LEXINGTON, Ky. (LEX NEWS) — Fayette County Public Schools is facing a $5.5 million deficit for fiscal year 2026, down from earlier projections of $10 million to $16 million.
"It is a whole lot better than what we were expecting at one time," Chief Financial Officer Kyna Koch said.
On Wednesday, Koch presented the district's 2026-27 working general fund to the board for review. The budget totals more than $751 million, but part of that balance relies on one-time money.
"The budget is also balanced on projected proceeds from the sale of property," Koch said.
The district expects about $8 million from those property sales. Another $5 million in capital-fund flexibility won't be available by 2028. Combined with the current deficit, the district is about $18.5 million from breaking even — before inflation. Personnel makes up about 85% of the budget.
"Half the budget is Personnel, it seems to me, unfortunately, that that is where things have to start," Gina Greathouse, executive vice president of Economic Development said.
The committee also discussed potential savings from central office, transportation, and programs beyond state requirements.
"There is no flexibility in this budget," Koch said.
Board member Tyler Murphy said future budget decisions, including those for 2028, need to center on what impacts students the least.
"To not just notice the voices that we hear most often, but ask ourselves, what voices are we not hearing?" Murphy said.
Others said exploring potential new revenue streams could help the district reach a zero balance.
"I would love to see us in 28 be able to have that zero balance and it actually be 0," board member Monica Mundy said.
Koch said the state is giving the district time to address its financial challenges, but that patience has limits.
"They will not be patient for 28," Koch said.
