What did KY auditor’s examination reveal about state’s largest school district ?

Kentucky Auditor Allison Ball on Tuesday released a special examination of the Jefferson County Public School District, “highlighting needs for improvement across the district,” a news release said.

Ball’s office also is currently conducting a special examination of Fayette County Public Schools where officials recently said that finances have been misstated for years.

Ball’s review of JCPS was mandated by House Bill 6, passed in the 2024 Regular Session of Kentucky’s General Assembly. The review was for the district’s overall performance and operations.

The auditor’s office worked side-by-side with an independent education consulting entity to conduct an extensive examination of JCPS’ functions covering the time period from July 1, 2022, to June 30, 2025, Ball’s Tuesday’s news release said.

“From the highest levels of the district, we see a lack of communication and goal setting; there has been no cohesive plan for several years now,” Ball said. “And in each working budget report from FY22 to FY26, expenses exceeded revenues. Anyone paying attention could see that JCPS’ financial picture was painted in red and was a roadmap to failure. Given that the School Board approved the maximum property tax increase every year over the last decade, we know it’s a spending, not a revenue, problem.”

Over a 20-year period, JCPS’ per-student revenue rose by 62%; in the classroom, average teacher salaries increased by 12%.

“The examination also found a culture of fear of retaliation against teachers if they spoke up against leadership; a fear of being targeted and denied opportunities,” the news release said.

“JCPS’s teachers work hard every day, and they should feel supported and valued by the district. I’m grateful for their willingness to show up for Louisville’s students, even in the face of countless challenges outside of their control,” Ball said.

The district’s Black students continue to deal with issues that leave them behind, according to the news release. Black students represent the largest racial group in the district, with a plurality of 35%.

Ball’s office also took aim at diversity, equity and inclusion in JCPS. DEI has become a major target for Republicans both in Kentucky and nationwide in recent years.

The legislature took aim at DEI on college campuses last year and a GOP lawmaker introduced a bill this year seeking to ban DEI at public K-12 schools.

President Donald Trump’s administration has also pushed against DEI in schools.

“Despite the district losing $9.7 million in grant funding, JCPS continues to put its federal funding in jeopardy by maintaining its use of DEI (Diversity, Equity, and Inclusion,” Ball said. “The district needs to assess whether these programs and positions are actually serving the students they are intended for.”

“JCPS is the largest school district in Kentucky. Whether a school district serves 100 students or 100,000, Kentucky’s children must be given the opportunity to succeed and chase the American Dream after graduation. JCPS has been receptive to these findings, and I’m optimistic they will use this special examination as an opportunity to grow and improve outcomes for all students,” Ball said.

Jefferson County Schools officials said in response they appreciated the state auditor’s examination. On multiple points in Ball’s examination, JCPS officials responded that they had “actions” completed or underway to address issues.