JCPS faces pressure to close budget gap as state 'SEEK' funding decreases

LOUISVILLE, Ky. (WDRB) — Jefferson County Public Schools faces what is projected to be a $188 million budget shortfall in its 2026-27 budget. In an effort to close the gap, the district is making some painful cuts.

But some district leaders said the pressure didn't start this year. Rather, it has been years in the making in part because of a decline in state support for public education.

"Every little squeeze has an impact in the classrooms, at Lowe Elementary and throughout the district," said Jefferson County Board of Education member James Craig.

In 2018, JCPS received more than $256 million from the state through the Support Education Excellence in Kentucky (SEEK) funding program, which is the state's main education funding formula.

By 2025, that funding dropped to about $216 million — a hit made worse by soaring inflation.

"If the SEEK formula stays flat, or if it continues to decrease as it has over the last seven years at the same time that prices continue to increase, at the same time that teachers deserve raises, right? And at the same time Frankfort calls on us to do more with the limited resources we have, we are going to continue to face budget crises over and over and over again," said Craig.

While overall revenue in JCPS has grown, where the money comes from has changed as the district relies more on local taxpayers.

In 2019, about 31% of the district's revenue came from property taxes. But by 2025, that rate climbed to more than 37%.

The Kentucky Center for Economic Policy found SEEK payments to JCPS have decreased by 45% since 2008. When adjusted for inflation, it shows a steady decline.

"The trend has been the state pulling back and the locals trying to figure out how to make some of that up," said Jason Bailey, with the Kentucky Center for Economic Policy.

State lawmakers point out Kentucky increased SEEK funding in the 2024 budget by more than 9%. The current state budget proposal would keep per-student spending flat, with no inflation adjustment.

House Republicans defended the plan, with Speaker David Osborne saying, in part, "Kentucky is still recovering from their failed policies that created billions in unfunded public pension debt, left the state with no budget reserve to respond to emergencies, and expanded services far beyond their original intent."

When asked whether another tax increase could be on the table in Jefferson County, Craig said "This is not a sustainable position we are in today."

In December, a JCPS task force recommended against pursuing a tax increase. The task force said it would likely not pass if put to a vote.

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