{"data":{"id":"us-ky/krs-158.785","jurisdiction":"us-ky","citation":"KRS 158.785","heading":"Collection and review of management data -- Management audit --","body":"Conditions for designation as state assisted or state managed district -- Actions\nrequired.\n(1) The Kentucky Board of Education shall establish a program to improve specific\naspects of the management of local school districts as described in KRS 158.780.\n(2) The State Department of Education shall, pursuant to administrative regulations\npromulgated by the Kentucky Board of Education, collect and review data relative\nto the instruc tional and operational performance of local school districts. When a\nreview of the data or of any other information, including site investigations of local\nmanagement practices, indicates the presence of critically ineffective or inefficient\nmanagement, the chief state school officer shall order a management audit of the\ngovernance and administration of the district. A local school board or\nsuperintendent may also request a management audit of the district.\n(3) If a management audit, conducted for any of th e reasons set forth in subsection (2)\nof this section, indicates that there is a pattern of a significant lack of efficiency and\neffectiveness in the governance or administration of a school district, the chief state\nschool officer shall recommend the dist rict to the Kentucky Board of Education\neither as a \"state assisted district\" or a \"state managed district.\"\n(4) The Kentucky Board of Education shall promulgate an administrative regulation\nestablishing a procedure for considering the recommendation of th e chief state\nschool officer to declare a district a \"state assisted district\" or a \"state managed\ndistrict.\" This procedure shall fully comply with the procedures for administrative\nhearings established in KRS Chapter 13B.\n(5) When the chief state school officer presents a recommendation to the state board for\ndesignation as a \"state assisted district\" or a \"state managed district,\" he shall\nestablish the following:\n(a) Existence of a pattern of a significant lack of efficiency and effectiveness in\nthe governance or administration of the school district;\n(b) The pattern of a significant lack of efficiency and effectiveness in the\ngovernance or administration of the school district continues to exist; and\n(c) State assistance or state management is necessary  to correct the inefficiencies\nand ineffectiveness.\n(6) When a district is designated a \"state assisted district\" under subsection (4) of this\nsection, the following actions shall be required of the chief state school officer:\n(a) Management assistance sha ll be provided to the district to develop and\nimplement a plan to correct deficiencies found in the management audit.\n(b) The Department of Education shall monitor the development and\nimplementation of the correctional plan to improve the governance or\nadministration of the school district. If the chief state school officer\ndetermines that the plan is being inadequately developed or implemented, he\nshall make a recommendation to the Kentucky Board of Education to declare\nthe district a \"state managed district.\"\n(7) If the state board designates a district a \"state managed district\" under subsection (4)\nof this section, the following actions shall be required of the chief state school\nofficer:\n(a) All administrative, operational, financial, personnel, and ins tructional aspects\nof the management of the school district formerly exercised by the local\nschool board and the superintendent shall be exercised by the chief state\nschool officer or his designee.\n(b) The local superintendent may be removed from office by  the Kentucky Board\nof Education pursuant to KRS 156.132.\n(c) Notwithstanding any statute to the contrary, after thirty (30) days after a\ndistrict becomes a \"state managed district\" any appointment to an\nadministrative position may be revoked by the chief state school officer and\nthe individual employee may be reassi gned to any duty for which that person\nis qualified. The chief state school officer shall provide to the reassigned\nemployee written reasons for the reassignment. The individual shall not be\ndismissed from subsequent employment except as provided by KRS 15 6.132\nand 161.790.\n(d) The chief state school officer shall make the administrative appointments as\nnecessary to exercise full and complete control of all aspects of the\nmanagement of the district. The chief state school officer, through the\nappointments, may make any and all decisions previously made by the local\nschool board and the local superintendent. The chief state school officer shall\nretain clear supervisory and monitoring powers over the operation and\nmanagement of the district.\n(8) A school district shall be designated as a \"state managed district\" until the Kentucky\nBoard of Education determines that the pattern of ineffective and inefficient\ngovernance or administration and the specific deficiencies determined by the\nmanagement audit have been c orrected. Each year following the school year in\nwhich the designation of a \"state managed district\" was made, the chief state school\nofficer shall report the status of the corrective action being taken to the Kentucky\nBoard of Education. No local school d istrict shall remain in the status of a \"state\nmanaged district\" longer than three (3) consecutive school years unless the\nKentucky Board of Education extends the time after a complete review of a new\nmanagement audit. Any judicial review of actions taken by the chief state school\nofficer or the board under KRS 158.780 or this section shall be in accordance with\nthe provisions for conducting judicial review of administrative hearings outlined in\nKRS Chapter 13B.","path":["KRS Chapter 158"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51318","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:06Z","sha256":"91f65f999cf4a9470b0b4a572d830733e7022accbb91ff08ca732fdc36b0cdce","source_id":"us-ky","stale":false,"prev":"us-ky/krs-158.782","next":"us-ky/krs-158.790"},"notice":"GroundRules: Original legal text. Not legal advice."}