{"data":{"id":"us-ky/krs-157.621","jurisdiction":"us-ky","citation":"KRS 157.621","heading":"Additional tax levies for debt service, new facilities, and major renovations","body":"in school districts -- Criteria -- Equalization funding.\n(1) In addition to the levy required by KRS 157.440(1)(b) to participate in the Facilities\nSupport Program of  Kentucky, local school districts that have made the levy\nrequired by KRS 157.440(1)(b) are authorized to levy the following additional\nequivalent rates to support debt service, new facilities, or major renovations of\nexisting school facilities, which levi es shall not be subject to recall under any\nprovision of the Kentucky Revised Statutes, or to voter approval under the\nprovisions of KRS 157.440(2):\n(a) 1. Prior to April 24, 2008, local school districts that have experienced\nstudent population growth duri ng a five (5) year period may levy an\nadditional five cents ($0.05) equivalent rate for debt service and new\nfacilities. The tax rate levied by the district under this provision shall not\nbe equalized by state funding, except as provided in paragraph (b) o f\nthis subsection. Any levy imposed under this paragraph prior to April\n24, 2008, by a local school district shall continue until removed by the\nlocal school district.\n2. A local school district shall meet the following criteria in order to levy\nthe tax provided in subparagraph 1. of this paragraph:\na. Growth of at least one hundred fifty (150) students in average\ndaily attendance and three percent (3%) overall growth for the five\n(5) preceding years;\nb. Bonded debt to the maximum capability of at least eig hty percent\n(80%) of capital outlay from the Support Education Excellence in\nKentucky funding program, all revenue from the local facility tax,\nand all receipts from state equalization on the local facility tax;\nc. Current student enrollment in excess of a vailable classroom space;\nand\nd. A local school facility plan that has been approved by the\nKentucky Board of Education and certified to the School Facilities\nConstruction Commission;\n(b) 1. In addition to the levy authorized by paragraph (a) of this subsection, a\nlocal school district may levy an additional five cents ($0.05) equivalent\nrate under the same terms and conditions established by paragraph (a) of\nthis subsection beginning in fisca l year 2003-2004 if the levy was made\nprior to April 24, 2008, and if the local school district:\na. Levied the five cents ($0.05) equivalent rate authorized by\nparagraph (a) of this subsection; and\nb. Still meets the requirements established by paragraph ( a)2. of this\nsubsection.\n2. Any school district that imposes both the levy authorized by paragraph\n(a) of this subsection and the additional levy authorized by subparagraph\n1. of this paragraph shall receive equalization funding from the state for\nthe levy imposed by paragraph (a) of this subsection beginning in fiscal\nyear 2003 -2004. Equalization shall be provided at one hundred fifty\npercent (150%) of the statewide average per pupil assessment, subject to\nsubsection (6) of this section. Equalization funds  shall be used as\nprovided in KRS 157.440(1)(b).\n3. Any levy imposed under this paragraph prior to April 24, 2008, by a\nlocal school district shall continue until removed by the local school\ndistrict; and\n(c) 1. A local school district that meets the follo wing conditions may levy an\nadditional five cents ($0.05) equivalent rate on and after April 24, 2008:\na. The local school district is located in a county that will have more\nstudents as a direct result of the new mission established for Fort\nKnox by the B ase Realignment and Closure (BRAC) 2005 issued\nby the United States Department of Defense pursuant to the\nDefense Base Closure and Realignment Act of 1990, Pub. L. No.\n100-526, Part A of Title XXIX of 104 Stat. 1808, 10 U.S.C. sec.\n2687 note; and\nb. The co mmissioner of education has determined, based upon the\npresentation of credible data, that the projected increased number\nof students is sufficient to require new facilities or the major\nrenovation of existing facilities to accommodate the new students,\nand has approved the imposition of the additional levy.\n2. Any local school district that imposes both the levy authorized by\nparagraph (a) of this subsection and the additional levy authorized by\nsubparagraph 1. of this paragraph, and that has not received equalization\nfunding under subsection (2) or (3) of this section, shall receive\nequalization funding from the state for the levy imposed by paragraph\n(a) of this subsection beginning in the fiscal year following the fiscal\nyear in which the levy authorized  by subparagraph 1. of this paragraph\nis imposed. Equalization shall be provided at one hundred fifty percent\n(150%) of the statewide average per pupil assessment, subject to\nsubsection (6) of this section. Equalization funds shall be used as\nprovided in KRS 157.440(1)(b).\n3. Any levy imposed under this paragraph by a local school district shall\ncontinue until removed by the local school district.\n(2) (a) Any local school district that, prior to April 27, 2016, levied an equivalent rate\nthat:\n1. Was subject to recall at the time it was levied; and\n2. Included a rate of at least five cents ($0.05) equivalent rate for the\npurpose of debt service for school construction or major renovation of\nexisting school facilities;\nshall be eligible for retroactive equali zation from the state for that levy at one\nhundred fifty percent (150%) of the statewide average per pupil assessment\nbeginning in fiscal year 2003 -2004, subject to subsection (6) of this section.\nEqualization funds shall be used as provided in KRS 157.440(1)(b).\n(b) It is the intent of the General Assembly that for levies described in this\nsubsection that are imposed on or after April 27, 2016, equalization funds, if\nprovided by the General Assembly, shall terminate upon the earlier of June\n30, 2038, or th e date the bonds for the local school district supported by this\nequalization funding are retired. Equalization shall be subject to subsection\n(6)(b) and (c) of this section, the fiscal condition of the Commonwealth, and\nfunding by the General Assembly.