Statement from the Kentucky Court of Justice about the Judicial Branch budget

Via press release

Chief Justice Debra Hembree Lambert and the Administrative Office of the Courts leadership have no misunderstanding about the Judicial Branch budget approved in House Bill 504 or its operational impact. To that end, these are the facts as it relates to current amounts.

For fiscal year 2027, the Judicial Branch requested $354.7 million to maintain court operations at current levels. This amount did not include funds necessary to implement the 2% salary increments given to state personnel by the General Assembly. The final version of HB 504 passed by the General Assembly and sent to the governor included $344.4 million for court operations, including a 2% salary increment for employees.

The court operations budget unit includes personnel, technology and other expenses required to operate all courts, including our specialty courts. Other appropriation units in the Judicial Branch, including the Local Facilities Fund, are designated for specific purposes and cannot be used to support general court operations or personnel costs. The Judicial Branch appreciates the additional funding provided, including “rainy day” funds (not general funds) for the restoration of the Hardin County and Franklin County courthouses after last year’s devastating floods, and other required services related to information technology and contractor rate increases, but it does not resolve the projected general fund deficit for court operations, which stands at $12.6 million for fiscal year 2027 and $17 million for fiscal year 2028.

Our attention must now turn to evaluating how to align operations and services with the funding provided while continuing to support our people and the citizens we serve.

Facts and figures

The following information outlines the Judicial Branch’s operating budget for court operations, the funding levels requested by the branch and the appropriations enacted by the General Assembly. These figures provide context for understanding the projected budget shortfalls affecting court operations.

• The General Fund appropriation for court operations was $327.7 million in fiscal year 2026 (July 1, 2025, through June 30, 2026). Court operations refer to the funding used to run the state’s courts, including personnel and day-to-day operating expenses such as technology, furniture and office supplies for the Supreme Court, Court of Appeals, circuit and district courts and circuit court clerks across Kentucky’s 120 counties.

  • The fiscal year 2026 appropriation resulted in a deficit of about $13.5 million annually.

    • In past years, the Judicial Branch has covered shortfalls through vacancy credits and one time agency funds. Vacancy credits are savings that occur when positions are temporarily vacant during hiring or turnover. The branch also receives limited revenue from sources such as record check fees. When that revenue exceeds estimates, the remaining funds can be used to help balance the budget.

    • Those options are no longer sufficient to close the gap. Fees have declined in recent years. In addition, the General Assembly created a Judicial Branch Reserve Account in 2025 and directed that most carryforward agency funds be placed in that account, where they cannot be used without legislative authorization. As a result, the branch no longer has the same ability to offset General Fund shortfalls.

  • The Judicial Branch has notified the General Assembly that it can no longer continue covering this deficit through internal measures. The issue was raised during presentations to a budget review subcommittee on Jan. 13, 2026, and Sept. 17, 2025, and was previewed earlier in February 2025 when the branch advised lawmakers it would seek additional funding for existing personnel expenses not included in the General Fund appropriation.

• Our budget request for fiscal year 2027 (July 1, 2026, through June 30, 2027) included:

  • $13.5 million increase to the base appropriation to make up the deficit; and

  • $8.7 million to account for anticipated increases in information technology subscription fees, audio/visual system upgrades and contractor rate increases.

    • These include subscription and licensing fees for systems necessary to operate the courts, such as the digital courtroom recording systems that serve as the official record of court proceedings, the branch’s case management system, Microsoft products and other software. The request also accounted for anticipated increases in contractor rates, including technology contractors and court interpreters.

  • $4.8 million for “defined calculations,” which includes mandated increases to employee retirement contributions, employer Social Security contributions, employee health insurance premiums, workers compensation premiums, and state fire and tornado fund premiums.

  • In short, the Judicial Branch needed $354.7 million to maintain current services for fiscal year 2027.

• The fiscal year 2027 General Fund appropriation for court operations is $344.4 million.

  • This amount is inclusive of the statewide 2% salary increment.

  • We are currently anticipating a $12.6 million deficit for fiscal year 2027 and a $17 million deficit for fiscal year 2028 if all current service levels remain the same.

--30--