AN ACT relating to school district finances.

UNOFFICIAL COPY 26 RS BR 2251
Page 1 of 17
XXXX 3/3/2026 1:38 PM Jacketed
AN ACT relating to school district finances. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 160 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) Each local board of education, with the assistance of the district superintendent 5
and district finance officer, shall establish a budget for each fiscal year as 6
follows: 7
(a) On or before January 31, the superintendent shall submit to the local board 8
for review at a public meeting a draft budget that provides line item 9
estimated revenues and proposed expenditures for the subsequent fiscal 10
year; 11
(b) On or before May 31: 12
1. And at least two (2) weeks prior to the public meeting required by 13
subparagraph 2. of this paragraph, the superintendent shall submit to 14
the local board a complete proposed tentative budget for the local 15
board's consideration; and 16
2. At a public meeting of the local board: 17
a. The local board shall review the proposed tentative budget; and 18
b. After any discussion or amendment, the local board shall adopt a 19
tentative budget for the subsequent fiscal year; and 20
(c) On or before September 30: 21
1. And at least two (2) weeks prior to the meeting required by 22
subparagraph 2. of this paragraph, the superintendent shall: 23
a. Submit to the local board a complete proposed working budget 24
for the local board's consideration; 25
b. Submit to the local board a report explaining: 26
i. The projected revenues from the various taxes levied by the 27
UNOFFICIAL COPY 26 RS BR 2251
Page 2 of 17
XXXX 3/3/2026 1:38 PM Jacketed
district; 1
ii. The appropriations that the district expects to receive from 2
state and federal sources; 3
iii. The projected expenditures for personnel, transportation, 4
maintenance, and materia ls for the operation of the 5
district; 6
iv. Any one (1) time major expenses expected for the year, 7
including those for special projects or programs; 8
v. The projected revenues and expenditures associated with 9
restricted funds, including facilities funds; 10
vi. The costs associated with debts incurred by the district; and 11
vii. How the minimum reserve required in subsection (2) of this 12
section shall be maintained; and 13
c. Deliver the items in subdivisions a. and b. of this subparagraph 14
in a digital format to local board members. However, if a local 15
board member requests the items also be delivered in physical 16
format, the superintendent shall provide those within one (1) 17
business day of the request in the format requested; 18
2. At a public meeting of the local board: 19
a. The superintendent shall present to the local board: 20
i. The proposed working budget; and 21
ii. The report required in subparagraph 1.b. of this 22
paragraph; 23
b. The local board shall review the proposed working budget; and 24
c. After any discussion or amendment, the local board shall adopt a 25
working budget for the fiscal year; and 26
3. The local board shall submit to the Kentucky Board of Education the 27
UNOFFICIAL COPY 26 RS BR 2251
Page 3 of 17
XXXX 3/3/2026 1:38 PM Jacketed
adopted working budget for final approval. 1
(2) A superintendent shall not propose and a local board of education shall not adopt 2
a draft, tentative, or working budget that does not include a minimum reserve of 3
at least two percent (2%) of the total budget. 4
Section 2. KRS 156.200 is amended to read as follows: 5
(1) The commissioner of education or designee[chief state school officer] shall: 6
(a) Receive and examine all reports required by law or by the Kentucky Board of 7
Education;[ and, in person or through his assistants, shall ] 8
(b) Examine and advise on the expenditur es, business methods , and accounts of 9
all:[ all ] 10
1. Boards of education; and[ all ] 11
2. Institutions placed under the management and control of the Department 12
of Education as established in KRS 156.010; and[. He shall ] 13
(c) See that all: 14
1. Financial accounts and educational records[accounts] are accurately 15
and neatly kept; and[ that all ] 16
2. Reports are made according to the forms adopted by the Kentucky 17
Board of Education. 18
(2) (a) If the commissioner of education has reason to suspect that there has been 19
waste, fraud, fiscal mismanagement, or inaccurate financial accounts or 20
educational records at a school district, the commissioner of education or 21
designee shall examine the expenditures, business methods, accounts, 22
