including management, clerical support, training, and other overhead expenditures. The Division of Professional Services is responsible for procuring the Cabinet's professional services relating to road contracts. This division advertises for engineering services, administers the pre-qualification process for consulting services, provides assistance to selection committees for contract awards, negotiates fees for consulting work sought by the Cabinet, and routinely confers with the Finance and Administration Cabinet and the Legislative Research Commission with respect to contract awards.

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Transportation Highways Planning Revised FY 2014 SOURCE OF FUNDS Federal Funds Current Receipts Total Federal Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Federal Funds Road Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

12,498,000 12,498,000 2,706,900 2,706,900 15,204,900 11,115,800 4,089,100 15,204,900 12,498,000 2,706,900 15,204,900

13,083,200 13,083,200 2,730,300 2,730,300 15,813,500 11,718,600 4,094,900 15,813,500 13,083,200 2,730,300 15,813,500

13,487,400 13,487,400 2,745,200 2,745,200 16,232,600 12,129,300 4,103,300 16,232,600 13,487,400 2,745,200 16,232,600

12,498,000 12,498,000 2,722,100 2,722,100 15,220,100 11,125,200 4,094,900 15,220,100 12,498,000 2,722,100 15,220,100

12,498,000 12,498,000 2,732,300 2,732,300 15,230,300 11,127,000 4,103,300 15,230,300 12,498,000 2,732,300 15,230,300

The Planning program is responsible for administrative and technical support and implements transportation planning activities statewide. The program is charged with a variety of statewide planning initiatives including: rail planning, carpooling, alternative fuel, bikeway, pedway, and ferry operations. In addition, it coordinates the Kentucky Scenic Highway and Byway System, manages the traffic data collection and processing equipment, maintains the Highway Information System, and coordinates air quality conformity with several state and federal agencies. Highway Planning evaluates state-maintained streets and highways to ensure that available federal and state funds are utilized to maximum efficiency. The Planning unit maintains an inventory of all roadway classifications and prepares city, county, and state road maps for sale and distribution. The program also furnishes statistics required by the Federal Highway Administration and state and local government decision-makers. Metropolitan Planning maintains and distributes federal funding to nine metropolitan planning organizations (MPOs) to implement the continuing, comprehensive, and cooperative planning process, which is mandated by federal law. The MPOs study the impact of transportation operations in urbanized areas concerning congestion management, air quality, environmental issues, public involvement, land use and development, and public transportation. Area Development Districts (ADDs) Assistance administers a regional planning and public participation process in the states 15 ADDs as part of the Cabinets overall statewide transportation planning process, as required by 23 USC and 23 CFR 450. The Cabinet contracts with each ADD for activities in support of the regional and statewide planning process, including public involvement, data collection, analysis, identification of needs, project recommendations, regional prioritization of projects, and technical assistance and review.

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Transportation Highways Highway Operations Revised FY 2014 SOURCE OF FUNDS Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Road Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

28,238,300 28,238,300 28,238,300 28,062,300 176,000 28,238,300 28,238,300 28,238,300

32,243,600 32,243,600 32,243,600 32,027,900 215,700 32,243,600 32,243,600 32,243,600

33,915,900 33,915,900 33,915,900 33,635,100 280,800 33,915,900 33,915,900 33,915,900

30,206,100 30,206,100 30,206,100 29,990,400 215,700 30,206,100 30,206,100 30,206,100

30,774,400 30,774,400 30,774,400 30,493,600 280,800 30,774,400 30,774,400 30,774,400

In accordance with KRS Chapter 176, the Highway Operations program provides leadership, management, and central administrative support and funding for central office and district operations for the Transportation Cabinets Department of Highways. The Commissioner of Highways oversees the Department, which includes the State Highway Engineers Office, three offices which include 14 divisions, and 12 district offices across the state. In the 12 district offices, the Chief District Engineer manages the road project functions and reports to the State Highway Engineer. The State Highway Engineer's Office manages and coordinates the engineering functions of the Cabinet, reviews management, engineering, and personnel reports and recommendations from the engineering and professional divisions, staff and Deputy State Highway Engineers. In addition, the Office administers the Cabinet's Engineering Scholarship program and the Engineering Graduate Training program, coordinates the Research program, and manages special projects, such as the Louisville Bridges project. Contract procurement activities are also a part of the Highway Operations program and include prequalifying road contractors, advertising bids for road construction projects, awarding contracts, and issuing work orders and monitoring required contract provisions.

