What could the state do about FCPS finance problems? Here’s the process
In addressing Fayette County Public Schools’ financial problems, the Kentucky Department of Education is following steps in a management improvement program regulation, KDE district spokesperson Jennifer Ginn said.
“KDE is following steps provided in the management improvement program regulation: 703 KAR 3:205.,” Ginn told the Herald-Leader Thursday.
The regulation says management improvement services are used for “school districts which demonstrate such a critical lack of efficiency or effectiveness in governance or administration that state mandated corrective action or state control of the district is required.“
On Friday, after saying the state was following that process, Ginn clarified to the Herald-Leader that KDE is not talking about a takeover of Fayette County Public Schools at this point.
“KDE is not discussing taking over any part of the district functions at this point. Staff at KDE are working with the district to find the best way forward to ensure students keep receiving the education and supports they need, while helping the district find more stable financial footing,” Ginn said.
KDE is evaluating FCPS after it was revealed the district has major financial problems. School leaders announced last month that the district has misstated its finances since 2008, leaving FCPS with significantly less money than it thought it had. The district’s troubled financial situation has caused leaders to cut 115 positions, make a $110 million loan request, and left a fund balance so low that it may be in violation of state law.
The state administrative regulation that KDE is following outlines the procedures for the management improvement program.
KDE evaluates data from school districts — if that review indicates significant deficiencies, KDE staff will do an on-site review of the problems. The on-site review includes examination of local school records and interviews with school district officials, staff, and community leaders.
If the data review and school district investigation reveal significant deficiencies, the state’s commissioner of education must determine whether the significant deficiencies are due to ineffective or inefficient management.
If it does, the commissioner must order a management audit.
That audit would include an investigation of the district’s compliance with state and federal laws, as well as administrative regulations and local board policies. The audit features an on-site review, investigation and analysis of governance and administration in the district.
If the commissioner determines there’s a pattern of significant ineffectiveness and inefficiency, and if the commissioner decides state assistance or state management is needed to fix the problems, he can make a recommendation to the Kentucky Board of Education.
The district could then be declared a state-assissted or state-managed district, which would force them to develop and implement an improvement plan.
The district would remain state-assisted or state-managed until the education commissioner recommends to the board of education that progress has been made. The board would need to determine that enough progress has been made on the improvement plan.
Any local school district declared state-assisted or state-managed must provide to the commissioner monthly reports indicating the status of improvement activities in the district.