As governor, Carroll increased funding for public education and promoted the use of coal as a means of alleviating the 1973 energy crisis. He also oversaw a major reorganization of the state's judicial system following voters' approval of a constitutional amendment in 1975. Many natural and man-made disasters occurred during his term in office, including the Great Blizzard of 1978 and the Beverly Hills Supper Club fire, leading to better safety practices and stricter law enforcement in the state. When Carroll left office, both he and his predecessor were under the cloud of an investigation for an alleged insurance kickback scheme, but Carroll was not convicted of any wrongdoing. In 2004, he was elected to the Kentucky Senate. Re-elected in 2008 and 2012, he won a fourth term without opposition in 2016. He announced shortly after his 88th birthday that he would not run for re-election in 2020.