Kentucky High Court Takes Up Governor’s Budget Moves

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The Kentucky Supreme Court is weighing whether the state has the power to shift fees paid by businesses it regulates to pay off general bills and debts.

The high court heard two challenges to the practice on Wednesday, one from a collection of non-profits and the other from a home builders group.

The issue before the court in both cases is whether the state can take excess funds collected for regulatory purposes and apply the money toward general fund expenses.

Both the charitable gaming outlets and the home builders sued after the state took excess funds in 2008 and applied them toward a $265 million shortfall in the state budget.

The justices did not give an indication as to when they would rule in the two cases.