Bill would create the illusion of new school funding. Kentucky needs the real thing.
Kentucky kids need the legislature to reinvest in public education, writes Jason Bailey, while Senate Bill 6 is an accounting change that does not help deliver that. (Getty Images)
Senate Bill 6 in the 2025 Kentucky General Assembly makes the most significant change in the history of the core school funding formula created by the Kentucky Education Reform Act (KERA), known as Support Education Excellence in Kentucky (SEEK). But the change does not increase spending or inject any more money into classrooms. Instead, it simply changes how some existing expenditures are categorized, clouding the picture of how much the state is putting into public education.
Under SB 6, all state payments already being made outside of SEEK for fringe benefits like health insurance and retirement benefits will be counted as part of SEEK. Of particular concern, SB 6 inappropriately adds to SEEK all the enormous catch-up pension payments for old debts incurred due to past failures of the General Assembly to fully fund teacher pensions. These catch-up payments are not a contribution to the current operation of schools, as is the purpose of SEEK.
SB 6 will artificially and dramatically inflate SEEK spending — if it had been in effect in the current budget, SEEK funding would've been 59% higher — without any additional dollars going to schools. Some may use this change to continue claiming 'record funding' for education without providing more resources to the kids attending public schools, which have received eroding state investment since 2008.
The SEEK formula was one of the major outcomes of the 1989 state Supreme Court ruling, known as Rose v. Council for Better Education, Inc., that declared the state's school system unconstitutional. SEEK plays a primary role in meeting the state's constitutional obligation for an adequately and equitably funded school system.
SEEK guarantees a minimum amount of funding per student and establishes a formula that divides responsibility between school districts and the state, with the state providing more funds to districts with lower property wealth and thus less capacity to generate local tax revenue. The SEEK formula includes additional amounts based on the number of students in each district that cost more to educate, such as at-risk pupils, special education students and English language learners. SEEK also includes funding for student transportation.
Schools receive other funding from the state outside of SEEK, including for purposes ranging from preschool to career and technical education, and from the federal government, including Title 1 funds for low-income schools and grants for school meals. But SEEK represents the single largest source of funds to help Kentucky schools carry out their basic missions in an equitable manner.
SB 6 requires that the SEEK budget unit include the full state contribution for fringe benefits like medical, vision and dental insurance for current employees as well as retiree pension and health benefits. These contributions are sometimes called 'on behalf' payments. SB 6 also requires that any reports produced by the Kentucky Department of Education on SEEK payments by school district include these fringe benefit payments.
A significant portion of retiree pension, medical and life insurance benefits are already included in SEEK and are based on contribution formulas prescribed in law. Those retirement contributions now in SEEK amount to $458 million this year and $468 million in 2026. The remainder of Teachers' Retirement System (TRS) contributions are included in the budget category General Government in the TRS budget unit, an appropriation totaling $847 million in 2025 and $1.037 billion in 2026.
Additionally, health and life insurance for current employees is currently funded by the state through the Department of Education, but not as part of SEEK. That makes it like funding for preschool, career and technical education, technology, extended school services and other non-SEEK education expenditures. The state contribution for health and life insurance totals $944 million in 2025 and $1.078 billion in 2026.
If the state had counted all these state fringe benefit payments in SEEK in the current biennium, it would've increased SEEK spending by 59%, or $1.8 billion more in 2025 and $2.1 billion more in 2026. But including them in SEEK will not increase the amount of state funding overall, just shift the category in which they are represented.
The problem with including all current pension contributions as part of 'education funding,' much less as part of SEEK, is that a huge portion of those contributions now go to catch-up payments for past underfunding of pension benefits. During the years 2009 to 2016, the General Assembly did not make the full actuarially determined contributions to pension benefits (and those contributions were not made for retiree medical benefits until a 'shared responsibility plan' passed in 2010 that increased teacher, school district and state contributions to that fund). The compounding effect of not putting in those funds for pensions caused the debt to balloon. Whereas the state TRS pension plan previously had been nearly fully funded, it fell to a low of 55% funded by 2016, and unfunded liabilities grew to $14 billion.
