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Kentucky Lawmakers Advance Bill For Emergency School District Loans
By: Associated Press
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FRANKFORT, Ky. (AP) – Kentucky lawmakers are considering a bill that would put $7 million into an emergency loan fund for school districts struggling to pay basic operations due to declining tax collections.
The measure cleared the House Appropriations and Revenue Committee on Tuesday.
The bill comes as some eastern Kentucky school districts long dependent on coal-related tax revenues have been hard hit by declining coal production.
The proposal would expand access to the loan fund to include those districts. Districts hurt by factory closures would also be eligible.
Rep. John “Bam” Carney sees his bill as a “short-term” response to a district’s struggles.
Money for the loans would come from excess funds in the state’s main funding formula for public education. No-interest loans would be limited to $500,000.