As debates heat up around Kentucky’s education budget shortfall, many people are asking: What exactly is SEEK funding, and why does it matter? Let me break down this complex but crucial system that affects every public school student in our Commonwealth.

The Basics of SEEK

SEEK (Support Education Excellence in Kentucky) is the foundation of public school funding in Kentucky. This formula-driven program provides state funds to all 171 public school districts using a complex calculation that considers multiple factors. Think of it as a three-layered cake of funding:

Base Funding: Every district receives a guaranteed base amount per student. This forms the foundation of school funding and is meant to ensure a basic level of education support for every Kentucky student.

Tier 1: Districts can raise additional money through local taxes up to 30% above their base funding. The state provides equalization funds to help poorer districts that can’t raise as much local money, trying to level the playing field.

Tier 2: Districts can raise even more local money beyond Tier 1, but without state matching. This is where funding inequities often become most apparent.

The Formula at Work

SEEK’s formula considers several key factors:

• Daily student attendance
• Transportation costs (particularly important for rural districts)
• Number of students receiving special education services
• Number of students qualifying for free/reduced lunch
• English language learner populations
• Local property values and tax rates

The Real-World Impact

Here’s where theory meets reality. Let’s consider two hypothetical Kentucky districts:

Riverdale District:

• High property values
• Strong business tax base
• Can easily raise local funds
• Less dependent on state funding
• Better able to weather state funding cuts

Mountain District:

• Lower property values
• Limited business presence
• Struggles to raise local funds
• Heavily dependent on state funding
• Severely impacted by funding cuts

This disparity explains why the current $40.6 million shortfall ($12 million in required funding and $28 million in conditional funding) affects districts differently. While it represents 1.43% of the total $2.7 billion SEEK budget, the impact isn’t evenly distributed.

Recent Challenges

The system faces several current challenges:

• Unexpected enrollment growth (4,000 more students than projected)
• Increasing special education needs
• Growing English language learner populations
• Lower-than-expected property value assessments
• Upcoming reductions in federal funding

Historical Context

Looking at recent history provides important context. Since 2010, SEEK has faced shortfalls four times. However, we’ve also seen surpluses:

• 2021 fiscal year: $231,000 surplus
• Last fiscal year: $156.3 million surplus

These surpluses were returned to the state’s general fund rather than being held in reserve or reinvested in education – a policy decision that impacts our current situation.

Based on the analysis of the SEEK funding data from 2014 to 2024, here are the key trends and observations:

1. Base Guarantee Trends:

• Started at $2.36B in 2014
• Remained relatively stable around $2.35-2.40B from 2014-2019
• Dropped slightly in 2019-2020 to $2.36B
• Saw a significant increase starting in 2021, reaching $2.53B in 2024
• Overall trend shows a 7.2% increase from 2014 to 2024

2. Total Calculated Base SEEK:

• Started at $3.18B in 2014
• Showed steady growth from 2014-2018
• Experienced a slight decline in 2019-2020
• Strong recovery and growth from 2021 onwards
• Reached its highest point in 2024 at $3.69B
• Shows an overall increase of 15.7% from 2014 to 2024

3. Total Final SEEK Funding:

• Started at $2.46B in 2014
• Remained relatively stable between $2.46-2.49B from 2014-2018
• Significant decline in 2019-2020, dropping to $2.23B (lowest point)
• Recovery began in 2021
• Projected to reach $2.52B in 2024
• Shows modest overall growth of 2.2% from 2014 to 2024

Key Observations:

1. COVID-19 Impact: There was a notable decline in funding during 2019-2020, likely due to the pandemic’s impact on state revenues and education spending.
2. Recovery Period: The funding showed strong recovery starting in 2021, with significant increases in both base guarantee and total calculated base SEEK.
3. Funding Gap: There’s a consistent gap between the Total Calculated Base SEEK and the Total Final SEEK, indicating that the actual funding received is significantly less than the calculated need.
4. Recent Growth: The forecast for 2024-2025 shows continued growth across all funding components, suggesting a positive trend in education funding commitments.
5. Volatility: The Total Final SEEK funding shows more volatility than the Base Guarantee, suggesting that ad

The Future of SEEK

As Kentucky faces education funding challenges, several questions need addressing:

1. Should surplus SEEK funds be retained in education rather than returned to the general fund?
2. How can we better project student population changes and needs?
3. What mechanisms could help reduce funding disparities between wealthy and poor districts?
4. How can we ensure stable funding amid changing economic conditions?

Understanding SEEK isn’t just about knowing how schools get money – it’s about understanding how our state values education equity. The system was designed to ensure every Kentucky student receives adequate educational opportunities, regardless of their location or economic circumstances. As we face current funding challenges and consider future changes, maintaining this core principle of educational equity must remain our priority.

Let me know if you have questions about how SEEK funding affects your local district or if you’d like to discuss specific aspects of the funding formula in more detail.

This is part of a series of blog posts about public education in Kentucky and current political changes affecting classrooms across the Commonwealth. To read more about KY Education follow this link.