In 2017 the legislature resumed paying the full actuarially determined pension costs. The plan has slowly improved its health since then but will not be fully funded until 2047. Unfunded liability contributions, or catch-up payments, make up approximately 82% of what the state is now contributing to the Teachers Retirement System pension plan, as shown in the graph below. Normal costs — or the contributions needed annually to pay for each current teacher's future pension benefits — are barely more than what nearly every other employer contributes for Social Security, which Kentucky teachers do not receive and the state therefore does not have to pay.
Resuming the payment of full costs in 2017 met a legal obligation of the state and was the right and responsible thing to do. But those extra dollars in catch-up payments should not be counted as 'education spending' because they do not go to current school districts, teachers, classrooms and kids. According to the actuary's estimates, TRS has $25.7 million in assets and will receive $5.6 billion in contributions that active teachers and their employers will contribute for their service in the future. That exceeds the $21.8 billion the state will owe for active teachers' pension benefits. But the state also owes another $26.8 billion to retired and disabled members and beneficiaries of deceased members. In other words, TRS has the resources to fund the pension benefits of active teachers but additional contributions are being made as catch-up payments for a large portion of the benefits for teachers who are no longer in the classroom.
The purpose of the SEEK formula, when adequately funded, is to help ensure that the 'efficient system of common schools' promised in the constitution is possible. It is not to pay back contractual obligations that the General Assembly did not meet at the time they were incurred.
Meanwhile, actual state funding for schools has been eroding since the Great Recession hit in 2008:
Total SEEK funding (as defined prior to SB 6) is 26% less now than in 2008 in inflation-adjusted dollars, and average teacher pay across districts is 20% less.
The funding gap between wealthy and poor school districts exceeds the levels declared unconstitutional in the 1980s.
The General Assembly has provided $0 for textbooks and professional developmentevery year since 2018, and has not increased funding for preschool or extended school services since 2019.
The legislature has not fully funded school transportation as required by law since 2004.
Budget cuts have caused fewer school days, higher student fees, cancelled art and music programs, fewer student supports, less health services and other reductions.
The state faces a growing shortage of school personnel, and fewer potential teachers are entering the teacher education pipeline.
Kentucky students need the General Assembly to meaningfully reinvest in the state's public schools while also meeting its other important obligations, including paying past debts for teacher pensions not funded in the first place. SB 6 is an accounting change that does not help deliver what kids need today.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
4 hours ago
- New York Post
Mayor Eric Adams flip-flops on controversial Medicare push days after legal win
Mayor Eric Adams on Friday said he was abandoning his years-long effort to move retired city workers onto higher-cost healthcare plans — despite scoring a major legal win in the controversial case earlier this week. The mayor, who is running as an independent in the November general election, had been the only major candidate in the race backing Medicare Advantage, a private plan that uses Medicare subsidies rather than the traditional program offered to retired city workers. But Adams flip-flopped on Friday, announcing in a statement that his sudden change of heart stemmed from town halls and public events with retirees who said they were worried about the change. Mayor Eric Adams said he is now flip-flopping his initial stance and will abandon his year-long effort to move retired city workers to higher-cost healthcare plans. Getty Images 'We have informed union leadership that we are pursuing other avenues for improving health care for city workers that will provide even better outcomes, and we look forward to continuing to work with our partners on the best path forward,' he said. The mayor's office did not clarify what other options they were considering at this time. Every morning, the NY POSTcast offers a deep dive into the headlines with the Post's signature mix of politics, business, pop culture, true crime and everything in between. Subscribe here! It came just two days after New York's Court of Appeals on Wednesday ruled in favor of the Adams administration, finding the city could legally shift retirees to Medicare Advantage plans after years of fighting by advocacy groups. Republican mayoral candidate Curtis Sliwa jumped on the mayor's about-face, slamming it as a nakedly political move. 'Now, just days after the Court of Appeals ruled in his favor, and just as his reelection prospects dim, Eric Adams suddenly finds the backbone to stop his assault on our retirees,' Sliwa said in a statement. Republican mayoral candidate Curtis Sliwa criticized Adams for changing his stance on the healthcare proposal. He claimed that Adams would break his promise and go back to supporting the health-care plan if he was re-elected. An Adams campaign representative did not respond to a request for comment. Medicare Advantage was originally introduced in 2021 by then-Mayor Bill de Blasio, who argued that the program would save the city over $600 million a year.
