AN ACT relating to school district finances.

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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
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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
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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 160.431 is amended to read as follows: 5
(1) The local district superintendent shall appoint a finance officer who shall be 6
responsible for the cash, investment, and financial management of the school 7
district. 8
(2) (a) A person initially employed as a school finance officer on or after July 1, 9
2015, shall obtain certification from the Department of Education prior to 10
holding the position and entering the duties of the position of school finance 11
officer. 12
(b) The Kentucky Board of Education shall promulgate administrative regulations 13
to prescribe the cr iteria and procedures to be used in the certification process 14
for a school finance officer. 15
(c) The administrative regulations promulgated under this subsection shall 16
specify: 17
1. The initial qualification requirements for school finance officer 18
certification; 19
2. The certification application and appeal process; and 20
3. The certification renewal process. 21
(3) The school finance officer shall be required to complete forty -two (42) hours of 22
continuing education every two (2) years from a provider approved by the 23
Department of Education. The Kentucky Board of Education shall promulgate 24
administrative regulations to identify and prescribe the criteria for fulfilling the 25
requirements of this subsection. The administrative regulations shall specify: 26
(a) The topics of continuing education; 27
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(b) Qualifications for continuing education providers; 1
(c) Consequences for failure to meet the continuing education requirement; and 2
(d) Requirements for reinstatement of school finance officer certification. 3
(4) (a) The finance officer shall present a detailed monthly financial report for board 4
approval to include the previous month's revenues and expenditures of the 5
district. The monthly report shall be posted on the district's Web site for a 6
minimum of six (6) months after its approval. 7
(b) Within six (6) months following the end of each fiscal year, the finance 8
officer shall submit to the Kentucky Department of Education a detailed 9
annual financial report to include the district's total assets, liabilities, 10
revenues, and expenditures. The annual report shall be posted on the district's 11
financial disclosure website required in Section 3 of this Act [Web site] and 12
department's website[Web site] for a minimum of two (2) years. 13
(c) 1. The Department of Education shall review each dist rict's annual 14
financial report and shall provide, within two (2) months of receipt, the 15
local board of education a written report indicating the financial status 16
of the district. The department's written report shall be posted on the 17
department's website[Web site] and the district financial disclosure 18
website required in Section 3 of this Act [district's Web site] for a 19
minimum of two (2) years. 20
2. The commissioner of education shall annually present to the Interim 21
Joint Committee on Education a copy of the department's written report 22
for each district. 23
(d) Nothing in this subsection shall lessen the obligation of a school district to 24
publish its financial statements in accordance with KRS 160.463. 25
Section 3. KRS 160.463 is amended to read as follows: 26
(1) The local board of education of each school district shall direct its superintendent 27
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to publish on the school district's main website a link to a district financial 1
disclosure website that contains: 2
(a) The following finan cial reports to be published monthly for the previous 3
month: 4
1. The accounts payable invoice vendor report; 5
2. The accounts payable check reconciliation report; 6
3. The balance sheet; 7
4. The vendor payment report from the start of the fiscal year to the dat e 8
of the report; 9
5. The monthly financial report required under Section 2 of this Act; 10
6. A summary of any purchases made through a district procurement 11
card; and 12
7. Credit card statements; 13
(b) The following: 14
1. The employment contract of the superintendent, including any 15
appendices; 16
2. Within five (5) days of approval by the local board of education, any 17
amendments to the contract of the superintendent; 18
3. A link to the Kentucky Department of Education's website on school 19
district personnel information, including superintendent 20
compensation; and 21
4. Upon separation of the superintendent: 22
a. The gross salary paid to the superintendent during the 23
superintendent's final fiscal year; 24
b. The total sick leave days accumu lated by the superintendent 25
immediately prior to separation and the amount paid to the 26
superintendent for the accumulated sick leave days upon 27
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separation; and 1
c. The total annual and personal days accumulated by the 2
