Committee creates temporary Eastern Kentucky disaster fund framework and authorizes transfers from prior SAFE funds

The House Appropriations and Revenue Committee on Tuesday advanced House Bill 5544 as amended by PHS 1, creating a special fund to track state disaster relief tied to the presidential major-declaration FEMA-4860-DR-KY and authorizing transfers from prior Eastern Kentucky (EK) and Western Kentucky (WK) SAFE funds.

Chair Petrie summarized the bill’s structure: it establishes a fund (indexed to the presidential declaration FEMA-4860-DR-KY), allows that the fund may receive state appropriations, gifts, grants and federal funds, designates funds to not lapse and to carry forward, and states that interest earned remains in the fund. The bill includes an emergency clause.

The substitute continues past practice by defining eligible recipients (city, county, urban-county government, consolidated local government, nonprofit, public utilities, state agencies, and school districts located in the declared disaster area with disaster-related needs) and eligible expenses including replacement/renovation of publicly owned buildings, essential government facilities, reimbursement for response services, infrastructure repair for public utilities, planning assistance, and assistance to school districts.

The bill provides temporary fiscal liquidity assistance to local entities pending federal reimbursements; recipients are required to reimburse the state fund if FEMA or other sources later reimburse those expenditures. Chair Petrie noted there was “around 23,000,000 left of the emergency cap for this year” and that the bill would allow up to $48,000,000 to be transferred from prior EK and WK SAFE funds into the current year and that another $50,000,000 could be available after July 1 under the emergency cap.

Committee members pressed for cost estimates and timing. Representative Fleming and others noted the administration had not yet provided firm damage estimates; Chair Petrie and staff said estimates were still developing and could firm up in the coming days. Representative Gentry asked whether the temporary funds would be sufficient until FEMA reimbursements arrive; Chair Petrie said the situation remains fluid and that special-session mechanisms exist if additional appropriations were needed.

The committee adopted PHS 1, the bill’s title amendment, and voted to report the bill favorably to the full House by roll call (20-0). The measure will proceed to the floor for further consideration and any required appropriations or transfers would be executed per the bill’s language and applicable budget rules.