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Ryan Barrow,
Executive Director
About
Learn about The Commonwealth of Kentucky, including Featured News, Key Projects, Active Debt Issuing Entities, SPBC, TAK, and ALCo, and Office of Financial Management.
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About The Commonwealth of Kentucky
The Commonwealth of Kentucky was granted statehood on June 1, 1792, making it the fifteenth state in the Union and the first state west of the Appalachian Mountains. Bordered by mountains on the east and gently rolling plains in the west, the heart of the state is the Bluegrass region, giving Kentucky its nickname as the Bluegrass State.
Located in Central Kentucky, Mammoth Cave is the world's longest cave and is the second oldest tourist attraction in the United States, having first been promoted in 1816. Kentucky is known as the Horse Capital of the World and is the home of the most famous horse race in the world, the Kentucky Derby. The Derby has taken place every year since 1875 in Louisville, Kentucky. It is one of the few sporting events not postponed or delayed during the World Wars.
Kentucky's location and infrastructure lend itself to being a natural fit for several industries, including manufacturing, agriculture, and bourbon. Kentucky is the largest bourbon provider in the world, producing approximately 95% of the global bourbon supply. Items for aerospace, primary metals, food, beverages, as well as service industries such as logistics and transportation are all major exports of Kentucky. Kentucky has a rich history in the automotive industry and ranks third in the total number of vehicles produced every year.
Featured News
July 20, 2023
News
Governor Beshear Secures Largest Budget Surplus, Rainy Day Fund and Most Jobs Filled in State History
Today, Gov. Andy Beshear announced that his administration secured the largest General Fund budget surplus and Rainy Day Fund as well as the most jobs filled in state history.
June 29, 2023
News
Second Major Credit Agency Gives Kentucky a Boost
Today, Gov. Andy Beshear announced that his administration has secured a second credit rating increase from a major agency, this time from S&P Global Ratings.
In general, the rating is a measure of the state’s ability to pay debts and the overall health of Kentucky’s economy. The Governor said the increased confidence in Kentucky’s financial outlook will mean lower costs for taxpayers on the state’s investments in critical infrastructure projects, like roads, bridges and schools. It also means that public employee pensions are more secure.
May 11, 2023
Press Release
Fitch Upgrades Kentucky's IDR to 'AA' from 'AA-'; Outlook Stable
Fitch Ratings - New York - 11 May 2023: Fitch Ratings has upgraded the Commonwealth of Kentucky's (the commonwealth) Long-Term Issuer Default Rating (IDR) to 'AA' from 'AA-' and has likewise upgraded the ratings on Kentucky's annual appropriation-backed debt and other commonwealth IDR-linked debt by one notch to 'AA-' from 'A+'.
The Rating Outlook is Stable.
In conjunction with the upgrade of the commonwealth's IDR, Fitch has upgraded the ratings as noted below on various credits linked to the IDR:
--SPBC revenue and revenue refunding bonds, SPBC road fund revenue and revenue refunding bonds, SPBC judicial branch agency fund revenue bonds, Kentucky Turnpike Authority economic development revenue and revenue refunding bonds, Kentucky ALCo general and road fund project and project refunding notes, ALCo general fund first series funding notes, Kentucky Infrastructure Authority 2001 revenue and revenue refunding bonds, and the Lexington-Fayette Urban County Government Public Facilities Corp. lease revenue bonds upgraded to 'AA-' from 'A+';
--SPBC agency fund revenue and revenue refunding bonds, project no. 102, 103, 114 and 116 issued for public universities and based on the intercept of commonwealth higher education aid upgraded to 'AA-' from 'A+';
--SPBC agency fund revenue bonds, project nos. 105 and 113 issued for the Kentucky River Authority upgraded to 'AA-' from 'A+';
--SPBC agency fund revenue bonds, project. no. 97 and project no. 120 issued for its Department of Military Affairs related to the Blue Grass Station project upgraded to 'AA-' from 'A+';
--SPBC agency fund revenue bonds, project no. 104 issued for the Kentucky State Fair Board upgraded to 'AA-' from 'A+';
--Kentucky school aid intercept program upgraded to 'AA-' from 'A+';
--Commonwealth of Kentucky Payment Obligations - Next Generation, PPP counterparty obligations for the Kentucky Wired Project upgraded to 'A+' from 'A'.
