LOUISVILLE, Ky. (WDRB) -- Jefferson County Public Schools approved its tentative budget for the 2025-26 fiscal year, which cuts spending by nearly $100 million dollars.
The district anticipates more cuts in the future, as well as a tax hike in upcoming years.
JCPS Chief Financial Officer Eddie Muns presented the upcoming tentative budget to the board.
When doing so, Muns said a collaborative effort between Superintendent Dr. Marty Pollio and the cabinet reduced budget expenses by $99.1 million. Its original goal was to reduce expenses by $100 million.
The tentative budget expenses maintain nearly $30 million for racial equity funds, more than $11 million for mental health practitioners and stipends for employees given during the 2024-25 school year.
The budget also adds nearly $4 million more for multilingual students, which the district said accounts for roughly one out of every four students in JCPS. It also maintains $20 million in stipends and support for AIS and Choice Zone schools.
As for revenue highlights, Muns said the district can expect property tax assessments to grow, a 6% increase in base SEEK funding, an increase in SEEK transportation funding and the local economy to slow but remain strong. Muns also emphasized JCPS continues to rely heavily on local taxpayers. JCPS said 62.9% of its revenue comes from property and occupational taxes.Â
Including the budget reduction and a cost of living adjustment of 3%Â for employees, the difference between revenue and expenses is $102 million.Â
"So a $102 million deficit at the end of the budget. That number doesn't sound very good, but when tracking our budget over the next six years, you'll see that after factoring in the budget reductions in the current year and an additional $50 million of budget reductions needed next year, we flat line at stable level," Muns said. Â
The district said its next budget will have to include an additional $50 million in cuts to achieve a "soft landing." It will also need to offset any future expenses by making further reductions.
Board member Taylor Everett asked whether the deficit is due to a loss of federal COVID relief funding, and why there would be a deficit if the district spent the money on one-time expenditures.Â
"Really it is a phenomena almost every district is facing across the nation, which was anticipated because of the absolute increase in funding revenue we had from ESSER (Elementary and Secondary School Emergency Relief) funding," Pollio said in response to Everett's question. "When we talk about increased hours for employees, overtime, additional programming, summer hours for administrators to work. All these things were funded with ESSER dollars. Really coming out of COVID dollars is what led to all of this ... You had access to a lot of federal funds you could do a lot of support that you can't do anymore so I think that's really the basis of what we had to do."Â
Pollio added the district received an additional $500 million from the federal government between 2020 and August 2024.
Despite the deficit, Muns said if the board can cut $50 million next fiscal year, it will keep the district on solid footing.
This budget also achieves the state minimum of a 2% contingency balance, but the district's goal is to get to 4-5%.
When discussing the budget, the board also addressed concerns brought up during public comment regarding the delay in athletics renovations at six high schools. JCPS said it is delaying construction on phase three of its athletics facilities upgrades at Atherton, Butler, Eastern, Southern, Valley and Fairdale due to an increase in construction costs.
"I'm a former student athlete and graduate of Butler in 1986. I ran on that concrete track. It is still concrete to this day and it is unacceptable for our student athletes to have that kind of condition," said Karen Henderson, the head girls' track coach at Butler High School.Â
JCPS said it originally budgeted $2.7 million per field. Costs are now adding up closer to $4 million. The district said it is still committed to completing renovations.
In addition to future cuts, the board added it will likely ask voters to approve a tax increase next school year. Last month, it approved the creation of a task force to explore ways to increase funding.
"We need to seriously be looking at revenue streams looking forward," said board member James Craig. "I don't see how we avoid next year without a tax increase on the ballot. I don't see how we can continue to deliver the results that this community demands ... without something happening in the 2026 election cycle."
JCPS will present its working budget in September, which will provide better accuracy and refinement of the district's financial status, as well as property tax revenue calculations.
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