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Jan. 21, 2025
Following a detailed review of preliminary data, the Kentucky Department of Education (KDE) currently estimates there will be a funding shortfall for the Supporting Education Excellence in Kentucky (SEEK) fund for the 2024-2025 school year.
The SEEK funding program is a formula-driven allocation of state-provided funds to Kentucky’s 171 public school districts. The formula includes a base per-pupil funding allocation, as well as additional funding for transportation costs and the number of students identified for additional services such as special education, free or reduced-price lunch and English language assistance.
KDE is currently tracking an estimated SEEK shortfall of $12 million for funding to public school districts provided in Kentucky statutes. KDE estimates an additional shortfall of $28 million for funding to public school districts that is specifically conditioned on the availability of funds.
Developing a biennial budget for public school funding is a complex process that involves estimating many future conditions – such as growth in the number of students and types of students (like those receiving special education services or English learners) and the growth in property values throughout the Commonwealth. KDE staff and the Kentucky Office of the State Budget Director work collaboratively to gather data projecting property values, public school enrollments and student special populations to inform the Kentucky General Assembly as they adopt a biennial budget. But these projections are always estimates using the best data available at the time. If estimates are too low, a funding shortage is always a possibility.
From fiscal year 2010 to fiscal year 2024, a SEEK shortfall has occurred four times. Since the 2017 fiscal year, the Commonwealth’s SEEK budget included more funding than was ultimately payable to districts as required by the SEEK formula. During the 2021 fiscal year, there was a $231,000 surplus in SEEK appropriations. During the last fiscal year, there was a $156.3 million surplus in SEEK appropriations.
When KDE has more funding than it needs make all payments to public school districts required by the SEEK formula, the Commonwealth’s budget directs where excess funding is transferred. For the last fiscal year, the $156.3 million in excess funding was transferred to the state general fund as required by the legislature.
These shortfall numbers are only estimates now and are subject to change in the upcoming weeks as the department completes final SEEK calculations. State law requires KDE to complete final SEEK calculations by March 1 of each year. KDE will provide information to school districts regarding the impact to individual districts as soon as those final calculations are complete. While we know this estimated shortfall is critical to our public schools, it is important to keep in mind that it represents 1.43% of our overall SEEK funding of $2.7 billion.
We are currently working closely with the Office of State Budget Director and the chairs of the Appropriations and Revenue committees in the House and Senate to explore funding options that may address this estimated shortfall and minimize impacts to Kentucky’s public schools. As always, we thank them for their assistance and we look forward to working together to find a path forward.
Thank you for being …
All In,
Dr. Robbie Fletcher
Commissioner of Education
Kentucky Department of Education
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