State wants additional information from troubled Fayette County Public Schools
The Kentucky Department of Education is asking for more information than ordinary from Fayette County Public Schools given the district’s financial crisis, but wouldn’t say Monday to what extent state officials will intervene.
FCPS announced in recent weeks the district has less money than it thought due to faulty accounting practices going back to 2008. The issues are causing layoffs and cuts to employees’ hours, officials have confirmed. The number of layoffs is unclear. It’s common for KDE to request financial information from school districts, but the state is asking for more information than usual from FCPS.
“KDE is in communication with leadership in Fayette County Public Schools to request and review information beyond that routinely submitted by school districts,” district spokesperson Jennifer Ginn said Monday.
The cuts to staff come as the district is grappling with financial uncertainty after various audits and examinations found the financial information the district has relied on is not accurate. The district’s financial position is much more precarious than previously thought.
FCPS Interim Chief Financial Officer Kyna Koch said last week it is possible the district’s contingency fund balance, how much it has at the end of the fiscal year, will dip below 2% of the district’s total budget, which could trigger Kentucky Department of Education intervention. KDE officials and FCPS officials met last week.
KDE officials on Monday would not comment on the extent of their possible intervention.
In addition to job cuts, FCPS plans to take a short term loan to cover expenses, Koch said.
Kentucky Auditor Allison Ball is conducting a special examination of FCPS’ finances as well, the auditor’s office has confirmed. Additionally, a Texas firm hired by the district is conducting an audit.
The former budget director, Ann Sampson Grimes, alleges she was retaliated against as a whistleblower who tried to call attention to financial issues. She has filed a lawsuit against the district.
A separate agency, the legislature’s Kentucky Office of Education Accountability, which investigates allegations of wrongdoing in school districts, is not currently investigating the broader financial problems in the district, a spokesperson said Monday.
“Given the ongoing litigation and audit at FCPS, any investigations by the OEA would be duplicative at this point,” Kentucky Office of Education Accountability spokesperson Mike Wynn said.