FCPS Superintendent Defends Spending Amid Ongoing Investigations
In a time of scrutiny and potential resignations, the Fayette County Public Schools (FCPS) is countering criticism regarding its financial management. In a recently released 28-page document, FCPS defends its spending amid ongoing investigations. The superintendent, Demetrus Liggins, and Board Chair Tyler Murphy are at the center of this controversy.
Addressing the Budget Shortfall
FCPS initially projected a budget shortfall of $16 million for the 2025-26 fiscal year. However, the district asserts that this gap is merely a planning figure. Instead of pursuing a rejected local tax increase, FCPS has implemented several measures to balance its budget. These include:
- Reducing the contingency fund from 6% to 3.9%
- Freezing spending across various departments
- Cutting district administration costs by $8.9 million
- Liquidating real estate assets
FCPS claims its current budget is balanced, emphasizing that there is no ongoing shortfall.
Investigations and Accountability
The district faces scrutiny from state lawmakers and community organizations. An attorney general ruling invalidated a board decision to raise occupational taxes due to inadequate public notice. Furthermore, discrepancies concerning the contingency fund have been alleged, with feedback indicating it may be over $10 million less than reported.
FCPS attributes these discrepancies to several factors, including:
- Lower-than-expected salary estimates
- An unexpected increase of 179 staff members
- Higher costs for substitutes and employee benefits
Transparency in Spending
The district has responded to various spending inquiries. For example, Superintendent Liggins’ trip to Australia was necessary after an incident at a school. Additionally, a $52,000 leadership retreat and a $32,000 ice cream social were highlighted in the financial defense, with the latter being funded entirely by local donations.
Governance and Structure Changes
In an effort to improve oversight, FCPS has restructured its Audit Committee. This new committee will consist of external experts in finance and auditing. Additionally, the Board Finance and Accountability Committee will engage with community stakeholders to review financial conditions and provide quarterly updates.
Independent Audit Results
An annual independent audit reported some technical irregularities but maintained a “clean, unmodified opinion,” the highest assurance available. FCPS plans to work with Weaver and Tidwell, a Texas-based accounting firm, for an external operational audit following concerns from the State Auditor’s office regarding audit overlap.
Concerns Over Retaliation and Whistleblowing
FCPS’s budget director has filed a whistleblower lawsuit, alleging retaliation for voicing concerns about financial mismanagement. As the district navigates these challenges, it emphasizes its commitment to transparency and accountability in financial operations.
Commitment to Staff Compensation
Despite these financial challenges, FCPS remains dedicated to competitive teacher compensation. It was the first Kentucky district to offer salaries above $50,000 and fully staffed essential positions for the upcoming school years.
As investigations continue, Fayette County Public Schools stresses that budgeting decisions are guided by a commitment to fiscal integrity and student achievement. The district invites the community to access details about financial operations and engage in ongoing discussions to foster trust and transparency.
