KDE predicts $40 million shortfall in SEEK funding for next school year

LOUISVILLE, Ky. (WDRB) -- Kentucky's top educator said the Department of Education is predicting a multi-million dollar shortfall to the Supporting Education Excellence in Kentucky (SEEK) fund.

In a letter made public on Tuesday, Education Commissioner Robbie Fletcher said KDE is, "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."

SEEK is a formula-driven allocation of state funds to Kentucky's school districts.

"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," Fletcher said. "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."

KDE said between 2010-2024 fiscal years, a shortfall has occurred four times.

Since 2017 there has been a surplus, according to KDE. The education commissioner added that last fiscal year, there was a $156.3 million surplus and that money was transferred to the state general fund which is 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," Fletcher said. "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."

Fletcher said the estimated shortfall is 1.43% of SEEK funding's $2.7 billion.

In conclusion, Fletcher said KDE is working with other state departments to explore funding options that could address the shortfall.

The announcement has brought forth a mixed response.

In a statement from Kentucky Speaker of the House David Osborne (R-Prospect), he said:

“We are aware that estimates provided by the Department of Education and used to determine SEEK funding in the budget were inaccurate and have led to a shortfall. We will continue to monitor the situation as we learn more about what caused it and receive the final figures in early March. The legislature remains committed to K-12 public education, providing historic levels of funding. And, we will continue to support the education of Kentucky children.

It is important to note that budgets are based on previous experience and future estimates, which makes information provided by KDE critical to the process. Multiple shortfalls over the past 15 years calls into question just how reliable that data is. This in turn provides further evidence that the work we are doing to ensure greater accountability for the resources provided on the state, local, and federal level is more important than ever.”

The Senate Majority Caucus also said it is aware of the estimated shortfall, and added the General Assembly allocated record per-pupil funding in the most recent biennial budget.

Jefferson County Public Schools, the state's largest district, estimated KDE's shortfall would cause an estimated $3 million loss for the district, but pointed the overwhelming majority of its general fund budget comes from local efforts.

A district spokesperson provided this statement:

"We are hopeful that the legislature will return some of the surplus SEEK funding that was transferred to the state’s general fund last year. The legislature has encouraged all Kentucky school districts to apply any increases in SEEK funding to boosting teacher salaries. Any shortfall would impact future raises for teachers and, potentially, academic programming as well."

The announcement of the shortfall follows a lawsuit filed by the Kentucky Student Voice Team which accuses the state's top educators and lawmakers of not fulfilling obligations of providing Kentucky students an adequate education.

The complaint filed in Franklin County states, "student academic achievement, civic preparation, college and career readiness, and student physical and mental wellness have all declined substantially in recent years. The Commonwealth of Kentucky, which was the national model for effective education reform in the 1990s, has now fallen behind in educational practices and accomplishments."

The plaintiffs include students from all over Kentucky, including Jefferson, Oldham and Hardin Counties.

In response to the shortfall predictions, KSTV said, in part, "the recent school funding shortfall is disappointing, it pales in comparison to the years of unconstitutional underinvestment that have left our public schools struggling."

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