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JCPS considering taking out line of credit to pay staff amid budget shortfall

JCPS logo on side of building.
WLKY
JCPS logo on side of building.
SOURCE: WLKY
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Updated: 5:30 PM EDT May 5, 2026
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JCPS considering taking out line of credit to pay staff amid budget shortfall
WLKY logo
Updated: 5:30 PM EDT May 5, 2026
Editorial Standards
Jefferson County Public Schools is still figuring out solutions to address a $188 million budget shortfall, and taking out a line of credit could be an option.District officials are set to discuss the proposed line of credit at the Audit and Risk Management Advisory Committee meeting on Wednesday and the JCPS board meeting next week.Officials with JCPS said the strategy would "provide financial stability during times of anticipated low cash flows this coming fall."However, they also say the line of credit may not be needed depending on property tax infusion slated for mid-November."For an organization our size, it is a responsible strategy to provide assurance of available cash at a nominal cost relative to our bi-weekly payrolls, each of which exceed $40 million. The amount of the line of credit will be determined in collaboration with our fiscal agents after we close this fiscal year June 30 and we have a clearer picture of our forecast for this fall," JCPS spokesperson Carolyn Callahan said in a statement.Wednesday's meeting will be at 2 p.m.Last month, superintendent Brian Yearwood said that raising property taxes is not off the table either to address the deficit. So far, JCPS has outlined $132 million in cuts for next year's budget.The district's tentative budget is due May 30.

Jefferson County Public Schools is still figuring out solutions to address a $188 million budget shortfall, and taking out a line of credit could be an option.

District officials are set to discuss the proposed line of credit at the Audit and Risk Management Advisory Committee meeting on Wednesday and the JCPS board meeting next week.

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Officials with JCPS said the strategy would "provide financial stability during times of anticipated low cash flows this coming fall."

However, they also say the line of credit may not be needed depending on property tax infusion slated for mid-November.

"For an organization our size, it is a responsible strategy to provide assurance of available cash at a nominal cost relative to our bi-weekly payrolls, each of which exceed $40 million. The amount of the line of credit will be determined in collaboration with our fiscal agents after we close this fiscal year June 30 and we have a clearer picture of our forecast for this fall," JCPS spokesperson Carolyn Callahan said in a statement.

Wednesday's meeting will be at 2 p.m.

Last month, superintendent Brian Yearwood said that raising property taxes is not off the table either to address the deficit. So far, JCPS has outlined $132 million in cuts for next year's budget.

The district's tentative budget is due May 30.

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