Budgeting and Appropriations | Biennial enactment of two 12-month budgets; fiscal year begins July 1. |
Bonding or Pay-as-You-Go | Combination of bonding and pay-as-you-go financing. |
State-Level Funding Provided for DOT Budgets | FY 2011 (approved): $1.49 billion |
Allocation of Federal Transportation Funds to the DOT | Federal transportation funds are legislatively appropriated to the KYTC through the biennial budget process within the categories of General Administration and Support, Aviation, Debt Service, Highways, Public Transportation, Revenue Sharing and Vehicle Regulation. Within those appropriations, additional direction is provided to guide expenditures. |
Allocation of State Transportation Funds to the DOT | State transportation funds also are legislatively appropriated to the KYTC within certain categories, and with additional direction to guide expenditures. |
Traditional State Funding and Finance for Highways | Fuel taxes (variable excise tax based on the average wholesale price; see Ky. Rev. Stat. §138.220); motor vehicle/rental car usage taxes; vehicle registration/license/title fees; truck weight fees; interest income; revenue bonds. |
State Funding and Finance for Other Modes | Transit: General funds. Rail: $2 million from the Road Fund in the most recent transportation budget bill. Aviation: Jet fuel taxes; operation of the Commonwealths aircraft; discretionary allocations from the Road Fund. Bridges: Included with highways. |
Innovative Transportation Funding and Finance | GARVEE bonds; Build America Bonds; design-build (authorized in statute); weight-distance tax; advance construction; toll credits or "soft match." |
Dedicated/Restricted State Funds and Revenues | The state constitution dedicates revenues from fuel taxes and motor vehicle-related taxes and fees to administration; statutory refunds and adjustments; payment of highway obligations; construction, reconstruction, rights-of-way, maintenance and repair of public highways and bridges; and enforcing state traffic and motor vehicle laws (Ky. Const. §230). These revenues are deposited to the Road Fund. Revenues from the jet fuel tax are statutorily restricted to aviation (Ky. Rev. Stat. §183.525), but in recent years the budget bill has transferred these funds to the general fund, notwithstanding the restriction. |
DOT Authorized to Retain Surplus Funds | Yes, in most areas. Historically, most transportation resources have been retained by the KYTC for transportation purposes. The General Assembly, however, provides the appropriation authority necessary for the KYTC to expend the funds. Ky. Rev. Stat. §45.229 provides that appropriations for executive agencies lapse at the end of a fiscal year; thus, funds carried forward from a previous year in most areas must be legislatively reappropriated for the KYTC to expend them. Some areas have been exempted from this requirement through language in the budget bill allowing carry-forward of appropriation balances. Also, Ky. Rev. Stat. §48.710 requires excess money in the Road Fund to be deposited to a surplus fund and states that no expenditures can be made from the fund unless appropriated by the General Assembly or required by the branch budget bill. |
Legislative Approval Required to Move Funds Between Projects | No, but there is a review and approval process for any modifications to the appropriation levels. |
Transportation Funding Allocations through Local Aid | State law dedicates 48.2 percent of motor fuel tax revenues to county and city governments for construction, reconstruction and maintenance of local roads and bridges. The County Road Aid program receives 18.3 percent and the Rural Secondary Program 22.2 percent (Ky. Rev. Stat. §177.320). These funds are distributed by formula based on population, area and public road mileage (Ky. Rev. Stat. §177.360). The other 7.7 percent goes to the Municipal Aid Program and is allocated by population (Ky. Rev. Stat. §177.365 and §177.366). Local governments are involved in determining the projects for which the funds are used. |