By Josie Simpson 

University of Louisville Provost Katie Cardarelli revealed the end of U of L’s operational partnership with the Early Learning Campus was due to a multi-million dollar deficit. 

She discussed the details in an interview with The Cardinal on Feb. 27.

U of L announced on Feb. 16 that it would withdraw its managerial role at the campus at the end of June. Since then, families connected to the university formed a coalition demanding budget transparency, an “immediate meeting” with the U of L administration and the continuation of the partnership. 

The coalition ultimately withdrew its request after Cardarelli said the partnership could not continue. However, the coalition agreed to meet with the U of L administration if “all options are truly on the table.” 

“You know, that’s unfortunate, because I really did welcome the opportunity to sit down with the families and provide this information,” said Cardarelli. 

The Growing Deficit

According to Cardarelli, U of L ended its partnership with the ELC for financial reasons. 

The ELC has operated at a deficit for the past five fiscal years, with losses increasing over time. The university used approximately $1.2 million in state funds to cover the deficit in fiscal year 2025 alone. In the last five years, the campus has reached a deficit of approximately $4.5 million. 

To maintain high accreditation, there is a required ratio of childcare providers to students. This may have contributed to the deficit. But, as potential state budget cuts loom, Cardarelli did not see using those limited funds for growing losses as sustainable. 

“The reality is that when I look at $1.2 million, just in the last fiscal year, I see funds that could and should be going to student scholarships,” Cardarelli said. 

When asked for comment, the ELC Parent Coalition pointed to other areas of the university that operate at a deficit. Specifically, they noted the athletics department, which had a $50.8 million deficit in 2025.

A Decade of Dead Ends

Families have asked when the university decided to end operational support for the ELC. Discussions to end operational support for the ELC span more than a decade. Previous financial task forces and increased tuition and fees in 2024 and 2025 were two attempted solutions.

Cardarelli began serving in this role in March 2025. Not long after stepping into the position, she received a briefing on the upcoming fiscal year budget. This is when she became aware of the deficit within the College of Education and Human Development, which oversees the ELC. 

U of L and Family Scholar House renegotiate their contract every year, and ultimately, the university decided to step back from management. 

“This deficit was not going to reverse,” Cardarelli said. 

The ELC Parent Coalition said other routes could have been taken to avoid closure. They suggested tuition increases. As mentioned above, the university increased tuition and fee costs in both 2024 and 2025. 

Resources for Displaced Families

The ELC serves around 150 children, about 100 of whom are the children of U of L employees. 

To assist families, Cardarelli and education school Dean Tabitha Grier-Reed referred to “Thrive by Five,” a city-affiliated program that helps parents locate local childcare providers. The program director shared that a high-quality facility near campus has openings. Still, Cardarelli acknowledges that finding childcare on short notice remains difficult. 

“I am deeply sorry for the challenges that our U of L families are facing now,” said Cardarelli. “I don’t, for a heartbeat, believe that it is easy to find alternative, high-quality childcare that’s relatively close, and has open slots.” 

The ELC Parent Coalition thought the efforts showed “little sympathy” for their situation. They proposed more lenient remote work policies or additional PTO for affected U of L families to further address the challenges. 

Impact on ELC Staff and Student Employees

As a result of the partnership ending, dozens of employees will lose their jobs. Human Resources employees met with the ELC employees to discuss alternatives and provide additional support during this transition. 

“We had to pay a lot of attention to the fact that we had employees who were going to be part of a reduction in force,” said Cardarelli. 

One of these alternative resources is financial retention incentives, which will help employees and ensure staffing requirements are met through June. University HR policies also give affected individuals priority when applying for other campus positions 

Cardarelli, Grier-Reed and the Vice President for Human Resources, Darrell Clark, have been discussing support efforts specifically for students who work at the campus. 

Future Partnership with Family Scholar House

Although the university is stepping back from management at the ELC, it will continue to honor its 50-year lease agreement with Family Scholar House. Under this agreement, Family Scholar House can operate the ELC on university-owned land for one dollar per year. 

The university still sustains a good relationship with the Family Scholar House and will continue exploring other opportunities with the non-profit. 

Cardarelli has a public health background and emphasizes the effect early childcare has on young people. However, she said that when you serve in a leadership role, you have to make decisions that are not popular. 

“They may counter the things that are important to you,” said Cardarelli. “But at the end of the day, I have to make the decisions that I think are right for the academic side of the house. These are state funds that should be going to our core mission, and providing childcare is not our core mission,” said Cardarelli. 

The ELC Parent Coalition refuted the idea that childcare is not important for the academics of a university. 

“For parent-students, for parent-researchers/educators, and for parent-staff, well-being and productivity are necessary components for academic success,” said the coalition. 

Photo by Jai’Michael Anderson / The Louisville Cardinal