Kentucky Education Director warns of funding shortfall for SEEK

The shortfall has occurred four times in a 14 year period

(Story Courtesy of Kentucky Today)

FRANKFORT, Ky. (KT) – 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.

In a memo sent out Tuesday afternoon, Education Commissioner Robbie Fletcher says 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.

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.

Fletcher notes, “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 to make all payments to the districts required under the SEEK formula, the budget directs where excess funding is transferred. For the last fiscal year, $156.3 million in excess funding was transferred to the state general fund.

“These shortfall numbers are only estimates and are subject to change in the upcoming weeks as the department completes final SEEK calculations,” Fletcher said in the memo. “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 percent of our overall SEEK funding of $2.7 billion.”

He adds, KDE is 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.