‘We got that one wrong,’ FCPS superintendent says of tax proposal announcement

Fayette Schools Superintendent Demetrus Liggins told reporters this week the district should have handled its announcement of a proposed tax increase differently, after Kentucky’s attorney general found the process unlawful.

The school district and school board received heavy criticism from residents and public officials for not announcing a proposal to raise the city’s occupational license tax until Memorial Day weekend, just days before a school board vote.

School officials initially defended the process when Attorney General Russell Coleman deemed it unlawful, but in an interview this week with TV station Fox56, Liggins vowed to “do better.”

And in an email to the Herald-Leader Wednesday night, he reiterated that promise.

“My commitment is to do better, to get better, and with that, sometimes that means saying we got that one wrong,” Liggins said in the interview with Fox56. “Now that we have more information, I’m certainly going in the direction to try to rebuild that trust and let our community know that we really do want to hear from you.”

The district, with a $848 million tentative budget, sought the tax increase to help fill a $16 million shortfall.

But after Coleman said the district did not notify residents of the proposal with enough time before the scheduled vote, the district temporarily scrapped the plan.

Kentucky Auditor Allison Ball also said her office would conduct a special examination of the district.

During the interview with Fox56, reporter Tyler Melito told Liggins that “some would argue the district was trying to pull a fast one.”

“We certainly weren’t trying to pull a fast one,” Liggins responded.

“We always post our agendas on the Friday before the Monday’s board meeting,” Liggins continued. “In hindsight, I mean, you know better, you do better. I wish that had been handled differently. We were given timelines that we found out later could have been adjusted.

“I’m glad that the board decided to stop, reevaluate, allow more time, more public input. I’ll fall on the sword for that one. I will tell you, it’s something I really want to ensure that we improve upon. I don’t ever want our community to feel like we were trying to pull a fast one.”

Liggins also said he welcomed Ball’s examination of the district.

“Are there things that are going to be found? I can’t tell you that,” said Liggins. “But what I certainly can tell you is that every single thing that we do is for the benefit of kids, so, I welcome a fair assessment of how we’re conducting business.”

Here are Liggins’ responses Wednesday to questions from the Herald-Leader, which covered some of the same ground as the Fox56 interview:

Herald-Leader: Did the district, or you, get the announcement of the proposed tax increase wrong? Do you wish it had been handled differently?

Demetrus Liggins: The district maintains that it complied with all legal requirements for announcing the proposed occupational license tax adjustment, and that the information was made publicly available in accordance with state law.

That said, we understand that legal compliance alone does not always meet the public’s expectations for communication and engagement.

In hindsight, I do wish we had taken additional steps to communicate earlier and more directly, not only about the proposed change itself, but also about the rationale behind it and how it connects to sustaining positive outcomes for students.

H-L: What do you think is the cause of the $16 million shortfall?

DL: To be clear, there is no need to guess or speculate about the cause of the projected $16 million shortfall; it is well-documented and based on financial analysis and predictive factors.

First, this is a projection for the Fiscal Year 2026 budget, not the current year. The FY2025 budget is balanced, and we remain in strong financial standing today.

However, looking ahead, we face increased costs driven by inflation, ongoing investments in competitive teacher and staff salaries, and the expiration of federal pandemic relief funds.

These pressures are not unique to Fayette County; school districts across the country are grappling with the same realities. This is a structural challenge, not a result of financial mismanagement, and we are addressing it with thoughtful planning and community engagement.

H-L: In regard to Auditor Ball’s examination, you said, “I welcome a fair assessment of how we’re conducting business.”

DL: That remains true. We have nothing to hide, and we welcome any fair, objective examination of our operations. We are proud of the progress we’ve made, including academic gains, financial audits with clean opinions, and major initiatives that have positively impacted students.

If any area can be improved through constructive feedback, we’re open to that. We are an organization committed to continuous improvement, and ultimately, our goal is to ensure that every decision made, financial or otherwise, is in the best interest of students and aligned with our community’s values

Q: Do you think you or the district needs to rebuild trust with the community?

DL: Trust is built and rebuilt over time through consistent transparency, responsiveness, and results. While many members of our community continue to express confidence in our work, we know that moments like these require us to double down on earning trust. So yes, I am committed to reinforcing and, where necessary, rebuilding trust by being more intentional in how we engage our stakeholders.

