KentuckyHB 672026 Regular SessionHouseWALLET

AN ACT relating to schools and declaring an emergency.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

Stronger budget, spending, and personnel controls

Superintendents must follow a set yearly budget schedule: a draft by Jan 31, a tentative budget by May 31, and a working budget with a detailed report by Sept 30. The state board must approve the working budget. Every budget must include at least a 2% reserve. Boards must spend only as the approved working budget allows. They cannot approve spending beyond that year’s income, except for bonds or a state‑declared emergency; violations are void and can trigger personal liability. Superintendent personnel actions must be recorded at the next board meeting and do not take effect until the employee gets written notice.

Safer student messaging and parent notice

Schools must use a traceable messaging system for staff and volunteers to contact students. Principals tell parents within the first 10 days what system is used and how to view messages. Nonfamily staff and volunteers cannot privately message a student outside that system unless a parent files written consent. Parents can set limits and revoke consent. Allowed exceptions include family members, true emergencies (with quick notice to a supervisor), approved field trips, work‑based learning, and messages tied to a disclosed job or local government role. Staff and volunteers must report unauthorized messages right away. Parents get updates and a final written outcome if a case is investigated. Violations lead to discipline, and some previously banned volunteers may be allowed back. These sections take effect immediately.

School taxes, levies, and recall rules

School boards may add an equivalent tax rate to raise up to 15% of program‑guaranteed revenue, equalized at 150% of the statewide average per‑pupil assessment. To join the Facilities Support Program, boards must add at least a five‑cent levy on top of the long‑standing thirty‑cent minimum for general school taxes. The five‑cent levy and equalization money may fund approved, guaranteed energy‑savings projects in the district’s facility plan that replace worn‑out equipment. The yearly school levy cannot be set until the state board approves the working budget, and it must be set by July 1. If a board proposes a general tax rate above the compensating rate, it must hold a public hearing with detailed notice; if an adopted rate raises real‑property revenue over 4% above the compensating rate (excluding new property), the excess is subject to recall and must be advertised within seven days. Boards may adjust the personal‑property rate so its revenue rises by the same percentage as real property, but not above last year’s personal‑property rate; these changes are exempt from certain hearing and recall rules.

Finance officer rules and public reports

Each district must appoint a finance officer. New finance officers hired on or after July 1, 2015 need state certification, and all finance officers must complete 42 hours of training every two years. The finance officer provides monthly revenue and spending reports for board approval, and districts post them online for at least six months. Within six months after the fiscal year ends, districts file and post a full annual report; the state reviews it within two months, posts the status, and sends reports to lawmakers. Districts must keep a public financial disclosure site with vendor and balance reports, superintendent contracts and payouts, the working budget, audits, and more; if reserves fall below 4%, they must also post procurement card and credit card summaries. Districts must publish budgets in the newspaper and on their website when filed, and publish the annual financial statement and school report card (with public notice). On the law’s effective date, boards must post the most recent required financial items right away.

Sponsors & Cosponsors

Sponsor

J.T. Payne
Republican • House

Cosponsors

Bobby McCool
Republican • House
Daniel Grossberg
Democrat • House
Jennifer Decker
Republican • House
Kim Holloway
Republican • House
Patrick Flannery
Republican • House
Steven Rudy
Republican • House
Tony Hampton
Republican • House

Roll Call Votes

All Roll Calls

Yes: 250 • No: 0

Senate vote • 4/1/2026

passed

Yes: 37 • No: 0

House vote • 4/1/2026

passed

Yes: 92 • No: 0

Senate vote • 3/27/2026

3rd reading, passed

Yes: 36 • No: 0

House vote • 3/6/2026