Lexington, Kentucky, November 14, 2025
State Auditor Allison Ball will not pursue state funds for an audit of Fayette County Public Schools, as the district has decided to carry out its own examination amid a $16 million budget deficit. Ball has expressed concerns about the district’s decision to proceed with a separate audit, urging collaboration for better fiscal accountability. The district’s financial challenges have prompted calls for transparency and effective management, following a history of mismanagement highlighted in past audits.
Lexington, Kentucky – State Auditor Declines Funding for Fayette County Schools Probe
State Auditor Allison Ball has announced she will not seek state funds for an examination of Fayette County Public Schools (FCPS), following the district’s decision to conduct its own audit amid a projected $16 million budget deficit.
District’s Independent Audit Decision
In September 2025, the Fayette County Board of Education voted 3–2 to approve the district’s fiscal year 2025–26 working budget and requested that Superintendent Demetrius Liggins present a plan to restore the district’s contingency to 6 percent. The meeting drew lengthy public comment focused on the district’s recent budget shortfalls and staffing changes. Dozens of residents, teachers, and union supporters called for an external forensic audit; several cited a commonly repeated figure of $16 million described by speakers as a budget shortfall or gap.
Auditor’s Response and Recommendations
Auditor Ball expressed concerns over the district’s decision to initiate an audit that mirrors her office’s planned examination. She urged district leaders to reconsider their approach and collaborate with her office to ensure responsible use of taxpayer funds. Ball emphasized that conducting a separate audit could reinforce public perceptions of wasteful spending within the district.
Background on the Budget Deficit and Financial Management
The $16 million budget deficit has prompted investigations into FCPS’s financial practices. Ann Sampson-Grimes, the district’s executive director of budget and financial planning, alleged retaliation after raising concerns about financial mismanagement. She claimed that district leaders engaged in cover-ups regarding the budget shortfall and discouraged transparency.
State legislators have indicated they do not plan to provide financial assistance to FCPS during the 2026 budget year, leaving the district to address its projected deficit independently. To manage the shortfall, the district has implemented measures such as freezing hiring for all but essential positions, reducing travel and professional development costs, and exploring potential revenue through property sales.
Previous Audits and Financial Oversight
In 2014, a special examination of FCPS revealed chronic mismanagement of the district’s budget and finances, contributing to its financial instability. The audit found poor financial management, weak policies, and failed communications, leading to a weakened financial position for the district.
Auditor Ball’s office has a history of conducting audits to ensure fiscal responsibility within Kentucky’s educational institutions. For instance, in 2024, the office released an examination of the Kentucky Fire Commission, highlighting areas for improvement in financial oversight.
The current situation underscores the ongoing challenges FCPS faces in managing its finances and the importance of transparent and effective financial oversight to maintain public trust and ensure the district’s fiscal health.
Frequently Asked Questions (FAQ)
What is the projected budget deficit for Fayette County Public Schools?
The projected budget deficit for Fayette County Public Schools is $16 million.
Why did State Auditor Allison Ball decline to seek state funds for the FCPS audit?
Auditor Ball declined to seek state funds for the FCPS audit because the district decided to conduct its own audit, which she believes could reinforce public perceptions of wasteful spending.
What measures is FCPS implementing to address the budget deficit?
FCPS is addressing the budget deficit by freezing hiring for all but essential positions, reducing travel and professional development costs, and exploring potential revenue through property sales.
What were the findings of the 2014 audit of FCPS?
The 2014 audit of FCPS revealed chronic mismanagement of the district’s budget and finances, contributing to its financial instability. It found poor financial management, weak policies, and failed communications, leading to a weakened financial position for the district.
Is the Kentucky Auditor’s office involved in other audits of educational institutions?
Yes, the Kentucky Auditor’s office has conducted audits of other educational institutions, such as the Kentucky Fire Commission in 2024, highlighting areas for improvement in financial oversight.
Key Features of the Situation
| Feature | Details |
|---|---|
| Projected Budget Deficit | $16 million |
| District’s Response | Conducting its own audit |
| Auditor’s Recommendation | Collaborate with Auditor Ball’s office for the audit |
| State Legislators’ Position | No financial assistance planned for FCPS |
| Measures Implemented by FCPS | Freezing hiring, reducing travel and professional development costs, exploring property sales |
| 2014 Audit Findings | Chronic mismanagement of budget and finances, leading to financial instability |
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