JCPS approves audit plan to address $188 million budget gap

LOUISVILLE, Ky. (WDRB) – The Jefferson County Board of Education on Tuesday night quietly approved an audit plan aimed at addressing the district’s $188 million budget shortfall.

The plan passed without discussion in a batch vote during the board’s first regular meeting since JCPS revealed the depth of its financial troubles.

Documents show auditors will review fiscal years 2022 through 2025, focusing on new positions, pay raises above cost-of-living increases, district bidding practices and programs costing more than $1 million a year.

The audit will also examine how district leaders and the board have managed money and recommend ways to strengthen financial stability.

"This is going to take a very deep dive into our budget," Superintendent Dr. Brian Yearwood said.

This is separate from the deficit-specific audit Yearwood requested a couple of weeks ago.

Initially, he said a firm had been selected for that audit, but later that day reversed course and instead called for an RFP — a request for proposals — allowing multiple companies to submit bids for the job.

That means JCPS will fund two audits — one for the superintendent and one for the elected school board — both paid for with taxpayer money.

The board and district both said they do not yet know how much either audit will cost.

"I believe in measuring twice and cutting once," Yearwood said. “This way, I’ll be able to have a very solid number in terms of our deficit."

JCPS is bracing for more than $130 million in cuts next year. Some parents told the board they’re worried the district isn’t spending money where it’s needed most. One parent said his 11-year-old son now rides TARC to school after his bus route was cut.

"Here’s a bus that goes down our street that has less than 20 kids on it," he said. “With us facing financial problems, that to me is an issue. Why is there a half-empty bus?”

Another parent spoke in favor of increasing taxes to support education, but Yearwood said that’s not part of his plan.

WDRB asked the superintendent why he keeps saying the district won’t raise taxes when that decision rests with the school board.

"I serve at the will of the board. I’m their employee," Yearwood said. "If that’s the will of the board, that’s what we’ll do."

The district’s internal audit team will select one of three pre-qualified, bid firms to carry out the review. The audit is expected to take three to four months.