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Federal Perkins funding, CTE funding models and local needs assessments explained

Interim Joint Committee on Appropriations and Revenue · July 1, 2026
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Summary

Representatives from the Education Commission of the States and Advanced CTE told the committee that Perkins V is the main federal funding vehicle for career and technical education (about $1.4 billion nationally) and described student-, cost-, resource- and hybrid-based funding models states use to distribute CTE dollars.

Speakers from the Education Commission of the States (ECS) and Advanced CTE presented a national context for K–12 capital and career and technical education funding. ECS staff said that states provide roughly 22% of K–12 capital spending nationally and highlighted substantial variation among states in how capital and CTE support are structured.

Tom Kylie (ECS) summarized four approaches to funding secondary CTE: student-based (allocations follow enrolled CTE students), cost-based (reimburse documented program costs), resource-based (state-directed staffing/resources) and hybrid models that mix elements. Each model carries trade-offs in transparency, oversight, flexibility and administrative complexity.

Perkins V and Kentucky: Kate Kramer of Advanced CTE outlined Perkins V mechanics and options. Perkins V remains the primary federal funding stream for CTE (the basic state grant totals approximately $1.4 billion nationwide). States typically must pass at least 85% of their basic state grant to local recipients; up to 10% may be used for state leadership activities (professional development, technical assistance) and some states reserve up to 15% for innovation or to support minimum allocations to small local recipients. Kramer noted Perkins 5 requires a comprehensive local needs assessment every two years so local spending aligns with documented gaps and priorities.

Why it matters: Because Perkins and state funding decisions shape whether districts can equip CTE programs, staff teachers and finance specialized facilities, the committee heard that states and locals must balance flexibility with accountability when distributing limited dollars. Committee members were offered resources and comparisons from the ECS national survey to inform Kentucky's approach.

What comes next: ECS and Advanced CTE offered to provide written resources and follow-up data for committee staff.