KRS 157.621: Additional tax levies for debt service, new facilities, and major renovations

in school districts -- Criteria -- Equalization funding.

(1) In addition to the levy required by KRS 157.440(1)(b) to participate in the Facilities

Support Program of Kentucky, local school districts that have made the levy

required by KRS 157.440(1)(b) are authorized to levy the following additional

equivalent rates to support debt service, new facilities, or major renovations of

existing school facilities, which levi es shall not be subject to recall under any

provision of the Kentucky Revised Statutes, or to voter approval under the

provisions of KRS 157.440(2):

(a) 1. Prior to April 24, 2008, local school districts that have experienced

student population growth duri ng a five (5) year period may levy an

additional five cents ($0.05) equivalent rate for debt service and new

facilities. The tax rate levied by the district under this provision shall not

be equalized by state funding, except as provided in paragraph (b) o f

this subsection. Any levy imposed under this paragraph prior to April

24, 2008, by a local school district shall continue until removed by the

local school district.

2. A local school district shall meet the following criteria in order to levy

the tax provided in subparagraph 1. of this paragraph:

a. Growth of at least one hundred fifty (150) students in average

daily attendance and three percent (3%) overall growth for the five

(5) preceding years;

b. Bonded debt to the maximum capability of at least eig hty percent

(80%) of capital outlay from the Support Education Excellence in

Kentucky funding program, all revenue from the local facility tax,

and all receipts from state equalization on the local facility tax;

c. Current student enrollment in excess of a vailable classroom space;

and

d. A local school facility plan that has been approved by the

Kentucky Board of Education and certified to the School Facilities

Construction Commission;

(b) 1. In addition to the levy authorized by paragraph (a) of this subsection, a

local school district may levy an additional five cents ($0.05) equivalent

rate under the same terms and conditions established by paragraph (a) of

this subsection beginning in fisca l year 2003-2004 if the levy was made

prior to April 24, 2008, and if the local school district:

a. Levied the five cents ($0.05) equivalent rate authorized by

paragraph (a) of this subsection; and

b. Still meets the requirements established by paragraph ( a)2. of this

subsection.

2. Any school district that imposes both the levy authorized by paragraph

(a) of this subsection and the additional levy authorized by subparagraph

1. of this paragraph shall receive equalization funding from the state for

the levy imposed by paragraph (a) of this subsection beginning in fiscal

year 2003 -2004. Equalization shall be provided at one hundred fifty

percent (150%) of the statewide average per pupil assessment, subject to

subsection (6) of this section. Equalization funds shall be used as

provided in KRS 157.440(1)(b).

3. Any levy imposed under this paragraph prior to April 24, 2008, by a

local school district shall continue until removed by the local school

district; and

(c) 1. A local school district that meets the follo wing conditions may levy an

additional five cents ($0.05) equivalent rate on and after April 24, 2008:

a. The local school district is located in a county that will have more

students as a direct result of the new mission established for Fort

Knox by the B ase Realignment and Closure (BRAC) 2005 issued

by the United States Department of Defense pursuant to the

Defense Base Closure and Realignment Act of 1990, Pub. L. No.

100-526, Part A of Title XXIX of 104 Stat. 1808, 10 U.S.C. sec.

2687 note; and

b. The co mmissioner of education has determined, based upon the

presentation of credible data, that the projected increased number

of students is sufficient to require new facilities or the major

renovation of existing facilities to accommodate the new students,

and has approved the imposition of the additional levy.

2. Any local school district that imposes both the levy authorized by

paragraph (a) of this subsection and the additional levy authorized by

subparagraph 1. of this paragraph, and that has not received equalization

funding under subsection (2) or (3) of this section, shall receive

equalization funding from the state for the levy imposed by paragraph

(a) of this subsection beginning in the fiscal year following the fiscal

year in which the levy authorized by subparagraph 1. of this paragraph

is imposed. Equalization shall be provided at one hundred fifty percent

(150%) of the statewide average per pupil assessment, subject to

subsection (6) of this section. Equalization funds shall be used as

provided in KRS 157.440(1)(b).

3. Any levy imposed under this paragraph by a local school district shall

continue until removed by the local school district.

(2) (a) Any local school district that, prior to April 27, 2016, levied an equivalent rate

that:

1. Was subject to recall at the time it was levied; and

2. Included a rate of at least five cents ($0.05) equivalent rate for the

purpose of debt service for school construction or major renovation of

existing school facilities;

shall be eligible for retroactive equali zation from the state for that levy at one

hundred fifty percent (150%) of the statewide average per pupil assessment

beginning in fiscal year 2003 -2004, subject to subsection (6) of this section.

Equalization funds shall be used as provided in KRS 157.440(1)(b).

(b) It is the intent of the General Assembly that for levies described in this

subsection that are imposed on or after April 27, 2016, equalization funds, if

provided by the General Assembly, shall terminate upon the earlier of June

30, 2038, or th e date the bonds for the local school district supported by this

equalization funding are retired. Equalization shall be subject to subsection

(6)(b) and (c) of this section, the fiscal condition of the Commonwealth, and

funding by the General Assembly.

