JCPS officials say financial crisis was not 'hidden from the board or the public'

LOUISVILLE, Ky. (WDRB) -- Jefferson County Public Schools is facing a $188 million shortfall, putting teacher paychecks next fall at risk.

At a Revenue Advisory Task Force meeting Monday, district leaders discussed the financial crisis.

Board members said they were surprised at the severity of the financial crisis, but CFO Eddie Muns insisted the issue was never hidden.

“The issue was not hidden from the board or the public—while board members were surprised and understandably so… that some historical information had been removed from prior presentations. The essential information, the purpose of the information being conveyed, both in the document and presentations was always available,” Muns said.

Board member James Craig said the board was aware of the deficit but trusted the district’s spending plan.

“We were told we have a plan this is sustainable,” Craig said.

When asked who told them the plan was sufficient, Craig said, “Financial leaders, superintendent, everybody else in the room.”

Muns explained that the deficit ballooned from the original estimate due to costly repair projects and a sharp jump in insurance rates—some nearly double what the district paid in previous years. WDRB asked the district why the rates increased so much, district leaders have not answered.

Craig said the district’s leadership approach has shifted over the years.

“The city in 2018 wanted a transformational leader. In 2025, a quiet, competent leader who is going to manage the change we have brought to the district going forward and make it sustainable,” he said.

He also defended district spending, noting there was no misuse of funds.

“This is not a situation where administrators were wasting money, per se, on lavish trips. We don't believe that there was misuse of funds anywhere in the spending over the last couple of years,” Craig said.

The Revenue Advisory Task Force is exploring ways to bring in more revenue. Between now and January, the district must find a solution for the $188 million deficit. That is when the draft 2026-2027 budget is due and program cuts could be decided.

“We certainly believe in truth and transparency and that is always going to be the guiding standard for our presentation,” Muns said.

Muns said the district is working with its internal audit team and the board audit committee, though a timeline for those audits has not been shared.

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