School finance bill clears House, 58-41

January 31, 2014

FRANKFORT—A House bill that would require certification of Kentucky school finance officers, change annual in-service training requirements for school board members and superintendents, and require both monthly and yearly public financial reports from districts has passed its first major hurdle.

House Bill 154, sponsored by Rep. Mike Denham, D-Maysville, cleared the House by a 58-41 vote Wednesday. It now goes to the Senate for consideration.

New annual in-service training for school board members required by the bill would be 12 hours for members with up to 8 years of board service and 8 hours for members with more than 8 years’ service. All board members would be required to have two hours of school finance training, two hours ethics training, and two hours superintendent evaluation training annually. Superintendents would have to complete at least three hours of annual training in school finance and at least three hours of ethics training annually.

Annual district financial reports would be required by the state within six months of the close of the fiscal year, and would be required by local school boards on a monthly basis. Both the monthly reports and yearly reports would be posted online.

The state Department of Education would be required to review each district’s annual financial report and, within two months, respond to the local board of education with a written report on the financial status of that district.

House Minority Floor Leader Jeff Hoover, R-Jamestown, called for what is known as a “fiscal impact statement” to be attached to the bill because of the potential cost of proposed changes, including the increase in annual in-service training for school board members. A fiscal impact statement shows what costs, if any, would be incurred by government by enacting a bill.

Rep. Jim DeCesare, R-Rockfield, said increasing annual training for school board members will cost money, as would paying the cost of certification of school finance officers. “I’m all about transparency, and I believe that we should put our checkbook online and we should let the taxpayers of Kentucky know exactly what’s going on,” he said. “However, by adding the continuing ed part to this bill, you’re basically putting an unfunded mandate on our local school districts. They’re going through a period right now where they’re struggling to make ends meet.”

The motion to require a statement on HB 154 was narrowly defeated. Denham and some other members had said in response to the motion for the statement that review of the legislation by legislative staff showed no need for one.

“We put the minimum requirements in here,” said Denham. “We need this transparency bill. We need this accountability bill.”