Lawmakers and university leaders debate "schools of innovation" and funding for university-run academies

The Budget Review Subcommittee on Education heard three hours of testimony on Sept. 17 about efforts to expand school innovation while preserving access to Kentucky's common school system.

Sen. Steve West (27th District), the sponsor of last year's SB207, told the committee the law creates a route for a local school board to contract with a third party to operate a single existing school, with SEEK dollars flowing to the school and a possibility of state waivers so the school can try different practices. "If those waivers are granted, they're free to innovate," West said, describing the model as a tool to lift chronically low-performing schools by pairing public funding with outside management and potential private investment.

Members pressed West on several points: whether a contracted school could "cherry-pick" students (West and colleagues said the statute and the district-level enrollment rules prevent selective admissions at the school level and the district remains accountable), how discipline and enrollment would be handled (discipline would follow district policies; individual placement and expulsions would follow existing rules), and whether teachers would remain district employees (presenters said yes, pensions and personnel remain under district responsibility, though pay could be supplemented).

University-run and residential academies gave the panel a different but related frame for innovation. Eastern Kentucky University's Model Lab School (EKU) described itself as a public P'012 lab school that serves students from multiple districts and trains future teachers; it asked the committee to consider tying its state appropriation to per-pupil counts and cost-of-living adjustments rather than the present flat appropriation of about $4.6 million. "As our enrollment has grown from roughly 659 to 758 students, that flat figure yields a smaller per-pupil allotment," Model Lab's superintendent John Williamson said.

Representatives of university-affiliated programs including Northern Kentucky University's Young Scholars Academy, WKU's Gatton Academy and Morehead State's Craft Academy described high student outcomes and variable funding arrangements. NKU's Young Scholars Academy said its operating model typically produces about $11,000 in annual cost per student (district share roughly $5,700 plus NKU's $3,700), with districts varying in whether they cover tuition, transportation and fees. Gatton and Craft asked for modest additional appropriations to meet capacity and rising costs.

Several members, including Sen. McDaniel and Rep. Klein, pressed university speakers on access and equity: who pays tuition, how many students receive financial aid (EKU said about 3% of its students qualify for free and reduced-price lunch), and whether these programs primarily serve university employees'families (EKU said about 20% of Model Lab students have a parent employed at EKU).

Speakers representing rural districts, such as Gallatin County, urged flexibility so smaller districts can run innovation tracks locally without large new tax burdens. A final panelist, Gary Houchins (Bluegrass Institute/former Kentucky Board of Education member), urged lawmakers to consider enabling federal scholarship tax-credit programs and other mechanisms to expand educational options while remaining mindful of constitutional and fiscal constraints.

The committee did not take votes at the hearing. Members deferred follow-up and budget questions to staff, and the chair said the next meeting is scheduled for Oct. 15.