Kentucky’s education chief is warning of an estimated $40 million shortfall in funding to school districts this academic year. The shortfall is in the Support Educational Excellence in Kentucky (SEEK) program, which is the state’s main funding formula for public K-12 schools.
The SEEK formula includes a base per-pupil allocation, as well as additional funding for transportation costs and special-needs students.
"KDE is currently tracking an estimated SEEK shortfall of $12 million for funding to public school districts provided in Kentucky statutes," Education Commissioner Robbie Fletcher announced on Tuesday. "KDE estimates an additional shortfall of $28 million for funding to public school districts that is specifically conditioned on the availability of funds."
Fletcher said he’s working with the budget chairmen in the Kentucky House and Senate and the state budget director to minimize the impact to public schools.
Rep. Jason Petrie of Logan County, chair of the House Appropriations and Review Committee, said the General Assembly didn’t under-fund SEEK when it passed a two-year state budget in 2024.
“KDE, in conjunction with the Office of State Budget Director, they project estimates of what the funding requirements are that are given to us, upon which we attach funding," Petrie told WKU Public Radio. "When those estimates aren’t accurate, then you end up with an issue.”
Fletcher added that developing an education budget is complex and involves projecting property values, enrollments, and special-needs student populations, all of which can fluctuate.
Lawmakers could reopen the budget once this year’s session reconvenes in February. But Petrie said they won’t be inclined to do that until final calculations are reached by March 1st.
KDE will provide information to school districts regarding the impact to individual districts as soon as those final calculations are complete.
The state budget director predicted in November that Kentucky’s general fund revenue will drop by more than $200 million in the 2025 fiscal year.
Kentucky has experienced four SEEK funding shortfalls since 2010.
The latest estimates come as a student-led lawsuit claims the state is failing to provide Kentucky students with an adequate and equitable education.
The Republican super-majority in Frankfort says it’s made record investments in public education in recent years.