FCPS Budget Solutions Work Groups began looking at the FY26 District Budget
Last Wednesday, Fayette County Public Schools’ (FCPS) Budget Solutions Work Group held the first of its three summer meetings.
The Work Group was created to review the FY26 FCPS Budget, recommend strategies to close a projected $16 million deficit, and offer ideas for ensuring the district’s long-term financial health.
This first meeting served mostly as an introduction, allowing members to get to know one another and learn the basics of the FCPS budgeting process. Deputy Superintendent Houston Barber gave a presentation covering the timeline for budget development, sources of district revenue, and some of the district’s financial pressures. You can view his presentation slides here.
A few of the financial challenges highlighted include:
Rising personnel costs. In recent years, FCPS has implemented staff raises and hired more experienced teachers. These educators tend to earn higher salaries, increasing overall personnel costs compared to pre-COVID years.
Increased food service costs. The Board has chosen not to raise meal prices for students, contributing to a projected $1 million deficit in the food services budget.
Contingency fund requirements. District policy mandates that 6% of the General Fund be set aside for contingency, which can only be used for one-time emergency expenses. For FY26, this would equal about $42 million.
Work Group members raised questions and surfaced a few early ideas for addressing the deficit, including:
Adjusting the contingency fund policy. Kentucky law only requires a 2% contingency reserve. The group could explore recommending a temporary reduction in the FCPS policy to help close the FY26 gap.
Redistricting and school consolidation. As enrollment is expected to plateau, redrawing school district boundaries to consolidate schools could help reduce costs.
Revisiting the Occupational License Tax increase.
At its next meeting, the Work Group will dig deeper into the numbers. FCPS will provide:
A more detailed draft of the FY26 Budget
Historical comparisons to highlight rising costs
Information on staff benefits and other major expense areas
Want to learn more? Explore these:
The next meeting will be held Tuesday, July 15 at 5:30 PM at The Hill. The meeting is open to the public.
