STATE OF EDUCATION FUNDING
Kentucky
Fair school funding systems ensure that districts, schools, and ultimately students receive significant additional funding according to their specific needs. Providing high-quality learning opportunities for students living in poverty, English learners, students with disabilities, and rural students requires additional resources.
According to The Education Trust’s State of Funding Equity, in Kentucky:
- The highest poverty districts receive $729 or 6.4% more state and local revenue than the lowest poverty districts.
- The districts serving the most students of color receive $732 or 6.1% more state and local revenue per student than the districts serving the fewest students of color.
- The districts serving the most English learners receive $723 or 6% more state and local revenue per student than the districts serving the fewest English learners.
For more information about how these data compare with other states or district specific information, see The Education Trust’s State of Funding Equity report.
Learn more about
how Kentucky
funds students
According to EdBuild, “Kentucky has a primarily student-based formula. It assigns a cost to the education of a student with no special needs or services, called a base amount, and provides increased funding to educate specific categories of students. The categories of students considered in Kentucky’s funding policy are English-language learners, low-income students, students with disabilities, students identified as gifted, and students enrolled in career and technical education (CTE) programs.”
The Education Law Center’s 2023 Making the Grade Report rated Kentucky’s school funding:
- D on per-pupil funding relative to the national average.
- D on the percentage difference in per-pupil funding in high-poverty districts relative to low-poverty districts.
- C on the PK-12 funding as a percentage of state GDP.
How fair is
Kentucky’s Funding?
Strong schools build strong communities, and that starts with fair and transparent funding. Our State Ratings Rubric shows how Kentucky is doing when it comes to making sure every student gets the resources they need to thrive. Using criteria grounded in research, best practices, and what we know works for students, we rate Kentucky across five key areas: whether the state funds students adequately, funds student needs equitably, funds districts appropriately, funds students transparently and effectively, and keeps public dollars in public schools.
To explore ratings across Southern states and learn more about the criteria we use, click here.
| Component | Description | Rating | Explanation |
|---|---|---|---|
| FUND STUDENTS ADEQUATELY | |||
| Funding Adequacy | Per student funding is at or above the national average ($16,645). | Yellow | Per student funding was $1,702 less than the national average in the 2021-22 school year. |
| Yearly Increases | Base funding for all students increases every year to account for inflation. | Green | The per-student base amount increased by 6% for the 2025-26 school year, from $4,326 to $4,586. |
| Progressive Tax Policies | The state maintains healthy revenue sources for schools. | Red | Legislation passed in 2025 to reduce income taxes starting in 2027. |
| FUND STUDENT NEEDS EQUITABLY | |||
| Student-Based Formula | The funding formula is primarily student-based. | Green | Primarily student-based formula. |
| Students from Low-Income Backgrounds | The state provides additional funds for students from low-income backgrounds. | Yellow | 15% weight. |
| English Learners | The state provides additional funds for English Learners. | Red | 9.6% weight. |
| Students with Disabilities | The state provides additional funds for students with disabilities, based on their needs. | Green | Three different weights based on the type of disability, ranging from 24% to 235%. |
| FUND DISTRICTS APPROPRIATELY | |||
| Cost Sharing | The state requires local governments to share the cost based on their ability to pay. | Yellow | When local governments contribute more than the required amount, the state provides a greater share to districts with less property wealth. |
| Local Revenue Cap | The state limits wealthy districts from contributing excessively more than other districts. | Yellow | The state sets a cap that voters can override. |
| Rural Districts | Small districts and districts with few students per square mile ("sparse districts") receive additional funds. | Yellow | Additional funding for sparse districts for transportation. |
| Concentrated Poverty | Districts with high concentrations of poverty receive additional funds. | Red | No additional funding |
| FUND STUDENTS TRANSPARENTLY & EFFECTIVELY | |||
| Formula Transparency | The funding formula is easy to understand and clearly explained. | Green | The formula is easy to understand, and the state education department's executive summary clearly explains it. |
| Funding Data | The state shares detailed, timely, and user-friendly public data on districts’ funding. | Yellow | Data is detailed and timely, but not accessible. |
| District Spending Plans | The state requires districts to share public reports about how they invest funds to meet students' needs. | Red | No requirement. |
| Formula Review | The state requires a clear, stakeholder-led process to evaluate the formula and recommend improvements. | Red | No required review process. |
| FUND PUBLIC SCHOOLS EXCLUSIVELY | |||
| Vouchers | The state does not divert public funds to private schools through voucher programs, education savings accounts, or scholarship tax credits. | Green | The state constitution prohibits voucher programs. |
Who’s Who
in Kentucky
Legislature
The Kentucky General Assembly is Kentucky’s state legislature. The bicameral body has a House of Representatives with 100 members and a State Senate with 38 members. Both the House and the Senate have standing Education Policy committees that hear all related education legislation. The Appropriations and Revenue committees in each house also have standing education subcommittees. In 2024, the legislature will convene January 2, 2024 and meet for 60 legislative days to adjourn April 15, 2024.
State Superintendent of Education
The Kentucky Commissioner of Education is appointed by the 15-member Kentucky Board of Education. The Commissioner reports to the Board of Education and leads the Kentucky Department of Education which oversees the state’s PK-12 schools.
State Board of Education
The Kentucky Board of Education has 15 members. The governor appoints 11 voting members, seven representing the Supreme Court districts and four representing the state at large. The additional members, the President of the Council on Postsecondary Education (CPE), the Secretary of the Education and Workforce Development Cabinet, a high school student, and active elementary or secondary school teacher, serve as non-voting members.
