The Kentucky Department of Education estimates that there will be a funding shortfall for the Supporting Education Excellence in Kentucky (SEEK) fund for the 2024-2025 school year.
This estimation comes from a detailed review of preliminary data, according to the release.
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.
According to the release, Kentucky Department of Education is currently tracking an estimated shortfall of $12 million for funding to public school districts provided in Kentucky statutes.
The department also estimates an additional shortfall of $28 million for funding to public school districts that are 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.
Kentucky Department of Education 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.
The 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. According to the release, since the 2017 fiscal year, the state’s SEEK budget included more funding than was ultimately payable to districts as required by the SEEK formula.
When the department has more funding than it needs to make all payments to public school districts required by the formula, the state’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 the Kentucky Department of Education to complete final SEEK calculations by March 1 of each year.
Kentucky Department of Education will provide information to school districts regarding the impact on individual districts as soon as those final calculations are complete. Officials understand that the estimated shortfall is critical to public schools, but it represents only 1.43% of overall SEEK funding of $2.7 billion.
The department is working 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.
Source: WBKO
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