San Francisco Chronicle
5 hours ago
- San Francisco Chronicle
North Carolina Gov. Stein vetoes his first bills. They are on concealed carry and immigration
RALEIGH, N.C. (AP) — North Carolina Democratic Gov. Josh Stein vetoed his first bills on Friday, blocking for now Republican legislation that would let adults carry concealed handguns without a permit and make state agencies and local sheriffs more active in Trump administration's immigration crackdown. Stein, who took office in January, issued his formal objections to three measures backed by the GOP-controlled General Assembly presented to him last week. The former attorney general also had the option to sign any of them into law, or let them become law if he hadn't acted on the legislation soon. The vetoed measures now return to the legislature, where Republicans are one House seat shy of holding a veto-proof majority. Its leaders will decide whether to attempt overrides as early as next week. Voting so far followed party lines for one of the immigration measures, which in part would direct heads of several state law enforcement agencies, like the State Highway Patrol and State Bureau of Investigation, to cooperate with Immigration and Customs Enforcement. But one House Democrat ended up voting for the other immigration bill that Stein vetoed. It toughens a 2024 law that required sheriffs to help federal agents seeking criminal defendants. GOP prospects for enacting the permitless concealed gun measure, a longtime aspiration for gun-rights advocates, appear dimmer, because two House Republicans voted against the bill and 10 others were absent. Gun bill would let 18-year-olds carry concealed handgun In one veto message, Stein said the gun legislation, which would allow eligible people at least 18 years old to carry a concealed handgun, "makes North Carolinians less safe and undermines responsible gun ownership." Democratic lawmakers argued the same during legislative debate. Current law requires a concealed weapons holder to be at least 21 to obtain a permit. The person must submit an application to the local sheriff, pass a firearms safety training course and cannot 'suffer from a physical or mental infirmity that prevents the safe handling of a handgun" to obtain the permit. No safety training would be required if getting a permit is no longer necessary. 'Authorizing teenagers to carry a concealed weapon with no training whatsoever is dangerous,' Stein wrote. Gun-control groups praised the veto. Conservative advocates for the bill say removing the permit requirement would strengthen the safety of law-abiding citizens. 'Law-abiding North Carolinians shouldn't have to jump through hoops to effectively exercise their Second Amendment rights," Senate leader Phil Berger said in a press release criticizing the veto and planning for an override vote in his chamber. Permitless carry is already lawful in 29 states, according to the National Conference of State Legislatures. North Carolina would also be one of the last states in the Southeast to implement that legislation. Immigration bills focus on state agencies, sheriffs One vetoed immigration bill would require four state law enforcement agencies to officially participate in the 287(g) program, which trains officers to interrogate defendants and determine their immigration status. An executive order by President Donald Trump urged his administration to maximize the use of 287(g) agreements. Stein wrote Friday the bill takes officers away from existing state duties at a time when law enforcement is already stretched thin. The measure also would direct state agencies to ensure noncitizens don't access certain state-funded benefits. But Stein said that people without lawful immigration status already can't receive them. The other vetoed bill attempts to expand a 2024 law — enacted over then-Democratic Gov. Roy Cooper's veto — that directed jails to hold temporarily certain defendants whom ICE believe are in the country illegally, allowing time for immigration agents to pick them up. The vetoed bill would expand the list of crimes that a defendant is charged with that would require the jail administrator to attempt to determine the defendant's legal status. A jail also would have to tell ICE promptly that it is holding someone and essentially extends the time agents have to pick up the person. Stein said Friday while he supports sheriffs contacting federal immigration agents about defendants charged with dangerous crimes that they are holding, the law is unconstitutional because it directs sheriffs to keep defendants behind bars 48 hours beyond when they otherwise could be released for a suspected immigration violation. With the veto of this bill, House Speaker Destin Hall said, Stein sided with the 'most radical elements of his party's base over the safety and security of North Carolinians.' Latino advocates and other bill opponents had urged Stein to veto both immigration measures. They say the legislation would cause Hispanic residents to feel intimidated and fear law enforcement.
New York Post
5 hours ago
- New York Post
Andrew Cuomo aide and Eric Adams trade social media blows as NYC mayoral campaign heats up: ‘Which private club was this sent from?'
