Closing the Funding Gap: Ensuring Kentucky’s Education Budget Delivers

February 7, 2025

Closing the Funding Gap: Ensuring Kentucky’s Education Budget Delivers

In 1989, the Kentucky Supreme Court, in Rose vs. the Council for Better Education (commonly referred to as the Rose decision), declared the entire state system of public education unconstitutional. The court found that Kentucky’s public education system failed to meet the requirements of Section 183 of the state constitution, which mandates an "efficient system of common schools throughout the state." This lawsuit was prompted by major deficiencies in both the adequacy of public school funding and the equity of that funding in districts across the state. From this decision, the Kentucky legislature passed the Kentucky Education Reform Act, which, among many overhauls, included a new funding formula known as the Support Education Excellence in Kentucky (SEEK).

The Kentucky Association of School Superintendents commends the legislature for passing an education budget that moves us closer to adequate funding. Currently, however, a funding shortfall exists and it’s imperative this gap is closed in order for the budget to work and be made whole. Inadequate funding harms the entire budget process.

How is SEEK Calculated?

Every two years, Kentucky lawmakers set a per-student base funding amount multiplied by the district’s average daily attendance from the previous year. This is just a starting point, however, and not a guaranteed amount per student.

Next, add-ons adjust funding based on student needs:

At-risk students (free lunch eligible) = number of students x 15% of the base funding per student.
Home-hospital students = previous year’s average daily attendance x the base amount minus $100.
Exceptional children = funding varies by need level and the number of students (low, moderate, or high incidence).
Limited English proficiency students = number of students x 9.6% of the base funding per student.
Transportation funding is based on distance, frequency, and type of travel.

After calculating adjusted base funding, local effort is subtracted. Districts must contribute 30 cents per $100 of assessed property value, reducing the amount provided by the state. Wealthier districts receive less state aid, while poorer districts receive more to promote fairness.

Districts can raise local taxes beyond the required amount:

Tier One: Up to 17.5% more, with state equalization for poorer districts.

Tier Two: Up to 30% more (requires voter approval) but gets no state equalization.

A hold harmless provision ensures no district receives less than it did in 1992.

In short, SEEK funding aims to balance resources so all students, regardless of their district’s wealth, have access to similar educational opportunities.

Why do we have a funding gap?

Funding gaps are not new. When developing the budget for SEEK, estimates must occur as legislators are projecting two years out. Based on any number of factors within the formula, a surplus or shortfall will almost always happen. Over the past 15 years, shortfalls have occurred 4 times. But during the last fiscal year, there was a $156.3 million SURPLUS in SEEK funds that were swept to the state general fund.

Factors that impact SEEK include changes in:

Enrollment
Average Daily Attendance
At-risk students
Students w/disabilities and category of that disability
Students utlizing home-hospital services
Students with limited English proficiency
Transportation patterns within the district
Increase or decrease in property values
Local district tax rates

Since 2022, total enrollment has increased by almost 4,000 students across the state. In that same time frame, Kentucky public schools have seen an increase of over 10,000 at-risk students, 12,000 students with limited English proficiency, and 9,000 students with a disability. The shifts in these groups combined with a large variance in local property values across the state make the SEEK estimate an imperfect science. And yet, the shortfall is less than 1.5% of the total SEEK budget.

Why can’t local districts just pick up the cost?

A common argument is that local school districts have contingencies to cover just this sort of thing. In Kentucky, 2% of a local school district’s budget is REQUIRED to be in contingency, while at least 5% is recommended. In fact, many accountants recommend at least 3 months of operating costs in reserve. Much like people who try to save a portion of their income, school districts do the same.

The average school district in Kentucky has around 2200 students. When you are dealing with thousands of people (students and staff) being transported, fed, utilizing hundreds of thousands of square feet of buildings, ensuring their safety, and supporting the educational efforts of the next generation, there are many expenses. The roof has leaks, the heating unit stops working, an extra teacher is provided for a program needed for students, the bus breaks down - these costs are why a district has a contingency. In many districts, the contingency is developed because of expected large future expenses like a building project, staff raises, or expanded programs.

