The Office of Rural Secondary Roads (ORSR) administers three revenue sharing programs funded by motor fuel taxes as provided by Kentucky Revised Statutes (KRS) 177.320 through 177.366. These programs include the County and Municipal Road Aid Cooperative programs and the Rural Secondary Program.
County & Municipal Road Aid
Each fiscal year all 120 counties, 418 incorporated cities, and 46 unincorporated urban places are allocated county and municipal road aid. County Road Aid funding is based on the Fifth's Formula and Municipal Road Aid funding is based on population as determined by the most recent Census. These funds are to be used for the construction, reconstruction, and maintenance of county roads and city streets. Counties and cities have two choices as to how to receive their funds. They can elect to receive a monthly check processed by the Kentucky Department for Local Government, or can participate in the ORSR Cooperative Programs.
Participants in the cooperative programs do not receive their road aid as a monthly check. Instead participants receive a portion of their funds 3 times a year. Typically the first check makes 60% of the total anticipated road aid available to the county or city. The second check makes an additional 30%-35% available and the third and final installment is the remaining balance based on the actual revenues tabulated after the end of the fiscal year (June 30).
Participants have 3% of their road aid funds withheld. This money is then placed in emergency funds. (Municipal Aid Co-op and County Road Aid Co-op each have their own respective emergency funds.) Participants in the cooperative are eligible to request emergency funding for projects. Non participants are not.
How to Join
For more information on enrolling, please see the Invitation Letters in the Documents section of this page.
If a county or city is not currently participating in the cooperative program, they may enroll between April 1 and June 30 each year. If a county or city chooses to participate, they will enter into a contract with the Transportation Cabinet committing to participate in the program for the entire fiscal year.
For more information on joining the County Road Aid Cooperative Program or the Municipal Aid Cooperative Program, please contact our office.
Rural Secondary Program
The Rural Secondary (RS) Program is funded by 22.2% of the motor fuels tax revenue. These funds are used for the construction, reconstruction and maintenance of secondary and rural roads in each county. Allocation of RS funds is determined using the Fifths Formula. The Transportation Cabinet is responsible for expending all Rural Secondary Program funds.