KSBA eNews Service, Frankfort, Jan. 27, 2016
A closer look inside Gov. Bevin's spending plan: nine percent across-the-board reduction will touch many but not all K-12 programs
Staff report
The big news for Kentucky public schools from Tuesday’s release of Gov. Matt Bevin’s first state budget proposal was covered by the mainstream media: $1.1 billion in new funding to shore up the KTRS and KRS pensions for teachers and other state workers, and a slight increase in SEEK funding that reflects more students enrolled, thus maintaining the current per-pupil state support level.
The governor’s plans to finance those and other spending increases is based in part on an across-the-board reduction for most other state government programs, including those allocated through the budget of the Kentucky Department of Education. Bevin is ordering all state agencies to reduce spending for the remainder of this fiscal year by 4.5 percent, while his budget plan calls for a further reduction in agency spending by nine percent in each of the next two fiscal year.
An eNews review of the proposed budget – posted online here (starting on Page 56) – found details on where Education Commissioner Stephen Pruitt and his staff must make cuts if the General Assembly adopts the governor’s fiscal plan.
The budget plan calls for:
· Per-pupil SEEK would remain at $3,981 for the next two fiscal years. The governor’s budget office and KDE reached a “consensus” on projected enrollment, so the SEEK pool would go from $3.009 billion currently to almost $3.035 billion in FY 2017 and $3.024 billion the following year.
· Funding to “equalize” FSPK support for local nickel facilities tax revenues would rise by $12 million in FY 2017 and $8 million in FY 2018 compared with the current budget. Tier I equalization would increase from $168.1 million currently to $174.5 million the first year of the biennium and drop back to $170.1 million the following year.
· State funding for the self-insured health benefit pool for school employees and retirees would increase by $8.6 million in FY 2017 and another $1.4 million the second year of the budget.
· Student transportation would not get the increase that was a major priority for the Kentucky Board of Education and most local school leaders. Funding would be remain at just under $214.8 million in each year of the budget, which has been estimated at roughly 60 percent of the cost.
KDE budget line items that would get reduced funding under the governor’s budget include:
o $4 million less each year of the biennium for preschool services.
o $2 million less each year for family resource and youth services centers.
o $2 million less each year for a budget group of programs that include safe schools, teacher academies, Every 1 Reads, Advance Kentucky, and professional development.
o $1 million less for career and technical education – another area where the state board of education has sought a major funding increase.
o $1 million less for after-school programs.
o About $800,000 less for Reach to Achieve, $750,000 less each year for textbooks, $500,000 less for specialized teacher training, and $300,000 less for gifted and talented programs.
The governor’s budget plan goes first to the House of Representatives for its consideration, and then the usually modified plan is sent to the Senate for its work. Frequently, a conference committee of the legislature works out a final agreement among representatives, senators and the governor. A state budget must be adopted before the 2016 General Assembly adjourns in mid-April.