Lawmaker’s bill takes aim at FCPS budget issues. There’s more to come.

A Lexington lawmaker has filed a bill in response to Fayette County Schools’ thwarted attempt to raise the occupational license tax in 2025.

Sen. Amanda Mays Bledsoe, R-Lexington told the Herald-Leader Wednesday “there will be several (other) bills rolled out in the next week or so” by other lawmakers in response to the budget challenges that Fayette County Public Schools faced in 2025.

Those problems included an occupational tax increase controversy, a now-resolved projected shortfall and a dwindling rainy day fund in the budget.

“SB 76 removes the option for a new occupational tax in Fayette County and allows time for public trust to be restored,” Bledsoe said. “My proposal offers stability and confidence for employees and employers in the years ahead and gives the school board and administration space to rebuild its relationship with the community.”

Senate Bill 76 would increase the population threshold from 300,000 to 500,000 in order for a community to be able to raise the tax.

The Fayette County school board made an attempt to raise the occupational license tax in 2025 but dropped it after Kentucky Attorney General Russell Coleman found it illegal amidst a public outcry.

The legislative response comes as Superintendent Demetrus Liggins has released a 28-page budget information document that emphasizes FCPS is operating under a balanced working budget for 2025-26. It addresses many points of contention on budget matters.

• The district says there’s no shortfall, no missing money, and there were no tax rate increases.
• $12.1 million was cut from district office. Campuses were unaffected.
• The district maintains a contingency fund of $27 million, which is significantly above the state-mandated requirement.

FCPS will continue to examine district departments, leadership team structures, contract days, staffing formulas, student enrollment patterns and building usage for future fiscal efficiencies, said spokeswoman Miranda Scully.

She said people can explore information firsthand by visiting the Community Transparency & Accountability hub at fcps.net/transparency.

On the occupational license tax increase attempt, the district document said: “In July, Dr. Liggins recommended board members stop pursuing the OLT rate increase and directed staff to balance the budget without additional revenue.”

Bledsoe told the Herald-Leader Wednesday she filed the bill because “having served on Lexington’s City Council and now as vice chair of the Senate’s budget committee, I understand the importance of how we raise local revenue and the need for transparency when doing so.”

Bledsoe said she heard from Fayette County residents who felt “blind-sided and frustrated.

“Their concerns were echoed in reporting from the Herald-Leader, WKYT and others,” Bledsoe said. “They deserved better, and I felt compelled to act.”

Co-sponsors for Senate Bill 76 include Sen. Jared Carpenter, R-Berea and Sen. Donald Douglas, R-Nicholasville. They both represent parts of Fayette County.

In a Monday legislative newsletter, Bledsoe said the challenges facing Fayette County Public Schools have only reinforced the need for greater transparency and fiscal oversight.

“While Fayette County’s superintendent and school board have drawn recent attention, it is not alone,” Bledsoe said. “I expect the legislature will consider broader reforms to ensure school boards have the tools they need to hold superintendents and administrators accountable. No board member should have to file an open records request simply to do their job.”

Fayette school board member Amanda Ferguson has previously said she had to file Open Records Requests to get district documents.

Senate President Robert Stivers, R-Manchester, has also said legislators are likely to file an oversight bill on FCPS finances.

This story was originally published January 14, 2026 at 1:47 PM.