The House budget freezes school transportation funding and makes small increases in the guaranteed base funding level used to determine payments to school districts under the SEEK formula. Though the current House Budget is an improvement from the initial version, an estimated 82% of school districts would still receive lower SEEK payments in 2028 than they did in 2026 once inflation is taken into account. That would continue a 20-year trend of eroding state funding for public education.
Cuts come from failing to follow the transportation law and freezing base guarantee
SEEK is the core funding formula for schools that provides a guaranteed minimum amount of base funding per student with funding responsibility divided between the state and school districts. The formula accounts for district property wealth with the state providing a larger portion of funds to poorer districts in recognition of their relative lack of local wealth to tax. The formula also includes add-on amounts for transportation costs and the number of students with various special needs.
While the SEEK formula decides how much is allocated between school districts, the amount of money available to distribute through the formula is based entirely on choices made by the General Assembly — including whether to set the SEEK base guarantee at a level that meets the cost of providing a high-quality education and whether to follow the legislature’s own laws on funding for the transportation of students.
The House’s budget, HB 500, suspends the law that requires the state to fund 100% of the cost of school transportation (a law that has been suspended in every budget for more than 20 years). The House proposal funds only 81% of these costs, an amount that is $93 million a year less than what the law would require.
HB 500 increases the SEEK base per pupil guaranteed from $4,586 to $4,626 in 2027 and $4,792 in 2028. That’s an increase of 0.9% the first year of the budget and 3.6% the second. But this budget would not make up ground on the erosion of SEEK funding due to inflation: the SEEK guaranteed base was $3,822 per student in 2008, which is $6,197 in 2028 dollars. The House budget’s 2028 SEEK guaranteed base is 23% less than it was two decades prior.
82% of districts would receive an inflation-adjusted cut in House budget
The combination of frozen transportation funding and a small increase in the SEEK guarantee affects districts differently depending on local factors, including expected trends in property values and student population. But in most districts, it is not enough money for state payments to keep up with growth in inflation, which is projected at 2.8% in 2027 and 2.3% in 2028 in the official state forecast. In total:
- 49 of 171 school districts (29%) would receive lower SEEK payments in 2028 than in 2026;
- 139 districts (82%) would receive lower SEEK payments in 2028 than 2026 once inflation is taken into account;
- 130 districts (76%) would receive lower payments on a per-pupil, inflation-adjusted basis
See the table below for KyPolicy’s estimated changes in state SEEK payments to districts in the House budget using projections of SEEK parameters developed by the Department of Education for the budgeting process. Non-SEEK payments to school districts are also an important part of school budgets but are not included here. For example, funding for preschool, extended school services like afterschool programs and Family Resource and Youth Service Centers are also frozen in the House budget.
