An analysis from the Kentucky Center for Economic Policy published this month found that nearly all of the state’s public school districts are expected to see a decline in state funding for this school year when inflation is taken into account.
SEEK is the state’s primary formula for distributing education funding to local school districts. The formula considers factors including local property values, student attendance, special-needs enrollment and transportation costs. Because those factors vary from district to district, the amount of state funding each district receives can change significantly from one year to the next.
The state primarily uses the Support Education Excellence in Kentucky, or SEEK, formula to distribute education funding to local school districts. The amount each district receives is based on factors like local property values, student attendance and the number of students with additional educational needs.
Overall, Kentucky is expected to provide about $82 million less in SEEK funding to school districts this year than it did in the 2025-26 school year, according to the analysis by the left-leaning policy group.
About three-fourths of the state’s 171 school districts are expected to receive less in state SEEK funding this school year than they did last year, according to KyPolicy’s report. When adjusted for inflation, that figure rises to about 98% of districts.
The decline comes as the state’s SEEK base guarantee increased only slightly, from $4,586 per student in 2025-26 to $4,636 this school year. That represents an increase of about 0.9% – lower than the 3.7% inflation rate reported by the Consumer Price Index between September 2025 and September 2026. .
At the same time, statewide property assessments are expected to grow by about 7%, while attendance is projected to decline by 1.5%. KyPolicy officials say both factors can affect how much state funding districts receive through the SEEK formula.
In far western Kentucky, some of the districts that KyPolicy found may have the largest decreases in state SEEK funds for this school year, not factoring inflation, include:
- Paducah Independent: -$616,284
- Marshall County: -$614,847
- Calloway County: -$451,270
- Murray Independent: -$216,625
- Graves County: -$142,684
Not every district in the region is projected to receive less state funding. For example, KyPolicy estimates that McCracken County Schools will receive $465,373 more in SEEK funding this school year compared to last year – but when adjusted for inflation, that turns into a loss of more than $420,000.
The Kentucky Department of Education’s current SEEK figures are tentative. The state is expected to finalize the 2026-27 SEEK calculations in February.
