The budget is worth around $880 million, around $16 million less than last year. That includes a $711 million general fund. It also includes a contingency fund of 2% of the total budget — enough to meet the state’s legally required minimum.
Last month, officials said they had found financial misreporting dating back nearly two decades. The district is also the subject of multiple audits after a $16 million shortfall was discovered last year.
They also approved taking out a $95 million dollar loan to meet payroll, down from the district’s initial proposal of $110 million. The district will invest the money it doesn’t use into the contingency fund.
“This is not a situation that we can draw down as we need it,” said Interim Chief Financial Officer Kyna Koch. “We investigated going that route, and it actually would have cost us more in the long run. So, on the advice of the financial advisor, we are taking all the money at one time.”
To balance the budget, the district is cutting 120 district positions and reducing work days for some staff members. Board member Monica Mundy said she wants more transparency on how those decisions were made moving forward.
“I, as a board member, should be able to tell them why I have to make the decisions that I'm making tonight, and I have to vote the way that I'm voting tonight, when they've lost their job, when they've lost part of their income, and that income is really important for a lot of people,” she said.
The crisis has caused widespread outcry among district parents and staff. Many called for the resignation of Superintendent Demetrus Liggins during a lengthy public comment period. FCPS parent Matthew Vied has been speaking at board meetings for months.
“This district cannot move forward with Dr. Liggins,” Vied said. “It is impossible to do that. The task ahead of us is twofold, that the task ahead of us is fixing the finances and restoring public trust.”
Liggins responded to those calls during a media briefing Thursday, saying he was “not interested in politics.”
“As a superintendent, I am the face of the district, and that does come with accountability, but my focus, certainly right now, again, is to remain focused on getting our financial house in order and ensuring that we have as minimal impact on students as possible,” he said.
Others in attendance were concerned those cuts are negatively impacting students.
“I am concerned about the state of special education in this district, especially in regards to our African American young men,” said FCPS parent Davita Gatewood. “How many more times does this district have to make the news for this administration to realize we need more resources in our classrooms and less suits in these offices?”
In response, Lexington is organizing a job fair for affected FCPS staff next month. District officials have said they’re working to make sure the services those staff members provided will remain intact.
The final budget must be submitted to the Kentucky Board of Education in September.