financial accounts and educational recor ds of the local board of education 23
to enforce state law. 24
(b) The commissioner of education may consider the following in determining 25
to act under paragraph (a) of this subsection: 26
1. An independent auditor or the Auditor of Public Accounts issues an 27
UNOFFICIAL COPY 26 RS BR 2251
Page 4 of 17
XXXX 3/3/2026 1:38 PM Jacketed
audit or examination report that includes: 1
a. A finding of a material weakness in internal control; 2
b. A significant deficiency that remains unresolved from a prior 3
audit; 4
c. A qualified or adverse audit opinion; or 5
d. Repeated findings related to fiscal noncom pliance within two (2) 6
consecutive audit cycles; 7
2. A local board of education approves: 8
a. A tentative budget or working budget with a general fund reserve 9
of less than two percent (2%); or 10
b. An audited annual financial report reflecting a general fund 11
reserve of less than two percent (2%); 12
3. A documented failure to follow the local board's duly adopted fiscal or 13
financial policies, as identified through audit findings or financial 14
review by the Kentucky Department of Education; and 15
4. A determination by the department, following a review of relevant 16
financial records, that fiscal practices present a material risk 17
requiring intervention or corrective action. 18
(c) Upon a determination by the commissioner of education of waste, fraud, 19
fiscal mismanagement, o r inaccurate financial accounts or educational 20
records, the commissioner may require any of the following as determined 21
necessary to correct the issue: 22
1. Targeted financial or budgeting training for the district's finance 23
officer, superintendent, or local board members; and 24
2. The submission of additional financial reports, corrective action 25
plans, or other documentation that are directly related to the issue. 26
(d) The commissioner of education shall report any findings to the Kentucky 27
UNOFFICIAL COPY 26 RS BR 2251
Page 5 of 17
XXXX 3/3/2026 1:38 PM Jacketed
Board of Education al ong with any actions taken under paragraph (c) of 1
this subsection. 2
(e) Any determination made or action taken under paragraph (c) of this 3
subsection may be appealed to the Kentucky Board of Education, which 4
shall consider the appeal within thirty (30) days of its being filed. 5
Section 3. KRS 157.440 is amended to read as follows: 6
(1) (a) Notwithstanding any statutory provisions to the contrary, effective for school 7
years beginning after July 1, 1990, the board of education of each school 8
district may levy an equivalent tax rate as defined in [ subsection (9)(a) of] 9
KRS 160.470(8)(a) which will produce up to fifteen percent (15%) of those 10
revenues guaranteed by the program to support education excellence in 11
Kentucky. The levy for the 1990 -91 school year shall be made no later than 12
October 1, 1989, and no later than October 1, 1990, fo r the 1991 -92 school 13
year, and by October 1 of each odd -numbered year thereafter. Effective with 14
the 1990-91 school year, revenue generated by this levy shall be equalized at 15
one hundred fifty percent (150%) of the statewide average per pupil 16
assessment. 17
(b) To participate in the Facilities Support Program of Kentucky, the board of 18
education of each school district shall commit at least an equivalent tax rate of 19
five cents ($0.05) to debt service, new facilities, or major renovations of 20
existing school faci lities, or the purchase of land if approved by the 21
commissioner of education as provided in KRS 157.420(4)(b). The five cents 22
($0.05) shall be in addition to the thirty cents ($0.30) required by KRS 23
160.470(8)[(9)] and any levy pursuant to paragraph (a) of this subsection. The 24
levy shall be made no later than October 1 of each odd -numbered year. 25
Eligibility for equalization funds for the biennium shall be based on the 26
district funds committed to debt service on that date. The five cents ($0.05) 27
UNOFFICIAL COPY 26 RS BR 2251
Page 6 of 17
XXXX 3/3/2026 1:38 PM Jacketed
shall be equ alized at one hundred fifty percent (150%) of the statewide 1
average per pupil assessment. The equalization funds shall be committed to 2
debt service to the greatest extent possible, but any excess equalization funds 3
not needed for debt service shall be depo sited to a restricted building fund 4
account. The funds may be escrowed for future debt service or used to address 5
