LOUISVILLE, Ky. — Jefferson County Public Schools is 85% finished finalizing where it will cut $132 million from next year’s budget. Dr. Brian Yearwood announced this at a revenue advisory task force meeting exploring future taxation options. 

Superintendent Dr. Brian Yearwood said he settled on $132 million in reductions after a line-by-line review of the district’s entire budget. He said JCPS will cut in three major areas: reducing and restructuring contracts, eliminating central office jobs and changing the district’s organizational structure to eliminate duplicate work. He is also considering closing schools with low enrollment.

"When we are paying more for schools because of their size especially smaller sizes we have to make those corrections," Yearwood said.

He said reductions could also include fewer contract days for some administrative roles. Yearwood is also changing district systems, including a new budget and staffing process and quarterly public financial reporting.

He says all contracts over $100,000 will undergo a return on investment review. The district plans to publicly present the full budget — including justification for every cut — on Jan. 20.

JCPS faces a $188 million deficit, and on Tuesday night its revenue advisory task force reviewed the taxes the district already levies — and what options remain if JCPS seeks more money next year.

Task force members acknowledged the tension between funding schools and the burden on families.

"Nobody likes taxes, nobody wants to pay them but everybody wants something," one member said.

"We’ve got to bite the bullet now. I just feel it," they added.

JCPS currently levies real estate taxes at 71.7%, personal property taxes at 73.5%, a 0.75% occupational tax — a payroll tax used by only a few Kentucky districts — and both aircraft and watercraft taxes. Its motor vehicle tax is at 58.5%, the maximum allowed.

"A dollar here and a dollar there adds up for everybody," a task force member said.

Because many of those taxes are maxed out, the district has only a few possible revenue options left. One is implementing a utility tax — a percentage added to electric, phone, water and similar bills.

"Maybe that $3 is what turns their LG&E off," a task force member warned.

Board Chair James Craig said the utility tax has historically been avoided because "it has a greater impact on the pocketbooks of your everyday Louisvillians, so we have avoided it thus far."

Another option would be to exceed the standard 4% property tax revenue increase or add a "nickel tax," a property tax dedicated to facility improvements that JCPS has never used. Both would be recallable, meaning more than 5,000 voter signatures could place the tax on the ballot.

When asked whether the district could move forward long-term without a recallable tax increase, Craig said no.

"We are not going to build new schools in this district without something above and beyond a recallable rate," he said.

"We are not going to continue to fill our classrooms with teachers without something recallable at some point. I don’t know if that’s in Nov. of ‘26 — it may not be — but we are going to have to at some point."

JCPS Chief Financial Officer Eddie Munns declined an interview Tuesday.

The task force decided to wait until spring to make its tax recommendation, after learning the full impact of Yearwood’s $132 million in budget cuts. The group only recommends a rate — the JCPS school board makes the final decision.

Top Stories:

Louisville man indicted for 2018 Parkland neighborhood fatal shooting

Louisville needs a new jail costing as much as $500 million, experts say

Indiana governor defends redistricting plans after criticism from President Trump

Copyright 2025 WDRB Media. All Rights Reserved.