KRS 157.075: Differentiated compensation plans -- Professional compensation fund --

Department of Education recommendations on teacher compensation.

(1) For purposes of this section, "compensation" means the combination of base salary,

salary supplements, and other benefits provided a teacher.

(2) (a) A school district may develop differentiated compensation programs that

provide additional compensation above the single salary schedule described in

KRS 157.420 and defined in KRS 157.320. Differentiated compensation plans

shall have one (1) or more of the following purposes:

1. To recruit and retain teachers in critical shortage areas;

2. To help reduce the number of emergency certified teachers employed in

the district;

3. To provide incentives to recruit and retain highly skilled teachers to

serve in difficult assignments and hard-to-fill positions;

4. To provide career advancement opportunities for classroom teachers

who voluntarily wish to participate; or

5. To reward teachers for increasing their skills, knowledg e, and

instructional leadership within the district or school.

(b) The Kentucky Board of Education shall promulgate administrative regulations

defining the factors that may be included in a differentiated compensation plan

and procedures that shall be used in the development and approval of

differentiated compensation plans.

(3) (a) There is hereby established a professional compensation fund in the State

Treasury. Beginning in the 2002 -2004 biennium and thereafter, the fund shall

be used to provide grants to school districts to pilot differentiated

compensation programs for teachers. During the 2002 -2004 biennium, the

fund shall provide grants to at least five (5) school districts for a two (2) year

period. The number of grants may increase or decrease base d on the funds

available and as deemed feasible by the Kentucky Department of Education.

(b) The district grants shall be used for one (1) or more of the purposes described

in subsection (2)(a) of this section.

(c) The professional compensation fund may re ceive state appropriations, gifts,

and grants from public and private sources, and federal funds. Any unallotted

or unencumbered balances in the fund shall be invested as provided in KRS

42.500(9). Income earned from the investments shall be credited to th e fund.

Any fund balance at the close of a fiscal year shall not lapse but shall be

carried forward to the next fiscal year and continuously appropriated for the

purposes specified in this section.

(d) The fund shall be administered by the Kentucky Department of Education and

shall be distributed on the basis of criteria promulgated in an administrative

regulation by the Kentucky Board of Education. The administrative regulation

shall specify the maximum size of grants, the application and selection

process, the obligations of the local board of education, the evaluation and

data requirements, and other details as deemed necessary by the board.

(4) Upon request, the Kentucky Department of Education shall provide assistance to

any district that wishes to develop a differentiated compensation program.

(5) During the 2002 -2004 biennium, the Kentucky Department of Education shall

gather information and summarize the characteristics and impact of the various

differentiated compensation programs. By October 1, 2004, the department shall

provide recommendations to the Interim Joint Committee on Education as to the

feasibility of establishing a statewide teacher advancement program or other ideas

for modifying teacher compensation.