AN ACT relating to school district finances.

Create a new section of KRS Chapter 160 to establish the calendar and procedures for a district superintendent and local board of education to adopt a school district budget; require that a budget must include a reserve of not less than 2%; amend KRS 156.200 to authorize the commissioner of education to examine the expenditures, business methods, accounts, financial accounts, and educational records of a local board of education to enforce state law, and to…

Introduced: March 3, 2026

Last action: March 10, 2026

To Primary And Secondary Education (H)

Read the full text Kentucky Legislature LegiScan

AI-generated — always verify with primary sources

Plain-language summary

Beta

This bill sets new rules for how Kentucky school districts create and manage their budgets, including a requirement that each district maintain a financial reserve of at least 2%. It also gives the state Commissioner of Education new authority to review a district's spending and financial records if there is reason to suspect waste, fraud, or mismanagement, and to require additional training or reporting to address any problems found. Who it may affect: local school district administrators, local boards of education, and students and families in districts where financial oversight issues may arise.

Open official bill text (PDF)·Report a problem with the summary