Key Projects
Active Debt Issuing Entities
State Property and Buildings Commission
The State Property and Buildings Commission (SPBC) is an independent agency of the Commonwealth with power, subject to approval by and in cooperation with the Cabinet, to finance the acquisition of real estate and the construction and equipping of building projects and other public projects for any agency of the Commonwealth. SPBC is authorized to execute lease agreements with those state agencies requesting SPBC to issue revenue bonds, which leases provide for the payment of lease rentals to SPBC in order to make payments on the revenue bonds issued in the name of SPBC. Prior approval of projects and appropriations of debt service by the General Assembly are required for SPBC to issue debt.
Turnpike Authority of Kentucky (TAK)
The Turnpike Authority of Kentucky (TAK) is authorized, subject to the limitations contained in the Biennial Appropriations Act and terms of written agreements with the Transportation Cabinet, to construct, reconstruct, maintain, repair and operate turnpike projects, resource recovery road projects, and economic development road projects, to lease such projects to the Transportation Cabinet and to issue its revenue bonds, revenue refunding bonds, revenue notes and revenue bond anticipation notes to finance such projects. Prior approval of projects and appropriation of debt service by the General Assembly are required for TAK to issue debt.
Kentucky Asset/Liability Commission (ALCo)
The Kentucky Asset/Liability Commission (ALCo) was created by the General Assembly to develop policies and strategies to minimize the impact of fluctuating interest rates on the Commonwealth’s interest-sensitive assets and interest-sensitive liabilities. ALCo is authorized to issue tax and revenue anticipation notes, project notes and funding notes to provide financing of capital projects and cash flow borrowings to meet the working capital needs of the Commonwealth. Prior approval of projects and appropriation by the General Assembly are required for ALCo to issue debt, exclusive of cash flow borrowings within a fiscal year.
The State Universities
Kentucky’s public colleges and universities (1), with prior approval and appropriation of debt service by the General Assembly, may use debt financing for capital projects, including the construction of educational buildings, housing, and dining facilities; informational technology projects; and equipment.
Kentucky public universities are:
- Eastern Kentucky University
- Kentucky Community and Technical College System
- Kentucky State University
- Morehead State University
- Murray State University
- Northern Kentucky University
- University of Kentucky
- University of Louisville
- Western Kentucky University
Kentucky Housing Corporation (KHC)
The Kentucky Housing Corporation (KHC) is a de jure municipal corporation and political subdivision of the Commonwealth established to serve a public purpose by increasing the supply of decent, safe and sanitary residential housing for persons and families of lower and moderate-income through, among other things, (i) originating or participating in the origination of insured low-interest construction loans, (ii) originating or participating in the origination of insured low-interest mortgage loans and (iii) purchasing or participating in the purchase of insured mortgage loans; in each case upon KHC’s determination that construction loans or mortgage loans, as the case may be, have been refused in writing, wholly or in part, by private lenders in the Commonwealth on reasonably equivalent terms and conditions. KHC is statutorily limited to $5 billion of debt outstanding.
Kentucky Infrastructure Authority (KIA)
The Kentucky Infrastructure Authority (KIA) is a de jure municipal corporation and political subdivision of the Commonwealth, created to engage in programs of financial assistance to governmental agencies in the state with respect to the construction and acquisition of infrastructure projects. KIA currently has four active loan programs, two of which are federally assisted through the Environmental Protection Agency. Prior appropriation of debt service by the General Assembly is required for KIA’s revolving loan programs to issue debt. Other KIA loan programs are statutorily limited to debt outstanding of $500 million without legislative authorization.
Kentucky Higher Education Student Loan Corporation (KHESLC)
The Kentucky Higher Education Student Loan Corporation (KHESLC) was established to provide a program of financing, making and purchasing student loans in the Commonwealth. KHESLC is statutorily limited to $5 billion of debt outstanding.
Kentucky Economic Development Finance Authority (KEDFA)
The Kentucky Economic Development Finance Authority (KEDFA) was created to cooperate with local development agencies in their efforts to promote the expansion of business and job opportunities in Kentucky, to foster economic development and prevent unemployment through the retention, promotion, and development of health care and health-related facilities, and to issue revenue bonds. KEDFA utilizes low-interest loans, grants, and tax credits to developing businesses and manufacturing entities expanding or locating facilities in the Commonwealth.
Kentucky Public Transportation Infrastructure Authority (KPTIA)
The Kentucky Public Transportation Infrastructure Authority (KPTIA) was established in 2009 by the Kentucky General Assembly to review, approve, and monitor certain significant transportation projects within the Commonwealth and between the Commonwealth and the State of Indiana and, if necessary, to assist with the operation, financing, and management of those projects. Prior approval of projects by the General Assembly is required for debt issuance.
