‘Historic failure.’ Kentucky lawmakers criticize FCPS leaders amid crisis

Two Kentucky lawmakers — a Democrat and a Republican — spoke out Thursday about Fayette County Public Schools’ troubled financial situation, which includes 115 position cuts, a $110 million loan request, and a fund balance so low that it may be in violation of state law.

Rep. Matt Lockett, R-Nicholasville, called for the resignation of Fayette Superintendent Demetrus Liggins and Fayette County Board of Education Chair Tyler Murphy. He said the district is experiencing “a historic failure.”

Rep. Anne Gay Donworth, D-Lexington, who is running against Jamie Palumbo in the May 19 Democratic primary for the 76th Kentucky House District, also criticized district leadership.

“Our community deserves an apology and better leadership,” Donworth said.

“While I appreciate FCPS hiring Kyna Koch to get to the bottom of this, I can’t help but think of the 115+ people who have lost their jobs because District officials didn’t act sooner,” Donworth told the Herald-Leader in a statement.

Koch is the interim chief financial officer for FCPS, who recommended the district take a $110 million short-term loan to pay expenses due to the pressing financial issues.

Koch, who has said she was asked to work on FCPS finances in a less in-depth way in the past, formerly oversaw finance, data, facilities, transportation and school food service as associate commissioner of district support services for the Kentucky Department of Education. She also was finance commissioner for the Lexington-Fayette Urban County Government.

Donworth said “legitimate concerns” from concerned residents were not taken seriously by district leadership.

“I have personally been asking questions since May 2025, and other passionate supporters of public education have been asking those same questions for years,” Donworth said.

“The Budget Solutions Work Group convened last summer reported frustration that they were not provided enough information to make informed decisions. They, too, asked for more,” she said.

‘Historic failure of leadership’

Lockett said in a Facebook post that he issued a statement Thursday after seeing the district’s request to borrow $110 million to cover expenses.

“The news that Fayette County Public Schools is seeking to take on more than $110 million in debt and interest should concern every parent, taxpayer, and educator in the community,” Lockett said.

“This moment represents not just another setback, but a historic failure of leadership and financial stewardship,” he said..

Lockett said the underlying issues are not minor or technical. They point to systemic dysfunction, including failures in internal controls, procurement and contracting, receivables and payables, record keeping, missed deadlines, and miscoded allocations, he said.

The breakdowns have had real consequences, including the loss of significant federal reimbursements due to missed deadlines, the shifting of funds between accounts to cover shortfalls, and at least one contract reportedly executed without proper authorization, Lockett said.

Taxpayers deserve transparency, accountability, and a credible, detailed plan to restore fiscal stability, he said.

“I once again call on the Superintendent and Chairman of the Board to resign immediately. Their willful disregard for the good of this school district remains a blatant breach of the public trust and a disservice to this community.” Lockett said.

Murphy did not immediately respond Thursday.

Later Thursday, several Democratic state representatives signed onto a statement went further to criticize FCPS for its need to take on a $110 million loan.

“This is the result of repeated failures in leadership and financial oversight that have shaken public confidence in one of the most important institutions in Lexington,” said the statement, which was signed by Reps. Lindsey Burke, Adrielle Camuel, Donworth, Chad Aull and Adam Moore.

FCPS responds

District spokesperson Miranda Scully did comment, saying, “we want to make sure everyone is aware that the short-term loan being referred to is not new information. This was announced to the community during the press conference (media briefing) in April as well as during the board meeting.“

FCPS voluntarily disclosed its most recent financial issues in a news conference last month, and Koch told media that FCPS would seek the loan.

“We respect the voices and concerns of our community, and we share the same goal: ensuring Fayette County Public Schools emerges stronger, more accountable and fully focused on student success,“ Scully said.

“These decisions have not been easy, and we understand the concerns and emotions surrounding the district’s financial challenges and impact on our school community. We have been very straightforward that our commitment has been to make decisions that preserve the classroom and the day-to-day operations our students rely on,” she said.

The district’s next opportunity to provide an update on finances, including a proposed tentative budget for fiscal year 2026-27, will be at the school board’s planning meeting on Monday, May 11, at 5:30 pm.

This story was originally published May 7, 2026 at 2:58 PM.