KRS 157.622: Assistance to school districts -- Priority order of needs -- Exception --

Reallocation of funds -- Disposition of bond savings and refinancing savings.

The School Facilities Construction Commission shall be governed by the following

procedures in providing assistance to school districts for construction purposes:

(1) Upon receipt of the certified statements from the Kentucky Board of Education as

required by KRS 157.620, the commission shall compute the unmet needs of all

eligible districts as defined by KRS 157.615;

(2) Assistance to each eligible district shall be determined by computing the ratio of the

available state funding to total unmet need statewide. Based on the computed ratio,

an equivalent percentage of each eligible district's unmet need will be funded;

(3) Each eligible district which has otherwise complied with the provisions of KRS

157.615 and 157.620 shall be offered sufficient funding to finance construction of

the portion of its unmet need computed by applying the ratio determine d in

subsection (2) of this section to the total unmet need of the district. The funds shall

be applied to the projects listed on the most current facility plan approved by the

Kentucky Board of Education, and the funds shall be applied to projects in the

priority order listed on the plan. Exceptions to the priority order of projects may be

approved by the School Facilities Construction Commission when it is documented

by the local board of education and approved by the Kentucky Board of Education

upon the recommendation of the chief state school officer that the school district's

priority order of needs has changed. The exceptions shall not alter the amount of the

offer of assistance;

(4) The commission shall promulgate administrative regulations whereby an eligible

district which fails in any budget period to receive an allocation of state funds that

is sufficient to fund the district's priority project or portions thereof may accumulate

credit, subject to the availability of funds, for its unused state allocation for a period

not to exceed eight (8) years. Accumulation and retention of credit is contingent

upon the transfer of available local revenue to the restricted construction account by

June 30 of each year;

(5) Except as provided in subsection (6) of this section, all unused state allocations

accumulated according to the provisions of subsection (3) of this section shall be

reallocated by the commission. The reallocation shall follow the process and intent

as set forth in this section with eligible dis tricts being those districts which

contribute unused state allocations to the reallocation account. Any district which

has an unused state allocation after funding its first priority project in a biennium is

not eligible for consideration for additional fu nds from the reallocation account.

Any funding received and utilized from the reallocation account by a district shall

equally reduce the credit as set forth in this section; and

(6) Refinancing savings that have occurred since July 1, 1997, and subsequent savings

to the commission generated over the life of a bond by the local district's

refinancing of the bond shall be dedicated to the district's account by the

commission. Any funds accumulated in this account shall be used toward the

district's next prio rity, but shall not be deducted from the district's share of

commission funds under subsection (3) of this section.