What must happen now?

It is crucial the Kentucky Legislature close this shortfall. The money is there. Last year, over $156 million from the SEEK fund lapsed back to the general fund. To close this year’s gap, 25% of that money is needed - a small drop in the bucket. School districts utilize expected SEEK dollars to create their budgets for the next year. Not closing the gap will lead to budget shortfalls locally, which could impact jobs, whether or not districts can give raises, and uncertainty in the budgeting process moving forward. This budget was a good education budget. It should not be short changed because of the SEEK shortfall.

The Kentucky Association of School Superintendents encourages every superintendent to reach out to their local legislators to discuss more specific talking points and how this shortfall could affect your district and your long-term plans. Now is the time to act to ensure we continue to focus on Kentucky public education funding.

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Teachers Enable Vibrant Learning

September 4, 2025

At the heart of every vibrant learning experience is a strong teacher. A great educator transforms content into curiosity, and classrooms into spaces where students feel both challenged and supported. When we talk about building a future-ready public education system in Kentucky, the starting point is clear: we must ensure a great teacher is present in every classroom. Kentucky’s school leaders have worked diligently to raise teacher pay in recent years. In fact, many districts have given some of the largest percentage raises in their history, and those efforts have largely kept pace with inflation. But keeping up is not the same as catching up. Teachers have not regained the ground lost during the lean years following the 2008 recession, when salaries failed to keep pace with rising costs. At the same time, private sector wages have surged ahead, widening the pay gap and making it harder to recruit and retain the next generation of educators. We cannot rob Peter to pay Paul. Long-term commitments such as pensions, health care, and retirement security are essential for stability in the profession. At the same time, year-to-year funding for salaries and classroom resources determines whether teachers feel valued and whether districts can attract the next generation of talent. Both elements matter. Both must be sustained. Teachers are not asking for luxuries; they are asking for the conditions that make vibrant learning possible. Competitive salaries, reliable benefits, and supportive working environments ensure Kentucky classrooms remain staffed with the kind of educators who bring lessons to life. Without these, we risk losing teachers to other professions or neighboring states, which is an outcome Kentucky cannot afford. This is why our legislative advocacy must stay focused on both sides of the equation. Investing in SEEK funding, protecting retirement systems, and ensuring sustainable pathways for compensation are not abstract policy debates. They are the concrete decisions that determine whether every Kentucky child has access to a strong teacher, every single year. As superintendents, we know the stakes. When teachers thrive, students thrive. Vibrant learning is not a slogan; it is the daily work happening in classrooms across the Commonwealth. Let us continue to lead with purpose, advocate with unity, and put Kids First by ensuring that Kentucky teachers have the respect, resources, and rewards they deserve.

