KRS 158.785: Collection and review of management data -- Management audit --

Conditions for designation as state assisted or state managed district -- Actions

required.

(1) The Kentucky Board of Education shall establish a program to improve specific

aspects of the management of local school districts as described in KRS 158.780.

(2) The State Department of Education shall, pursuant to administrative regulations

promulgated by the Kentucky Board of Education, collect and review data relative

to the instruc tional and operational performance of local school districts. When a

review of the data or of any other information, including site investigations of local

management practices, indicates the presence of critically ineffective or inefficient

management, the chief state school officer shall order a management audit of the

governance and administration of the district. A local school board or

superintendent may also request a management audit of the district.

(3) If a management audit, conducted for any of th e reasons set forth in subsection (2)

of this section, indicates that there is a pattern of a significant lack of efficiency and

effectiveness in the governance or administration of a school district, the chief state

school officer shall recommend the dist rict to the Kentucky Board of Education

either as a "state assisted district" or a "state managed district."

(4) The Kentucky Board of Education shall promulgate an administrative regulation

establishing a procedure for considering the recommendation of th e chief state

school officer to declare a district a "state assisted district" or a "state managed

district." This procedure shall fully comply with the procedures for administrative

hearings established in KRS Chapter 13B.

(5) When the chief state school officer presents a recommendation to the state board for

designation as a "state assisted district" or a "state managed district," he shall

establish the following:

(a) Existence of a pattern of a significant lack of efficiency and effectiveness in

the governance or administration of the school district;

(b) The pattern of a significant lack of efficiency and effectiveness in the

governance or administration of the school district continues to exist; and

(c) State assistance or state management is necessary to correct the inefficiencies

and ineffectiveness.

(6) When a district is designated a "state assisted district" under subsection (4) of this

section, the following actions shall be required of the chief state school officer:

(a) Management assistance sha ll be provided to the district to develop and

implement a plan to correct deficiencies found in the management audit.

(b) The Department of Education shall monitor the development and

implementation of the correctional plan to improve the governance or

administration of the school district. If the chief state school officer

determines that the plan is being inadequately developed or implemented, he

shall make a recommendation to the Kentucky Board of Education to declare

the district a "state managed district."

(7) If the state board designates a district a "state managed district" under subsection (4)

of this section, the following actions shall be required of the chief state school

officer:

(a) All administrative, operational, financial, personnel, and ins tructional aspects

of the management of the school district formerly exercised by the local

school board and the superintendent shall be exercised by the chief state

school officer or his designee.

(b) The local superintendent may be removed from office by the Kentucky Board

of Education pursuant to KRS 156.132.

(c) Notwithstanding any statute to the contrary, after thirty (30) days after a

district becomes a "state managed district" any appointment to an

administrative position may be revoked by the chief state school officer and

the individual employee may be reassi gned to any duty for which that person

is qualified. The chief state school officer shall provide to the reassigned

employee written reasons for the reassignment. The individual shall not be

dismissed from subsequent employment except as provided by KRS 15 6.132

and 161.790.

(d) The chief state school officer shall make the administrative appointments as

necessary to exercise full and complete control of all aspects of the

management of the district. The chief state school officer, through the

appointments, may make any and all decisions previously made by the local

school board and the local superintendent. The chief state school officer shall

retain clear supervisory and monitoring powers over the operation and

management of the district.

(8) A school district shall be designated as a "state managed district" until the Kentucky

Board of Education determines that the pattern of ineffective and inefficient

governance or administration and the specific deficiencies determined by the

management audit have been c orrected. Each year following the school year in

which the designation of a "state managed district" was made, the chief state school

officer shall report the status of the corrective action being taken to the Kentucky

Board of Education. No local school d istrict shall remain in the status of a "state

managed district" longer than three (3) consecutive school years unless the

Kentucky Board of Education extends the time after a complete review of a new

management audit. Any judicial review of actions taken by the chief state school

officer or the board under KRS 158.780 or this section shall be in accordance with

the provisions for conducting judicial review of administrative hearings outlined in

KRS Chapter 13B.