KRS 160.550: Expenditure of funds in excess of income and revenue of any year --

Certification of school district -- Penalties.

(1) No superintendent shall recommend and no board member shall knowingly vote for

an expenditure in excess of the income and r evenue of any year, as shown by the

working budget adopted by the board and approved by the Kentucky Board of

Education, except for a purpose for which bonds have been voted or in case of an

emergency declared by the Kentucky Board of Education.

(2) Any school district having authorized an expenditure in violation of subsection (1)

of this section may be so certified at any time by the Kentucky Board of Education.

A district so certified shall thereafter, any contrary statutory provisions

notwithstanding, m ake no expenditure of money, give no authorization involving

the expenditure of money, and make no employment, purchase, or contract, unless

the chief state school officer has approved in writing, as fiscally sound and

necessary, the expenditure, authoriza tion, employment, purchase, or contract. Any

expenditure, authorization, employment, purchase, or contract made in violation of

this subsection shall be void.

(3) Any school district subject to the provisions of subsection (2) of this section shall so

remain until such time as the Kentucky Board of Education has approved, in

conformity with KRS 160.461, a working budget for the district for a succeeding

fiscal year.

(4) In addition to the penalties set forth in KRS 160.990, any person who knowingly

expends or authorizes the expenditure of school district funds or who knowingly

authorizes or executes any employment, purchase, or contract, in violation of this

section, shall be jointly and severably liable in person and upon any official bond he

has given to s uch district to the extent of any payments on the void claim. For

purposes of this section, "knowingly" shall mean a person acts with respect to

conduct or to a circumstance described by a statute defining an offense when he is

aware that his conduct is of that nature or that the circumstance exists.