District Spotlight: Wayne County

By Kristen Waits • September 3, 2025

In Monticello, Wayne County Schools is demonstrating the powerful outcomes possible when state investment, district leadership, and industry partnership align. The Wayne County Area Technology Center (ATC), a 75,000-square-foot facility opened in 2020, has become a model for how career and technical education (CTE) can secure Kentucky’s future workforce while transforming opportunities for students. A Hub for Career Readiness Designed to replicate real-world workplaces, the ATC immerses students in pathways ranging from Construction, Welding, Automotive Technology, and Machine Tool to Health Science, Agriculture, Computer Science, and Jobs for America’s Graduates (JAG). Classrooms feature robotics, CNC equipment, additive manufacturing, and industrial-grade tools, ensuring students leave with skills that directly match the needs of local employers. The ATC’s close proximity to Somerset Community College allows dual credit courses to flourish. All nine ATC instructors serve as KCTCS adjunct faculty, each offering multiple dual-credit opportunities that give students a head start on postsecondary credentials. Measuring Success The numbers tell a story of meaningful outcomes: 760 students are enrolled in ATC programs and 543 in high school CTE. 86% of ATC seniors graduate postsecondary ready through certifications, dual credit, or exams. 160 students registered for CTE dual credit in 2024–25, an increase fueled by Work Ready scholarships. A tailored IEP/ELP tutoring model helped ensure 100% of students with IEPs passed their ATC courses in 2024. Health Science shines especially bright, with a 100% pass rate for Medical Nurse Aide exams in 2025 and nearly perfect NOCTI results. Meanwhile, Agriculture students are operating a greenhouse that supplies produce to schools and nonprofits, Construction students are contributing to regional building projects, and Automotive students are competing successfully across the state. Safer, Smarter Facilities Legislative support has made these successes possible. The biennial ATC funding process through KDE, Federal Perkins allocations, Work Ready scholarships, and a recent HB 6 grant all directly strengthened Wayne County’s programs. Notably, HB 6 funding allowed the district to build a secure breezeway connecting the high school to the ATC—enhancing safety while ensuring seamless access to career pathways. A Superintendent’s Perspective “Our facilities are second to none, and our equipment rivals or surpasses what one will find in industry,” said Interim Superintendent Brian Dishman. “Students are being trained for tomorrow’s jobs and beyond.” Looking Forward Wayne County is focused on expanding work-based learning, boosting participation in non-traditional fields, and aligning credentials with regional workforce demand. Their story shows what’s possible when policy, funding, and local innovation come together: stronger schools, stronger communities, and stronger futures for Kentucky’s students. For more information, visit wayne.kyschools.us .

District Spotlight: Carroll County Schools

August 22, 2025

At the confluence of the Ohio and Kentucky Rivers, Carroll County is a close-knit community where schools serve as the center of life. With only 10,000 residents, nearly every family has a connection to the district. Strong partnerships with local industries allow Carroll County Schools to prepare students for futures both within the community and beyond. Superintendent Casey Jaynes emphasizes that the district’s role extends beyond academics. It is about ensuring students are prepared for the workforce opportunities that await them. Thanks to supplemental state funding for career and technical education (CTE), Carroll County High School launched a new Heavy Equipment Operator Pathway in the 2024–2025 school year. Known as CATALYST (Carroll Area Transportation and Logistics Youth Simulation Training), the program introduces students to heavy machinery operation through state-of-the-art simulators. The initiative is already opening doors. Students practice on the same equipment used by major employers such as Nucor, Luhn & Oak, and Kemper Construction, giving them a competitive advantage in high-demand fields. Many participants are also working toward a Commercial Driver’s License (CDL), a credential that expands career options after graduation. Industry partners share the enthusiasm. Shawn Keeton of Luhn & Oak Construction said, “For the school to embrace the needed training and worker shortage is a dream come true and something that I have thought about and worked toward for years.” This collaboration highlights Carroll County’s commitment to collective progress. For students like Dylan Service and Nahomy Lopez Perez, the program is already transformative. Dylan explained that he has gained skills ranging from safety procedures to actual equipment operation, which he believes will help him secure a job after high school. Nahomy, one of the program’s pioneering female participants, noted that the work requires focus and persistence, but with practice, success is possible. This initiative reflects KASS’s priorities: building a strong workforce pipeline, advocating for funding that delivers opportunities, and ensuring accountability that supports the United We Learn vision. Carroll County Schools is showing how community, education, and industry can come together to create opportunity. As Superintendent Jaynes put it, “Our community is changing, and we have to provide our employers with a technically skilled workforce.” Carroll County is ready to lead students toward that future. For more on this initiative, visit carroll.kyschools.us

