KY HB801

School districts with traditional school buildings having fewer than 150 students in average daily attendance for at least three consecutive years must either submit a facility plan to close and consolidate that building with another facility, or modify attendance areas to raise enrollment above 200 students.

Qualifying school districts may levy an additional $0.05 equivalent tax rate beginning August 1, 2026, not subject to recall, to fund facility improvements related to school consolidation; a second $0.05 levy may be added beginning August 1, 2027 if needed.

State equalization funding at 150% of the statewide average per pupil assessment is provided for these new consolidation-related levies, with equalization suspended if districts fail to complete consolidation or raise attendance within five years of construction completion.

The new levies expire after 25 years and are limited to districts that have not already authorized more than two of the existing facility-related levies under current law.

Appropriates $3,500,000 in General Fund moneys for each fiscal year of the 2026-2028 biennium to the SEEK program for equalization of the new consolidation levies, with an emergency effective date of July 1, 2026.