Kentucky Department of Education Budget Reduction Plan Overview
Explore the details of the Kentucky Department of Education's preliminary draft budget reduction plan for fiscal year 2020-2021. The plan addresses revenue shortfalls, exemption requests, and budget reductions in key education programs to navigate financial challenges. Learn about the impact on various education sectors and the proposed adjustments to the General Fund allocation.
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Kentucky Department of Education Preliminary Draft Budget Reduction Plan Kentucky General Assembly Budget Review Subcommittee on Education October 21, 2020 1
Revenue Forecast The Office of State Budget Director (OSBD) published an updated look at revenues for fiscal year 2020-21. Given the uncertainty of economic forecasts with the continued impacts of COVID-19, the report shows a General Fund revenue shortfall for fiscal year 2020-21 ranging from $242 to $504 million. The Road Fund revenue shortfall ranges from $49 to $206 million. Districts may also face shortfalls in local revenue. 2
Budget Reduction Request On September 3, 2020, OSBD requested from each Cabinet and independent agency a preliminary draft budget reduction plan in the amount of eight percent (8%) of General Funds. OSBD requested KDE provide a projected budget reduction plan of $43,626,300. OSBD requested that exemptions be applied for the following programs or line items: Support Education Excellence in Education (SEEK) Fund; Debt service for Kentucky Department of Education (KDE) capital projects at the Kentucky School for the Deaf (KSD) and Kentucky School for the Blind (KSB); and District Health Insurance paid by KDE on behalf of districts. 3
Budget Reduction Request Fiscal Year 2020-2021 Appropriation Unit HB 352 Appropriation OSBD Exemptions After 8% Exemptions Reduction SEEK $2,973,696,700 $2,973,696,700 $0 $0 B OSS $55,615,100 $959,500 $54,655,600 $4,372,400 LARS $1,076,768,700 $749,844,400 $326,924,300 $39,253,900 TOTAL General Fund $4,106,080,500 $3,724,500,600 $381,579,900 $43,626,300 4
KDE Budget Reduction Exemptions KDE s preliminary draft budget reduction plan additionally exempts: Preschool - $84,481,100 Secondary Vocational Education - $22,881,900 Kentucky School for the Blind (KSB) - $6,853,100 Kentucky School for the Deaf (KSD) - $10,080,600 School Food Services Federal Match and Maintenance of Effort - $3,827,000 5
Preliminary Draft Budget Reduction Plan Fiscal Year 2020-2021 Appropriation Unit HB 352 Appropriation OSBD Exemptions KDE After Proposed Reduction Exemptions Exemptions SEEK $2,973,696,700 $2,973,696,700 $0 $0 $0 BOSS $55,615,100 $959,500 $3,827,000 $50,828,600 $3,398,800 LARS $1,076,768,700 $749,844,400 $119,146,100 $207,778,200 $25,092,000 TOTAL General Fund $4,106,080,500 $3,724,500,600 $122,973,100 $262,403,800 $28,490,800 6
Impact to Services Kentucky Education Technology System (KETS) Provides offers of assistance to local school districts based on ADA in four basic categories of unmet need: Operations Maintenance Replacement of devices New technologies This would reduce offers of assistance from $21 per ADA to $17 per ADA. 7
Impact to Services Family Resource Youth Service Centers (FRYSC) Enhance students abilities to succeed in school to promote early learning, successful transition into school, academic achievement and transition into adult life. FRYSCs provide services to students and their families including: after school childcare, family literacy services, health services, family crisis and mental health counseling, substance abuse assistance and career exploration counseling. This would result in a reduction of funds appropriated to KDE and transferred to the Cabinet for Health and Family Services (CHFS). Because 50% of FRYSC program funds are transferred at the beginning of fiscal year, any reduction will be taken from the remaining appropriation. 8
Impact to Services Grants to local school districts that directly support personnel: Gifted and Talented Read to Achieve Math Achievement Community Education Districts have already entered into employment contracts with staff. 9
Questions or Comments Robin Fields Kinney, Associate Commissioner, Office of Finance and Operations Robin.Kinney@education.ky.gov Karen Wirth Director, Division of Budgets and Financial Management Karen.Wirth@education.ky.gov 10
