Superintendent, board members warn House Bill 5438 could reduce county school funding

The superintendent told the Fayette County Schools board that House Bill 5438 and subsequent State Department actions are likely to reduce the county’s Step 7B and 7D funding, potentially harming staffing and technology services.

“We will lose some money from our step seven B funding which could break smaller districts,” the superintendent said, urging greater transparency and participation by local systems. He said quadrant superintendents prepared a letter to the State Department asking three questions: what the department can cut at its level to help counties, how much will be taken in future years after an initial estimate of “5 million,” and what formula the department used to determine the amounts for Step 7B funding.

Paula, invited to comment, said the State’s reallocation appears tied to a large request for proposals to replace the statewide accounting system (the Lucas system). “One of the things that they’re trying to do…they put out a huge RFP to replace the Lucas system for accounting and finance,” she said, describing the State’s plan to fund an all‑inclusive accounting solution in part by reallocating county funding.

The superintendent framed the issue as a matter of priorities: the Legislature increased funding for the HOPE scholarship while, he said, counties received cuts. He warned that Step 7B supports roles such as technology specialists, student learning devices and safety systems, and that losing those funds would put local programming and staffing at risk.

Board members expressed frustration that the measure moved quickly through the Legislature without local input. The superintendent said the quadrant sought to ensure county voices were at the table and planned to share the letter with board members.

No formal vote or directive to take legal or further administrative action was recorded during the meeting; the discussion concluded with the board moving on to the 8000 policy series.