Jefferson County board approves tentative $1.8 billion FY2026–27 budget, adopts multiyear deficit plan

The Jefferson County Board of Education on May 12 approved a tentative FY2026–27 budget that district staff described as a multiyear plan to address an estimated recurring shortfall of roughly $40 million.

Interim Chief Financial Officer Tom Aberly told the board the general fund operational budget for FY2026–27 is about $1.8 billion, with total district fund revenue of roughly $2.3 billion when special revenues and state-paid benefits are included. “This budget must be approved by May 30th,” Aberly said as he reviewed revenue drivers and enrollment trends.

The administration and budget staff said enrollment declines and state funding dynamics will reduce SEEK revenue and that the district has taken about $115 million in recurrent reductions across central office, district-managed school supports and flexible school funds. Dr. Jason Dietri, the executive administrator of budget, presented a five-year forecast showing the unassigned fund balance dipping over the next two to three years and rebounding by 2030–31 if the district maintains the current course of spending controls and revenue assumptions.

Dr. April Lee, who addressed contingency and cash-flow questions, cautioned against treating contingency as available cash. “It is not $100 million sitting in the bank,” she said, explaining contingency reflects the difference between budgeted and forecasted expenses and is part of the multi-year financial plan.

The budget presentation flagged a projected near-term cash-flow risk in October and November before property-tax receipts are deposited, and staff told the board they may use a short-term tax-anticipation instrument (line of credit) to bridge low-cash months if necessary. Outside auditors and the district—iscal agent briefed trustees on the mechanics of that potential borrowing.

Board members questioned how the cuts and the budget would affect programming tied to the district—racial-equity commitments and choice zones and pressed staff for measurable goals and transparency. Several trustees emphasized a need to protect classroom-facing personnel and services while closing the fiscal gap.

The motion to approve the tentative FY2026–27 budget was made by Mr. Bass and seconded by Miss Duncan; the board carried the motion by voice vote. The tentative budget will be revised into a working budget for formal adoption later in the fiscal cycle.

What happens next: staff will finalize the working budget, continue the five-year forecasts, and return to the board with budget-to-actual reporting and any recommended uses of contingency or short-term borrowing. The board and administration said they will also provide more disaggregated budget and program metrics to connect dollars spent with student outcomes.