categorical priorities listed in the approved facilities plan pursuant to KRS 6
157.420. 7
(c) The board of education of each school district may contribute the levy 8
equivalent tax rate of five cents ($0.05) and equalization funds for energy 9
conservation measures under guaranteed energy savings contracts pursuant to 10
KRS 45A.345, 45A.352, and 45A.353. Use of these funds, as provided under 11
KRS 45A.353, 56.774, and 58.600 shall be based on the following guidelines: 12
1. Energy conservation measures shall include facility alteration; 13
2. Energy conservation measures shall be identified in the district's 14
approved facility plan pursuant to KRS 157.420; 15
3. The current facility systems are consuming excess maintenance and 16
operating costs; 17
4. The savings generated by the energy conservation measures are 18
guaranteed; 19
5. The levy equivalent tax rate of five cents ($0.05) and equalization funds 20
contributed to the ene rgy conservation measures shall be defined as 21
capital cost avoidance as provided in KRS 45A.345(2) and shall be 22
subject to the restrictions on usage as specified in KRS 45A.352(9); and 23
6. The equipment that is replaced has exceeded its useful life as 24
determined by a life cycle cost analysis. 25
(d) The rate levied by a district board of education under the provisions of this 26
subsection shall not be subject to the public hearing provisions of KRS 27
UNOFFICIAL COPY 26 RS BR 2251
Page 7 of 17
XXXX 3/3/2026 1:38 PM Jacketed
160.470(6)[(7)] or to the recall provisions of KRS 160.470(7)[(8)]. 1
(e) A school district which is at or above the equivalent tax rates permitted under 2
the provisions of the Kentucky Education Reform Act of 1990, 1990 Ky. Acts 3
ch. 476, shall not be required to levy an equivalent tax rate which is lower 4
than the rate levied during the 1989-90 school year. 5
(2) (a) A district may exceed the maximum provided by subsection (1) of KRS 6
160.470 provided that, upon request of the board of education of the district, 7
the county board of elections shall submit to the qualified voter s of the 8
district, in the manner of submitting and voting as prescribed in paragraph (b) 9
of this subsection, the question whether a rate which would produce revenues 10
in excess of the maximum provided by subsection (1) of KRS 160.470 shall 11
be levied. The rate that may be levied under this section may produce revenue 12
up to no more than thirty percent (30%) of the revenue guaranteed by the 13
program to support education excellence in Kentucky plus the revenue 14
produced by the tax authorized by this section. Revenue produced by this levy 15
shall not be equalized with state funds. If a majority of those voting on the 16
question favor the increased rate, the tax levying authority shall, when the 17
next tax rate for the district is fixed, levy a rate not to exceed the rate 18
authorized by the voters. 19
(b) The election shall be held not less than fifteen (15) or more than thirty (30) 20
days from the time the request of the board is filed with the county clerk, and 21
reasonable notice of the election shall be given. The election shal l be 22
conducted and carried out in the school district in all respects as required by 23
the general election laws and shall be held by the same officers as required by 24
the general election laws. The expense of the election shall be borne by the 25
school district. 26
(3) For the 1966 tax year and for all subsequent years for levies which were approved 27
UNOFFICIAL COPY 26 RS BR 2251
Page 8 of 17
XXXX 3/3/2026 1:38 PM Jacketed
prior to December 8, 1965, no district board of education shall levy a tax at a rate 1
under the provisions of this section which exceeds the compensating tax rate as 2
defined in KRS 132.010, except as provided in subsection (4) of this section and 3
except that a rate which has been approved by the voters under this section but 4
which was not levied by the district board of education in 1965 may be levied after 5
it has been r educed to the compensating tax rate as defined in KRS 132.010, and 6
except that in any school district where the rate levied in 1965 was less than the 7
maximum rate which had been approved by the voters, the compensating tax rate 8
shall be computed and may be levied as though the maximum approved rate had 9
been levied in 1965 and the amount of revenue which would have been produced 10
from such maximum levy had been derived therefrom. 11
