LOUISVILLE, Ky. (WDRB) -- The financial outlook for Jefferson County Public Schools is grim as the district confronts a looming budget deficit close to $100 million.
In response, newly-appointed JCPS Superintendent Dr. Brian Yearwood has established a Revenue Advisory Task Force to help steer the district toward fiscal stability.
Pat Mulloy, a former economic development advisor to Louisville’s mayor, emphasized his commitment to understanding the district’s financial complexities.
"I'm just here to learn and absorb," Mulloy said. "I want to understand sources and uses, and what the issues are."
JCPS received approximately $500 million in federal COVID relief funds, which have now largely dried up, coupled with reduced state funding. Board member James Craig described the daunting challenge ahead:
“We’re looking at an additional $100 million that has to be cut from next year’s budget. We’re also dealing with significant increases in the cost of many items we purchase," said Craig. "And in my opinion, we face a funding shortage when it comes to paying our teachers.”
School funding remains a complicated issue. Property taxes, the largest source of local school revenue, are influenced by a paradox in Kentucky’s funding system. Jefferson County is a “donor county,” meaning that despite having one in every six Kentucky students enrolled in JCPS, higher local property values actually reduce the district’s state funding.
“There are students from around the state who come to Louisville for services they cannot get in their home counties," Craig explained.
Occupational taxes contribute roughly 17% of the district's budget. While revenue has grown over the past four years, there is currently no money allocated for teacher or staff raises. The district also faces broader economic and political uncertainties at both state and federal levels.
“The economic uncertainties and market and political issues we face in Washington and Frankfort add to the challenge,” Craig noted.
The Revenue Advisory Task Force, composed of community members, will meet again in two weeks as the district explores potential solutions to its financial crisis.
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