Recent decisions in Frankfort have brought two reminders of how economic and legal battles over public education are playing out for Kentuckians. In a unanimous ruling, the Kentucky Supreme Court struck down the state’s 2022 charter school funding law as unconstitutional, reiterating that public tax dollars may only be spent on “common schools” unless voters approve otherwise. At the same time, educators and school support staff have been sounding alarms over House Bill 500, a proposed state budget that would cap the state’s contribution to employee health insurance, potentially slicing hundreds of dollars a month from teachers’ and bus drivers’ take-home pay.
Charter schools are publicly funded schools that operate independently from traditional public school districts. While they are tuition-free and open to students, they are typically run by private nonprofit or independent boards and are granted greater flexibility in curriculum, staffing and operations in exchange for increased accountability to performance standards. Supporters argue that charter schools offer innovation and choice within the public system, while critics contend that they can divert critical funding from traditional public schools.
In 2017, Kentucky’s legislature passed a measure that legalized the establishment of charter schools. Despite this measure, Kentucky has yet to open a charter school due to obstacles in establishing a funding mechanism.
In 2024, voters also voted against an amendment to the constitution that would have allowed private schools to receive tax dollars to support the students attending. This served as a major setback for supporters of charter schools, who have argued that offering educational choices for parents helps them to find the best fit for their children, while others argue that diverting funds to private or charter schools would leave public schools underresourced.
Now, a unanimous ruling has come from the Kentucky Supreme Court stating that public tax dollars cannot fund charter schools. Justice Michelle M. Keller wrote in the opinion that the
“Constitution as it stands is clear that it does not permit funneling public education funds outside the common public school system.”
This is not the only funding battle currently facing Kentucky’s education system.
The Kentucky House of Representatives has recently introduced HB 500, the proposed state budget for the upcoming fiscal year. The bill will cap the state contributions to employee health insurance – making those costs the responsibility of current and former state and school employees. A letter from the Kentucky Employees Health Plan outlined the following cuts in benefits, despite many state workers already making less than they would in the private sector:
Teacher Rank III: -$486.04 per month
School Bus Driver: -$535.18 per month
Correctional Officer: -$425.88 per month
Social Worker: -$425.92 per month
State Trooper: -$394.34 per month
State Legislator: -$277.20 per month
Legislative Research Commission employee: -$239.78 per month
Administrative Office of the Courts employee: -$477.64 per month
For many educators and support staff, these projected increases represent not just a line item in a budget, but a significant financial strain. A bus driver losing more than $500 a month or a teacher facing nearly $6,000 in additional annual costs may be forced to reconsider whether public service remains financially sustainable.
