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State reports $418 million general‑fund surplus; rainy‑day fund rises to about $3 billion unobligated
Summary
Secretary Hicks told the Committee on Impeachment that fiscal‑year 2026 closed with an undesignated fund balance of $481.8 million and a reported general‑fund surplus of $418.3 million, with much of the surplus driven by higher tax receipts and FEMA reimbursements. The budget reserve trust fund’s unobligated balance is roughly $3.0 billion after recent deposits and planned withdrawals.
Secretary Hicks, identified in the hearing as the finance secretary, told the committee the state finished FY26 with revenues ‘‘$476,000,000 more than the official estimate, [and] $320,000,000 more than the original enacted estimate.’’ He said components of the gain included a 4.6% rise in individual income tax receipts and a 6.4% increase in sales and use taxes.
Hicks said the undesignated fund balance was $481,800,000 and the general‑fund surplus shown on the closeout was $418,300,000. He identified FEMA reimbursements (about $124,000,000) for Eastern Kentucky flood response as a significant source of year‑end receipts. Hicks also described how portions of the surplus were reserved or appropriated by recent budget actions, leaving an unobligated budget reserve trust fund balance of about $3.0 billion, roughly 18% of projected FY28 general‑fund revenues.
"We just put in 418 from the surplus of fiscal 26," Hicks said when describing the deposit to the rainy‑day fund. Committee members confirmed the deposit had been recorded and would appear in state accounting (eMARS). Hicks agreed to provide committee staff with additional line‑item detail on unexpended appropriations and other carryforwards when requested.
