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KASA warns HB 500 would cut transportation funding and leave 17 districts without nickel equalization
Summary
KASA and multiple superintendents told the subcommittee House Bill 500 would reduce transportation SEEK funding from $398 million to $358 million in the next fiscal year, flatline vocational funding, and omit equalization for building‑fund nickels passed since January 2024 for 17 districts—an omission KASA said would cost those districts roughly $2.9 million in FY27.
Representatives of the Kentucky Association of School Administrators (KASA) and multiple district superintendents testified to the House Budget Review Subcommittee about the potential local impacts of House Bill 500 as introduced, focusing on SEEK transportation funding, vocational funding, and the equalization of recently levied building‑fund "nickels."
John Saller, superintendent of Whitley County Schools, presented slides showing transportation SEEK funding at $398,000,000 for fiscal year 2026 and a proposed decrease to $358,000,000 in fiscal year 2027 under the House bill. "As you can see on the first slide, we were funded at 398,000,000 for transportation to SEEK in fiscal year 26. A decrease is what's been proposed in the House bill 500 to 358,000,000 for fiscal year 27," Saller said, noting rising bus purchase and maintenance costs and that Whitley County was funded at roughly 74% of its transportation costs in FY25, leaving a $900,000 shortfall he said was filled from general‑fund instructional resources.
KASA's Rhonda Caldwell said the organization was presenting to show HB 500's baseline effects on learning outcomes, student safety and district financial health. Marion County Superintendent Chris Brady described steep increases in insurance, device and energy costs that have eroded district flexibility.
Katie Webb, superintendent of Lawrence County Schools, said that HB 500 as drafted would not equalize building‑fund nickels passed since January 2024 for 17 districts. Webb said equalization historically returned state tax revenue to support local building projects and estimated the combined equalization impact for those 17 districts would be about $2.9 million in fiscal year 2027 and about $2.8 million in fiscal year 2028. "Without that language, our students are being left out of that system entirely," Webb said.
Committee members asked presenters clarifying questions about percentages and slides. The subcommittee received the testimony; there were no votes on HB 500 during the session.
