County & Municipal 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. (Currently the 2000 Census). These funds are to be used for the construction, reconstruction, and maintenance of county roads and city streets. (See KRS 177.320 (2) and 177.365) Counties and cities have two choices as to how to receive their funds. They can elect to receive a monthly check processed by Governor's Office for Local Development, or can participate in the ORSR Cooperative Program.

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).

In addition, 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.