Fayette superintendent has ‘zero concerns’ about $817 million working budget for 2024-25

The Fayette County Board of Education on Monday approved an $817 million working budget for the 2024-25 school year.

“There’s no more important investment in our future than in our kids and their education, and we have a budget document that reflects that,” said Board Chair Tyler Murphy.

Instruction, instructional materials, supplies and equipment, including technology, account for $392.5 million, district officials said.

The district is in a great cash position—within $3 million of where it was at this time last year, officials said. That is an important consideration because federal funds called ESSER aimed at overcoming COVID are going away.

Elementary and Secondary School Emergency Relief, known as ESSER, is a federal program that provided pandemic relief and recovery funding for K-12 schools. The program was created by the U.S. government in response to the COVID-19 pandemic

“There’s absolutely zero concerns with this budget,” said Fayette Superintendent Demetrus Liggins.

But not everyone agrees that there’s nothing concerning about the budget.

The tentative budget approved by the board earlier projected $60 million for the beginning balance or fund balance and the working budget projects $42 million.

The lowered projection is caused by investment in classroom teacher and staff support, a higher percentage of staff retained compared to previous years.. More tenured staff were recruited, resulting in an increase in overall payroll costs

Board member Amanda Ferguson voted against approving the budget.

“I am concerned that budgeted general fund expenses are less than what was spent in (fiscal year) ‘24 and that more of it has to be restricted to contingency ($43,605,000) than is in the fund balance ($42,000,000). Less of the budget is available to spend but no cuts have been made,” she told the Herald-Leader Tuesday morning.

“Overall, salaries are down $4.89 million from last year, but again, there have been no cuts and the step increase alone is $6.7 million,” Ferguson said.

“In general, my apprehension is that the district is underestimating expenses due to a severely reduced fund balance, “ she said.

Property assessment increased, which offset the overall state funding increase. Inflation for many district services and products and tax for collection slowed, officials said.

The overall payroll investment in classroom teacher and staff support has been successful. Metrics, such as improved test scores indicate that students continue to excel, reflecting positively on the classroom experience, district officials said.

Additionally, the district attributes the higher retention rate and recruitment of more experienced teachers directly to the investment made in compensation, which positively impacts student outcomes

Given this is the district’s first year without ESSER funding and year two of implementing historical raises for teachers and staff, there is a need for a financial reset to maintain a strong financial standing, district officials said.

Overall, the district is in a sound financial position. It has continued lean practices for budgets and use of funds, is maximizing the use of current year funds on current year students and reimagined the use of current grant funds and expanding grant funding where feasible, officials said

Partnerships with universities have addressed critical shortages in specific positions within the district, with 125 employees currently pursuing additional certifications and endorsements, they said.

Fayette schools has increased the number of early childhood certified teachers, endorsed educators in English Learners, gifted and talented, and Special Education vacancies.

Health supports in schools are improving academic performance by supporting physical, mental, social, and emotional health.

Fayette County Public Schools is on track to expand the dual high school and college credit program to enroll 100 students in three years to attain their Associate Degrees. In spring 2023, 383 students were enrolled, with summer enrollment reaching 156.

The board has decided to invest in competitive salaries to attract and retain high-level talent. They developed a two-year plan to address hourly and salaried staff salaries, based on external compensation studies.

During the 2023-2024 school year, the board raised the starting teacher salary above $50,000 and classified the hourly minimum wage to $16.17.

The Grow Your Own strategy aims to recruit, develop and retain diverse educators in Fayette County Public Schools.

A higher percentage of staff were retained compared to previous years, and more tenured staff were recruited, resulting in an increase in overall payroll costs

Property assessment increased, which offset the overall state funding increases. Tax collection slowed

The overall payroll investment in classroom teacher and staff support has been successful, district officials said.

It is also reasonable to anticipate that the strategies put in place to address the decrease in the fund balance could create future opportunities for the board to enhance previous investments—and make new ones—as needed.

Overall, the district is in a sound financial position and is reaping the benefits of its investments. It has continued lean practices, officials said.

Expenditures breakdown

District officials break down the budget this way:

• Student Support Services including guidance and health and logistical support to facilitate and enhance instruction: $41.3 million.
• Instructional Staff Support Services including the improvement of instruction and curriculum development, library and media services, and student assessment: $31.6 million.
• District Administrative Support Services associated with the overall general administration and executive responsibility for the district, including the Superintendent, Board of Education, legal services, and tax assessments: $8.1 million.
• School Administrative Support Services including those performed by the principal, assistant principals, and other assistants in directing and managing the operation of a school and instructional activities : $38.1 million
• Plant Operations and Maintenance including those allocated to keep school facilities and grounds safe, clean, comfortable, and in working condition for students, staff, and families. It includes the costs of repairs and utilities, as well as security for campuses: $51.9 million.
• Business Support including human resources, payroll, and accounting functions, as well as printing, postage, and telecommunications: $34 million
• Student Transportation including all expenditures related to transporting students to and from school, including drivers, monitors, mechanics, buses, bus maintenance, and fuel: 25.7 million
• Community Service: Expenditures for supporting Family Resource and Youth Service Centers: $616,227
• Debt service: related to the long-term debt of the school district, including payments of both principal and interest: $1.6 million
• Other Instructional: Direct services for students not included in previous account functions: $883, 879
• Fund Transfers including expenditures moved between different District funds: $800,000
• Contingency: $43.6 million. These are funds that are restricted, held in reserve in case of unexpected emergencies. The district’s policy is to hold 6.5% in reserve, well above the state minimum of 2% due to the district’s size and scope of supports.

This story was originally published September 25, 2024 at 4:00 AM.