Analysis of Governor Beshear’s 2026 Education Budget Proposal
Jan. 8, 2026
Contact: Lisa McKinney, Communications Director, The Prichard Committee
(cell) 859-475-7202
lisa@prichardcommittee.org
Analysis of Governor Beshear’s 2026 Education Budget Proposal
Update to Original Post
After the analysis below was posted, the Prichard Committee took a further look at how the Governor’s recommended budget handles debt service for new capital projects in higher education. In past budgets, those debt service costs have been budget line items for each university and KCTCS, to be paid out of their overall appropriations from the general fund. This year’s proposal is different: it includes postsecondary debt service in the Finance and Administration portion of the budget. Accordingly, our original reporting on budget changes did not provide a complete picture of the postsecondary impacts. Here’s our updated, more complete statement:
- Excluding debt service, overall postsecondary education funding in the governor’s proposal reflects a reduction of $12.8 million for FY 2027 compared to current FY 2026, a reduction of about 1%.
- Debt service for new capital projects is addressed in a different section of the budget, as part of the Governor’s recommendation for Finance and administration
- In addition, the Governor’s recommendation replaces Performance Funding with appropriations direct to each institution in amounts matching their most recent shares of Performance dollars.
Here is an updated edition of our budget summary for postsecondary, comparing the recommendations to FY 2026 appropriations minus the FY 2026 amounts for debt service. Our original chart is also included to enable comparisons.
Early childhood funding insufficient, higher ed takes deep cuts
LEXINGTON, Ky. — The Prichard Committee for Academic Excellence appreciates Governor Andy Beshear’s continued recognition that education is central to Kentucky’s economic strength and quality of life. There cannot be sustained upward mobility for Kentuckians without foundational investment in education. We commend the governor for proposing a 7% raise for Kentucky’s teachers and for maintaining attention on workforce development and student success. At the same time, this budget proposal falls short of what is needed to meet Kentucky’s long-term educational and economic goals—particularly in early childhood education and postsecondary attainment.
Early Childhood Education
Early childhood education and child care are foundational investments that support working families, strengthen the workforce and set children on a path toward lifelong success. Kentuckians overwhelmingly agree that the Commonwealth is not doing enough: a 2023 survey found that 94% of parents and 91% of voters believe Kentucky must increase access to child care.
Concerningly, the budget includes no new funding for preschool in FY 2026–2027 and only $40.5 million in FY 2027–2028—an amount far below what is needed to expand access statewide. The Prichard Committee’s Big Bold Ask called for $80 million in additional annual funding for preschool. The ask also called for $251 million more to provide child care assistance to 47,000 additional young children with family incomes below 200% of poverty each year, making the total child care ask $331 million annually. Kentucky cannot claim to be serious about early childhood while continuing to underfund one of its most effective tools for closing achievement gaps before they widen.
The Prichard Committee has repeatedly called for meaningful investments in proven early childhood strategies. We urge the General Assembly to add $12 million per year from the General Fund to expand the HANDS voluntary home visitation program, which strengthens parenting. That investment is not included in the Governor’s proposal.
K–12 Education
We strongly support the governor’s proposed 7% raises for teachers, which are critical for recruitment, retention and morale. The proposal also calls for a $4,701 base guarantee in FY 2027 and a $4,818 base guarantee in FY 2028 per pupil in SEEK funding, and for kindergarten pupils to continue to receive full-day SEEK funding.
Notably, the proposal does not include full funding for student transportation. The Prichard Committee recommends fully funding transportation at an estimated additional cost of $89 million per year. Without this investment, districts—especially rural ones—are forced to divert classroom dollars to cover basic operational needs.
School mental health services also receive no funding, representing a $7.4 million annual cut. We are concerned that this will affect both student safety and their ability to reach their full potential in the classroom.
Postsecondary Education (See Above Analysis)
Kentucky’s goal of reaching 60% postsecondary attainment by 2030 requires sustained, strategic investment. Yet overall postsecondary education funding in the governor’s proposal reflects a reduction of approximately $126 million compared to the current year—a 7.9% cut.
The Prichard Committee strongly supports maintaining the current investment in our institutions of higher learning and the Kentucky Community and Technical College System’s request for General Fund appropriations of $238 million in FY 2027 and $272 million in FY 2028. These investments would represent increases of $41 million and $78 million, respectively, above the FY 2026 budget. The governor’s proposal adds only $9 million in General Fund support for KCTCS.
In addition, the governor’s proposal includes no performance-based funding, which the Prichard Committee has supported because it has been shown to improve student retention and graduation rates. We are concerned the removal of performanced-based funding could slow progress on those measures it is intended to incentivize.
To expand access to advanced coursework, the Prichard Committee is calling for a $33 million annual increase in dual credit and Work Ready Scholarships, doubling those investments. The governor’s proposal provides no net increase in General Fund support, increasing dual credit by $8 million while cutting Work Ready Scholarships by the same amount. While the proposal does include a $6.3 million restricted fund appropriation for dual credit using excess lottery funds, this does not substitute for stable, ongoing General Fund investment. Additionally, the Prichard Committee’s Legislative Agenda calls for $2 million to guarantee access to Algebra I by 8th grade by strengthening HB 190 (2025).
“Kentucky’s future growth depends on our continued strengthening of families and our communities, with education improvement at the core,” said Brigitte Blom, president & CEO of the Prichard Committee. “The governor’s upward mobility agenda is laudable and progress to-date through quality jobs and housing are signs we are on the right track. As the House and Senate take the budget from here, we hope to see deepened investment in the means to move families forward with money in their pockets and the skills and credentials and support to begin growing wealth. Getting early childhood right and ensuring success of our young people post-high school is critical.”
The Prichard Committee believes in the power and promise of public education –early childhood through college– to ensure Kentuckians’ economic and social well-being. We are a citizen-led, non-partisan, solutions-focused nonprofit, established in 1983 with a singular mission of realizing a path to a larger life for Kentuckians with education at the core.