Lexington, Kentucky, October 4, 2025
News Summary
Fayette County Public Schools has hired Piper-Smith LLC to promote a controversial 50% tax increase to address a budget shortfall. The $60,000 contract, intended to manage public support for Superintendent Liggins, faced challenges after the Attorney General deemed the proposal illegal due to inadequate public notice. Community discontent has surged, prompting scrutiny over the district’s financial management and calls for resignations from Liggins and board chairman Tyler Murphy amid ongoing audits and budget deficits.
Lexington, Kentucky – Fayette County Public Schools has engaged Piper-Smith LLC, a Lexington-based marketing and lobbying firm, to support a contentious tax increase intended to address a significant budget shortfall within the district. The $60,000 annual contract, signed in August 2023, aims to promote a proposed increase in the occupational license tax by 50% and to bolster the reputation of Superintendent Demetrus Liggins.
The tax increase was deemed essential by Liggins to mitigate a multi-million-dollar deficit the district is facing. However, a particular contract, valued at $38,000 and aimed at a “public awareness campaign” regarding the tax hike, was approved in May without school board oversight due to its under-$40,000 value, allowing Liggins to authorize it independently.
Payments to Piper-Smith included $18,000 on June 10 and $20,000 on July 11, in addition to their regular lobbying fees. The firm’s efforts included utilizing social media, crafting opinion pieces, displaying yard signs, and distributing bumper stickers to rally public support. By mid-June, however, the campaign faced difficulties when Kentucky Attorney General Russell Coleman declared the attempted tax increase illegal, citing insufficient public notice preceding the board’s vote on May 27.
Following the ruling, the school board opted to withdraw its tax increase proposal amidst a wave of public discontent over the district’s financial management. Community members voiced their frustrations about both the tax hike and the previously unannounced budget deficit, which is currently subject to state audit. This atmosphere of turmoil has led legislators to call for the resignations of Liggins and board chairman Tyler Murphy.
Piper-Smith has since shifted focus toward managing Liggins’ public image following the failed tax proposal. The firm has communicated various critical comments from legislators to Liggins to help craft counter-statements aimed at managing public perception.
Compounding the issues, Liggins’s compensation package totals $381,767, causing scrutiny over the district’s handling of its budget and administrative costs. An internal assessment revealed Fayette County Public Schools has repeatedly exceeded financial projections, with overspending incidents occurring for three consecutive years, raising alarms among financial experts regarding its fiscal management capabilities.
Despite these challenges, district spokeswoman Miranda Scully claimed that the ongoing partnership with Piper-Smith remains crucial in directing public attention to the district’s daily requirements while maneuvering through financial obstacles. Meanwhile, board chairman Tyler Murphy indicated the necessity to delve deeper into Piper-Smith’s contractual details in light of the developing situation.
Internal communications revealed attempts to combat public misconceptions about administrative spending and to foster improved communication with the community, aiming to restore trust in the district’s decision-making processes.
Community Responses
Public sentiment regarding Fayette County Public Schools’ financial decisions is at a boiling point. The district’s continuous budget deficits and attempts to raise taxes have led to a significant backlash. Community members are expressing anger not only towards the proposed tax but also towards the undisclosed budget issues that have now come to light. The ongoing internal audit may bring further scrutiny to the district’s financial practices.
Conclusion
The situation in Fayette County Public Schools presents a complex intersection of financial management, public relations efforts, and community trust. As the district navigates these challenges, the future viability of the proposed tax increase and the ongoing scrutiny of its leaders remains uncertain.
FAQ Section
What is the purpose of the tax increase proposed by Fayette County Public Schools?
The proposed tax increase aims to address a significant multi-million-dollar budget deficit faced by the district.
Who is Piper-Smith LLC and what role are they playing?
Piper-Smith LLC is a Lexington marketing and lobbying firm contracted by Fayette County Public Schools to promote the tax hike and manage the public image of Superintendent Demetrus Liggins.
What happened after the Attorney General ruled the tax increase illegal?
The school board withdrew the tax increase proposal following the ruling due to public backlash over the budget deficit.
Why is there concern over Superintendent Liggins’s compensation?
Concerns have been raised regarding Liggins’s compensation, totaling $381,767, amidst ongoing budget deficits and financial mismanagement issues within the district.
Key Features Summary
| Feature | Details |
|---|---|
| Engagement of Piper-Smith LLC | Contract for $60,000 annual lobbying services signed in August 2023. |
| Tax Increase Proposal | Proposed 50% hike in occupational license tax to address budget shortfall. |
| Legal Ruling | Kentucky Attorney General ruled proposed tax increase illegal due to public notice issues. |
| Community Backlash | Public anger regarding tax increase and undisclosed budget deficit. |
| Superintendent’s Compensation | Liggins’s package totals $381,767 amidst financial scrutiny. |
| Financial Oversight | District has exceeded budget projections for three consecutive years. |
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Additional Resources
- Kentucky.com: Fayette County Schools Tax Increase
- The Asbury Collegian: FCPS Under Scrutiny for Inflated Spending
- Kentucky Lantern: AG’s Ruling on FCPS Tax Vote
- LEX18: FCPS Approves Tax Increase
- Spectrum News1: Attorney General on School Tax
- Wikipedia: Taxation in the United States
- Google Search: Fayette County Public Schools
- Google Scholar: Fayette County Public Schools Tax Increase
- Encyclopedia Britannica: Tax
- Google News: Fayette County Schools Financial Management
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