(4) Notwithstanding the limitations contained in subsection (3) of this section, no tax 12
rate shall be set lower than that necessary to provide such funds as are required to 13
meet principal and interest payments on outstanding bonded indebtedness and 14
payments of rentals in connection with any outstanding school revenue bonds 15
issued under the provisions of KRS Chapter 162. 16
(5) The chief state school officer shall certify the compensating tax rate to the levying 17
authorities. 18
Section 4. KRS 160.390 is amended to read as follows: 19
(1) The superintendent shall devote himself exclusively to his duties. He shall exercise 20
general supervision of the schools of his district, examine their condition and 21
progress, and keep himself informed of the progress in other districts. He shall 22
prepare or have prepared all bud gets, salary schedules, and reports required of his 23
board by statute or the Kentucky Board of Education. He shall advise himself of 24
the need of extension of the school system of the district, shall receive and examine 25
reports from teachers and other school officers, and shall make reports from time to 26
time as required by the rules of his board or as directed by the board. He shall be 27
UNOFFICIAL COPY 26 RS BR 2251
Page 9 of 17
XXXX 3/3/2026 1:38 PM Jacketed
responsible to the board for the general condition of the schools. He shall be 1
responsible for all personnel actions includin g hiring, assignments, transfer, 2
dismissal, suspension, reinstatement, promotion, and demotion and reporting the 3
actions to the local board. 4
(2) All personnel actions by the superintendent as described in subsection (1) of this 5
section shall be recorded in the minutes of the local board of education at the next 6
meeting after the action is taken and shall not be effective prior to receipt of written 7
notice of the personnel action by the affected employee from the superintendent. 8
Section 5. KRS 160.460 is amended to read as follows: 9
(1) All school taxes shall be levied by the board of education of each school district. 10
The tax-levying authority shall levy an ad valorem tax within the limits prescribed 11
in KRS 160.470, which w ill obtain for the school district the amount of money 12
needed as shown in the district's working[general school] budget submitted under 13
Section 1 of this Act[the provisions of KRS 160.470]. 14
(2) The tax-levying authority shall make an annual school levy not later than July 1. 15
The school levy shall not be made until the working[general school] budget has 16
been received and approved by the Kentucky Board of Education. The failure of the 17
authority to make the levy by the date prescribed shall not invalidate any levy made 18
thereafter. 19
(3) All school taxes shall be levied on all property subject to local taxation in the 20
jurisdiction of the tax -levying authority. If the school levy is to be made upon the 21
city assessment, which is hereby authorized for independent sch ool districts 22
embraced by designated cities, the clerk of the city shall furnish to the school 23
district or districts which the city embraces, the assessed valuation of property 24
subject to local taxation in the school district, as determined by its tax asse ssor. If 25
the school levy is to be made upon the county assessment the county clerk shall 26
furnish to the proper school district or districts the assessed valuation of property 27
UNOFFICIAL COPY 26 RS BR 2251
Page 10 of 17
XXXX 3/3/2026 1:38 PM Jacketed
subject to local taxation in the district or districts, as certified by the Kentu cky 1
Department of Revenue. No later than July 1, 1994, all real property located in the 2
state and subject to local taxation shall be assessed at one hundred percent (100%) 3
of fair cash value. 4
(4) As used in this section, "designated city" means a city clas sified as a city of the 5
first, second, third, or fourth class as of January 1, 2014, under the city 6
classification system in effect prior to January 1, 2015. The Department of 7
Education shall, on or before January 1, 2015, create an official registry listi ng the 8
cities that qualify as a "designated city" under this section and shall publish that 9
registry on its website[Web site]. 10
Section 6. KRS 160.470 is amended to read as follows: 11
(1) (a) Notwithstanding any statutory provisions to the contrary, no district board of 12
education shall levy a general tax rate which will produce more revenue, 13
exclusive of revenue from net assessment growth a s defined in KRS 132.010, 14