Change in SEEK Payments in the House Budget
| School district | Difference in state SEEK payments, 2026 to 2028 | Inflation-adjusted | Inflation-adjusted change as a percent of 2028 state SEEK plus local effort | Per pupil |
|---|---|---|---|---|
| Adair County | $584,356 | -$133,450 | -1% | -1% |
| Allen County | -$156,678 | -$1,027,978 | -4% | -4% |
| Anchorage Independent | -$24,527 | -$61,733 | -2% | -1% |
| Anderson County | $188,189 | -$514,294 | -2% | -2% |
| Ashland Independent | $297,280 | -$519,316 | -2% | 1% |
| Augusta Independent | $279,667 | $179,649 | 7% | -3% |
| Ballard County | -$266,605 | -$483,803 | -7% | -1% |
| Barbourville Independent | $98,094 | -$121,701 | -3% | 0% |
| Bardstown Independent | $600,902 | $18,161 | 0% | -3% |
| Barren County | -$117,830 | -$1,352,281 | -4% | -3% |
| Bath County | $375,776 | -$193,081 | -1% | -1% |
| Beechwood Independent | $434,152 | $170,126 | 2% | -1% |
| Bell County | $341,942 | -$452,613 | -2% | 1% |
| Bellevue Independent | -$71,713 | -$126,748 | -3% | -1% |
| Berea Independent | $13,127 | -$285,229 | -4% | 1% |
| Boone County | $3,668,331 | $776,155 | 0% | 0% |
| Bourbon County | -$626,656 | -$1,047,081 | -6% | -5% |
| Bowling Green Independent | $1,667,456 | $372,595 | 1% | -2% |
| Boyd County | $399,568 | -$246,817 | -1% | 0% |
| Boyle County | $498,041 | -$186,670 | -1% | -2% |
| Bracken County | $475,681 | $154,717 | 2% | 2% |
| Breathitt County | $141,273 | -$430,862 | -3% | 0% |
| Breckinridge County | $64,214 | -$589,600 | -3% | -1% |
| Bullitt County | -$1,839,364 | -$3,777,699 | -4% | -5% |
| Burgin Independent | $147,382 | $52,125 | 1% | -1% |
| Butler County | $229,494 | -$445,242 | -3% | -3% |
| Caldwell County | $144,481 | -$332,558 | -3% | -2% |
| Calloway County | -$271,714 | -$822,719 | -4% | -3% |
| Campbell County | -$1,402,503 | -$2,076,770 | -5% | -5% |
| Campbellsville Independent | $385,675 | -$7,258 | 0% | -1% |
| Carlisle County | $140,029 | -$49,633 | -1% | -1% |
| Carroll County | $783,296 | $306,404 | 2% | 2% |
| Carter County | $693,197 | -$469,321 | -2% | 0% |
| Casey County | $450,201 | -$205,575 | -1% | -1% |
| Caverna Independent | $29,598 | -$90,025 | -2% | -1% |
| Christian County | $52,021 | -$1,719,015 | -3% | -2% |
| Clark County | $1,134,262 | $14,301 | 0% | -1% |
| Clay County | -$251,016 | -$1,278,412 | -6% | 1% |
| Clinton County | -$325,514 | -$747,779 | -7% | -2% |
| Corbin Independent | $1,173,402 | $313,391 | 1% | 0% |
| Covington Independent | $1,301,890 | $537,101 | 2% | 2% |
| Crittenden County | $398,688 | $34,281 | 0% | 0% |
| Cumberland County | $55,247 | -$205,352 | -3% | -2% |
| Danville Independent | $277,131 | -$116,538 | -1% | -1% |
| Daviess County | $1,380,393 | -$857,785 | -1% | 0% |
| Dawson Springs Independent | $480,426 | $286,524 | 6% | -3% |
| Dayton Independent | -$30,829 | -$245,625 | -4% | -3% |
| East Bernstadt Independent | $81,598 | -$63,318 | -2% | 0% |
| Edmonson County | -$467,330 | -$912,908 | -7% | -5% |
| Elizabethtown Independent | $518,932 | -$133,677 | -1% | 0% |
| Elliott County | -$1,730 | -$291,927 | -4% | 0% |
| Eminence Independent | $280,670 | $9,393 | 0% | -3% |
| Erlanger-Elsmere Independent | $552,259 | $42,773 | 0% | -2% |
| Estill County | $615,438 | -$17,862 | 0% | 0% |
| Fairview Independent | $190,739 | $32,070 | 1% | 3% |
