KRS 157.069: Definitions -- Distribution of general funds for technology centers and

converted career and technical education centers -- Career and technical

education innovation and support fund -- Distribution of funds to state -

operated area technology cent ers and locally operated career and technical

education -- Oversight by the Office of Career and Technical Education --

Administrative regulations -- Publication of information on Kentucky

Department of Education website.

(1) As used in this section:

(a) "Administrative operations costs" means costs associated with the operations

and staffing of a state -operated area technology center, including but not

limited to personnel, facility costs, building utilities and maintenance, and

custodial and office supplies;

(b) "Approved career and technical education dual credit" means earning a grade

of "C" or higher for a Kentucky Department of Education -approved career

and technical education dual credit course equivalent to three (3) hours of

college credit;

(c) "Approved career and technical education pathway" means a four (4) course

career and technical education pathway approved by the Kentucky

Department of Education that provides a coherent, articulated sequence of

rigorous academic and career -related courses within a career and technical

education program area, and leads to an associate degree, an industry -

recognized certificate or license, or a baccalaureate or higher degree;

(d) "Concentrator" means a student who has earned at least two (2) credits for no

less than two (2) courses in a single career and technical education pathway;

(e) "Converted career and technical education center" means a center providing

locally operated career and technical education for which a local district

assumed authority from the state for the management and control of the center

during the 2020-2021, 2021-2022, or 2022-2023 academic years;

(f) "General-cost career and technical education program" means a career and

technical education program or pathway in which high -cost techni cal

equipment, materials, or facilities are not required;

(g) "General-cost full -time equivalents" means the total number of secondary

students enrolled in general -cost career and technical education programs,

multiplied by the number of hours those studen ts are enrolled, and divided by

six (6) hours;

(h) "High-cost career and technical education program" means a career and

technical education program or pathway in which high -cost equipment,

materials, or facilities are required;

(i) "Locally operated caree r and technical education" means a district program

that provides secondary students with one (1) or more approved career and

technical education pathways;

(j) "State-operated area technology center" means a state -operated secondary

school facility with the primary purpose of offering approved career and

technical education pathways;

(k) "Supplemental funding" or "supplemental funds" means moneys appropriated

by the General Assembly to support qualifying locally operated career and

technical education centers and programs and state -operated area technology

centers and programs based on enrollment and incentive criteria;

(l) "Technical skill attainment" means earn ing an industry -recognized

certification, licensure, or credential as identified by the Kentucky Workforce

Innovation Board pursuant to KRS 158.6455(1)(d) or passing an end -of-

program assessment for articulated postsecondary credit as designated by the

Kentucky Department of Education Office of Career and Technical

Education;

(m) "Weighted high -cost full -time equivalents" means the total number of

secondary students enrolled in high -cost career and technical education

programs, multiplied by the number of c redit hours in which those students

are enrolled, divided by six (6) hours, and multiplied by one and one -half

(1.5); and

(n) "Work-based learning program" means a cooperative education program,

internship, or registered apprenticeship within the student's chosen approved

career and technical education pathway.

(2) The Kentucky Department of Education shall provide funds from the department's

annual general fund appropriation to support the administrative operations costs of

state-operated area technology centers and converted career and technical education

centers.

(3) For converted career and technical education centers, beginning with fiscal year

2024-2025, the Kentucky Department of Education shall deduct from funds

designated for the state -operated area technology centers an amount equal to the

administrative operations costs of each converted career and technical education

center in the amount received by the center in the most recent fiscal year that the

center was under state management and control. T he funds for each converted

career and technical education center shall be divided as follows:

(a) Seventy-five percent (75%) of the funds shall be sent to the local district that

has assumed management and control of the center; and

(b) Twenty-five percen t (25%) of the funds shall be sent to the career and

technical education innovation and support fund established in subsection (4)

of this section.

(4) (a) There is hereby established in the State Treasury a restricted fund to be known

as the career and te chnical education innovation and support fund to receive

the funds allocated under subsection (3)(b) of this section. The fund shall

consist of moneys received from state appropriations, gifts, grants, and federal

funds. The fund shall be administered by t he Office of Career and Technical

Education. Amounts deposited in the fund shall be used for:

1. Supporting innovation in new or emerging career fields;

2. Supporting state-operated area technology centers that may experience

hardship or natural disasters;

3. Personnel costs to provide technical assistance to local districts

providing locally operated career and technical education, including

technical assistance relating to the monitoring and oversight on the use

of supplemental career and technical education funding; and

4. Any other purposes reasonably related to improving student outcomes in

career and technical education.

(b) Notwithstanding KRS 45.229, fund amounts not expended at the close of a

fiscal year shall not lapse but shall be carried forward into the next fiscal year.

