It is the intent of the General Assembly that schools succeed with all students and receive the appropriate consequences in proportion to that success.

1. (1)

   1. (a) The Kentucky Board of Education shall create an accountability system to classify districts and schools in accordance with the academic standards and student assessment program developed pursuant to KRS 158.6453.
   2. (b) The state accountability system shall include an annual meaningful differentiation of all public schools in the state using multiple measures that describe the overall performance of each district, school, and student subgroup. Beginning with data from the 2026-2027 school year, performance shall be based on a combination of academic and school quality indicators and measures, hereinafter called "state indicators." The state indicators shall exclusively include: 1. 2. Measures of individual student growth in reading and mathematics; 3. Progress toward achieving English proficiency by limited English proficiency students; Student engagement as measured by chronic absenteeism, which shall be defined as a student missing ten percent (10%) or more of yearly school time for excused or unexcused reasons throughout the school year; Student assessment results; 4. 5. High school graduation rates; 6. Beginning July 1, 2030, targeted quality measures, which shall include a measure of the change from the prior school year on the following factors: a. The percentage of certified teachers within the school and district who have attained: i. Rank II status or higher as determined by the Education Professional Standards Board; or ii. Certification from the National Board for Professional Teaching Standards; b. c. For schools and districts containing students in grade eight (8), the percentage of students earning at least one (1) high school credit upon the completion of the student's grade eight (8) school year; and For schools and districts containing students in grade twelve (12), the percentage of graduating students who have: i. Completed the Free Application for Federal Student Aid by the student's graduation date; or 7. ii. A parent or legal guardian that has submitted an appropriate form to the school or district to opt out of completion of the Free Application for Federal Student Aid after completing a district-approved presentation regarding the Free Application for Federal Student Aid. The targeted quality measures shall have a cumulative weight in accountability of no less than five percent (5%); Postsecondary readiness for each high school student, which shall be included as an academic indicator, and shall be measured by one (1) of the following: a. Meeting or exceeding a college readiness benchmark score on the college admissions examination used as the statewide assessment in KRS 158.6453(5)(b)3. or a college placement examination approved by the Council on Postsecondary Education. The college readiness benchmark score shall be established by the Council on Postsecondary Education; b. Achieving a minimum of three (3) hours of dual credit by completing a course approved by the Kentucky Board of Education or qualifying for a minimum of three (3) hours of postsecondary articulated credit associated with a statewide articulation agreement; c. Achieving a benchmark score on an Advanced Placement, International Baccalaureate, Cambridge Advanced International, or other nationally recognized exam approved by the Kentucky Board of Education that generally qualifies the student for three
   3. (3) or more hours of college credit; d. Completing a required number of hours or achieving a benchmark within an apprenticeship, cooperative, or internship that is: i. Not required to be offered as a high school course or during the regular school day, week, or year; ii. Aligned with a credential or associate degree; and iii. Approved by the Kentucky Board of Education after receiving input from the Local Superintendents Advisory Council; or e. Achieving any industry-recognized certifications, licensures, or credentials, with more weight in accountability for industry- recognized certifications, licensures, or credentials identified as high demand in accordance with the process described in paragraph (e) of this subsection. Eligible industry-recognized certifications, licensures, or credentials shall not be limited to those earned in conjunction with a minimum sequence of courses. Each high school shall publicly report the credits, hours, and credentials on an annual basis; and 8. Any other factor mandated by the federal Every Student Succeeds Act
   4. (c) 1. 2. of 2015, Pub. L. No. 114-95, or its successor. The Kentucky Department of Education shall develop an online display of the state accountability system results hereinafter called a "dashboard." A color-coded performance level for each state indicator and overall performance shall be displayed in a straightforward manner on the dashboard by district, school, and individual subgroups. Overall performance shall aggregate all available data for the state indicators. The percentile cut scores for the color-coded performance level for each state indicator and overall performance shall be based on distribution and shall be approved by the Kentucky Department of Education and the Local Superintendents Advisory Council. The cut scores shall remain in place for at least six (6) years unless existing cut scores no longer support a meaningful differentiation of schools as required by the federal Every Student Succeeds Act of 2015, Pub. L. No. 114-95, or its successor.
   5. (d) Based on data from the Kentucky Center for Education and Workforce Statistics, each local workforce investment board, in conjunction with local economic development organizations from its state regional sector, shall annually compile a list of industry-recognized certifications, licensures, and credentials specific to the state and regional workforce area, rank them by demand for the state and regional area, and provide the list to the Kentucky Workforce Innovation Board. The Kentucky Workforce Innovation Board, in conjunction with the Kentucky Department of Education, may revise the lists before the Kentucky Department of Education disseminates the lists to all school districts to be used as postsecondary readiness indicators.
   6. (e) 1. 2. if licensure The Kentucky Department of Education shall pay for the cost of an assessment taken by a high school student for attaining an industry- recognized certification, credential, or the student consecutively completes at least two (2) related career pathway courses approved by the department prior to taking the assessment. If a high school student has not completed the two (2) course requirement described in subparagraph 1. of this paragraph but meets performance-based experience eligibility and passes an assessment, the department shall provide a weighted reimbursement amount to the school district for the cost of the assessment based on the level of demand of the certificate, credential, or license earned. The Kentucky Board of Education shall promulgate regulations establishing the performance-based experience eligibility requirements and weighted reimbursement amounts.
   7. (f) Prior to promulgating administrative regulations to revise the accountability system, the board shall seek advice from the School Curriculum, Assessment, and Accountability Council; the Office of Education Accountability; the Education Assessment and Accountability Review Subcommittee; and the department's technical advisory committee.