| Fayette County | $2,053,837 | -$3,742,593 | -1% | -1% |
| Fleming County | $57,553 | -$545,206 | -3% | -3% |
| Floyd County | $1,235,462 | -$277,674 | -1% | 1% |
| Fort Thomas Independent | $361,449 | -$208,570 | -1% | 0% |
| Frankfort Independent | $370,576 | $150,183 | 2% | 2% |
| Franklin County | $1,373,952 | $120,988 | 0% | -1% |
| Fulton County | -$81,058 | -$249,338 | -6% | -4% |
| Fulton Independent | -$131,075 | -$214,891 | -10% | -2% |
| Gallatin County | -$7,464 | -$326,284 | -3% | 0% |
| Garrard County | $285,009 | -$322,769 | -2% | -2% |
| Glasgow Independent | $499,647 | -$139,166 | -1% | -1% |
| Grant County | -$299,178 | -$1,126,399 | -5% | -1% |
| Graves County | $5,504 | -$861,535 | -3% | -3% |
| Grayson County | $383,191 | -$648,620 | -2% | -2% |
| Green County | $394,223 | -$114,885 | -1% | -2% |
| Greenup County | $93,116 | -$564,205 | -3% | -1% |
| Hancock County | -$219,155 | -$540,226 | -5% | -3% |
| Hardin County | -$219,081 | -$3,456,800 | -3% | -4% |
| Harlan County | $261,902 | -$843,758 | -3% | 1% |
| Harlan Independent | -$7,317 | -$285,472 | -5% | 1% |
| Harrison County | $627,037 | -$152,025 | -1% | -2% |
| Hart County | -$317,567 | -$959,136 | -5% | -4% |
| Hazard Independent | $292,377 | -$5,434 | 0% | 2% |
| Henderson County | $1,010,420 | -$546,729 | -1% | 0% |
| Henry County | -$502,337 | -$964,389 | -7% | -5% |
| Hickman County | $177,323 | -$10,913 | 0% | -1% |
| Hopkins County | $1,212,468 | -$300,007 | -1% | 2% |
| Jackson County | $512,573 | -$163,226 | -1% | -1% |
| Jackson Independent | $87,266 | -$26,392 | -1% | -1% |
| Jefferson County | -$6,717,686 | -$18,680,756 | -3% | -3% |
| Jenkins Independent | $8,724 | -$157,192 | -4% | 1% |
| Jessamine County | $800,482 | -$802,191 | -1% | -1% |
| Johnson County | $1,099,136 | $53,125 | 0% | 1% |
| Kenton County | -$2,185,814 | -$4,372,548 | -4% | -4% |
| Knott County | -$47,791 | -$705,708 | -5% | -2% |
| Knox County | $61,244 | -$1,094,041 | -4% | 0% |
| LaRue County | $833,379 | $165,481 | 1% | 0% |
| Laurel County | $961,711 | -$1,225,752 | -2% | -1% |
| Lawrence County | $517,671 | -$161,027 | -1% | 0% |
| Lee County | $12,298 | -$238,789 | -4% | 0% |
| Leslie County | $26,389 | -$482,575 | -4% | 2% |
| Letcher County | -$165,689 | -$943,334 | -5% | -4% |
| Lewis County | $114,327 | -$498,322 | -3% | 0% |
| Lincoln County | -$66,567 | -$906,305 | -4% | -1% |
| Livingston County | -$167,902 | -$294,847 | -4% | -3% |
| Logan County | $203,540 | -$650,870 | -2% | -2% |
| Ludlow Independent | $92,999 | -$118,535 | -2% | 0% |
| Lyon County | -$10,308 | -$111,475 | -2% | -1% |
| Madison County | -$3,127,746 | -$5,593,261 | -7% | -6% |
| Magoffin County | $136,078 | -$497,717 | -3% | -1% |
| Marion County | -$63,409 | -$690,947 | -3% | -2% |
| Marshall County | $305,229 | -$478,042 | -2% | -1% |
| Martin County | $460,656 | -$49,320 | 0% | 2% |
| Mason County | $1,191,545 | $564,394 | 3% | 1% |
| Mayfield Independent | $1,237,508 | $615,865 | 4% | -2% |
| McCracken County | -$346,798 | -$1,570,498 | -3% | -3% |
| McCreary County | $460,360 | -$439,710 | -2% | 0% |
| McLean County | $83,623 | -$251,390 | -3% | 0% |
| Meade County | $427,503 | -$815,785 | -2% | -2% |
| Menifee County | $312,159 | -$4,453 | 0% | 0% |
| Mercer County | $309,801 | -$326,896 | -2% | -1% |
| Metcalfe County | $98,748 | -$279,787 | -3% | 0% |
| Middlesboro Independent | $116,232 | -$204,565 | -2% | 1% |