than would be produced by application of the general tax rate that could have 15
been levied in the preceding year to the preceding year's assessment, except as 16
provided in subsections (8) and (9) [(9) and (10)] of this section and KR S 17
157.440. 18
(b) If an election is held as provided for in KRS 132.017 and the question should 19
fail, such failure shall not reduce the "...general tax rate that could have been 20
levied in the preceding year...," referred to in subsection (1)(a) of this sectio n, 21
for purposes of computing the general tax rate for succeeding years. 22
In the event of a merger of school districts, the limitations contained in this section 23
shall be based upon the combined revenue of the merging districts, as computed 24
under the provisions of this section. 25
(2) No district board of education shall levy a general tax rate within the limits imposed 26
in subsection (1) of this section which respectively exceeds the compensating tax 27
UNOFFICIAL COPY 26 RS BR 2251
Page 11 of 17
XXXX 3/3/2026 1:38 PM Jacketed
rate defined in KRS 132.010, except as provided in subsection s (8) and (9)[(9) and 1
(10)] of this section, KRS 157.440, and KRS 157.621, until the district board of 2
education has complied with the provisions of subsection (6)[(7)] of this section. 3
(3) Upon receipt of property assessments from the Department of Revenu e, the 4
commissioner of education shall certify the following to each district board of 5
education: 6
(a) The general tax rate that a district board of education could levy under the 7
provisions of subsection (1) of this section, and the amount of revenue 8
expected to be produced; 9
(b) The compensating tax rate as defined in KRS 132.010 for a district's general 10
tax rate the amount of revenue expected to be produced; 11
(c) The general tax rate which will produce, respectively, no more revenue from 12
real property, exclusive of revenue from new property, than four percent (4%) 13
over the amount of revenue produced by the compensating tax rate defined in 14
KRS 132.010, and the amount of revenue expected to be produced. 15
(4) Upon completion of action on property assessment data , the Department of 16
Revenue shall submit certified property assessment data as required in KRS 17
133.125 to the chief state school officer. 18
(5) Within thirty (30) days after the district board of education has received its 19
assessment data, the rates levied s hall be forwarded to the Kentucky Board of 20
Education for its approval or disapproval. The failure of the district board of 21
education to furnish the rates within the time prescribed shall not invalidate any 22
levy made thereafter. 23
(6) [(a) Each district board of education shall, on or before January 31 of each 24
calendar year, formally and publicly examine detailed line item estimated 25
revenues and proposed expenditures for the subsequent fiscal year. On or 26
before May 30 of each calendar year, each district board of education shall 27
UNOFFICIAL COPY 26 RS BR 2251
Page 12 of 17
XXXX 3/3/2026 1:38 PM Jacketed
adopt a tentative working budget which shall include a minimum reserve of 1
two percent (2%) of the total budget. 2
(b) Each district board of education shall submit to the Kentucky Board of 3
Education no later than September 30, a close est imate or working budget 4
which shall conform to the administrative regulations prescribed by the 5
Kentucky Board of Education. 6
(7) ](a) Except as provided in subsections (8) and (9)[(9) and (10)] of this section and 7
KRS 157.440, a district board of education proposing to levy a general tax 8
rate within the limits of subsection (1) of this section which exceed the 9
compensating tax rate defined in KRS 132.010 shall hold a public hearing to 10
hear comments from the public regarding the proposed tax rate. The hearin g 11
shall be held in the principal office of the taxing district or, in the event the 12
taxing district has no office, or the office is not suitable for such a hearing, the 13
hearing shall be held in a suitable facility as near as possible to the geographic 14
center of the district. 15
(b) The district board of education shall advertise the hearing by causing the 16
following to be published at least twice for two (2) consecutive weeks, in the 17
newspaper of largest circulation in the county, a display type advertisement o f 18
not less than twelve (12) column inches: 19
1. The general tax rate levied in the preceding year, and the revenue 20
