A big loan, a new budget, challengers in school board race: Catch up on FCPS budget news

Fayette County Public Schools is grappling with financial woes that require a $110 million loan just to make payroll in July. The crisis has drawn state scrutiny, prompted staff cuts and reshaped an upcoming school board election.

Catch up on our latest reporting here:

• The district unveiled its tentative general fund budget for fiscal year 2027 on Monday, and it’s $711.3 million, down from $728 million last year. Interim CFO Kyna Koch warned the district cannot make the second July payroll without a $110 million loan in anticipation of fall tax revenues.
• More than 115 district support positions have been terminated between the 2025-26 and 2026-27 school years, and the proposed tentative budget is structurally balanced only with an anticipated $3 million in revenue from the sale of surplus property, including the former central office on Main Street and two school campuses.
• Superintendent Demetrus Liggins, Koch and Board Chair Tyler Murphy proactively requested a call with Gov. Andy Beshear and pledged to be transparent as the district navigates finances that have been misstated since at least 2008.
• The Kentucky Department of Education is following a management improvement program regulation as it evaluates FCPS’ troubles, which could lead to a management audit and potentially a state-assisted or state-managed designation, though KDE spokesperson Jennifer Ginn said the agency is not discussing a takeover of the district at this point.
• Kathy Schiflett, a retired Kentucky Administrative Office of the Courts employee, filed Monday to challenge Murphy for the District 2 seat, joining swim coach R.J. Hijalda in the race, while a new state law passed April 14 makes Murphy ineligible to hold school board office because he teaches in Boyle County — though the county clerk cannot remove him from the ballot without a lawsuit, the office says.

Find more coverage of FCPS at kentucky.com.

The summary points above are based on the reporting of Herald-Leader journalists. The roundup was produced with the assistance of AI. Herald-Leader reporters and an editor reviewed this story for accuracy. You can read more about our AI policy here.