Kentucky Association of Counties

KACo Logo

Kentucky Association of Counties

Budget takes center stage as 2026 legislative session begins

By Kayla Carter Smith, Policy Analyst
Week One highlights from Frankfort

The Kentucky General Assembly gaveled in the 2026 regular session on Tuesday, launching a 60-day session dominated by the task of crafting a new biennial state budget.   

Lawmakers spent much of the opening week in legislative ethics training, with no committee meetings held, but legislative activity was brisk as more than 300 bills were filed across both the House and Senate.

State of the Commonwealth Address

Gov. Andy Beshear outlined his final budget priorities during Wednesday’s State of the Commonwealth and Budget Address, presenting a spending plan focused on job creation, infrastructure, health care and housing, with notable implications for county governments. The proposal includes $70 million for site development, $100 million for infrastructure supporting large economic development projects, and a new $25 million rural economic development fund aimed at helping smaller and rural counties compete for jobs.

The Governor also highlighted continued investment in transportation infrastructure, noting that 660 state and local bridges have been repaired or replaced since 2020 and that major road projects are underway or planned across the Commonwealth. Additional budget priorities include support for rural hospitals, affordable housing, mental health services, public safety and disaster response – areas that frequently intersect with county responsibilities.

Bills of county interest

Several bills were filed this week related to property taxes, echoing a similar theme from the last several sessions. Many would require constitutional amendments. These include:

  • Homestead exemption – HB 100, HB 137, HB 235, HB 245
  • Exemption for primary residences and primary vehicles – HB 75
  • Exemption for veterans and first responders – HB 242
  • Expansion of moratorium on assessment and reassessment – HB 233
  • Standardized property tax forms – SB 91
  • Tax rate levy recalls - SB 41

The first of what is expected to be many drivers license proposals was filed this week. HB 162, sponsored by Rep. Savannah Maddox, would shift drivers licensing back to circuit court clerks.

SB 27, sponsored by Sen. Greg Elkins, would allow unclaimed bodies to be cremated after at least six months of unsuccessful attempts to locate next of kin. Under the bill, the fiscal court would determine whether the body is buried or cremated, following consultation with the coroner.

Legislative reception

Mark your calendar for Wednesday, Feb. 11 for the annual County Officials Legislative Reception, hosted at KACo Headquarters from 4:30-7p.m. You can help us prepare by registering here.

Important legislative dates

  • March 2 – last day for new Senate bills
  • March 4 – last day for new House bills
  • April 2-13 – Veto recess
  • April 14-15 – last two days of session

For questions or feedback, contact KACo Director of Government Affairs Shellie Hampton or Policy Analyst Kayla Smith at shellie.hampton@kaco.org or kayla.smith@kaco.org.

 

More County News