produced by that rate; 21
2. The general tax rate for the current year, and the revenue expected to be 22
produced by that rate; 23
3. The compensating general tax rate, and the revenue expected from it; 24
4. The revenue expected from new property and personal property; 25
5. The general areas to which revenue in excess of the revenue produced in 26
the preceding year is to be allocated; 27
UNOFFICIAL COPY 26 RS BR 2251
Page 13 of 17
XXXX 3/3/2026 1:38 PM Jacketed
6. A time and place for the public hearing which shall be held not less than 1
seven (7) days nor more than ten (10) days after the day that the second 2
advertisement is published; 3
7. The purpose of the hearing; and 4
8. A statement to the effect that the General Assembly has required 5
publication of the advertisement and the information contained herein. 6
(c) In lieu of the two (2) published notices, a single notice containing the required 7
information may be sent by first -class mail to each person owning real 8
property, addressed to the p roperty owner at his residence or principal place 9
of business as shown on the current year property tax roll. 10
(d) The hearing shall be open to the public. All persons desiring to be heard shall 11
be given an opportunity to present oral testimony. The distric t board of 12
education may set reasonable time limits for testimony. 13
(7)[(8)] (a) That portion of a general tax rate, except as provided in subsections (8) 14
and (9)[(9) and (10)] of this section, KRS 157.440, and KRS 1 57.621, levied 15
by an action of a district board of education which will produce, respectively, 16
revenue from real property, exclusive of revenue from new property, more 17
than four percent (4%) over the amount of revenue produced by the 18
compensating tax rate defined in KRS 132.010, shall be subject to a recall 19
vote or reconsideration by the district board of education as provided for in 20
KRS 132.017, and shall be advertised as provided for in paragraph (b) of this 21
subsection. 22
(b) The district board of education shall, within seven (7) days following adoption 23
of an ordinance, order, resolution, or motion to levy a general tax rate, except 24
as provided in subsections (8) and (9) [(9) and (10)] of this section and KRS 25
157.440, which will produce revenue from real pro perty, exclusive of revenue 26
from new property as defined in KRS 132.010, more than four percent (4%) 27
UNOFFICIAL COPY 26 RS BR 2251
Page 14 of 17
XXXX 3/3/2026 1:38 PM Jacketed
over the amount of revenue produced by the compensating tax rate defined in 1
KRS 132.010, cause the following to be published, in the newspaper of largest 2
circulation in the county, a display type advertisement of not less than twelve 3
(12) column inches: 4
1. The fact that the district board of education has adopted such a rate; 5
2. The fact that the part of the rate which will produce revenue from real 6
property, exclusive of new property as defined in KRS 132.010, in 7
excess of four percent (4%) over the amount of revenue produced by the 8
compensating tax rate defined in KRS 132.010 is subject to recall; and 9
3. The name, address, and telephone number of the county clerk of the 10
county or urban -county in which the school district is located, with a 11
notation to the effect that that official can provide the necessary 12
information about the petition required to initiate recall of the tax rate. 13
(8)[(9)] (a) Notwithstanding any statutory provisions to the contrary, effective for 14
school years beginning after June 30, 1990, the board of education of each 15
school district shall levy a minimum equivalent tax rate of thirty cents ($0.30) 16
for general school purposes. Equivalent ta x rate is defined as the rate which 17
results when the income collected during the prior year from all taxes levied 18
by the district for school purposes is divided by the total assessed value of 19
property plus the assessment for motor vehicles certified by the Department of 20
Revenue. School districts collecting school taxes authorized by KRS 160.593 21
to 160.597, 160.601 to 160.633, or 160.635 to 160.648 for less than twelve 22
(12) months during a school year shall have included in income collected 23
under this section the pro rata tax collection for twelve (12) months. 24
(b) Failure of a board to comply with paragraph (a) of this subsection may 25
constitute a forfeiture of office by its members pursuant to KRS 415.050 and 26
415.060. 27
