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.
