Limited emergency conditions permit the state budget director to increase the level of appropriation for a budget unit. If this action occurs, notice and documentation must be communicated to the Interim Joint Committee on Appropriations and Revenue. Expenditures State expenditures are preaudited for availability of resources, conformity with legislative purpose, and compliance with regulations by the Finance and Administration Cabinet or a delegated agency. Warrants are issued to the State Treasurer prior to disbursement of funds. Bond authorizations and issues must be reviewed and approved by the Finance and Administration Cabinet.
Universities also have statutory authority for financial and budget administration.
It should be noted that the budget act is the sole authority for some program expenditures and operations. In several periods, multiple revisions of the revenue estimate for a single fiscal year have been necessary. The budget act and the KRS now direct the Finance Secretary to review and report to each branch head, on a quarterly schedule, actual and projected receipts for the General Fund and Road Fund, in comparison with enacted revenue estimates, and to note any potential impacts on the state's fiscal condition. The General Assembly has enacted statutes to govern interim circumstances in which the originally enacted General and Road Fund revenues are not achieved or may be exceeded. The branch budget bills include a Budget Reduction Plan, which provides the legislative policy guidelines when a revenue shortfall is officially forecast by the Secretary of Finance for the General Fund or Road Fund.