FRANKFORT, Ky. (WTVQ)- A new bill will grant $7 million in surplus SEEK funds to 12 financially-struggling public school districts.
This surplus in 2017-2018 SEEK, Support Education Excellence in Kentucky, funds will allow these schools to make payroll under a House proposal this year.
SEEK funds are the main source of public education funding in Kentucky and under House Bill 141 would be loaned to the school districts from an existing, but never used state emergency school fund.
Loans will be limited to $500,000 and require repayment without interest within five years.
This bill is sponsored by Rep. John Carney, R-Campbellsville who calls the bill a short term solution to the financial issues within the districts.
Most of the affected school districts reside in Eastern Kentucky where the difficult financial situation has been caused by circumstances outside of their control.
Under the current law, any unused funds would go to the state’s permanent pension fund.
HB 141 now goes to the full House for its consideration.