1. (1) Each local board of education, with the assistance of the district superintendent and district finance officer, shall establish a budget for each fiscal year as follows:

   1. (a) On or before January 31, the superintendent shall submit to the local board for review at a public meeting a draft budget that provides line item estimated revenues and proposed expenditures for the subsequent fiscal year;
   2. (b) On or before May 31: 1. And at least two (2) weeks prior to the public meeting required by subparagraph 2. of this paragraph, the superintendent shall submit to the local board a complete proposed tentative budget for the local board's consideration; and 2. At a public meeting of the local board: The local board shall review the proposed tentative budget; and a. b. After any discussion or amendment, the local board shall adopt a tentative budget for the subsequent fiscal year; and
   3. (c) On or before September 30: 1. And at least two (2) weeks prior to the meeting required by subparagraph 2. of this paragraph, the superintendent shall: a. Submit to the local board a complete proposed working budget for the local board's consideration; Submit to the local board a report explaining: i. The projected revenues from the various taxes levied by the district; b. ii. The appropriations that the district expects to receive from state and federal sources; iii. The projected expenditures for personnel, transportation, maintenance, and materials for the operation of the district; iv. Any one (1) time major expenses expected for the year, v. including those for special projects or programs; The projected revenues and expenditures associated with restricted funds, including facilities funds; vi. The costs associated with debts incurred by the district; and vii. How the minimum reserve required in subsection (2) of this section shall be maintained; and c. Deliver the items in subdivisions a. and b. of this subparagraph in a digital format to local board members. However, if a local board member requests the items also be delivered in physical format, the superintendent shall provide those within one (1) business day of the request in the format requested; 2. At a public meeting of the local board: a. The superintendent shall present to the local board: The proposed working budget; and i. ii. The report required in subparagraph 1.b. of this paragraph; b. The local board shall review the proposed working budget; and c. After any discussion or amendment, the local board shall adopt a working budget for the fiscal year; and 3. The local board shall submit to the Kentucky Board of Education the adopted working budget for final approval.
2. (2) A superintendent shall not propose and a local board of education shall not adopt a draft, tentative, or working budget that does not include a minimum reserve of at least two percent (2%) of the total budget.

Effective: July 15, 2026

History: Created 2026 Ky. Acts ch. 129, sec. 2, effective July 15, 2026.