superintendent immediately prior to sepa ration and the amount 3
paid to the superintendent for the accumulated annual and 4
personal leave days upon separation; 5
(c) The following annual reports: 6
1. By January 1 of each year, a report detailing any other compensation 7
provided to the superintendent du ring the past year beyond what is 8
reported under paragraph (b) of this subsection; 9
2. Upon receipt by the district under KRS 156.275, the district's 10
independent financial audit report; and 11
3. Upon adoption under Section 1 of this Act, the district's workin g 12
budget; and 13
(d) The reports required under Section 2 of this Act. 14
(2) (a) The local[school] board of education of each school district [public school 15
system] shall direct its superintendent to publish the complete annual financial 16
statement and the school report card annually: 17
1.[(a)] In the newspaper of the largest general circulation in the county; 18
2.[(b)] Electronically on a website[Web site] of the school district; or 19
3.[(c)] By printed copy at a prearranged site at the main branch of the 20
public library within the school district. 21
(b)[(2)] If publication on a website[Web site] of the school district or by printed 22
copy at the public library is chosen, the superintendent shall be directed to 23
publish notification in the newspaper of the largest circulation in the county as 24
to the location where the document can be viewed by the public. 25
(c)[(3)] The notification shall include the address of the library or the electronic 26
address of the website[Web site] where the documents can be viewed. 27
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(d)[(4)] Each system's financial statements shall be prepared and presented on a 1
basis consistent with that of the other systems. 2
Section 4. KRS 157.440 is amended to read as follows: 3
(1) (a) Notwithstanding any statutory provisi ons to the contrary, effective for school 4
years beginning after July 1, 1990, the board of education of each school 5
district may levy an equivalent tax rate as defined in [ subsection (9)(a) of] 6
KRS 160.470(8)(a) which will produce up to fifteen percent (15 %) of those 7
revenues guaranteed by the program to support education excellence in 8
Kentucky. The levy for the 1990 -91 school year shall be made no later than 9
October 1, 1989, and no later than October 1, 1990, for the 1991 -92 school 10
year, and by October 1 o f each odd -numbered year thereafter. Effective with 11
the 1990-91 school year, revenue generated by this levy shall be equalized at 12
one hundred fifty percent (150%) of the statewide average per pupil 13
assessment. 14
(b) To participate in the Facilities Support Program of Kentucky, the board of 15
education of each school district shall commit at least an equivalent tax rate of 16
five cents ($0.05) to debt service, new facilities, or major renovations of 17
existing school facilit ies, or the purchase of land if approved by the 18
commissioner of education as provided in KRS 157.420(4)(b). The five cents 19
($0.05) shall be in addition to the thirty cents ($0.30) required by KRS 20
160.470(8)[(9)] and any levy pursuant to paragraph (a) of th is subsection. The 21
levy shall be made no later than October 1 of each odd -numbered year. 22
Eligibility for equalization funds for the biennium shall be based on the 23
district funds committed to debt service on that date. The five cents ($0.05) 24
shall be equali zed at one hundred fifty percent (150%) of the statewide 25
average per pupil assessment. The equalization funds shall be committed to 26
debt service to the greatest extent possible, but any excess equalization funds 27
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not needed for debt service shall be deposit ed to a restricted building fund 1
account. The funds may be escrowed for future debt service or used to address 2
categorical priorities listed in the approved facilities plan pursuant to KRS 3
157.420. 4
(c) The board of education of each school district may con tribute the levy 5
equivalent tax rate of five cents ($0.05) and equalization funds for energy 6
conservation measures under guaranteed energy savings contracts pursuant to 7
KRS 45A.345, 45A.352, and 45A.353. Use of these funds, as provided under 8
KRS 45A.353, 56.774, and 58.600 shall be based on the following guidelines: 9
1. Energy conservation measures shall include facility alteration; 10
2. Energy conservation measures shall be identified in the district's 11
approved facility plan pursuant to KRS 157.420; 12
3. The cu rrent facility systems are consuming excess maintenance and 13
operating costs; 14
4. The savings generated by the energy conservation measures are 15
guaranteed; 16
5. The levy equivalent tax rate of five cents ($0.05) and equalization funds 17
contributed to the energy conservation measures shall be defined as 18
capital cost avoidance as provided in KRS 45A.345(2) and shall be 19
subject to the restrictions on usage as specified in KRS 45A.352(9); and 20
6. The equipment that is replaced has exceeded its useful life as 21
determined by a life cycle cost analysis. 22
(d) The rate levied by a district board of education under the provisions of this 23
subsection shall not be subject to the public hearing provisions of KRS 24