SPBC, TAK, and ALCo
State Property & Buildings Commission (SPBC)
Authorization: KRS 56.440 – KRS 56.590 and KRS 58.020
Historical Official Statements
Overview: Established in 1949 and reconstituted Oct 1, 1976, SPBC is an independent agency with the power to finance the acquisition of real estate, the construction and equipping of building projects, and other public projects for any agency of the Commonwealth. The Executive Director of the Office of Financial Management serves as secretary to the Commission.
Board Members:
Governor (Chair)
Lieutenant Governor (Vice-Chair)
Attorney General
Secretary, Finance and Administration Cabinet
Secretary, Cabinet for Economic Development
State Controller
State Budget Director
Board Meetings: As needed
Quorum: Any four (4) members of the Commission or their alternates constitute a quorum. A majority vote of the quorum provides authorization to transact the business of the Commission.
Objective: Issue revenue bonds to provide financing for capital construction projects and other financing programs approved by the General Assembly.
Turnpike Authority of Kentucky (TAK)
Authorization: KRS 175 and Kentucky Constitution General Provisions Section 230
Historical Official Statements
Overview: The Authority is an independent agency of the Commonwealth with the power to construct, acquire, finance, and operate road systems. The Authority’s Secretary and Treasurer are elected outside of the membership of the Authority.
Board Members:
Governor (Chair)
Lieutenant Governor (Vice-Chair)
Secretary, Finance and Administration Cabinet
Secretary, Cabinet for Economic Development
Secretary, Transportation Cabinet
Attorney General
State Highway Engineer
Board Meetings: As needed
Quorum: Any four (4) members of the Authority or their alternates constitute a quorum. A majority vote of the quorum provides authorization to transact the business of the Authority.
Objective: To perform essential governmental functions and to serve the public in constructing, acquiring, financing, and operating turnpike and other road projects for the use, safety, convenience, and general welfare of the traveling public.
Kentucky Asset/Liability Commission (ALCo)
Authorization: KRS 56.860 – 56.869 200 and KAR 23:010
Historical Official Statements
Overview: ALCo was established in 1997 to develop policies and strategies to minimize the impact of fluctuating interest rates on the Commonwealth’s interest-sensitive assets and interest-sensitive liabilities. The Executive Director of the Office of Financial Management serves as secretary to the Commission.
Board Members:
Secretary, Finance and Administration Cabinet (Chair)
Attorney General
State Treasurer
Executive Director of the Office of Controller
State Budget Director
Board Meetings: As needed.
Quorum: Any three (3) members of the Commission, or their alternates, constitute a quorum. A majority vote of the quorum provides authorization to transact the business of the Commission. Each alternate shall be a person on the staff of the appointing member or shall be in the employ of the appointing member’s agency or department of the government of the Commonwealth.
Objective: Minimize the impact of fluctuating receipts of revenues on the budget of the Commonwealth and fluctuating interest rates on the Commonwealth's interest-sensitive assets and interest-sensitive liabilities. Additionally, it provides financing for public projects of the Commonwealth and state agencies.
Office of Financial Management
The Office of Financial Management (OFM) is a department within the Office of the Controller, which is dedicated to providing quality, and efficient financial services to the Commonwealth of Kentucky and its agencies. OFM is the centralized debt office and is tasked with the responsibility of issuance, management, review, and approval of all debt issued by the Commonwealth and its agencies. OFM also coordinates and monitors cash needs and investments of approximately $3-4 billion of state funds.
OFM serves as primary staff to the State Property and Buildings Commission (SPBC), the Kentucky Asset/Liability Commission (ALCo), the Turnpike Authority of Kentucky (TAK), the State Investment Commission (SIC), Kentucky Private Activity Bond Allocation Committee (KPABAC) and the Kentucky Local Correctional Facilities Construction Authority (KLCFCA).
Ryan Barrow
Executive Director
(502) 564-2924
ryan.barrow@ky.gov
The Debt Group:
Steve Starkweather
steven.starkweather@ky.gov
Bethany Padgett
bethany.padgett@ky.gov
Billy Aldridge
billy.aldridge@ky.gov
Melissa Perry
melissad.perry@ky.gov
Kaitlin Craigmyle
kaitlin.craigmyle@ky.gov