Kentucky School Advocate

May 2024

Staff report

Under House Bill 727, school boards will be able to issue a general obligation bond sold directly to banks, private investors and financial institutions.

House Bill 727 also extends the provisions of 2022’s HB 678 until June 30, 2027. That bill allows districts to move forward with construction projects without waiting for multiple approvals from the Kentucky Department of Education, but it was set to expire on June 30 of this year. 

HB 6, the budget bill, also contains language extending HB 678 through FY 2026. HB 727 also contains additional language not found in HB 6 that says KDE will continue to assist and provide guidance to local boards that request it.

Under HB 678, districts can use their capital outlay funds for projects without seeking KDE approval and use an architect’s estimate of the project for financing. Districts still file BG-1s project applications, but only for record keeping purposes. Also, KDE has 30 days to approve district facility plans and if extracurricular facilities are included on those plans, districts can use restricted funds for those projects without seeking a waiver from the Kentucky Board of Education. Boards must adopt a resolution saying that they plan to use HB 678’s provisions.