2. (2) A student's test scores shall be counted in the accountability measure of:

   1. (a) 1. 2. The school in which the student is currently enrolled if the student has been enrolled in that school for at least a full academic year as defined by the Kentucky Board of Education; or The school in which the student was previously enrolled if the student was enrolled in that school for at least a full academic year as defined by the Kentucky Board of Education; and
   2. (b) The school district if the student is enrolled in the district for at least a full academic year as defined by the Kentucky Board of Education; and
   3. (c) The state if the student is enrolled in a Kentucky public school prior to the beginning of the statewide testing period.

3. (3) After receiving the advice of the Office of Education Accountability; the School Curriculum, Assessment, and Accountability Council; and the department's technical advisory committee, the Kentucky Board of Education shall promulgate an administrative regulation in conformity with KRS 158.6471 and 158.6472 and KRS Chapter 13A to establish more rigorous action, intervention, and appropriate consequences for schools that fail to exit comprehensive support and improvement status described in KRS 160.346. The consequences shall be designed to improve the academic performance and learning environment of identified schools and may include but not be limited to:

   1. (a) A review and audit process to determine the appropriateness of a school's or district's classification and to recommend needed assistance;
   2. (b) School and district improvement plans;
   3. (c) Eligibility to receive Commonwealth school improvement funds under KRS 158.805;
   4. (d) Education assistance from highly skilled certified staff; and
   5. (e) Observation of school personnel.
4. (4) All students who drop out of school during a school year shall be included in a school's annual average school graduation rate calculation.
5. (5) After receiving the advice of the Education Assessment and Accountability Review Subcommittee, the Office of Education Accountability; the School Curriculum, Assessment, and Accountability Council; and the department's technical advisory committee, the Kentucky Board of Education may promulgate by administrative regulation, in conformity with KRS 158.6471 and 158.6472 and KRS Chapter 13A, a system of district accountability that includes establishing a formula for accountability, goals for improvement over a three (3) year period, rewards for leadership in improving teaching and learning in the district, and consequences that address the problems and provide assistance when one (1) or more schools in the district fail to exit comprehensive support and improvement status after three (3) consecutive years of implementing the turnaround intervention process described in KRS 160.346.
6. (6) After receiving the advice of the Office of Education Accountability; the School Curriculum, Assessment, and Accountability Council; and the department's technical advisory committee, the Kentucky Board of Education shall promulgate administrative regulations in conformity with KRS 158.6471 and 158.6472 and KRS Chapter 13A to establish a process whereby a school or school district shall be allowed to appeal any performance judgment made by the department under this section or KRS 160.346 of a principal, superintendent, school, or school district which it considers grossly unfair. Upon appeal, an administrative hearing shall be conducted in accordance with KRS Chapter 13B. The state board may adjust a performance judgment on appeal when evidence of unusual circumstances warrants the conclusion that the performance judgment is based on fraud or a mistake in computations, is arbitrary, is lacking any reasonable basis, or when there are significant new circumstances occurring during the three (3) year assessment period which are beyond the control of the appellant school or school district.

