ASHLAND, Ky. (WCHS) — A valuable funding source for school districts across Kentucky may have a budget shortfall for this school year.

Preliminary information from the Kentucky Department of Education estimates a shortfall of $12 million for state's Supporting Education Excellence in Kentucky, or SEEK, program. The state allocated funding is based on the number of students a school district has and transportation costs, among other variables and is money school districts count on to educate students.

"The amount we receive is the driving force in how we educate our kids," Boyd County School Superintendent Bill Boblett said.

Boblett said even though shortfall represents less than 2% of the nearly $3 billion of the overall SEEK funding, a shortage of money is still concerning.

"We are anticipating a certain amount of money that will come in. If it doesn't meet that, that amount we had planned for, then it's just less money that we can spend on staff and things our kids need," Boblett said.

He said knowing now about the funding shortfall enables superintendents to think about possible cuts if necessary.

"I think that is a possibility that can happen. It could be less amount of money we have for curriculum materials. It could be less amount of money for staffing. I think everything is on the table," Boblett said.

Kentucky Department of Education Commissioner Robbie Fletcher said in a statement regarding the issue that his office is working state and legislative leaders to find funding options to minimize the impact of the funding shortfall.

"You kind of have to plan for the worst and hope for the best," Boblett said .

Officials say it's early in the process and that the Department of Education is still doing SEEK calculations that are to be finished by March.