RELATES TO:
KRS
156.031,
160.599
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
156.031 requires that administrative
regulations relating to statutes amended by the 1990 Kentucky Education Reform
Act be reviewed, amended if necessary and resubmitted to the Legislative
Research Commission prior to December 30, 1990; and
KRS
160.599 provides for an emergency loan fund
for local school districts experiencing a loss of physical facilities due to
fire or natural disaster or a failure to timely receive local tax revenues.
This administrative regulation is necessary to establish procedures for the
handling and repayments of loans made from the Emergency Revolving School Loan
Fund Account.
Section 1. The total
amount of the loan shall be forwarded to the district upon approval of plans
and specifications, and a proposed contract has been approved by the Division
of Buildings and Grounds.
Section
2. The entire amount of the loan shall be deposited directly into
a separate account designated as the "Emergency School Loan Fund."
Section 3. The fund shall be kept in a
depository selected by the board of education. The money shall be invested in
direct obligations of the United States until such time as cash funds shall be
needed.
Section 4. All expenditures
from this fund shall be made solely for the purposes approved by the Director
of the Division of Buildings and Grounds except that a district may qualify for
a loss if the sheriff has failed to collect or disburse tax revenue in a fiscal
year.
Section 5. The State Board
for Elementary and Secondary Education shall cause to be made annually an audit
of this fund by a certified public accountant or by an accountant approved by
the State Department of Education.
Section
6. One-tenth (1/10) of the loan made for construction purposes
shall be payable to the "State Emergency Revolving School Loan Fund Account" on
each anniversary date of the loan for the next ten (10) consecutive years. A
loan made because of delinquent tax revenues shall be repaid when tax revenues
are received and no later than three (3) years from the date of the loan. This
payment shall be forwarded to the Director, Division of School District
Finance, State Department of Education.
