Kentucky Revised Statutes Title VI. Financial Administration § 48.140.Surplus expenditure plan to be included in each enacted branch budget bill; surplus in excess of two and one-half percent to accrue to surplus account

(1) The General Assembly shall include in each enacted branch budget bill a plan for the expenditure of a general fund or road fund surplus.

(2) If there is a surplus, the Office of State Budget Director shall notify all branches of government.

(3) Except as provided in KRS 48.705, any surplus in the general or road fund in excess of two and one-half percent (2.5%) of the enacted estimates shall not be expended but shall accrue to the surplus account of the general fund or road fund for investment until appropriated by the General Assembly.

(4) Unless required by the budget reduction provisions in a branch budget bill, no funds shall be transferred from one budget unit to another budget unit.

(5) Surplus funds in any account, unless a statute requires otherwise, shall lapse to the surplus account of the general fund for investment until appropriated by the General Assembly.

(6) Funds in the surplus account of the general fund may be used for current expenditures as authorized by the budget reduction provisions of a branch budget bill.