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House OKs Bill Allowing Emergency Loans To School Districts - LEX18.com | Continuous News and StormTracker Weather

House OKs Bill Allowing Emergency Loans To School Districts

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FRANKFORT, Ky. (AP) - The Kentucky House has voted to pump money into an emergency loan fund that could be tapped by school districts struggling from sharp declines in tax collections.

House members voted 85-2 Friday to send the measure to the Senate.

The loan program already exists but Rep. John "Bam" Carney says it's never been funded.

The bill comes as several school districts in the state's eastern and western coal-production regions are struggling to pay their bills due to plummeting tax collections.

State education officials would run the loan program. No-interest loans would be limited to $500,000 and would have to be repaid within five years. Money for the loan program would come from excess funds from the state's main funding formula for public education.

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