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 Aid Cooperative programs and the Rural Secondary Program.
County & Municipal Road Aid
Each fiscal year all 120 counties, 421 incorporated cities, and 46 unincorporated urban places are allocated county and municipal aid. Counties receive funding based on the Fifth's Formula and cities are funded based on their 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 Program.
Participants in the cooperative program 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
Prior to the beginning of the fiscal year (July 1), each county and city is sent a letter asking if they wish to participate in the cooperative program. If a county/city chooses to participate, they will enter into an Agreement 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.