Liggins Provides Update on District's Financial Position

Message to Staff & Families:

As promised in my last communication, I am writing this evening with an update on the district’s current financial position and development of the 2025-26 working budget.

We now have more complete calculations from the 2024-25 fiscal year, and although the numbers are not yet audited, we feel confident that we will end the year with a carry-forward balance of $26.3 million.

Based on this updated picture of revenue and expenses from last year, my leadership team revisited previous projections and allocations to identify additional reductions at the district level. I want to be clear that every single expenditure is being evaluated with heightened scrutiny.

During a special-called meeting of the Fayette County Board of Education this evening (Aug. 28), I presented a path forward that:

• Balances the budget without increasing the occupational license tax rate,

• Minimizes impact to school-level investments, and 

• Continues to provide excellent educational opportunities that lead to increased achievement for our students.

The voices of our Budget Solutions Work Group and community members were not only heard, but also heeded. My recommendations this evening addressed the originally projected $16 million budget shortfall by:

• Freezing all hiring except for classroom positions and bus drivers, for a savings of $2 million

• Restricting overnight professional learning at the district level, food for district-sponsored activities and meetings, furniture replacement at the district level, the practice of sponsoring tables at community-sponsored events, and the purchase of items for districtwide employee appreciation for a total reduction of $1 million

• Eliminating the executive coach for the superintendent for a savings of $25,000

• Implementing an additional $2 million in cuts to district-level departmental budgets

• Discontinuing non-traditional instructional days, which count as virtual school days. Since cafeterias are closed and employee contracts are already in place, we are still responsible for paying Child Nutrition staff without the offsetting revenue of federal meal reimbursements. (This helps reduce the shortfall in the Child Nutrition Fund, which ultimately impacts the general fund.)

• Reassigning staffing allocations overages ($1.2 million). School districts in Kentucky follow a process of adjusting school staffing based on actual enrollment after the school year begins. In most school districts, this results in moving staff from schools where enrollment is lower than projected to those where enrollment is higher than projected. Past practice in FCPS had been to look at numbers after the 10th day of school and absorb the cost of up to one position when a school was overstaffed. This year, we will wait two and a half weeks longer to provide every opportunity for student enrollment to settle. At the end of that time, as in years past, schools will have the option of purchasing those positions with school funds. Any other remaining overstaffed positions will be reassigned and will keep their current rate of pay. This will help reduce substitute costs and ensure our schools are accurately staffed.

These changes, which do not require board approval, will equate to at least $6 million in reductions. This evening, I also asked board members to provide input about the possibilities of selling property, raising school meal prices, or moving select litigation responsibilities in-house. Based on their feedback, no changes to meal prices will be recommended. 

We will continue to look for savings in legal expenses while also exploring the potential sale of the former Southside Technical Center. With the opening of The HILL, the building is no longer serving students, and an appraisal conducted in 2024 valued the property at $8.9 million. 

In addition, we will further examine options suggested by board members, which include reducing staff at the John D. Price building,  implementing furlough days, and engaging the community in offsetting student meal costs.

I continue to extend my gratitude to our board and our community for their voices in this matter. Another opportunity for community input will be available during the previously planned public hearing on Friday, Sept. 5 at 5:30 p.m. at the John D. Price building located at 450 Park Place. More details about this meeting will be shared in the coming days.

I want to close by reassuring you that we are not only balancing this budget, but we are building stronger, more transparent processes to guarantee that future budgets are accurate, responsible, and fully aligned with board and community expectations.

In partnership, 
Demetrus Liggins, Ph.D.
Superintendent, Fayette County Public Schools