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State officials cite growth in CTE participation and outline new funding rules
Summary
KDE's Office of Career and Technical Education told the EARS subcommittee that recent supplemental funding and formula changes increased CTE participation and career-ready outcomes; presenters described FY26/FY27 allocation math, incentive values, and plans for AI pathways and staff training.
Beth Hargus, associate commissioner in KDE's Office of Career and Technical Education, told the subcommittee Kentucky's supplemental CTE investments are expanding program participation and career-ready outcomes.
Hargus reviewed funding mechanics enacted in statute and the budget: the supplemental funding formula uses a 60% allocation for weighted full-time-equivalent (FTE) enrollment and a 40% allocation for high-quality incentives (concentrator status, technical-skill attainment, CTE dual credit and work-based learning). For fiscal year 2026 the presentation showed a weighted-FTE value of about $1,320 and an incentive value of $455.93; a student could earn as many as four incentive awards under the design.
The presenter said the General Assembly added recurring supplemental funding in HB500 and appropriated an additional $14 million in HB900 for FY27-FY28 to expand inclusion of area-technology centers. Hargus said that those measures were intended to hold districts harmless while enabling state-operated ATCs to participate in the incentive calculations.
On outcomes, Hargus reported CTE participation rose nearly 18% since the 2022 school year; the share of students reaching concentrator status increased from about 75% to 83.8%; dual-credit attainment rose roughly 34%; registered apprenticeships increased by nearly 58% (to 413); and career readiness reached about 64% for the 2024-25 graduates, according to slides shown to the committee.
Hargus also cited analysis from the Kentucky Center for Statistics linking CTE pathway completion and work-based learning to stronger five-year employment rates and higher median wages. Looking ahead, KDE plans to expand middle-school career exploration, pilot an AI-focused local CTE pathway in one district, and partner with the University of Louisville to provide staff training on ethical AI use in instruction.
Senators requested statewide figures separating career readiness and college readiness; Hargus confirmed the career-ready share on slides (64% for 2024-25) and said state college-readiness percentages were not available during the presentation but could be compiled for the committee.
The presentation did not include committee votes; members thanked presenters and moved on to the next agenda item.
