LOUISVILLE, Ky. (WDRB) — Jefferson County Public Schools leaders say the state’s largest school district is facing a financial crisis that could leave it out of money in just over a year.
The school board approved this year’s budget at a meeting Tuesday night.
Executive Administrator of Budget Dr. Thomas Aberli said the situation is so severe that the district may be forced to sell assets just to make payroll.
“Next fall, we will be selling off assets in order to pay payroll, and the fall after that, we will not have enough assets to sell off anymore,” Aberli said. “And we will not reach that point, because at that stage, we will know if there will no longer be Jefferson County Public Schools. Right?”
JCPS is running a $188 million deficit this school year. While smaller than in the last two years, district leaders say the shortfall remains crushing.
The financial hole stems from big one-time spending on school upgrades, bus driver incentives, weapons detectors, among other things. Staff salaries have also climbed 14% in four years, and pay now makes up 84% of the budget — much higher than most districts. On top of that, federal COVID-19 relief money has expired.
Now, JCPS Superintendent Dr. Brian Yearwood says cuts are unavoidable.
“It’s going to require some hard decisions, some very unpopular decisions,” Yearwood said.
Yearwood has already implemented a hiring freeze. He said schools will be protected as much as possible, there will be no across-the-board salary cuts, and reductions will target central office positions first.
Some board members floated around the idea of a utility tax, one of the few options left to raise revenue. District officials admitted financial oversight has been too loose in the past.
The biggest changes are expected to come in January, when JCPS drafts the 2026-27 budget.
“We will be implementing new budget standards and reporting requirements to make sure that we never get in this situation ever again,” JCPS Chief Financial Officer Eddie Muns said.
Yearwood made the district’s position clear.
“If we fail in this endeavor JCPS will fail and we can’t let that happen,” he said.
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