160.470(6)[(7)] or to the recall provisions of KRS 160.470(7)[(8)]. 25
(e) A school district which is at or above the equivalent tax rates permitted under 26
the provisions of the Kentucky Education Reform Act of 1990, 1990 Ky. Acts 27
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ch. 476, shall not be required to levy an equivalent tax rate which is lower 1
than the rate levied during the 1989-90 school year. 2
(2) (a) A district may exceed the maximum provided by subsection (1) of KRS 3
160.470 provided that, upon request of the board of education of the district, 4
the county board of elections shall submit to the qualified voters o f the 5
district, in the manner of submitting and voting as prescribed in paragraph (b) 6
of this subsection, the question whether a rate which would produce revenues 7
in excess of the maximum provided by subsection (1) of KRS 160.470 shall 8
be levied. The rate that may be levied under this section may produce revenue 9
up to no more than thirty percent (30%) of the revenue guaranteed by the 10
program to support education excellence in Kentucky plus the revenue 11
produced by the tax authorized by this section. Revenue produced by this levy 12
shall not be equalized with state funds. If a majority of those voting on the 13
question favor the increased rate, the tax levying authority shall, when the 14
next tax rate for the district is fixed, levy a rate not to exceed the rate 15
authorized by the voters. 16
(b) The election shall be held not less than fifteen (15) or more than thirty (30) 17
days from the time the request of the board is filed with the county clerk, and 18
reasonable notice of the election shall be given. The election shall b e 19
conducted and carried out in the school district in all respects as required by 20
the general election laws and shall be held by the same officers as required by 21
the general election laws. The expense of the election shall be borne by the 22
school district. 23
(3) For the 1966 tax year and for all subsequent years for levies which were approved 24
prior to December 8, 1965, no district board of education shall levy a tax at a rate 25
under the provisions of this section which exceeds the compensating tax rate as 26
defined in KRS 132.010, except as provided in subsection (4) of this section and 27
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except that a rate which has been approved by the voters under this section but 1
which was not levied by the district board of education in 1965 may be levied after 2
it has been redu ced to the compensating tax rate as defined in KRS 132.010, and 3
except that in any school district where the rate levied in 1965 was less than the 4
maximum rate which had been approved by the voters, the compensating tax rate 5
shall be computed and may be le vied as though the maximum approved rate had 6
been levied in 1965 and the amount of revenue which would have been produced 7
from such maximum levy had been derived therefrom. 8
(4) Notwithstanding the limitations contained in subsection (3) of this section, no tax 9
rate shall be set lower than that necessary to provide such funds as are required to 10
meet principal and interest payments on outstanding bonded indebtedness and 11
payments of rentals in connection with any outstanding school revenue bonds 12
issued under the provisions of KRS Chapter 162. 13
(5) The chief state school officer shall certify the compensating tax rate to the levying 14
authorities. 15
Section 5. KRS 160.390 is amended to read as follows: 16
(1) The superintendent shall devote himself exclusively to his duties. He shall exercise 17
general supervision of the schools of his district, examine their condition and 18
progress, and keep himself informed of the progress in other districts. He shall 19
prepare or have prepared all budget s, salary schedules, and reports required of his 20
board by statute or the Kentucky Board of Education. He shall advise himself of 21
the need of extension of the school system of the district, shall receive and examine 22
reports from teachers and other school of ficers, and shall make reports from time to 23
time as required by the rules of his board or as directed by the board. He shall be 24
responsible to the board for the general condition of the schools. He shall be 25
responsible for all personnel actions including h iring, assignments, transfer, 26
dismissal, suspension, reinstatement, promotion, and demotion and reporting the 27
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actions to the local board. 1
(2) All personnel actions by the superintendent as described in subsection (1) of this 2
section shall be recorded in th e minutes of the local board of education at the next 3
meeting after the action is taken and shall not be effective prior to receipt of written 4
notice of the personnel action by the affected employee from the superintendent. 5
Section 6. KRS 160.460 is amended to read as follows: 6
(1) All school taxes shall be levied by the board of education of each school district. 7
The tax-levying authority shall levy an ad valorem tax within the limits prescribed 8
in KRS 160.470, which will obtain for the school district the amount of money 9
needed as shown in the district's working[general school] budget submitted under 10