(5) Beginning with the 2024 -2025 fiscal year and for each fiscal year thereafter, the

Kentucky Department of Education shall distribute to local districts providing

locally operated career and technical education and to state -operated area

technology centers all general funds designated as supplemental funds to career and

technical education programs, subject to the following:

(a) A local district providing locally operated career and technical education or a

state-operated area t echnology center shall maintain eligibility for receipt of

federal funding pursuant to the Strengthening Career and Technical Education

for the 21st Century Act, Pub. L. No. 115 -224, to be eligible to receive

supplemental funding pursuant to this subsection;

(b) All supplemental funds distributed pursuant to this subsection shall be used to

improve student outcomes in career and technical education pathways for

students in grades nine (9) through twelve (12), including but not limited to

student supplies, r esources, materials, and equipment that is designed for

enhanced quality of instruction in a career and technical education pathway,

the purchase and maintenance of industry standard equipment, assisting

students with achieving technical skill attainment, and supporting career and

technical student organization participation;

(c) 1. Supplemental funds for career and technical education shall be divided

and allocated to each local district providing locally operated career and

technical education and to each state-operated area technology center,

with sixty percent (60%) dedicated for enrollment -based funding and

forty percent (40%) for incentive-based funding.

2. The sixty percent (60%) enrollment -based funding shall be based on a

statewide full-time equivalent calculation of the total weighted high-cost

full-time equivalents and general -cost full -time equivalents during the

prior school year, subject to the following:

a. The department shall then distribute the enrollment -based funds

for each state -operated area technology center or local district

providing locally operated career and technical education based on

the center's or district's proportional share of the combined

weighted high-cost full-time equivalents and general-cost full-time

equivalents of the prior year;

b. The department shall distribute the state -operated area technology

center fund portion to the respective state -operated area

technology centers and the local district fund portion to the

respective local districts; and

c. The department shall classify qualifying programs as either a high-

cost career and technical education program or a general -cost

career and technical education program.

3. The forty percent (40%) incentives -based funding shall be based on an

annual statewide calculation of the total number of qualifying student

incentives. The calculation shall only use students that are in grade

twelve (12) and use the total incentives earned by those students during

secondary education at a state-operated area technology center or within

a local district. Once a student has been included in a year's calculation,

that student shall not be included in any subsequent year's calculation,

subject to the following:

a. Qualifying student incentives for students in their grade twelve

(12) year shall include:

i. Reaching the designation of a concentrator;

ii. Technical skill attainment;

iii. Completing a required number of hours or achieving a

benchmark within a work-based learning program; and

iv. Earning an approved career and technical education dual

credit;

b. The incentives in subdivision a. of this subparagraph shall be

allotted to the state -operated area technology center or local

district in which it was earned. Each type of incentive shall only be

counted once per student at state -operated area technology centers

and once per student at local districts for a maximum of four (4)

incentives per student at state -operated area technology centers

and four (4) incentives at local districts throughout their secondary

career and technical education. For incentive criteria that is

achieved more than once at state-operated area technology centers,

the incentive shall be counted for the state -operated area

technology center whe re it was first achieved. For incentive

criteria that is achieved more than once at local districts, the

incentive shall be counted for the local district where it was first

achieved;

c. The department shall distribute incentives -based funds for each

state-operated area technology center or local district based on the

center's or district's proportional share of the combined number of

qualifying student incentives achieved by students in grade twelve

(12) at a state -operated area technology center or within a local

district throughout their secondary career and technical education.

The incentives -based funds shall be distributed to the state -

operated area technology center or local district in which the

incentive was achieved; and

d. The department shall dis tribute the state -operated area technology

center fund portion to the respective state -operated area

technology centers and the local district fund portion to the

respective local districts;

(d) There shall be no mid-year adjustment to the allocation of career and technical

education supplemental funding for a center or local district; and

(e) Notwithstanding the restriction in paragraph (b) of this subsection, a district

may submit a waiver request to the Office of Career and Technical Education

to use a p ortion of its allocation of supplemental funds for career and

technical education programming for students in grades (5) through eight (8).

The district shall submit a request which details the district's plan for career

and technical education programming for students in grades five (5) through

eight (8). In reviewing the request, the Office of Career and Technical

Education shall consider whether:

1. The district details a plan for orientation and exploration of broad -based

industries by giving students k nowledge and experience regarding

careers within these industries and exploratory or hands-on skills used in

the industry;

2. There is direct alignment between middle and secondary career and

technical education pathways within the requesting district; and

3. Such designation of supplemental funding for programming for students

in grades five (5) through eight (8) does not have a significant

detrimental impact on the programming available for students in

secondary grades.

(6) The Office of Career and Techni cal Education shall monitor and provide oversight

of state funds distributed pursuant to this section to ensure that the use of funding

by eligible recipients meets the approved criteria as described in this section.

(7) The Kentucky Board of Education sha ll promulgate administrative regulations in

accordance with KRS Chapter 13A as may be needed in the administration of this

section and for disbursement of moneys.

(8) The Kentucky Department of Education shall publish on the department's website:

(a) The list of all career and technical education programs available to students

and the program's designation as a high -cost career and technical education

program or as a general-cost career and technical education program;

(b) A report of the supplemental fundi ng amounts provided to each local district

and to each state-operated area technology center, including an explanation of

the amount designated as enrollment -based funding and as incentives -based

funding; and

(c) A report of the administrative operations costs provided to each state-operated

area technology center and to each converted career and technical education

center, as well as the amount contributed toward the career and technical

education innovation and support fund.