157.420 Restrictions governing expenditure of funds from public school fund -- Use
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/ky/157-420A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
of historic settlement school facilities -- Use of capital outlay funds after mid-
year adjustment -- Evaluation of school buildings. Public school funds made available to the credit of each district during any year shall be received, held, and expended by the district board, subject to the provisions of law and administrative regulations of the Kentucky Board of Education. The following restrictions shall govern the expenditure of funds from the public school fund:
(1)The salary paid any rank of teachers shall be at least equivalent to the amount set
forth in the biennial budget schedule for each rank and experience for a term of one
hundred eighty-five
(185)days for full-time service during the regular school year.
(2)Beginning with the 2004-2006 biennium, the Kentucky Board of Education shall
not approve any working budget or salary schedule for local boards of education for
any school year unless the one hundred eighty-five
(185)day salary schedule for
certified staff has been adjusted over the previous year's salary schedule by a
percentage increase at least equal to the cost-of-living adjustment that is provided
state government workers under the biennial budget. The base funding level in the
program for support education excellence in Kentucky as defined in KRS 157.320
shall be increased by the statewide dollar value of the annual required cost-of-living
percentage adjustment that shall be estimated on the sum of the previous year's
statewide teachers' salaries.
(3)A district that compensates its teachers or employees for unused sick leave at the
time of retirement, pursuant to KRS 161.155, may create an escrow account to
maintain the amount of funds necessary to pay teachers or employees who qualify
for receipt of the benefit. The fund is limited to not more than fifty percent (50%) of
the maximum liability for the current year to be determined according to the
number of staff employed by the district on September 15. Interest generated by the
account shall be calculated as part of the total amount. The funds shall not be used
for any purpose other than compensation for unused sick leave at the time of
retirement and shall not be considered as part of the general fund balance in
determining available local revenue for purposes of KRS 157.620.
(a)The per pupil capital outlay allotment for each district from the public school
fund and from local sources shall be kept in a separate account and may be
used by the district only for capital outlay projects approved by the
commissioner of education in accordance with requirements of law, and based
on a survey made in accordance with administrative regulations of the
Kentucky Board of Education. These funds shall be used for the following
capital outlay purposes:
1. For direct payment of construction costs;
2. For debt service on voted and funding bonds;
3. For payment or lease-rental agreements under which the board
eventually will acquire ownership of a school plant;
4. For the retirement of any deficit resulting from overexpenditure for
capital construction, if such deficit resulted from an emergency declared
by the Kentucky Board of Education under KRS 160.550; and
5. As a reserve fund for the above-named purposes, to be carried forward
in ensuing budgets.
(b)A district may submit a request to the commissioner of education to use funds
from the per pupil capital outlay allotment to purchase land for a new school
or to modify an existing school if the project is included on the district facility
plan for completion within eight
(8)years. The land shall not be included in
the calculation of the school district's unmet need. The commissioner may
grant or deny the district's request at his or her discretion.
(c)A district which has experienced an increase in adjusted average daily
attendance, as defined by administrative regulation, of twenty percent (20%)
or more over a five
(5)year period may submit a request to the commissioner
of education to use capital outlay funds for the operation of a new school for
the first two
(2)years following its opening. The commissioner may grant or
deny the district's request at his or her discretion.
(d)A local school district may submit a request to the commissioner of education
to use capital outlay funds for maintenance expenditures or for the purchase of
property insurance without forfeiting the district's participation in the School
Facilities Construction Commission program. Maintenance requests may
include other priorities that are not considered major renovations, such as
repair, renovation, or system upgrades that are necessary to maintain the
integrity of an existing school facility.
(5)The district may contribute capital outlay funds for energy conservation measures
under guaranteed energy savings contracts pursuant to KRS 45A.345, 45A.352, and
45A.353. Use of these funds, provided in KRS 45A.353, 56.774, and 58.600, shall
be based on the following:
(a)The energy conservation measures shall include facility alteration;
(b)The energy conservation measures shall be identified in the district's approved
facility plan;
(c)The current facility systems are consuming excess maintenance and operating
costs;
(d)The savings generated by the energy conservation measures are guaranteed;
(e)The capital outlay funds contributed to the energy conservation measures shall
be defined as capital cost avoidance as provided in KRS 45A.345(2) and shall
be subject to the restrictions on usage as specified in KRS 45A.352(9); and
(f)The equipment that is replaced shall have exceeded its useful life as
determined by a life-cycle cost analysis.
