Request By:
Mr. Lloyd K. Rogers
Campbell County Judge Executive
24 W. 4th Street
P.O. Box 340
Newport, Kentucky 41072
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Charles W. Runyan, Assistant Deputy Attorney General
You present questions concerning the county budget.
Question No. 1 reads:
Is it in the power of the judge executive of a county with a city of the second class to declare a state of financial exigency?
Let us assume the proposed county budget is approved by the state local finance officer and finally adopted by the fiscal court pursuant to KRS 68.250, 68.260, and 68.270. The fiscal court may transfer money from one budget fund to another under the terms of KRS 68.290.
The mere administrative declaring of an emergency is not treated as such in the statutes. The pertinent matter is what can be done by the fiscal court in such an emergency.
Question No. 2:
If a county judge executive declares a state of financial crisis in which he can take action to assure that a deficit would not exist at the end of the fiscal year, can he, under those circumstances, impound funds appropriated by the fiscal court?
You should carefully note that under KRS 68.300 no appropriation can be made or claim allowed by fiscal court in excess of any budget fund. Any warrant or contract not within the budget appropriation is void. See that statute for liabilities of the county treasurer. Also note the limit of expenditures under KRS 68.310.
The point is that the entire fiscal court has the responsibility to not engage in expenditures in excess of budget funds. You can only spend what you have. KRS 68.300.
Question No. 3:
If he cannot declare a financial emergency, or if he cannot impound funds, can he exercise any emergency powers to insure that there will not be a deficit situation if the fiscal court passes what will become a deficit budget?
Here again it is up to the fiscal court as a body to carefully consider contracts and claims against the county treasury such that the stern requirements of KRS 68.300 are met.
Actually the fiscal court must carefully consider its probable revenues, under the tax structure, when submitting the budget for approval of the state local finance officer. See KRS 68.250.