We are committed to improving trust through meaningful actions, including:

• Creating more two-way opportunities for public input, such as community work groups and public forums.
• Communicating clearly and frequently about budget decisions, district priorities, and student outcomes.
• Sharing how investments are directly linked to results, like rising graduation rates, improved academic performance, and expanded opportunities for students.
• Ensuring broader stakeholder involvement in financial planning and decision-making processes.
• The Board has agreed to improve its work as a governing body by participating with the superintendent in “Team of Six” training. This nationally recognized practice is designed to strengthen internal governance by aligning roles, clarifying expectations, and reinforcing collaborative practices that keep the focus on improving student outcomes.

FCPS names budget work group

Also on Wednesday night, district officials announced who would be on a budget work group formed in the aftermath of criticism over the handling of the proposed tax increase.

The group is tasked with exploring potential strategies to address the district’s long-term financial challenges.

The group includes community members, parents, teachers, college employees, business representatives, faith leaders, and students.

“This is an important opportunity to further engage our community in a meaningful dialogue about the fiscal realities we face as we seek to examine finances, identify efficiencies, and ensure long-term investments in the success of all students,” Liggins said in a news release. “The individuals selected represent a wide cross-section of Fayette County and will help us examine potential solutions through multiple lenses.”

The 31 members of the Budget Solutions Work Group are:

• Stephen Behnke, Commerce Lexington
• Lisa Bell, Bluegrass Community and Technical College
• Jessica Berry, YMCA
• Jay Blanton, University of Kentucky
• Neha Cheriya, Amari Coleman; Kelsey Cross, Ella Dulaney, FCPS students
• Ron Edmonson, Immanuel Baptist Church
• Heather Hardesty, represents citizens in Lafayette High School district
• Bailey Hauswald, student
• Roman Henderson, represents citizens in Frederick Douglas High School district
• Jenna Jennings, 16th District PTA
• Laura Jones, represents citizens in Tates Creek High School district
• Bryan Kennedy, secondary principal
• Nicole Kiser, Fayette County Support Professional Education Association
• Christina Lancaster, student
• Mark Little, represents citizens in Bryan Station High School district
• George McCormick, represents citizens in Henry Clay High School district
• Eric Monday, University of Kentucky
• Abdul Muhammad, Fayette Education Foundation
• Carrie Paul, elementary principal
• Chad Peavler, KY 120 AFT
• Erika Pennington, Fayette County Education Association
• Sharon Price, Community Action Council
• Rob Shear, Commerce Lexington
• Alan Stein, Fayette Education Foundation
• Barbara Sterrett, retired citizen
• Hunter Stout, Commerce Lexington
• David Wirtschafter, Temple Adath Israel
• Stacey Zamora, represents citizens in Paul Laurence Dunbar High School district

The district received more than 240 applications from people interested in serving on the work group. Some members were nominated or selected by community organizations or peer groups to ensure a broad mix of voices and expertise.

At Wednesday’s meeting, work group members asked questions about changes in revenue, the district contingency fund, future budget forecasts, grants, food service costs, federal funding, district office reductions, and school budgets. They also asked about the possibility of generating revenue through a virtual academy, school consolidation, or liquidating assets.

The larger committee broke into small groups. Each group then shared their ideas for what the group might want to look into, including the impact of building new schools while other schools are not full, the district policy requiring a 6% contingency fund, the cost of food service, potential revenue opportunities, employee benefits, substitute teachers, and living within the district’s budget.

The work group will meet throughout the summer and fall to identify potential budget solutions that align with the district’s commitment to student success and long-term sustainability, officials said.

All meetings are open to the public, and people can submit online questions and comments that will be shared with the work group members.

Meeting summaries will be shared following each meeting, which will begin at 5:30 p.m. on Tuesday, July 15, and Tuesday, July 29, at The Hub for Innovative Learning & Leadership, 100 Midland Avenue.

All meetings will be recorded and posted to the district YouTube channel (@FCPSKY) no later than the close of business the next day.

Applicants who were not selected for the work group will be invited to an open conversation with Liggins in the coming weeks, district officials said.

This story was originally published June 26, 2025 at 12:26 PM.