| Monroe County | $206,373 | -$301,881 | -2% | -2% |
| Montgomery County | $1,676,370 | $521,662 | 2% | 1% |
| Morgan County | $280,992 | -$300,621 | -2% | 1% |
| Muhlenberg County | $554,554 | -$556,659 | -2% | 0% |
| Murray Independent | $571,590 | $83,447 | 1% | -1% |
| Nelson County | -$14,672 | -$543,792 | -2% | -2% |
| Newport Independent | -$229,860 | -$416,971 | -4% | -2% |
| Nicholas County | -$29,424 | -$334,436 | -4% | -3% |
| Ohio County | -$281,347 | -$1,326,690 | -5% | -1% |
| Oldham County | $1,883,479 | -$327,623 | 0% | 0% |
| Owen County | $123,207 | -$293,714 | -2% | 0% |
| Owensboro Independent | $549,989 | -$792,285 | -2% | 0% |
| Owsley County | $99,536 | -$121,175 | -2% | 1% |
| Paducah Independent | $776,752 | $79,351 | 0% | 0% |
| Paintsville Independent | $143,955 | -$39,383 | -1% | -1% |
| Paris Independent | $501,985 | $288,489 | 4% | -2% |
| Pendleton County | -$127,090 | -$707,877 | -4% | -2% |
| Perry County | $615,766 | -$455,095 | -2% | 0% |
| Pike County | $588,052 | -$1,487,993 | -3% | 1% |
| Pikeville Independent | $238,848 | $10,279 | 0% | 0% |
| Pineville Independent | $87,010 | -$89,927 | -2% | 2% |
| Powell County | $112,726 | -$440,985 | -3% | 0% |
| Pulaski County | -$2,244,027 | -$3,832,492 | -7% | -3% |
| Raceland Independent | $599,383 | $283,357 | 4% | 3% |
| Robertson County | -$119,256 | -$266,400 | -8% | -3% |
| Rockcastle County | $685,413 | -$194,038 | -1% | -1% |
| Rowan County | $420,542 | -$396,146 | -2% | -1% |
| Russell County | $640,895 | -$176,048 | -1% | -1% |
| Russell Independent | -$525,517 | -$1,065,782 | -8% | 1% |
| Russellville Independent | $130,670 | -$151,789 | -2% | -2% |
| Science Hill Independent | -$1,713 | -$145,766 | -4% | 4% |
| Scott County | $166,722 | -$1,725,043 | -2% | -3% |
| Shelby County | -$347,027 | -$1,501,423 | -3% | -3% |
| Simpson County | -$1,232,436 | -$1,825,796 | -8% | -8% |
| Somerset Independent | $592,214 | $194,912 | 2% | 0% |
| Southgate Independent | $4,855 | -$27,110 | -2% | 0% |
| Spencer County | $476,673 | -$255,127 | -1% | -2% |
| Taylor County | $252,054 | -$438,470 | -2% | -1% |
| Todd County | $19,429 | -$448,460 | -3% | -3% |
| Trigg County | $158,513 | -$236,484 | -2% | -1% |
| Trimble County | $148,289 | -$107,038 | -1% | 0% |
| Union County | $719,199 | $198,020 | 1% | 1% |
| Walton Verona Independent | -$36,054 | -$442,428 | -3% | -3% |
| Warren County | $2,771,247 | -$1,064,851 | -1% | -3% |
| Washington County | -$575,577 | -$1,011,260 | -8% | -6% |
| Wayne County | $622,661 | -$276,308 | -1% | -2% |
| Webster County | $765,352 | $184,814 | 1% | 1% |
| Whitley County | $1,345,869 | -$72,546 | 0% | 0% |
| Williamsburg Independent | -$36,844 | -$256,124 | -5% | -3% |
| Williamstown Independent | -$4,362 | -$201,583 | -4% | -5% |
| Wolfe County | $210,345 | -$195,860 | -2% | -1% |
| Woodford County | -$1,054,217 | -$1,595,928 | -5% | -6% |
Source: KyPolicy analysis of Kentucky Department of Education data. Payments include base SEEK plus add-ons, transportation, and the enhanced Tier 1 match of 17.5%. Estimates use projections for SEEK parameters developed by the Kentucky Department of Education for 2027 and 2028. Local effort includes the required 30 cent plus local Tier 1 match. Inflation estimates are from the Consensus Forecasting Group official estimate. Table omits Cloverport Independent due to anomalies from its virtual school.
