Ky. Rev. Stat. » Chapter 160
Kentucky Revised Statutes

Ky. Rev. Stat. § 160.160 (2026)

Boards of education -- Powers and procedures –Approval of Department

✓ current as of May 2026
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of Education required for mortgages and leases -- Authorization for general obligation bonds -- Rental and debt service payments -- Funds intercept -- Sale of real or personal property by board.

(1) Each school district shall be under the management and control of a board of education consisting of five (5) members, except in counties containing a city of the first class wherein a merger pursuant to KRS 160.041 shall have been accomplished which shall have seven (7) members elected from the divisions and in the manner prescribed by KRS 160.210(5), to be known as the "Board of Education of ...., Kentucky." Each board of education shall be a body politic and corporate with perpetual succession. It may sue and be sued; make contracts; expend funds necessary for liability insurance premiums and for the defense of any civil action brought against an individual board member in his official or individual capacity, or both, on account of an act made in the scope and course of his performance of legal duties as a board member; purchase, receive, hold, and sell property; issue its bonds to build and construct improvements; and do all things necessary to accomplish the purposes for which it is created. Each board of education shall elect a chairman and vice chairman from its membership in a manner and for a term prescribed by the board not to exceed two (2) years.

(2) No board of education shall participate in any financing of school buildings, school improvements, appurtenances thereto, or furnishing and equipment, including education technology equipment without:

(a) First establishing the cost of the project in advance of financing, based on the receipt of advertised, public, and competitive bids for such project, in accordance with KRS Chapter 424; and

(b) Establishing the cost of financing in advance of the sale of any bonds, certificates of participation in any leases, or other evidences of financial commitments issued by or on behalf of such board. Any bonds, leases, participations, or other financial arrangements shall not involve a final commitment of the board until the purchaser or lender involved shall have been determined by public advertising in accordance with KRS Chapter 424.

(3) No board of education shall make a mortgage, lien, or other encumbrance upon any school building owned by the board, or transfer title to any such school building as part of any financing arrangement, without the specific approval of the Department of Education, and without the transaction being entered into pursuant to a detailed plan or procedure specifically authorized by Kentucky statute.

(4) Without the approval of the Department of Education, no board may lease, as lessee, a building or public facility that has been or is to be financed at the request of the board or on its behalf through the issuance of bonds by another public body or by a nonprofit corporation serving as an agency and instrumentality of the board, or by a leasing corporation. Any lease, participation, or other financial arrangement shall not involve a final commitment of the board unless and until the purchaser or lender involved in same shall have been determined by public advertising in accordance with KRS Chapter 424. No transaction shall be entered into by the board except upon the basis of public advertising and competitive bidding in accordance with KRS Chapter 424.

(5) A school district may issue general obligation bonds in accordance with KRS Chapter 66.

(6) Rental payments due by a board under a lease approved by the Department of Education in accordance with subsection (4) of this section, and debt service payments under a general obligation bond issued in accordance with this section, shall be due and payable not less than ten (10) days prior to the interest due date for the bonds, notes, or other debt obligations issued to finance the building or public facility. If a board fails to make a rental payment when due under a lease or a debt service payment when due for a general obligation bond issue, upon notification to the Department of Education by the paying agent, bond registrar, or trustee for the bonds not less than three (3) days prior to the interest due date, the Department of Education shall withhold or intercept any funds then due the board to the extent of the amount of the required payment on the bonds and remit the amount to the paying agent, bond registrar, or trustee as appropriate. Thereafter, the Department of Education shall resolve the matter with the board and adjust remittances to the board to the extent of the amount paid by the Department of Education on the board's behalf.

(7) Bonds, notes, or leases negotiated to provide education technology shall not be sold for longer than seven (7) years or the useful life of the equipment as established by the state technology master plan, whichever is less.

(8) Notwithstanding any requirements of public advertising, competitive bidding, or approval by the Department of Education, or any administrative regulation promulgated pursuant to KRS 156.160(1)(o), a local board may authorize the transfer or sale of the district's real or personal property to another governmental or quasi-governmental agency in exchange for money or a similar type of property that equals or exceeds the fair market value of the district property as determined by an independent appraisal conducted by:

(a) An individual or organization not affiliated with the district or its officers or employees, using a generally accepted national or professional standard; or

(b) A district's officers or employees using a nationally published valuation of property based on the most recent edition of the publication. Effective: July 15, 2024 History: Amended 2024 Ky. Acts ch. 126, sec. 3, effective July 15, 2024. -- Amended 2023 Ky. Acts ch. 63, sec. 7, effective June 29, 2023. -- Amended 1994 Ky. Acts ch. 288, sec. 1, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 195, sec. 7, effective April 3, 1992. -- Amended 1990 Ky. Acts ch. 476, Pt. II, sec. 88, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 421, sec. 1, effective July 15, 1988. -- Amended 1982 Ky. Acts ch. 59, sec. 1, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 11, sec. 1, effective February 24, 1978. -- Amended 1974 Ky. Acts ch. 224, sec. 2. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4399-17, 4399-18. 2024-2026 Budget Reference. See State/Executive Branch Budget, 2024 Ky. Acts ch. 175, Pt. I, C, 2, (7) at 1832.

