Kentucky’s Judicial Branch is warning that House Bill 504, the proposed two-year judicial budget moving through the General Assembly, could force the elimination of Specialty Courts statewide if additional funding is not added before lawmakers finalize the state budget.
According to the Judicial Branch, the current version of House Bill 504 underfunds court operations by $14.3 million in fiscal year 2027 and $18.7 million in fiscal year 2028. Court officials say the funding gap would likely lead to layoffs, furloughs, and significant service reductions, with Specialty Courts among the programs most at risk.
House Bill 504 was approved by the Kentucky House on Feb. 26 by a 94-4 vote, and legislative records show it was sent to a conference committee on March 19 as budget negotiations continue. The bill allocates more than $500 million annually to the Judicial Branch, according to state legislative materials.
Chief Justice of the Commonwealth Debra Hembree Lambert said the scope of the proposed reductions leaves the court system with limited options.
The programs identified as being at risk are Kentucky’s Specialty Courts, which include Drug Courts, Mental Health Courts, and Veterans Treatment Courts. These courts provide treatment-focused supervision for people whose criminal behavior is closely tied to substance use disorders, mental illness, or related challenges. Participants are typically required to complete treatment, submit to frequent drug testing, and remain under close court supervision.
This year marks the 30th anniversary of Kentucky’s Specialty Courts. Judicial officials say the programs have received national recognition and have been used as a model for similar courts in other states.
Drug Courts currently operate in all 120 Kentucky counties and serve approximately 2,500 active participants classified as high risk and high need due to substance use disorders. Mental Health Courts operate in 17 counties and serve 270 participants with serious mental illness or co-occurring substance use disorders. Veterans Treatment Courts operate in eight counties and serve 92 military veterans and service members facing similar challenges.
Court leaders say program outcomes also show recidivism rates below the statewide average, though lawmakers have not yet indicated whether changes will be made to the bill before final passage.
The General Assembly is expected to finalize the state budget on or before next Wednesday, leaving a limited window for possible revisions to House Bill 504.
