LOUISVILLE, Ky. (WDRB) -- Jefferson County Public Schools approved a tentative budget for the 2025-26 fiscal year, which cuts spending by nearly $100 million.

That includes cutting $12 million budgeted for transportation stipends offered this past school year. 

The Jefferson County Board of Education reviewed the proposal Tuesday, which was presented by Chief Financial Officer Eddie Muns. He said the district cut $99.1 million from its spending plan — just shy of its $100 million reduction goal — through a collaborative effort between Superintendent Marty Pollio and district leadership.

JCPS said the cuts come in part due to the loss of more than $500 million in federal COVID-19 relief funding that had supported salaries, programming, and transportation over the last several years.

"Really coming out of COVID dollars is what led to all of this," Pollio said. "You had access to a lot of federal funds (and) could do a lot of support that you can't do anymore."

Among the largest cuts was the elimination of $12 million in transportation stipends that had helped families drive students to school after the district scaled back busing to magnet and traditional schools. 

Approximately 17,000 students were eligible for the stipends after the district cut transportation for many magnet and traditional schools and those who attend Academies of Louisville.

Families received $5 per day or $10 per day to take their kids to school if they qualify for free or reduced lunch.

JCPS parent Lashonda Lacy said the stipends made a difference when she was transporting her sons to Johnson Traditional Middle School. Although Lacy's family would not have access to stipends since transportation was restored for students at Johnson Traditional, she expressed disappointment in the district's decision. 

"It's a big blow to us as parents. They continue to say you know they're trying to do what's in best interest of the parents and the students, and it doesn't seem that way to us," Lacy said. "It seems like everything we get a little step forward, they knock it right back down."

Other significant cuts include:

  • Delaying renovations to athletic facilities at six high schools — Atherton, Butler, Eastern, Southern, Valley, and Fairdale — which is expected to save $8.5 million.
  • Postponing the purchase of new buses, saving $1.6 million.
  • Reducing contracts with outside organizations, including a drop in funding to the Louisville Urban League from $6 million to $1 million.

Despite the cuts, the budget maintains nearly $30 million for racial equity initiatives and more than $11 million for mental health practitioners and employee COVID-stipends being carried over.

Additional investments include, $4 million in new funding for multilingual students. JCPS says multilingual learners now represent one in every four students. The district will also continue $20 million for stipends and support for Accelerated Improvement Schools (AIS) and Choice Zone schools.

Overall the district is projecting a $102 million deficit. Muns emphasized that the shortfall could be addressed with another $50 million in cuts next year, which he said would lead the district to a financially stable "soft landing."

The tentative budget also meets the state-mandated 2% contingency reserve, but JCPS’s long-term goal is to increase that reserve to 4–5%.

Board member James Craig said the district will likely ask voters to approve a tax increase in 2026, adding that the board must "seriously be looking at revenue streams."

"I don't see how we avoid next year without a tax increase on the ballot," Craig said. "I don’t see how we can continue to deliver the results this community demands without something happening in the 2026 election cycle."

JCPS will present its working budget in September, which will include updated projections for property tax revenue and a clearer picture of the district’s financial trajectory.

In the meantime, officials say they will continue exploring options to reduce expenses and prepare for additional cuts next year.

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