The Kentucky Supreme Court issued a definitive ruling Thursday, striking down a 2022 law that attempted to establish and fund the state’s first charter schools. In a unanimous decision, the justices declared that the state constitution forbids using public tax dollars to support a “parallel” school system that sits outside the traditional oversight of local school districts.
The opinion, authored by Justice Michelle M. Keller, centers on a long-standing “fiscal gate” within the Kentucky Constitution. Since 1891, the state’s governing document has mandated that all education funds be reserved strictly for “common schools”—the traditional public school system—unless voters explicitly approve a new tax for a different educational purpose.
A Question of Definition
The legal battle focused on House Bill 9, a piece of legislation designed to launch a charter school pilot program in Northern Kentucky and Louisville. Proponents argued that charter schools, while privately managed, should be considered “public” because they are funded by taxpayers and are tuition-free.
However, the Court found that charter schools do not meet the legal definition of a common school. Unlike traditional public schools, which must accept every child within their boundaries, the proposed charter schools could implement enrollment caps and lottery systems.
“Simply putting the label ‘public’ on something does not make it such,” Justice Keller wrote. The Court noted that because charter schools operate under their own sets of rules and are not governed by local elected boards, they cannot be categorized as part of the state’s unified system.
Protecting the Permanent Fund
The ruling leaned heavily on Kentucky’s unique constitutional history. During the 1890-91 Constitutional Convention, delegates were wary of politicians diverting school money to other projects. They reacted by creating what the Court described as a “lockbox” for education funding.
Under Section 184 of the Kentucky Constitution, no money can be raised or collected for education outside the common schools without a majority vote from the public. This distinguishes Kentucky from many of its neighbors, where legislatures have broader authority to redirect funds to charter programs or private school vouchers.
The Court pointed to a recent statewide vote in 2024, where Kentucky voters in all 120 counties rejected a constitutional amendment—known as Amendment 2—that would have allowed the General Assembly to fund students outside the public system. The justices noted that this “sweeping statewide rejection” reinforced the idea that education funding is strictly reserved for common schools.
Lack of Public Oversight
The justices also expressed concern regarding the lack of accountability in the charter school model. In a concurring opinion, Chief Justice Laurence B. Lambert highlighted that the General Assembly essentially ceded its authority to monitor school spending to independent “authorizers.”
The Court observed that under HB 9, charter school operators could use tax dollars to buy buildings that would not belong to the state or the local school district. There was also no mechanism for the state to investigate waste or mismanagement within these schools on a day-to-day basis, which the Court ruled violates the mandate for an “efficient” school system.
The Path Forward
The ruling does not mean charter schools can never exist in Kentucky, but it does mean the legislature cannot fund them through the current tax structure. The justices noted that if lawmakers wish to pursue charter schools, they must either bring them fully under the control and regulations of local school boards or obtain direct permission from voters through a specific tax referendum.
“Innovation is welcome; circumvention is not,” the opinion stated, affirming a lower court ruling from Franklin Circuit Court that had previously halted the law.
The decision represents a significant victory for the Council for Better Education and the Jefferson County Board of Education, who led the challenge against the law. For now, the “constitutional yardstick” used by the Court ensures that Kentucky’s education dollars remain firmly within the traditional public school infrastructure.
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