Section 1 of this Act[the provisions of KRS 160.470]. 11
(2) The tax-levying authority shall make an annual school levy not la ter than July 1. 12
The school levy shall not be made until the working[general school] budget has 13
been received and approved by the Kentucky Board of Education. The failure of the 14
authority to make the levy by the date prescribed shall not invalidate any lev y made 15
thereafter. 16
(3) All school taxes shall be levied on all property subject to local taxation in the 17
jurisdiction of the tax -levying authority. If the school levy is to be made upon the 18
city assessment, which is hereby authorized for independent school districts 19
embraced by designated cities, the clerk of the city shall furnish to the school 20
district or districts which the city embraces, the assessed valuation of property 21
subject to local taxation in the school district, as determined by its tax assesso r. If 22
the school levy is to be made upon the county assessment the county clerk shall 23
furnish to the proper school district or districts the assessed valuation of property 24
subject to local taxation in the district or districts, as certified by the Kentucky 25
Department of Revenue. No later than July 1, 1994, all real property located in the 26
state and subject to local taxation shall be assessed at one hundred percent (100%) 27
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of fair cash value. 1
(4) As used in this section, "designated city" means a city classif ied as a city of the 2
first, second, third, or fourth class as of January 1, 2014, under the city 3
classification system in effect prior to January 1, 2015. The Department of 4
Education shall, on or before January 1, 2015, create an official registry listing the 5
cities that qualify as a "designated city" under this section and shall publish that 6
registry on its website[Web site]. 7
Section 7. KRS 160.470 is amended to read as follows: 8
(1) (a) Notwithstanding any statutory prov isions to the contrary, no district board of 9
education shall levy a general tax rate which will produce more revenue, 10
exclusive of revenue from net assessment growth as defined in KRS 132.010, 11
than would be produced by application of the general tax rate t hat could have 12
been levied in the preceding year to the preceding year's assessment, except as 13
provided in subsections (8) and (9) [(9) and (10)] of this section and KRS 14
157.440. 15
(b) If an election is held as provided for in KRS 132.017 and the question should 16
fail, such failure shall not reduce the "...general tax rate that could have been 17
levied in the preceding year...," referred to in subsection (1)(a) of this section, 18
for purposes of computing the general tax rate for succeeding years. 19
In the event of a merger of school districts, the limitations contained in this section 20
shall be based upon the combined revenue of the merging districts, as computed 21
under the provisions of this section. 22
(2) No district board of education shall levy a general tax rate within the limits imposed 23
in subsection (1) of this section which respectively exceeds the compensating tax 24
rate defined in KRS 132.010, except as provided in subsections (8) and (9)[(9) and 25
(10)] of this section, KRS 157.440, and KRS 157.621, until the district board of 26
education has complied with the provisions of subsection (6)[(7)] of this section. 27
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(3) Upon receipt of property assessments from the Department of Revenue, the 1
commissioner of education shall certify the following to each district board of 2
education: 3
(a) The general tax rate that a district board of education could levy under the 4
provisions of subsection (1) of this section, and the amount of revenue 5
expected to be produced; 6
(b) The compensating tax rate as defined in KRS 132.010 for a district's general 7
tax rate the amount of revenue expected to be produced; 8
(c) The general tax rate which wi ll produce, respectively, no more revenue from 9
real property, exclusive of revenue from new property, than four percent (4%) 10
over the amount of revenue produced by the compensating tax rate defined in 11
KRS 132.010, and the amount of revenue expected to be produced. 12
(4) Upon completion of action on property assessment data, the Department of 13
Revenue shall submit certified property assessment data as required in KRS 14
133.125 to the chief state school officer. 15
(5) Within thirty (30) days after the district board of education has received its 16
assessment data, the rates levied shall be forwarded to the Kentucky Board of 17
Education for its approval or disapproval. The failure of the district board of 18
education to furnish the rates within the time prescribed shall not invalidate any 19
levy made thereafter. 20
(6) [(a) Each district board of education shall, on or before January 31 of each 21
calendar year, formally and publicly examine detailed line item estimated 22
revenues and proposed expenditures for the subsequent fiscal ye ar. On or 23
before May 30 of each calendar year, each district board of education shall 24
adopt a tentative working budget which shall include a minimum reserve of 25
