Fayette County school board members were briefed on the tentative budget for the district’s upcoming fiscal year during a planning session Monday night.
The district will have a budget worth around $880 million, around $16 million less than last year. That includes a $711 million general fund, and a contingency fund of around $11 million.
The reduction comes as FCPS is navigating a financial crisis and multiple audits. Last month, district leaders announced they had discovered misreported finances going back to at least 2008. To make up for that, the district plans to take out a loan worth up to $110 million.
“We cannot make payroll, the second payroll in July without this money,” Interim Chief Financial Officer Kyna Koch said.
The loan was characterized by district leaders as a stopgap until they can raise more revenue. Koch said she expects FCPS to take out another loan next year.
The district is also cutting 115 district positions from next year’s budget, which has resulted in outcry from district workers and parents. Workers including librarians, people who work all 12 months of the year, child nutrition specialists and others will also see a reduction in workdays and pay.
Before the meeting, members of union KY 120 United held a small rally outside FCPS headquarters.
“It's very unfortunate that for well over a year, the community has been speaking up about this budget crisis, and they've been just painted as naysayers and problem makers,” said union member Sarah Fightmaster Bayerle.
The group has been pushing for a collective bargaining agreement with the school district, and for teachers to have a say in the financial audit process. Others in attendance also called for the positions of the school district’s sustainability staff, which was included in those cuts, to be restored.
“There will be no one auditing utility bills. There will be no one negotiating utility contracts, no district wide department to work beside our students and teachers every single day to create a culture of energy efficiency in our classrooms and throughout our neighborhoods,” Logan Poteat said during a public comment period.
FCPS is expected to adopt the budget during their May 21 meeting. It has to be approved before May 30, as required by the Kentucky Department of Education.
