LOUISVILLE, Ky. - The Jefferson County Board of Education (JCBE) has received the results of an independent fiscal assessment conducted by Plante Moran, identifying systemic factors that contributed to recent budget shortfalls and providing a roadmap for long-term financial stability.
The assessment, approved by the Board on October 14, 2025, evaluated Jefferson County Public Schools’ (JCPS) fiscal administration and related governance activities that occurred during fiscal years (FY) 2022 through 2025. The objectives of the assessment were to:
Identify systemic and situational factors contributing to the District’s budget shortfall.
Assess the effectiveness of fiscal administration practices.
Analyze roles, responsibilities, and oversight exercised by District leadership and the Board in financial governance.
Benchmark JCPS’s practices against comparable peer school districts.
Develop actionable recommendations to strengthen financial management and sustainability.
Assess long-term solvency risks and mitigation strategies.
The report identified 13 specific findings, with eight categorized as “High Priority,” requiring immediate attention. Primary themes include:
Assigned monitoring and oversight: A lack of standardized framework for financial monitoring across the Central Office departments has led to inconsistent budget management and weakened accountability.
Budget development and strategic alignment: Budget processes often relied on “rolling forward” prior year allocations rather than aligning spending with Board and administrative strategic priorities. Return-on-Investment (ROI) analysis for programs, projects, and initiatives has not been consistently integrated into budgeting decisions.
Reliance on non-recurring funds: The District historically used temporary or nonrecurring funding sources, such as ESSER and contingency funds, to expand staffing and programs without establishing long-term sustainability plans.
Budgetary decision-making authority and governance: Financial Services’ authority was limited in practice, with major budgetary decisions often made without a formal process for collective senior leadership review.
Plante Moran proposed several high-priority recommendations for JCPS to consider, including:
Updating Board policies: Updates should clearly distinguish the Superintendent's daily administration role from the Chief Financial Officer’s (CFO) budgetary control role to ensure proper checks and balances.
Developing a multi-year strategic financial plan: This 3-5 year plan should translate the District’s strategic goals and Board priorities into measurable spending commitments.
Formalizing budget ownership: Designate responsible budget managers for every Central Office department/division and develop written guidelines that outline budget development and monitoring expectations for all budget managers.
“While this assessment highlights challenges in our past fiscal practices, it also provides us with an invaluable blueprint for our future,” said Superintendent Dr. Brian Yearwood. “We requested this independent review because our students and taxpayers deserve transparency. We are not just acknowledging these findings; we are using them to reshape how JCPS operates.”
To ensure long-term fiscal responsibility, JCPS will implement the report’s recommendations, focusing on modernizing financial forecasting models and resolving identified operational deficiencies.