FCPS Superintendent Defends Spending Amid Ongoing Investigations
Fayette County Public Schools (FCPS) recently provided a detailed financial document to address scrutiny over its spending practices. This comes amid calls for the resignation of Superintendent Demetrus Liggins and Board Chair Tyler Murphy, alongside multiple ongoing investigations.
Superintendent Defends Spending Amid Investigations
In a 28-page report titled “Budget and Finance Facts,” FCPS emphasized that a projected budget shortfall of $16 million has been resolved. This figure was initially noted during the 2025-26 budget cycle as a planning estimate rather than an indication of missing funds. The district attributed financial challenges to broader issues faced by school districts across Kentucky and the United States.
Addressing the Budget Shortfall
- The shortfall was addressed without raising taxes, which the community had previously rejected.
- FCPS reduced its contingency fund from 6% to 3.9% and implemented a hiring freeze.
- Administrative cuts amounted to $8.9 million.
- The district also began selling off real estate assets, thus balancing the working budget.
Accounting Discrepancies
Concerns were raised regarding discrepancies in the district’s contingency fund. A school board member claimed that the fund balance was overstated by more than $10 million. In December, the audited figure of $28.4 million contrasted sharply with a projected balance of $42 million from May.
Factors contributing to this variance included unanticipated staffing increases and higher substitute teacher costs. In response, FCPS has restructured its budgeting to focus on actual salary costs and adopted zero-based budgeting practices.
Scrutinized Expenditures
The district faced public scrutiny over several expenditures:
- Superintendent Liggins’ trip to Australia exceeded budget due to unexpected flight changes related to safety concerns.
- A leadership retreat in July 2024 cost $52,000 and involved 112 principals and district leaders.
- An October 2024 ice cream social, costing $32,000, was funded entirely through community donations.
Governance and Audit Changes
To improve accountability, FCPS has restructured its Audit Committee to include five independent finance professionals. Additionally, a new Board Finance and Accountability Committee was formed to oversee financial reviews and assessments. Their inaugural meeting is scheduled for January 13.
The annual independent audit revealed two minor technical issues but nonetheless resulted in a clean report, the highest level of assurance. An external operational audit contract was awarded to Weaver and Tidwell, a Texas-based firm.
Ongoing Investigations
Amidst these developments, the district’s budget director filed a whistleblower lawsuit, claiming retaliation for exposing financial mismanagement. FCPS has engaged an independent investigator to assess the allegations against Liggins.
Despite financial challenges, FCPS highlighted its commitment to competitive compensation for staff, noting it has the highest starting teacher salary in Kentucky and is fully staffed in critical roles for the upcoming school years.
As FCPS continues to address budgetary concerns, it seeks to maintain transparency and restore public trust. The district encourages the community to access the information available on its transparency hub for further insights into financial management practices.