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Transportation Highways Equipment Services Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Total Restricted Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

13,581,800 57,500,000 71,081,800 71,081,800 11,395,000 22,889,600 30,251,700 64,536,300 64,536,300 64,536,300

6,545,500 58,250,000 64,795,500 64,795,500 13,747,200 23,901,300 23,825,700 61,474,200 61,474,200 61,474,200

3,321,300 59,000,000 62,321,300 62,321,300 14,578,000 23,917,600 23,825,700 62,321,300 62,321,300 62,321,300

6,545,500 58,250,000 64,795,500 64,795,500 12,356,300 22,901,300 23,825,700 59,083,300 59,083,300 59,083,300

5,712,200 59,000,000 64,712,200 64,712,200 12,665,200 22,917,600 23,825,700 59,408,500 59,408,500 59,408,500

The mission of the Equipment Services program is to provide highway construction and maintenance equipment for use by the Department of Highways. The unit purchases and maintains all the Cabinet's trucks, heavy equipment, and various pieces of support machinery. This program provides its services through the central office garage in Frankfort and a network of 12 repair garages located throughout the state.

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Transportation Highways Highway Safety Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

17,700 17,700 5,534,700 5,534,700 4,706,700 4,706,700 10,259,100 3,947,200 6,301,200 10,248,400 7,000 5,534,700 4,706,700 10,248,400

10,700 10,700 5,599,400 5,599,400 5,183,600 5,183,600 10,793,700 4,487,300 6,302,700 10,790,000 7,000 5,599,400 5,183,600 10,790,000

3,700 3,300 7,000 5,647,200 5,647,200 5,401,700 5,401,700 11,055,900 4,750,100 6,305,800 11,055,900 7,000 5,647,200 5,401,700 11,055,900

10,700 10,700 5,534,700 5,534,700 4,965,000 4,965,000 10,510,400 4,210,700 6,296,000 10,506,700 7,000 5,534,700 4,965,000 10,506,700

3,700 3,300 7,000 5,534,700 5,534,700 5,050,900 5,050,900 10,592,600 4,306,500 6,286,100 10,592,600 7,000 5,534,700 5,050,900 10,592,600

The Office of Transportation Safety is headed by an Executive Director who reports directly to the State Highway Engineer. The Office includes the Division of Incident Management and the Division of Highway Safety Programs. The Motorcycle Advisory Commission for Highway Safety is attached for administrative purposes. The Division of Incident Management manages the Transportation Operations Center and coordinates highway incident management including providing information to travelers and providing assistance to stranded motorists and law enforcement agencies at the scene of highway incidents. The Division of Highway Safety Programs is charged with coordinating efforts to reduce fatalities, injuries, and crashes on Kentuckys highway systems.

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Transportation Public Transportation Revised FY 2014 SOURCE OF FUNDS General Fund Regular Appropriation Continuing Approp.-General Fund Total General Fund Restricted Funds Current Receipts Total Restricted Funds Federal Funds Current Receipts Total Federal Funds TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE General Fund Restricted Funds Federal Funds TOTAL EXPENDITURES EXPENDITURES BY UNIT Public Transportation Multi-Modal Transportation Human Services Delivery TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

5,178,200 299,400 5,477,600 500,000 500,000 43,561,200 43,561,200 49,538,800 1,724,800 96,800 47,717,200 49,538,800 5,477,600 500,000 43,561,200 49,538,800 48,674,000 424,800 440,000 49,538,800

6,678,200 6,678,200 440,000 440,000 25,341,400 25,341,400 32,459,600 1,949,100 96,800 30,413,700 32,459,600 6,678,200 440,000 25,341,400 32,459,600 31,594,800 424,800 440,000 32,459,600

6,678,200 6,678,200 440,000 440,000 25,667,200 25,667,200 32,785,400 2,043,700 96,800 30,644,900 32,785,400 6,678,200 440,000 25,667,200 32,785,400 31,920,600 424,800 440,000 32,785,400

