LOUISVILLE, Ky. (WDRB) — Jefferson County Public Schools interim Chief Financial Officer Tom Aberli said he does not anticipate additional budget cuts, even as the district prepares for the possibility of taking out a line of credit to cover payroll in the coming years.

The type of help they're seeking is called a tax anticipation note. Leaders expect the amount to be about $100 million, roughly equal to two payrolls.

JCPS said the issue comes down to timing. Much of the district’s tax revenue arrives later in the year, and before that money comes in, cash levels can drop. Because of the district’s budget deficit, leaders said they are preparing in case cash levels get too low in the fall.

"They mentioned in the meeting that we may be looking at about a 4% rate associated with whatever we may draw from there, that (the interest) wouldn't be applied unless we actually chose to draw those funds. There would be a fee associated with the actual facilitation the administration," Aberli said.

The district said the discussion comes after cutting more than $115 million from the budget. That total fell short of the district’s original $132 million target.

Still, JCPS said the district met its most important goal — reducing the deficit.

According to district leaders, about $80 million in planned cuts were intended to go directly toward lowering the deficit, and JCPS said it hit that mark.

Another roughly $50 million in planned cuts was supposed to free up money for deferred and unmet needs, including facilities Chromebooks and buses.

District leaders said the $17 million difference between the planned cuts and actual cuts will come out of that second category, meaning some facilities projects likely will not happen.

"We can anticipate increased revenues over next 2-3 years and that will knock down our deficit and bring us back to a place where our deficit is no greater than our vacancy credit," Aberli said.

Vacancy credit is the amount of money a district budgets for staff, but does not spend because positions remain unfilled.

The projected working budget deficit next year is $82 million. That is down more than $100 million from last year.

Aberli said there has been no discussion of further cuts next year. 

"There is no anticipation that anything related to a reduction in staff would have anything to do with deficit reduction," Aberli said.

Leaders said help from the bank is more likely to be needed in 2027 than 2026. They expect to learn more about the potential line of credit after July 1, when the district has a better idea of how much money it has in its fund balance.

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