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Fayette County School Board Addresses $16 Million Budget Shortfall

Discussion during the Fayette County School Board meeting about budget shortfall.

Lexington, Kentucky, September 9, 2025

News Summary

The Fayette County School Board has convened a special meeting to discuss a budget shortfall of $16 million for the upcoming school year. Board members will review the proposed budget, which has been adjusted to $827.2 million, down from $848.6 million. Superintendent Demetrus Liggins and other officials highlight community support’s importance amid concerns about financial management. Residents are worried about potential impacts on students, with discussions hinting at cost-cutting measures. The board will also consider changes to the property tax rate.

Lexington, Kentucky – The Fayette County School Board has called a special meeting to address a significant $16 million budget shortfall for the 2025-26 school year. The meeting is scheduled for Thursday at 5:30 p.m., where board members will discuss and review the budget details necessary for moving forward.

Superintendent Demetrus Liggins, along with Chair Tyler Murphy and Vice Chair Amy Green, has been involved in preliminary reviews of the district’s financial plans. While the proposed budget represents a decrease from the previous tentatively approved amount of $848.6 million to $827.2 million, the current proposed shortfall is viewed as lower than initially expected. However, the board will not be considering changes to the occupational license tax rate as part of this meeting.

Chair Tyler Murphy has emphasized the critical nature of community support throughout this budget process, affirming the necessity to focus on student achievement amidst the financial concerns. The meeting is structured to enable discussions regarding future budget planning but is not designed to include any formal decisions or action items at this stage.

Lexington residents have expressed their worries over the Fayette County schools’ financial condition, which has spurred public concern about potential negative effects on students and staff. A significant drop in the district’s contingency fund is projected, declining from $42 million to $26 million, exacerbating the existing budget concerns. Furthermore, expected cost-cutting measures such as hiring freezes, spending restrictions on non-essential items, and possible reductions in service days have emerged as necessary actions to address the budget crisis.

The school district has faced considerable public criticism regarding its financial management, contributing to the current shortfall. Deputy Superintendent Houston Barber highlighted the importance of careful navigation during this pivotal moment in the district’s financial history. Public comments during previous sessions revealed a damaged trust in the Fayette County Public School administration, indicating residents feel their concerns have not been adequately addressed.

In response to these financial uncertainties, State Representative Anne Donworth has called for an independent investigation into the school district’s fiscal challenges. This intervention reflects ongoing dissatisfaction among the community regarding the administration’s handling of budget matters. The board is also anticipated to examine its property tax rate, with discussions hinting at a potential decrease of approximately 1.1 cents per $100 of assessed value.

As the Fayette County School Board prepares for its special meeting, the future of the district’s financial strategy remains an issue of critical importance, with the focus heavily on establishing a budget that supports both educational quality and fiscal responsibility.

FAQ Section

What is the purpose of the Fayette County School Board’s special meeting?

The special meeting is intended to address a $16 million budget shortfall for the 2025-26 school year and discuss the district’s financial planning.

When is the meeting scheduled?

The meeting will take place on Thursday at 5:30 p.m.

How much is the budget shortfall?

The proposed budget reflects a shortfall of $16 million, which is lower than initially anticipated.

What measures are being considered to address the budget shortfall?

Potential cost-cutting measures include hiring freezes, restrictions on non-essential spending, and possible reductions in service days.

Has there been public concern regarding the district’s financial situation?

Yes, Lexington residents have raised concerns about the financial management of the schools, indicating a lack of trust in the administration.

What changes are being proposed for the property tax rate?

The board is expected to review its property tax rate, potentially decreasing it by approximately 1.1 cents per $100 of assessed value.

Key Features of the Fayette County Budget Discussion

Feature Details
Budget Shortfall $16 million
Previous Tentative Budget $848.6 million
Proposed Working Budget $827.2 million
Contingency Fund Projection Dropping from $42 million to $26 million
Potential Tax Rate Change Decrease of approximately 1.1 cents per $100 of assessed value

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Additional Resources

STAFF HERE LEXINGTON KY STAFF
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.

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