two percent (2%) of the total budget. 26
(b) Each district board of education shall submit to the K entucky Board of 27
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Education no later than September 30, a close estimate or working budget 1
which shall conform to the administrative regulations prescribed by the 2
Kentucky Board of Education. 3
(7) ](a) Except as provided in subsections (8) and (9)[(9) and (10)] of this section and 4
KRS 157.440, a district board of education proposing to levy a general tax 5
rate within the limits of subsection (1) of this section which exceed the 6
compensating tax rate defined in KRS 132.010 shall hold a public hearing to 7
hear comments from the public regarding the proposed tax rate. The hearing 8
shall be held in the principal office of the taxing district or, in the event the 9
taxing district has no office, or the office is not suitable for such a hearing, the 10
hearing shall be held in a suitable facility as near as possible to the geographic 11
center of the district. 12
(b) The district board of education shall advertise the hearing by causing the 13
following to be published at least twice for two (2) consecutive weeks, in the 14
newspaper of largest circulation in the county, a display type advertisement of 15
not less than twelve (12) column inches: 16
1. The general tax rate levied in the preceding year, and the revenue 17
produced by that rate; 18
2. The general tax rate for the current year, and the revenue expected to be 19
produced by that rate; 20
3. The compensating general tax rate, and the revenue expected from it; 21
4. The revenue expected from new property and personal property; 22
5. The general areas to which revenue in excess of the revenue produced in 23
the preceding year is to be allocated; 24
6. A time and place for the public hearing which shall be held not less than 25
seven (7) days nor more than ten (10) days after the day that the second 26
advertisement is published; 27
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7. The purpose of the hearing; and 1
8. A statement to the effect that the General Assembly has required 2
publication of the advertisement and the information contained herein. 3
(c) In lieu of the two (2) published notices, a single notice containing the required 4
information may be sent by first -class mail to each person owning real 5
property, addressed to the property owner at his residence or principal place 6
of business as shown on the current year property tax roll. 7
(d) The hearing shall be open to the public. All persons desiring to be heard sh all 8
be given an opportunity to present oral testimony. The district board of 9
education may set reasonable time limits for testimony. 10
(7)[(8)] (a) That portion of a general tax rate, except as provided in subsections (8) 11
and (9)[(9) and (10)] of this section, KRS 157.440, and KRS 157.621, levied 12
by an action of a district board of education which will produce, respectively, 13
revenue from real property, exclusive of revenue from new property, more 14
than four percent (4%) over the amount of revenue produced by t he 15
compensating tax rate defined in KRS 132.010, shall be subject to a recall 16
vote or reconsideration by the district board of education as provided for in 17
KRS 132.017, and shall be advertised as provided for in paragraph (b) of this 18
subsection. 19
(b) The district board of education shall, within seven (7) days following adoption 20
of an ordinance, order, resolution, or motion to levy a general tax rate, except 21
as provided in subsections (8) and (9) [(9) and (10)] of this section and KRS 22
157.440, which will produce revenue from real property, exclusive of revenue 23
from new property as defined in KRS 132.010, more than four percent (4%) 24
over the amount of revenue produced by the compensating tax rate defined in 25
KRS 132.010, cause the following to be published, in the newspaper of largest 26
circulation in the county, a display type advertisement of not less than twelve 27
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(12) column inches: 1
1. The fact that the district board of education has adopted such a rate; 2
2. The fact that the part of the rate which will produce revenue from real 3
property, exclusive of new property as defined in KRS 132.010, in 4
excess of four percent (4%) over the amount of revenue produced by the 5
compensating tax rate defined in KRS 132.010 is subject to recall; and 6
3. The name, address, and telephone number of the county clerk of the 7
county or urban -county in which the school district is located, with a 8
notation to the effect that that official can provide the necessary 9
information about the petition required to initiate recall of the tax rate. 10
(8)[(9)] (a) Notwithstanding any statutory provisions to the contrary, effective for 11
school years beginning after June 30, 1990, the board of education of each 12
school district shall levy a minimum equivalent tax rate of thirty cents ($0.30) 13
for general school purposes. Equivalent tax rate is defined as the rate which 14
results when the income collected during the prior year from all taxes levied 15
by the district for school purposes is divided by the total as sessed value of 16
property plus the assessment for motor vehicles certified by the Department of 17