What Are Local Measures of Quality? Why They Matter

August 22, 2025

In Kentucky, superintendents and education leaders are working toward a bold vision for accountability. Instead of relying only on state test scores, districts are beginning to design local measures of quality that reflect the needs, strengths, and values of their own communities. It’s powerful to watch districts all over the commonwealth engage deeply with their community to determine what is most important for the education of their students. Why Local Accountability Matters Every public school exists to serve its community. From its inception, Kentucky’s school districts have supported the local needs of its people and helped to shape generations. We (Families, students, and educators) all agree that schools should be measured not only by numbers on a page, but also by how well they are preparing young people to thrive in life. Local accountability ensures that Kids First is not just a motto, but a measure of success that is meaningful to every Kentucky student. Community Voice at the Center Local measures are not imposed from the outside. They are created with input from parents, students, educators, employers and community leaders. Some communities may highlight financial stewardship, while others focus on student leadership, growth over time, or readiness for the workforce. The power of local measures is the innovation that happens that others can learn from. Logan County chooses to provide a focus on student leadership while Bullitt County ensures authentic learning experiences for every child. What matters is that each district is empowered to define what quality looks like for its children. Kentucky is a commonwealth of diverse communities. What success looks like in a rural county may not be the same as in an urban district. Local measures allow each community to reflect its own priorities while contributing to a broader statewide vision. Together, these measures strengthen public education in Kentucky by ensuring that accountability is rooted in both excellence and relevance. Looking Ahead Launching a modern accountability system is one of the key priorities for Kentucky’s education future. Local measures will play a vital role in this system by providing a clearer, more complete picture of student learning and growth. By working together, superintendents and communities can ensure that every Kentucky student becomes the best version of themselves. KASS believes in strong accountability for our public schools. This means we MUST have our communities at the table to help us define what these measures should be. This has already started in communities across the state. Now is the time to ensure it is part of our accountability system for every student in the Commonwealth.

Welcome Back: Leading Kentucky Education Forward Together

August 14, 2025

As a new school year begins, we are excited to welcome back our students, staff, and school leaders across the Commonwealth. As we begin this new year, possibilities and challenges await. Our superintendents are the leadership heartbeat of our public education system, shaping futures, strengthening communities, and navigating through every challenge we face. This year brings both opportunity and urgency. The challenges before us (growing workforce needs, evolving accountability demands, and the need for sustainable funding) require unified, purposeful advocacy. The time is NOW for Kentucky to recommit to the work of public education and KASS remains committed to putting Kids First in every action. We stand with every Kentuckian to advance a vision of education that reflects the promise of every child and the values of every community in the Commonwealth. Our Top Legislative Priorities for 2026 1. Launch a Meaningful, Modern Accountability System Kentucky needs an accountability framework that measures more than test scores. Our vision is a system that partners with local communities, honors personal growth, and values the skills and attributes that make each student life-ready. This means elevating community-based accountability alongside state measures, ensuring that what we track truly reflects what matters most to families, educators, and employers. 2. Build a Strong, Sustainable Educator Workforce Pipeline Our schools are only as strong as the people who lead them. With education now recognized as a top five in-demand sector, we must attract, develop, and retain exceptional educators at every level. This includes competitive salaries, expanded pathways into the profession, and induction programs that set new teachers, principals, and superintendents up for success. 3. Secure a Budget that Invests in Long-Term Student Success To meet Kentucky’s goals, we must restore SEEK funding to the 2008 inflation-adjusted equivalent of $5,743 per student. Aligning our budget with our ambitions ensures that every district has the resources to address local needs, provide competitive wages, and deliver safe, high-quality learning environments. A Call to Lead Together The year ahead will be pivotal. KASS will continue to advocate with clarity, compassion, and resolve because the future of Kentucky’s children depends on it. We invite every superintendent to join us in reaching out to legislators, sharing local stories, and making our united voice heard in Frankfort. Your leadership matters. Your advocacy matters. Together, we can shape a world-class public education system for Kentucky.

Education is a High Demand Industry - District Solutions

March 27, 2025

Education as a High-Demand Sector: What It Means for Kentucky’s Schools