(3) Any local school district that:

(a) Levied an equivalent tax rate as of April 24, 2008, that included at least ten

cents ($0.10) that was devoted to building purposes, or that had debt service

corresponding to a ten cents ($0.10) equivalent rate;

(b) Did not receive equalized growth funding pursuant to subsection (1)(b)2. of

this section; and

(c) Has been approved by the commissioner of education;

shall be eligible for equalization from the state for that levy at one hundred fifty

percent (150%) of the s tatewide average per pupil assessment beginning in fiscal

year 2005 -2006, subject to subsection (6)(b) and (c) of this section and the

provision of funding by the General Assembly. Equalization funds shall be used as

provided in KRS 157.440(1)(b). Equaliza tion funds shall be available to a local

school district pursuant to this subsection until the earlier of June 30, 2038, or the

date the bonds for the local school district supported by this equalization funding

are retired.

(4) (a) Notwithstanding any oth er provision of this section, any local school district

receiving equalization funding prior to April 27, 2016, related to an equivalent

rate levy described in subsection (1), (2), (3), or (5) of this section shall

continue to receive the equalization fund ing related to the applicable

equivalent rate levy, subject to subsection (6) of this section, the limitations

established by subsections (1), (2), (3), and (5) of this section, the fiscal

condition of the Commonwealth, and the provision of funding by the General

Assembly, until amended by subsequent action of the General Assembly. A

local school district described in this paragraph shall not be eligible to receive

equalization for any additional equivalent rate levies made by it on or after

April 27, 2016.

(b) Notwithstanding any other provision of this section, any local school district

that has imposed an equivalent rate levy described in subsection (1)(a) or (b)

or (2) of this section prior to April 27, 2016, that qualifies for equalization but

that has not yet received equalization funding shall be eligible for equalization

funding as provided in subsection (1)(a) or (b) or (2) of this section, subject to

subsection (6) of this section.

(c) On and after April 24, 2008, a local school district not include d in paragraph

(a) or (b) of this subsection shall be prohibited from imposing an equivalent

rate levy under the provisions of subsection (1)(a) or (b) of this section, and

shall not be eligible for equalization funding under the provisions of this

section.

(d) On and after April 24, 2008, a local school district meeting the requirements

of subsection (1)(c) of this section may impose the levy authorized by

subsection (1)(c) of this section, and shall qualify for equalization as provided

in subsection (1)(c) of this section, subject to subsection (6) of this section.

(5) (a) Any local school district that:

1. Had school facilities classified as Category 5 on May 18, 2010, by the

Kentucky Department of Education; and

2. Levied an additional five cents ($0.05) equivalent tax rate prior to April

27, 2016, for debt service, new construction, and major renovation

beyond the five cents ($0.05) equivalent tax rate required by KRS

157.440(1)(b), except as provided in paragraph (b) of this subsection;

shall be eligible for equalization from the state for that levy at one hundred

fifty percent (150%) of the statewide ave rage per pupil assessment beginning

in the fiscal year following the fiscal year in which the levy was imposed

subject to subsection (6) of this section. This levy shall be subject to the recall

provisions of KRS 132.017.

(b) School districts that levied a five cents ($0.05) equivalent tax rate for debt

service, new construction, and major renovation, beyond the rate required by

KRS 157.440(1)(b) prior to May 18, 2010, shall not be required to levy an

additional tax to receive the equalization funds provide d in paragraph (a) of

this subsection.

(c) If the school district utilizes the equalization funds to support a bond issue for

construction purposes, equalization funds shall be provided until the earlier of

twenty (20) years or date the bonds are retired.

(d) In the event that a school district receives funding pursuant to this subsection

to support construction of a new school facility and subsequently, as a result

of litigation, receives funding for the same facility for which state funds were

provided, that school district shall reimburse the Commonwealth an amount

equal to the amount provided under paragraph (a) of this subsection. Any

funds received in this manner shall be deposited in the budget reserve trust

fund account established in KRS 48.705.

(6) (a) For equivalent tax rates levied under this section prior to January 1, 2026,

equalization funds authorized under this section shall terminate upon the

earlier of twenty (20) years or the date the bonds supported by the

equalization funding are retired . Equalization shall be subject to the fiscal

condition of the Commonwealth and funding by the General Assembly.

(b) For equivalent tax rates levied under this section on or after January 1, 2026,

equalized funds shall not be authorized under this section or provided by the

state.

(c) The commissioner of education shall compile a list of every equivalent tax

rate levied by a school district under the authority of this section, the bonds or

debt service to which the equivalent tax rate revenues and any relat ed

equalized funds are dedicated, and the date those bonds or debt service are

scheduled to be retired. This list shall be submitted to the Legislative

Research Commission for referral to the Interim Joint Committee on

Appropriations and Revenue Committee by September 1 of each year until the

equalization funds are terminated under paragraph (a) of this subsection.