KY auditor not speeding up FCPS special examination in light of budget problems

Kentucky Auditor Allison Ball is not speeding up the special examination of Fayette County Public Schools in light of the latest revelations about the district’s budget problems.

In July, officials in Ball’s office said a special examination of Fayette County Public Schools was expected to be completed at the end of 2026.

This week, a statement from Ball’s office said, “Our office is still committed to an end of 2026 timeline, which will allow our auditors’ scope to incorporate the most up-to-date financial information.

“Our office is deep in the preliminary assessment phase, which is part of our audit process. We plan to send Fayette County Public Schools an engagement letter and set an entrance conference date once the preliminary assessment is complete.”

The special examination of Fayette County Schools is being conducted after concerns were raised over the district’s $16 million budget shortfall and the recent move to increase local taxes, the auditor’s office previously said.

A traditional financial audit focuses on verifying the accuracy of an organization’s financial statements and ensuring compliance with accounting standards.

But the “special examination” that’s planned for FCPS will go much deeper: It will assess FCPS’ operations, performance and compliance with requirements, Joy Markland, spokesperson for Ball, said earlier this year.

In late May, district leaders sought to increase the occupational license tax rate in Fayette County in a move the Kentucky attorney general described in June as unlawful.

The Budget Solutions Work Group of community members recommended this summer the district use its budget contingency fund, which had been described as $42 million, to bridge a $16 million budget gap.

That sparked Superintendent Demetrus Liggins’ surprised announcement last week the district’s contingency fund in its $848 million budget was significantly smaller than originally expected -- maybe as low as $15 million to $22 million.

A California technology solutions company filed a lawsuit against the district saying FCPS won’t pay them $500,000. Community members at a Monday meeting directed anger toward Liggins, his staff and some board members.

Allison’s office has completed a special examination of the Kentucky Department of Education and is currently conducting an examination of Jefferson County Public Schools in Louisville.

The examination of the state’s education department was required under House Bill 825, passed by the 2024 General Assembly. The last budget bill, House Bill 6 in 2024, provided an appropriation to complete the Jefferson County audit.

Auditor officials said they are currently conducting the JCPS audit, which will conclude in summer 2026.

This story was originally published August 19, 2025 at 2:19 PM.