A three-judge panel ruled that the group Common Cause had sought a restraining order, which the judges said is not appealable.

Common Cause has challenged Fletcher's authority to run state government without a budget. The citizens group claims the Kentucky Constitution forbids Fletcher to spend unappropriated state money.

The General Assembly failed to pass a budget before adjourning on April 13. Kentucky began a new fiscal year July 1 without a budget. In its place, Fletcher issued a 90-day "public services continuation plan."

Common Cause's motion sought a court order blocking state Treasurer Jonathan Miller from releasing unappropriated funds after Sept. 30.

Franklin County Circuit Judge Roger Crittenden ruled against Common Cause, which then took its case to the appellate court.

Richard Beliles, Common Cause state chairman, had told the appeals court that the motion was intended to put "judicial pressure" on Fletcher and the legislature to pass a budget.

Common Cause contended that what it requested from the trial judge was a temporary injunction, which the appeals court can review.

The group's motion contained a reference to a restraining order, the appeals court said. The trial court, in its order, referred to a restraining order, the panel said.

"Its denial of the motion, in substance as well as in form, was the denial of a restraining order, not an injunction," said Judge William L. Knopf of Louisville, who wrote for the panel.

"If this was not a result Common Cause expected, the burden was on it to seek clarification from the trial court."

Judges R.W. Dyche III of London and Rick A. Johnson of Mayfield joined in the opinion.

Beliles said Friday he would refile his motion in the circuit court. His new motion will clearly request a temporary injunction, he said.

Beliles said he lost the initial rounds on a procedural matter without the appeals court taking up the merits of his case.

"This is not the end," he said in a telephone interview. "I'm definitely going to go ahead and correct the procedural problem."

Fletcher's attorney, Sheryl Snyder, said he was pleased but not surprised by the ruling.

"So far, the position that the governor has taken has been vindicated by the courts at every turn," Snyder said.