4,919,300 4,919,300 484,200 484,200 25,341,400 25,341,400 30,744,900 1,818,900 96,800 28,829,200 30,744,900 4,919,300 484,200 25,341,400 30,744,900 29,857,100 403,600 484,200 30,744,900

4,919,300 4,919,300 495,600 495,600 25,667,200 25,667,200 31,082,100 1,848,700 96,800 29,136,600 31,082,100 4,919,300 495,600 25,667,200 31,082,100 30,182,900 403,600 495,600 31,082,100

The Public Transportation appropriation unit is comprised of three programs: Public Transportation, Multi-Modal, and Human Services Transportation Delivery. The Public Transportation program offers technical and financial assistance to public transportation providers and the metropolitan planning organizations throughout the state through the following federal programs: Sections 5303, 5307, 5309, 5310, 5311, 5316, and 5317. Federal Funds, combined with General Fund and local matching funds, allow public transit authorities to acquire buses and vans. The American Recovery and Reinvestment Act of 2009 provided $51.5 million in additional federal funds for the Section 5307 Urban Transit and Section 5311 Rural Transit programs. Unlike traditional federal transit funds, these funds required no state match. Of that amount, $21.4 million flowed through the Transportation Cabinet, with the balance flowing directly to local transit agencies. These additional funds were made available in the spring of 2009 and have been fully expended by the Cabinet. Also included in the Public Transportation program is funding for Non-public School Transportation, a program that provides grants to non-public schools so that they may offer bus service to their students. The Multi-Modal program partners with the 15 area development districts with respect to regional and statewide transportation planning processes. This partnership generates public involvement with respect to identifying and prioritizing needs and assists in the project recommendation process, including the coordination of the Statewide Transportation Plan, the State Transportation Improvement program, and the Six-Year Highway Plan. The Human Service Transportation Delivery program is a partnership between the Transportation Cabinet, the Medicaid program, the Office for Vocational Rehabilitation, and the Office for the Blind. This partnership provides non-emergency medical transportation, jobs access transportation, and transportation to day care facilities. Policy The Executive Budget provides for the use of Toll Credits to be used by the Office of Transportation Delivery and public transit authorities as the match for federal funds.

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Transportation Revenue Sharing Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Total Restricted Funds Road Fund Regular Appropriation Other Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Construction TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT County Road Aid Rural Secondary Municipal Aid Energy Recovery Rural and Municipal Aid TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

1,519,900 1,519,900 405,482,300 -397,700 405,084,600 406,604,500 3,348,400 4,547,000 219,499,100 179,210,000 406,604,500 1,519,900 405,084,600 406,604,500 154,689,500 185,812,400 64,448,400 903,000 751,200 406,604,500 397,590,900 397,590,900 397,590,900 3,992,500 4,734,600 214,231,000 174,632,800 397,590,900 389,212,800 389,212,800 389,212,800 4,236,700 4,559,300 209,681,000 170,735,800 389,212,800 419,274,000 419,274,000 419,274,000 3,475,600 4,734,600 226,061,000 185,002,800 419,274,000 420,059,400 420,059,400 420,059,400 3,505,900 4,559,300 226,477,000 185,517,200 420,059,400

397,590,900 397,590,900 150,150,100 182,149,400 63,177,900 903,000 1,210,500 397,590,900

389,212,800 389,212,800 146,947,600 178,264,400 61,830,400 903,000 1,267,400 389,212,800

419,274,000 419,274,000 158,476,600 192,250,400 66,681,400 903,000 962,600 419,274,000

420,059,400 420,059,400 158,769,400 192,605,600 66,804,600 903,000 976,800 420,059,400

