More cuts are expected in Fayette County Schools’ 2027 budget

Further cuts are expected next year at Fayette County Public Schools, officials said Monday night at a school board meeting.

The cuts are among considerations for the district’s general fund budget for the 2027 fiscal year, which begins July 1, 2026. Monday’s meeting was just an initial conversation about the district’s draft budget, so specific cuts were not yet discussed.

The working budget won’t be voted on until September of this year.

The expected cuts come after the district faced significant budget issues this year, including a since-resolved budget shortfall and a dwindling contingency, or rainy day, fund. After several cuts, the district eventually approved an $827.2 million budget in September.

The district’s general fund draft budget for next year is $697.4 million, up from $690.6 million in the current fiscal year.

District spokesperson Miranda Scully noted that the draft was just a starting point for discussion, and it’s subject to change as revenues and expenditures are refined.

The general fund is the district’s primary operating fund.

The beginning balance of the general fund is tentatively estimated at $27 million, said Rodney Jackson, director of financial accounting in the district. That’s up about $700,000 from the current budget. District officials have said the beginning balance is the true contingency, or rainy day, fund.

Other things that could alter the general fund total include:

• The per-student amount funded by the state through Support Education Excellence in Kentucky, or SEEK, funding will be set by the state legislature. This year’s amount was $4,586 per student.
• Total SEEK funding for next fiscal year is projected between $100 million and $103 million for Fayette County. The estimate will be refined once the legislative session concludes, and the new per-pupil base amount is set.
• A 4% increase in assessments was estimated, resulting in projected revenue growth of about $8 million to $10 million, which would make about a 3.5% increase from this fiscal year.
• The employer contribution rate for retired teachers has not yet been set for fiscal year 2027. The current rate is 18.6%.
• The district’s contingency fund will be set in accordance with guidance issued by the Kentucky Department of Education.
• Uncertainty continues about federal grant funding.

Southside technical center will be sold

Also on Monday, the Fayette County School Board voted to contract with a commercial real estate agent to help sell the Southside Technical School building on Harrodsburg Road, valued at $8.9 million.

The school has been closed and merged into the district’s new career and technical center on Midland Avenue called The Hill.

School board members on Monday contracted with Schrader Commercial Properties and Tranzon Asset Advisors to help sell the property, which was declared surplus in November.