KRS § 45.760 — KY Code / Title VI / Chapter 45 / Section 45.760
45.760 Limitations on project and equipment expenditures in State Capital Construction Program
Status: in_force

45.760 Limitations on project and equipment expenditures in State Capital

Construction Program.

The provisions of any other law notwithstanding:

(1) During any biennium the amount allotted, from all sources, for expenditure on any

project in the state capital construction program for that biennium shall not exceed

the estimated cost of the project during that biennium, as shown in any branch

budget bill enacted by the General Assembly, except as provided in this section and

KRS 45.770 and 45.780.

(2) When the General Assembly disapproves a capital project or item of equipment that

was previously approved, it shall be eliminated as a capital project or major item of

equipment in the Capital Projects Program. General fund moneys appropriated for

that project or item of equipment but not allotted, and general fund moneys allotted

but not expended to the project or equipment account, shall be transferred to the

capital construction and equipment purchase contingency account in the capital

construction fund. Agency or federal funds for a disapproved project or item, that

have been appropriated but unallotted or allotted but unexpended, shall be returned

to the appropriate agency fund. Road fund moneys for a disapproved project or item

that have been appropriated but unallotted or allotted but unexpended, shall be

returned to the Road Fund Surplus Account.

(3) Capital projects and major items of equipment disapproved under subsection (2) of

this section shall be terminated.

(4) During any biennium, the amount allotted from all sources for expenditure for the

purchase of any major item of equipment shall not exceed the estimated cost of the

item as shown in any branch budget bill enacted by the General Assembly and

authorizing the purchase, except as provided in subsections (5) and (6) of this

section and in KRS 45.770 and 45.780.

(5) A major item of equipment to be used for medical, scientific, or research purposes,

excluding computer equipment and aircraft, may be authorized even though it is not

specifically listed in any branch budget bill enacted for the current biennium,

subject to the following conditions and procedures:

(a) Moneys specifically budgeted and appropriated by the General Assembly for

another purpose shall not be reallotted for expenditure on the item; moneys

utilized shall not jeopardize any existing program and shall not require the use

of any current general funds specifically dedicated to existing programs;

(b) Funds are available for the purchase and the method of financing the purchase

will not require an additional appropriation of state funds to acquire the item;

and

(c) The purchasing agency shall, within thirty (30) days after making the

purchase, report the purchase to the Capital Projects and Bond Oversight

Committee. The report shall include a description of the item, the purpose for

which it will be used, the necessity for the purchase, and the amount expended

for the purchase from each source of funds used.

(6) Moneys from any source may be transferred to the allotment account of any capital

project authorized by the General Assembly under this section, subject to the

following conditions and procedures:

(a) The total amount transferred shall not exceed fifteen percent (15%) of the

amount authorized by the General Assembly unless:

1. The source of funds is private or federal; or

2. An unforeseen decision by a federal or state court or regulatory agency

requires the transfer.

(b) Moneys specifically budgeted and appropriated by the General Assembly for

another purpose shall not be allotted or reallotted for expenditure on the

capital project.

(c) Moneys utilized shall not jeopardize any existing program and shall not

require the use of any current general funds specifically dedicated to existing

programs.

(d) The relevant entity head, or his designee, shall submit the capital project to

the Capital Projects and Bond Oversight Committee at least fourteen (14)

days prior to the committee meeting. The submission shall include a written

certification to the committee that the transfer, in excess of fifteen percent

(15%) of the amount authorized by the General Assembly, is:

1. Paid for out of private or federal funds; or

2. Required by an unforeseen decision by a federal or state court or

regulatory agency; and

3. Not allotted or reallotted from moneys specifically budgeted and

appropriated by the General Assembly for another purpose; and

4. Not jeopardizing any existing program and not requiring the use of any

current general funds specifically dedicated to existing programs.

(e) If a capital project is financed with road funds, the cost overruns or scope

increases shall be paid out of the highway contingency account established

pursuant to KRS 45.247.

(7) A capital construction project or a major item of equipment may be authorized even

though it is not specifically listed in any branch budget bill, subject to the following

conditions and procedures:

(a) Fifty percent (50%) or more of the actual cost shall be funded by federal or

private funds, and fifty percent (50%) or less of the actual cost shall be funded

by moneys appropriated to the capital construction and equipment purchase

contingency account or, if the purpose of the project or equipment is to reduce

energy costs, the relevant entity head certifies projected energy cost savings

associated with the project or equipment are reasonable and sufficient to

produce an aggregate simple payback period, as defined by KRS 56.770, of

five (5) years or less;

(b) Moneys specifically budgeted and appropriated by the General Assembly for

another purpose shall not be allotted or reallotted for expenditure on the

project or major item of equipment; moneys utilized shall not jeopardize any

existing program and shall not require the use of any current general funds

specifically dedicated to existing programs; and

(c) The relevant entity head, or his designee, shall submit the project or major

item of equipment to the committee for review as provided by KRS 45.800.

(8) The capital construction and equipment purchase contingency fund may be used to

advance funds to projects authorized to be financed by bonds, to finance feasibility

studies for projects which may be contemplated for future funding, or to audit the

capital projects program when authorized by the General Assembly.

(9) On or before October 1, each branch of government shall submit to the committee

the following information:

(a) A complete list and summary description of every capital construction project

and major item of equipment not completed as of June 30 of the prior fiscal

year; and

(b) For each project and major item of equipment, as of July 1, of the current

fiscal year:

1. The project phase;

2. The project account number, project name, and any other term employed

to identify the project or major item of equipment;

3. The available balance in the project or major item of equipment account,

and any sums considered available for that project or major item of

equipment;

4. A statement of the transfers of funds to or from the project or major item

of equipment account; and, any account to which transfers from each

project or major item of equipment has been made;

5. The year in which the project or major item of equipment was approved,

with specific reference to the legislation by which the project or item

was approved;

6. Total expenditure on the project or major item of equipment;

7. The current estimated completion cost, including the amount required

for annual inflation; and

8. A statement that additional funds for the completion of the project or

major item of equipment are or are not required; and, if required, why

sufficient funds for completion are not available; and

(c) The balance in the appropriated, but unallotted account; and the balance in

any account, however designated, that contains appropriated, but unallotted

funds for capital construction.

(10) When the General Assembly authorizes a capital construction item in the capital

construction section of a branch budget bill, the entity head charged with executing

the branch budget shall construct the capital construction item according to the

requirements set forth in the branch budget bill, supporting documentation

considered by the General Assembly, and branch budget records. The entity head

shall not deviate from these requirements with regard to:

(a) Purpose or location to the extent that the capital construction item no longer

meets the identified needs; or

(b) Configuration for reasons other than practical accommodation to the

construction site or specific program to be accommodated within that capital

construction item.