Fayette County Public Schools reports nearly $5.4 million fund deficit as its audit deadline approaches

LEXINGTON, Ky. (LEX NEWS) — Fayette County Public Schools received an updated deficit number Monday night, with the district's unaudited report showing more than $700 million moving through its general fund.

At a school board meeting, one central question kept coming up: does it affect the budget?

Acting Finance Director Amy Smith said the district's unreserved fund balance stood at a deficit as of Sept. 21.

"As of September the 21st, when this particular report was due, our unreserved fund balance was 5.3, almost $5.4 million. It is a deficit for unreserved," Amy Smith said.

That figure has not changed in two weeks, and Smith expects it to stay close to the final number. FCPS received an extension to complete its audit by Dec. 15.

"We wanted to be very thorough in the reconciliation of historic discrepancies that have been identified during recent audits," Smith said.

Some community members say they still want more financial accountability from the district.

"The financial crisis that's facing FCPS did not randomly happen," Larry Moore said.

Another question is where FCPS can cut. The district's leadership plan calls for reviewing school staffing, which, with benefits, makes up 85% of the budget. But some community members say that should not be the solution.

"We have sat here for years, and that is not where the $10 million needs to come from," Amanda Preston said.

Community members worry more staffing changes could put added pressure on schools. They want the district to look for savings elsewhere.

"I guess I'm just confused as to why there isn't a bullet on there about staffing and expenditures at the central office level," Pansy Coats said.

The FCPS Board Finance and Accountability Committee plans to meet Wednesday to go over ways to make up the deficit.

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