{"data":{"id":"us-ky/krs-160.125","jurisdiction":"us-ky","citation":"KRS 160.125","heading":"School of innovation pilot project -- Fund -- Applications -- Distribution of","body":"funds -- Report -- Matching funds -- Termination of participation.\n(1) There is hereby established the school of innovation pilot project to provide school\ndistricts with the opportunity to explore innovative school operation models.\n(2) (a) There is hereby established in the State Treasury a trust and agency account to\nbe known as the school of innovation pilot project fund. The fund shall consist\nof moneys received from state appropriations, gifts, grants, and federal funds.\n(b) The fund shall be administered by the Kentucky Department of Education.\n(c) Amounts deposited in the fund shall be used to support the school of\ninnovation pilot project under this section and no other purpose.\n(d) Notwithstanding KRS 45.229, fund amounts not expended at the close of a\nfiscal year shall not lapse but shall be carried forward into the next fiscal year.\n(3) The school of innovation pilot project shall begin August 1, 2026, and end June 30,\n2028, and shall consist of:\n(a) Beginning with the first year of the pilot project, any school of innovation\nestablished by Covington Independent School District; and\n(b) To the extent funds are available and beginning with the 2027 -2028 schoo l\nyear, a cohort of two (2) schools of innovation chosen from applications\nsubmitted by local boards of education that meet the following criteria:\n1. The applicant has previously or concurrently been approved under KRS\n156.161 for a school of innovation;\n2. The school of innovation is not a virtual program as defined in KRS\n157.320;\n3. The application proposes a significant innovative educational\nopportunity to improve student outcomes, school operations, or both\nthrough approaches that would be difficult or impractical to implement\nunder existing statutory or regulatory requirements; and\n4. The applicant identifies matching moneys consisting of district\nrevenues, philanthropic contributions, or other funds that are to be\ndedicated for the operation of the school of innovation until the end of\nthe pilot project and which shall be eligible to serve as matching funds\nunder subsection (4) of this section.\n(4) The Kentucky Board of Education shall:\n(a) Establish an annual timeline for application submission and approval for each\nyear of the pilot project; and\n(b) Review and approve two (2) applications under subsection (3) of this section\nfor admission into th e pilot project under subsection (3)(b) of this section to\nthe extent that funds are available during the operation of the pilot project.\nThe department shall distribute funds from the school of innovation pilot\nproject fund to an approved applicant in amo unts that match the funds\ndedicated by the approved applicant under subsection (3) of this section. The\nfunds shall be distributed on a regular schedule to the approved applicant so\nlong as the applicant operates the school of innovation as outlined in the\napproved application. An approved applicant may submit an amended\napplication so long as the amended application continues to meet the\nminimum requirements of subsection (3) of this section. Both the matching\nfunds and the pilot project funds shall be res tricted to the operation and\nsupport of the school of innovation, unless granted a waiver from the\nKentucky Board of Education.\n(5) At the end of each school year, a school district participating in the pilot project\nshall submit to the Kentucky Department  of Education a report which shall be\ncompiled by the department and submitted to the Legislative Research Commission\nfor referral to the Interim Joint Committee on Education. The report shall include:\n(a) A description of the district's school of innovati on activities during the school\nyear and how the school is innovating, including innovations through the\nwaiving of statute or administrative regulation;\n(b) The education service providers and any other entities the school district has\npartnered with for the operation of the school of innovation;\n(c) A general accounting of how the district and matching pilot project funds\nhave been used;\n(d) The academic programs offered by the school of innovation;\n(e) The enrollment details of the school of innovation;\n(f) What student and school performance factors the district shall use to\ndetermine success of the school of innovation and the current status on those\nfactors; and\n(g) What hindrances to innovation the district may have encountered.\n(6) Matching funds for the pilot project may include contributions from one (1) or more\nprivate or philanthropic entities, including nonprofit organizations that partner with\nschool districts to support the design or implementation of schools of innovation.\n(7) An application under subsection (3) of this section:\n(a) May be submitted collectively by two (2) or more local boards of education;\nand\n(b) Shall identify the waivers applicable to each school district, the\nresponsibilities of each school district in operating the school  of innovation,\nand the matching funds each school district shall provide to support the school\nof innovation.\n(8) If the Kentucky Board of Education at any time finds by a two -thirds (2/3) majority\nvote that the operation of the school of innovation under  this subsection has\nendangered students, impeded student academic achievement, or supported\nfinancial malfeasance or criminal activity, then the school of innovation's\nparticipation in the long -term component of the school of innovation pilot project\nshall be terminated and no further funds shall be distributed.","path":["KRS Chapter 160"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58086","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:07Z","sha256":"f1b175fc923fb3cc9bbfc3e53d47739613cd2b1f4f232830dabeacbe91087be4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-160.120","next":"us-ky/krs-160.130"},"notice":"GroundRules: Original legal text. Not legal advice."}