(6)If any district has a special levy for capital outlay or debt service that is equal to the
capital outlay allotment or a proportionate fraction thereof, and spends the proceeds
of that levy for the above-named purposes, the commissioner of education under
administrative regulations of the Kentucky Board of Education, may authorize the
district to use all or a proportionate fraction of its capital outlay allotment for
current expenses. However, a district which uses capital outlay funds for current
expenses shall not be eligible to participate in the School Facilities Construction
Commission funds, except when the current expenditures are approved by the
commissioner of education under subsection (4)(b) or
(c)of this section.
(7)If a survey shows that a school district has no capital outlay needs as shown in
subsection (4)(a)1., 2., 3., and 4. of this section, upon approval of the commissioner
of education, these funds may be used for school plant maintenance, repair,
insurance on buildings, replacement of equipment, purchase of school buses, and
the purchase of modern technological equipment, including telecommunications
hardware, televisions, computers, and other technological hardware to be utilized
for educational purposes only.
(8)In surveying the schools, the Department of Education shall designate each school
facility as a permanent, functional, or transitional center.
(a)"Permanent center" means a center which meets the program standards
approved by the Kentucky Board of Education, is located so that students are
not subjected to an excessive amount of time being transported to the site, and
has established an attendance area which will maintain enrollment at capacity
but will also avoid overcrowding.
(b)"Functional center" means a center which does not meet all the criteria
established for a permanent facility, but is adequate to meet accreditation
program standards to insure no substantial academic or building deficiency.
The facility plan shall include additions and renovations necessary to meet
current accreditation standards for which federal, state, and local funds may
be used.
(c)"Transitional center" means a center which the local board of education has
determined shall no longer be designated permanent or functional. The center
shall be destined to be closed and shall not be eligible for new construction,
additions, or major renovation. However, the board of education shall
maintain any operating transitional center to provide a safe and healthy
environment for students.
(9)Beginning in fiscal year 2011-2012, the Kentucky Department of Education shall
standardize the process for evaluating the overall quality and condition of all school
buildings across the state. The evaluation process shall:
(a)Result in consistent categorization of buildings for local planning purposes
and for the distribution of state general fund moneys designated for capital
construction;
(b)Be based on measurable, objective criteria;
(c)Include numerical scoring with weights to recognize building components and
characteristics that address:
1. Life safety issues;
2. Compliance with state and federal codes;
3. Compliance with requirements under the Americans with Disabilities
Act;
4. Community spaces;
5. Instructional areas;
6. Mechanical, electrical, plumbing, and other technology systems;
7. Site and exterior building conditions;
8. Age of the buildings;
9. Feasibility of building additions or major renovations;
10. The districts' facility capacities;
11. Current use of temporary facilities; and
12. Projected enrollment growth; and
(d)Use of a third-party evaluator that utilizes an already established software-
based system to perform the first, base-line evaluation.
(10)The Kentucky Board of Education shall promulgate an administrative regulation
upon recommendation of the Kentucky Department of Education and the School
Facilities Construction Commission to implement subsection
(9)of this section.
(11)If a local school board authorized elementary, middle, or secondary education
classes in a facility of a historical settlement school on January 1, 1994, the board
shall continue to use the facilities provided by the settlement school if the facilities
meet health and safety standards for education facilities as required by
administrative regulations. The local school board and the governing body of the
settlement school shall enter into a cooperative agreement that delineates the role,
responsibilities, and financial obligations for each party.
(12)Notwithstanding the provisions of subsections
(4)and
(6)of this section, a local
district that has requested a mid-year adjustment in the support education
excellence in Kentucky funding under KRS 157.360(16) may request permission
from the commissioner of education to use capital outlay funds for the purchase of
school buses or to use the capital outlay funds for increased operational expenses
for the first three
(3)years following the increased growth in the district without
forfeiture of the district's participation in the School Facilities Construction
Commission Program. The commissioner may grant or deny the district's request.