There are five components of the Revenue Sharing program: the County Road Aid program, authorized by KRS 179.410 - 179.440; the Rural Secondary Aid program, authorized by KRS 177.320; the Municipal Road Aid program, authorized by KRS 177.365 177.366; the Energy Recovery Road program, authorized by KRS 177.977-177.978; and other Special Programs. The County Road Aid, Rural Secondary Aid, and Municipal Aid programs receive a portion of the state's motor fuels tax collections. The County Road Aid program receives 18.3 percent of motor fuels tax collections which is distributed to counties for the construction, reconstruction and maintenance of county roads and bridges. The Rural Secondary Aid program receives 22.2 percent of motor fuels tax collections, and funds are used to repair and maintain rural and secondary roads. Funds for both programs are allocated through a formula known as the "formula of fifths," as stated in KRS 177.360. Each county receives a portion of the statewide total as follows: one-fifth is divided evenly among all counties, one-fifth is divided proportionately based on the amount of rural population in each county, one-fifth is distributed on the basis of rural road mileage in each county, and two-fifths is apportioned according to each county's share of the total land area in the state. The Municipal Road Aid program is funded by 7.7 percent of motor fuels tax collections. Distribution is made through a formula based upon the population contained in each city or unincorporated urban area. Pursuant to KRS 183.220(3), effective July 1, 2005, one cent ($0.01) and effective July 1, 2006, two and one-tenth cents ($0.021), of the tax collected under the motor fuel tax are excluded from the calculations of revenue sharing distributions as prescribed in KRS 177.320(1) (the Rural Secondary program), KRS 177.320(2) (the County Road Aid program), and KRS 177.365 (the Municipal Road Aid program). Forty percent of the revenues collected from extended vehicle weight fees support the Energy Recovery Road System. Funds are distributed to the counties for the county-maintained portion of that system. The fund distribution is based on (1) the ratio of miles of roads in each county within this system to the total system miles, and (2) the ratio of the total tons of coal transported over the roads in each county to the total tons reported for the entire state. The Transportation Cabinet has the authority to expend the remaining 60 percent on the roads in the system.

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The Special Programs budget unit includes the Commissioners Office, the Office of Local Programs, the Kentucky Bicycle and Bikeway Commission, and the Bicycle and Pedestrian Program. Policy The Motor Fuels revenue estimate for the fiscal biennium 2014-2016, upon which the Road Fund appropriations in the Revenue Sharing program are based, is $929,700,000 in fiscal year 2015 and $931,300,000 for fiscal year 2016.

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Transportation Vehicle Regulation Revised FY 2014 SOURCE OF FUNDS Restricted Funds Balance Forward Current Receipts Non-Revenue Receipts Fund Transfers Total Restricted Funds Federal Funds Current Receipts Total Federal Funds Road Fund Regular Appropriation Total Road Fund TOTAL SOURCE OF FUNDS EXPENDITURES BY CLASS # Personnel Cost # Operating Expenses # Grants Loans Benefits # Debt Service # Capital Outlay TOTAL EXPENDITURES EXPENDITURES BY FUND SOURCE Restricted Funds Federal Funds Road Fund TOTAL EXPENDITURES EXPENDITURES BY UNIT Commissioner Drivers Licensing Motor Carriers Motor Vehicle Licensing Customer Service Motor Vehicle Commission TOTAL EXPENDITURES Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

8,070,800 17,097,800 -89,200 -5,672,500 19,406,900 2,730,000 2,730,000 25,762,700 25,762,700 47,899,600 17,100,200 15,370,900 4,100,000 4,784,500 41,355,600 12,862,900 2,730,000 25,762,700 41,355,600 1,113,800 13,182,500 4,985,700 19,887,700 1,196,500 989,400 41,355,600

7,893,400 18,488,000 -55,000 26,326,400 2,868,600 2,868,600 28,374,600 28,374,600 57,569,600 20,960,200 16,696,700 4,100,000 4,884,000 3,143,000 49,783,900 18,540,700 2,868,600 28,374,600 49,783,900 1,491,600 13,934,200 6,919,500 24,468,900 1,860,200 1,109,500 49,783,900

7,785,700 18,624,100 -55,000 26,354,800 2,886,600 2,886,600 29,208,700 29,208,700 58,450,100 21,881,900 16,778,700 4,100,000 4,885,800 3,144,800 50,791,200 18,695,900 2,886,600 29,208,700 50,791,200 1,562,500 14,294,300 7,138,400 24,661,900 1,979,800 1,154,300 50,791,200