New York City's general election for mayor is still more than four months away — but the mudslinging has already started. Incumbent Mayor Eric Adams, a Democrat running on an independent line in the November contest, sparred with a longtime Andrew Cuomo aide on social media — after she called out Hizzoner's penchant for clubbing. '12:01am tweeting – which private club was this sent from? Or were you busy smoking cigars with more antisemites at the time of the tweet?' Cuomo lieutenant Melissa DeRosa zinged at Adams Thursday. Advertisement 4 Incumbent Mayor Eric Adams and longtime Andrew Cuomo aide Melissa DeRosa clashed on social media after the Cuomo lieutenant called out Adams for constantly going clubbing. Pacific Press/LightRocket via Getty Images DeRosa — a fierce backer of Cuomo's comeback bid for mayor who worked as his right-hand in the governor's office — had amplified a New York Times story reporting that Adams' Deputy Mayor for Public Safety Kaz Daughtry was working with ICE on immigration raids. 'Thank god this city has Jessica Tisch @NYPDPC at the helm, or one can only imagine what @ericadamsfornyc and his admin would be doing to bend to Trump's will,' she wrote. Advertisement The mayor shot back with his own choice words shortly after midnight. 'Agreed. Jessica Tisch — second woman NYPD commissioner — is leading the department because I appointed her. And she's delivering results. Andrew Cuomo? He's running for office because he got run out of office?' he posted. DeRosa then slammed Adams' love of nightlife, while also bringing up his recent controversial interview with antisemitic podcaster Sneako over cigars at Gracie Mansion. 4 DeRosa took to X to call out Adams, sending a tweet at 12:01 am speculating that he was at a club or smoking cigars. Eric Adams/X Advertisement Adams hit back, posting: 'I was en route to the Crane Club,' a luxury Chelsea steakhouse that also boasts a members-only club within the restaurant. 'Crime is down, nightlife is back, and the $30 billion industry is helping to rebuild the economy @andrewcuomo tanked with his failed policies like bail reform,' the mayor posted from his campaign account. 'Eric Adams: Delivers. Never quits.' 4 Adams fired back and responded that he was on his way to the Crane club while also taking a shot at mayoral hopeful and Democratic nominee for mayor, Andrew Cuomo. Getty Images Advertisement To political observers, the social media spat was sign that November's election is heating up and likely only to get nastier along the way. Political consultant Chris Sosa said that DeRosa's posts were indicative of Cuomo's political style but that there was little the campaign could gain from it. 'This is the Andrew Cuomo way – insult, antagonize and bully, even when there's nothing to be gained. It's not new to anyone who's had to deal with Andrew in Albany,' he said. Every morning, the NY POSTcast offers a deep dive into the headlines with the Post's signature mix of politics, business, pop culture, true crime and everything in between. Subscribe here! 'But favorably citing the NYPD commissioner to score a point against the mayor who appointed her is head scratcher.' Bill Cunningham, a former Communications Director for Mayor Bloomberg and staffer, agreed that Cuomo's camp came off looking worse in the tiff, and predicted that the general election 'could be very vicious.' 'This episode shows Adams as pretty handy in the clinches. Cuomo people should take heed that when they spot an opening they don't fall into it,' he said. 4 Adams is seen as a long shot to win the mayoral election, while running as an independent, with Cuomo still the front runner to win the Democratic nomination for mayor of New York City. Getty Images Advertisement 'No one voting now or on Tuesday gave a rat's hindquarters about where and when Adams was tweeting. All Melissa did was give him a free shot,' Cunningham added, referring to the June 24 Democratic mayoral primary, in which Cuomo is the frontrunner to get the party's nomination. Cuomo rep Rich Azzopardi fired back even harder in response to an inquiry from The Post. 'He's a desperate man who sold out the city to President Trump for his own personal benefit. We wish the MAGA mayor well with whatever administration appointment he gets come January,' Azzopardi snipped about Adams. Advertisement Adams campaign spokesperson Todd Shapiro said that mayor was more focused on delivering results for New Yorkers than 'social media theatrics.' 'Mayor Adams is focused on good government, not political mudslinging,' he said in a statement. 'We're not going to be distracted by the noise. This campaign is about leadership, not likes' The mayor has previously defended his late nights at members-only clubs like Zero Bond, saying, 'I hang out with the boys at night and I get up with the men in the morning.'
