Kentucky Lawmakers and Education Leaders Confront School Funding Crisis: Key Insights and Solutions

Kentucky officials recently shared some concerning news about school funding. Education Commissioner Robbie Fletcher discussed a potential shortfall in the state’s SEEK funding, which could affect local school districts in the coming year.

According to Fletcher, preliminary data suggests a funding gap of around $40 million for the 2024-25 academic year. This prediction is based on several factors that contribute to the SEEK funding formula, including student enrollment and property values, which didn’t align with previous estimates.

Fletcher explained that determining these estimates involves a detailed process, working with the Office of State Budget Director to model the numbers. Unfortunately, the projections made in the fall of 2023 now seem outdated.

The SEEK formula is crucial because it decides how much state funding each school district receives. It includes a base amount for each student and additional funds for transportation and extra services for students, such as those in special education or those who need language support.

Over the past years, SEEK shortfalls have occurred sporadically—four times between 2010 and 2024. This time, $14.7 million of the predicted shortfall is mandated by state law, while the rest is flexible and could affect local districts depending on availability.

If no adjustments are made, the impact could be felt as early as April, with school districts facing reductions. For instance, Jefferson County Public Schools, the largest district in the state, might see a drop of $1.3 million this fiscal year.

Chay Ritter from the Kentucky Department of Education noted that while some districts might manage the cuts, for others, it could be a significant challenge.

When looking at data accuracy, estimates varied by as little as 0.2% to as much as 10.1% from actual costs. Even slight discrepancies can translate into million-dollar differences in the overall budget. The required $14.7 million represents about 0.5% of the Kentucky Department of Education’s total budget of $2.7 billion.

Recently, House Speaker David Osborne expressed concern over the reliability of the data coming from KDE. He pointed out a “disturbing trend” of inaccuracies that have made budgeting challenging for lawmakers, highlighting the need for better information.

Senate President Robert Stivers also commented on the situation, noting that although there was a slight undercount, other factors like rising property taxes contributed to the shortfall. He emphasized that adjustments to SEEK funding are not uncommon.