Fayette County Public Schools face a more than $17 million budget deficit going into the 2026-27 school year, and officials have not said how they will balance it.
Members of the Fayette County Board Education reviewed and approved the budget report, along with new contract terms for Acting Superintendent Bill Bradford, Monday evening at the John D. Price Administration Building in Lexington.
The latest financial news comes after a budget shortfall was discovered in 2024-25 school year, kicking off numerous audits and investigations, as well as leading to layoffs. At least one investigation found Superintendent Demetrus Liggins violated board policy and did not properly oversee financial management.
Liggins has since tried to negotiate a separation with the district and was placed on paid administrative leave. Bradford was appointed in June as interim.
At Monday’s meeting, the board unanimously approved a contract addendum with Bradford to bring his current pay — just over $200,000 — to the base salary of Liggins’ contract, $275,000. Bradford’s bump accrues on a per diem basis, a value of $312.49 daily.
The board also voted to suspend the ongoing annual evaluation of Liggins as he is on leave.
Amy Smith, interim executive director of financial accounting and benefits, and Kyna Koch, interim chief financial officer, presented the June budget report, complete with the $17.6 million deficit. The shortfall is due to debts carrying over from previous years and district revenues coming in under budget, they said.
“I want to emphasize that technically we were deficit in FY 25, if you didn't catch that point,” Koch said. “That just means moving into our 27 budget, that that's that much more money that we need to find in the current budget to make it balance.”
Board chair Tyler Murphy described the situation as a “scaffolding effect.”
Because not all of the expenditures and income have been reported for 2025-26, Smith said she expects the deficit for the coming year to fall.
“We expect this deficit to shrink, based on looking at history and our outstanding purchase orders and some other data,” Smith said. “We do expect that this will shrink. At this point in time, we are expecting, hopeful that our deficit will be between $5 and $10 million.”
