LOUISVILLE, Ky. (WDRB) --Â A new report reveals, while there's lots of good work being done within Kentucky's education department, there are also some "inefficiencies and gaps."
Kentucky Auditor of Public Accounts (APA) Allison Ball released the findings of a Kentucky Department of Education (KDE) special examination on July 1, 2025. After reviewing the 556 page report, Ball claims millions of dollars in state funding lapsed.
"Kentucky’s children deserve to receive the education they need to be competitive in the real world," Ball said. "This examination provides a clear path forward for student success, parent accessibility, and teacher support in all of Kentucky’s schools. It can serve as a guiding document for Commissioner Fletcher as he continues his work to improve the state of public education across our Commonwealth."
Kentucky lawmakers and House Bill 825 required this examination of KDE to identify improvements needed within the agency. The APA worked with PCG Consulting Group to conduct an "extensive examination" of KDE’s activities from July 1, 2020 through June 30, 2024.
"KDE remains committed to maintaining transparency and integrity," Kentucky Commissioner of Education Robbie Fletcher said in a statement regarding the report.
The report reveals KDE received nearly $6.4 billion in the 2024 fiscal year.Â
"KDE erroneously allowed over $250 million in SEEK funds to lapse instead of reallocating the funds to cover alleged funding shortfalls, including the most recently complained of shortfall this past January," Ball said. "KDE should not have allowed $250 million in SEEK funds to lapse when that money could have been used to cover complained of shortfalls."
SEEK is a formula-driven allocation of state funds to Kentucky's school districts. The report suggests KDE should use all of that money in the future so it doesn't go to waste again.
Ball also said "KDE’s preschool funding mechanism violates the U.S. Constitution as recently reaffirmed by the United States Supreme Court."
WDRB dug into that section of the report and found Kentucky Administrative Regulations (KAR) allows state funding to go toward secular, private programs, but not religious ones. This violates the Free Exercise Clause of the First Amendment, so the report suggests KDE become more in-line with Supreme Court precedent.
Ball also raises concerns that KDE and Kentucky High School Athletic Association (KHSAA) "are not mitigating the risk of sexual harassment and abuse of student-athletes."
"There is currently no voluntary or required database or tracking system to monitor all middle or high school coaches investigated or charged with inappropriate behavior toward a minor," Ball said. "Public reporting has revealed at least 80 known cases of alleged child sexual misconduct by Kentucky middle and high school coaches during the past 15 years."
The report found KHSAA didn't have a system for tracking Title IX complaints, and this "puts students in danger." It recommends developing a database and new legislature to ensure "complaints are investigated, resolved, or properly referred."
Several new Kentucky laws went into effect June 27 and aim to tackle this issue. Moving forward, schools will provide students with age-appropriate training to combat child sexual abuse. Coaches will also get training on how to report signs of abuse.
The report found special education data systems and monitoring activities are ineffective to support Local Education Agency (LEAs) when it comes to closing performance gaps for students with Individualized Educational Plans (IEPs). Officials recommend refining those monitoring and support efforts to see better educational and functional results for students with disabilities.
"While KDE has developed a robust and intentional system for ensuring school district compliance with federal and state special education regulations, students with disabilities served by special education in Kentucky have not demonstrated meaningful academic outcomes over time," Ball said.
Kentucky Commissioner of Education Robbie Fletcher shared the following in the special examination:
"The overall culture at KDE is positive and morale is high, staff take pride in their work, care about student success, believe in the mission of the agency, and overall work well together and with districts," Fletcher said in a statement. "KDE looks forward to utilizing the APA's final report as it identifies opportunities for future growth and plans for its continued improvement in service of Kentucky's public school students. KDE welcomes the opportunity to work with the Kentucky General Assembly for legislative changes necessary to accomplish recommendations within the Draft Report."
Gov. Andy Beshear said the Kentucky Department of Education is an independent agency, which alone has the authority to control its own programs and regulations.
"Kentuckians know I will always stand with our families, kids and educators and strive to make progress to ensure every child in Kentucky has access to the best education," Beshear released in a statement. "I have built an education-first administration and advocated – repeatedly – for investments in our public schools through teacher raises, pre-K and more, because I know that education is the key to breaking generational cycles of poverty and building a brighter future for all our people. In fact, my proposed budget fully funded student transportation, but unfortunately, the General Assembly failed to act on that and other initiatives."
For a look at the full report, click here.
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