6,544,000 18,422,100 -3,402,700 -7,350,000 14,213,400 2,868,600 2,868,600 31,769,200 31,769,200 48,851,200 19,465,400 15,223,200 4,100,000 4,802,000 43,590,600 8,952,800 2,868,600 31,769,200 43,590,600 1,179,900 14,341,100 6,701,000 19,080,000 1,247,700 1,040,900 43,590,600

5,260,600 18,422,600 -55,000 -7,100,000 16,528,200 2,886,600 2,886,600 28,464,000 28,464,000 47,878,800 19,806,900 16,303,000 4,100,000 4,803,800 45,013,700 13,663,100 2,886,600 28,464,000 45,013,700 1,198,600 14,483,700 6,778,000 20,234,800 1,260,000 1,058,600 45,013,700

The Department of Vehicle Regulation includes the Commissioner's Office and the following divisions: Driver Licensing, Motor Carriers, Motor Vehicle Licensing, and Customer Service. The Motor Vehicle Commission is also attached to the Department for administrative purposes. Under KRS Chapters 186, 187, 189A, 218A, 281A, and KRS 159.051, the Division of Driver Licensing maintains driver history records for approximately three million drivers. The Division issues licenses to commercial drivers who meet statutory requirements. The Division also enforces drivers license suspensions, revocations, and driver limitation programs. It operates State Traffic School programs, including the Graduated Licensing program. The Division of Motor Vehicle Licensing provides for the titling and registration of motor vehicles and boats in accordance with KRS Chapters 186, 186A, 235, and 376. It maintains the Automated Vehicle Information System (AVIS) and controls title distribution functions. Registration and title applications are initiated through local county clerks offices. KRS 186.240(3) requires the Cabinet to issue a new reflectorized license plate on a schedule to be determined by the Cabinet. A fifty-cent ($.50) fee for each reflectorized plate issued is retained in a Restricted Fund to pay for the new plates. In 2007, KRS 186.040 was amended to add an additional $3 to the registration fee which shall be distributed as follows: $1 for AVIS replacement activities, $1 for county clerk hardware and software improvement, and $1 for a county clerk revenue supplement for collection and administration of Road Fund taxes. Pursuant to KRS Chapter 190, the Kentucky Motor Vehicle Commission licenses and regulates motor vehicle manufacturers, dealers, and salespersons. It is funded through license fees that are deposited into a Restricted Fund account.

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Policy The fiscal year 2014 enacted budget increased the fund transfer from the Department by $3,500,000 above the Governors Recommendation with no associated reduction to the Restricted Funds appropriation. For that reason, the full amount of the budgeted fund transfer amount is not displayed above.

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Statewide

Statewide Budget Reserve Trust Fund Revised FY 2014 SOURCE OF FUNDS General Fund Surplus Expenditure Plan Continuing Approp.-General Fund Other Total General Fund TOTAL SOURCE OF FUNDS Requested FY2015 Requested FY2016 Recommended FY 2015 Recommended FY 2016

25,600,900 121,722,500 -49,029,200 98,294,200 98,294,200

98,294,200 98,294,200 98,294,200

98,294,200 98,294,200 98,294,200

98,294,200 98,294,200 98,294,200

98,294,200 98,294,200 98,294,200

The Budget Reserve Trust Fund is the Commonwealths Rainy Day Fund. KRS 48.705 provides for deposits to the Budget Reserve Trust Fund from direct appropriations, excess receipts, and unexpended appropriations, up to five percent of actual General Fund revenue receipts. These funds are appropriated and available in the event that actual General Fund revenue receipts during the biennium are not sufficient to meet the General Fund appropriation levels authorized in the budget. These funds are also available as a resource for Necessary Governmental Expenses when there is no General Fund surplus. Policy The current unobligated balance of the Budget Reserve Trust Fund is $98,294,200. A deposit of $25,600,900 was made in July, 2013 from the fiscal year 2013 General Fund surplus. The Executive Budget directs any General Fund surplus to the Budget Reserve Trust Fund through the General Fund Surplus Expenditure Plan, after allowing for sufficient resources for items authorized as necessary government expenses.

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