Politics
Kentucky House Bill 312 on Local Revenue Sharing and Louisville Service Funding
The bill revises state revenue formulas for Jefferson County and is projected to alter annual allocations for Louisville Metro Government programs.
How we reported this
Kentucky House Bill 312 revises the state revenue sharing formula that determines how sales tax collections are distributed to counties including Jefferson County. The legislation passed the General Assembly in the 2026 session and takes effect with the July 2027 fiscal year. It affects the portion of state-collected revenue returned to Louisville Metro Government for use in local services.
Current Budget Context
The change occurs during the state's preparation of its 2027-2028 biennial budget. Policy analysts note that the bill modifies the existing distribution model used since 2018. Louisville Metro Government currently receives roughly 18 percent of its general fund from state-shared revenues according to the 2025 Jefferson County budget document.
Local advocates note that the revised formula ties a larger share of the allocation to population growth data from the most recent census. This adjustment is expected to increase the amount directed to Jefferson County by approximately $12 million annually beginning in fiscal year 2028.
Effects on Residents and Services
For Louisville residents the bill could influence funding levels for road maintenance crews and public transit routes operated by the Transit Authority of River City. City budget staff have indicated that the additional revenue would be applied first to street resurfacing contracts in the West End and South Louisville neighborhoods. Residents who rely on Metro Parks facilities may also see changes in operating hours at community centers if the funds are directed toward recreation programs.
The legislation states that counties must report how the shared revenue is spent within 90 days after each fiscal quarter. This reporting requirement applies to Louisville Metro Government and will be submitted to the state Department for Local Government in Frankfort.
Implementation begins with the first quarterly distribution scheduled for October 2027. County officials have started preparing updated revenue projections for the 2027 budget cycle based on the new formula.