\n(3) Any local school district that:\n(a) Levied an equivalent tax rate as of April 24, 2008, that included at least ten\ncents ($0.10) that was devoted to building purposes, or that had debt service\ncorresponding to a ten cents ($0.10) equivalent rate;\n(b) Did not receive equalized growth funding pursuant to subsection (1)(b)2. of\nthis section; and\n(c) Has been approved by the commissioner of education;\nshall be eligible for equalization from the state for that levy at one hundred fifty\npercent (150%) of the s tatewide average per pupil assessment beginning in fiscal\nyear 2005 -2006, subject to subsection (6)(b) and (c) of this section and the\nprovision of funding by the General Assembly. Equalization funds shall be used as\nprovided in KRS 157.440(1)(b). Equaliza tion funds shall be available to a local\nschool district pursuant to this subsection until the earlier of June 30, 2038, or the\ndate the bonds for the local school district supported by this equalization funding\nare retired.\n(4) (a) Notwithstanding any oth er provision of this section, any local school district\nreceiving equalization funding prior to April 27, 2016, related to an equivalent\nrate levy described in subsection (1), (2), (3), or (5) of this section shall\ncontinue to receive the equalization fund ing related to the applicable\nequivalent rate levy, subject to subsection (6) of this section, the limitations\nestablished by subsections (1), (2), (3), and (5) of this section, the fiscal\ncondition of the Commonwealth, and the provision of funding by the General\nAssembly, until amended by subsequent action of the General Assembly. A\nlocal school district described in this paragraph shall not be eligible to receive\nequalization for any additional equivalent rate levies made by it on or after\nApril 27, 2016.\n(b) Notwithstanding any other provision of this section, any local school district\nthat has imposed an equivalent rate levy described in subsection (1)(a) or (b)\nor (2) of this section prior to April 27, 2016, that qualifies for equalization but\nthat has not yet received equalization funding shall be eligible for equalization\nfunding as provided in subsection (1)(a) or (b) or (2) of this section, subject to\nsubsection (6) of this section.\n(c) On and after April 24, 2008, a local school district not include d in paragraph\n(a) or (b) of this subsection shall be prohibited from imposing an equivalent\nrate levy under the provisions of subsection (1)(a) or (b) of this section, and\nshall not be eligible for equalization funding under the provisions of this\nsection.\n(d) On and after April 24, 2008, a local school district meeting the requirements\nof subsection (1)(c) of this section may impose the levy authorized by\nsubsection (1)(c) of this section, and shall qualify for equalization as provided\nin subsection (1)(c) of this section, subject to subsection (6) of this section.\n(5) (a) Any local school district that:\n1. Had school facilities classified as Category 5 on May 18, 2010, by the\nKentucky Department of Education; and\n2. Levied an additional five cents ($0.05) equivalent tax rate prior to April\n27, 2016, for debt service, new construction, and major renovation\nbeyond the five cents ($0.05) equivalent tax rate required by KRS\n157.440(1)(b), except as provided in paragraph (b) of this subsection;\nshall be eligible for equalization from the state for that levy at one hundred\nfifty percent (150%) of the statewide ave rage per pupil assessment beginning\nin the fiscal year following the fiscal year in which the levy was imposed\nsubject to subsection (6) of this section. This levy shall be subject to the recall\nprovisions of KRS 132.017.\n(b) School districts that levied a  five cents ($0.05) equivalent tax rate for debt\nservice, new construction, and major renovation, beyond the rate required by\nKRS 157.440(1)(b) prior to May 18, 2010, shall not be required to levy an\nadditional tax to receive the equalization funds provide d in paragraph (a) of\nthis subsection.\n(c) If the school district utilizes the equalization funds to support a bond issue for\nconstruction purposes, equalization funds shall be provided until the earlier of\ntwenty (20) years or date the bonds are retired.\n(d) In the event that a school district receives funding pursuant to this subsection\nto support construction of a new school facility and subsequently, as a result\nof litigation, receives funding for the same facility for which state funds were\nprovided, that school district shall reimburse the Commonwealth an amount\nequal to the amount provided under paragraph (a) of this subsection. Any\nfunds received in this manner shall be deposited in the budget reserve trust\nfund account established in KRS 48.705.\n(6) (a) For equivalent tax rates levied under this section prior to January 1, 2026,\nequalization funds authorized under this section shall terminate upon the\nearlier of twenty (20) years or the date the bonds supported by the\nequalization funding are retired . Equalization shall be subject to the fiscal\ncondition of the Commonwealth and funding by the General Assembly.\n(b) For equivalent tax rates levied under this section on or after January 1, 2026,\nequalized funds shall not be authorized under this section or provided by the\nstate.\n(c) The commissioner of education shall compile a list of every equivalent tax\nrate levied by a school district under the authority of this section, the bonds or\ndebt service to which the equivalent tax rate revenues and any relat ed\nequalized funds are dedicated, and the date those bonds or debt service are\nscheduled to be retired. This list shall be submitted to the Legislative\nResearch Commission for referral to the Interim Joint Committee on\nAppropriations and Revenue Committee by September 1 of each year until the\nequalization funds are terminated under paragraph (a) of this subsection.","path":["KRS Chapter 157"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56968","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:02Z","sha256":"c935f228211554521137b15d64cea6c8e150f0bd512d9cd28e0e1f11ae457713","source_id":"us-ky","stale":false,"prev":"us-ky/krs-157.620","next":"us-ky/krs-157.622"},"notice":"GroundRules: Original legal text. Not legal advice."}