The projected expenses of BE NKY, the region’s nonprofit economic development company, are expected to increase in fiscal year 2027, which begins July 1.
The company’s board of directors approved the new budget at its meeting on Tuesday, and although the company will have to draw on its cash reserves to close the gap, its leadership was optimistic that the spending would be worthwhile.
Presentations from BE NKY’s Administrative Project Manager Rachelle Creager and other staff indicated the expenses will take several forms over the next fiscal year, especially increases in marketing, training and the paying of a consultant to aid in the company’s succession planning, which CEO Lee Crume hopes to have hammered out in the six months or so.
This will be the second year the company has had to draw upon its cash reserves. The company projects a rough reserve balance of about $6.5 million at the end of the current fiscal year, on June 30. The company deliberately withholds about $4.2 million in reserves to ensure financial stability and dedicates about $3 million in reserves to fund its various economic development projects.
Revenues v. expenses Current Fiscal Year (2026) Next Fiscal Year (2027) Normal revenues $4,798,750 $5,353,000 Reserve allocation $2,051,812 $1,718,750 Total Budgeted Expense $6,850,562 $7,071,750
Although the company does get some money from investors, most of its funding comes from fees charged on motor vehicle rentals in the region. Kentucky law allows for counties to use such fee collections for economic development by disbursing them to a nonprofit. Boone, Kenton and Campbell counties all have laws on the books to collect a 3% tax on gross rental fees for both conventional car rental companies and ride sharing companies like Uber and Lyft, plus similar commercial programs, and pay it to BE NKY.
| Revenue sources | Current Fiscal Year (2026) | Next Fiscal Year (2027) |
| Motor vehicle fees | $3,550,000 | $4,600,000 |
| Investor campaign | $975,000 | $527,000 |
| Interest revenue | $273,000 | $226,000 |
| Total Revenue | $4,798,750 | $5,353,000 |
Crume admitted that the budget process for fiscal year 2027 had been an “emotional journey.”
“When we first saw $7 million [in expenses] go up on the board there, that felt like a big number,” Crume said, but the point of having such expenditures was to aid in the economic development of the community, he added.
Part of that includes grant pay outs to companies and organizations that support workforce development and other economic initiatives. Grants are paid out on a two-year basis, with fiscal year 2026 serving as the second year in the current cycle. Recipients include education organizations like TradesNKY, Adopt-A-Class and Learning Grove, among others.
“We’ve also, per guidance from the executive committee, allocated a $250,000 placeholder for a [to-be-determined] recipient that could come up during the year,” Creager said.
There was some inquiry among the directors about how the company’s staff determined a return on investment on the expenses and the justifications for how funding was allocated.
“The two big drivers are the target industry studies that we did last year, and reshaping our business development and our marketing communications to support that so that we can be more aggressive and more targeted in who we’re trying to attract,” Crume said, as well as how to redesign the company for future conditions.
The budget passed unanimously.