7. (7) Advice and recommendations provided by the department's technical advisory committee shall be summarized and reported by the department by July 1 and December 1 of each year to the Office of Education Accountability. The report shall include:

   1. (a) Advice and recommendations provided by panel members relating to: 1. Development and modification to the assessment and accountability 2. 3. system; The development of administrative assessment and accountability system; The setting of standards used in the assessment and accountability system; and regulations governing the 4. KRS 158.6453, 158.6455, 158.782, or 158.860; and
   2. (b) Any documentation used by the panel in support of the panel's advice and recommendations. Upon receipt of the report, the Office of Education Accountability shall forward the report to the Education Assessment and Accountability Review Subcommittee and the co-chairs of the Interim Joint Committee on Education.

Effective: July 15, 2026

History: Amended 2026 Ky. Acts ch. 138, sec. 3, effective July 15, 2026. -- Amended 2023 Ky. Acts ch. 56, sec. 1, effective March 22, 2023. -- Amended 2022 Ky. Acts ch. 137, sec. 2, effective July 14, 2022. -- Amended 2021 Ky. Acts ch. 79, sec. 1, effective June 29, 2021. -- Amended 2020 Ky. Acts ch. 112, sec. 1, effective July 15, 2020. -- Amended 2019 Ky. Acts ch. 199, sec. 2, effective June 27, 2019. -- Amended 2017 Ky. Acts ch. 63, sec. 14, effective June 29, 2017; and ch. 156, sec. 4, effective April 10, 2017. -- Amended 2009 Ky. Acts ch. 101, sec. 4, effective March 25, 2009. -- Amended 2006 Ky. Acts ch. 227, sec. 3, effective July 12, 2006. -- Amended 2004 Ky. Acts ch. 58, sec. 1, effective July 13, 2004; ch. 103, sec. 2, effective July 13, 2004; and ch. 188, sec. 2, effective July 13, 2004. -- Amended 2000 Ky. Acts ch. 212, sec. 2, effective July 14, 2000; and ch. 452, sec. 6, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 598, sec. 12, effective April 14, 1998. - - Amended 1996 Ky. Acts ch. 318, sec. 49, effective July 15, 1996; and ch. 362, sec. 6, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 256, sec. 4, effective July 1, 1994; and ch. 408, sec. 3, effective July 15, 1994. -- Created 1990 Ky. Acts ch. 476, Pt. I, sec. 5, effective July 13, 1990. Legislative Research Commission Note (6/29/2021). In codification, a correction has been made to subsection (7)(a)4. of this statute. Section 1 of 2021 Senate Bill 129, which amended this statute, contains a reference to "KRS 158.78," a number that does not correspond to any existing section of the Kentucky Revised Statutes. It is clear from the context and from consultation with the drafter that the reference was intended to read "KRS 158.782." Under the authority of KRS 7.136, the Reviser of Statutes has corrected this reference. Legislative Research Commission Note (3/25/2009). The Reviser of Statutes has altered the internal numbering of subsection (2) of this statute from the way it appears in 2009 Ky. Acts ch. 101, sec. 4, under the authority of KRS 7.136 (1)(c).