KY HB834

Establishes a three-phase budget process for school districts: draft budget due by January 31, tentative budget adopted by May 31, and final working budget adopted by September 30 with Kentucky Board of Education approval required.

Requires all school district budgets to maintain a minimum reserve of at least 2% of the total budget; superintendents cannot propose and boards cannot adopt budgets that fail to meet this threshold.

Authorizes the Commissioner of Education to investigate and intervene in school districts when there is suspected waste, fraud, fiscal mismanagement, or inaccurate financial records, including requiring targeted financial training and corrective action plans.

Specifies triggers for state investigation including material internal control weaknesses, unresolved audit deficiencies, qualified or adverse audit opinions, repeated fiscal noncompliance findings, and general fund reserves falling below 2%.

Requires superintendents to provide detailed budget reports to local boards explaining projected revenues from taxes and state/federal sources, expenditures for personnel and operations, one-time major expenses, restricted fund activity, debt costs, and reserve maintenance plans.