Boone County Schools stands to lose about $1.5 million in state funding for the 2026-27 school year as rising property values shrink the district's share of Kentucky's main education aid program.

The district's total allocation from the Support Education Excellence in Kentucky (SEEK) program is forecast at $54.5 million for 2026-27, down from $56 million in 2025-26, LINK nky reported Monday, Sept. 14. Per-pupil funding drops from $2,950 to $2,837.

The 36-year-old SEEK formula sends more state dollars to districts with lower property values and less to those where values are high. Property assessments in Boone County jumped 21.9% in the latest cycle. That surge means the state considers the county better able to fund schools locally, even as homeowners face bigger tax bills on the same houses.

Boone County is not alone. All three Northern Kentucky county school districts, Boone, Campbell and Kenton, are forecasting SEEK losses above $1 million. An analysis by the Kentucky Center for Economic Policy found 89% of Kentucky districts expect a per-pupil SEEK cut in 2026-27.

Every Northern Kentucky district has proposed or approved generating 4% more revenue through local property taxes to help offset the gap, according to LINK nky.

The Boone County School Board voted unanimously on Monday, Aug. 31, to lower tax rates but still generate 4% more revenue because of the higher assessments. As WCPO reported, the new rates are 64.6 cents per $100 of real estate valuation, 65.5 cents for tangible property and 49.7 cents for motor vehicles.

Board member Karen Byrd warned at that Aug. 31 meeting that the district faced potentially cutting 42 positions without the revenue increase. She described Frankfort's view of the county bluntly: "… Which is their way of saying you should pay more than your fair share."

Two area state representatives say the formula needs an overhaul. Rep. TJ Roberts of Burlington, who represents Kentucky's 66th District, told LINK nky the current system ignores a growing gap between home values and household income.

"The SEEK formula does not contemplate the situation we are in today, where property values are skyrocketing, but income of the residents is not," Roberts said.

Roberts said he is exploring an affordability index that would factor income into the formula alongside property values.

Rep. Marianne Proctor of Union, who represents the 60th District, said the formula should not become a blanket reason to raise local taxes. She proposed letting Kentucky residents vote on all property tax increases. Under current law, a public vote is triggered only when a district seeks more than 4% additional revenue.

Chay Ritter, director of finance and operations at the Kentucky Department of Education, said property values are one of the biggest factors in a district's final SEEK amount. Attendance, English-language learners and students with disabilities also factor in.

Any changes to the formula would require action by the Kentucky General Assembly, where Roberts and Proctor both said they want districts and legislators working together on a fix.