Revenue. School districts collecting school taxes authorized by KRS 160.593 18
to 160.597, 160.601 to 160.633, or 160.635 to 160.648 for less than twelve 19
(12) month s during a school year shall have included in income collected 20
under this section the pro rata tax collection for twelve (12) months. 21
(b) Failure of a board to comply with paragraph (a) of this subsection may 22
constitute a forfeiture of office by its member s pursuant to KRS 415.050 and 23
415.060. 24
(9)[(10)] A district board of education may levy a general tax rate that will produce 25
revenue from real property, exclusive of revenue from new property, that is four 26
percent (4%) over the amount of the revenue produced by the compensating tax rate 27
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as defined in KRS 132.010. 1
Section 8. KRS 160.473 is amended to read as follows: 2
(1) In the event that a general tax rate applicable to real property levied by a district 3
board of educatio n will produce a percentage increase in revenue from personal 4
property less than the percentage increase in revenue from real property, the district 5
board of education may levy a general tax rate applicable to personal property 6
which will produce the same percentage increase in revenue from personal property 7
as the percentage increase in revenue from real property; however, in no event shall 8
the general tax rate levied by the district board of education applicable to personal 9
property exceed the prior year general tax rate applicable to personal property 10
levied by the respective district board of education. 11
(2) The general tax rate applicable to personal property levied by a district board of 12
education under the provisions of subsection (1) of this section s hall not be subject 13
to the public hearing provisions of KRS 160.470 (6)[(7)] and to the recall provisions 14
of KRS 160.470(7)[(8)]. 15
Section 9. KRS 160.530 is amended to read as follows: 16
The money collected by taxation under the provisions of KRS 160.460 to 160.520 and 17
other school money shall be expended by the board of education in accordance with the 18
working[recommendations contained in the] budget submitted to and approved by the 19
Kentucky Board of Education. 20
Section 10. KRS 160.550 is amended to read as follows: 21
(1) No superintendent shall recommend and no board member shall knowingly vote for 22
an expenditure in excess of the income and revenue of any year, as shown by the 23
working budget adopted by the board and approved by the Kentucky Board of 24
Education, except for a purpose for which bonds have been voted or in case of an 25
emergency declared by the Kentucky Board of Education. 26
(2) Any school district having authorized an expenditure in v iolation of subsection (1) 27
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of this section may be so certified at any time by the Kentucky Board of Education. 1
A district so certified shall thereafter, any contrary statutory provisions 2
notwithstanding, make no expenditure of money, give no authorization involving 3
the expenditure of money, and make no employment, purchase, or contract, unless 4
the chief state school officer has approved in writing, as fiscally sound and 5
necessary, the expenditure, authorization, employment, purchase, or contract. Any 6
expenditure, authorization, employment, purchase, or contract made in violation of 7
this subsection shall be void. 8
(3) Any school district subject to the provisions of subsection (2) of this section shall so 9
remain until such time as the Kentucky Board of Educati on has approved, in 10
conformity with Section 1 of this Act [KRS 160.470] , a working budget for the 11
district for a succeeding fiscal year. 12
(4) In addition to the penalties set forth in KRS 160.990, any person who knowingly 13
expends or authorizes the expenditur e of school district funds or who knowingly 14
authorizes or executes any employment, purchase, or contract, in violation of this 15
section, shall be jointly and severably liable in person and upon any official bond he 16
has given to such district to the extent o f any payments on the void claim. For 17
purposes of this section, "knowingly" shall mean a person acts with respect to 18
conduct or to a circumstance described by a statute defining an offense when he is 19
aware that his conduct is of that nature or that the circumstance exists. 20
Section 11. KRS 424.250 is amended to read as follows: 21
At the same time that copies of the budget of a school district are filed with the clerk of 22
the tax levying authority for the district, as provided in Section 1 of this Act [KRS 23
160.470], the board of education of the district shall cause the budget to be a dvertised for 24
the district by publishing a copy of the budget in a newspaper and on the district's 25
website. 26
Section 12. Upon the effective date of this Act, the school board of each school 27
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district shall direct its super intendent publish on the district financial disclosure website 1
required in Section 3 of this Act the most recent information available to the district for 2
the items listed in subsection (1) of Section 3 of this Act. 3