STATE OF EDUCATION FUNDING

Kentucky

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.

State Ratings Rubric:

Meets Criteria
Partially Meets Criteria
Doesn't Meet Criteria

Hover over ratings for more information.

Last updated: May 2026

ComponentDescriptionRatingExplanation
FUND STUDENTS ADEQUATELY
Funding AdequacyPer-student funding is at or above the national average ($17,853 for the 2022-23 school year).
Per-student funding was $795 less than the national average in the 2022-23 school year.
Yearly IncreasesBase funding for all students increases every year to account for inflation.
The per-student base amount increased by 0.9% for the 2026-27 school year, from $4,586 to $4,626.
Progressive Tax PoliciesThe state maintains healthy revenue sources for schools.
Implemented 2025 legislation to reduce income taxes from 4% to 3.5%.
FUND STUDENT NEEDS EQUITABLY
Student-Based FormulaThe funding formula is primarily student-based.
Primarily student-based formula.
Students from Low-Income BackgroundsThe state provides additional funds for students from low-income backgrounds.
15% weight.
English LearnersThe state provides additional funds for English Learners.
9.6% weight.
Students with DisabilitiesThe state provides additional funds for students with disabilities, based on their needs.
Three different weights based on the type of disability, ranging from 24% to 235%.
FUND DISTRICTS APPROPRIATELY
Cost SharingThe state requires local governments to share the cost based on their ability to pay.
When local governments contribute more than the required amount, the state provides a greater share to districts with less property wealth.
Local Revenue CapThe state limits wealthy districts from contributing excessively more than other districts.
The state sets a cap that voters can override.
Rural DistrictsSmall districts and districts with few students per square mile (“sparse districts”) receive additional funds.
Additional funding for sparse districts for transportation.
Concentrated PovertyDistricts with high concentrations of poverty receive additional funds.
No additional funding.
FUND STUDENTS TRANSPARENTLY & EFFECTIVELY
Formula TransparencyThe funding formula is easy to understand and clearly explained.
The formula is easy to understand, and the state education department's executive summary clearly explains it.
Funding DataThe state shares detailed, timely, and user-friendly public data on districts’ funding.
Data is detailed and timely, but not accessible.
District Spending PlansThe state requires districts to share public reports about how they invest funds to meet students' needs.
No requirement.
Formula ReviewThe state requires a clear, stakeholder-led process to evaluate the formula and recommend improvements.
No required review process.
FUND PUBLIC SCHOOLS EXCLUSIVELY
VouchersThe state does not divert public funds to private schools through voucher programs, education savings accounts, or scholarship tax credits.
The state constitution prohibits voucher programs.
Sources: Education Law Center, EdFund, EdBuild, Bellwether, Education Commission of the States, Institute on Taxation and Economic Policy, Kentucky Department of Education
Kentucky

News & Commentary

Kentucky

In New Poll, Kentuckians Say Income Tax Cuts Aren’t Helping

Kentucky’s legislative leaders have made reducing the state’s individual income tax rate their top priority in recent years. Lawmakers have repeatedly acted on that, reducing the rate several times and costing the state billions annually that could have been invested in kids and families.
Read More
Kentucky

Protect Our Schools KY advocating on state and federal level

(LEX 18) — Protect Our Schools Kentucky, the group behind the defeat of the school choice amendment in November, relaunched its efforts at the Capitol on Wednesday. The statewide coalition for public education says this time, its fight is both on the state and federal levels.
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At A Glance

Kentucky

Student Enrollment by Race/Ethnicity, 2023-24

Per-Pupil Expenditures, Fiscal Year 2021-22

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.

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.