In a letter dated Friday, May 15, and delivered across the state’s judicial network, Kentucky Supreme Court Chief Justice Debra Hembree Lambert warned that the Kentucky Court of Justice is “preparing for layoffs, restructuring and operational cuts” — following budget decisions that have been made following the 2026 session of the Kentucky General Assembly.
She said the Judicial Branch’s final two-year budget “fell short of requests” made to fully fund court operations through the 2026-2028 biennium, and that the court system had requested additional funding to cover long-standing budget shortfalls, rising software and contractor costs, salary increases and additional staffing for circuit court clerks and the Administrative Office of the Courts.
Early versions of House Bill 504, she added, would have reduced Judicial Branch spending by roughly $5.8 million in fiscal year 2027 and $10.2 million in fiscal year 2028, while also failing to provide enough funding to balance court operations.
Those early proposals, she added, could have led to the elimination of Specialty Courts, including Drug Court, Mental Health Court, and Veterans Treatment Court programs.
Lobbying efforts by court officials, employees, and citizens, however, led lawmakers to some approved changes that added $5 million to court operations, allowed additional revenue through increased filing fees, and restored access to reserve funds.
Lambert said those changes preserved some current programs, but were still not enough to avoid budget reductions.
The Judicial Branch now projects a deficit of up to $12.6 million in fiscal year 2027 and up to $17 million in fiscal year 2028, and as such, costs will “be addressed.”
As part of the changes, 170 positions within the Administrative Office of the Courts’ Office of Statewide Programs will be abolished effective August 1, while 108 new positions will be created, most of them frontline roles. Another 45 employees currently serving probationary periods could also face dismissal if they do not complete probation before August 1.
The restructuring will affect the Department of Family and Juvenile Services, the Department of Specialty Courts, and the Department of Pretrial Services. Affected employees will be allowed to apply for open positions across the court system, with tenured employees eligible for job placement assistance.
The court system has also announced several cost-cutting measures beginning July 15. Those include eliminating long-vacant positions, reducing conference and training budgets by 50 percent, ending the paid judicial intern program, limiting use of retired judges, increasing reliance on online legal resources, and restricting state-funded travel.
State funding for Specialty Courts treatment programs will also be eliminated, with additional reductions planned for drug testing expenses through participant caps or fewer tests.
Lambert also confirmed a court-wide hiring freeze implemented in April will remain in place at least through mid-July, while officials continue reviewing operations and staffing needs.
In addition, the Kentucky Supreme Court approved changes to Judicial Branch pay practices that suspend automatic service-based salary increases beginning July 15. However, employees will still receive the 2 percent raises approved for all state workers in the state budget for fiscal years 2027 and 2028.
Lambert said the decisions were made to preserve frontline court services and maintain the long-term stability of Kentucky’s court system.
The immediate News Edge listening area — which is comprised of Trigg, Christian, Todd, Caldwell and Hopkins counties — serves as home to the Third, Fourth, Seventh and 56th districts in Circuit Court, and also as some of the busiest in the Commonwealth.
The future, however, just got a little more difficult.
This is a developing story.
