Fayette County, Kentucky, October 7, 2025
News Summary
Fayette County Public Schools are in the spotlight due to controversial lobbying contracts amidst a budget crisis. A three-year contract with Piper-Smith LLC has raised concerns over the use of public funds as the district faces a multi-million-dollar deficit. Community backlash includes calls for resignations from district leaders over the proposed tax increase initiative, which was ruled illegal by the Kentucky Attorney General. The situation emphasizes the need for transparency and accountability in public spending.
Fayette County, Kentucky – Controversy Surrounds School District’s Lobbying Contracts Amid Budget Crisis
Fayette County Public Schools has come under fire for its recent decision to engage the services of a lobbying firm, amid significant budget challenges. The school district entered a three-year contract with Piper-Smith LLC, which is based in Lexington, in August 2023. This contract pays the firm $60,000 annually to lobby the Kentucky state government on behalf of the school district. Meanwhile, Superintendent Demetrus Liggins approved an additional contract in May 2023 for a public awareness campaign related to a proposed 50% increase in the school district’s occupational license tax.
This tax increase was deemed necessary to address a multi-million-dollar budget deficit within the district. The second contract, which amounted to $38,000, did not require formal approval from the five-member school board because it was below the $40,000 threshold, allowing Liggins to issue it independently. Additionally, Piper-Smith received further payments of $18,000 on June 10 and $20,000 on July 11 for unspecified services, further complicating the financial implications of the contracts.
The campaign initiated by Piper-Smith aimed to promote the tax increase through various strategies, including social media, opinion pieces, letters to the editor, yard signs, and bumper stickers. It was slated to run until September 2025 and had initial efforts focused on developing strategy and messaging. However, on June 4, 2023, the Kentucky Attorney General ruled the proposed tax increase illegal due to inadequate public notice prior to the vote, which prompted Liggins to withdraw the initiative.
In light of growing backlash from the community, which included calls for Liggins’ and board chairman Tyler Murphy’s resignation over the budget crisis and the tax hike attempt, Piper-Smith refocused its efforts towards managing reputation issues linked to Liggins. Critical media coverage and discontent among state lawmakers regarding Liggins’ leadership have been forwarded to school officials by Piper-Smith as part of their contracted services.
Miranda Scully, the school district spokesperson, clarified that Piper-Smith’s role extends beyond just the tax issue to include stakeholder engagement and community outreach. Nonetheless, the school board has faced rigorous scrutiny regarding its administrative expenditures, including insufficient contingency funds for emergencies. Public sentiment has also intensified against Liggins regarding certain high-profile spending decisions, including a notable $7,000 airfare expense for a trip to Australia.
State Representative Vanessa Grossl has indicated plans to propose legislation aimed at prohibiting K-12 districts from hiring private lobbyists in future assemblies, raising key concerns over the perceived inequalities among school districts that such practices might exacerbate. The controversy surrounding Fayette County’s lobbying contracts not only highlights budgetary issues but also poses significant questions about the accountability of school administrators and the use of public funds for lobbying activities.
With increasing demands for transparency in government spending, the situation underscores the importance of community involvement and oversight in school financial matters.
FAQ
What is the purpose of the Piper-Smith contract with Fayette County Public Schools?
Piper-Smith LLC was contracted to lobby the Kentucky state government on behalf of Fayette County Public Schools and to run a public awareness campaign regarding a proposed increase in the occupational license tax due to budget concerns.
Why was the proposed tax increase deemed illegal?
The Kentucky Attorney General ruled the proposed tax increase as illegal due to a lack of adequate public notice prior to the vote, which is required by state law.
What are the community’s concerns regarding these contracts?
Community backlash revolves around the budget crisis, the use of public funds for lobbying, and excessive administrative spending, leading to calls for the resignation of district leaders.
Key Features of Fayette County Public Schools Lobbying Contracts
| Feature | Details |
|---|---|
| Contract Duration | Three years |
| Annual Contract Amount | $60,000 |
| Additional Campaign Contract | $38,000 for public awareness |
| Payments Beyond Contracts | $18,000 and $20,000 additional payments |
| Proposed Tax Increase | 50% increase in occupational license tax |
| Community Response | Calls for resignations and increased scrutiny of spending |
| Legislative Response | Proposed ban on K-12 district lobbyists |
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Additional Resources
- Forward Kentucky
- Kentucky.com
- Kentucky Lantern
- LEX 18
- Wikipedia: Lobbying in the United States
- Encyclopedia Britannica: Tax
Author: STAFF HERE LEXINGTON KY STAFF
The LEXINGTON STAFF WRITER represents the experienced team at HERELexingtonKY.com, your go-to source for actionable local news and information in Lexington, Fayette County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Woodland Art Fair, Crave Food and Music Festival, and Railbird Festival. Our coverage extends to key organizations like Commerce Lexington and Blue Grass Community Foundation, plus leading businesses in education, manufacturing, and technology that power the local economy such as University of Kentucky, Toyota Motor Manufacturing, and Lexmark. As part of the broader HERE network, including HEREBowlingGreen.com and HERELouisville.com, we provide comprehensive, credible insights into Kentucky's dynamic landscape.