Notes of Decisions
Cited in 46 cases (5 in the last 5 years), 1945–2026 · leading case: Rose v. Council for Better Educ., Inc., 790 S.W.2d 186 (Ky. 1989).
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Rose v. Council for Better Educ., Inc., 790 S.W.2d 186 (Ky. 1989). · cites it 5× “" KRS 160.160 (emphasis added). This corporate body politic is specifically granted the power to do " all things necessary " to carry out its duties and responsibilities, including exercising its right to sue and be sued.”
Bd. of Educ. of Rockcastle Cnty. v. Kirby, 926 S.W.2d 455 (Ky. 1996). · cites it 24× “310 and KRS 160.160, together with the purchase of insurance, constitute a waiver of the sovereign immunity of the school board to the extent of the insurance coverage.”
James v. Wilson, 95 S.W.3d 875 (Ky. Ct. App. 2002). · cites it 2× “070, and the local school boards, KRS 160.160, as agencies through which it implements its constitutional mandate" [93] to provide "an efficient system of common schools" and maintain it in a constitutional manner.”
Grayson Cnty. Bd. of Educ. v. Casey, 157 S.W.3d 201 (Ky. 2005). · cites it 4× “Having so concluded, the Court of Appeals did not address Casey’s other contentions that KRS 160.160(1) and the 1998 budget bill (House Bill 321, Part V, § 35 (Ky.”
Yanero v. Davis, 65 S.W.3d 510 (Ky. 2001). “070, and the local school boards, KRS 160.160, as agencies through which it implements its constitutional mandate, much as the Executive Branch of government delegates many of its responsibilities to its cabinets.”
Nelson Cnty. Bd. of Educ. v. Forte, 337 S.W.3d 617 (Ky. 2011). · cites it 3× “The board has the power, among other things, to own property, make contracts, expend funds, and issue bonds, KRS 160.160, “generally] control and manage[ ] .”
Reis v. Campbell Cnty. Bd. of Educ., 938 S.W.2d 880 (Ky. 1996). · cites it 4× “As we further stated in Rose , “our General Assembly has given local districts a perpetual, corporate existence, and has in two statutes (KRS 160.160 and 160.290), specifically given local boards virtual unlimited authority to carry out their duty of promoting local education.”
State Bd. for Elementary & Secondary Educ. v. Ball, 847 S.W.2d 743 (Ky. 1993). · cites it 7× “KRS 160.160(2) provides that: (2) No board of education shall participate in any financing of school buildings, school improvements, appurtenances thereto, or furnishing and equipment, including education technology equipment without: (a) First establishing the cost of the…”
McFarland Ex Rel. McFarland v. Jefferson Cnty. Pub. Schs., 330 F. Supp. 2d 834 (W.D. Ky. 2004). · cites it 2× “The Board is a corporate body which is organized and exists pursuant to KRS § 160.160. It has the powers and duties stated in KRS § 160.”
Reyes v. Hardin Cnty., 55 S.W.3d 337 (Ky. 2001). “2d 455 (1996), construing KRS 160.160(1) (“It may ... expend funds necessary for liability insurance premiums.”
Webb v. Jessamine Cnty. Fiscal Court, 802 F. Supp. 2d 870 (E.D. Ky. 2011). · cites it 2× “The Court will grant Defendants’ Motion for Summary Judgment and dismiss Plaintiffs state law claims for negligence and intentional infliction of emotional distress against Defendants Jessamine County Fiscal Court and JCDC and *888 the individual defendants in their official…”
Gerberding v. Munro, 134 Wash. 2d 188 (Wash. 1998). “§ 183; Ky. Rev. Stat. Ann. § 160.160 (Michie 1994).”
Show all 46 citing cases →
— Ky. Rev. Stat. § 160.160(1) — 11 cases
Grayson Cnty. Bd. of Educ. v. Casey, 157 S.W.3d 201 (Ky. 2005). “Having so concluded, the Court of Appeals did not address Casey’s other contentions that KRS 160.160(1) and the 1998 budget bill (House Bill 321, Part V, § 35 (Ky.”
Bd. of Educ. of Rockcastle Cnty. v. Kirby, 926 S.W.2d 455 (Ky. 1996). “310 and KRS 160.160, together with the purchase of insurance, constitute a waiver of the sovereign immunity of the school board to the extent of the insurance coverage.”
Nelson Cnty. Bd. of Educ. v. Forte, 337 S.W.3d 617 (Ky. 2011). “The board has the power, among other things, to own property, make contracts, expend funds, and issue bonds, KRS 160.160, “generally] control and manage[ ] .”
Reis v. Campbell Cnty. Bd. of Educ., 938 S.W.2d 880 (Ky. 1996). “As we further stated in Rose , “our General Assembly has given local districts a perpetual, corporate existence, and has in two statutes (KRS 160.160 and 160.290), specifically given local boards virtual unlimited authority to carry out their duty of promoting local education.”
Reyes v. Hardin Cnty., 55 S.W.3d 337 (Ky. 2001). “2d 455 (1996), construing KRS 160.160(1) (“It may ... expend funds necessary for liability insurance premiums.”
— Ky. Rev. Stat. § 160.160(2) — 1 case
State Bd. for Elementary & Secondary Educ. v. Ball, 847 S.W.2d 743 (Ky. 1993). “KRS 160.160(2) provides that: (2) No board of education shall participate in any financing of school buildings, school improvements, appurtenances thereto, or furnishing and equipment, including education technology equipment without: (a) First establishing the cost of the…”
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