During the Kentucky Department of Education’s (KDE) Superintendents Webcast, staff discussed the new two-year state budget and its impact on districts.
Included in the budget bill, House Bill 6, was $34.5 million for resource officers (SROs). Associate Commissioner Matt Ross explained that the bill allows KDE to reimburse school districts up to $20,000 for each campus employing at least one SRO. If the funds do not cover all of the campuses, the money will be divided proportionally through a system KDE is developing, Ross said.
Senate Bill (SB) 91 aims to provide relief to districts experiencing real estate growth and a potential cut in funding through the Support Education Excellence in Kentucky (SEEK) funding formula. Chay Ritter, division director in Office of Finance and Operations, said KRS 157.360(17) – which is known as the “4% adjusted assessment rule” – already allows for some relief, so SB 91 would be in addition to that.
Ritter said the bill is specific to real property assessments only – not the assessment used for SEEK calculations – and multiple qualifying events must occur for a district to qualify. Funds must also be available in the SEEK budget appropriation in order for districts to receive the relief.
To qualify for the 2024-25 school year, districts and their boards:
- Must have qualified in 2023-2024 and 2024-25 for the 4% adjusted assessment.
- Must levy the 4% tax rate or greater in 2024-25
- Must have experienced a cumulative growth in real estate assessments from fiscal year 2022-23 to 2024-25 of more than 14.4%. KDE will adjust local effort specific to real property for growth above 14.4%.
For the 2025-26 school year, districts and their boards:
- Must have qualified in 2024-25 and 2025-26 for the 4% adjusted assessment.
- Must levy the 4% tax rate or greater in 2025-26.
- Must have experienced a cumulative growth in real estate assessments from fiscal year 2022-23 to 2025-26 of more than 25.8%. KDE will adjust local effort specific to real property for growth above 25.8%.
Ritter said he expects if a district qualifies, payment will not occur until the SEEK final calculation that occurs on March 1 each year.
Another piece of legislation, House Bill 727, allows local boards of education to issue general obligation bonds up to 2% of their assessed property value. The bonds must be issued through a competitive solicitation process.
Ross said KDE is working with the School Facilities Construction Commission and the Kentucky Office of Financial Management on guidance for districts to break down the legislation and its potential pitfalls.
KDE staff has created legislative guidance to help school leaders navigate other recent legislation. It is available at KDE Legislative Guidance.
Superintendents also heard from the Kentucky Cabinet for Health and Family Services (CHFS) about the Summer Electronic Benefits Transfer (SEBT) program and heard an update on the Kentucky United We Learn Council.
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