LOUISVILLE, Ky. (WDRB) -- Jefferson County Public Schools, Kentucky's largest district with a $2.3 billion budget, faces a financial crisis so severe leaders said it could run out of money by next fall.
During Wednesday's board meeting, board members said they were blindsided by the severity of the district's financial situation.
JCPS is currently short $188 million, and to continue paying teachers next fall, the district may have to sell off investments. Board members said they only learned the district would have to sell off assets when asked to vote on this year's budget.
"Just to meet what we need, we have to sell off assets," board member Taylor Everett said. "That was definitely news to all of us."
Board Chair Corrie Shull said the board was misled, and financial leaders admitted they'd cut information from briefings — including organizational charts — because they didn't see it as "relevant."
During Wednesday's board meeting, Shull questioned JCPS CFO Eddie Muns about the omissions.
"It was not viewed as pertinent and relevant and maybe data that would be useful for creating, for throwing out allegations about JCPS more so than pertinent, relevant data," Muns said.
"But isn't that deception?" Shull asked.
"I would call it a judgment," Muns replied.
Everett said taxpayers' money isn't being treated responsibly.
"These are every citizen's tax dollars, and it is very frustrating that sometimes I don't feel like we view it that way," Everett said.
The district's CFO said over the last eight years, JCPS's spending grew, with COVID-19 relief funds allowing expenses to spiral.
Everett said the district should leverage its size to negotiate with outside vendors. The district's CFO said it spends about $300 million on outside vendors.
Staffing costs also contribute to the crisis.
JCPS will spend $2 million this year paying full-time teachers to cover classes because there aren't enough substitutes. Everett noted that this cost is almost three times the cost of what they would pay for substitute teachers.
Local taxpayer Rod Daily echoed the board's frustration.
"It's actually taxpayer sabotage," he said. "The taxpayers are footing the bill, and it's a poor return on investment because the schools are failing."
While this year's budget is locked in, the district faces critical decisions in January when it drafts its plan for next year and decides where cuts will be made.
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