UNOFFICIAL COPY 26 RS BR 2251
Page 15 of 17
XXXX 3/3/2026 1:38 PM Jacketed
(9)[(10)] A district board of education m ay levy a general tax rate that will produce 1
revenue from real property, exclusive of revenue from new property, that is four 2
percent (4%) over the amount of the revenue produced by the compensating tax rate 3
as defined in KRS 132.010. 4
Section 7. KRS 160.473 is amended to read as follows: 5
(1) In the event that a general tax rate applicable to real property levied by a district 6
board of education will produce a percentage increase in revenue from personal 7
property less than the percentage increase in revenue from real property, the district 8
board of education may levy a general tax rate applicable to personal property 9
which will produce the same percentage increase in revenue from personal property 10
as the percentage increase in revenue from real property; however, in no event shall 11
the general tax rate levied by the district board of education applicable to personal 12
property exceed the prior year general tax rate applicable to personal property 13
levied by the respective district board of education. 14
(2) The general tax rate applicable to personal property levied by a district board of 15
education under the provisions of subsection (1) of this section shall not be subject 16
to the public hearing provisions of KRS 160.470 (6)[(7)] and to the recall provisions 17
of KRS 160.470(7)[(8)]. 18
Section 8. KRS 160.530 is amended to read as follows: 19
The money collected by taxation under the provisions of KRS 160.460 to 160.520 and 20
other school money shall be expend ed by the board of education in accordance with the 21
working[recommendations contained in the] budget submitted to and approved by the 22
Kentucky Board of Education. 23
Section 9. KRS 160.550 is amended to read as follows: 24
(1) No superintendent shall recommend and no board member shall knowingly vote for 25
an expenditure in excess of the income and revenue of any year, as shown by the 26
working budget adopted by the board and approved by the Kentucky Board of 27
UNOFFICIAL COPY 26 RS BR 2251
Page 16 of 17
XXXX 3/3/2026 1:38 PM Jacketed
Education, except for a purpose for which bonds have been voted or in case of an 1
emergency declared by the Kentucky Board of Education. 2
(2) Any school district having authorized an expenditure in violation of subsection (1) 3
of this section may be so certified at any time by the Kentucky Board of Education. 4
A district so certified shall thereafter, any contrary statutory provisions 5
notwithstanding, make no expenditure of money, give no authorization involving 6
the expenditure of money, and make no employment, purchase, or contract , unless 7
the chief state school officer has approved in writing, as fiscally sound and 8
necessary, the expenditure, authorization, employment, purchase, or contract. Any 9
expenditure, authorization, employment, purchase, or contract made in violation of 10
this subsection shall be void. 11
(3) Any school district subject to the provisions of subsection (2) of this section shall so 12
remain until such time as the Kentucky Board of Education has approved, in 13
conformity with Section 1 of this Act [KRS 160.470] , a working budget for the 14
district for a succeeding fiscal year. 15
(4) In addition to the penalties set forth in KRS 160.990, any person who knowingly 16
expends or authorizes the expenditure of school district funds or who knowingly 17
authorizes or executes any employment , purchase, or contract, in violation of this 18
section, shall be jointly and severably liable in person and upon any official bond he 19
has given to such district to the extent of any payments on the void claim. For 20
purposes of this section, "knowingly" shall mean a person acts with respect to 21
conduct or to a circumstance described by a statute defining an offense when he is 22
aware that his conduct is of that nature or that the circumstance exists. 23
Section 10. KRS 424.250 is amended to read as follows: 24
At the same time that copies of the budget of a school district are filed with the 25
clerk of the tax levying authority for the district, as provided in Section 1 of this 26
Act[KRS 160.470] , the board of education of the district sh all cause the budget to be 27
UNOFFICIAL COPY 26 RS BR 2251
Page 17 of 17
XXXX 3/3/2026 1:38 PM Jacketed
advertised for the district by publishing a copy of the budget in a newspaper and on the 1
district's website. 2