Kentucky League of Cities

The Kentucky House released its initial version of the Commonwealth’s biennial budget on Tuesday, January 27. House Appropriations and Revenue Chair Rep. Jason Petrie (R–Elkton) announced the House is taking a “bare-bones” approach this year, relying more heavily on the General Assembly’s budget review subcommittees to shape final decisions.

The committee substitute to 2026 House Bill 500 includes no line items, limited capital projects, and no additional budget requests, aiming to increase transparency and legislative input. Petrie noted that key items, such as mental health services, will be included in the base budget without specific line-item language, emphasizing that 80–95% of the $15.5–$16 billion budget is base spending.

Petrie said the goal is to restrain spending growth, citing unsustainable growth rates of 4–7% compared to only 2% revenue growth. He highlighted projected General Fund revenue growth of $5.4 billion from FY 2018 to 2028 and more than $10 billion in additional budget requests beyond the base. He concluded that identifying executive branch needs will be essential to crafting the final budget.

Despite being pared down, 2026 HB 500 still contains important provisions for Kentucky’s cities, including:

Payments of $4,653 in FY 2026-27 and $4,746 in FY 2027-28 for Kentucky Law Enforcement Foundation Program Fund (KLEFPF) training incentive payments for certified full-time participants, and $2,327 in FY 2026-27 and $2,373 in FY 2027-28 for each certified part-time participant.
- This is an increase of 2% in FY 2026-27 and 4% in FY 2027-28 for both certified full-time and part-time participants, and from the previous biennium budget.
Payments of $4,653 in FY 2026-27 and $4,746 in FY 2027-28, plus an amount equal to the required employer’s contribution on the supplement in each fiscal year, for training incentive pay in the Firefighter Foundation Program Fund (FFPF).
- This is an increase of 2% in FY 2026-27 and 4% in FY 2027-28 for qualified participants from the previous biennium budget.
Payments of $15,300 in both FY 2026-27 and FY 2027-28 for aid to each qualified volunteer fire department.

A table comparing the line items impacting local governments between 2026 HB 304 and 2026 HB 500 can be found here.