Committee adopts substitute to count fringe benefits in SEEK calculations

The Senate Standing Committee on Education adopted a committee substitute and advanced Senate Bill 6, which clarifies how the state counts certain fringe benefit expenditures when calculating state funding under the SEEK program (Support Education Excellence in Kentucky).

Sponsor State Senator Givens told the committee the bill aims to clarify what the Commonwealth considers education-related costs — specifically, that state-funded fringe benefits paid on behalf of districts (including pension and insurance contributions funded by the state) should be counted in the SEEK calculation. “This language basically says, we’re going to count the entirety of what the taxpayers fund as education-related expenses in Kentucky,” Givens said.

Why it matters: testimony and committee discussion focused on whether pension and health-care contributions should be considered part of per-pupil education costs. Senator Higdon noted actuarial employer contributions to teachers’ retirement are growing and projected to exceed $2,000,000,000 per year in the near term; committee proponents said recognizing those state-funded fringe costs in SEEK clarifies funding reporting rather than changing who pays the cost.

Opponents and cautious members urged further study. Senator Thomas and others said the change affects a formula that has guided Kentucky funding for decades and argued any comprehensive rewrite should be vetted through an interim study; one senator described the change as more than a minor tweak and asked for broader deliberation over the SEEK formula’s scope.

Committee action: The committee adopted the PSS (committee substitute) to SB 6 and approved the bill as amended. Several members explained their votes on the record: some voted aye while one member recorded a no vote in committee; overall the bill advanced with a favorable committee report.

Clarifying details noted at the hearing included that the bill defines fringe benefit costs as expenditures from state sources made by the state on behalf of school districts; witnesses and committee members emphasized the difference between counting an item for reporting and actually redirecting funds to districts.

Next step: SB 6 will proceed to the Senate floor for further debate. Committee members asked for continued follow-up and discussion about whether the SEEK formula should be revisited more comprehensively in an interim study.

Sources: Testimony and presentation by State Senator Givens; committee discussion and roll call recorded in the committee transcript.